Subject-Land Laws Topic - Throw A Light On The Provision Relating To The Acquisition of Land For Companies Supervised By: Rupa Pradhan
Subject-Land Laws Topic - Throw A Light On The Provision Relating To The Acquisition of Land For Companies Supervised By: Rupa Pradhan
SUBJECT-LAND LAWS
1
ACKNOWLEDGEMENT
With profound gratitude and sense of indebtedness I place on record my sincerest thanks
to……, Assistant Professor in Law, Rupa pradhan Indian Institute of Legal Studies, for her
invaluable guidance, sound advice and affectionate attitude during the course of my studies.
I have no hesitation in saying that he/she molded raw clay into whatever I am through his/her
incessant efforts and keen interest shown throughout my academic pursuit. It is due to his/her
patient guidance that I have been able to complete the task.
I would also thank the Indian institute of Legal Studies Library for the wealth of information
therein. I also express my regards to the Library staff for cooperating and making available
the books for this project research paper.
Finally, I thank my beloved parents for supporting me morally and guiding me throughout the
project work.
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TABLE OF CONTENTS
Acknowledgement………………………………………………..…………………2
Research Methodology…………………………..……………………….4 - 5
A. Aims and Objectives…………………………..……………………………4
B. Statement of Problem………………………………………………….
……………………….4
C. Research Hypothesis…………………………….…………………….
……………………..4
D. Research Questions………………………………….….……………..
………………………4
E. Methodology of Research………………………….……………….
……………………………5
F. Scope and Limitations……………………………………………..
………………………..5
G. Review of Literature…………………………………………..…………………………5
Table of Cases………………………………………………………………….
…………………….6
Chapter – I: Introduction…………………………………..…………….
………………………7
Chapter II: land acquisition act 1894…………………………………………..……..8-10
The aims and objectives of this project topic through the light of provision relating to the
acquisition of land for companies aims object contained of original and primary research
work of doctrinal part accusation of land purpose maintain project topic public law and
develop research academy practitioner and others through conference seminar research
project.
B. STATEMENT OF PROBLEM
Despite the laws and Acts, the current systems do not give an equal chance to access and
flourish. Though we have research work as a claim the outline of problem rational about the
issue that is addressed by the project of land laws acquisition act of the project topic area and
existing condition reference to research data articles would be helpful.
B. RESEARCH HYPOTHESIS
The Hypothesis is usually considered as and important mechanism i research
hypothesis is tentative assumption made in order to test logical and empirical and
doctrinal project topic land acquisition companies if we go by the origin of the word
tentative explanation of the research problem a possible outcome of the research
hypothesis facilities the extension of knowledge of area. the hypothesis enables of
researcher of to logically known fact to intelligent of guesses about unknown
condition of project topic.
Based on the statement of problem and research hypothesis aforementioned, the following
research questions have been formulated:
1. What do you mean by land acquisition act ?
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E. METHODOLOGY OF RESEARCH
“Methodology” implies more than simply the methods the researcher used to collect data. It
is often necessary to include a consideration of the concepts and theories which underlie the
methods. The methodology opted for the study on the topic is Doctrinal. Doctrinal research in
law field indicates arranging, ordering and analysis of the legal structure, legal frame work
and case laws by extensive surveying of legal literature but without any field work.
The research work discusses the key points that the Learned Court observed as well as what
is deduced Judicial Interpretation. Topic being very vast like ocean, the work is limited to the
auditing standers suggest that when restriction imposed by the client signification limit of en
engagement or client limitation of project topic.
G. REVIEW OF LITERATURE
The researcher while writing this project has taken recourse to various primary and secondary
sources. Primary sources would include various laws, books and articles. Secondary sources
would include reports and websites.
H. MODE OF CITATIONA uniform Blue Book Mode of citation has been adopted
through.
TABLE OF CASES
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1.TATA MOTORES VS WEST BENGAL. AIR 2008
CHAPTER -1
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INTRODUCTION: and acquisition in India refers to the process by which the union or
a state government in India acquires private land for the purpose of industrialization,
development of infrastructural facilities or urbanization of the private land, and provides
compensation to the affected land owners and their rehabilitation and resettlement. [1] The
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Bill 2013, received assent of the President of India on 27 September 2013. The
bill has now become law.
The Bill was passed in the 2013 Monsoon Session of Parliament. (The Lok Sabah passed the
bill on 29 August 2013 and Rajah Sabah passed the bill on 4 September 2013). The
Government of India believed there was a heightened public concern on land acquisition
issues in India. Of particular concern was that despite many amendments, over the years, to
India’s Land Acquisition Act of 1894, there was an absence of a cohesive national law that
addressed fair compensation when private land is acquired for public use, and fair
rehabilitation of land owners and those directly affected from loss of livelihoods. The
Government of India believed that a combined law was necessary, one that legally requires
rehabilitation and resettlement necessarily and simultaneously follow government acquisition
of land for public purposes. The Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 is a legislation that regulates land
acquisition and provides laid down rules for granting compensation, rehabilitation and
resettlement to the affected persons in India. The Act has provisions to provide fair
compensation to those whose land is taken away, brings transparency to the process of
acquisition of land to set up factories or buildings, infrastructural projects and assures
rehabilitation of those affected. The Act will replace the Land Acquisition Act, 1894, a nearly
120-year-old law enacted during British rule. The original Land Acquisition Act was a
colonial legislation enacted by the British government primarily to acquire private land to lay
railways lines and for other such construction works. The Act was adopted into the Indian
Constitution and is being used by the government, albeit a few amendments.
CHAPTER -2
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LAND OF ACQUISITION ACT 1894: One of the most debatable issues under the Land
acquisition Act 1894 is interpretation of ‘public purpose’ around which disputes concerning
acquisition revolve. Private companies acquire land for infrastructure, power, residential or
such similar projects and the notification under sections 4 and 6 of the Act are challenged on
the ground that land is being taken over for private purposes or by a private entity. The
government acquires private land by applying the principles and rules under the provisions of
the Act 1894. However, different states have also enacted own compensation and acquisition
rules independent of the Act. he preamble to the Land Acquisition Act states it is for the
acquisition of land needed for public purposes “or for companies and for determination of the
amount of compensation to be made on such acquisition”.
The term ‘public purpose’ has been defined in the Black’s Law Dictionary (Fifth Edition) as:
“1A public purpose or public business has for its objective the promotion of the public health,
safety, morals, general welfare, security, prosperity and contentment of all the inhabitants or
residents within a given political division, as, for example, a state, the sovereign powers of
which are exercised to promote such public purpose or public business”. The concept was the
work of by Hugo Grotius is in his work “De jure Belli et Pacis” in 1525. It deals with the
compulsory acquisition of land for public purpose and states that a State can acquire private
land for public purpose. However, under the new Land Acquisition Bill-2011, amended in
September, 2010 and passed by the Lok Sabha in August of 2012, the term ‘public purpose’
has been elaborated by inserting a new clause, 3(za). It states:
1. the provision of land for strategic purposes relating to naval, military, air force, and armed
forces of the Union or any work vital to national security or defense of India or State police,
safety of the people;1
(ii) the provision of land for railways, highways, ports, power and irrigation purposes for use
by Government and public sector companies or corporations.2
1
www.htttp.indiankanoon.com
2
www.ncbi.com
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2.1 RESETTLEMENT ACT, 2013: Section 2 of RFCTLARR Act has an expansive
definition PUBLIC PURPOSE LAND ACQUISITION., of public purpose and
infrastructure and also a clause which leaves the discretionary power to declare anything as
infrastructure and of public purpose. Infrastructure has been equated with public purpose,
which is ironic, given that expert committee is to make a decision about the public purpose.
One must realize that every land to be acquired is serving public purpose of one kind or the
other, single or multi crop land is also serving public purpose, hence a limited definition of
public purpose was required, not an all encompassing, including even private profit projects.
ACQUISITION FOR PRIVATE AND PPP PROJECTS: The most regressive step in the
RFCTLARR Act is the role of government in acquisition for private and PPP projects, which
are for profit and not for public purpose, Section 2(2). In this era of neo-liberal economic
reforms, private projects with corporate investment and interests are taking a much larger toll
of land and other rich natural resources as also uprooting by killing communities which are
generations old. This must come to an end and the same can happen only with stopping the
State playing a role of facilitator and land dealer. At the cost of the livelihood of the nature
based sections and working class section of society, the state cannot transfer the most
valuable livelihood resources such as land, water to the profiteering bodies in the garb of
‘public interest’ and ‘public purpose’. Provisions of free prior informed consent and
consultation of local self Government institutions, one of the key features advertised in favor
of the Rfctlarr Act is the 70% consent of land owners for PPP projects and 80% consent of
the land owners for the private projects, Section 2(2)(b). However, as we said that even with
consent, government has no business acquiring land for the private corporation’s profit, in the
name of public purpose. Except for scheduled areas, Section 41(3), RFCTLARR Act
mandates no consent of the Gram Sabah in government developed PPP. This is completely
unacceptable given that post independence maximum acquisitions were done for the public
sector companies leading to massive displacement.
2.2 or strategic purposes relating to naval, military, air force, and armed forces of the Union,
including central paramilitary forces or any work vital to national security or defense of India
or State police, safety of the people; or
For infrastructure projects, which includes the following, namely:
All activities or items listed in the notification of the Government of India in
the Department of Economic Affairs (Infrastructure Section) number 13/6/2009-INF,
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dated 27 March 2012, excluding private hospitals, private educational institutions and
private hotels;
Projects involving agro-processing, supply of inputs to agriculture,
warehousing, cold storage facilities, marketing infrastructure for agriculture and allied
activities such as dairy, fisheries, and meat processing, set up or owned by the
appropriate Government or by a farmers’ cooperative or by an institution set up under
a statute;
Project for industrial corridors or mining activities, national investment and
manufacturing zones, as designated in the National Manufacturing Policy; Project for
water harvesting and water conservation structures, sanitation; Project for
Government administered, Government aided educational and research schemes or
institutions;
Project for sports, health care, tourism, transportation of space programme; any
infrastructure facility as may be notified in this regard by the Central Government and
after tabling of such notification in Parliament;
Project for residential purposes to the poor or landless or to persons residing in areas
affected by natural calamities, or to persons displaced or affected by reason of the
implementation of any scheme undertaken by the Government, any local authority or
a corporation owned or controlled by the State.
When government declares public purpose and shall control the land directly, consent of the
land owner shall not be required. However, when the government acquires the land for
private companies, the consent of at least 80% of the project affected families shall be
obtained through a prior informed process before government uses its power under the Act to
acquire the remaining land for public good, and in case of a public-private project at least
70% of the affected families should consent to the acquisition process.
2.3 ACQUISITION OF LAND BY COMPANIES. The original Land Acquisition Act was
a colonial legislation enacted by the British government primarily to acquire private land to
lay railways lines and for other such construction works. The Act was adopted into the Indian
Constitution and is being used by the government, albeit a few amendments.
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As per Land Acquisition (Companies) Rules, 1963 dictates that whenever a company makes
an application to the appropriate Government for acquisition of any land, that Government
shall direct the Collector to submit a report to it on the viability of the application The rider in
the amendment that makes mandatory seeking consent of 80 per cent land owners while
acquiring land has put private companies in a tight spot. Other amendments under different
provisions in new Bill have already raised the compensation bar to be given to land owners,
which can now fetch them maximum cost of their land to give consent for it to be acquired.
However, the ambiguity surrounding the ‘public purpose’ under the Act continues to
dominate land acquisitions. It would perhaps be wiser to settle such cases outside courts and
ensure that a reasonable compensation is paid through amicable settlement in cases between
private entities and land owners.
3. Definition of company: Company means a company registered under the Indian companies
act 1882 (VI of 1982), or under the (English) companies act 1862 to 1890, or incorporated
Pakistan law or by royal charter or letter patent and include a society registered under
kingdom or by Pakistan law or by royal charter of latter patent and include a society
registered under the society registration act 1860 (XXI of 1860) and a registered society
within the meaning of the co-operative society act. 4 One of the demands made by us was for
compulsory social impact assessment to evaluate the extent of impact on various sections of
society affected by displacement, given massive impoverishment and unnecessary acquisition
of extra land and forcible acquisition without any options assessment.5
3
www.orghttplaw.com
4
www.ncbi.com
5
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CHAPTER 3
The 2013 Act came into force from 1 January 2014 repealing the 1894 Act. The crucial
question that might be in mind of many that what will happen to the ongoing land acquisition
processes. Will they lapse? There might be situation where the award has been made but the
same was not accepted by the land owners. What will happen to such land acquisition
process? Will it be considered that the land acquisition process has completed under the 1894
Act or they lapse as well?
To avoid such confusion, Parliament has added a separate provision to deal with such cases.
Section 24 of the 2013 Act deals with validity of ongoing land acquisition processes under
the 1894 Act. The Section states the following conditions:
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i) Where no award has been made under the existing Act, then the provisions related to
determination of compensation, rehabilitation and resettlement6
3.1The 2013 Act has been drafted keeping in mind the sentiment of people and as a populist
measure. No doubt the Act has replaced a draconian law which allowed acquisition of land
for a very nominal amount with a more benevolent Act which provides the land owners with
adequate compensation. Infrastructural projects worth more than 7 lakh core rupees are
already struck due to governmental clearance and red-tapes under the old Act. The 2013 Act
might affect the infrastructural development in India in a larger manner, which has more
complicated and lengthier acquisition process which might delay existing approved projects.
Provisions like “social impact assessment”, where gram sabhas will be involved might delay
projects and increase red tapes. Having such cumbersome provisions might increase lengthy
litigations which will intern delay protects and increase costs.7 This Act might affect the
manufacturing industries in a significant manner, as the new Act requires consent of 80 % of
the land owners for acquiring land for private purposes. Manufacturing units needs large
tracts of land and acquiring such large amount of land might be a problem. Recent protests in
Nandi gram and Singur in West Bengal, Kalinganagar in Odisha and other parts of India due
to acquisition of land for private purposes have made it evident that getting consent of 80% of
the land owners might be difficult if not impossible for manufacturers to set up a plant.
Considering the retrospective provision which has been given implied validity by the
Supreme Court, there is a chance of increase project costs and delays arising due to further
litigation for application of the new provisions to the ongoing acquisition processes8.
Moreover the provision states that in case the award for acquisition of a particular land has
been made at least 5 years before the commencement of the 2013 Act and the physical
possession of the land has not been taken, the land acquisition will considered to have land
new proceeding under the 2013 Act has to be initiated, might again cause significant project
delays and increased costs.9
6
www.ncbi.com
7
www.htttp.indiankanoon.com
8
Section40(2)
9
Altaf hossain vs state of west bengal
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CHAPTER-4
VS
WEST BENGAL
FACT: . According to Mr. Samaraditya Pal, learned Senior Advocate appearing on behalf of
the Tata Motors Limited (hereinafter referred to as the ‘TML’) the “Singur Act” is a law
relating to acquisition. He drew our attention to Article 245 of the Constitution of India and
contended that the Parliament as well as State Legislatures has power to legislate which
would be evident from Article 245. But both the powers are subject to Constitution, meaning
thereby that such exercise of power to legislate cannot violate any provision of the
Constitution. It is further stated that the said Act of 2011 is in pith and substance an Act for
acquiring the land leased out to the company. The further questions that were taken in the
writ petition are that the said Act of 2011 in so far as it provides for vesting of the land in the
State Government is illegal, null and void in so far as the land having already vested in the
State Government as a result of proceedings taken under the Land Acquisition Act, 1894
therefore, the same cannot be re-vested with the State Government. The back ground of this
case started in the year in or around 2006 when the Government of West Bengal was trying to
invite the Tatas to set up an establishment for the manufacturing their small car ‘Nano’ in
West Bengal. He further submitted that applying these twin tests in this case, the only matter
to which the impugned Act relates is taking over Tata Motor’s leasehold comprising land by
acquisition and the simultaneous vesting in State for returning the land to some unidentified
people alleged to be unwilling owners for the purpose of conferring unencumbered title to
them.
It is further submitted on behalf of the State that Singur Act is a special statute directly
acquiring Singur land whereas Land Acquisition Act provides for executive acquisition. In
reply to that Mr. Pal submitted both the Acts provide for acquisition of property. It is not
strictly correct to say that vesting under the Singur Act is automatic and Land Acquisition
Act for executive vesting. There is nothing as automatic vesting. Any acquisition whether
directly under the Acts like Singur Act, West Bengal Estates Act 1953, Land Reforms Act
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1955 or the land Acquisition Act 1894 requires some executive action for acquisition and
most importantly taking possession. He further submitted that it is a case of deprivation in
Article 300A and includes taking away possession. He further submitted that taking away
possession is indispensable part of vesting in both the Acts and the possession is 9/10th of
ownership.
JUDGMENT: In the said decision the Supreme Court held that the Act which was enacted in
public interest to preserve and protect the land used for the linaloe cultivation and construct
as part of agrarian reforms which is its dominant purpose. Whereas we find from the
impugned Singur Act itself that the dominant purpose of the Singur Act is to return the land
to the unwilling owners and thereafter to use the land for the public interest. Therefore, the
Singur Act cannot come within the purview of Entry 18 List II.
540. We have further noticed that the validity of the acquisition Act on the touchstone of
Article 300-A of the Constitution and examine whether the concept of eminent domain to
read into Article 300-A and in the statute enacted to deprive a person of his property. The law
is settled on such question and the framework of the statute should satisfy the twin principles
i.e., public purpose and adequate compensation. The doctrine of eminent domain would show
that a person must be deemed to be deprived of his property if he was “subsequently
dispossessed” or his right to use and enjoy the property was “seriously impaired” by the
impugned law. Then certainly the eminent domain will be applicable. For the reasons stated
hereinabove, the judgment and/or order so passed by the Hon’ble Single Judge is set aside.
The appeal is allowed. The crossobjection filed by the State is also dismissed and the Act is
declared as void.
557. The writ petitions filed by the vendors are also disposed of.
559. Photostat certified copy of this judgment, if applied for, be supplied to the parties
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CASE 2
VS
FACT: The present writ petition was moved before this Court on December 11, 1986
challenging the order of requisition passed by the District Magistrate, Howrah in exercise of
power Under Section 3(1) of the West Bengal land (Requisition and Acquisition) Act, 1948
(hereinafter referred to as 'Act II of 1948'). By the said order, the writ petitioners were
directed to hand over possession to the Executive Engineer, Howrah Improvement Trust on
December 11, 1986 at 10 a.m. The petitioners who are 13 in number moved the joint writ
petition carry on business. The petitioners are all tax payers and pay Municipal Corporation
Tax Under Section 102 of the Howrah Municipal Act, 1980. The petitioners recently stopped
payment of tax after passing of the order of requisition and the petitioners reasonably
apprehended that it would be difficult for them to carry on business and for taking recourse to
this order of requisition, at the instance of Howrah Improvement Trust, the impugned order of
requisition has been passed by the learned District Magistrate, Howrah.
The petitioners recently stopped payment of tax after passing of the order of requisition and
the petitioners reasonably apprehended that it would be difficult for them to carry on business
and for taking recourse to this order of requisition, at the instance of Howrah Improvement
Trust, the impugned order of requisition has been passed by the learned District Magistrate,
Howrah
In this context, Mr. Mukherjee further submits that by the order of requisition the petitioners
were' directed to hand over possession to the Executive Engineer, Howrah Improvement
Trust and it is admitted in paragraphs 14 and 17 of the affidavit-in-opposition on behalf of the
C.M.D.A. that the requisition orders have been made at the instance of the answering
respondents which was prejudicial to them. . In this connection, Mr. Mukherjee has referred
to Hooghly River Bridge Commissioner Act, 1969 which deals with the powers of the said
Commissioner and Section 24 of the said Act which originally provided for acquisition under
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the Land Acquisition Act, 1894 has been subsequently amended by Amendment Act being
Act XX of 1974 so as to permit requisition and acquisition under Act II of 1948.
ISSUE:
1. Whether the order of requisition passed under West Bengal Land (Requisition
and Acquisition act 1948 has been served upon owners and occupiers of the premises
in terms of the Rules framed under West Bengal Land (Requisition and Acquisition)
Rules, 1948?
2. Whether the State Government is requisitioning the land along with the existing
structures for permanent acquisition and, as such, the power under Act II of 1948
could at all be invoked?
3. Whether land with structure can be requisitioned by taking recourse to the provisions
of Act II of 1948 for CM.D.A. as it has been done in the instant case?
JUDGMENT: The Land Acquisition Act 1894 laid down elaborate procedure for
acquisition of land for a company and it is permissible to acquire property for a
private company for a public purpose where the word 'public-purpose' was not
denned. When the provisions of the Land Acqui-siton Act laid down the conditions
and/or the restrictions under which a land could be acquired for a company, in my
view, the property could not be requisitioned for a company by passing the provisions
laid down in the Land Acquisition Act
In view of the decisions, in my opinion, the State Government is not permitted to take
recourse to the provisions of Act II of 1948 for requisitioning land for C.M.D.A. as the Land
Acquisition Act 1894 lays down a special procedure for acquisition of land for C.M.D.A.
Accordingly, the writ petition is entitled to succeed on the ground that the respondents are not
permitted to requisition the land for a third party viz. C.M.D.A., in view of the decisions
referred to hereinabove. The order of requisition is liable to be quashed by issuance of the
nature of Certiorari but this will not prevent the respondents from proceeding with the matter
in accordance with law.There will be no order as to cost.
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CHAPTER -5
CONCLUSION:
The rates paid for the land acquired are the prevailing circle rates in the area which are
outdated and hence not even remotely indicative of the actual rates prevailing in the area.
2013 Bill proposes the payment of compensations that are up to four times the market value
in rural areas and twice the market value in urban areas.
Also 2013 bill speaks about Retrospective operation, multiple checks and balances, special
safeguards for tribal communities and other disadvantaged groups, compensation for
livelihood losers, caps on acquisition of multi-crop and agricultural land, return of unutilized
land, exemption from income tax and stamp duty, time-bound social impact assessment,
Share in developed land, damage to crops to be included in price, affected family to include
tenants, monthly subsistence allowance etc. Right to Fair Compensation and Transparency in
Land Acquisition, Rehabilitation and Resettlement Act, 2013 is also called land acquisition
act 2013 and was brought to replace Land Acquisition Act of 1894, enacted during British
era. However the act was mired into controversies mainly because of lack of specific
definition of public purpose, thereby, extending even it to the extent of establishment of
business-cum-leisure tourism infrastructure center like villas, golf course, hotels and banquet
halls.
BIBLIOGRAPHY:
1. Seceondary source
www.htttp.indiankanoon.com
www.http.lawstudt.com
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