Landowners Not Entitled To Compensation Under RFCTLARR Act If No Award Declared U/s. 11 Of 1894 Act Due To Interim Orders – SC
A two-judge bench of Justice M. R. Shah, and Justice B. V. Nagarathna has held that landowners would not be entitled to receive compensation under Section 24(1) of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 when an award under Section 11 of the Land Acquisition Act 1894 could not be made owing to the pendency of writ petition before the Court and/or Interim Stay issued by the Court.
Facts & History of  the Case
Aggrieved by the Order of the Allahabad High Court directing the Development Authorities (Appellants) to pay compensation to the original landowners as per the Land Acquisition Act, 2013, on grounds that when the Act came into force, no award was issued under Section 11 of the Act, the Development Authorities approached the Supreme Court.
In this regard, 4 appeals were presented before the Court, which were heard together and disposed of.
The Original  landowners challenged the acquisition of three plots via a Writ Petition filed  before the High Court. The High Court initially granted an interim stay, restricting  the Faizabad Development Authority from taking over said properties. The  possession of the remaining properties was taken over in 2005 and an award under  Section 11 of the 1894 Act was issued in 2007. In 2010, the High Court disposed  of the Writ Petition, directing the State Government to consider the  application filed by the landowners under Section 48(1) of the 1894 Act.  However, the appropriate authority rejected the application of the landowners  and they filed a Writ Petition before the High Court, again. While the Writ  Petition was pending before the High Court, the 2013 Land Acquisition Act came  into force and the landowners submitted that they would be entitled to  compensation based on Section 24(1) of the 2013 act, as no award was issued  under Section 11 of the 1894 Act.
On that, the High Court allowed the Writ Petition and held that the landowners would be entitled to compensation under Section 24(1) of the 2013 Act.
The Moradabad  Development Authority (Appellant) was directed by the High Court to declare an award towards compensation under Section 24(1) of the 2013 Act to the original  landowners. The petitioners had challenged the acquisition proceedings citing  that the award was not made within 2 years of publication of the declaration under  Section 6 of the 1894 Act, which had led to the lapse of acquisition under  Section 11A of the 1894 Act. The Appellant argued that the declaration of the award  could not be made in view of the Writ Petition that was pending before the High  Court.
Issue  – Whether in the case where an award under Section 11 of Land Acquisition Act, 1894  could not be declared due to pendency of writ petition and/or interim stay and  post the Land Acquisition Act of 2013 coming into force, no award being  declared under Section 11 of the Act of 1894, the original landowners shall be  entitled to compensation under Section 24(1) of the Act of 2013.
Shri  V.K. Shukla, Senior Advocate appearing on behalf of the Development Authorities  (Appellants) contended that the Land Acquisition Officer could not declare the  award due to the pendency of the respective Writ Petitions before the High Court. Shukla  further argued that in certain cases, 80% of the compensation was already  deposited, but the award under Section 11 of the 1894 Act could not be declared  due to the pendency of the Writ Petitions before the High Court and as such  there was no inaction on the part of the Land Acquisition Officer and/or the  Development Authority.  Relying on Indore  Development Authority Vs. Manoharlal and Ors., (2020)  where it was observed, that the act(s) that  the law does not compel a person to perform an impossible act(s) and that where  the law creates a duty or charge and the party obliged to carry out such a duty  is disabled to perform it, without any default or remedy, the law will excuse  him from carrying out such duty. It was also held that the 2013 Act does not  intend to work in favor of litigators to enable them to receive higher  compensation under Section 24 of the 2013 Act.
Shri  S.R. Singh Senior Advocate representing the original landowners – original writ  petitioners also relied on Indore Development Authority Vs. Manoharlal  and Ors., (2020)  to argue that  when no award is declared under Section 11 of the 1894 Act, the landowner  becomes entitled to compensation under Section 24(1) of the act of 2013, upon  its commencement. Further, Singh also argued that no special provision was made  in Section 24(1) of the 2013 Act to exclude the period of interim stay and/or  pendency of writ petition.
Upon close examination,  the court noted that Section 11A(1) of the Act of 1894 provides for the  computation of the period during which any action or proceeding is pending before a  court by order to be excluded while calculating lapse of land acquisition  proceedings.
The Bench also observed  that – " the land owner cannot, on the  one hand, assail the acquisition and seek interim orders restraining the  authorities from proceeding further in the acquisition, and on the other hand,  contend that since no award has been made under Section 11 of Act, 1894 on  01.01.2014, the provisions of the Act, 2013 should be made applicable in  determining the compensation."
Held
Applying the principle of restitution as applied by the court in Indore Development Authority Vs. Manoharlal and Ors., (2020), the Apex Court has held that – the landowners shall not be entitled to compensation under Section 24(1) of the Act of 2013, in the case where an award under Section 11 of Land Acquisition Act, 1894 could not be declared due to pendency of writ petition and/or interim stay and post the Land Acquisition Act of 2013 coming into force.