Lucknow College of Architecture

Final Year B. Arch. AR 1003 Development Legislation

UNIT-3 LAW RELATED TO LAND
Lecture -5 Land Acquisition
- Prof. Mukul Singh 1

Historical Bacground:
The history of land acquisition legislation in this country dates back to the beginning of last century: The first
piece of legislation in India in respect to the acquisition of property was the Bengal Regulation Act of 1824. It
applied to all the provinces subject to the presidency of Fort William. It only made provisions for enabling the
officers of Government to obtain land or other immovable property required for roads, canals or other public
purposes.
In 1850, some of the provisions of the said Act were extended to the Calcutta City, when the Railways were being
developed in mid 19th century, it was felt that legislation was needed for acquiring lands for them also. Thus
through the Act, railways were declared as public works and lands acquired for the construction of railways also
for acquisition of lands for the purposes of widening or altering any existing public road, street or other
thoroughfare within the islands of Bombay and Colaba were provided. It was a similar Act to Bengal Regulation
Act of 1824.
Later the Act of 1852 was passed in Madras for the purpose of facilitating the acquisition of land in the
Presidency of St. Fort George. This act adopted first seven sections of the Bengal Regulation Act of 1824 with
certain modifications.
For the whole of British India, an Act on this subject was for the first time enacted in 1857, as stated in the
preamble of this Act, it repealed all the previous enactments relating to acquisition and its object was to make
better provisions for the acquisition of lands needed for "Public purposes" within the territories in the possession
and under the governance of East India Company. It also went to the extent of determining the amount of
compensation with reference to certain principles.
Later there was a rapid pace of urbanisation clue to Industrial Revolution this lead to deterioration in public
health, which necessitated the compulsory purchase of land for various public health, urban renewal and town,
expansion purposes. Thus the Government became aware of the need to expand the scope for compulsory
acquisition of land to above mentioned purposes also.
The Building Act of 1839 was the first Piece of legislation in Bombay where provisions under this Act, the
Collector was empowered to fix the amount of compensation to be paid by agreement, if possible. but if there was
no such agreement possible, the dispute had to be referred to Arbitrator, whose decision was final and could not
be impeached except on grounds of corruption and misconduct.
This Act was amended by the Act of 1861 and subsequently by the Act of 1863. However a few years
working of the Act revealed that the method of settlement of compensation by Arbitrators was found to be
unsatisfactory as they were incompetent and even corrupt. There was no machinery to get their decision revised
as there was no appeal provided under the Act against the award of Arbitrators.
Ultimately the legislature had to intervene and the Act of 1870 was passed. This Act, for the first time,
provided for a reference to a civil court for the determination of the amount of compensation when the Collector
could not settle by agreement. It laid down detailed procedures for the acquisition of land and also provided
definite rules for assessing compensation. A better type of tribunal for the decisions of the claims and a clear set
of rules for assessing compensation were the new features of the statute.
But the Act of 1870 was found to be equally unsatisfactory, particularly the matters of reference to the court
and consequently another Act in the year 1894 (which is invogue even now) was passed in place of the said Act

1
Principal at Lucknow College of Architecture
of 1870.
The Act of 1870 was not found entirely effective for the protection of either the Governments or the persons
interested in lands to be acquired. The provisions that the collector shall refer for the decision of court every
pretty difference of opinion, resulted in involvement in litigation and considerable delays particularly because
several parties, whose interest in the land was insignificant, also made the Collector to refer their cases to the
court.
Before 1894 the valuation of land was entirely in the hands of arbitrator for whose decision there was no
appeal. This system led to a lamentable waste of public money. because the arbitrators were often incompetent,
and even corrupt and also the law then laid to instructions for their guidance. The above mentioned defects were
sought to be remedied by the Land Acquisition Act 1894. which must be considered to be a historic piece of
legislation in this regard. Detailed instructions were provided in this Act about those matters which are to be
considered and those which are to be neglected in award of compensation for lands acquired under its provisions.
Under this Act the Collector's award was normally final, unless desired by the concerned parties to be referred
to the court. Thus the previous rule of compulsory reference to court in all cases where there was no agreement
among the several claimants as regards apportionment amongst the claimants and if any of them is aggrieved, it is A
open to him to apply to the Collector for reference to court. within the time specified in Section 184 of the Act. O
Various amendments were made to the 1894 Act from time to time.
Despite these amendments, the administrative procedure has under the Land Acquisition Act, 1894 basically to
remained same since 1894, when it was first enacted and this Act has served admirably well the purpose of p
compulsory acquisition of properties for public purposes, as may be required by various public authorities, during
the last one hundred years.

THE LAND ACQUISITION ACT-1894

PRELIMINARY INVESTIGATION
Publication of Preliminary notification and powers of officers thereupon [S4]
I Wherever it appears to the appropriate Government or Collector (means Collector of the District and
includes a Deputy Commissioner and any officer specially appointed by the Government to perform the
functions of a collector under this Act) that land is any locality is needed or is likely to be needed for any
public purpose (or for a Company, or a society registered under Societies Registration Act, 1860 or a
cooperative society) a notification to that effect shall be published in the official Gazette and in two daily
newspapers circulating in that locality of which at least one shall be in the regional language and the
collector shall cause public notice of the substance of such notification to be given at convenient places in
the said locality. The date of last publication and giving of such public notice will be known as the date of
the publication of the notification.
2 After such notification is shall be lawful of any officer authorized by such Government and for this
servants and workmen -
i. to enter upon and survey and take levels of any land in such locality.
ii. to dig or to bore into the sub-soil.
iii. to do all other acts necessary to ascertain whether the land is adapted for such purpose
iv. to set out the boundaries of the land proposed to be taken and the intended line of the work proposed
to be made on it.
v. to mark such levels, boundaries and lines by placing marks and cutting trenches
vi. to cut down and clear away any part of any standing crop, fence of jungle, if the survey cannot be
completed without that.
However, no person shall enter into any building or upon any enclosed Court or garden attached to a
dwelling house without the consent of the occupier or without giving seven days notice in writing to
do so.
Payment of damage [S5]: At the time of such entry for carrying out of survey, the concerned authorized officer
shall pay or tender the payment for all necessary damages to be done. In, case of dispute regarding quantum of
the payment, it should be referred to the collector or other Chief Revenue officer of the district.
Hearing of Objections [5A]
(1) Any person interested in any land which has been notified under section - 4 as being needed or
likely to be needed for a public purpose or for a company, may object to the acquisition of the
land, within thirty days from the date of publication of the notification.
(2) The objection shall be made to the collector in writing and collector shall give the objector an
opportunity of being heard in person or by any other person
authorized by him or by a pleader. After hearing all such objections and after making necessary
enquiries, the collector shall make report on in respect of the land notified under section 4 or make
different reports for different parcels of such land containing his recommendations. The report shall
be submitted to the appropriate Government along with a record of proceedings held by him, for the
decision of the Government which will be final.
DECLARATION OF INTENDED ACQUISITION
Section 6 [3] of the Land Acquisition Act states that the eclaration by the Government under Section
6(1) of the Act that specific land is required for public purpose.
Concept of Public Purpose: In the context of compulsory land acquisition, the question arises what is the 'public purpose'. The
concept of 'public purpose' is elastic and not static as the modern society is a dynamic one. It would be difficult to lay down any
'
hard and fast definition of what should constitute a public purpose. Hence Land Acquisition Act also avoids giving any exhaustive
definition as to what purpose would come within the purview of the meaning of 'public purpose. The Leading court decision on
the subject is the case of Hamabai Fi-amjee Petit vs Secretary of State for India in which Bachelor J. observed General
definitions are, I think, rather to be avoided where the avoidance is possible, and I make no attempt to define precisely the
extent of the phrase. 'public purpose' it is enough to say that in my opinion the phrase, whatever else it may mean, must
include a purpose, the object or aim in which the general interest of the community, as opposed to the particular interest of
individuals, is directly and vitally concerned.

Declaration that land is required for a public purpose [S-6]

1 After considering the report made by the Collector Under section 5A, when the appropriate Government is
satisfied that any particular land is needed for public purpose or for a company a declaration shall be made to
that effect under the signature of a secretary of the Government or any officer duty authorized to certify its
orders. Different declarations may be made from time to time in respect of different parcels of any land
covered by the same notification under section-4 irrespective of whether one report or different reports have
been made.
No such declaration shall be made unless the compensation to be awarded for such property is to be paid by
a company or public revenue or by a local authority.
2 Every declaration shall be published in the official Gazette and in two daily newspapers circulating in the
locality in which the land is situated of which at least one shall be in local language and the collector shall
cause public notice of the substances of the declaration to be given at convenient places in the said locality.
The declaration shall state the district or other territorial division in which the land is situate the purpose for
which it is needed, its approximate area and where a plan has been made of the land, the place where such
plan may be inspected.
3 The said declaration shall be conclusive evidence that the land is needed for a public purpose or for a company.
After making such declaration the appropriate Government may acquire the land in manner prescribed.

Another important relevant case in the Supreme Court was Raja Anand Brahma Shah vs. State of U.P.- Some land of the
petitioner was acquired for lime stone quarry. The same stone extracted from quarries situated on the land acquired was used by the
State Government for the manufacture of cement which was sold commercially. The petitioner argued that this was not a public
purpose and so the acquisition was bad. The Supreme Court refused to accept this as Section 6(3) raised a conclusive presumption
regarding public purpose. The Court cannot go behind it and try to satisfy itself whether, in fact, the acquisition was for a public
purpose. The Supreme Court held that it was for the Government to be satisfied, in a particular case, that the purpose for which the
land was needed was a public purpose and the declaration of the Government under Section 6(1) would be final subject,
however, to c o l o u r a b l e e x e r c i s e o f p o w e r w h e n t h e declaration is open to challenge.
After Declaration Collector to take order for acquisition [S-7]
Whenever any land shall have been so declared to be needed for a public purpose or for a company, the
appropriate Government shall direct the Collector to take order for acquisition of the land.
Land to be marked out, measured and planned [S-8]
The Collector shall then cause the land to be marked out, if not orderly done. He shall also cause it to be
measured and if plan is not already made, a plan to be made of the same.
Notice to persons interested [S-9]
1 The collector shall then cause public notice to be given at convenient places of or near the land to be taken;
stating that the Government intends to take possession of the land and that claims to compensation for all
interests in such land may be made to him.
2 Such notice shall state the particulars of the land so needed and shall require all persons interested in the land to
appear personally or by agent before the collector at a time and place mentioned in the notice. The time
given should be at least fifteen days after the notice. The person so interested should state the nature of
interest in the land and the amount and after particulars of their claims to compensation and objections to the
measurements, if any. The collector may require such statement to be made in writing and signed by the
party or his agent.
3 The collector shall also serve notice to the same effect on the occupier, if any, of such land and, on all such
persons known or believed to be interested in the land as reside within the revenue district which the land is
situate.
4 In case any person so interested resides and has no agent, the notice shall be sent to him by registered post.
Power to require and enforce the making of statements as to names and interests [S-10]
1 The Collector may also require any such person to make or deliver to him, at a time and place mentioned a
statement containing, so far as may be practicable, the name of every other person possessing any interest in
the land or any part of it, as Co- proprietor, Sub-proprietor, mortgagee, tenant or otherwise and the nature of
such interest and of the rents and profits, if any, received or receivable for proceeding three years.
2 Every person required to make or deliver a statement under section 9 or 10 shall be deemed to be legally
bound to do so within the provisions of Indian Panel Code, 1860.
Enquiry and award by Collector [S-11]
1 On the date fixed for hearing the Collector shall proceed to enquire into objection to notice Under section 9 to
measurements and into the value of the land into the respective interests of the persons claiming the
compensation and shall make on a award under his hand of-
i. area of the land
ii. The compensation which in his opinion should be allowed for the land; and
iii. The apportionment of the said compensation among all the persons known or believed to be
interested in the land, of whom or of whose claims, he has information. Whether or not they have
respectively appeared before him.
iv. The award shall be made by the collector under this section with prior approval of the appropriate
Government. The Government may direct the Collector to make award without such approval in
such class of cases as the Government may specify.
2 If at any stage of the proceedings, the collector is satisfied that all the persons interested in the land who
appeared before him have agreed in writing to the matters to be included in the award of the collector, he
may without making further enquiry, make an award according to such agreement.
3 The determination of compensation by agreement amongst the interested parties shall not, in any way, affect
the determination of compensation in respect of other lands in the same locality. The collector shall make
an award under section 11 within a period of two years from the date of publication of the declaration and if
no award is made within that period, the entire proceedings for the acquisition of the land shall lapse. In
computing the period of two years, the period during which any action or proceedings to be taken in
pursuance of the said declaration is stayed by an order of the court shall be excluded.
PAYMENT
Payment of Compensation or deposit of same in court [S 31]
1 On making award Under section 11, the collector shall tender payment of the compensation awarded by him to
the persons interested entitled there to according to the award and pay it to them unless prevented by one or
more of contingencies.
2 If they shall not consent to receive it or if these be no person competent to alienate the land or if land these be
any dispute as to the title do receive the compensation or as to apportionment of it, the collector shall
deposit the amount of the compensation with court to which a reference under section 18 would be
submitted.
Any person admitted to be interested may receive such payment under protest as to sufficiency of the
amount and then make application under section 18.
3 The collector may make any arrangement with person having limited interest in such land be grand of the
other land in exchange or remission of lad revenue on the others lads.
Award of Collector when to be final [S-121
1 Such award shall be fined in the collector's office and shall be final and conclusive
evidence as between the collector and the persons interested whether they have respectively appeared before
the collector or not, of true area and value of the land and the apportionment of the compensation among the
persons interested.
2 The collector shall give immediate notice of his award to such of the persons interested as are not present
personally or by representative when the award is made and also sent a copy, of the award to the land
reforms Commissioners.
Correction of clerical errors etc.
1 The collector may correct any clerical or arithmetical mistakes in the award or errors arising in that, either
on his own motion or on the application of any person interested or a local authority. If such correction
affects any person, he should be given opportunity of making representation.
2 The collector shall give immediate notice if any correction made in the award to all the persons interested.
3 Where any excess amount to proved to have been paid to any person as a result of the correction, the
excess amount so paid shall be liable to be refunded and in case of any default or refusal to pay' the same
may be recovered as an arrear of land revenue.
Power to take possession [S 16]
When the collector has made an award under section 11, he may take possession of the land, which shall then rest
absolutely in the Government, free from all encumbrances.
Special Powers in case of urgency [S 17]
1 In cases of urgency, when ever the appropriate Government so direct the collector may take possession of any
land needed for public purpose, on expiration of fifteen days from publication of the notice under section 9
ever though no such award has been made . Such land shall there upon vest absolutely in the Government
free from all encumbrances.
2 Whenever, owing to any sudden change in the channel of navigable river or other unforeseen emergency, it
becomes necessary for any Railway administration to acquire the immediate possession of any land for the
maintenance of other traffic or for the purpose of making there on a riverside or Ghat station, or it providing
convenient connection with or access to any such station, or the appropriate Government considers if
necessary to acquire the immediate possession of any land for the purpose of maintaining any structure or
system pertaining to irrigation, water supply, drainage road communication or electricity, the collector may,
immediately after publication of notice and with previous sanction of the appropriate Government, enter
upon and take possession of such land, which shall there upon vest absolutely in the Government, free from
all encumbrances. Before taking possession of a building or part of a building the collector shall give the
occupier at least forty eight hours notice to enable such occupier to remove his movable property from such
building without unnecessary inconvenience.
3 In every such case the collector shall at the time of taking possession after to the persons interested
compensation for the standing crops and trees on such land or for any other damage sustained by them
caused by such sudden dispossession.
Reference to Court and procedure thereon Reference to Court [S-18]
1 Any person interested who has not accepted the award may, by written application to the collector, require that
the matter be referred by the collector for determination of the Court. The objections could be to the
measurement of the land, the amount of the compensation, the persons to whom it is payable or the
apportionment of the compensation among the persons interested.
2 The application shall state the grounds on which objection to the award is taken.
Every such application shall be made within six weeks of from the date of collector's award, if
the person making it was present at the time of making of the award, in other cases within six weeks of the
receipt of the notice from the collector under section 12.
Service of Notice [S-20]
After receiving the collector statement in writing under his land giving details of reference required, the court
shall cause a notice to be served on the following persons.
a. the applicant.
b. all persons interested in the objection, except such of them who have consented without protest to
receive payment of the compensation awarded.
c. if the objection is in regard to the area of the land or to the amount of the compensation, the collector.
Restriction on the scope of Proceedings [S21] & [S22]
The scope of the enquiry in easy such proceedings shall be restricted to a consideration of the interest of the
persons affected by the objection, proceedings shall take place in open court and pleaders permitted.
Matters to Consideration in determining Compensation [S-23]
1 In determining the amount of compensation to be awarded for land acquired under this Act, the Court shall
take into consideration
a The market value of the land at the date of the publication of the notification under section -4
b The damage sustained by the person interested by reason of the taking of the standing crop or trees
which may be on the land at the time of the collectors' taking possession there of.
c The damage (if any) sustained by the person interested at the time of taking possession by the collector
by reason of severing such land from his other land.
d The damage (if any) sustained by the person interested at the time of collector's taking possession of the
land by reason of the acquisition injuriously affecting his other property movable or immovable in any
other manner or his earrings.
e If in consequence of the acquisition of the land by the collector, the person interested is compelled to
change his residence or place of business, the reasonable expenses (if any) incidental to such change,
and
f The damage (if any) bona fide resulting from diminution of the protects of the land between the time of the
publication of the declaration under section 6 and the time of Collector's taking possession of the land.
In addition to the market value of land, the court shall in easy case award an amount calculated at the rate of
twelve percent per annum on such market value for the period commencing the date of publication of the
notification under section 4 to the date of award of the Collector or the date of taking possession of the land,
whichever is earlier.
2 In addition to the market valve of the land, as above provided, the court shall in every case award a sum of
fifteen present on such market valve, in consideration of the compulsory nature of the acquisition.
Matters to be neglected in determining compensation [S-24]
The court shall not take into consideration.
1 The degree of urgency which led to the acquisition.
2. Any disinclination of the person interested to part with the land acquired.
 3. Any damage sustained by him, which if caused by a private person would not rends such person
liable to a suit.
4. Any damage which is likely to be caused to the land acquired after the date of the publication of the
declaration under section 6 or by consequence of the use to which it will be put.
5. Any increase to the value of the land acquired likely to accrue from use to which it will be put when
acquired.
6. Any increase to the value of the other land of the person interested likely to accrue from the use to
which the land acquired will be put
7. Any outlay or improvements on, or disposal of the land acquired, commenced, made or effected without
the permission of the collector after the date of publication of the notification under section 4.
8. Any increase to the value of the land on account of its being put to any use which is forbidden
by law or opposed to public policy.
Amount of compensation by court not to be lower than the amount awarded by the collector [S-15]
1 The amount of compensation awarded by the court shall not be less than the amount awarded by the
collector under section 11.
2 In addition to the market valve of the land, as above provided, the court shall in every case award a sum of
fifteen present on such market valve, in consideration of the compulsory nature of the acquisition.