Mahanadi Coal Fields Ltd. & Anr. v. Mathias Oram & Ors.
S. RAVINDRA BHAT, J.
1. The oft repeated aphorism, “ Justice delayed is justice denied ”
cannot apply with more force than in these proceedings. The applicant
writ petitioners (hereinafter, “landowners / displaced per sons”) have
waited for roughly half the number of years that this republic has existed.
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS.
They predominantly belong to tribal communities, and their lands were
first notified and acquired in 1988 for the purposes of coal mining. Yet,
they have not been paid compensation. The tangled and torturous journey
of their tribulations has been elaborately documented i n a previous
judgment of this court.1
A. Background
2. Mahanadi Coalfields Ltd. (hereinafter, “MCL”) is a subsidiary
of Coal India Ltd. (hereinafter, “CIL”) the biggest coal producer in the
country. MCL was aggrieved by an order 2 of the Orissa High Court,
wherein the High Court directed the Central Government and MCL to
immediately proceed under provisions of the Coal Bea ring Areas
(Acquisition and Development) Act, 1957 (hereinafter, “CBA Act”) to
determine and disburse compensation payable to land owners as
expeditiously as possible, preferably within six months.
3. The Central Government issued the preliminary notification
under Section 4(1) of the CBA Act on 11.02.1987, conveying its intention
to prospect for coal in village Gopalpur and others, district Sundergarh,
Orissa. This was followed by another notification under Section 7(1) of
the CBA Act on 27.07.1987 for acquisition of the notified lands. Finally,
by notification dated 10.07.1989, the declaration of acquisition of t he
land under Section 9 of the CBA Act was made, which led to the lands
being vested absolutely in the Central Government. On 20.03.1993, the
Central Government issued notification under Section 11 of t he CBA
Act, vesting the acquired land and all rights therein in MCL, retrospectively
with effect from 17.11.1991. The writ petitioners before the High Court
were landowners who were not paid any compensation for their lands.
After unavailingly seeking the same, the landowners approached the
High Court seeking direction for compensation. Before the High Court,
the landowners’ claims were mired in a dispute between Coal India Ltd.
(hereinafter, “CIL”) and the Central Government. CIL urged that it no
longer required the lands, whereas the Central Government rejected
CIL’s proposal for denotification by order dated 12.09.2006. The High
Court held that a land oustee under Section 9 of the CBA Act was to be
paid compensation after taking into consideration the factors enumerated
under Section 13(5) of the CBA Act. MCL preferred a special leave
petition before this court. The court sought the assistance of the then
1 Mahanadi Coal Fields Ltd. & Anr v. Mathias Oram & O rs ., (2010) 11 SCC 269.
2 W.P. (Civil) No.11463/2003 (Orissa High Court), dated 13.11.2006.
1145
Solicitor General for India, Mr Gopal Subramanium, who pro posed a
scheme which was accepted by this court, in its judgment r eported as
Mahanadi Coal Fields Ltd. (supra).
4. The relevant extract of the operative portion of the judgment is
reproduced as follows:
“22. The scheme proposed by Mr. Subramanium and agreed
upon by the Central Government and the Coal Company is
as follows:
“1. The land in Village Gopalpur, District Sundergarh, Orissa
stands acquired by the Central Government and owner ship
is vested with MCL which will determine and pay compensation
to the erstwhile landowners.
2. In respect of vast portions of the acquired land (excludi ng
the area where mining activities are being undertaken), act ual
physical possession was never taken. The State of Orissa a nd
its officers are directed to assist MCL in taking actual p hysical
possession of the acquired land.
3. Since the matter pertains to an acquisition of 1 987 i.e.
more than two decades ago, the extent of actual phy sical
possession needs to be reascertained, it is necessary t hat the
genuine landowners, amount of compensation payable, status
of possession, use to which the land has been put in the la st
two decades, is discovered. The entire land needs t o be
surveyed again.
4. In accordance with the advice of the learned Sol icitor
General, a Claims Commission needs to be set up wit h
representatives of the Central Government as well as MCL . It
is submitted that the Claims Commission will consis t of 3
members:
(a) A former Judge of the High Court of Orissa (Chairman);
(b) An officer who has held a post/office equivalent to the
rank of Secretary to the Government of India;
(c) An officer to be nominated by the Chairman, Coal India
Ltd.
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
The Claims Commission will carry out the exercise refer red to
above and submit a report on the compensation payable and
the persons to whom it should be paid, within a peri od six
months.
5. The abovesaid report will be submitted to the Ce ntral
Government, and upon formal approval by the Central
Government, MCL will make payment within a further period
of two months.
6. Some portions of the land have been determined t o be
unsuitable for the petitioner having regard to physical featu res
(mining being impossible, area being heavily populated, etc.).
The Claims Commission will examine whether possessio n of
such portions has been taken over by the petitioner. It would
be open to the Claims Commission to recommend
denotification/release of the said land from acquisiti on.
7. In view of the special facts obtaining above, the Central
Government may be permitted to denotify the said land from
the acquisition as a special case, since the land is not requir ed
and possession also was never taken.
8. Even in the case of the denotified land, suitabl e
compensation, in appropriate cases, may have to be pa id to
the landowners. The Claims Commission may also give a report
on this aspect of the matter.
9. The learned Solicitor General has opined that such matters
of uncertain acquisition or pending compensation claims lead
to unnecessary social tensions and the petitioner must ac t in
a spirit of good governance. Upon examination of al l the
surrounding villages, in the light of the opinion of the l earned
Solicitor General, for the sake of uniformity as well as fairness,
the above exercise would be carried out for the fol lowing
villages as well:
(i) Sardega
(ii) Jhupurunga
(iii) Ratansara
(iv) Tikilipara
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(v) Siarmal
(vi) Tumulia
(vii) Karlikachhar
(viii) Kulda
(ix) Bankibahal
(x) Balinga
(xi) Garjanbahal
(xii) Bangurkela
(xiii) Kiripsira
(xiv) Lalma R.F.
It must be noted that in the case of Sardega and Tiki lipara
Villages, part-payment has already been made. Furth er, in
the case of Bankibahal and Balinga Villages, full p ayment
has already been made but possession has not been f ully
taken.
10. The petitioner and the Central Government shall assist i n
the establishment of the Commission including the pr ovision
of suitable infrastructure. The honorarium payable to the
Commission may be determined by this Hon’ble Court.
11. This order is being passed with the agreement of all parties
and in the peculiar facts and circumstances of this case. The
said order shall not operate as a precedent.”
23. The scheme proposed by Mr Subramanium was shown to
Mr Janaranjan Das, the counsel appearing for the
respondent-writ petitioners and he also gave his ex press
consent to it. We, accordingly, approve the scheme but with
certain clarifications and modifications as stated belo w.
24. We nominate Mr Justice A.K. Parichha, a former Ju dge
of the High Court of Orissa as Chairman of the Commission.
Mr Solicitor General in consultation with the Secre tary,
Ministry of Coal, Government of India, shall nomina te an
officer who has held a post/office equivalent to the rank of
Secretary to the Government of India as one of the members
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
of the Commission within two weeks from today. Similarly, the
Chairman, Coal India Ltd. shall nominate an officer a s the
other member of the Commission. Mr Justice A.K. Parichh a,
shall be paid honorarium equal to the monthly salar y of a
sitting High Court Judge and he shall be entitled to all other
facilities as available to a sitting Judge of the Hig h Court.
The officer nominated by Mr Subramanium/Secretary, Ministry
of Coal, Government of India, shall similarly be ent itled to
honorarium and other facilities available to a serving officer
of his rank. All the expenses of the Commission shall be borne
by Coal India Ltd.
25. The Commission shall prepare its report as envisa ged in
the scheme, first in respect of the lands in Village Go palpur,
District Sundergarh, Orissa, as soon as possible and in any
event not later than four months from today. In cas e the
Commission recommends denotification/release of any portion
of the lands earlier acquired, it would also determine the rate
or the amount of compensation/mesne profit payable t o the
landholder. The Commission shall submit its report not to the
Central Government but to this Court for approval and further
directions. Any denotification/release of the land would be
only subject to further orders passed by this Court in light of
the Commission’s report. The Commission may proceed wi th
the survey in relation to the acquired lands in other village s,
as suggested in Para 9 of the scheme only after submitting i ts
report in respect of Village Gopalpur and subject to further
orders by this Court. The officers of the State Gove rnment
and the Coal Company shall extend full help and cooperation
to the Commission in preparing the report and in the disc harge
of their duties in terms of the scheme.”
5. The Claims Commission appointed by this court proceeded to
issue notices and call for claims to determine all thos e eligible for
compensation and rehabilitation, and its extent. Based on the report in
relation to village Gopalpur, the court passed an order on 19.04.2012,
approving the recommendations contained in it. The relevant extracts of
the court’s order are as follows:
“The Amicus pointed out three broad features of the w ay in
which the Commission has fixed the amounts of compensation
1149
for the lands of the villagers acquired by Mahanadi Coal
Fields Ltd., the petitioner Company.
First, the acquisition notifications were made way back in
the year 1984 but no compensation was paid to the villagers/
landholders for the past 28 years. The Commission, therefore,
took the view that fixing the market value of the l ands with
reference to the date of the acquisition notificati ons would
be wholly unfair, unjust and unreasonable and has taken th e
date of notice of survey given by the Commission in Sept ember,
2010, as being relevant for fixing the market value of the
lands under acquisition. The Amicus supported the view taken
by the Commission and, in the facts of the case, we also fully
endorse the Commission’s decision in regard to the date with
reference to which the market value of the lands un der
acquisition is to be determined.
Secondly, in regard to fixing the rate of compensat ion, the
Amicus submitted that the Commission had followed a very
scientific approach which was fit to be approved by this Court .
We accept the method adopted by the Commission for fi xing
the rate of compensation and the actual mounts of
compensation determined for payment to the individu al
landholders.
Thirdly, in regard to the. rehabilitation policy, the Commission
has applied the rehabilitation policy of the year 2006 as it is
more liberal and beneficial for the landholders in comparison
to the earlier rehabilitation policy of the year 1998. On this
score also, we entirely agree with the view taken b y the
Commission.
In short, we accept the Commission’s report in all res pects
and make, it an order of this Court. At this stage, we wo uld
like to draw the attention of the Commission to some other
aspects of the matter as suggested by the Amicus. The Amicus
rightly submitted that setting up of schools and health centres
in the villages where lands have been acquired in large area s
should also be made an obligation of the petitioner-Company
for whose benefit the acquisitions are made.
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
We are not aware whether in the 2006 rehabilitation policy
there are provisions for setting up schools and health centres
in the villages affected by land acquisition. In ca se, the
rehabilitation policy does not have such provisions , the
Commission may consider directing Mahanadi Coal Fie lds
Ltd. to provide for good, functional schools with s ufficient
number of teachers and well-equipped health centres in all
the villages affected by land acquisition.
We would also like to remind the Commission that the g ood
work done by it so far will only be complete as and when the
individual villagers whose lands are acquired actually receive
the amount of compensation and other benefits under the
compensation and rehabilitation package. We are sure that
the Commission would be conscious of this aspect of the matter.
But, we would still like to tell it that all the good work do ne
by it may be dissipated unless the villagers get th eir lawful
dues in full and no part of compensation amount or any
element of the compensation/rehabilitation package is allow ed
to be wasted or taken away from the concerned landhol der
by deception or fraudulent means. It will be, therefore, open
to the Commission also to frame proper. policies for payment
of the compensation money and to ensure that the
compensation/rehabilitation benefits are actually receive d by
the landholders. In this regard, the Commission may consider
directing staggered payment of the amount of compensat ion
so that the compensation money is not altogether wasted.
Mr. Ashok Panigrahi submitted that some of the landholde rs
whose lands were also taken in acquisition were una ble to
submit their claims before the Commission as they had go ne
to Jharkhand for earning their livelihood. If that be so, it will
be open to them to make their representations befor e the
Commission which shall consider those representatio ns and
pass appropriate and reasonable orders. We deeply appreciate
the painstaking work done by the Commission and request it
to carry on its good work in respect of the rest of the vil lages
where the lands were similarly acquired following the model
framed by it in respect of Gopalpur village.
1151
We repeat our direction that the Governmnent of Ori ssa,
Mahanadi Coal Fields Ltd. and the local administration shall
render full help, -assistance and cooperation in the work of
the Commission and in implementation of the Commission’ s
directions in regard to payment of compensation and the
rehabilitation package admissible to the concerned
landholders.
Let copies of the Part-II Report of the Commission b e given
to the Amicus, Gp. Captain Karan Singh Bhati and Mr. Ashok
Panigrahi, counsel for the parties, and after that it may be
kept in a sealed cover.”
6. Following the Gopalpur model, the Commission submitted
reports for villages Balinga, Bankibahal, Sardega and Tiklipara. By its
order dated 08.08.2012, this court approved those reports and observed
that the Commission may follow (as far as practicable) the same basis
in other villages for which compensation was yet to be fixed. The relevant
part of that order is extracted as follows:
“A further report is received from the Claims Commi ssion,
Bhubaneshwar, under the title Recommended Composite
Compensation Package for Village Balinga, Bankibaha l,
Sardega and Tikilipara. We accept and approve all t he
recommendations made by the Commission and request i t to
proceed further on the basis of its recommendations an d in
light of the previous orders passed by this Court.
We further observe that the Commission may follow as far as
practicable the same basis in other villages for the lands of
which compensation ls yet to be fixed by it. Let th e report
received from the Commission be kept in a sealed cover.
Put up on receipt of further report from the Claims Commission,
Bhubaneshwar.”
7. By its order dated 10.04.2013, this court accepted and approved
the Commission’s reports with respect to villages Kulda and Garjan Bahal.
By another order dated 15.07.2013, this court accepted the Commission’s
report for village Karlikachhar. In that order, the court further observed
that lands in two villages namely Kirpsira and Ratansara were transferred
by the Central Government to some other companies. The court therefore
requested the Commission to proceed in respect of the two villages and
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
directed that at the initial stage, payment of compensation w ould be
MCL’s liability – it could later recover the sums from the successor
companies. By its order dated 25.10.2013, this court obse rved that
infrastructure for resettlement was to be in terms of Odisha Resettlement
and Rehabilitation Policy, 2006 (hereinafter, “R&R Policy 2006”) and
the Third Schedule to the (then) Right to Fair Compe nsation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Bill,
2013.
8. On 10.07.2017, this court disposed of the appeal, with the
following observations and directions:
“In pursuance of the orders of this Court, a report was
submitted by Justice Parichha which was accepted by this
Court but the implementation thereof still remained incomplete.
Learned Amicus has submitted a report dated 4 July 2017 in
respect of outstanding issues and has made recommendations
as follows:-
“(i) As far as any compensation amount which is lying in fi xed
deposits is concerned, the same must be accounted f or at
periodic intervals jointly by the Collector as well as by a senior
officer of MCL. The said amounts must be safeguarde d
suitably by the Commission and the Commission would be at
liberty to seek appropriate direction from this Cour t as and
when its work is completed.
(ii) Issue directions to the Collector, Sundargarh a s well as
the Chairman and Managing Director of MCL to ensure
disbursement of compensation to all the beneficiaries of the
8 villages (namely Balinga, Bankibahal, Garjan Baha l,
Gopalpur, Karlikachar, Kunda, Sardega and Tiklipada ) on
or before 31st July 2017, and to ensure disbursemen t of
compensation to all the beneficiaries of the 2 villages, (namely
Siarmal and Bangurkela) on or before 31st November, 2017.
(iii) The Divisional Commissioner, Sambalpur, to ma ke
adequate efforts to trace the persons who have not turned up
to receive compensation. The Collectors concerned w ill
contact their counterparts in States where awardees are known
to migrate, and adopt suitable methodologies to identi fy the
concerned person.
1153
(iv) Issue directions to the authorities of MCL to f urnish a
list, jointly verified by the Collector and the Assistant Revenue
Officer indicating the names of the all awardees of
compensation, the dates when they were entitled to payment,
the actual dates when payment was made and whether that
payment included interest, to the Claims Commission as w ell
as the Learned Counsel appearing on behalf of the
Respondent parties.
(v) It may be clarified that even with respect two villages
(namely Siarmal and Bangurkela) , when the payment of
compensation is made, interest, as payable, will be deter mined
to be paid in accordance with Orders of the Hon’ble Supre me
Court. Payment of interest in respect of delayed paym ent will
be undertaken if interest was not paid in accordance with the
Orders of the Court.
(vi) where genuine cases of fraud and impersonation are
alleged by MCL, the Claims Commission be empowered to
examine such cases and forward recommendations to t he
Learned Amicus.
(vii) Direct the authorities of MCL to complete the process of
granting employment, payment of monetary compensatio n in
lieu of employment, including annuities on or before 31st Ju ly
201 7 with respect to 8 villages (namely Balinga, Bankibahal,
Garjan Bahal, Gopalpur, Karlikachar, Kunda, Sardega and
Tiklipada) and on or before 31st November, 2017 with respect
to 2 villages (namely Siarmal and Bangurkela) .
(viii) Issue directions to the Chairman and Managing Director
of MCL to immediately stop any illegal mining being
undertaken by MCL on agricultural lands in any of t he
villages.
(ix) Issue directions to MCL authorities to complet e the
development of resettlement colonies in the two sites (namely
Barapalli II and Chatanpalli) on or before 30th Sept ember,
2017.
(x) Once even one of the rehabilitation sites is ready and the
site has been certified as suitable for shifting by t he Claims
Commission, the Hon’ble Claims Commission may pay p ass
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
appropriate orders enabling the shifting of those person s who
are entitled to R&R Benefits in the said site.
In view of the above, it is submitted that the following gene ral
directions are also necessary -
(xi) That the Managing Director of MCL either himself or by
a designated officer will be personally responsible for the
implementation of the directions of the Supreme Cou rt and
the orders by the Commission.
(xii) Suitable steps will be taken by the MCL to complete the
process of disbursement of compensation.
(xiii) Compensation will be disbursed to the satisfact ion of
the Commission.
(xiv) Employment must be offered to all those left out
(Categories I & II in any employment must be offere d and
completed to the satisfaction of the Commission.
(xv) Rehabilitation steps must be completed within a period
of nine months from today.
(xvi) Only upon the rehabilitation being certified by the
Commission and experts that a notice can be issued by the
Commission asking the oustees to shift to alternate sites .
(xvii) Fresh notices be issued by the Commission in respect of
awardees who have not received monies
(xviii) In respect of awardees who have not been paid money
in time, interest is payable and such interest be awarded at a
rate not exceeding 15% by the Commission calculatin g the
same with reference to the orders of this Hon’ble Court.
(xix) It awardees disbursed and MCL, is also necessary t hat
including the names a list of all the and the amounts b y the
Collector to the Claims to them, jointly signed must be ma de
available Commission as well as counsel for the ous tees
forthwith,
(xx) In so far as acquisition of additional land for resettlem ent
and rehabilitation is concerned, suitable assistanc e will be
offered by the State authorities including the Divi sional
Commissioner Sambalpur.”
1155
We are broadly in agreement with the recommendations made
by the learned Amicus. We, however, leave it open t o the
appellants or any other affected parties to put forward their
objections before the High Court/Commission since w e are
inclined to leave such matters to be dealt with by the High
Court/Commission.
With regard to recommendation XIV, learned counsel for t he
appellants has an objection on the ground that the issue is
covered by the Orissa Rehabilitation and Resettlement Poli cy
2006.
Learned Amicus states that the recommendation is consistent
with the report of Parichha Commission which has alr eady
been accepted by this Court. This aspect of the matter m ay be
gone into by the High Court, if necessary.
One of the issues which is surviving is as regards cons tructed
housing on the land allocated for rehabilitation an d
resettlement by the affected persons. Mr. Dhankar, learned
senior counsel appearing for the appellants states th at it is
not clear whether all such persons want constructed housing
or not. A notice will therefore be put in the Office of the District
Collector seeking objection to such construction. Those who
do not expressly indicate their option to go for housing other
than the constructed housing offered by the appellant , such
option to be indicated within one week of the notice, they will
be presumed to be willing to opt for the allotment of such
housing constructed by appellant.
We do accept that necessary basic health amenities as already
directed by this Court will be duly provided at the site.
Subject to the above, it will be open for the High Court/
Commission, keeping in mind the report of the Paric hha
Commission which has already been accepted, to cons ider
issuing any further directions…”
9. By order dated 13.10.2020, this court had directed MCL to
share all the status reports and relevant documents avail able with it,
digitally, with all parties. Apart from that, the cour t recorded that as
observed by the previous order dated 02.09.2020, a sum of
566,31,46,942.78 was deposited with the concerned authority. Mr
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
Atmaram Nadkarni, learned Additional Solicitor Genera l of India,
submitted that MCL was willing to offer employment in admitted cases
to the persons mentioned in the reports for the relevant villages. Details
were furnished to the court. In addition, Mr Prashant Bhushan, learned
counsel for landowners had urged that for villages Tumulia, Jhupuranga,
Ratansara, and Kirpsara, no award was declared before 01.01.2014,
i.e., the date on which the Right To Fair Compensation And Transparency
In Land Acquisition, Rehabilitation and Resettlemen t Act, 2013
(hereinafter, “R&R Act, 2013”) came into force. Reliance was also
placed upon Section 24 of that Act as well as this court’s decision passed
by the Constitution Bench in Indore Development Authority v. Manohar
Lal & Ors., 3 to urge that provisions of the 2013 Act relating t o
determination of compensation must therefore apply. It was also urged
that a tabular chart furnished by the District Collect or, Sundargarh,
indicated that at least in respect of six sites in differe nt villages, no
certificate of completion had been issued by the competent aut hority,
and with respect to two other sites, resettlement and rehabilitation work
was still at a primary stage.
10. Several applications were moved: some by MCL, and many
more by the landowners, seeking a range of directions. In addition, some
contempt proceedings were also initiated, submitting that the directions
of this court were not complied with altogether, or not impl emented
appropriately. All these applications were heard by this court. This
judgment will thus dispose of all those applications and contempt petitions.
11. During the course of the hearings, counsels for the parties
addressed submissions on the following issues:
i. Point no. 1: The date or dates on which compensation
became reckonable (also referred to as the ‘cut-off date’);
ii. Point no. 2: Applicability of the R&R Act, 2013;
iii. Point no. 3, 4 and 5: Whether the R&R Policy 2006 applied,
or the subsequent policy of 2013; If the latter policy (of
2013) applied, then for the purpose of employment benefits,
whether the family unit was deemed to be represented by
a singular member, or several of them; and whether the
Commission could re-open determinations based on change
3 Indore Development Authority (LAPSE-5 J.) v. Manoha rlal, (2020) 8 SCC 129.
1157
of policies of the State, after its report was accepte d by
this court;
iv. Point no. 6 : Entitlement to housing plots; and
v. Point no. 7 : Creation of facilities and amenities, such as
schools, community centres, medical facilities, etc.
B. Analysis
12. Prior to delving into a point-by-point analysis, it is instrumental
to allude to the case of State of M.P. v. Narmada Bachao Andolan, 4
which highlighted the essence of rehabilitation through the lens of Article
21 of the Constitution:
“Land acquisition and rehabilitation : Article 21
26. It is desirable for the authority concerned to ensure that a s
far as practicable persons who had been living and carrying
on business or other activity on the land acquired, if they s o
desire, and are willing to purchase and comply with any
requirement of the authority or the local body, be given a
piece of land on the terms settled with due regard to the pr ice
at which the land has been acquired from them. However, the
State Government cannot be compelled to provide alte rnate
accommodation to the oustees and it is for the auth ority
concerned to consider the desirability and feasibil ity of
providing alternative land considering the facts an d
circumstances of each case.
27. In certain cases, the oustees are entitled to rehabilitat ion.
Rehabilitation is meant only for those persons who have
been rendered destitute because of a loss of reside nce or
livelihood as a consequence of land acquisition. Th e
authorities must explore the avenues of rehabilitation by w ay
of employment, housing, investment opportunities,
and identification of alternative lands.
“10. … A blinkered vision of development, complete apathy
towards those who are highly adversely affected by the
development process and a cynical unconcern for the
enforcement of the laws lead to a situation where the right s
and benefits promised and guaranteed under the
4 State of M.P. v. Narmada Bachao Andolan , (2011) 7 SCC 639.
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
Constitution hardly ever reach the most marginalise d
citizens.” (Mahanadi Coalfields Ltd. case [Mahanadi
Coalfields Ltd. v. Mathias Oram, (2010) 11 SCC 269 :
(2010) 4 SCC (Civ) 450 : JT (2010) 7 SC 352] , SCC p.
273, para 10)
For people whose lives and livelihoods are intrinsi cally
connected to the land, the economic and cultural shift to a
market economy can be traumatic. (Vide State of
U.P. v. Pista Devi [(1986) 4 SCC 251 : AIR 1986 SC 2025],
Narpat Singh v. Jaipur Development Authority [(2002 ) 4
SCC 666 : AIR 2002 SC 2036] , Land Acquisition Officer
v. Mahaboob [(2009) 14 SCC 54 : (2009) 5 SCC (Civ)
297] , Mahanadi Coalfields Ltd. v. Mathias Oram
[Mahanadi Coalfields Ltd. v. Mathias Oram, (2010) 1 1
SCC 269 : (2010) 4 SCC (Civ) 450 : JT (2010) 7 SC 352]
and Brij Mohan v. HUDA [(2011) 2 SCC 29 : (2011) 1 SCC
(Civ) 336] .) The fundamental right of the farmer t o
cultivation is a part of right to livelihood. “Agricu ltural
land is the foundation for a sense of security and freedom
from fear. Assured possession is a lasting source for peac e
and prosperity.” India being a predominantly agricultural
society, there is a “strong linkage between the lan d and
the person’s status in [the] social system”.
28. However, in case of land acquisition, “the plea of
deprivation of right to livelihood under Article 21 is
unsustainable”. (Vide Chameli Singh v. State of U.P. [( 1996)
2 SCC 549 : AIR 1996 SC 1051] and Samatha v. State of
A.P. [(1997) 8 SCC 191 : AIR 1997 SC 3297] ) This C ourt
has consistently held that Article 300-A is not onl y a
constitutional right but also a human right. (Vide Lac hhman
Dass v. Jagat Ram [(2007) 10 SCC 448] and Amarjit
Singh v. State of Punjab [(2010) 10 SCC 43 : (2010) 4 SCC
(Cri) 29] .) However, in Jilubhai Nanbhai Khachar v . State
of Gujarat [1995 Supp (1) SCC 596 : AIR 1995 SC 142] this
Court held : (SCC pp. 620 & 632, paras 30 & 58)
“30. Thus it is clear that right to property under Ar ticle
300-A is not a basic feature or structure of the Constitution.
It is only a constitutional right. …
***
1159
58. … The principle of unfairness of the procedure
attracting Article 21 does not apply to the acquisition o r
deprivation of property under Article 300-A giving e ffect
to the directive principles.”
29. This Court in Narmada Bachao Andolan (1) [(2000 ) 10
SCC 664] held as under: (SCC pp. 702-03, para 62)
“62. The displacement of the tribals and other
persons would not per se result in the violation of their
fundamental or other rights. The effect is to see t hat on
their rehabilitation at new locations they are better off tha n
what they were. At the rehabilitation sites they wil l have
more and better amenities than those they enjoyed in their
tribal hamlets. The gradual assimilation in the mainstream
of the society will lead to betterment and progress .”
(emphasis supplied)
30. In State of Kerala v. Peoples Union for Civil L iberties
[(2009) 8 SCC 46] , this Court held as under : (SCC p . 95,
paras 102-03)
“102 . Article 21 deals with right to life and liberty. Would it
bring within its umbrage a right of tribals to be rehabilitated in
their own habitat is the question?
103. If the answer is to be rendered in the affirmative, t hen,
for no reason whatsoever even an inch of land belonging
to a member of Scheduled Tribe can ever be acquired .
Furthermore, a distinction must be borne between a right
of rehabilitation required to be provided when the land of
the members of the Scheduled Tribes are acquired vis -à-
vis a prohibition imposed upon the State from doing so at
all.”
(emphasis supplied)
31. Thus, from the above referred judgments, it is eviden t that
acquisition of land does not violate any constituti onal/
fundamental right of the displaced persons. However , they
are entitled to resettlement and rehabilitation as per the policy
framed for the oustees of the project concerned.”
With this context, an analysis of each of the aforementioned points
is elaborated in the following sections.
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
I. Cut-off date
13. Mr. Prashant Bhushan, learned counsel appearing for some
landowners and groups representing them, argued that the Commission’s
report for Gopalpur was accepted by this court, whereby the effective
date for the computation of compensation was held to be the date of
notice of survey. It was submitted that given that compensa tion and
rehabilitation determination had been unduly prolonged, this court ought
to clarify that the date of survey of the concerned village should be the
effective date, rather than the date of survey in the c ase of village
Gopalpur, which was in September 2010. It was argued, that adopting
this would be consistent, in principle, as anything else would mean that
the Commission, and this court, would be applying different standards.
14. Mr. Atmaram Nadkarni, learned senior counsel appearing for
MCL, urged that the Gopalpur approach was universally adopted as the
correct one by the Commission, based on which reports for other villages
were prepared, and consequently compensation amounts determined.
As a consequence, the landowners also stood to benefit, becau se the
date of September 2010 was a uniform one, on the basis of which
compensation and all other amounts were determinable. It was further
submitted that so far as the question of delay or prejudice was concerned,
there could be no cause for complaint, because there was suff icient
safeguard in law, by way of award of interest, for delayed payment. It
was submitted that if this court were to revisit the issue, settled matters
that had attained finality, would be opened and the process of
compensation determination thrown into uncertainty, which would not
be to the benefit of anyone, including the land owners.
15. The Parichha Commission, in its report relating to village
Gopalpur, explained the reasons why the date for deter mination of
compensation and benefits should be calculated from September 2010:
“15. In a tribal area like Sundargarh most of the p eople
depend on agriculture for their sustenance and generally hav e
no other avocation. Such people once uprooted from their
land find themselves nowhere having no savings to draw and
nothing to fall back upon. Such persons, if not pro perly
rehabilitated and properly compensated may even fac e
starvation. During the process of objection hearing, we found
that being deprived of their legal rights over the lands because
of acquisition notification, some tenants could not arrange
1161
funds for undertaking treatment to ailing family members, who
were suffering from serious illness as a result some of such
patients died without getting proper treatment. Som e land
holders complained that their children’s marriage a nd
education were stalled because they had no legal ri ght to
deal with their lands. If the compensation would have been
paid within one or two years of publication· of 4(1 )
notification, then the land holders could have purc hased
equivalent amount of land for their sustenance as admittedly
the value of lands then was much less than the present ra te. It
isto be noted that delay in payment of compensation was no t
at all due to the fault of the land holders but was entirely d ue
to slackness on the part of the Government of India a nd the
beneficiary company, MCL. We, therefore feel that the pro per
compensation for· the lands to the land holders can not be
given unlessthe cut-of date is brought to the· date of notice
published by the Claims Commission for survey of the 1ands
as per the direction of the apex Court. We, accordi ngly,
recommend the cut-off date to be September, 2010 and for
assessment of the compensation of the lands of Gopalpu r as
per the market rate prevalent in 2010-11.”
16. The approach adopted in relation to village Gopalpur for
determining compensation amounts and fixing the cut- off date as
September 2010, was applied in relation to other villages such as Sardega,
Balinga, Bankinahal, Tiklipara, Garjanbahal, and Kulda by this court’s
order dated 08.08.2012, and on 10.04.2013, the Commission’s report
was endorsed and accepted. By another order dated 15.07.2013, the
court accepted the Commission’s report for village Karlikachhar. Given
these facts, this court is of the opinion that there is merit in the contention
of MCL, that compensation amounts should be determined having regard
to one single cut-off date, i.e., September 2010. Given the fact that this
court was alive to the plight of the landowners who had not been pai d
any amount for over 22 years when the first judgment was deliver ed,
which led to the setting up of the Commission and the evolution of the
Gopalpur model, whereby survey was undertaken for the first time after
September 2010, that date should be the reckonable one. If one keeps in
mind the fact that had the compensation determination been based on
the date of issuance of the preliminary notification, it would have plainly
resulted in injustice to the landowners. Instead, the shifting of the date to
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
September 2010, and the further recompense to the landowners bas ed
on that cut-off date, inures to their benefit. The shifting o f dates again
would spell uncertainty, and also lead to a real possibility of delay in the
computation of compensation and other benefits to the landowners who
were deprived of their rights. In these circumstances, the court is of the
opinion that re-opening the issue would lead to considerable uncertainty,
because settled cases would invariably have to be re-exami ned and
computations made afresh. For these foregoing reasons, the submission
with respect to application of the dates when the surveys were notified
as the basis for computation of compensation in different villa ges, is
rejected as unfeasible.
17. The cut-off, based upon the Gopalpur report, of Septem ber
2010 merits acceptance in regard to all 14 villages for mo re than one
reason. The first and foremost, is that the acquisition in the present case
under the CBA Act was notified in 1988; the final notif ication or
declaration was made in 1990. The nightmare faced by the land owners
in respect of the internal dispute, ultimately led to their approaching the
court. Finally, this court intervened and directed the mechanis m for
determination of compensation. By this method, irremediable prejudice
that would have been caused to the land owners had the original date
(1988-1990) been treated as the basis, was avoided. The net re sult is
that the Gopalpur report which is based upon the cut-off being September
2010, has justly inured in favour of land owners by postponing the date
for reckoning the compensation by 22 years. Secondly, and equally
important, most of the compensation determination ex ercises were
conducted between September 2010 and end of 2013. The land owners
have not been able to demonstrate how the adoption of Gopalpur cut-off
would prejudice them in any manner. No sale deed or market value or
documents disclosing significant change in market value between 2010
and 2013-14 has been disclosed. Thirdly, all land owners regardless of
whether the survey for compensation determination took place in 2011,
2012, or 2013 would in any case be entitled to interest, at statutory rates
if the Gopalpur cut-off date is accepted. This would result in statutory
interest accruing in favour of the land owners, upon the acceptance of
the report, which would be over and above the compensation determined
on the basis of the market value determined as well as the solatium. This
would offset the prejudice, if any, caused due to basing the compensation
determination on the Gopalpur cut-off dates. In terms of the State policy,
a rehabilitation and resettlement development adviso ry committee
1163
(hereinafter, “RPDAC”) is constituted by the State Gover nment and
tasked with implementation of rehabilitation measures. The rehabilitation
and resettlement plan has to be prepared by the Collector after consultation
with displaced families. The resettlement site is selected by the RPDAC,
based upon the consent of the villagers, post which, an intimation is sent
to the required body (in the present case, MCL). According t o MCL,
this site for resettlement has been finalised. The Collector, pursuant to
an order of this court, had filed a report on 03.11.2020. The report covers
a large number of rehabilitation and resettlement villages and also lists
that in relation to 12 villages, 326 objections were recei ved by the
Collector. After verification exercises, the Collector ha s reported that
the list with respect to rehabilitation and resettlement needed the approval
by the Government; and the Collector had to prepare a report in
consultation with the displaced families. The RPDAC had to select the
site, gram sabhas had to be held, displacement certifica tes had to be
issued to persons, in addition to which they had to be provided building
assistance of minimum
2,40,000/-.
18. Consequently, the date fixed in the Gopalpur report, by the
Commission (i.e., September, 2010) would be the basis for compensation
determination. Apart from compensation, the claimants would also be
entitled to statutory benefits (solatium, additional compensation, interest,
etc.) in accordance with the Land Acquisition Act, 1894.
II. Point No. 2: Applicability of the R&R Act, 2013
19. The landowners argued that since the coming into force of
the R&R Act 2013, the appropriate law for determination of compensation
as well as other benefits, would be provisions of that enactment, and not
the repealed Land Acquisition Act, 1894, or the CBA Act. It was urged
that since in all the cases, where compensation had not been disbursed
to the oustees on the date when possession of the land was taken over
from them, the provisions of the R&R Act 2013 would be attracted.
20. It was urged that the Commission in its reports rela ting to
villages Kiripsira, Jupurunga, Ratansara, and Tumulia, erroneously rejected
the claim about applicability of the R&R Act, 2013. It was argued, in this
regard, that the Commission’s reports on this aspect could not be
supported, and since the compensation determination had not been
finalized, the applicable law would be the one in force when the final
decision is arrived at.
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
21. On behalf of MCL, it was submitted that the Commission
rightly declined to award the compensation under the R&R Act, 2013 as
this court had categorically settled the position vide its o rder dated
25.10.2013. The order of this court had clarified that only the Thir d
Schedule of the R&R Act 2013, would be applicable, with regard t o
infrastructure for resettlement, etc. So far as award of compensation
was concerned, this court had already affirmed the Co mmission’s
approach while approving the Gopalpur report and the same would govern
all the villages under the acquisition. In case any devia tion was made
with regard to award of compensation in any of the villages , it would
open up a ‘Pandora’s box’ and all the claims which were settled following
the Gopalpur model would open up, resulting in a never-ending process.
It was further submitted that MCL, despite having paid a huge amount
of over
2,000 crores, had not yet received physical vacant possession
of most of the land, for which compensation was already disbursed, and
rehabilitation and resettlement benefits granted.
22. The Commission had dealt with and rejected the claim for
payment of compensation under the R&R Act 2013, observing as follows:
“8.9 Many land oustees filed Claim Cases with a praye r to
provide them compensation under the Right to Fair
Compensation and Transparency in Land Acquisition
Rehabilitation and Resettlement Act, 2013. This Commis sion
vide order dated 19.6.2015 passed in Claim Case No.27 and
vide order dated 30.10.2018 passed in Claim Case No. 1 30
and order dated 08.12.2018 passed in Claim Case No.1 0/1
& 27 others, after hearing the Counsel appearing in those
cases and the petitioners in person, dismissed thos e cases.
All other cases involving similar issue were also dismis sed in
terms of the above cases.”
23. Section 105 of the R&R Act 2013 reads as follows:
105. Provisions of this Act not to apply in certain cas es or to
apply with certain modifications .–(1) Subject to sub-section
(3), the provisions of this Act shall not apply to the enactm ents
relating to land acquisition specified in the Fourth Schedule.
(2) Subject to sub-section (2) of section 106, the Central
Government may, by notification, omit or add to any of the
enactments specified in the Fourth Schedule.
1165
(3) The Central Government shall, by notification, within one
year from the date of commencement of this Act, direc t that
any of the provisions of this Act relating to the determ ination
of compensation in accordance with the First Schedu le and
rehabilitation and resettlement specified in the Sec ond and
Third Schedules, being beneficial to the affected families, shall
apply to the cases of land acquisition under the enac tments
specified in the Fourth Schedule or shall apply wit h such
exceptions or modifications that do not reduce the
compensation or dilute the provisions of this Act re lating to
compensation or rehabilitation and resettlement as may be
specified in the notification, as the case may be.
(4) A copy of every notification proposed to be issued un der
sub-section (3), shall be laid in draft before each House of
Parliament, while it is in session, for a total period of thirty
days which may be comprised in one session or in tw o or
more successive sessions, and if, before the expiry of the
session immediately following the session or the su ccessive
sessions aforesaid, both Houses agree in disapprovi ng the
issue of the notification or both Houses agree in making an y
modification in the notification, the notification shall not be
issued or, as the case may be, shall be issued only in such
modified form as may be agreed upon by both the Houses of
Parliament.”
Entry 11 to the Fourth Schedule of the said Act, read as follows:
“11. The Coal Bearing Areas Acquisition and Develop ment
Act, 1957 (20 of 1957)”
24. By virtue of Section 105, read with the Fourth Schedule,
therefore, the R&R Act 2013, was not applicable to acquisitions made
under the CBA Act. However, by Section 105(2), the Central Government
had issued a notification:
“Direct that any of the provisions of this Act relat ing to the
determination of compensation in accordance with the Firs t
Schedule and rehabilitation and resettlement specified in the
Second and Third Schedules, being beneficial to the affe cted
families, shall apply to the cases of land acquisit ion under
the enactments specified in the Fourth Schedule or shall a pply
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
with such exceptions or modifications that do not reduce the
compensation or dilute the provisions of this Act re lating to
compensation or rehabilitation and resettlement as may be
specified in the notification, as the case may be.”
25. The Ministry of Coal, Central Government issued a clarification
dated 04.08.2017 on the applicability of First, Second and Third Schedules
of the R&R Act, 2013 in cases of acquisition of lands under the CBA
Act. The clarification stated as under:
“1….That consequent upon the announcement of the Ri ght
to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act 2013( hereinaft er
‘RFCTLARR Act’) and Order SO No. 2368(E). notified on
28.08.2015 by Ministry of Rural Development, Coal I ndia
Limited and its subsidiaries have sought clarificat ions
regarding payment of compensation for land acquired p rior
to 01.09.2015 under Coal Bearing Areas (Acquisition and
Development Act. 1957(hereinafter the ‘CBA Act’)
2. As multiple stages are involved in the land acqu isition
process, including that of determination of compensation, thi s
Ministry sought advice from Ministry of Law and Jus tice.
Ministry of Law and Justice has given their advice that i f the
compensation has not been determined before 01.09.2 015
under Section 13(5) of the CBA Act, then the provisi ons of
First Schedule, Second Schedule and Third Schedule o f the
RFCTLARR Act will be applicable. In remaining cases whe re
the compensation has already been determined under Section
13(5) of the CBA Act before 01.09.2015, then such cases will
not be reopened.
4. In view of the above clarifications, previous or der letter
no. 430200/26/88-LSWdated 12.05.1989 issued by the.
Ministry of Energy, Department of Coal shall stand modified.
The above clarifications may be followed in determination of
compensation for land acquired under CBA Act.
This is issued with the approval of the competent authority.
s/d
R.S. Saroj
Under Secretary to the Govt. of India”.
1167
26. The above relevant facts reveal that Section 105 exclude d
application of the R&R Act, 2013 to acquisitions made and emine nt
domain exercised, under the enactments specified in its Fourth Schedule,
such as the CBA Act. It was under this enactment, that the acquisitions
which are the subject matter of the present proceedings, were notified
in favour of MCL.
27. When the R&R Act, 2013 was brought into force with effect
from 01.01.2014, the acquisitions in favour of MCL continued to be under
the CBA Act. By Section 105(3) of the R& R Act, 2013, the Cent ral
Government was obliged to issue the notification within one year from
the date of commencement of that Act to ensure that its provisions relating
to the determination of compensation , were in accordance with the
provisions in the First Schedule and rehabilitation and resett lement in
accordance with the Second and Third Schedules of that Act. It was
pursuant to this mandate, that on 28.08.2015 the Central Government
issued a notification in terms of Section 105(3). However, the Ce ntral
Government chose to exercise its power to remove difficulties , under
Section 103. This seems to be because the notification was i ssued on
28.08.2015– beyond the period prescribed in Section 105(3). Nevertheless,
the spirit of the statutory injunction to make the beneficial provisions of
the R&R Act, 2013 applicable to compensation determi nation and
resettlement or rehabilitation measures, was complied with in effect and
substance.
28. MCL relied upon the order of this court dated 25.10. 2013
and urged that only the benefits of the Third Schedule could be availed
by the landowners. Those provisions relate to the obligation to provide
amenities. At the same time, this court has to be consc ious of the fact
that when that order was made, the R&R Act, 2013, a s we know of
today, was not even law – it was sought to be introduced in Parliament
through a Bill. The order of 25.10.2013 only expressly allud es to the
Bill. In other words, the court could not foresee the sequence in which
the provisions of the R&R Act, 2013 would be applicable. The order
of this Court nowhere indicated that whether the R&R A ct - which
was to be enacted, and come into force later - was ap plicable to all
land acquisition proceedings including those pending consideration at
various levels and before various courts, and whether the body of the
new enactment sought to exclude from its purview acquis itions made
under enactments other than the erstwhile Land Acquisition Act, 1894,
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
as the R&R Act, 2013 eventually did, through Section 105 and the
Fourth Schedule.
29. There can be no doubt that for the period betwe en
01.01.2014 and 28.08.2015, ongoing acquisitions pro cesses under
enactments specified in the Fourth Schedule - such as the CBA Act
- were out of purview of the R&R Act, 2013. However , with the
publication of the notification under Section 113 re ad with Section
105(3) on 28.08.2015, the legal position underwent a t ransformation.
Acquisition processes, especially compensation determi nation as well
as calculation and disbursement of resettlement ent itlements and
rehabilitation measures had to be in terms of the F irst, Second and
Third Schedules to the Act.
30. It is immediately noticeable from the provisions of the First
Schedule to the R&R Act, 2013 that compensation determination is
radically different from the pre-existing method of determination. This is
because market value determination, by virtue of Sl. No. 2 of the First
Schedule, requires in the first instance, decision on which factor is to be
applied for acquisition of land in rural areas; Sl. No. 4 outlines the method
for determining value of assets; and Sl. No. 5 states that th e solatium
would be equal to 100% of the market value of the land mentioned in Sl.
No. 1 in respect of rural areas multiplied by the factors p rovided in
Serial No. 2. Serial Nos. 6, 7, and 8 outline the method for determining
the final award.
31. As far as rehabilitation and resettlement entitle ments are
concerned, provisions of the Second Schedule apply. By Serial No. 1,
if the property displaced includes a house, the specific provision is that
in case the house is “lost” due to acquisition in r ural areas, the
resettlement benefit would be “a constructed house” provided as per
the Indira Awas Yojana specifications. In addition, resettlement
benefits by way of employment, or in lieu of it, a one-time payment of
5 lakh and annuity policies which were to yield not less than
2000/
- per family per month for 20 years, plus subsistence grant for displaced
families for one year, and one time resettlement allowance of
50,000/
-, among others, is assured. The Third Schedule to the R&R Act, 2013
outlines the infrastructural amenities which the State has to ensure, in
the case of families and people displaced to large scale acquisition
proceedings.
1169
32. Having regard to the provisions of the R&R Act, 2 013
especially the First, Second and Third Schedules thereof, th e position
taken by MCL in this Courts’ opinion cannot be coun tenanced.
Undoubtedly the Gopalpur model of determining compensation applied
in respect of the villages for which reports were prepared and approved
by the Courts (Gopalpur, Sardega, Balinga, Bankibahal, Tikilipara,
Garjanbahal, Kulda, Karlikachhar, Siarmal, and Bangurkela). However,
in regard to four villages i.e., Tumulia, Jhupuranga, Ratan sara, and
Kirpsara, no award has yet been approved. The report for Tumulia village
was prepared on 04.04.2020 and thereafter filed in court, awaiting its
approval. The report in respect of the village Jhupuranga has been placed
on record; the same is pending approval of this court.
33. This court is of the opinion that with the issuance of t he
notification on 28.10.2015 and the clarification by the Central Government
to MCL on 04.08.2017, the question of paying or depositing compensation
in terms of the CBA Act cannot arise after 28.10.2015. This is because
the requirement of compensation determination under the CBA Act ceased
by virtue of Section 105(3). The statutory regime under the CBA Act
was superseded and substituted with the provisions of the First Schedule
to the R&R Act, 2013.
34. In the light of the above discussion, it is held tha t the First
Schedule of the R&R Act, 2013 is applicable to the a cquisition in
question, made by the Central Government in favour of MCL, in respect
of the villages, the reports of which were not appr oved prior to
28.10.2015. Accordingly, the compensation based upon the market value
for the four villages i.e., Tumulia, Jhupuranga, Ratansara, and Kirpsara
have to be re-determined in accordance with the provis ions of the
First Schedule to the R&R Act, 2013. Since the extent to land involved,
identification of land owners, and the basic market value along with
solatium and interest payments, have been determine d, the only
additional exercise which the Commission has to carr y out is the
differential payable after the re-determination in re spect of all the
elements i.e., the market value, solatium, and further interest. It is also
further clarified that the villages in respect of whi ch this court has
already approved reports of the Commission, and entitl ements have
been determined, even availed of, or pending implementation, i.e., the
other ten villages, the issues shall stand finalized - there can be no re-
determination on the basis of the present judgment.
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
III. Point Nos. 3 (whether the Orissa Rehabilitation Policy
of 2006, or the subsequent Policy of 2013 applies), 4
(whether for the purpose of employment benefits under
the 2013 Policy, the family unit is deemed to be one, or
several) and 5 (whether the Commission could re-open
determinations based on change in policies of the State,
after its report was accepted by this court)
35. Learned counsel for the landowners had urged that by virtue
of Section 108 of the R&R Act, 2013 the affected individuals or families
have the choice or option to avail benefits of rehabilitation and resettlement
either in terms of the State law or policy or the provisions of the Act. It
was submitted that for the purposes of deciding such p ackage and
resettlement benefits, the cut-off date should be the date on whi ch the
survey was first conducted in relation to the concerned village. T he
learned counsel therefore submitted that the approach of the Commission
in confining itself to the R&R Policy 2006 and denying the later beneficial
provisions through the amendment of 2013 is untenable.
36. On behalf of MCL, it was argued that the Commission ’s
approach in calculating the rehabilitation and resettlement benefits in the
R&R Policy 2006 is sound. It is submitted that the arguments on behalf
of the land owners assumes that the acquisition in the present case was
made under the R&R Act, 2013. In fact, the old Land Acquisition Act
was inapplicable; what applied was the CBA Act. Therefore, the policy
which inured in favour of the land owners was embodied in the R&R
Policy 2006. That was also in force when the judgment of this court was
delivered pursuant to which Gopalpur report was approved. B esides,
the subsequent reports have also gone by the 2006 policy. In th ese
circumstances, there is no question to say that the 2013 policy wo uld
apply, with the reopening of past cases resulting in chaos and uncertainty.
It would prolong the process of determining the rehabil itation and
resettlement benefits and also ensuring that they are r eceived by the
beneficiaries. Furthermore, adopting the 2013 amendment would result
in applying two sets of norms for the purpose of one acquisition.
37. Section 108 of the R&R Act, 2013 reads as follows:
“108. Option to affected families to avail better compensation
and rehabilitation and resettlement .-(1) Where a State law or
a policy framed by the Government of a State provides f or a
higher compensation than calculated this Act for th e
1171
acquisition of land, the affected persons or his fa mily or
member of his family may at their option opt to avai l such
higher compensation and rehabilitation and resettlement under
such State law or such policy of the State.
(2) Where a State law or a policy framed by the Government
of a State offers more beneficial rehabilitation and resettlement
provisions under that Act or policy than under this A ct, the
affected persons or his family or member of his family may at
his option opt to avail such rehabilitation and res ettlement
provisions under such State law or such policy of t he State
instead of under this Act.”
38. It is also pertinent to notice the relevant provisions of the
R&R Policy 2006. By clause 2(b), the term “compensation” means
the sum as in the erstwhile Land Acquisition Act, 1894. By Section 2(c),
the cut-off date for the purpose of compensation is the dat e on which
notification declaring the intention to acquire land under the relevant law
or provision of the rehabilitation policy is published. A note to clause 2(c)
states that the eligibility for resettlement and rehabilitation benefits would
be through a list of displaced families, and that the list would be updated
on the first January in the year in which the physical displacement is to
take place. The term “family”, which is crucial in the present case, has
been defined by the 2006 policy as follows:
“(f) Family means the person and his or her spouse, mi nor
sons, unmarried daughters, minor brothers or unmarr ied
sisters, father, mother and other members residing w ith him
or her and dependent on him or her for his/her livelihoods .
Note: Each of the following categories will be treat ed as a
separate family for the purpose of extending rehabi litation
benefits under this policy.
(i) A major son irrespective of his marital status.
(ii) Unmarried daughter/sister more than 30 years of age.
(iii) Physically and mentally challenged person irrespectiv e
of age and sex; (duly certified by the authorized Medical
Board). For this purpose, the blind/the deaf/the
orthopedically handicapped/mentally challenged
person suffering from more than 40% permanent
disability will only be considered as separate family.
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
(iv) Minor orphan, who has lost both his/her parents.
(v) A widow or a woman divorcee.”
39. By clause 4 of the policy, survey and identification of displaced
persons are to take place. By clause 7(ii), physical displacement cannot
be made before the completion of resettlement work; by cl ause 7(v),
provisions relating to rehabilitation are to be given effect from the date
of actual vacation of the land. Clause 8 outlines rehabilitation assistance.
Where displacement is on account of Type B(II), i.e., mining p roject
which results in displacement of land owners, the benefits of rehabilitation
and resettlement are as follows:
“II. Type B: Mining Projects
(a) Employment: Displaced and other affected families shall
be eligible for employment, by the project causing
displacement. For the purpose of employment, each f amily
will nominate one member of the family.
The project proponent will give preference to the n ominated
members of the displaced and other affected families in the
matter of employment. The order of preference will be as
follows:
(1) Displaced families losing all land including ho mestead
land,
(ii) Displaced families losing more than 2/3rd of agricul tural
land and homestead land,
(iii) Families losing all agricultural land but not h omestead
land,
(iv) Displaced families losing more than 1/3rd of agricult ural
land and homestead land,
(v) Displaced families losing only homestead land b ut not
agricultural land,
(vi) Families losing agricultural land in part but not homestead
land.
The Project authority will make special efforts to f acilitate
skill up-gradation of the nominated member of the displaced
family to make him/her employable in their project.
1173
1. In case of nominees of displaced families eligib le for
employment otherwise; the upper age limit shall be r elaxed
by five years.
2. Project authorities should notify their employment capacit y
sufficiently in advance.
3. As far as practicable, the objective shall be to provide one
member from each displaced/other family as mentioned above
with employment in the project. However, where the same
cannot be provided because of reason to be explaine d in
writing, cash compensation as mentioned below shall be
provided to such families. Families, who do not opt for
employment/self-employment as mentioned in sub para (a)
above and (b) below, shall be provided by the Project authority
with one time cash assistance in lieu of employment at the
scale indicated below:
(b) Training for Self-employment Project authority und er the
guidance of the Collector concerned will make adequ ate
arrangement to provide vocational training to at le ast one
member of each displaced/other family so as to equip him/
her to start his/her own small enterprise and refin e his/her
skillstotake advantage of new job opportunities. Fo r those
engaged in traditional occupations/handicrafts/hand looms,
suitable training shall be organized at the cost of project
authority to upgrade their existing skills.
(c) Convertible Preference Share: At the option of the
displaced family the project authority may issue con vertible
preference share upto a maximum of 50% out of the one-time
cash assistance as mentioned in sub para (a) above.
(d) Provision for homestead land: Subject to availability, each
displaced family will be given at least1/10th of an acre of
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
land free of cost in a resettlement habitat for hom estead
purpose.
(e) Assistance for Self-relocation: Each of the displaced fam ily
who opts for self-relocation elsewhere other than t he
Resettlement habitat shall be given a one time cash gr ant of
Rs.50,000/- in lieu ofhomestead land.
(1) House Building Assistance: Besides, Project authority shall
construct house for each displaced families in the resettle ment
habitat or provide house building assistance of Rs.1, 50,000/
- to each of the displaced family settling in the Re settlement
habitat or opting for self relocation elsewhere.
(g) Shops and Service Units: Project authorities wi ll also
construct shops and service units at feasible locations at thei r
own cost, which will be allotted in consultation with Collector
to project displaced families opting for self-employme nt. While
allotting such units, preference will be given to p hysically
challenged persons and members of displaced SC & ST
families.”
40. On 05.08.2013, the State of Orissa, through a notification
published in the Official Gazette, published the amendments to the R&R
Policy 2006. The amendment essentially dealt with change in clause
2(f) with respect to the definition of “family”. The amendment s made
are extracted below:
“AMENDMENTS
1. In the Orissa Resettlement and Rehabilitation Policy, 20 06
(hereinafter referred to as the said policy), for t he word
“Orissa” appearing wherever in the said policy, the word
“Odisha” shall be substituted and this substitution sha ll be
deemed to have come into force on the 1 st day of November,
2011.
2. In sub-clause (i) under clause (f) of Para 2, for the wor ds
“A major son irrespective of his marital status”, the word s “A
major son/grandson irrespective of his marital status” shall
be substituted.
3. In sub-clause (ii) under clause (f) of Para 2, for the wor ds
“Unmarried daughter/sister more than 30 years of age”, th e
1175
words “Major unmarried daughter/Major unmarried
granddaughter/Major unmarried sister” shall be substitut ed.
4. Amendment to Para 2(f)(i) is made to clarify and r estate
the provision of the said policy. Therefore, it sha ll take
retrospective effect from the date of commencement of t he said
Policy, i.e. 15 th May, 2006.
5. Amendment to Para 2(f)(ii) shall take effect from the date
of issue of this Government Resolution.”
41. The difference between the R&R Policy 2006 and the policy
as amended in 2013, essentially, is with respect to definition of “family”.
The 2006 policy has remained unchanged with respect to other
resettlement/rehabilitation benefits. The benefits may broadly be outlined
in the following terms:
(i) Employment; cash in lieu of employment – employment to
at least one member of displaced family or in lieu of this,
cash in terms of clause 3;
(ii) Provision for homestead land (subject to availability) entitles
each displaced family at least 1/10 th of an acre of land in a
resettlement habitat. One time cash grant of
50,000/- for
those opting for self-location elsewhere in lieu of homestead
land;
(iii) House building assistance of up to
1,50,000 to each
displaced family, settling in the resettlement habitat or opting
for relocation elsewhere. Shops and service units to be
constructed by the project authorities which are to be allotted
in consultation with the Collector to displaced family opting
for self-employment. These were subject to preference to
physically challenged persons and members of the displaced
SC/ST families.
42. By the provisions of the Second Schedule to the R&R Act,
2013 all displaced families losing a house in a rural area are entitled to a
constructed house in terms of the Indira Awas Yojana specifications.
This benefit can also be enjoyed by those who do not have a house but
were residing in the area for three years prior to acquis ition. In case a
family in an urban area opts not to take the house offered, it will be
entitled to one time compensation for house construction which will not
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
be less than
1,50,000/-. At the same time, if any affected family in
rural area so prefers, the equivalent cost of house may be offered in lieu
of the constructed house. The second benefit is that if jobs are creat ed
through the project which benefits from acquisition, the concerned entity
should provide suitable training and skill development in the required
field and make provision for employment at a rate not lower t han the
minimum wages to at least one member of the affected family or
arrange for a job in any other project. In lieu of this benefit, a one-time
benefit of
5 lakhs per family is to be made or annuity policies which
would be not less than
2,000/- per month per family for 20 years with
appropriate indexation in consumer price index for agricultural labourers
has to be made. Furthermore, subsistence allowance for displaced families
for a comparative one-year equivalent of
3000/- per month is to be
provided. Additional transportation cost for shifting an d one time
resettlement allowance of
50,000/- is payable.
43. The provisions of the R&R Act, 2013 which replaced the old
Land Acquisition Act, 1894 have for the first time cast obligations upon
the State to ensure that resettlement and rehabilitation is provided in
addition to compensation. These rehabilitation and resettlement provisions
relate not only to a right to employment for at least one member of the
displaced family but also other monetary and tangible benefits, such as
land for construction of houses, cash assistance for construction;
transportation cost; provision for temporary displacement; annuity and/
or cash payment in lieu of employment benefits, etc. Furth ermore, by
provisions of the Third Schedule, elaborate provisions for the kind of
public amenities which have to be provided, such as public health benefits,
schools, community centres, roads and other basic necessities, have been
obligated. All these are in furtherance of the displaced and the larger
social justice obligations cast upon the State.
44. The R&R Act, 2013 by Section 108 also clearly envisions that
the benefits provided by the new law are not to be applied blindly.
Wherever there are existing provisions that are more beneficial or provide
better benefits to displaced persons, such families and individuals have
the choice or option to prefer either such policy or local law or the
provisions of the R&R Act. If one goes by the principle underlying Section
108, clearly the benefits spelt out under the R&R Policy 2006, appear to
be better, and more elaborate.
1177
45. As noticed earlier, the difference between the Orissa
Resettlement and Rehabilitation Policy, 2006, and the amendment in 2013,
is with respect to the definition of “family”. The 2006 policy inter alia,
defines family as the “ person and his or her spouse, minor sons,
unmarried daughters, minor brothers or unmarried siste rs, father,
mother and other members residing with him or her and dependent
on him or her for his/her livelihoods.” The note to clause 2 (f) states
that, “Each of the following categories will be treated as a separ ate
family for the purpose of extending rehabilitation benefits under
this policy.” It also enumerates a major son and an unmarried daughter/
sister of more than 30 years, as “a separate family for the purpose of
extending rehabilitation.”
46. The amendment to the policy, made on 05.08.2013, is that
instead of a major son, the expression “A major son/grandson
irrespective of his marital status” was substituted. Similarly, the term
“Unmarried daughter/sister more than 30 years of ag e”, was
substituted with “Major unmarried daughter/Major unmarried
granddaughter/Major unmarried sister”.
47. The rival arguments in regard to these amendments were that
on the one hand, the landowners urged that grandsons, apart fr om the
original beneficiaries, were entitled to employment benefit s, as were
unmarried daughters, who were more than 30 years. On the other hand,
MCL urged that the basic idea of rehabilitation being granting employment
to one member of the displaced or affected family, the construction to
be given to the policy should be in harmony with that intent, a nd not
result in an employment bonanza, thus placing undue burdens on the
MCL.
48. A proper and purposive interpretation of the policy – with
respect to employment benefits and entitlements can be ga thered, not
only by taking note of the definition of “family” but also the operative
portion, which confers benefits. The same is as follows:
“II. Type B: Mining Projects
(a) Employment: Displaced and other affected families shall
be eligible for employment, by the project causing displacement.
For the purpose of employment, each family will nom inate
one member of the family.”
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
49. If one considers what the policy seeks to achieve, it is apparent,
that one member of a displaced family has to nominate the individu al
who can receive employment benefit. In this context, it is crucial to
notice that the benefit is to be given, in the first instance to the “person”.
The note extends the area of coverage by stating that a major son would
be treated as belonging to a separate family. The reason for this apparently
is that the senior most member of the family might not alw ays be in a
position to take up employment: either on account of age, or infirmity, or
the number of years of service left. Therefore, to ensure that employment
benefits are not denied due to such limitations, the definition of family
has been intentionally expanded, to include a major son, who would be
eligible to employment, and, in case his father or mother cannot be
employed, or can be employed only for a short duration. The inclusion of
a grandson, is to be seen in that context. The addition of the category of
“grandson” along with a major son, to read “ A major son/grandson
irrespective of his marital status” leads one to the same conclusion.
Thus, with the amendment of 2013, the basic entitlement of the person
affected, and his major son (who is to be treated as a separate family)
cannot be denied. The inclusion of a grandson, not as a separate
category, but along with the major son, is to ensure that if, for some
reason, the son is un-employable, or in turn is aged, or infirm, then, the
major grandson would be employed, in his stead. In other words, the
proper interpretation of this condition is that the father would be entitled
to employment; in case a major son exists, then that major s on would
too. However, if there are more than one major sons, one among them
would be entitled to the benefit, not all. Likewise, failing a major son,
i.e., where no major son exists, in that eventuality one major grandson
would be eligible for employment. This interpretation is fortified by the
fact that an unmarried daughter is treated as a separate unit; earlier, the
basic eligibility was subject to attaining 30 years. Now, the age restriction
has been done away with. Furthermore, to hold that the individual, one
of his major sons, and one major son, would all be eligible, together, to
claim employment is not the plain intendment. The structure of the
definition and the clause dealing with employment clearly shows that
two members of the family: i.e., the father and the son are eligible. In
addition, an unmarried daughter too, would be treated as a separate unit.
50. It is therefore held that R&R Policy 2006, as amended in
2013, being more beneficial, would be applicable, subject to the above
interpretation. At the same time, it is clarified that in cases where anyone
1179
has accepted employment, the issue cannot be re-opened – it shall be
treated as final and binding. It is also clarified that in the event anyone
among the displaced families is not interested in employment, and states
so expressly, the alternative of one-time monetary payment, in terms of
clause 3 of the 2006 policy, would be provided.
51. Therefore, in the light of the above discussion, it is held that
though the R&R Policy 2006 as amended in 2013 is applicable, the
question of the father, the son and grandson, being eligible for employment
benefit, concurrently, does not arise. Either one major son, or, i n his
absence, or unwillingness, a major grandson, would be eligible. This is
apart from the entitlement of unmarried daughters: in the ir case, the
aforementioned note to the definition had treated such daughters as a
separate family; the amendment has only removed the age threshold.
52. As a result of the above reasoning, it is held, in relat ion to
Point No. 3, 4 and 5 that the R&R Policy 2006, as amended in 2013
would apply. A displaced family has to be determined in the light of the
definition, which includes the individual, and one major son, and an
unmarried daughter. It is when, for some reason, the son cannot be
offered or given employment, then one major grandson would be eligible
for consideration. This court also holds that cases which have attained
finality cannot be re-opened on the basis of this interpreta tion. The
interpretation would inure in respect of cases where the r eports have
not been approved i.e., villages Tumulia, Jhupuranga, Ratansara, a nd
Kirpsara.
53. During hearings, the learned ASG had submitted that MCL
was willing to provide a one-time compensation amount in lieu of
employment, of
16 lakhs, as an alternative to the 2006 policy. It is
therefore directed that whichever option (R&R Policy 2006 or this one-
time compensation offer from MCL) is better, is to be pro vided. The
concerned Collector is to ensure the same.
IV. Point No. 6: Entitlement to housing plots
54. MCL has provided details and particulars with respec t to
village-wise resettlement benefits in terms of reset tlement plots.
According to these particulars, of the 3034 total displaced fam ilies,
resettlement benefits in plots were sanctioned in favour of 1420 families
of which such benefits were provided to 1177 families. 1614 families are
yet to be sanctioned these resettlement benefits/plots. The chart, which
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
according to MCL reflects the picture as of October 2021, is extracted
below:
55. The status of resettlement sites as of October 2021, according
to MCL, is as follows:
1181
activities of the site for
an amount of Rs.27.00
crores proposal
approved and e-tender
has been invited on
Dt:31.07.2020. Tender
opened on
Dt:29.08.2020 and
Work order has been
issued on
Dt:24.11.2020.
6 Sarangijharia 88.00 440 0 Gopalpur 22 nos. of proposal
regarding development
of R&R site
Sarangijharia has been
processed and sent
MCL HQ for approval.
56. During the hearing, MCL argued that there was reluctance on
part of the villagers regarding resettlement sites which has created
problems for it. It was therefore, urged that the concerned c ollector
should in a time bound manner finalise the sites after which MCL should
also be given time-bound directions to develop them. In the alternative, it
was urged that instead of long drawn out rehabilitation/reset tlement
process, which envisions involvement of multiple authorities, the court
may consider it appropriate and award one-time lumpsum amount in lieu
of plots – further wherever plots have been earmarked, allotted, and in
the process of development and allotment, such classes should no t be
disturbed. It was urged in this regard that in the sites whi ch are ready
for relocation, and shifting, in terms of the order of the Claim Commission,
House Building Advance has been enhanced from
2,24,000/- to
14,50,000/-.
57. On behalf of the land owners, it was urged that the R&R
policy of the State envisions that ordinarily a plot has to be provided to
those who were displaced. There is no doubt that the State authorities
have delayed the process unduly. It was further submitted th at given
that most of the displaced families belong to the poorest sections of the
society and are from the Scheduled Tribes communities, it would not be
appropriate to award cash compensation, but instead the State authorities
should ensure that resettlement plots are given.
58. The resettlement benefits in terms of the State’s policies include
development of plots and allotment to displaced families, which is “subject
to availability”. One time assistance for relocation @
50,000/-; house
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
building allowance of
1,50,000 has concededly been increased to
14,50,000. The figures shown by MCL as well as the materials placed
on record in the form of objections by the land owners disclose that the
progress of development of lands in the sites earmarked have been dismal,
to put it mildly. MCL cannot escape the share of the blame in this regard.
59. Under the R&R Act, 2013 the State and MCL are under an
obligation to ensure that rehabilitation and resettlement plans are prepared
in consultation with the displaced owners. The State policy i s also in
accordance with the Act in that regard. In the present case , according
to the materials, MCL asserts that resettlement plots have been provided
to 1177 displaced families and that 1614 families remain to be given that
benefit.
60. Having regard to the fact that the judgment of this court was
delivered in 2010 after which compensation determination and reports
of the committee were prepared and submitted to this cou rt mostly
between 2010 and 2013, and further having regard to the fact that two
other reports are pending consideration of this court, it would, in the
fitness of things, be appropriate that such of the resettlement plots which
have been acquired, should be developed in consultation with the
Collector. The Collector will hold hearings, after giving due publicity to
the land owners, indicating the place and providing adequate time for all
land owners and stakeholders to be present. Having considered the views
of the land owners, the Collector will, with the involvement of thre e
nodal officers to be specially assigned with the task of implementation
of the resettlement policy, by co-ordinating with all State agencies, finalise
and approve the plots. This process should be completed within nine
months of judgment of this court. The Court is also of the opinion
that the development of such plots should not exceed 15 mont hs in
all.
61. In case the number of plots is inadequate, the Co llector
concerned shall secure the options in the first instance from displaced
families, whether they would like to be allotted a plot or take lumpsum
compensation in lieu thereof. Having secured these options, in case the
number of land owners exceeds the number of plots, the Collector shall
ensure that the resettlement plots are allotted after a draw of lots is held.
As far as the land owners who cannot secure a plot are concerned, this
court is of the opinion that lumpsum compensation to the extent of
25 lakhs should be paid to them .
1183
62. This court is constrained to adopt the procedure indicated
above, having regard to the fact that the process of com pensation
determination, identification of resettlement sites and development has
taken inordinately long – during which the displaced families must have
undergone multiple changes by births and death. It would therefore, be
appropriate and in the interests of justice, that at some stage, the entire
rehabilitation and resettlement process is brought to an end and the land
owners are provided resettlement and rehabilitation by wa y of cash
benefits, whenever it is not possible to provide plots.
V. Point No.7: Creation of facilities and amenities such as
schools, community centres, medical facilities etc .
63. The Orissa Resettlement and Rehabilitation Policy does not
indicate specific provisions with respect to facilities and amenities that
are to be developed. Consequently, the provisions of the Third Schedule
to the R&R Act, 2013 which outlines 25 heads and indicate amenitie s
such as roads in the villages, appropriate drainage, provision fo r safe
drinking water for each family, provision for drinking water for cattle,
grazing land, reasonable number of fair price shops, comm unity or
panchayat ghars; village level post offices, seed-cum-fertilizer storage
facilities, provision for basic irrigation facilities, transportation to the newly
resided areas, burial or cremation grounds, facilities for sanitation,
including individual toilet points, individual single electricity connections,
anganwadi , providing child nutritional services, school, sub-health centres
within two kilometre range, Primary Health Centres in te rms of the
Central Government norms, play grounds for children, one community
centre for every 100 families, places of worship, sepa rate land for
traditional tribal institutions, etc. In addition, forest dweller families must
be provided with their forest on non-timber produce close to t he new
places of resettlement. Furthermore, appropriate security arrangements
are to be provided and service centre in accordance with the prescribed
norms also has to be provided.
64. In the present case, the materials on record show that t hose
resettlement sites have been earmarked and are at diffe rent stages of
development. The mandate of the law – i.e., the Third Schedule to the
R&R Act, 2013 is very clear in that all the amenities to the extent they
conform to the population in each of the resettlement area s have to be
provided. In these circumstances, there may be no esca ping these
obligations. The State Government, through its appropriate agenci es
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
should draw up a comprehensive plan for creation of such amenities and
ensure that they are functional so as to complete rehabilita tion and
resettlement in a meaningful manner.
65. It was urged during the course of submissions on behalf of the
villages Ratansara by Ms. Kamalpreet Kaur, learned advocate, that the
benefits existing for individuals from Scheduled Tribes have to be
protected. It was submitted in this regard that Sunderga rh, where the
acquisition has taken place, is covered by Fifth Sc hedule to the
Constitution of India. Sections 41 and 42 of the R&R Act, 2013 read as
follows:
“41. Special provisions for Scheduled Castes and Schedule d
Tribes. – (1) As far as possible, no acquisition of land shal l
be made in the Scheduled Areas.
(2) Where such acquisition does take place it shall be done
only as a demonstrable last resort.
(3) In case of acquisition or alienation of any lan d in the
Scheduled Areas, the prior consent of the concerned Gram
Sabha or the Panchayats or the autonomous District Councils,
at the appropriate level in Scheduled Areas under th e Fifth
Schedule to the Constitution, as the case may be, s hall be
obtained, in all cases of land acquisition in such areas,
including acquisition in case of urgency, before is sue of a
notification under this Act, or any other Central Act or a St ate
Act for the time being in force:
Provided that the consent of the Panchayats or the
Autonomous Districts Councils shall be obtained in cases
where the Gram Sabha does not exist or has not been
constituted.
(4) In case of a project involving land acquisition on b ehalf
of a Requiring Body which involves involuntary displacement
of the Scheduled Castes or the Scheduled Tribes famil ies, a
Development Plan shall be prepared, in such form as may be
prescribed, laying down the details of procedure for s ettling
land rights due, but not settled and restoring titl es of the
Scheduled Tribes as well as the Scheduled Castes on the
alienated land by undertaking a special drive together with
land acquisition.
1185
(5) The Development Plan shall also contain a progr amme
for development of alternate fuel, fodder and, non- timber
forest produce resources on non-forest lands within a period
of five years, sufficient to meet the requirements of tribal
communities as well as the Scheduled Castes.
(6) In case of land being acquired from members of the
Scheduled Castes or the Scheduled Tribes, at least one- third
of the compensation amount due shall be paid to the affected
families initially as first instalment and the rest shal l be paid
after taking over of the possession of the land.
(7) The affected families of the Scheduled Tribes s hall be
resettled preferably in the same Scheduled Area in a compact
block so that they can retain their ethnic, linguistic and cultural
identity.
(8) The resettlement areas predominantly inhabited by the
Scheduled Castes and the Scheduled Tribes shall get land, to
such extent as may be decided by the appropriate Governme nt
free of cost for community and social gatherings.
(9) Any alienation of tribal lands or lands belongi ng to
members of the Scheduled Castes in disregard of the laws
and regulations for the time being in force shall be treate d as
null and void, and in the case of acquisition of such lands,
the rehabilitation and resettlement benefits shall be made
available to the original tribal land owners or land ow ners
belonging to the Scheduled Castes.
(10) The affected Scheduled Tribes, other tradition al forest
dwellers and the Scheduled Castes having fishing rights in a
river or pond or dam in the affected area shall be given fishi ng
rights in the reservoir area of the irrigation or hydel pro jects.
(11) Where the affected families belonging to the Sc heduled
Castes and the Scheduled Tribes are relocated outside o f the
district, then, they shall be paid an additional twenty-five per
cent. rehabilitation and resettlement benefits to w hich they
are entitled in monetary terms along with a one-time entitlement
of fifty thousand rupees.
42. Reservation and other benefits. – (1) All benefits, including
the reservation benefits available to the Scheduled Tribes and
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
the Scheduled Castes in the affected areas shall contin ue in
the resettlement area.
(2) Whenever the affected families belonging to the Schedule d
Tribes who are residing in the Scheduled Areas referred to in
the Fifth Schedule or the tribal areas referred to in the S ixth
Schedule to the Constitution are relocated outside those areas ,
than, all the statutory safeguards, entitlements and benefits
being enjoyed by them under this Act shall be extended to the
area to which they are resettled regardless of whet her the
resettlement area is a Scheduled Area referred to in the said
Fifth Schedule, or a tribal area referred to in the sa id Sixth
Schedule, or not.
(3) Where the community rights have been settled under the
provisions of the Scheduled Tribes and Other Tradit ional
Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2
of 2007), the same shall be quantified in monetary a mount
and be paid to the individual concerned who has bee n
displaced due to the acquisition of land in proport ion with
his share in such community rights.”
66. As is evident, the R&R Act, 2013 has nuanced application
and makes special provisions to prevent hardships to memb ers of the
Scheduled Caste and Scheduled Tribe communities. Section 41 requires
review exercises to ensure that the least possible harm be falls SC/ST
members living in the areas sought to be acquired. It also mandates that
formulation of a development plan and protective provisions invalidating
alienation of tribal lands or lands belonging to the SC/ST in disregard of
laws and regulations as null and void. Section 42, on the other hand
ensures that all benefits, including reservation benefits available to SC/
ST in the affected area shall continue in the resettlement area. In this
case, the land owners were displaced on account of the ac quisition in
favour of MCL, which is entirely involuntary. It is not in dispute that
these displaced families/land owners are residents of the Fifth Schedule
Areas.
67. As far as Section 41 goes, in the opinion of this court, given
that the acquisition notification was issued in 1988 and finalised in 1990
and even the judgment of this court indicating the methodology for
compensation determination was delivered in 2010, the question of giving
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extra consideration in terms of Section 41 does not arise. Howev er,
since the resettlement of the displaced families and their rehabilitation
have been mandated by both provision of the R&R Act, 2013 which has
application to the ongoing acquisition, as well as the R&R Policy 2006 ,
the obligation to ensure that the benefits of the displaced persons are not
put to grave and irreparable prejudice by denying them thei r status as
SC/ST, has to be ensured. This is mandated by Section 42 of the R&R
Act, 2013 which directs that whenever lands of SCs/STs are acquired
necessitating their displacement, either in terms of territories or the areas
they reside in, leading to their movement to other areas - where their
tribe or caste may not necessarily be recognised as SCs/ST - the status
which they enjoy but for the displacement has to be prese rved and
protected . In the opinion of this court, this statutory mandate and obligation
cannot be denied by the State or agency, as a matter of law. As a result
of the above discussion, it is held that:
i. The facilities and amenities set out in the Third Sche dule to
the R&R Act, 2013 have to be necessarily provided to the
displaced families involved in this case in the resettlement
areas where they are located and where they ultimately
move to; and
ii. In this case, all members of SC/ST who are forced to move
from their lands on account of the acquisition do s o
involuntarily. They are consequently entitled to the right to
be treated as members of the SC/ST. The State authorities
shall ensure that members of the families who are displaced
and whose lists are maintained by the Commission as well
as MCL shall be issued with fresh SC/ST certificates.
C. Conclusions and Directions
68. Having regard to the following discussion, it is held as follows:
i. Re point no.1 - compensation for the land acquired : cut-off
date for determining compensation for land acquired is to
be based upon the cut-off date approved by this court in
relation to village Gopalpur, i.e., September 2010. At the
same time, it is directed that since common cut-off date
has been accepted, all benefits flowing from it, including
statutory interest upon compensation and solatium, is
determinable on the basis of that cut-off date for the entire
acquisition.
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
ii. Re point no. 2 – on the applicability of the R&R Act, 2013 :
the R&R Act cannot apply prior to the date it was brought
into force i.e., before 01.01.2014. In the present case, it
applies from the date the Central Government issued a
notification bringing into force the proceedings of the First,
Second and Third Schedules to the enactment specified in
the Fourth Schedule, which in this case was the CBA Act.
The date therefore, on which the R&R Act, 2013 is
applicable from, is 28.08.2015. Additionally, the report which
was finalised before that date cannot be interfered with.
The land owners and displaced families residing in the
villages for which reports were prepared earlier tha n
28.08.2015, would not therefore be entitled to the benefits
of the R&R Act, 2013. Hence, the benefits of the R&R
Act apply to displaced families and land owners of Kiripsira,
Ratansara, Jhupuranga and Tumulia.
iii. Re point no. 3, 4 and 5:
a. It is held that the R&R Policy 2006 as amended by
the 2013 policy applies for the purpose of employment
benefits.
b. A family unit would comprise of head of family or
father, a major son, and an unmarried daughter having
regard to the definition and the note appended thereof.
In case, for some reason, the major son cannot be
given employment, and there exists a major grandson,
he would then be eligible for consideration. In other
words, two members (father and son or father and
grandson) would be eligible for employment and not
three, in addition to the unmarried daughter who is
also to be treated as separate unit.
c. This court is of the opinion that the Commission could
not reopen determinations based upon change of
policies of the State given that the benefits
adjudicated by it based on factual determinations has
crystallised. In many cases, MCL has actually
provided employment to several individuals.
Consequently, it is held that all cases that have been
adjudicated and were approved by this court cannot
be reopened.
1189
iv. Re point no. 6:
a. On the point of housing plots, it is hereby declared
and directed that the State and MCL are under an
obligation to ensure that the land acquired by it in
those areas which are to be developed, have to be
developed. The State Government shall ensure that
at least three nodal officers from the departments
concerned are deployed for facilitating this task of
coordinating with all agencies and ensuring that the
development of the plots duly takes place to enable
the Collector to make the necessary allotments within
the time indicated. These nodal officials shall be duly
empowered by the state, through appropriate
notifications to issue all necessary consequential
orders, for the implementation of resettlement and
rehabilitation measures. The Chief Secretary of the
Orissa State Government shall select the officers,
and issue the necessary notifications. Furthermore,
the State shall ensure that these officers are not
posted out, for at least 3 years, or till the task of
rehabilitation and resettlement is completed.
b. The Collector shall ensure that the plots earmarked
are duly notified for the concerned villages and land
owners by giving due publicity and adequate notice.
The views of the landowners shall be ascertained
and noted, for which purpose, adequate notice shall
be given, specifying the venue, date and time of
consultation.
c. In case any individual land owner(s) are not
interested for allotment of the plots, it is open for
them to state so. The Collector shall in such event
record their disclaimer expressly in writing and issue
a certificate. In that event the displaced family would
be entitled to a one-time cash settlement of
25 lakhs.
d. After ascertaining the number of displaced families’
entitlements, and having regard to the availability of
plots, the Collector shall conduct a draw of lots, and
if needed, more than one draw of lots, whereby plots
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
are allotted to the concerned displaced families. In
case, for any reason such plot or plots cannot be
handed over within two years, or are not available,
the leftover families so to say would be entitled to
the one-time compensation of
25 lakhs with interest
@ 7% per annum, for two years.
v. Re point no. 7:
a. The State shall ensure that all facilities and ameni ties
are developed in accordance with the Third Schedule
to the R&R Act, 2013 within three years in which
plots are handed over to the displaced families or in
any event within three years from the date of this
judgment. The necessary funding for this purpose
shall be by MCL, in addition to the State’s obligation
to spend its resources.
b. The members of the SC/ST communities shall be
entitled to the preservation and protection of their
status in view of Section 42 of the R&R Act, 2013.
Consequently, the concerned Collectors shall ensure
that appropriate caste certificates are issued in this
regard, given that land owners have been moved
involuntarily and would have to migrate to other areas.
vi. This court further directs that compensation determination
in any event shall be completed and payments made within
six months from today . The Commission shall ensure that
this task is taken up as far as possible and completed within
that time frame. Consequently, the Commission shall finalize
the reports for villages Kiripsira and Ratansara. As regards
the reports of Jhupuranga, and Tumulia, the Commission
shall complete the task of redetermining compensation within
three months. The State shall ensure that compensation in
respect of four villages is determined in accordance with
the R&R Act, 2013. Wherever compensation has not
actually been disbursed, the State shall do so within 6 months
from pronouncement of this judgment.
vii. MCL is under an obligation to ensure that employment
benefits are granted and extended and offers are made in
1191
accordance with the 2013 policy in all cases where the lists
of those who opted for employment has not been finalised.
It is clarified in this regard that wherever employment has
been obtained, the same shall not be reopened. Likewise,
the question of reopening entitlements for employment,
based upon the interpretation of this court shall not b e
reopened in case of villages where reports have been
accepted through previous orders.
viii. In the event any family undertakes that its members are
not desirous or do not wish to opt for employment, the State
shall, through the nodal officers, ensure that the disclaimer
is voluntary, and that one-time compensation indicated in
the 2006 policy or under the R&R Act, 2013 or the one-
time offer of Rs 16 lakhs by MCL, as submitted by the
learned ASG (whichever is more beneficial), is paid to the
family concerned. The Collector must ensure the same is
provided.
ix. The court hereby directs that the Commission shou ld
complete its task and that its report should be the basis for
disbursement of compensation, one-time rehabilitation
package of
25 lakhs per family as indicated above and
employment offer within one year from today . In case of
any vacancy in the Office of Chairman of the Commission,
the Chief Justice of the Orissa High Court shall nominate a
retired judge of that court. In the event of any other vacancy,
the Government of Orissa shall nominate the concerned
members. However, it is clarified that the government
nominees should not be ex-officio or part time members,
and should be of the rank and status of Additional Secretary,
with experience in the Social Welfare or Revenue
Departments at senior levels.
x. It is further directed that all concerned landowners who
have continued to occupy the lands shall vacate it upon the
deposit of compensation. MCL shall be immediately granted
possession of such lands. The Collector or the concerned
authority shall issue a certificate in this regard which shall
entitle them to the one-time rehabilitation payment or
payment in lieu of compensation or any other benefit under
MAHANADI COAL FIELDS LTD. & ANR. v. MATHIAS ORAM
& ORS. [S. RAVINDRA BHAT, J.]
the Act, according to the choice exercised by them in the
manner indicated above.
69. It is lastly directed that any fresh dispute, on ac count of
calculation of compensation, disbursement of benefits etc., would be
adjudicated by the High Court. This court will not entertain miscellaneous
application in individual cases in this regard.
70. It is hereby recorded that the directions made in this judgment,
are in the exercise of its special powers to do justice to the parties, under
Article 142 of the Constitution, since the approach adopted in the previous
orders, was to ensure that the landowners are not put to further hardship
and agony, of prolonged wait. All matters are disposed of in terms of the
above directions. There shall be no order as to costs.
Divya Pandey Matters disposed of.
(Assisted by : Adnan Khan, LCRA)