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Supreme Court of India

D.B. BASNETT (D) THR. LRS.versusTHE COLLECTOR & ANR. EAST DISTRICT, GANGTOK, SIKKIM & ANR.

Citation
2020 INSC 239
Decided
2 March 2020
Disposal
Appeal(s) allowed

Holding

The State’s failure to produce any notification of intent to acquire land or proof of compensation under the Sikkim Land (Requisition and Acquisition) Act, 1977 makes the acquisition void, entitling the landowner to possession and damages.

Summary

The appellant, D.B. Basnett, claimed that the State of Sikkim had illegally occupied his 7.07‑acre land without complying with the procedural requirements of the Sikkim Land (Requisition and Acquisition) Act, 1977. The State contended that it had paid compensation of Rs.62,645 in 1980 and therefore possessed the land lawfully. The Supreme Court found that the State produced no notification of intent to acquire under Section 4, no records of the acquisition process, and no primary evidence of compensation payment. Consequently, the burden of proof remained unmet, rendering the acquisition void. The Court held that the appellant is entitled to possession of the land and damages for illegal occupation, while granting the State three months to re‑acquire the land through a proper notification if it wishes to retain it. The appeal was allowed.

Issues considered

  • The State complied with the procedural requirements of the Sikkim Land (Requisition and Acquisition) Act, 1977, including issuance of a notification under Section 4 and determination of compensation under Section 7.
  • The burden of proof for establishing lawful acquisition and payment of compensation lies on the State.
  • Whether the absence of a valid acquisition notice vitiates the State’s possession and entitles the landowner to possession and damages.
  • The applicability of Article 300A of the Constitution to the acquisition process.

Legislation cited

Subjects

land acquisitionprocedural due processArticle 300Acompensationpossessionmesne profitsexpropriationnotificationburden of proof

Judgment

                        [2020] 4 S.C.R. 513                              513


                  D.B. BASNETT (D) THR. LRS.                             A
                                  v.
   THE COLLECTOR & ANR. EAST DISTRICT, GANGTOK,
                  SIKKIM & ANR.
                   (Civil Appeal No. 196 of 2011)                        B
                         MARCH 02, 2020
     [SANJAY KISHAN KAUL AND K. M. JOSEPH, JJ.]
       Sikkim Land (Requisition and Acquisition) Act, 1977 – The
Respondent no.2- State sought to acquire land in the year 1980 –
                                                                         C
The appellant pleaded that the said land was not acquired in
accordance with law – Respondent no. 2 raised a defence that the
Agriculture Department had followed due process while acquiring
the land and had paid compensation of Rs.62,645/- to the father of
the original appellant – The Trial Court dismissed the suit – The
appeal filed before the High Court was also dismissed – On appeal,       D
held: The respondent-State has not produced any notification of
the intent to acquire land u/s. 4, or any other declaration – There
are no records available in respect of the acquisition process – The
respondent-State has only relied on a consent having been obtained
from the father of original appellant for acquisition and the
                                                                         E
compensation having paid – On the aspect of the compensation,
only a covering letter is available and not the actual receipt – Also,
there is no proof of the amount withdrawn from the account to pay
the compensation and the payment of compensation – There cannot
be a presumption of acquisition without following the due process
as envisages u/ss. 3(1), 4(2), 5(1) and 7(2) of the said Act – The       F
burden was on the State to prove that the process as envisaged
under the said Act was followed and the compensation was paid –
There is an absence of both primary and secondary evidence – The
respondents have failed to establish that they had acquired the land
in accordance with law and paid compensation – The appellant
                                                                         G
would, thus, be entitled to the possession of the land as also
damages for illegal use and occupation of the same by the
respondents, at least, for a period of three years prior to the notice
having been served upon them – However, the respondent State
was granted some time (three months) to analyse the consequence
                                                                         H
                                 513
514            SUPREME COURT REPORTS                      [2020] 4 S.C.R.


A     of this judgment and, in case they so desire, to acquire the land
      through a proper notification under the said Act and to take proper
      recourse in law so as to enable them to keep the land – Constitution
      of India – Art.300-A.
            Allowing the appeal, the Court
B            HELD : 1. The question is whether the process of
      acquisition had been followed in accordance with law. No
      notification has been shown to this Court of the intent to acquire
      land under Section 4 of the Sikkim Land (Requisition and
      Acquisition) Act, 1977, or any other declaration thereafter. In
C     fact what is claimed before this Court, as also before the courts
      below, is that no records are available in respect of the acquisition
      process. This obviously puts the respondent State in a difficult
      situation, which was sought to be got over by only relying on a
      consent having been obtained for acquisition and the
      compensation having been paid, as determined. On the aspect of
D     the compensation, only a covering letter is available, and not the
      actual receipt. This Court has also observed aforesaid that an
      unusual process of making payment in cash is claimed to have
      been adopted, and the amount is not an insignificant amount, if it
      is looked at the year of acquisition. This Court even gave a further
E     opportunity to the authorities to show, as to from which account
      this compensation was withdrawn by the Collector, but it appears
      that there is no proof even of the withdrawal of the amount, much
      less payment of the compensation. The letter dated 20.3.1980 of
      the father of original appellant is no doubt a no-objection to the
      acquisition of land, but provided compensation was paid
F     subsequently. This letter does not obviate the need to furnish
      proof of the process for acquisition of land or for the determination
      of compensation, under the said Act. There cannot be a
      presumption of acquisition without following the due process as
      envisaged under Sections 3(1), 4(2), 5(1) and 7(2) of the said Act.
G     The burden was on the State to prove that the process as
      envisaged under the said Act was followed and the compensation
      paid. Not an iota of evidence has been laid in support of any of
      these aspects, except the willingness of the father of the original
      appellant to permit the land to be acquired on payment of

H
    D.B. BASNETT (D) THR. LRS. v. THE COLLECTOR & ANR. EAST            515
              DISTRICT, GANGTOK, SIKKIM & ANR.


compensation, the forwarding of the amount by the Land Revenue         A
Department to the District Collector through a cheque, and
thereafter a letter from the Collector/respondent No.1 stating
that some receipt was being enclosed, acknowledging the
payment in cash (without a receipt being found). There is, thus,
absence of both primary and secondary evidence. [Para 13][520-
                                                                       B
A-G]
       2. Even though rights in land are no more a fundamental
right, still it remains a constitutional right under Article 300A of
the Constitution of India, and the provisions of any Act seeking
to divest any person from the rights in property have to be strictly
followed. [Para 14][520-G]                                             C

       3. It is also settled law that following the procedure of
Section 4(1) of the Land Acquisition Act, 1894 (akin to Section
5(1) of the said Act) is mandatory, and unless that notice is given
in accordance with the provisions contained therein, the entire
acquisition proceeding would be vitiated. An entry into the            D
premises based on such non-compliance would result in the entry
being unlawful. The law being ex-propriatory in character, the
same is required to be strictly followed. The purpose of the notice
is to intimate the interested persons about the intent to acquire
the land. These provisions, as they read, of the said Act, thus,       E
are also required to be so followed. [Para 15][521-A-B]
       4. The result of the aforesaid would be that the respondents
have failed to establish that they had acquired the land in
accordance with law and paid due compensation. The appellant
would, thus, be entitled to the possession of the land as also         F
damages for illegal use and occupation of the same by the
respondents, at least, for a period of three (3) years prior to the
notice having been served upon them. This Court is strengthened
in its observations on account of the judgment of this Court in
LAO v. M. Ramakrishna Reddy, where it was held that the owner
can be entitled to damages for wrongful use and possession of          G
land in respect of which no notification is issued under Section 4
of the Land Acquisition Act, from the date of possession till the
date such notification is finally published. [Para 19][525-A-C]

                                                                       H
516             SUPREME COURT REPORTS                     [2020] 4 S.C.R.


A           5. This Court, however, would like to give some time to
      the respondent-State to analyse the consequences of this
      judgment, and, in case they so desire, to acquire the land through
      a proper notification under the said Act, and to take proper
      recourse in law so as to enable them to keep the land. This Court
      grants three (3) months’ time from the date of the judgment for
B
      the respondent-State to make up their mind as to what they want
      to do. Would they still like to retain the land by issuing a proper
      notification, or would they like to surrender possession of the
      land. In either eventuality, the question of payment for use and
      occupation would still arise, which will have to be determined in
C     accordance with law. Mesne profits would be determined by a
      Court Commissioner, to be appointed by the trial court, as a relief
      in that behalf has been sought in the plaint itself. [Para 20][525-
      D-E]
              Vidya Devi v. The State of Himachal Pradesh & Ors.
D             (Judgment dated 08.01.2020 in C.A.Nos. 60-61 of
              2020 decided by the Supreme Court of India) – relied
              on.
              N. Padmamma & Ors. v. S. Ramakrishna Reddy & Ors.
              (2008) 15 SCC 517; Narinderjit Singh & Ranjit Singh
E             & Ors. v. State of U.P. & Ors., etc. (1973) 1 SCC 157;
              Lao v. M. Ramakrishna Reddy (2011) 11 SCC 648 –
              referred to.
                              Case Law Reference
      [2008] 9 SCR 535                   referred to           Para 14
F
      [1973] 2 SCR 698                   referred to           Para 15
      (2011) 11 SCC 648                  referred to           Para 19
              CIVIL APPELLATE JURISDICTION: Civil Appeal No. 196 of
      2011.
G           From the Judgment and Order dated 29.05.2008 of the High Court
      of Sikkim in RFA No. 2 of 2007.
            A.K. Upadhyaya, Sr. Adv., Manish Goswami and Rameshwar
      Prasad Goyal, Advs. for the Appellant.

H           Raghvendra Kumar, Anand Kumar Dubey and Narendra Kumar,
      Advs. for the Respondents.
     D.B. BASNETT (D) THR. LRS. v. THE COLLECTOR & ANR. EAST                  517
               DISTRICT, GANGTOK, SIKKIM & ANR.


      The Judgment of the Court was delivered by                              A
      SANJAY KISHAN KAUL, J.
       1. The Agriculture Department of the Government of Sikkim
(respondent No.2) sought to acquire, in the year 1980, land measuring
8.36 acres, located in Dundung Block, Sang in East Sikkim for the
purpose of building the Progeny Orchard Regional Centre. The land             B
was recorded in two names – 1.29 acres in the name of the Maharaja of
Sikkim and 7.07 acres in the name of Man Bahadur Basnett, father of
the original appellant. The latter land is subject matter of dispute in the
present proceedings.
      2. The land in question is partially fenced, with a farm, some          C
barracks and office. Late Man Bahadur Basnett passed away in the
year 1991 whereupon the property fell to the share of the appellant in
the present proceedings (now represented by his two sons). It may be
noticed that Man Bahadur Basnett was survived by seven (7) children,
but there is no dispute inter se the siblings in respect of the claim of      D
D.B. Basnett over suit property.
      3. It is the case of the late appellant that when he visited the suit
property in March, 2002, he found that the respondents had wrongly
encroached and trespassed on the same, using it as an agricultural farm.
He claims to have lived away from Gangtok earlier and thus, served a          E
notice on 5.4.2002 under Section 80 of the Code of Civil Procedure,
1908 notifying them against the alleged trespass and seeking possession.
There was no response to the same and, thus, the suit was filed before
the Court of District Judge (E&N), Gangtok, Sikkim, being the Title Suit
No.6/2004 (renumbered) on 9.12.2002.
                                                                              F
       4. The sum and substance of the claim made was that the
procedure envisaged under the Sikkim Land (Requisition and Acquisition)
Act, 1977 (hereinafter referred to as the ‘said Act’) had not been invoked
or followed. Suffice to say that the process is similar to the Land
Acquisition Act, 1894 (hereinafter referred to as the ‘1894 Act’), i.e.,
notification required under Section 4 of the Act for acquisition of land,     G
opportunity to interested persons to file claims under Section 5 of the
Act and the determination of the amount of compensation under Section
7 of the Act. The plea raised was that no notice of acquisition was ever
published, nor any process followed for the same.
                                                                              H
518            SUPREME COURT REPORTS                          [2020] 4 S.C.R.


A            5. Respondent No. 2 sought to raise a defence to the suit of the
      bar of limitation. It is their say that the Agriculture Department had
      followed due process while acquiring the land in 1980 and had paid
      compensation of Rs.62,645 to late Man Bahadur Basnett through the
      Land Revenue Department. Thus they were enjoying peaceful possession
      of the subject matter property as a consequence thereof. The claim of
B
      the late appellant that rent was being paid to the Government was stated
      not to be in the knowledge of the Agriculture Department.
             6. The trial court dismissed the suit vide judgment and order dated
      31.10.2006, both on grounds of limitation as well as substantive merits.
      The consideration of merits was based on the fact that the original
C     stamped receipts of payment of compensation had been taken note of in
      the record of proceedings, though the actual receipt was not available.
      The correspondence exchanged even inter-departmentally was stated
      to point to the compensation being paid, as also a letter which had been
      sent by late Man Bahadur Basnett, signifying his consent to transfer suit
D     property upon payment of due compensation.
             7. On appeal being filed and registered before the High Court of
      Sikkim, being RFA No.2/2007, the same was examined on both issues
      and was dismissed on 29.5.2008. However, insofar as the aspect of
      limitation was concerned, the High Court disagreed with the findings of
E     the trial court by relying upon Article 65 of the Limitation Act, 1963,
      which provided for a period of twelve (12) years in case of adverse
      possession. Such a case of adverse possession was opined to be difficult
      for the State Government to plead and in any case, on facts, had never
      been pleaded. It is also recorded that no notification under the said Act
      had been produced, nor was any record produced in that behalf. The
F     actual signed and stamped receipts were also not placed on record. The
      inconsistent stand of the Government claiming that they had acquired
      the land while still collecting land revenue for the same was also noted.
      These aspects were sought to be balanced with the letter dated 20.3.1980,
      of late Man Bahadur Basnett, who had given his no objection to the
G     acquisition if compensation was paid to him, and a letter dated 2.4.1980
      of the Land Revenue Department forwarding the compensation to the
      District Collector for payment to late Man Bahadur Basnett. The land
      revenue records were stated not to be of such significance in the face of
      these documents, but sympathising with the predicament of the appellant
      and recognising the weaker position of the Government in the entire
H
    D.B. BASNETT (D) THR. LRS. v. THE COLLECTOR & ANR. EAST                     519
  DISTRICT, GANGTOK, SIKKIM & ANR. [SANJAY KISHAN KAUL, J.]


dispute, it was observed that the Government had no justification to keep       A
holding on to the land revenue as collected from the appellant. Since no
claim was made in that behalf, it was directed that the same should be
refunded, if so asked for by the appellant, more so as the Government
has to act as a “model litigant.”
        8. In the SLP filed against the impugned order, leave was granted       B
on 7.1.2011. The matter was, however, taken up for hearing for the first
time on 2.5.2019. On hearing learned counsel for the parties, at the
request of the learned counsel for the respondents, time was given to
scrutinize the record and show to the Court how a sum of Rs. 62,645
was withdrawn by the Collector in cash (as alleged and as contended),
and which document(s) evidenced payment to late Man Bahadur Basnett.            C
It was observed that this was the least expected considering that the
respondents claimed to have lost all records of acquisition proceedings
and none of the notifications were available. The order ended by observing
that a failure to show the same would necessitate the State Government
to acquire the land through fresh notification, if it wants to keep the land.   D
       9. An affidavit was filed in August, 2019, which was analysed on
27.8.2019, and it was found that there was neither any proof of the
Collector having withdrawn cash to the tune of Rs.62,645 from the
account, nor any receipt from late Man Bahadur Basnett acknowledging
the payment, except the stated covering letter for the receipt. In the          E
conspectus of these facts, in order to work out a mutually agreed
settlement, the dispute was referred to the Mediation Centre annexed to
the High Court of Sikkim. Unfortunately this also did not produce any
result, a failure report was received and, thus, the remaining arguments
were heard.
                                                                                F
       10. We may notice that though leave was granted, no cross-
objections were filed by the respondents on any aspect including on the
finding of limitation.
       11. Be that as it may, the fact remains, as noticed by the High
Court, that it is not the case of the respondents that they had adverse         G
possession, but that they had acquired the land through due process and
had paid compensation for the same. We agree with the High Court that
there is no plea even of adverse possession by the respondent. We are
not to be detained by the same in this appeal.
      12. We are in complete agreement with this view and for this
                                                                                H
reason also the plea of adverse possession really does not survive.
520                SUPREME COURT REPORTS                          [2020] 4 S.C.R.


A             13. That brings us to the question whether the process of acquisition
      had been followed in accordance with law. No notification has been
      shown to us of the intent to acquire land under Section 4, or any other
      declaration thereafter. In fact what is claimed before us, as also before
      the courts below, is that no records are available in respect of the
      acquisition process. This obviously puts the respondent State in a difficult
B
      situation, which was sought to be got over by only relying on a consent
      having been obtained for acquisition and the compensation having been
      paid, as determined. On the aspect of the compensation, only a covering
      letter is available, and not the actual receipt. We have also observed
      aforesaid that an unusual process of making payment in cash is claimed
C     to have been adopted, and the amount is not an insignificant amount, if
      we look at the year of acquisition. We even gave a further opportunity to
      the authorities to show, as to from which account this compensation was
      withdrawn by the Collector, but it appears that there is no proof even of
      the withdrawal of the amount, much less payment of the compensation.
      The letter dated 20.3.1980 of late Man Bahadur Basnett is no doubt a
D
      no-objection to the acquisition of land, but provided compensation was
      paid subsequently. This letter does not obviate the need to furnish proof
      of the process for acquisition of land or for the determination of
      compensation, under the said Act. There cannot be a presumption of
      acquisition without following the due process as envisaged under Sections
E     3(1), 4(2), 5(1) and 7(2) of the said Act. The burden was on the State to
      prove that the process as envisaged under the said Act was followed
      and the compensation paid. Not an iota of evidence has been laid in
      support of any of these aspects, except the willingness of late Man
      Bahadur Basnett to permit the land to be acquired on payment of
      compensation, the forwarding of the amount by the Land Revenue
F
      Department to the District Collector through a cheque, and thereafter a
      letter from the Collector/respondent No.1 stating that some receipt was
      being enclosed, acknowledging the payment in cash (without a receipt
      being found). There is, thus, absence of both primary and secondary
      evidence.
G            14. We may note that even though rights in land are no more a
      fundamental right, still it remains a constitutional right under Article 300A
      of the Constitution of India, and the provisions of any Act seeking to
      divest any person from the rights in property have to be strictly followed1.

      1
H         N. Padmamma & Ors. v. S. Ramakrishna Reddy &Ors. (2008) 15 SCC 517
      D.B. BASNETT (D) THR. LRS. v. THE COLLECTOR & ANR. EAST                             521
    DISTRICT, GANGTOK, SIKKIM & ANR. [SANJAY KISHAN KAUL, J.]


       15. It is also settled law that following the procedure of Section                 A
4(1) of the Land Acquisition Act, 18942 (akin to Section 5(1) of the said
Act) is mandatory, and unless that notice is given in accordance with the
provisions contained therein, the entire acquisition proceeding would be
vitiated. An entry into the premises based on such non-compliance would
result in the entry being unlawful3. The law being ex-propriatory in
                                                                                          B
character, the same is required to be strictly followed. The purpose of
the notice is to intimate the interested persons about the intent to acquire
the land. These provisions, as they read, of the said Act, thus, are also
required to be so followed.
       16. We find a detailed discussion about the law as it evolved and
the rationale for the said purpose in Vidya Devi4 of which the relevant                   C
paragraphs read as under:
       “10.1. The Appellant was forcibly expropriated of her property in
       1967, when the right to property was a fundamental right
       guaranteed by Article 31 in Part III of the Constitution.
                                                                                          D
             Article 31 guaranteed the right to private property (The
       State of West Bengal v. Subodh Gopal Bose and Ors. AIR
       1954 SC 92), which could not be deprived without due process
       of law and upon just and fair compensation.
       10.2. The right to property ceased to be a fundamental right by                    E
       the Constitution (Forty Fourth Amendment) Act, 1978, however,
       it continued to be a human right (Tukaram Kana Joshi & Ors. v.
       M.I.D.C. & Ors. (2013) 1 SCC 353) in a welfare State, and a
       Constitutional right under Article 300A of the Constitution. Article
       300 A provides that no person shall be deprived of his property
       save by authority of law. The State cannot dispossess a citizen                    F
       of his property except in accordance with the procedure
       established by law. The obligation to pay compensation, though
       not expressly included in Article 300A, can be inferred in that
       Article (K T Plantation Pvt. Ltd. v. State of Karnataka (2011)
       9 SCC 1).                                                                          G
             To forcibly dispossess a person of his private property,
       without following due process of law, would be violative of a
2
  Publication of Preliminary Notification and Powers of Officers thereupon.
3
  Narinderjit Singh & Ranjit Singh & Ors. v. State of U.P. &Ors., Etc. (1973) 1 SCC 157
4
  (Vidya Devi v. The State of Himachal Pradesh & Ors., Judgment dated 08.01.2020 in       H
C.A. Nos. 60-61 of 2020 decided by the Supreme Court of India)
522            SUPREME COURT REPORTS                            [2020] 4 S.C.R.


A           human right, as also the constitutional right under Article 300 A of
            the Constitution.
                  Reliance is placed on the judgment in Hindustan
            Petroleum Corporation Ltd. v. Darius Shapur Chennai
            (2005) 7 SCC 627,wherein this Court held that:
B                  “ 6. … Having regard to the provisions contained in Article
                   300-A of the Constitution, the State in exercise of
                   its power of “eminent domain” may interfere with the
                   right of property of a person by acquiring the same but
                   the same must be for a public purpose and
C                  reasonable compensation therefor must be paid.”
                                                  (emphasis originally supplied)
            In N. Padmamma v. S. Ramakrishna Reddy (2008) 15 SCC
            517, this Courtheld that:

D           “21. If the right of property is a human right as also a constitutional
            right, the same cannot be taken away except in accordance
            with law. Article 300-A of the Constitution protects such
            right. The provisions of the Act seeking to divest such right,
            keeping in view of the provisions of Article 300-A of the
            Constitution of India, must be strictly construed.”
E
                                                  (emphasis originally supplied)
             In Delhi Airtech Services Pvt. Ltd. & Ors. v. State of U.P.&
      Ors. (2011) 9 SCC 354, this Court recognized the right to property as a
      basic human right in the following words:
F           “30. It is accepted in every jurisprudence and by different political
            thinkers that some amount of property right is an indispensable
            safeguard against tyranny and economic oppression of the
            Government. Jefferson was of the view that liberty cannot long
            subsist without the support of property.” Property must be
            secured, else liberty cannot subsist” was the opinion of John
G           Adams. Indeed the view that property itself is the seed bed which
            must be conserved if other constitutional values are to
            flourish is the consensus among political thinkers and jurists.”
                                                  (emphasis originally supplied)

H
    D.B. BASNETT (D) THR. LRS. v. THE COLLECTOR & ANR. EAST                 523
  DISTRICT, GANGTOK, SIKKIM & ANR. [SANJAY KISHAN KAUL, J.]


     In Jilubhai Nanbhai Khachar v. State of Gujarat, (1995) Supp.          A
1 SCC 596 this Court held as follows:
      “48. …In other words, Article 300-A only limits the powers of the
      State that no person shall be deprived of his property save by
      authority of law. There has to be no deprivation without any
      sanction of law. Deprivation by any other mode is not acquisition     B
      or taking possession under Article 300-A. In other words,
      if there is no law, there is no deprivation.”
                                          (emphasis originally supplied)
      10.3. In this case, the Appellant could not have been forcibly
      dispossessed of her property without any legal sanction, and          C
      without following due process of law, and depriving her payment
      of just compensation, being a fundamental right on the date of
      forcible dispossession in 1967.
      10.4. The contention of the State that the Appellant or
      her predecessors had “orally” consented to the acquisition is         D
      completely baseless. We find complete lack of authority and legal
      sanction in compulsorily divesting the Appellant of her property
      by the State.
      10.5. In a democratic polity governed by the rule of law, the State
      could not have deprived a citizen of their property without the       E
      sanction of law. Reliance is placed on the judgment of this Court
      in Tukaram Kana Joshi &Ors. v. M.I.D.C. &Ors. (2013) 1
      SCC 353 wherein it was held that the State must comply with the
      procedure for acquisition, requisition, or any other
      permissible statutory mode. The State being a welfare State           F
      governed by the rule of law cannot arrogate to itself a status
      beyond what is provided by the Constitution.
      This Court in State of Haryana v. Mukesh Kumar held that the
      right to property is now considered to be not only a constitutional
      or statutory right, but also a human right. Human rights have
                                                                            G
      been considered in the realm of individual rights such as
      right to shelter, livelihood, health, employment, etc. Human rights
      have gained a multi-faceted dimension.”
      17. There is also a discussion in the judgment on the aspect of
delay and laches, which is as under:
                                                                            H
524            SUPREME COURT REPORTS                            [2020] 4 S.C.R.


A           “10.7. The contention advanced by the State of delay and laches
            of the Appellant in moving the Court is also liable to be
            rejected. Delay and laches cannot be raised in a case of a continuing
            cause of action, or if the circumstances shock the judicial
            conscience of the Court. Condonation of delay is a matter of judicial
            discretion, which must be exercised judiciously and reasonably in
B
            the facts and circumstances of a case. It will depend upon the
            breach of fundamental rights, and the remedy claimed, and when
            and how the delay arose. There is no period of limitation prescribed
            for the courts to exercise their constitutional jurisdiction to do
            substantial justice.
C           In a case where the demand for justice is so compelling,
            a constitutional Court would exercise its jurisdiction with a
            view to promote justice, and not defeat it (P.S. Sadasivaswamy
            v. State of T.N. (1975) 1 SCC 152).
            In Tukaram Kana Joshi &Ors. v. M.I.D.C. &Ors. (2013) 1
D           SCC 353, this Court while dealing with a similar fact situation,
            held as follows:
               “There are authorities which state that delay and laches
               extinguish the right to put forth a claim. Most of these authorities
               pertain to service jurisprudence, grant of compensation for
E              a wrong done to them decades ago, recovery of statutory
               dues, claim for educational facilities and other categories of
               similar cases, etc. Though, it is true that there are a few
               authorities that lay down that delay and laches debar
               a citizen from seeking remedy, even if his fundamental
F              right has been violated, under Article 32 or 226 of the
               Constitution, the case at hand deals with a different scenario
               altogether. Functionaries of the State took over possession of
               the land belonging to the Appellants without any sanction of
               law. The Appellants had asked repeatedly for grant of the
               benefit of compensation. The State must either comply
G              with the procedure laid down for acquisition, or requisition,
               or any other permissible statutory mode.”
                                                  (emphasis originally supplied)
            18. The aforesaid legal principles do not leave the respondents
      with any defence in the given facts of the case.
H
       D.B. BASNETT (D) THR. LRS. v. THE COLLECTOR & ANR. EAST                   525
     DISTRICT, GANGTOK, SIKKIM & ANR. [SANJAY KISHAN KAUL, J.]


        19. The result of the aforesaid would be that the respondents            A
have failed to establish that they had acquired the land in accordance
with law and paid due compensation. The appellant would, thus, be entitled
to the possession of the land as also damages for illegal use and
occupation of the same by the respondents, at least, for a period of three
(3) years prior to the notice having been served upon them. We are
                                                                                 B
strengthened in our observations on account of the judgment of this Court
in LAO v. M. Ramakrishna Reddy,5where it was held that the owner
can be entitled to damages for wrongful use and possession of land in
respect of which no notification is issued under Section 4 of the Land
Acquisition Act, from the date of possession till the date such notification
is finally published.                                                            C
       20. We are conscious that the land is being used by the respondent-
State through respondent No.2 Department. That, however, does not
give such a license to the State Government. We had endeavoured to
refer the matter for mediation, to find an amicable solution, but that did
not fructify. We, however, would like to give some time to the respondent-       D
State to analyse the consequences of this judgment, and, in case they so
desire, to acquire the land through a proper notification under the said
Act, and to take proper recourse in law so as to enable them to keep the
land. We grant three (3) months’ time from the date of the judgment for
the respondent-State to make up their mind as to what they want to do.
Would they still like to retain the land by issuing a proper notification, or    E
would they like to surrender possession of the land. In either eventuality,
the question of payment for use and occupation would still arise, which
will have to be determined in accordance with law. Mesne profits would
be determined by a Court Commissioner, to be appointed by the trial
court, as a relief in that behalf has been sought in the plaint itself.          F
      21. In view of the aforesaid order, the alternative direction passed
by the appellate court to refund the land revenue in case of a claim
would not arise.
       22. The appeal is accordingly allowed, leaving the parties to bear
their own costs.                                                                 G


Ankit Gyan                                                     Appeal allowed.


5
    (2011) 11 SCC 648                                                            H


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