New Delhi, August 12, 2023 

Supreme Court of India, presided over by Justices Surya Kant and Dipankar Datta, highlighted the significance of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (2013 Act) while rendering a significant decision. 

The Court underscored that the provision of fair compensation under the 2013 Act requires a fair opportunity of hearing for individuals whose rights are impacted by land acquisition. The ruling emphasized that adhering to the prescribed procedure is crucial to fulfill the legislative intent of ensuring just compensation and safeguarding the rights of affected parties.

The case, titled M/ S. TIRUPATI DEVELOPERS v. THE UNION TERRITORY OF DADRA AND NAGAR HAVELI & ORS., CIVIL APPEAL NO.4952 OF 2023, pertains to the acquisition of a 4970 sq. meters land parcel in Village Amli, Silvassa, Union Territory of Dadra & Nagar Haveli, under the ambit of the 2013 Act.

In the course of its deliberations, the Court meticulously examined various facets of the 2013 Act. It underscored that the objective behind issuing notices under Section 21 of the act is to offer interested parties a fair and reasonable opportunity to present their claims regarding compensation for acquired land. This compensation is to be determined based on a variety of relevant factors.

Section 23 of the 2013 Act imposes an obligation on the Collector to conduct an inquiry into pertinent matters, including objections raised by concerned individuals. The Collector is then required to issue an award addressing the exact area of the acquired land, the compensation to be granted as per Section 27 of the Act, and the apportionment of this compensation among all parties with vested interests in the land.

In the current case, the Court observed that the Appellant had not been afforded a hearing as per the stipulations of Section 21 of the 2013 Act. This resulted in the absence of objections that the Appellant could have presented, due to factors beyond their control. Consequently, no inquiry as prescribed by Section 23 of the Act could be conducted.

In light of this, the Court held that the Appellant is entitled to seek fair market value and must be granted an opportunity to raise objections. It directed the Collector, respondent no.3, to issue a fresh notice to the Appellant under Section 21 of the 2013 Act within two weeks of the receipt of the order's copy. 

The Appellant is expected to submit any objections within the stipulated timeframe. Subsequently, the Collector is mandated to conduct an inquiry and pass a fresh award after considering the submissions in line with the provisions of the 2013 Act.

This decision underlines the judiciary's commitment to ensuring fair compensation and a transparent process in land acquisition matters. It reaffirms the importance of giving affected parties a genuine chance to voice their concerns and assert their rights in accordance with the law.