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IN THE SUPREME COURT OF INDIA

CIVIL  APPELLATE  JURISDICTION

CIVIL APPEAL NO. 1346  OF 2016 (Arising from S.L.P. (C) No.20678/2010)

CHANDRAKANT ADINATH UTTURE … APPELLANT (S)   

VERSUS

STATE OF MAHARASHTRA & OTHERS …  RESPONDENT (S)

WITH

CIVIL APPEAL NO. 1348 OF 2016 (Arising from S.L.P. (C) No. 20816/2010)

AND

CIVIL APPEAL NO.  1350 OF 2016 (Arising from S.L.P. (C) No.22455/2010)

J U D G M E N T  

KURIAN, J.:

Leave granted.    

2. The Maharashtra  Project  Affected  Persons  Rehabilitation  

Act,  1986 (hereinafter referred to as “the Act”) is a piece of  

legislation  intended  for  rehabilitation  of  persons  affected  on  

implementation of certain projects in the State of Maharashtra  

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REPORTABLE

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on  the  lands  acquired  from  the  zones  benefitted  by  the  

projects. The Act is applicable to all irrigation projects of which  

the area of the affected zone exceeds 50 Hectares or the area  

of  the  benefitted  zone  exceeds  200  Hectares  or  where  a  

gaothan is affected. The State Government is also entitled to  

make the Act applicable to other projects as well to which the  

Act  is  applicable.  The  affected  zone  is  defined  as  the  area  

declared under Section 13 of the Act to constitute the extent of  

the area affected under a particular  project.  Benefitted zone  

means  the  area  declared  under  Section  13  of  the  Act  to  

constitute the area of the benefitted zone under the project.  

Rehabilitation  under  the  scheme  of  the  Act  of  the  affected  

persons is done mainly by acquiring lands coming under the  

benefitted zone. In the present case, it is the Chikotra project.  

3. Under Section 13 of the Act, the State Government has to  

make a declaration of areas in affected and benefitted zones  

and also the extent of land to be acquired in the benefitted  

zone is as per the slabs mentioned in Part II of the Schedule. As  

far as extent of area constituting the affected zone under the  

project and the extent of area constituting the benefitted zone  

is concerned, it is clearly provided under Section 13(2) of the  

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Act that a public notice inviting objections or suggestions is to  

be  issued.  After  considering  the  objections  and  suggestions  

only,  a notification under Section 13 (1) of the Act could be  

published  in  the  official  gazette  and  by  other  modes  of  

publication as provided under the Act.  

4. In the instant case, there is no dispute on that procedure.  

The dispute is in a narrow compass. In the gazette notification  

originally  published,  the  slab  under  Part  II  was  Slab  III  

whereunder there is no acquisition in case the holding in the  

benefitted zone is not more than 3 Hectares and 23 Ares. Under  

all  slabs,  larger  the  holding,  proportionately  larger  is  the  

acquisition.  After publishing the notification under Section 13  

with Slab III on 04.03.1994, another notification was published  

on 26.07.1995 changing the slab under       Part II from Slab III  

to Slab I wherein the exemption from acquisition is only where  

the size of holding is not more than 1 Hectare and 61 Ares.  

Under Slab I (if the size of the benefitted holding is more than 1  

Hectare and 61 Ares but not more than 2 Hectares and 42 Ares,  

the area to be acquired is that in excess of 1 Hectare and 61  

Ares (the exempted area under Slab I) but not more than 40  

Ares). If the size of the holding is more than 2 Hectares and 42  

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Ares and not more than 3 Hectares and 23 Ares (the exempted  

size of the holding under Slab III), the area to be acquired is the  

area in excess of 2 Hectares and 2 Ares but not more than 80  

Ares.  

5. The simple question is, in case there is a change in slab or  

area  to  be  acquired,  after  the  publication  of  the  first  

notification, should there be a notice to those whose lands will  

be acquired on account of the change in the slab.  

6. The  High  Court  in  the  impugned  judgment  dated  

07.06.2010,  has  taken  the  view  that  the  public  notice  for  

hearing under Section 13 of the Act need only be in respect of  

the lands in the affected zone and benefitted zone and there is  

no requirement under the Act or under law, for  notice when  

there is a change in the slab, and hence, the appeals.  

7. Being a pure question of law, it is not necessary to delve  

deep into the facts and yet we shall refer to a few dates.  

8. Notices under Section 13(2) of the Act inviting objections  

with respect to lands in the affected and benefitted zones were  

published  on  20.09.1993,  22.11.1993  and  03.12.1993.  After  

considering the objections, the notification under Section 13(1)  

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of  the  Act  was  issued  and  published  in  the  gazette  on  

04.03.1994. There were around 500 project affected khatedars  

and the land estimated for the rehabilitation was around 653  

Hectares. As per the notified Slab III, exempted size of holding  

being upto the extent of 3.43 Hectares, the land available for  

acquisition  was  only  around  179  Hectares,  as  per  the  

respondent. However, if the slab was changed from Slab III to  

Slab I, the land available for acquisition would be around 548  

Hectares. It was hence and in that context, another notification  

was published on 26.07.1995 changing the slab from Slab III to  

Slab  I.  According  to  the  appellants,  though  there  is  no  

requirement  under  Section  13  of  the  Act  for  a  notice  and  

hearing  while  issuing  a  notification  for  the  first  time  under  

Section 13(1) of the Act, when there is a change in the slab  

reducing the exempted area, the affected persons are entitled  

to notice.  

9. In order to appreciate the contention, we have to analyse  

the scheme of the Act under Sections 13 and 14 of the Act  

dealing  with  the  declaration  of  areas  in  the  affected  and  

benefitted zones and the Schedule. Sections 13 and 14 read as  

follows:

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“Section 13: Declaration of areas in affected  or benefitted zones

(1)  The  State  Government  shall,  by  notification in the Official Gazette and also by  publication of such notification in the manner  provided  in  sub-section  (2)  of  section  11,  declare-

(a)  the  extent  of  area  which  shall  constitute  the  area  of  affected  zone  under the project; (b) if the project is an irrigation project,  the extent of area which shall constitute  the  area  of  benefitted  zone  under  the  project; (c) which of the slabs mentioned in Part  II  of  the  Schedule  shall  apply  to  such  project for the purpose of acquisition of  land in the benefitted zone.

(2) Before publishing a notification under sub- section (1), the Collector shall  give a public  notice  inviting  objections  or  suggestions  in  respect of the lands falling under clauses (a)  and (b)  of  sub-section  (1),  by  publishing in  the  manner  specified  in  sub-section  (2)  of  section  11  and  also  in  the  Official  Gazette  and  in  one  daily  newspaper  in  the  Marathi  language  circulating  in  the  local  area  comprising  such  villages  and  areas  of  affected  and  benefitted  zone.  Any  person  interested  in  the  land  in  such  areas  may  make,  objections  or  suggestions,  if  any,  to  the Collector within 30 days from the date on  which such public notice is published by beat  of drum in the village or area concerned or  the  date  on  which  it  is  published  in  the  newspaper  as  aforesaid,  whichever  is  later;  and  the  Collector  shall,  with  all  reasonable  dispatch,  forward  any  objections  or  suggestions so made together with his report  

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in  respect  thereof to the State Government  and  on  considering  the  report  and  the  objections and suggestions, if any, the State  Government  may  pass  such  order  as  it  deems fit. (3)  If  at  any  time  during  the  course  of  execution of a project, the project authority is  satisfied  that  any  change  in  the  areas  mentioned  in  the  notification  under  subsection  (1)  is  necessary,  it  shall  communicate such change with reasons and  the  plans  and  particulars  relating  to  the  change to the State Government through the  Collector. (4)  On receipt  of  the communication under  sub-section  (3)  and  the  report  of  the  Collector, if any, the State Government may  after  considering  the  reasons  given  by  the  project authority and in the report, if any, of  the  Collector  and  making  such  enquiry,  if  any, as it thinks fit, make such change in the  manner laid down in sub-sections (1) and (2).

Section  14:  Power  to  acquire  land  for  purposes of this Act

(1)  The  State  Government  or  the  Collector  authorised by it by general or special order in  this behalf may enter into an agreement with  any person for the purchase or exchange of  any  land  required  for  carrying  out  the  purposes of this Act:

Provided that, the amount paid under an  agreement under this sub-section shall  not  be  less  than  the  amount  of  compensation payable for the land, had  it been acquired in accordance with the  provisions of sub-section (2).

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(2) Subject to the provisions of this section,  the State Government may for  carrying out  the  purposes  of  this  Act,  also  compulsorily  acquire land under the Land Acquisition Act,  1894 (I of 1894); and the acquisition of any  land  for  any  of  the  said  purposes  shall  be  deemed  to  be  a  public  purpose  within  the  meaning of that Act. (3) The State Government may also acquire  lands included in a gaothan in the affected  zone as far  as practicable according to the  provisions of Part I of the Schedule. (4) For the purpose of rehabilitating affected  persons  from  the  affected  zone  under  an  irrigation project,  including those under any  irrigation  project  who have remained to  be  rehabilitated, on land, the State Government  may  acquire  land  from  holdings  in  the  benefitted  zone of  the  project  according  to  the  slab  declared  in  the  notification  under  sub-section (1)  of  section 13 and may also  acquire,  where  necessary,  land  from  any  other villages or areas, as it may deem fit. (5) All lands acquired under this section shall  form part of the land pool.”  

10. Slab I  and Slab III  in Part  II  under the Schedule,  to the  

extent relevant, read as follows:

“Size of holding (1)

Area to be acquired (2)

Slab I (a) Not more than 1 Hectare  and 61 Ares.

(a) NIL

(b) More than 1 Hectare and  61 Ares and not more than 2  Hectares and 42 Ares.

(b) The area in excess of  1  Hectare  and  61  Ares  but  not  more  than  40  

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Ares. (c) More than 2 Hectares and  42 Ares and not more than 3  Hectares and 23 Ares.

(c) The area in excess of  2  Hectares  and  2  Ares  but  not  more  than  80  Ares.

(d) More than 3 Hectares and  23 Ares and not more than 3  Hectares and 4 Ares.

(d) The area in excess of  2 Hectares and 42 Ares  but  not  more  than  1  Hectare and 21 Ares.

xxx                           xxx                      xxx Slab III

(a) Not more than 3 Hectares  and 23 Ares.

(a) NIL

(b) More than 3 Hectares and  23 Ares and not more than 4  Hectares and 4 Ares.

(b) The area in excess of  3 Hectares and 23 Ares  but  not  more  than  40  ares.

xxx                            xxx                          xxx”

11. Under Section 13 of the Act, before the State Government  

makes a notification in the official gazette declaring the extent  

of area constituting affected and benefitted zones and the slab  

under Part II of the Schedule, the Collector has to give a public  

notice  under  Section  13(2)  of  the  Act  inviting  objections  or  

suggestions in respect of the lands falling under the affected  

zone and benefitted zone. The mode of publication is gazette  

and  daily  newspaper  in  Marathi  having  circulation  in  the  

respective areas. The Collector has to forward a report on the  

objections or suggestions made by the persons interested in  

the lands coming under the affected or benefitted zone and the  

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State Government has to pass appropriate orders on the report  

on the objections and suggestions. Only after completing the  

process as above under sub-Section (2) of Section 13 of the  

Act, a notification of the affected and benefitted zones and the  

slab under Part II of the Schedule can be published. Under sub-

Section (3), if, at any time, during the course of execution of a  

project,  in  case,  any  change  in  the  areas  mentioned  in  the  

notification  under  sub-Section  (1)  becomes  necessary,  such  

change  can be made only  in  the  manner  laid  down in  sub-

Sections (1) and (2). As per the first notification under Section  

13(1) of the Act published on 04.03.1994, since the slab was  

Slab III, there was no acquisition where the size of the holding  

in the benefitted zone is not more than 3 Hectares and 23 Ares;  

however, as per the subsequent notification dated 26.07.1995  

published under Section 13(1), since there is a change of slab  

from Slab III to Slab I, there is acquisition from those who hold  

land more than 1 Hectare and 61 Ares. It is certainly a change  

as perceived under sub-Section (3) and such a change can be  

brought out during the course of execution of a project only in  

the manner laid down in sub-Sections (1) and (2) of Section 13  

of the Act. The reason is that any adverse change in the slab  

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would have its impact on the extent on the lands in benefitted  

zone.  That  zone in  the  process  gets  reduced.  In  the  instant  

case, while publishing the second notification on 26.07.1995,  

the procedure under sub-Section (2), admittedly, has not been  

followed.

12. It  may be seen that the whole purpose of notice under  

sub-Section (2) of Section 13 of the Act is to invite objections or  

suggestions in respect of the lands falling under the affected or  

benefitted zone. By change of slab, as noted above, there is  

change in the area of the benefitted zone and that change can  

be  brought  out  only  on  following  the  procedure  under  sub-

Section (2) after considering the objections and suggestions.  

13. Sub-Section (4) of Section 14 of the Act is also another  

indicator  on  the  requirement  of  notice.  The  Government  is  

permitted to acquire land even from any other villages or areas  

for the purpose of rehabilitating the affected persons from the  

affected zone or for rehabilitating those under any project who  

have remained to be rehabilitated. Once there is a change in  

the  notification  on  the  slab  reducing  the  size  of  exempted  

holding, the people thus affected should get a chance to make  

their objections and suggestions, so that the Government may  

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consider  the report  of  the Collector  on those objections  and  

suggestions, before issuing a revised notification under Section  

13(1) of the Act.  

14. Learned  Counsel  for  the  respondent-State  submits  that  

pursuant  to  the  notifications  issued  under  the  Act,  further  

steps, as noted below, have been taken for acquisition of the  

land:

Sl. No. Date Particular 1. 21.09.200

0

Notification  under  Section  4  of  Land  Acquisition  Act  was  published  in  Government  Gazette.

2. Notice  u/s.  4(1)  of  the  Land  Acquisition Act was given to the  petitioner.

3. 28.11.200

0

Objections  raised  by  the  petitioner  u/s.5(1)  of  the  Land  Acquisition Act were heard.

4. 14.12.200

1

Declaration  u/s.  6  of  Land  Acquisition Act was published in  Government Gazette.

5. 15.01.200

2

The  notice  u/s.9(3)(4)  of  the  Land Acquisition Act was issued  to the petitioner.

6. 21.01.200

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Final Award has been declared”

15. Passing of  the  award by itself  does  not  mean that  any  

illegality should not be addressed. In the instant case, the writ  

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petitions were filed when the declaration under Section 6 of the  

Act  was  published,  and  in  any  case,  it  is  submitted  by  the  

appellants that they have not been dispossessed so far and no  

compensation also has been paid.

16. Therefore, the High Court is not right in holding that the  

requirement of notice on objections and suggestions need only  

be in respect of the lands coming under Section 13(1)(a) of the  

Act (the affected zones) and Section 13(1)(b) of the Act (the  

benefitted zones). The High Court is right, however, in holding  

that no notice is required in respect of the lands belonging to  

the slab under Section 13(1)(c) of the Act, when it is issued for  

the first time. However, in case there is a change in the slab  

reducing  the  area  of  exemption  from  acquisition  in  the  

benefitted zone, the procedure under Section 13 (2) of the Act  

is required to be followed.

17. For  the  above  reasons,  these  appeals  are  disposed  of  

permitting the appellants to prefer their objections or submit  

their suggestions on the change of slab from Slab III to Slab I  

before the Collector within one month from today. The Collector  

shall make appropriate inquiry on the objections or suggestions  

and forward his report to the State Government within another  

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two  months.  The  State  Government  shall  pass  appropriate  

orders on the report within another two months. Depending on  

the orders thus passed by the Government, the Collector shall  

revise the awards already passed, if required. The appeals are  

allowed to the above extent.  

18. There shall be no order as to costs.   

..……………..……………………J.                                                            (KURIAN JOSEPH)

……………..……………………J.                     (ROHINTON FALI NARIMAN)

New Delhi; February 15, 2016.  

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