SC split on land owners' compensation under Land Acquisition Act

The Supreme Court Thursday delivered a split verdict on the question of return of land to original owners if the government, after acquiring the same, failed to pay compensation within the stipulated period of two years under the Land Acquisition Act.

In view of their conflicting views, the bench of justices Asok Kumar Ganguly and Swatanter Kumar referred the issue to a larger bench.

While Justice Ganguly ruled the government was bound to pay compensation within the two years even in acquisition proceeding initiated under the emergency provision of Section 17 of the Act, Justice Swatanter Kumar took the view that non-compliance of the provision would not vitiate the acquisition proceedings and the land would not revert back to original owners.

In this case, M/s Delhi Airtech Services appealed to the Supreme Court pleading the land acquired by the UP Government for industrial purpose in NOIDA Sector 88 reverted back to it as the authorities even three years after taking possession of the premises in February, 2003, failed to pay the compensation of Rs8 crore.

The government acquired the land under the emergency provision provided under Section 17 which dispensed with the requirement of giving a hearing to the owners before acquiring the land.