Shiv Kumar & Anr. v. Union of India & Ors.
ARUN MISHRA, J.
1. The question involved in the matter is whether a purchaser of
the property after issuance of notification under section 4 of the Land
Acquisition Act, 1894 (for short, “the 1894 Act”), can invoke the
provisions contained in section 24 of the Right to Fair Compensat ion
and Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013 (for short, “the Act of 2013”).
2. Notification No.F.10(29)/96/L&B/LA/11394, dated 27.10.1999,
was issued for the acquisition of the land situated in the revenue estate
of Village Pansali, Delhi, for the public purpose of the Rohini Residential
Scheme under planned development of Delhi. It was followed by the
declaration under section 6 issued on 3.4.2000. Possession was take n
on 12.5.2000. Subsequently, the petitioners purchas ed the land on
5.7.2001 by way of Registered Sale Deed executed by one Satya Narain,
the Power of Attorney holder of original owners. The purchasers then
participated in the proceedings for the determination of compe nsation
under sections 9 and 10 of the 1894 Act. The award was passed on
3.4.2002. In the meanwhile, an unauthorized colony came up with the
name of Deep Vihar, Pansali, Pooth Kalan, Delhi. Th e petitioners
claimed that they continued in the actual physical possession of the land
even after passing of the award on 17.09.2008 and the same formed
part of the unauthorized colony. The Government of NCT of De lhi
provisionally regularised the colony. The Act of 2013 came in force from
1.1.2014. The respondents never took the actual physical possess ion
of the land; as such, the acquisition has lapsed. T he purchasers/
petitioners filed a writ petition at the High Court of Delhi . A Division
Bench of the High Court has dismissed the writ application.
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS.
3. Learned counsel appearing on behalf of the purcha sers
submitted that the High Court has erred in rejecting the writ application
on the ground that the purchasers after issuance of notifica tion under
section 4 of the 1894 Act cannot question the land acquisition. The
decision runs contrary to the dictum laid down by t his Court in
Government (NCT of Delhi) v. Manav Dharam Trust & Anr. (2017)
6 SCC 751. Learned counsel further submitted that the High Court has
also erred in dismissing the writ application on the ground that petitioners
have admitted that the property is part of the unauthorized col ony of
Deep Vihar.
4. Shri K.M. Natraj learned Additional Solicitor General has
supported the impugned judgment and order and submitted that the
purchase made after the notification issued under section 4 of the 1894
Act and declaration under section 6 is void. The purchasers had acquired
no right, and they cannot question the land acquisition, nor they c an
invoke the provisions contained in section 24 of the Act of 2013. It was
further submitted that decision in Manav Dharam Trust (supra) is per
incuriam because of a large number of decisions of this Court holding
that sale made after issuance of notification under sectio n 4 is void.
5. It is crystal clear that for seeking the relief under sec tion 24,
the proceedings for taking possession under Act of 1894 have been put
into question as illusory one, and possession continues with appellants.
The decision in Manav Dharam Trust (supra) has been mainly relied
upon by the learned counsel appearing on behalf of the purchas ers/
petitioners in which a Division Bench opined that subsequent purchasers
are affected by the acquisition. Therefore, they are entitled to seek a
declaration of the lapse of acquisition under the Act of 2013. It has
further opined that since declaration is sought, the challenge is not to
the acquisition proceedings. Because of the operation of section 24(2)
of the 2013 Act, the ratio of the various cases decided by this Cou rt
under the Act of 1894, has no application to such situations. It has
observed thus:
“ 21. All the decisions cited by the learned Senior Coun sel
appearing for the appellants, no doubt, have categorically hel d
that the subsequent purchasers do not have locus st andi to
challenge the acquisition proceedings. However, in the present
case, the challenge is not to the acquisition proceedings; it is only
for a declaration that the acquisition proceedings have la psed
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because of the operation of Section 24(2) of the 2013 Act, and
therefore, the ratio in those cases has no application to t hese
cases.
22. It is one thing to say that there is a challenge to the legality
or propriety or validity of the acquisition proceedings and yet
another thing to say that by virtue of the operation of subsequent
legislation, the acquisition proceedings have lapsed.
23. In all the decisions cited by the learned Senior Counsel for
the appellants, which we have referred to above, this Court has
protected the rights of the subsequent purchaser to claim
compensation, being a person interested in the compensation,
despite holding that they have no locus standi to challenge the
acquisition proceedings.
28. Thus, the subsequent purchaser, the assignee, the successor
in interest, the power-of-attorney holder, etc., are all persons who
are interested in compensation/landowners/affected persons in
terms of the 2013 Act and such persons are entitled to file a case
for a declaration that the land acquisition proceedings have lapsed
by virtue of operation of Section 24(2) of the 2013 Act. It is a
declaration qua the land wherein indisputably they have an
interest, and they are affected by such acquisition. For such a
declaration, it cannot be said that the respondent-writ petitioners
do not have any locus standi.”
6. First, we advert to the legal position concerning the purchases
made on 5.7.2001, made after notification under Section 4 had been
issued under the Act of 1894. Law is well settled in this reg ard by a
catena of decisions of this Court that an incumbent, who has purchased
the land after section 4 notification, has no right to question the
acquisition.
6 (a). In U.P. Jal Nigam, Lucknow through its Chairman &
Anr. v. Kalra Properties (P) Ltd., Lucknow & Ors . (1996) 3 SCC
124 it was observed :
“3. …...That apart, since M/s. Kalra Properties, the respondent
had purchased the land after the notification under Section 4(1)
was published, its sale is void against the State, and it acquired
no right, title, or interest in the land. Consequently, it is set tled
law that it cannot challenge the validity of the notification or the
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS.
[ARUN MISHRA, J.]
regularity in taking possession of the land before the publication
of the declaration under Section 6 was published.”
6(b). In Sneh Prabha (Smt.) & Ors. v. State of U.P. & Anr .
(1996) 7 SCC 426 it has been laid down that subsequent purchaser
cannot take advantage of land policy. It was observed:
“5. Though at first blush, we were inclined to agree with the
appellant but on a deeper probe, we find that the appellant is not
entitled to the benefit of the Land Policy. It is settled law that
any person who purchases land after the publication of the
notification under Section 4(1), does so at his/her peril. The object
of publication of the notification under Section 4(1) is notice to
everyone that the land is needed or is likely to be needed for a
public purpose, and the acquisition proceedings point out an
impediment to anyone to encumber the land acquired thereunder.
It authorizes the designated officer to enter upon the land t o do
preliminaries, etc. Therefore, any alienation of land after the
publication of the notification under Section 4(1) does not bind
the Government or the beneficiary under the acquisition. O n
taking possession of the land, all rights, titles, and interests in land
stand vested in the State, under Section 16 of the Act, free from
all encumbrances, and thereby, absolute title in th e land is
acquired thereunder. If any subsequent purchaser acquires land,
his/her only right would be subject to the provisions of the Ac t
and/ or to receive compensation for the land. In a recent
judgment, this Court in Union of India v. Shri Shivkumar Bhargava
and Ors. [1995] 1 SCR 354 considered the controversy and held
that a person who purchases land subsequent to the notificat ion
is not entitled to an alternative site. It is seen that the Land Policy
expressly conferred that right only on that person whose land
was acquired. In other words, the person must be the owner of
the land on the date on which notification under Section 4(1) was
published. By necessary implication, the subsequent purchaser
was elbowed out from the policy and became disentitled to t he
benefit of the Land Policy.”
6(c). In Meera Sahni v. Lieutenant Governor of Delhi & Ors.
(2008) 9 SCC 177, the Court had relied upon the decision describ ed
above and observed thus:
705
“21. In view of the aforesaid decisions, it is by now well-settled
law that under the Land Acquisition Act, the subsequent purchaser
cannot challenge the acquisition proceedings and that he would
be only entitled to get the compensation.”
6(d). In V. Chandrasekaran & Anr. v. Administrative Officer
& Ors. (2012) 12 SCC 133, the Court has considered various decisions
and opined that the purchaser after Section 4 notification could not
challenge land acquisition on any ground whatsoever . The Court
observed:
“15. The issue of maintainability of the writ petitions by the person
who purchases the land subsequent to a notification being issued
under Section 4 of the Act has been considered by this Court
time and again. In Leela Ram v. Union of India AIR 1975 SC
2112, this Court held that anyone who deals with th e land
subsequent to a Section 4 notification being issued, does so, a t
his own peril. In Sneh Prabha v. State of Uttar Prad esh AIR
1996 SC 540, this Court held that a Section 4 notification give s
a notice to the public at large that the land in respect to which it
has been issued, is needed for a public purpose, and it further
points out that there will be “an impediment to any one to
encumber the land acquired thereunder.” The alienation after that
does not bind the State or the beneficiary under the acquisitio n.
The purchaser is entitled only to receive compensation. Whi le
deciding the said case, reliance was placed on an earlier judgment
of this Court in Union of India v. Shiv Kumar Bhargava and Ors.
(1995) 2 SCC 427.
18. In view of the above, the law on the issue can be summarized
to the effect that a person who purchases land subsequent to
the issuance of a Section 4 notification with respect to it, i s not
competent to challenge the validity of the acquisition proceedings
on any ground whatsoever, for the reason that the sal e deed
executed in his favour does not confer upon him, any title and at
the most he can claim compensation on the basis of his vendor’s
title .”
(emphasis supplied)
6(e). In Rajasthan State Industrial Development and
Investment Corpn. v. Subhash Sindhi Cooperative Housing Society,
Jaipur & Ors. (2013) 5 SCC 427, it is laid down:
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS.
[ARUN MISHRA, J.]
“13. There can be no quarrel with respect to the settled lega l
proposition that a purchaser, subsequent to the issuanc e of a
Section 4 Notification in respect of the land, cannot challenge
the acquisition proceedings, and can only claim compensation as
the sale transaction in such a situation is Void qu a the
Government . Any such encumbrance created by the owner, or
any transfer of the land in question that is made after the issuance
of such a notification would be deemed to be void and would
not be binding on the Government. (Vide: Gian Chand v. Gopala
and Ors. (1995) 2 SCC 528; Yadu Nandan Garg v. State of
Rajasthan and Ors. AIR 1996 SC 520; Jaipur Developm ent
Authority v. Mahavir Housing Coop. Society, Jaipur, and Ors.
(1996) 11 SCC 229; Secretary, Jaipur Development Authority,
Jaipur v. Daulat Mal Jain and Ors. (1997) 1 SCC 35; Meer a
Sahni v. Lieutenant Governor of Delhi and Ors. (2008) 9 SCC
177; Har Narain (Dead) by L.Rs. v. Mam Chand (Dead) by
L.Rs. and Ors. (2010) 13 SCC 128; and V. Chandrasekaran and
Anr. v. The Administrative Officer and Ors. JT 2012 ( 9) SC
260).”
(emphasis supplied)
6(f). A Three-Judge Bench in Rajasthan Housing Board v. New
Pink City Nirman Sahkari Samiti Ltd. & Anr ., (2015) 7 SCC 601, in
the context of section 4 as well as section 42 of the Rajasthan Tenancy
Act which also prohibited the transactions from being entered into with
SC/ST persons, has observed:
“33. The other decision relied upon by the Society is V.
Chandrasekaran and Anr. v. Administrative Officer an d Ors.
2012 (12) SCC 133] wherein this Court laid down thus:
17. In Ajay Kishan Singhal v. Union of India: AIR 1996 SC 2677;
Mahavir and Anr. v. Rural Institute, Amravati and Anr. (1995) 5
SCC 335; Gian Chand v. Gopala and Ors. (1995) 2 SCC 528;
and Meera Sahni v. Lieutenant Governor of Delhi and Ors. (2008)
9 SCC 177, this Court categorically held that a person who
purchases land after the publication of a Section 4 notific ation
with respect to it, is not entitled to challenge the proceedings for
the reason, that his title is void and he can at be st claim
compensation on the basis of vendor’s title. In view of this, t he
sale of land after issuance of a Section 4 notification is void, and
707
the purchaser cannot challenge the acquisition proceedings. (See
also: Tika Ram v. the State of U.P. (2009) 10 SCC 689).
18. In view of the above, the law on the issue can be summarized
to the effect that a person who purchases land subsequent to
the issuance of a Section 4 notification with respect to it, i s not
competent to challenge the validity of the acquisition proceedings
on any ground whatsoever, for the reason that the sal e deed
executed in his favour does not confer upon him, any title and at
the most he can claim compensation on the basis of his vendor’s
title.
34. Reliance has been placed on Dossibai Nanabhoy Jeejeebhoy
v. P.M. Bharucha 1958 (60) Bom.LR 1208] so as to contend that
the ‘person interested’ in the land under Section 9 of the Land
Acquisition Act would include a person who claims interest in
compensation to be paid on account of acquisition of land ad the
interest contemplated Under Section 9 is not restricted to legal
or proprietary estate or interest in the land but such interest as
will sustain a claim to apportionment, is the owner of the land.
In our opinion, the decision is of no avail. The instant transaction
being void as per Section 42 of the Rajasthan Tenancy Act, and
the property was inalienable to non-SC. Obviously, the l ogical
corollary has to be taken that no right in apportio nment to
compensation can be claimed by the Society.”
6(g). In M. Venkatesh & Ors. v. Commissioner, Bangalore
Development Authority, etc . (2015) 17 SCC 1, a three-Judge Bench
has opined:
“16. That brings us to the question of whether Prabhaudas Patel
and other respondents in SLP (C) No. 12016 of 2013 were
entitled to any relief from the Court. These respondents cla im
to have purchased the suit property in terms of a sale deed dated
22-8-1990, i.e., long after the issuance of the pre liminary
Notification published in July 1984. The legal position about the
validity of any such sale, post-issuance of preliminary notification,
is fairly well settled by a long line of the decisions of this Court.
The sale in such cases is void and non-est in the eye of the law
giving to the vendee the limited right to claim compensation and
no more. Reference may in this regard be made to the decision
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS.
[ARUN MISHRA, J.]
of this Court in U.P. Jal Nigam v. Kalra Properties (P) Ltd ,
wherein this Court said: (SCC pp. 126-27, para 3)
“ 3 . … It is settled law that after the notification under Sec tion
4(1) is published in the gazette, any encumbrance created by the
owner does not bind the Government, and the purchaser does
not acquire any title to the property. In this case, Not ification
under Section 4(1) was published on 24-3-1973; possession of
the land admittedly was taken on 5-7-1973, and the pumping
station house was constructed. No doubt, declaratio n under
Section 6 was published later on 8-7-1973. Admittedly power
under Section 17(4) was exercised dispensing with the inquiry
under Section 5-A and on service of the notice under Section 9
possession was taken, since urgency was acute viz. pumping
station house was to be constructed to drain out fl oodwater.
Consequently, the land stood vested in the State under Secti on
17(2) free from all encumbrances. It is further settled law th at
once possession is taken, by operation of Section 17(2), the land
vests in the State free from all encumbrances unless a notification
under Section 48(1) is published in the gazette withdrawing from
the acquisition. Section 11-A, as amended by Act 68 of 1984,
therefore, does not apply, and the acquisition does not lapse. The
notification under Section 4(1) and the declaration under Section
6, therefore, remain valid. There is no other provision under the
Act to have the acquired land divested, unless, as stated e arlier,
notification under Section 48(1) was published, and the possession
is surrendered pursuant thereto. That apart, since M/s Kalra
Properties, the respondent had purchased the land a fter the
notification under Section 4(1) was published, its sale is void
against the State, and it acquired no right, title, or interest in the
land. Consequently, it is settled law that it cannot challenge t he
validity of the notification or the regularity in taking possession
of the land before the publication of the declaration under Section
6 was published.
(emphasis supplied)”
7. It has been laid down that the purchasers on any g round
whatsoever cannot question proceedings for taking po ssession. A
purchaser after Section 4 notification does not acquire any right in the
land as the sale is ab initio void and has no right to claim land under
the Policy.
709
8. When we ponder as to beneficial provisions of the Act of 2013,
they also intend to benefit landowners mentioned in the notification under
Section 4, not for the benefit of such purchasers who purchase the land
after it has been vested in the State.
9. Sub-section 4 of Section 11 of the Act of 2013, which is akin
to section 4 of the Act of 1894, contains a prohibition that no person
shall make any transaction or cause any transaction of land or cr eate
any encumbrance on land from the date of publicatio n of such
notification. Section 11(4) is extracted hereunder:
“ 11. Publication of preliminary notification and power of
officers thereupon.–
x x x x x
(4) No person shall make any transaction or cause any transaction
of land specified in the preliminary notification or create any
encumbrances on such land from the date of publication of such
notification till such time as the proceedings under this Chapter
are completed:
Provided that the Collector may, on the application made by the
owner of the land so notified, exempt in special circumstances
to be recorded in writing, such owner from the operation of this
subsection:
Provided further that any loss or injury suffered by any pers on
due to his wilful violation of this provision shall not be made up
by the Collector.”
Without seeking exemption from the Collector, there is a tota l
prohibition on any transaction of land. Whereas the legal position under
the Act of 1894 was that a transaction effected aft er section 4
notification was illegal and void.
10. When we consider other provisions, the ‘affected family’ has
been defined under section 3(c) of the 2013 Act. The definition reads
as under:
“3. Definitions.– In this Act, unless the context otherwise
requires,—
(c) “affected family” includes—
(i) a family whose land or other immovable property has been
acquired;
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS.
[ARUN MISHRA, J.]
(ii) a family which does not own any land but a member or
members of such family may be agricultural labourers,
tenants including any form of tenancy or holding of usufruct
right, share-croppers or artisans or who may be working in
the affected area for three years prior to the acquisition of
the land, whose primary source of livelihood stand affected
by the acquisition of land;
(iii) the Scheduled Tribes and other traditional forest dweller s
who have lost any of their forest rights recognized under
the Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006 (2 of 2007) due
to acquisition of land;
(iv) family whose primary source of livelihood for three years
prior to the acquisition of the land is dependent on forests
or water bodies and includes gatherers of forest produce,
hunters, fisherfolk and boatmen, and such livelihood is
affected due to acquisition of land;
(v) a member of the family who has been assigned land by the
State Government or the Central Government under any of
its schemes and such land is under acquisition;
(vi) a family residing on any land in the urban area s for
preceding three years or more prior to the acquisition of the
land or whose primary source of livelihood for three years
prior to the acquisition of the land is affected by the
acquisition of such land;”
The affected family includes landowners for whose benefit land
is held before the acquisition. A person acquiring interest after section
11 notification cannot be said to be included in the “affected family” at
all.
11. Definition of ‘family’ is in section 3(m), it i s extracted
hereunder:
“3. Definition.–In this Act, unless the context oth erwise
requires,—
…..
(m) “family” includes a person, his or her spouse, minor children,
minor brothers and minor sisters dependent on him: Provided that
711
widows, divorcees, and women deserted by families shall be
considered separate families;
Explanation.—An adult of either gender with or without spouse
or children or dependents shall be considered as a separate family
for the purposes of this Act.”
12. The definition of ‘landowner’ is in section 3(r), the sam e is
extracted hereunder:
“3. Definition.–In this Act, unless the context oth erwise
requires,—
…..
(r) “landowner” includes any person,— (i) whose nam e is
recorded as the owner of the land or building or part thereof, in
the records of the authority concerned; or
(ii) any person who is granted forest rights under the Scheduled
Tribes and Other Traditional Forest Dwellers (Recognition of
Forest Rights) Act, 2006 (2 of 2007) or under any other law fo r
the time being in force; or
(iii) who is entitled to be granted Patta rights on the land under
any law of the State including assigned lands; or (iv) any person
who has been declared as such by an order of the cou rt or
Authority;”
Landowner is a person who is recoded as the owner of land or
building. The record of date of issuance of preliminary notification under
section 11 is relevant. A purchaser after section 11 cannot be said to
be a landowner within the purview of section 3(r).
13. Person interested is defined in section 3(x) thus :
“ 3. Definition.– In this Act, unless the context otherwise
requires,—
(x) “person interested” means—
(i) all persons claiming an interest in compensation to be
made on account of the acquisition of land under this
Act;
(ii) the Scheduled Tribes and other traditional forest dwellers,
who have lost any forest rights recognized under the
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS.
[ARUN MISHRA, J.]
Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006 (2 of 2007);
(iii) a person interested in an easement affecting the land;
(iv) persons having tenancy rights under the relevant State laws
including share-croppers by whatever name they may be
called; and
(v) any person whose primary source of livelihood is likely to
be adversely affected;”
14. A rehabilitation and resettlement scheme has to be prepared
under Section 16. Section 17 deals with the review of such a sche me.
An approved scheme to be made public under Section 18. Section 19
deals with the publication of declaration and summary of rehabilitation
and resettlement scheme. After inquiry, Award is passed by the Collector
under Section 23. The Collector is required to consider, among other
things, the interest of the person claiming the com pensation,
rehabilitation, and resettlement while making an award.
15. Section 24 of the Act of 2013, which deals with land
acquisition made under the Act of 1894, is also relevant. The same is
extracted hereunder:
“ 24. Land acquisition process under Act No. 1 of 189 4
shall be deemed to have lapsed in certain cases – (1)
Notwithstanding anything contained in this Act, in any case of
land acquisition proceedings initiated under the Land Acquisition
Act, 1894,—
(a) where no award under section 11 of the said Land
Acquisition Act has been made, then, all provisions of this
Act relating to the determination of compensation sh all
apply; or
(b) where an award under said section 11 has been made, then
such proceedings shall continue under the provisions of the
said Land Acquisition Act, as if the said Act has not bee n
repealed.
(2) Notwithstanding anything contained in sub-section (1), in case
of land acquisition proceedings initiated under the Land
Acquisition Act, 1894 (1 of 1894), where an award under the
713
said section 11 has been made five years or more prior to the
commencement of this Act but the physical possession of the
land has not been taken, or the compensation has not been paid
the said proceedings shall be deemed to have lapsed and the
appropriate Government, if it so chooses, shall ini tiate the
proceedings of such land acquisition afresh in accordance with
the provisions of this Act:
Provided that where an award has been made, and compensation
in respect of a majority of land holdings has not been deposite d
in the account of the beneficiaries, then, all beneficiaries specified
in the notification for acquisition under section 4 of the said Land
Acquisition Act, shall be entitled to compensation in accordance
with the provisions of this Act.”
(emphasis supplied)
16. Section 24 (2) provides that in case the award ha s been
passed five years or more prior to the commencement of t he Act, but
the physical possession of the land has not been ta ken, or the
compensation has not been paid, the said proceedings shall be deemed
to have lapsed. It is not the case set up that compensation had not been
paid to purchasers/owners. The only case set up is that physical
possession has not been taken and proceedings of taking over possession
have been questioned to take advantage of provisions under Secti on
24(2) of the Act of 2013. Whereas, averment in the writ petit ion itself
indicates that possession had been taken over in the year 2000 and that
unauthorized colonies have come up in the area. Thus, it is c lear that
possession, if any, is illegal, and in fact, the actual physical possession
had been taken, and re-entering in possession in an unauthorized manner
can confer no right. There is nothing to doubt that actual physic al
possession had been taken in 2000. Thus, Section 24(2) is not attracted
in the case.
17. Even otherwise, proviso to Section 24(2) does not recognize
a purchaser after Section 4 notification inasmuch as it provides that
where an award has been made, and the compensation in respect of a
majority of land holdings has not been deposited in the account of the
beneficiaries, then, all beneficiaries specified in the no tification for
acquisition issued under the Act of 1894, shall be entitled to
compensation under the provisions of the Act of 2013. The proviso
makes it clear that in case of compensation concerning the majority of
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS.
[ARUN MISHRA, J.]
landholding has not been deposited, then recorded owner(s) at the time
of issuance of notification under section 4 of the Act of 1894 shall have
the right to receive the compensation. Purchasers a fter section 4
notification have not been given the right to recei ve the higher
compensation under the provisions contained in the act of 2013
18. The Act of 2013 presupposes that a person is required to be
rehabilitated and resettled. Such a person who has pu rchased after
section 4 notification as sale deed is void under the Act of 1894, cannot
claim rehabilitation and resettlement as per policy envisaged under the
Act of 2013, as his land has not been acquired, but he has purchas ed
a property which has already been acquired by the State Governm ent,
he cannot claim even higher compensation, as per proviso to section
24(2) under the Act of 2013. An original landowner cannot be deprived
of higher value under the Act of 2013, which higher compensation was
not so contemplated when the void transaction of sale had been entered,
and right is conferred under proviso to Section 24(2) on recorded owners
under Act of 1894. We have come across instances in which after
notifications under section 4 were issued and, the property was
purchased at throwaway prices by the builders and u nscrupulous
persons, such purchases are void and confer no right even to claim
higher compensation under Section 24(2) of the Act of 2013 as it is to
be given to the owner as mentioned in the notification.
19. Given that, the transaction of sale, effected after sect ion 4
notification, is void, is ineffective to transfer the land, such incumbents
cannot invoke the provisions of section 24. As the sale transaction did
not clothe them with the title when the purchase was made; they cannot
claim ‘possession’ and challenge the acquisition as having lapsed under
section 24 by questioning the legality or regularity of proceedin gs of
taking over of possession under the Act of 1894. It would be unfair
and profoundly unjust and against the policy of the law to permit such
a person to claim resettlement or claim the land back as envisaged under
the Act of 2013. When he has not been deprived of his livelihood but
is a purchaser under a void transaction, the outcome of exploitative
tactics played upon poor farmers who were unable to defend
themselves.
20. Thus, under the provisions of Section 24 of the Act of 2013,
challenge to acquisition proceeding of the taking over of pos session
under the Act of 1894 cannot be made, based on a void transaction
nor declaration can be sought under section 24(2) by such incumbents
715
to obtain the land. The declaration that acquisition has lapsed under the
Act of 2013 is to get the property back whereas, the trans action once
void, is always a void transaction, as no title can be a acq uired in the
land as such no such declaration can be sought. It would not be legal,
just and equitable to give the land back to purchaser as land was not
capable of being sold which was in process of acquisition under the
Act of 1894. The Act of 2013 does not confer any right on purchaser
whose sale is ab initio void. Such void transactions are not validated
under the Act of 2013. No rights are conferred by th e provisions
contained in the 2013 Act on such a purchaser as against the Sta te.
21. ‘Void is, ab initio ,’ a nullity, is inoperative, and a person cannot
claim the land or declaration once no title has been conferred upon him
to claim that the land should be given back to him. A person cann ot
enforce and ripe fruits based on a void transaction to start claiming title
and possession of the land by seeking a declaration under S ection 24
of the Act of 2013; it will amount to conferment of benefit never
contemplated by the law. The question is, who can claim declara tion/
rights under section 24(2) for the restoration of l and or lapse of
acquisition. It cannot be by a person with no title in the land. The
provision of the Act of 2013 cannot be said to be enabling or authorizing
a purchaser after Section 4 to question proceeding taken under the Act
of 1894 of taking possession as held in U.P. Jal Nigam (supra) which
is followed in M. Venkatesh (supra) and other decisions and
consequently claim declaration under Section 24 of the Act of 2013.
What cannot be done directly cannot be permitted in an indirect method.
22. The provisions of the Act of 2013 aimed at the acquisition
of land with least disturbance to the landowners and other affec ted
families and to provide just and fair compensation to affected families
whose land has been acquired or proposed to be acquired or are affected
and to make adequate provisions for such affected persons for their
rehabilitation and resettlement. The provisions of Act of 2013 aim at
ousting all inter-meddlers from the fray by ensuring payment in the bank
account of landholders under section 77 of the Act.
23. The intendment of Act of 2013 is to benefit farmers etc.
Subsequent purchasers cannot be said to be landowners entitled to
restoration of land and cannot be termed to be affected persons with in
the provisions of Act of 2013. It is not open to them to claim t hat the
proceedings have lapsed under Section 24(2).
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS.
[ARUN MISHRA, J.]
24. Apart from that the claims have been made on transactions
based on the power of attorneys, agreements, etc.; as such al so they
are not entitled to any indulgence and cannot invoke provisions of section
24(2) of the 2013 Act. The Court has considered the question of the
validity of transactions in the form of power of attorney in Suraj Lamp
and Industries Pvt. Ltd. through Director v. State of Haryana &
Anr. (2012) 1 SCC 656, and has held that no rights could be accrued
on such transactions as this is not a legal mode of transfer. This Court
has observed :
“20. A power of attorney is not an instrument of trans fer in
regard to any right, title, or interest in an immovable prop erty.
The Power of Attorney is a creation of an agency whereby the
grantor authorizes the grantee to do the acts specified therein,
on behalf of the grantor, which when executed will be binding
on the grantor as if done by him (see Section 1A and Section 2
of the Powers of Attorney Act, 1882). It is revocab le or
terminable at any time unless it is made irrevocable in a manner
known to law. Even an irrevocable attorney does not have the
effect of transferring title to the grantee.
21. In -State of Rajasthan v. Basant Nehata 2005 (12) SCC 77
this Court held:
“13. A grant of power of attorney is essentially governed by
Chapter X of the Contract Act. By reason of a deed of power
of attorney, an agent is formally appointed to act for the principal
in one transaction or a series of transactions or to manage t he
affairs of the principal generally conferring necessary a uthority
upon another person. A deed of power of attorney is executed
by the principal in favor of the agent. The agent derives a r ight
to use his name and all acts, deeds, and things are done by him
and subject to the limitations contained in the said deed, the same
shall be read as if done by the donor. A power of attorney is, a s
is well known, a document of convenience.
Execution of a power of attorney in terms of the provisions of
the Contract Act as also the Powers-of-Attorney Act is val id. A
power of attorney, we have noticed hereinbefore, is executed by
the donor so as to enable the done to act on his behalf. Except
in cases where power of attorney is coupled with an inter est, it
is revocable. The done in exercise of his power und er such
717
power of attorney only acts in place of the donor subject, of
course, to the powers granted to him by reason there of. He
cannot use the power of attorney for his own benefit. He acts
in a fiduciary capacity. Any act of infidelity or breach of trust is
a matter between the donor and the done.
An attorney holder may, however, execute a deed of conveyance
in the exercise of the power granted under a power of attorney
and convey title on behalf of the grantor.
Scope of Will
14. A will is the testament of the testator. It is a pos thumous
disposition of the estate of the testator directing the distribution
of his estate upon his death. It is not a transfer inte r vivo. The
two essential characteristics of a will are that it is intended to
come into effect only after the death of the testat or and is
revocable at any time during the lifetime of the testator. It is said
that so long as the testator is alive, a will is not be worth the
paper on which it is written, as the testator can a t any time
revoke it. If the testator, who is not married, marries after making
the will, by operation of law, the will stands revok ed. (see
Sections 69 and 70 of the Indian Succession Act, 19 25).
Registration of a will does not make it any more effective.
Conclusion
15. Therefore, a SA/GPA/WILL transaction does not convey any
title nor create any interest in an immovable prope rty. The
observations by the Delhi High Court, in Asha M. Jain v. Canara
Bank 94 (2001) DLT 841 that the “concept of power of attorney
sales have been recognized as a mode of transaction” when
dealing with transactions by way of SA/GPA/WILL are
unwarranted and not justified, unintended misleading the general
public into thinking that SA/GPA/WILL transactions are some
kind of a recognized or accepted mode of transfer and that it
can be a valid substitute for a sale deed. Such decisions to the
extent they recognize or accept SA/GPA/WILL transactions as
concluded transfers, as contrasted from an agreement to transfer,
are not good law.
16. We, therefore, reiterate that immovable property can be legally
and lawfully transferred/ conveyed only by a registered deed of
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS.
[ARUN MISHRA, J.]
conveyance. Transactions of the nature of ‘GPA sales’ or ‘SA /
GPA/WILL transfers’ do not convey title and do not amount to
transfer, nor can they be recognized or valid mode of transfe r
of immovable property. The courts will not treat such transactions
as completed or concluded transfers or as conveyances as they
neither convey title nor create any interest in an imm ovable
property. They cannot be recognized as deeds of title, except to
the limited extent of Section 53A of the Transfer of Property Act.
Such transactions cannot be relied upon or made the basis for
mutations in Municipal or Revenue Records. What is s tated
above will apply not only to deeds of conveyance in regard to
freehold property but also to transfer of leasehold property. A
lease can be validly transferred only under a regis tered
Assignment of Lease. It is time that an end is put to the pernicious
practice of SA/GPA/WILL transactions known as GPA sale s.
17. It has been submitted that making declaration that GPA sales
and SA/GPA/WILL transfers are not legally valid mod es of
transfer is likely to create hardship to a large number of persons
who have entered into such transactions, and they should be given
sufficient time to regularize the transactions by obtaining dee ds
of conveyance. It is also submitted that this decision sho uld be
made applicable prospectively to avoid hardship.”
No right can be claimed based on a transfer made by way of
execution of Power of Attorney, Will, etc., as it does not create any
interest in immovable property.
25. In Manav Dharam Trust (supra), even the provisions of the
Act of 2013 have not been taken into consideration, which prohib its
such transactions in particular provisions of section 11, including the
proviso to section 24(2). Apart from that, it was not legally permissible
to a Division Bench to ignore the decisions of the larger Bench
comprising of three Judges and of Co-ordinate Bench. They were not
per incuriam and were relevant for deciding the issue of taking
possession under Act of 1894, at the instance of purchaser. In ca se it
wanted to depart from the view taken earlier, it ought to have referred
the matter to a larger bench. It has been ignored that when a purchase
is void, then no declaration can be sought on the ground that the land
acquisition under the Act of 2013 has lapsed due to illegality/irregularity
of proceedings of taking possession under the Act o f 1894. No
719
declaration can be sought by a purchaser under Sect ion 24 that
acquisition has lapsed, effect of which would be to get back the land.
They cannot seek declaration that acquisition made under the Act of
1894 has lapsed by the challenge to the proceedings of taking possession
under the Act of 1894. Such right was not available after the purchase
in 2000 and no such right has been provided to the purchasers under
the Act of 2013 also. Granting a right to question acquisition would be
against the public policy and the law which prohibits such transactions;
it cannot be given effect to under the guise of subsequent legislation
containing similar provisions. Subsequent legislation does not confer any
new right to a person based on such void transaction; instead, it includes
a provision prohibiting such transactions without permissi on of the
Collector as provided in Section 11(4).
26. Thus, we have to follow the decisions including that of larger
Bench mentioned above, laying down the law on the subject, which still
holds the field and were wrongly distinguished. The binding value of
the decision of larger and coordinate Benches have been ignored while
deciding the Manav Dharam Trust case (supra), it was not open to it
to take a different view. The decision in Manav Dharam Trust (supra)
is per incuriam in light of this decision of this Court in Mamleshwar
Prasad v. Kanahaiya Lal , (1975) 2 SCC 232, A.R. Anutulay v. R.S.
Nayak , (1988) 2 SCC 602, State of Uttar Pradesh v. Synthetics and
Chemicals Ltd ., (1991) 4 SCC 139, State of B. Shama Rao v. Union
Territory of Pondicherry, AIR 1967 SC 1480, Municipal
Corporation of Delhi v. Gurnam Kaur , (1989) 1 SCC 101, Narmada
Bachao Andolan (III) v. State of Madhya Pradesh , AIR 2011 SC
1989, Hyder Consulting (UK) Ltd. v. State of Odisha , (2015) 2 SCC
189 and Sant Lal Gupta v. Modern Coop. Societies Ltd . 2010 13
SCC 336.
27. We hold that Division Bench in Manav Dharam Trust (supra)
does not lay down the law correctly. Given the seve ral binding
precedents which are available and the provisions of the Act of 2013,
we cannot follow the decision in Manav Dharam Trust (supra) and
overrule it. Shri S.N. Bhatt, learned counsel submitted that in case this
Court does not agree with the Manav Dharam Trust (supra), the case
may be referred to Hon’ble the Chief Justice of Ind ia under the
provisions of Order VI Rule 2 of the Supreme Court Rules, 2013. H e
has relied upon the decision of this court in Vineeta Sharma v. Rakesh
Sharma (2019) 6 SCC 162 in which, in view of the conflict of opinion
SHIV KUMAR & ANR. v. UNION OF INDIA & ORS.
[ARUN MISHRA, J.]
of two Division Bench judgments of this Court as to the interpretation
of section 6 of the Hindu Succession Act, 1956 the matter was referred
to the Hon’ble the Chief Justice of India, for constituting an appropriate
Bench. However, in the instant case, the issue is different, whether we
have to follow the decision in Manav Dharam Trust (supra) or the
earlier decisions of this Court mentioned above. It is apparent that the
decisions of the Three Judges Bench are binding on us, and in view of
other consistent decisions of this Court, we have to follow them. It is
not appropriate to refer the case to larger Bench under Order VI Rule
2 of Supreme Court Rules. We find no fault in the Judgments lay ing
down the law that the purchase after section 4 is void as aga inst the
State. We are not impressed with the submission raise d on behalf of
the purchasers to refer the matter for the constitution of a Larger Bench
to the Hon’ble Chief Justice. When decisions of Larger Benc h and
other Division Bench are available, the case cannot be refer red to a
Larger Bench.
28. Concerning the illegal colony, averments have been made that
the colony is an unauthorized and provisional order w as passed to
regularise it. The plea taken is contradictory and shows the fa lsity of
the claim raised by the purchasers. That, apart pred ecessors of the
purchaser obtained the land-based on Power of Attorney, Agreeme nt
to Sell, and Will on 9.12.1982. As per averments made in the writ
application, Bijender Singh, who was owning ½ share, sold the share
to Satya Narain by the documents like Agreement to Sell, P ower of
Attorney, or Will. It has also been averred that Om Prak ash sold the
remaining ½ share to Satya Narain on 11.3.1984 by way of Agreement
to Sale, Power of Attorney, or Will. The purchase m ade through
Agreement to Sale, Power of Attorney, or Will by Satya Narain did
not confer a title upon him to transfer it to the purchasers a part from
the fact that it was void in view of purchase after Secti on 4. Based on
purchase made from such owners whose title was not perfect,
purchasers had no derivative title in the eye of law. There was no legally
recognized title deed in favor of Satya Narain.
29. Resultantly, we hold that no interference is called for in the
judgment and order passed by the High Court. Accordingly, the appeal
is dismissed.
Devika Gujral Appeal dismissed.