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Supreme Court of India

SWAIKA PROPERTIES PVT. LTD. AND ANR.versusSTATE OF RAJASTHAN AND ORS.

Citation
2008 INSC 149
Decided
7 February 2008
Disposal
Dismissed

Holding

A writ petition filed after possession of the land has been taken and the acquisition award has become final is not maintainable, and the appeal is dismissed.

Summary

The appellants' land was notified for acquisition under the Rajasthan Urban Improvement Act, 1959 in 1975 and a declaration was made in 1984 directing them to surrender possession. They first approached the Calcutta High Court, which was stayed by the Supreme Court on jurisdictional grounds. Possession was taken in 1987 and an award was passed in 1989. The appellants later filed a writ petition in the Rajasthan High Court challenging the acquisition, but the petition was dismissed and the dismissal affirmed on appeal. The Supreme Court held that a writ petition filed after possession has been taken and the award has become final is not maintainable, citing delay and laches. Consequently, the appeal was dismissed.

Issues considered

  • Whether a writ petition challenging a land acquisition is maintainable after possession has been taken and the award is final
  • Whether the delay and laches bar the appellants from seeking relief
  • Whether the jurisdiction of the High Court to entertain the writ petition is proper

Legislation cited

Subjects

land acquisitionurban improvementwrit petitiondelaylachespossessioncompensation enhancementjurisdictionArticle 226

Judgment

     ~~

                                      [2008) 2 S.C.R. 521


   t                    SWAIKA PROPERTIES PVT. LTD. AND ANR.                     A
                                              II.
                            STATE OF RAJASTHAN AND ORS.
                              (Civil Appeal No.1081 of 2008)
                                    FEBRUARY 7, 2008
                                                                                 B
                     [ASHOK BHAN AND DALVEER BHANDARI, JJ.]

         ,,,j.
                      Urban development:
                       Rajasthan Urban Improvement Act, 1959 - ss. 52(1),
                 52(2), 52(5) - Writ Petition challenging notification for       c
                 acquisition of land after possession was taken over and award
                 became final - Maintainability of - Held: Not maintainable on
                 the ground of delay and /aches - Land Acquisition Act, 1894
                 - ss. 4, 18 - Delay and /aches.
                                                                                 D
                       On 23.6.1975, a notice was issued under s.52(2) of
                 the Rajasthan Urban Improvement Act, 1959, for acquiring
\L .A            the land of the appellants for improvement and for
                 extension of Jaipur Town. The appellants filed objections
                 to the acquisition of their land which were rejected by the
                 Land Acquisition Officer. On 8.2.1984, the Government E
                 issued declaration under s.52(1 ). Pursuant to the said
                 declaration, notice dated 17/18.2.1984 under s.52(5) was
                 issued asking the appellants to hand over possession of
                 the land. After these notices, the appellants filed writ
                 petition in Calcutta High Court. High Court granted stay F
  .""            of the acquisition proceeding restraining authorities from
                 taking possession of the land. The respondents filed SLP
                 before this Court. This Court did not go into the merits of
                 the case and while granting leave, set aside the orders of
                 Calcutta High Court and held that the Calcutta High Court G
 ..-: .....
                 did not have territorial jurisdiction to entertain writ petition
                 in respect of land situated in the State of Rajasthan.
                      On 17.2.1987, possession of the land in question
                                              521                                H
                                                                      ~
                                                                                     •
    522      SUPREME COURT REPORTS                 [2008] 2 S.C.R.


A allegedly was taken by the respondents and the same was                 f
  handed over to Jaipur Development Authority. However,
  according to the appellants, possession was not taken.
  The appellants filed writ petition in the High Court of
  Rajasthan but withdrew it with liberty to file a fresh writ
B petition. On 26.6.1989, the Land Acquisition Officer passed
  an award. In the meantime, the appellants filed a writ
  petition seeking quashing of Notification dated 8.2.1984
                                                                      ~
  and notices dated 17/18.2.2007. Single Judge of High
  Court dismissed the writ petition holding that there was a
c genuine public purpose behind initiating the acquisition
  proceedings. On appeal, Division Bench of High Court
  held that since the appellants had filed an application
  under s.18 of the Land Acquisition Act, 1894 for
  enhancement of the compensation, they were not entitled
  to the relief sought for in the writ petition. Hence the
D
  present appeal.                                                                    •
                                                                                     ~I
          Dismissing the appeal, the Court                                           •
                                                                              >-A
          HELD: The appellants had filed a writ petition before
    the Calcutta High Court challenging the acquisition
E   proceedings, but the said writ petition was dismissed by
    this Court on 8.4. 1985 holding that the Calcutta High Court
    did not have the territorial jurisdiction to entertain the writ
    petition. Thereafter, till 1987 the appellants did not                               ,.
    challenge the acquisition proceedings and the writ
F   petition was filed by it before the Rajasthan High Court               ..,, .
    which had the territorial jurisdiction in the matter and the
    same was withdrawn which was again filed within the next
    four months thereof, meaning thereby, during the
    interregnum the appellants slept over the matter. However,
G   the appellants have not been able to give any explanation
    for the same. Insofar as the contention regarding the                 -+- ,.._
    possession having not been taken is concerned, the
    respondents submitted that the possession of the land
    in dispute has already been taken. Be that as it may, the
H   award in respect of the land having become final, the State
              SWAIKA PROPERTIES PVT. LTD. AND ANR. v. STATE              523
                OF RAJASTHAN AND ORS. [ASHOK BHAN, J.]

              Government is vested with the powers to take possession A
              of the land concerned and, therefore, there is no reason
              to disbelieve the claim of the State Government that the
              possession had been taken before the filing of the writ
              petition. Moreover, the appellants sought enhancement
              of compensation by filing reference application under s.18 B
              of the Land Acquisition Act, 1894. Simultaneously, the
              appellants filed writ petition before the High Court of
              Rajasthan after passing of the award. A writ petition
              challenging the notification for acquisition of land, if filed
              after the possession having been taken, is not
                                                                             ~
              maintainable. The writ petition having been filed after
'             taking over the posses~ion and the award having become
              final, the same deserves to be dismissed. on the gr~~nd
              of delay and laches. [Paras 13,17] [527~A-F; 529-G; 53 -A]
                   Municipal Corporation of Greater Bombay v. Industrial 0
              Development Investment Co. Pvt. Ltd. & Ors. (1996) 11 SCC
              501; State of Rajasthan & Ors. v. D.R. Laxmi & Ors. (1996) 6
    ..   .A   SCC 445; Municipal Council Ahmednagar & Anr. v. Shah
              Hyder Beig & Ors. (2000) 2 SCC 48; C. Padma v. Dy. Secy. to
              the Govt. of T.N. (1997) 2 sec 627 - relied on.              ~
                   CIVILAPPELLATE JURISDICTION: Civil Appeal No. 1081
              of 2008.
                   From the final Judgment and Order dated 4.9.2006 of the
              High Court of Judicature for Rajasthan, Jaipur Bench, Jaipur in   F
              D.B. Special Appeal (Writ) No. 134/2006.
                    Dr.AM. Singhvi, Dr. Manish Singhvi and P.V. Yogeswaran
              for the Appellants.
                   Bharat Vyas, A.A.G., C.S. Vaidyanathan, Manish Kumar
              and Ansar Ahmad Chaudhary for the Respondents .
                                                                        G
     ... t
                   The Judgment of the Court was delivered by
                   ASHOK BHAN, J. 1. Leave granted.
                   2. Challenge in the present appeal is to the order passed H
                                                                        ~
                                                                                              /
    524       SUPREME COURT REPORTS                  [2008) 2 S.C.R.


A   on 04th September 2006 in D.B. Special Appeal (W) No.134 of
    2006 by a Division Bench of the High Court of Rajasthan
    dismissing the appeal filed by the appellants whereby the
    Division Bench has upheld the judgment and order passed by
    a learned Single Judge of the same High Court dismissing the
8   writ petition filed by the appellants thereby upholding the
    acquisition proceedings in respect of the land of the appellants.
          3. In order to appreciate the grievance of the appellants,    ...
    facts leading to the filing of the appeal are necessary to be
    indicated.
c
        4. Notice under Section 52(2) [which is equivalent to
  Section 4 of the Land Acquisition Act, 1a94] of the Rajasthan
  Urban Improvement Act 1959 (for short, 'the Act') was issued
  on 25th June 1975 for acquiring the land of the appellants bearing
  Khasra No.3a3 measuring 14 bighas and 16 biswas situated
D
  at Madrampura, Jaipur, Rajasthan. As per the said notice, land
  was sought to be acquired for improvement and purposes of
  Jaipur Town - extension of Civil Lines Area for construction of              ~       ....
  buildings. On 23rd August 1975, another notice was issued by
  the State under Section 52(2) of the Act indicating the purpose
E of acquisition of land for extension of civil lines and planning of
  housing scheme. Appellants, on oath September 1975, filed
  objections to the acquisition of their land. The appellants also                 /


  submitted their representation from time to time. The Land
  Acquisition Officer, however, rejected the objections. On oath
F February 19a4, the Government issued declaration under
  Section 52(1) of the Act [which is equivalent to Section 6 of the
                                                                              r
  Land Acquisition Act, 1a94]. Pursuant to the said declaration,
  notice under Section 52(5) of the Act was issued asking the
  appellants to hand over possession of the land.
G
        5. After these notices were issued, the appellants filed Writ
  Petition No.5972 of 19a4 before the High Court of Calcutta. A               + .. ·''


                                                                                              -
  learned Single Judge of the High Court of Calcutta, while issuing
  rule nisi, granted stay of the acquisition proceedings and                                      )



  restrained the respondents from taking possession of the land.
H
      ~
             SWAIKA PROPERTIES PVT. LTD. AND ANR. v. STATE                525
               OF RAJASTHAN AND ORS. [ASHOK BHAN, J.]

             Aggrieved against the said order the respondents filed Special     A
             Leave Petition before this Court, inter alia, challenging the
             jurisdiction of the Calcutta High Court to entertain the writ
             petition. Since the Special Leave Petition was filed against an
             interim order, this Court did not go into the merits of the case
             and while granting leave, by order dated oath April 1985, set      ij
             aside the order of the Calcutta High Court and held that the
             Calcutta High Court did not have the territorial jurisdiction to
             entertain the writ petition in respect of a land situated in the
             State of Rajasthan. Thus, the proceedings before the Calcutta
             High Court came to an end.                                         c
                  6. On 17.02.1987, possession of the land in question is
             alleged to have been taken by the respondents and the same
             was handed over to Jaipur Development Authority. However,
             according to the the appellants, possession was not taken.
                                                                                D
                  7. The appellants filed Writ Petition No.1507 of 1987 in
             the High Court of Rajasthan which was withdrawn by them on
.,. .A
             1oth March 1989 with liberty to file a fresh writ petition .
                  8. On 25th June 1989, the Land Acquisition Officer passed
             the award and forwarded the same for approval to the State         E
             Government. According to the respondents, the State
             Government accorded its approval on 29th July 1989 which was
             declared by the Land Acquisition Officer on 30th July 1989 in
             accordance with law.
                   9. In the meantime, the appellants filed S.B.Civil Writ F
             Petition No.2911of1989 seeking quashing of Notification dated
             oath February 1984 and also notice dated 17th/181h February
             2007 by which the possession is alleged to have been taken.
             One of the objections taken by the respondents before the High
             Court was that the writ petition could not be entertained after G
  ~      ~   taking over of the possession of the land and handing over the
             same to Jaipur Development Authority and the award having
             been passed in respect of the said land in accordance with \aw.
             It was also alleged that the award was not the subject-matter of
             the writ petition. It was also pointed out that the appellants were H'
                                                                          -~
                                                                                            \•'------



                                                                                        ~
    526       SUPREME COURT REPORTS                    [2008] 2 S.C.R.


A simultaneously pursuing Reference Application for enhancement
  of compensation. Ultimately, a learned Single Judge of the High
  Court of Rajasthan, accepting the submissions of the
  respondents, dismissed the writ petition holding that the there
  was a genuine public purpose behind initiating the acquisition
B proceedings.
         10. Being aggrieved, the appellants carried the matter in
    appeal before.the Div1sion Bench of the High Court of Rajasthan.
    The Division Bench, agreeing with the view taken by the learned
    Single Judge, dismissed the appeal and held that since the
c   appellants had filed an application under Section 18 of the Land
    Acquisition Act, 1894 for enhancement of the compensation they
                                                                                      ';;
    are not entitled to the relief sought for in the writ petition. The
    said order is under challenge before us.
        11. A preliminary objection has been taken by the
D
  respondents to the effect that the appeal is liable to be dismissed
  on the ground of the delay on the part of the appellants to
  challenge the acquisition proceedings. It is also submitted that
                                                                               ~·
  the acquisition of the land cannot be challenged after taking
  over of the possession and after the award having become final.
E In support of this submission, the respondents have relied upon
  a number of judgments of this Court.
          12. Counsel for the appellants, however, strenuously
  contended that there was no delay on the part of the appellants
F in filing the writ petition challenging the acquisition proceedings.
  He submitted that soon after the notice under Section 52(5) was
  issued by by the respondents, the appellants filed writ petition
  before the High Court of Calcutta which stood dismissed
  pursuant to an order of this Court, as noted above. Thereafter
  the appellants filed another writ petition before the High Court
G
  of Rajasthan which was withdrawn. Within a period of four
  months thereof, i.e., on 05th July 1989, another writ petition           _., ....
  bearing No.2911 of 1989 was filed. Counsel also submitted that
  these acts of the appellants demonstrate that there was no delay
  on the part of the appellants to seek redressal of their grievance.
H
 ~

              SWAIKA PROPERTIES PVT. LTD. AND ANR. v. STATE                     527
                OF RAJASTHAN AND ORS. [ASHOK BHAN, J.]
   -'t        It was contended that actual possession of the land was never A
              taken by the respondents on 17th119th February 1987.
                     13. We do not find any substance in the submissions of
              the counsel for the appellants. No doubt, the appellants had filed
              a writ petition before the Calcutta High Court challenging the
              acquisition proceedings, but the said writ petition was                   B
              dismissed by this Court on oath April 1985 holding that the
              Calcutta High Court did not have the territorial jurisdiction to
         -j
              entertain the writ petition. Thereafter, till 1987 the appellants did
              not challenge the acquisition proceedings and the writ petition
              was filed by it before the Rajasthan High Court which had the             c
              territorial jurisdiction in the matter and the ~ame was withdrawn
              which was again filed within the next four months thereof,
              meaning thereby, during the interregnum the appellants slept
              over the matter. However, the appellants have not been able to
              give any explanation for the same. Insofar as the contention              D
              regarding the possession having not been taken is concerned,
              the respondents submit that the possession of the land in
.,. A         dispute has already been taken. Be that as it may, the award in
              respect of the land having become final, the State Government
              is vested with the powers to take possession of the land                  E
              concerned and, therefore, there is no reason to disbelieve the
              claim of the State Government that the possession had been
              taken before the filing of the writ petition. Moreover, the
              appellants sought enhancement of compensation by filing
              reference application under Section 18 of the Land Acquisition            F
--,.          Act, 1894. Simultaneously, the appellants filed writ petition
              before the High Court of Rajasthan after passing of the award.
              This Court has repeatedly held that a writ petition challenging
              the notification for acquisition of land, if filed after the possession
              having been taken, is not maintainable. In the case of Municipal
                                                                                        G
              Corporation of Greater Bombay v. Industrial Development
 .....        Investment Co. Pvt. ltd. & Ors. (1996) 11 SCC 501 where K.
              Ramaswamy, J. speaking for a Bench consisting of His Lordship
              and S.B. Majmudar, J. held:
                    "It is thus well-settled law that when there is inordinate          H
    528       SUPREME COURT REPORTS                    [2008] 2 S.C.R.


A         delay in filing the writ petition and when all steps taken in
          the acquisition proceedings have become final, the Court
          should be loath to quash the notifications. The High Court
          has, no doubt, discretionary powers under Article 226 of
          the Constitution to quash the notification under Section
B         4(1) and declaration under Section 6. But it should be
          exercised taking all relevant factors into pragmatic
          consideration. When the award was passed and
          possession was taken, the Court should not have
          exercised its power to quash the award which is a material
c         factor to be taken into consideration before exercising the
          power under Article 226. The fact that no third party rights
          were created in the case is hardly a ground for interference.
          The Division Bench of the High Court was not right in
          interfering with the discretion exercised by the learned
          Single Judge dismissing the writ petition on the ground of
D
          laches."
        14. In the concurring judgment, S.B. Majmudar, J. held as
    under:
          "..... Such a belated writ petition, therefore, was rightly
E         rejected by the learned Single Judge on the ground of
          gross delay and laches. The respondent-writ petitioners                ;
          can be said to have waived their objections to the
          acquisition on the ground of extinction of public purpose
          by their own inaction, lethargy and indolent conduct. The
F         Division Bench of the High Court had taken the view that
          because of their inaction no vested rights of third parties
          are created. That finding is obviously incorrect for the
          simple reason that because of the indolent conduct of the
          writ _petitioners land got acquired, award was passed,
G         compensation was handed over to various claimants
          including the landlord. Reference applications came to be·      + ..
          filed for larger compensation by claimants including writ
          petitioners themselves. The acquired land got vested in
          the State Government and the Municipal Corporation free
H         from all encumbrances as enjoined by Section 16 of the
--                      SWA!KA PROPERTIES PVT. LTD. AND ANR. v. STATE
                          OF RAJASTHAN AND ORS. [ASHOK RHAN, J.]
                                                                                     529

          -'r                Land Acquisition Act. Thus right to get more compensation A
                             got vested in diverse claimants by passing of the award,
                             as well as vested right was created in favour of the Bombay
                             Municipal Corporation by virtue of the vesting of the land
                             in the State Government for being handed over to the
                             Corporation. All these events could not be wished away B
                             by observing that no third party rights were created by
                             them. The writ petition came to be filed after all these
                   ·~        events had taken place. Such a writ petition was clAarly
                             stillborn due to gross delay and laches ..... "
                             15. Similarly, in the case of State of Rajasthan & Ors. v.    c
                        D.R. Laxmi & Ors. (1996) 6 SCC 445 following the decision of
                        this Court in the case of Municipal Corporation of Greater
                        Bombay (supra) it was held :
                             ".... When the award was passed and possession was
                                                                                          D
                             taken, the Court should not have exercised its power to
                             quash the award which is a material factor to be taken into
                             consideration before exercising the power under Article
 .....        ""             226. The fact that no third party rights were created in the
                             case, is hardly a ground for interference. The Division
                             Bench of the High Court was not right in interfering with E
                             the discretion exercised by the learned Single Judge
                             dismissing the writ petition on the ground of laches ..... "
                                                                                                I
                               16. To the similar effect is the judgment of this Court in the
7                       case of Municipal Council, Ahmednagar &Anr. v. Shah Hyder F
         ,.    ~


                        Beig & Ors. (2000) 2 SCC 48 this Court, following the decision
                        of this Court in the case of C. Padma v. Dy Secy to the Govt.
                        of T.N. (1997) 2 sec 627 held :
                             "In any event, after the award is passed no writ petition
                             can be filed challenging the acquisition notice or against G
     ..4'          +         any proceeding thereunder. This has been the consistent
                             view taken by this Court and in one of the recent cases (C.
                             Padma v. Dy. Secy. to the Govt. of T.N.) .... "

                             17. In the present case also, the writ petition having been
                                                                                           H
   530       SUPREME COURT REPORTS                  [2008] 2 S.C.R.


A filed after taking over the possession and the award having
  become final, the same deserves to be dismissed on the ground
  of delay and laches. Accordingly, the order of the learned Single
  Judge and that of the Division Bench are affirmed to the extent
  of dismissal of the writ petition and the special appeal without
B going into the merits thereof. This appeal also deserves to be
  dismissed without going into the merits of the case and is
  dismissed as such. No costs.
   D.G.                                        Appeal dismissed.


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