Case: B. K. RAVICHANDRA &amp; ORS Vs. UNION OF INDIA &amp; ORS

2. Parliament, in exercise of the powers conferred upon the Union, enacted the Requisitioning and Acquisition of Immovable properties Act, 1952 (hereafter called the Requisitioning Act). It was brought into force on 15.03.1952. (By virtue of Section 1(3), the Act was initially temporary, and to remain in force for six years) The object of the Act was to enable the Union to requisition or acquire immovable property if the competent authority was of the opinion that any property was necessary for a public purpose. By Section 1(3), the Requisitioning Act was to be in force for six years. Section 3 clothed the Union with the power to requisition properties for any public purpose; Section 7 provided the procedure to requisition (or acquire) lands. It also spelt-out the condition precedents for exercise of the power. Section 8 provided for compensation with regard to property. Section 8(2) laid out the principles applicable for determination of compensation for the property as a recurring one . On 27.02.1958, the Requisitioning Act was amended and the period of its operation extended. In the meanwhile, the Defence of India Act, 1962 (hereafter referred to as the DIA) was enacted by Parliament empowering the Central Government with powers akin to those enacted under the Requisitioning Act. The Union invoked its powers under the DIA and requisitioned the three described properties which belonged to the predecessor of the appellants (hereafter referred to as the suit lands). These comprised of Survey Nos. 101/1 & 101/2 - the two survey numbers aggregating 2 acres 39 guntas and Survey No.104 (2 acre 8 guntas) in Byppanahalli, Bangalore South Taluk. The then owner, i.e. late B.M. Krishnamurthy, the appellants predecessor handed over the possession of the suit lands under protest; these were taken over under Section 30 of the DIA. The competent authority fixed the compensation for these lands by order dated 18.12.1964. The approval for this compensation fixation was given much later - in 1968.3. By Act 48 of 1963, Section 1(3) of the Requisitioning Act was amended, and the period of operation of the Requisitioning Act was extended till 14.03.1970. In the meanwhile, the DIA lapsed with effect from 10.01.1968. The Requisitioning Act was amended, incorporating Section 25, which enacted that the immovable property requisitioned under the DIA, which had not been released as on 10.01.1968 was deemed to have been requisitioned under the Requisition Act. It also continued the status quo with respect to determination of compensation completed under the DIA. This Amendment Ordinance was replaced by an actual amendment, to the Requisitioning Act. The Requisitioning Act was again amended in 1970 (Act 1 of 1970. The effect of this amendment Act was to change the temporary character of the legislation.) , to delete Section 1(3) of the main Act. The Amendment Act also enabled requisitioning of property and stated that requisitions were to be continued and were to be released after 12 years (subsequently the period of 12 years was extended to 17 years).4. In late 1972, the predecessor of the appellants felt that the compensation fixed for the suit lands was inadequate and applied for enhancement. This was in terms of the amendment of 1970 (because the land requisitioned in 1963 was deemed to have been continued by the Act of 1968). As required by Section 8 of the Requisitioning Act, this dispute was referred to an arbitrator under Section 8(2). The reference made was in respect of the amount of compensation payable, the recurring payments in respect of the periods of requisition and the sums equal to the rent that would have been payable for the occupation and use of the property and other sums towards 4 years of losses, i.e. pecuniary loss expense on account of the vacating of the requisitioned premises, expenses on account of reoccupying of premises after release from acquisition and damages other than normal repairs. At that point in time, Section 6(1A) contemplated retention of property for a total period of 3 years. Therefore, the recurring payment was in respect of a short duration. The period of requisition under Section 8(2A) for the purpose of compensation determination was, during the pendency of the reference, increased to five years.5. The reference was notified in a Gazette notification published by the Central Government. On 17.07.1975, the Arbitrator pronounced an Award which determined compensation as 6% per annum on the capital value of land, assessed at ? 3 per square foot accepting the land requisitioned to be in Survey nos.103/2 and 104 in Byppanahalli. The Central Government had, in the arbitration proceeding, contended that the suit lands had also been acquired by virtue of a prior notification. The arbitrator considered this contention too and after examining the award of the LAC held:From the evidence of RW-2 and also from the copy of the Ex-R-13 and possession certificate as per Ex.R-14, it is established that 24 guntas and 29 sq. yards of land in S. No.103/2 and 8 guntas of land and 22 yards of land in S. No.104 of Byyappanahali were acquired for the purpose of NGEF and possession was taken by NGEF deducting the said acquired portion of the land in S. No.103/2 and 104 of Byyappanahalli the claimant would be the owner of the said lands in ARE No.72-73.6. In view of the evidence it was also held that the appellants predecessor was entitled to receive compensation in respect of Survey No.104, deducting the portion of land acquired for the purposes of NGEF. This Award was made on 17.07.1975.7. The Requisitioning Act underwent a further amendment . Section 8(2B) stated that recurring payment would be revised by re-determining the amount. As a consequence of this amendment of 1975, the recurring payment required to be determined and fixed under Section 8(2) had to be first decided and fixed with effect from the date of commencement of the Act and again with effect from the expiry of five years from the commencement of the amending Act. The amending Act came into force on 07.03.1975.8. To continue the narrative, the arbitrators award was appealed against by the UOI. The award had determined compensation in terms of the DIA and later – since it lapsed in 1968, also having regard to the principles spelt-out in Section 8 of the Requisitioning Act as amended. On 21.07.1978, the Central Governments appeal was disposed of in terms of a joint memo filed by the parties by which it was agreed that the matter with respect to determination of compensation would be remanded/remitted for fresh adjudication; however, the compensation fixation of 10.01.1968 was agreed to be final and binding. The only caveat added was that the question of maintainability of appeals under Section 11 of the Requisitioning Act was pending before this Court in certain proceedings. However, the parties agreed that till disposal of appeal by the arbitrator, the compensation fixed @ ? 3 per square foot would be operative. It was further agreed that in case the appeals were not held to be maintainable, the compensation fixed by the award was to be treated as final. But on the other hand, if the appeal was held to be maintainable, the arbitrator had to decide the fixation of compensation for the period prior to 10.01.1968.9. By a judgment of this Court (Special Military Estates Officer v. Munivenkataramiah and Anr. 1990 (1) SCR 4  ) , it was held that an award covering the period of requisition can be challenged in appeal and that the award made under DIA was not appealable. Thus, the compensation fixation for the period upto 10.01.1968 in this case (when the requisition of suit lands was made under DIA) became final.10. On 28.01.1985, in the second arbitration proceeding, based on the fixation of compensation till 10.01.1968, it was held that the fixation of compensation till 10.01.1968 had to be accepted and basic fixation of rent was to be increased for over 5 years thereafter. The arbitrator then proceeded to fix the rental compensation payable per square foot for 3 distinct periods, i.e. 10.01.1968 to 10.01.1973 (@ ? 4.10 per square foot); 10.01.1973 to 10.01.1975 (@ ? 5.40 per square foot) and 10.01.1978 to 10.01.1985 (? Rs.10.20 per square foot). The parties appealed against this judgment. By common judgment and order (eported as Union of India v B.M. Krishnamurthy 1995 (4) KarLJ 607  ) in MFA 1405/1985, decided on 24.11.1994, a Division Bench of the Karnataka High Court noted that the issue as to the extent of land for which compensation had to be determined was one that required decision by the arbitrator. The High Court noted that there was no evidence to deduce whether notice under the Land Acquisition Act had been served, and that there was nothing to show when the award was made by the Collector, to support the Unions contention about the acquisition of certain portions of the suit land. These were, therefore, left for enquiry and fresh decision. The Court proceeded to decide on the issue of compensation and held that the agreed compensation in terms of the previous joint memo, i.e. for the period up to 10.01.1968 was final. The Division Bench further noted that the arbitrator was not bound to treat the amounts fixed for the period as on 10.01.1968 as the basic figure and proceed to increase the rent periodically. It was noted that the question of fixation for a period of five years arose after Section 8(2A) was introduced to the Requisitioning Act– thus the recurring compensation question had to be decided from 10.01.1968 and then from the commencement of the Amendment Act and again from the expiry of that Act. It, therefore, held, upon a reading of Section 8(2A) thatrecurring compensation payable in this case from 10.01.1968 to the commencement of the amendment Act 2 of 1975 upto 07.03.1975 shall be fixed and for the period 07.03.1975 it should be done as indicated in Section 8(2A).11. The award, therefore, was set aside and the matter was remitted for fresh consideration by the arbitrator. In this fresh (third) round, the arbitrator published two awards – one dealing with the extent of land, and the other the compensation payable. After examining all the evidence, including the documentary evidence, presented by the parties, as well as the oral testimony, i.e. the oral deposition on behalf of the UOI, it was held that Survey nos. 103/1 and 103/2 were not validly acquired by the Central Government and that Survey No.104 was validly acquired. The other award determined the land value and recurring annual value at different rates, which is set out below in a tabular form:12. Aggrieved by the two awards, both dated 28.02.2000, the Union preferred an appeal (MFA 2220/2002) before the Karnataka High Court. During its pendency, the widow of the late BM Krishnamurthy and the present appellants, her children, filed a writ petition (WP 8340/2006) claiming that since the period of requisition had ended and the suit lands had not been acquired, the possession of the Union after 1987 was untenable in law. In a judgment delivered on 11.01.2008 (i.e. the same day when the impugned judgment was pronounced) the Division Bench of the Karnataka High Court rejected the contentions of the Union vis-a-vis its acquisition of suit lands, or any part thereof, and noted that the court was concerned only with Sy. Nos. 103/1 and 103/2 for the period between 1968 and 2000 and so far as Sy. No. 104 is concerned, between the period 1968 and 1977, as the portion of the land measuring 11985.24 square feet undisputedly came to be acquired. It upheld the awards of the arbitrator fixing the compensation in 2000 and held that:Accordingly, in view of the discussion and reasoning stated above, we confirm the fact that neither Sy. No. 103/1 nor Sy. No. 103/2 ever came to be validly acquired by the authorities for the benefit of appellant herein. We hold the rental compensation computed by the arbitrator is just and proper.13. The Union sought special leave to appeal under Article 136 of the Constitution, against the said judgment dismissing its appeal SLP (C) CC No. 12634/2008. By order dated 10.09.2010, that special leave petition was dismissed, keeping it open for the Union to acquire the property, in accordance with law. Thus, as regards the question of ownership and the rental payable till the period 07.03.2000, the issue attained finality. By the impugned judgment delivered 11.01.2008, the Division Bench after considering the records, dismissed the appellants writ petition and held thatIt is also noticed from the records, originally the land in question came to be handed over to the defence authorities It is also noticed from the records, originally the land in question came to be handed over to the defence authorities by invoking the provisions of defence of India Act 1962 which act came to be repealed on 10.01.1968. By virtue of Section 25 of the Requisitioning Act, 1952, whatever has been done under the Defence Act of India, is presumed to have been done under the Requisitioning Act, therefore, u/s 6 of the Requisitioning Act, the authorities could not have held the property beyond 08.03.1987 at any cost. We say so because withing the said period, of 07.03.1987, apparently, there was no valid acquisition of properties by the concerned authorities as noted above.It is also brought to our notice that though portions of land in different Sy. Numbers adjacent to these lands came to be acquired in the year 1972 and also on earlier occasions, such acquisitions never came to be challenged by the respective owners and the defence authorities continued to be in possession of those properties as beneficiaries after acquiring the said lands by the competent authority. We notice that from the contentions of the defence authorities right from 1941 till date, about 600 acres is in possession of them and some of the lands are acquired other than the lands in question. This Sy. No. 103 seems to be in the centre of that 600 acres on this vast area of 600 acres which is enclosed by a fence by the authorities. They have put up firing range, buildings, parade ground etc.In that view of the matter, as we noted above already, at this late hour of the day, it would not be just and proper to direct the respondents to hand over the possession of those properties. In the connected MFA No. 2220/02, we have already approved the computation of rental compensation awarded by the arbitrator upto 07.03.2000. The petitioners are entitled to seek compensation for the subsequent period in accordance with law.The Respondents - defence authorities and the State Government are at liberty to initiate acquisition proceedings so far as these lands are concerned if they need in respect of property in Sy. No. 102/1 and 103/2 as well, for the benefit of the defence authorities.

Reasoning:
17. From the narration of events, it is clear that first, the suit properties were requisitioned in 1963, under the DIA. The amendment to the Requisition Act, which enacted Section 25 in 1968, had the effect of creating a deeming fiction that requisitions under the DIA were deemed to be under the Requisitioning Act. Thereafter, due to successive amendments to the Requisitioning Act, the period of requisition continued; it finally ended in 1987. In the meanwhile, the original landowner, late Krishnamurthy, sought and was granted a reference to arbitration, on the issue of compensation payable. The first award made in 1975, decided both the question of extent of land requisitioned (and also the land owned by the landowner). The award was questioned, but the appeal was disposed of by the High Court on 21.07.1978, on the basis of a joint memo. The fresh determination which was made through the award dated 28.01.1985, again re-determined the compensation payable for the period after 1.10.1968, using the capital value fixed earlier as the basis. This led to the judgment of the High Court Dated 24.11.1994 which held that there was no evidence to support the Unions contention that some part of the suit lands had been acquired. However, on that question as well as the issue of basis for the recurring compensation (as well as its computation), the dispute was remitted. This time, the arbitrator rendered two awards- one, deciding the question of ownership or its extent and the second, on the question of compensation determination. The Union appealed to the High Court; that appeal MFA 2220/2002 was dismissed by a judgment, delivered on the same day as the impugned judgment. The Unions special leave petition was dismissed 10 years ago (on 10.9.2010). This court left it open to the Union to take steps in accordance with law, with respect to the property. The impugned judgment too, held that the question of ownership had attained finality – and in favour of the appellants. That part of the judgment has not been appealed against by the Union.18. The legal effect of requisitioning immovable property, it goes without saying, is that temporarily- i.e. for the period the requisition order is in operation, the owner loses her possessory rights, even though the title remains undisturbed. Since the deprivation of possession is through authority of law, in keeping with fair procedure, the law (in this case, the Requisitioning Act) provides for payment of compensation in accordance with predetermined principles. Yet, the taking of property by definition is finite: it cannot result in expropriation or deprivation of title altogether, unless another process for acquiring it, is initiated.19. Whilst dealing with a similar enactment (The Bombay Land Requisition Act, 1948) this court, in Grahak Sanstha Manch v. State of Maharashtra ((1994) 4 SCC 192     at page 204) held through a Constitution Bench, that requisition, by its nature, is temporary and that the landowners right to property cannot remain suspended indefinitely, at the wishes of the state or its agencies:16. We find ourselves in agreement with the view taken in the cases of Collector of Akola [(1968) 1 SCR 401   : AIR 1968 SC 244  ] and Jiwani Kumar Paraki [Jiwani Kumar Paraki v. First Land Acquisition Collector, (1984) 4 SCC 612  ] that the purpose of a requisition order may be permanent. But that is not to say that an order of requisitioning can be continued indefinitely or for a period of time longer than that which is, in the facts and circumstances of the particular case, reasonable. We note and approve in this regard, as did this Court in Jiwani Kumar Paraki case [Jiwani Kumar Paraki v. First Land Acquisition Collector, (1984) 4 SCC 612  ] , the observations of the Nagpur High Court in the case of Mangilal Karwa v. State of M.P. [ILR 1955 Nag 34 : AIR 1955 Nag 153] which have been reproduced above. That the concept of requisitioning is temporary is also indicated by the Law Commission in its Tenth Report and, as pointed out earlier, by the terms of the said Act itself, as it originally stood and as amended from time to time. There is no contradiction in concluding that while a requisition order can be issued for a permanent public purpose, it cannot be continued indefinitely. Requisitioning might have to be resorted to for a permanent public purpose, to give an example, to tide over the period of time required for making permanent premises available for it. The concepts of acquisition and requisition are altogether different as are the consequences that flow therefrom. A landlord cannot, in effect and substance, be deprived of his rights and title to property without being paid due compensation, and this is the effect of prolonged requisitioning. Requisitioning may be continued only for a reasonable period; what that period should be would depend upon the facts and circumstances of each case and it would ordinarily, be for the Government to decide.21. Although the right to property is not a fundamental right protected under Part III of the Constitution of India, it remains a valuable constitutional right. The importance of this right has been emphasized and iterated several times by this court. In Delhi Airtech Services Pvt Ltd v. State of U.P (2011) 9 SCC 354     for instance, this court underlined the issue as follows:30. It is accepted in every jurisprudence and by different political thinkers that some amount of property right is an indispensable safeguard against tyranny and economic oppression of the Government. Jefferson was of the view that liberty cannot long subsist without the support of property. Property must be secured, else liberty cannot subsist was the opinion of John Adams. Indeed the view that property itself is the seed bed which must be conserved if other constitutional values are to flourish is the consensus among political thinkers and jurists.23. In a very recent judgment, D.B. Basnett v. Land Acquisition Officer, (2020) 4 SCC 572   at page 580 the court approved the findings of the courts below that the lands were never acquired, because the procedure prescribed was not followed; notice of acquisition had not been given, nor was any amount proved to have been received. The court also turned down the states plea of adverse possession, and granted relief in the following terms:20. We are conscious that the land is being used by the respondent State through Respondent 2 Department. That, however, does not give such a licence to the State Government. We had endeavoured to refer the matter for mediation, to find an amicable solution, but that did not fructify. We, however, would like to give some time to the respondent State to analyse the consequences of this judgment, and, in case they so desire, to acquire the land through a proper notification under the said Act, and to take proper recourse in law so as to enable them to keep the land. We grant three (3) months time from the date of the judgment for the respondent State to make up their mind as to what they want to do. Would they still like to retain the land by issuing a proper notification, or would they like to surrender possession of the land. In either eventuality, the question of payment for use and occupation would still arise, which will have to be determined in accordance with law. Mesne profits would be determined by a Court Commissioner, to be appointed by the trial court, as a relief in that behalf has been sought in the plaint itself.24. To sum up the facts, repeatedly the Union asserted that it had acquired at least some parts of the suit lands; these were examined by the High Court on two occasions, and in arbitration proceedings under the Requisitioning Act, on three occasions. Each time, the factual findings went against the Union. The Unions occupation ceased to be lawful, with the lapse of the Requisitioning Act, in 1987. Yet, it has implacably refused to hand back possession, each time asserting that it has some manner of rights over it. The High Court, while noticing that the Unions claim had no merits (in both its appeal, which was dismissed, as well as in the impugned judgment, disposing of the writ petition), nevertheless refused to issue any direction for the release of the suit lands. The rationale given was that the adjoining areas had been acquired and were used by the Union for defense purposes. What is more the impugned judgment granted indefinite time to the Union to take steps to acquire the suit lands. The Union has not chosen to do so these last 12 years. These facts paint a stark, even sordid picture.25. The United States of America set up an exclusive court (the United States Court of Federal claims, since 1866, referred to as keeper of the nations conscience to enable citizens to claim justice against the Federal government with a poignant motto . By contrast, the Indian experience has been that the governments, taking a cue from the English experience, initially asserted that they are not subject to the law insisting upon the continuation of the royal prerogative (by virtue of Article 372 of the Constitution) which enabled the crown in the UK to assert its right to insist that it was not bound by the law, unless there was express statutory intent . Mercifully, a later judgment (Superintendent and Remembrancer of Legal Affairs v. Corpn. of Calcutta, (1967) 2 SCR 170  ) overruled that understanding. In Superintendent and Remembrancer of Legal Affairs (supra, f.n. 29) this court held that23. The next question is whether this Court should adopt the rule of construction accepted by the Privy Council in interpreting statute visa-vis the Crown. There are many reasons why the said rule of construction is inconsistent with and incongruous. In the present setup we have no Crown, the archaic rule based on the prerogative and perfection of the Crown has no relevance to a democratic republic; it is inconsistent with the rule of law based on the doctrine of equality….26. It is, therefore, no longer open to the state: in any of its forms (executive, state agencies, or legislature) to claim that the law – or the constitution can be ignored, or complied at its convenience. The decisions of this court, and the history of the right to property show that though its pre-eminence as a fundamental right has been undermined, nevertheless, the essence of the rule of law protects it. The evolving jurisprudence of this court also underlines that it is a valuable right ensuring guaranteed freedoms and economic liberty. The phrasing of Article 300-A is determinative and its resemblance with Articles 21 and 265 cannot be overlooked- they in effect, are a guarantee of the supremacy of the rule of law, no less. To permit the state: whether the Union or any state government to assert that it has an indefinite or overriding right to continue occupying ones property (bereft of lawful sanction)– whatever be the pretext, is no less than condoning lawlessness. The courts role is to act as the guarantor and jealous protector of the peoples liberties: be they assured through the freedoms, and the right to equality and religion or cultural rights under Part III, or the right against deprivation, in any form, through any process other than law. Any condonation by the court is a validation of such unlawful executive behavior which it then can justify its conduct on the anvil of some loftier purpose, at any future time- aptly described as a loaded weapon ready for the hand of any authority that can bring forward a plausible claim of an urgent need.