Land Acquisition Lapse – Failure to Acquire – Due to Unexplained 16-Year Delay: Supreme Court

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In a recent judgment, the Supreme Court of India upheld the lapse of land acquisition proceedings due to an unexplained delay of 16 years. The case involved the Special Land Acquisition Officer Karnataka Industrial Area Development Board (KIADB) and landowners, K B Lingaraju & Ors. The Court’s decision came in response to Special Leave Petitions arising from an impugned judgment by the High Court of Karnataka.

The High Court had quashed the final notification issued under Section 28(4) of the Karnataka Industrial Areas Development Act, 1966 (KIAD Act) on the grounds of unreasonable delay in its issuance. However, on appeal, the acquisition process was upheld, with a direction to determine the market value of the land as of the final notification date, which was 13.05.2005.

Despite approaching the Supreme Court, the landowners’ claim was rejected on 18.01.2016. Notably, there was no interim stay granted by the Supreme Court during this period. Nevertheless, the petitioners chose to issue notices under Sections 9 and 10 of the Land Acquisition Act, 1894, on 26.05.2016, leading to a second round of litigation initiated by the expropriated landowners.

The Single Bench of the High Court held that the acquisition concerning certain landowners had lapsed due to the delay on the part of the petitioner/Board in passing the award. The Division Bench of the High Court affirmed this view in the impugned judgment, citing a lack of explanation for the 7-year delay in concluding the land acquisition proceedings.

The Division Bench’s observation stated, “Even after a period of 7 years from the date of the decision of the Division Bench of this Court, i.e., on 16.12.2010, no action was taken by KIADB to conclude the proceeding of land acquisition. No explanation has been offered for the delay of 7 years in concluding the proceeding, which is fatal.”

The Supreme Court, in dismissing the special leave petitions, reiterated the significant delay in the land acquisition proceedings, spanning from 2000 to 2016, and emphasized that there was no legal impediment for passing the award during the pendency of the proceedings before the Court. The Court also highlighted that the plea that possession had already been taken in 2010 was untenable and appeared to be in conflict with Article 300A of the Constitution of India.

This decision reaffirms the importance of timely land acquisition processes and highlights that unexplained delays can lead to lapses in such proceedings.

Date of Decision: 26-09-2023

SPECIAL LAND ACQUISITION OFFICER KARNAKATA INDUSTRIAL AREA DEVELOPMENT BOARD KIADB & ORS. vs K B LINGARAJU & ORS.                          

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