Lok Adalat Award Cannot Be The Basis For Redetermination Of Compensation U/Sec 28A Land Acquisition Act, 1894: Supreme Court

The Supreme Court has held that the Award passed by a Lok Adalat under Section 20 of the Legal Services Authorities Act, 1987 cannot be the basis for redetermination of compensation as contemplated under Section 28A of the the Land Acquisition Act, 1894.The award which is passed by the Lok Adalat cannot be said to be an award passed under Part III of the Land Acquisition Act 1894 where adjudication is contemplated, the bench comprising Justices KM Joseph and PS Narasimha said.BackgroundIn this case, a notification came to be issued under Section 4(1) of the Act on 21.03.1983 in respect of villages situated in Tehsil Dadri (Situation in District Ghaziabad) for planned industrial development contemplated by the NOIDA. By the Award of the Land Acquisition Officer, the compensation was fixed for the lands belonging to the some persons inter alia at the rate of Rs.24,033 per bigha. These persons did not seek enhancement under Section 18 of the Act. One Fateh Mohammed filed an application seeking reference against the Award, which was made over to a Lok Adalat. Lok Adalat then fixed the compensation at Rs.297 per square yard as against Rs.20 per square yard which was fixed by the Land Acquisition Officer by his Award dated 28.11.1984. This made the other land owners file applications before Additional District Magistrate under Section 28A of the Act. The Additional District Magistrate rejected the applications on the basis that the Award dated 12.03.2016 passed by the Lok Adalat was on the basis of the compromise. Later, the High Court, allowed the writ petitions filed by these land owners by holding that since an Award passed by the Lok Adalat is to be taken as a decree of a Civil Court, it is to be conflated to the adjudication contemplated under Section 28A of the Act i.e. redetermination of compensation by the Civil Court.Rival Contentions/Issue NOIDA approached the Apex Court essentially contending that an Award passed by the Lok Adalat is not a decree as contemplated in Section 28A of the Act. The Land owners respondents contended that being a decree of a Civil Court, the Award of the Lok Adalat would provide firm foundation for similarly circumstanced persons to claim benefit of Section 28A. So the issue considered by the bench was whether the Award passed by a Lok Adalat under Section 20 of the Legal Services Authorities Act, 1987 can form the basis for redetermination of compensation as contemplated under Section 28A of the the Land Acquisition Act, 1894?The Apex Court bench, at the outset, noticed that there is a divergence of judicial opinion on this subject among the High Courts.Section 28A Section 28A provides for re-determination of the amount of compensation on the basis of the award of the Court. It provides that where in an award under this part, the court allows to the applicant any amount of compensation in excess of the amount awarded by the collector under section 11, the persons interested in all the other land covered by the same notification and who are also aggrieved by the award of the Collector may, notwithstanding that they had not made an application to the Collector under section 18, by written application to the Collector within three months from the date of the award of the Court require that the amount of compensation payable to them may be re-determined on the basis of the amount of compensation awarded by the court.The bench noted the scheme of Land Acquisition Act as followsThe proceedings are commenced by a notification under Section 4. Compensation is determined with reference to the date of the said notification. After the procedures are undergone, an Award is passed. While Section 18 provides for a right with a person dissatisfied with the amount inter alia awarded by the Land Acquisition Officer to seek enhancement, Section 28A contemplates situations where a person has not availed of the right under Section 18 but any other person has utilized the provisions of Section 18 and obtained an enhancement. Other conditions obtaining in Section 28A being present, a person who has not filed application under Section 18 inter alia is entitled to claim redetermination of the compensation.The scheme of Section 28A of the Act is unmistakably clear from its very opening words. What section 28A contemplates is a redetermination of compensation under an award passed under Part III. Part III takes in Section 23. Section 23 deals with the matters to be taken into consideration. Various aspects including the market value on the date of the notification under Section 4(1) are indicated.Lok Adalat AwardThe court then noticed that the jurisdiction of the Lok Adalat under Section 20 is to facilitate a settlement of disputes between the parties in a case. It has no adjudicatory role. It cannot decide a lis. All that it can do is to bring about a genuine compromise or settlement. Sub-Section (4) of Section 20 is important insofar as the law giver has set out the guiding principles for a Lok...

Lok Adalat Award Cannot Be The Basis For Redetermination Of Compensation U/Sec 28A Land Acquisition Act, 1894: Supreme Court

Ashok KM

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