20th December, 2002
Ministry of Law & Justice  


LAW COMMISSION'S RECOMMENDATIONS ON LAND ACQUISITION ACT


The Law Commission of India, in its 182nd Report on Amendment to Section 6 of the Land Acquisition Act, 1894, has recommended removal of the lacuna regarding the absence of a provision fixing a period for making of a declaration under Section 6 of the Land Acquisition Act, 1894 in the event of any action or proceeding initiated under Section 4 (1) notification or Section 6 declaration being quashed by the courts.

The need for removal of the lacuna arose following decisions of the Constitution Bench of the Supreme Court in Padmasundra Rao Vs. State of Tamil Nadu (JT 2002(2) SCI) delivered on March 13, 2002 overruling its earlier judgement in N. Narsimhaiah Vs. State of Karnataka) (1996 (3) SCC 88) case, on the ground that fixing of any further period by a judgement for making a fresh declaration, as done in the latter case, would amount to legislation by judicial fiat. In Narsimhaiah’s case, it was held that where any declaration made under Section 6 (1) was set aside or quashed by a court, a fresh declaration could be made within prescribed period from the date of judgement of the court. This view was not accepted in Pandamasundara Rao’s case.

The Law Commission has, therefore, recommended amendment to Section 6 to sub serve the public purpose and to allow the land acquisition proceedings to be continued without a fresh notification under Section 4 (1) so as to render the judicial process meaningful efficacious.

The effect of judgment of Pandamasundara Rao is prospective only as directed by the Supreme Court in that judgement. After analyzing the case, law and legal provisions, the Law Commission in this report has recommended amendment to Section 6 of the Land Acquisition Act. The Commission has recommended that where any action or proceeding taken under Section 4(1) notification or Section 6(1) declaration is quashed by the court on or after March 13, 2002, a fresh declaration under 6 (1) may be made within 80 days from the date of judgement of the court.

The Land Acquisition Act, 1894, was enacted for the purpose of compulsorily acquiring land required for public purposes or for purposes of companies and for determination of the amount of compensation to be paid on such acquisition. The Act contemplated that initially a notification under Section 4(1) has to be issued indicating the intention of the Government to acquire land or other property. Thereafter, objection may be filed under Section 5A by those interested in the land before the Collector who will give oral hearing and thereafter he will submit a report to the concerned Government taking further action. In case of urgency, hearing procedure under Section 5A can be dispensed with under Section 17(4). Thereafter, if the Government decides in favour of acquisition, a declaration under Section 6(1) has to be made. But this declaration should be made within one year from the date of last publication of Section 4(1) notification. An explanation given below Section 6(1) indicates that where any action or proceeding to be taken in pursuance of the notification under Section 4(1) is stayed by an order of the court, period of stay order in force should be excluded in computing the period of one year. This explanation does not exclude the period covered by the litigation where the various proceedings after Section 4(1) notification or consequential Section 6(1) declaration are held bad by the court. In the absence of a provision in Section 6, the court cannot exclude the period covered by the court proceedings leading upto the date of quashing of the proceeding or the Section 6 (1) declaration.