LI Network
Published on: 13 August 2023 at 17:09 IST
A recent decision by a Division Bench of the Supreme Court, presided over by Justices Surya Kant and Dipankar Datta, has examined the core objective of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) while allowing an appeal.
The Court, in its ruling, emphasized that to achieve fair compensation under the aforementioned act, it’s crucial to provide the affected parties with a proper opportunity for a hearing.
The Court held that “a fair opportunity of hearing is given to the persons whose rights are affected. This requires that the interested person is given an effective opportunity to put forth his or her claim. Any deviation from the prescribed procedure, especially when it has seemingly affected the interested person, would be contrary to the very purpose of the legislative mandate.”
Background
The appellant owns a land parcel measuring 4970 sq. meters in Village Amli, Silvassa, Union Territory of Dadra & Nagar Haveli.
The acquisition of this land was carried out under the RFCTLARR Act by the respondent authorities.
Subsequently, the Collector-Dadra and Nagar Haveli issued a notice on March 4, 2020, under Section 21 of the RFCTLARR Act, asking the appellant to present their objections related to the compensation amount determination.
However, due to the COVID-19 pandemic and the lockdown in Mumbai, the appellant requested an extension for submitting objections as they were unable to contact their lawyer.
Despite this request, the Collector issued the compensation award on May 4, 2020.
The appellant challenged this award in a writ petition before the High Court, which dismissed the petition, suggesting the appellant should seek enhancement of the award. This led to the current appeal.
Court’s Analysis
The Court delved into various aspects of the RFCTLARR Act. It noted that the primary purpose of issuing a notice under Section 21 of the act is to provide interested parties with a fair and reasonable opportunity to present their claims regarding compensation for the acquired land.
This compensation is determined based on several relevant factors concerning the acquisition.
Under Section 23 of the RFCTLARR Act, the Collector is mandated to hold an inquiry into pertinent aspects, including objections raised by the concerned parties, and subsequently issue an award addressing the exact area of the acquired land, the compensation determined under Section 27, and the distribution of this compensation among all individuals known or assumed to be interested in the land.
In light of these observations, the Court concluded:
“In the present case, the appellant was not granted a hearing under Section 21 of the RFCTLARR Act. Consequently, in the absence of objections—unfiled due to reasons beyond the appellant’s control—no inquiry under Section 23 of the Act could be conducted.”
Considering the appellant’s right to seek fair market value and the necessity of providing them with an opportunity to submit objections, the Court issued the following directive:
“The Collector, respondent no.3, is instructed to issue a fresh notice to the appellant under Section 21 of the RFCTLARR Act within two weeks from the receipt of this order. The appellant shall then present any objections within the stipulated timeframe.
Following this, the Collector is to hear the appellant’s representative and subsequently issue a new award after conducting an inquiry in line with the provisions of the 2013 Act.”