NOIDA Case: Original Land Owners/Claimants shall not be Entitled to any Statutory Benefits: Supreme Court 

land, compensation

The Supreme court ruled that the original land owners/claimants shall not be entitled to any statutory benefits including the interest payable under the Land Acquisition Act, 1894 on the enhanced amount of compensation for the period between 15.12.1993 till the respective first appeals after curing the defects were filed.

Background 

Feeling aggrieved and dissatisfied with the common judgment and order passed by the High Court of Judicature at Allahabad in respective First Appeals and other allied First Appeals by which after condoning the delay of 22 years in preferring the respective first appeals, the High Court has enhanced the amount of compensation for the lands acquired to Rs.149 per sq.yard, the New Okhla Industrial Development Authority (NOIDA) has preferred the appeals.

Arguments 

Counsel for the appellant (NOIDA), submitted that there was a huge delay of 22 years in preferring the appeals by the land owners, which ought not to have been condoned by the High Court. 

Alternatively it is submitted that in any case the acquiring body – NOIDA shall not be saddled with the liability to pay the statutory benefits and the interest for 22 years, as it would cause financial burden upon the NOIDA and it may affect the project cost.

Counsel for the land owners, submitted that as such the land owners shall be entitled to compensation at Rs.297/­ per sq.yard as determined by the Court in the case of Nanak (Deceased) through LRS. Vs. New OKHLA Industrial Development Authority and another.

Decision 

The division bench of Justice M. R. Shah and Justice M.M. Sundresh noted that in the present case the Notification under Section 4(1) of the Land Acquisition Act, 1894 was issued on 05.01.1982. 

It was further noted that the Reference Court determined the compensation at Rs.20/­ per sq.yard by judgment dated 15.12.1993. After a period of 22 years the land owners preferred the appeals before the High Court.

The bench added that the land owners have not preferred the appeals before the Court.It is the NOIDA who has preferred the appeals.

It was observed by the court that the acquiring body and the beneficiary of acquisition shall not be saddled with the liability of statutory benefits and the interest which may be available under the Land Acquisition Act, 1894 for the delayed period.In the present case the delay of 22 years can be said to be a substantial delay. 

“To saddle with the liability to pay statutory benefits and interest for the delayed period upon the beneficiary/acquiring body would be a financial burden upon the public body and it may increase the project cost which shall be against the public interests” , the court said.

It was further observed that while condoning the delay and enhancing the amount of compensation at par with other land owners, the High Court ought not to have saddled the liability upon the appellant to pay statutory benefits and the interest payable under the Land Acquisition Act, 1894 for the delayed period.

The bench partly allowed the appeals. 

Case title: New Okhla IndustrialDevelopment Authority v/s Rameshwar @ Ramesh Chandra Sharma (dead) through Legal Heir & Anr.

Citation: CIVIL APPEAL NOS.8331 ­ 8345 OF 2022

Date of Judgment: November 17, 2022

Click here to read the Order/Judgment 

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