A top court bench of Justices M B Lokur, Kurian Joseph and Deepak Gupta, was critical of the February 8 verdict passed by another three-judge bench holding that compensation not availed within a stipulated five year period would not be a ground for cancellation of land acquisition.
The bench said perhaps there have been a tinkering with judicial discipline in arriving at a conclusion as the issue should have been to referred to a larger bench in case of difference of opinion, as a 2014 verdict had held that non-payment of compensation would be a ground to cancel the land acquisition.
On February 8, a three-judge bench of Justices Arun Mishra, Adarsh Goel and M M Shantanagoudar had held that that once the compensation amount for land acquired by a government agency has been unconditionally tendered but the land owner refuses it, this would amount to payment and discharge of obligation on part of the agency.
The court had also held then that it will not be open to the person, who has refused the compensation, to raise the point that since the amount has not been deposited in court or paid to him, the acquisition has lapsed.
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In a 2:1 majority view, the bench had then held the 2014 verdict in the Pune Municipal Corporation case was passed without due regard to the law (as per incuriam) and said that the land acquired could not be quashed due to delay on part of land owners in accepting compensation within five years due to litigation or other reasons.
"Be very clear, this is a matter of judicial discipline, judicial propriety and consistency. Can a three judge bench over rule a three judge bench verdict?. It has to be referred to a larger bench in case of difference of opinion," Justice Joseph said.
He said that "correctness of judgement can be doubted but the bench of similar strength of judges cannot 'hold' that the judgement rendered by the earlier one was wrong. Such a system works on hierarchy and it needs to be preserved".
It also restrained all high courts from entertaining or passing any order on land acquisition matters on the basis of February 8 verdict and listed the matter for further hearing on March 7.
Incidentally, the 2014 verdict was rendered unanimously by former Chief Justice R M Lodha, Justices Kurian Joseph and M B Lokur, holding that "the deposit of compensation amount in the government treasury is of no avail and cannot be held to be equivalent to compensation paid to the landowners/persons interested".
At the outset, senior advocate Mukul Rohatgi said that due to the recent verdict, a two judge bench of Justices Arun Mishra and Amitava Roy has been dismissing the cases in the wake of verdict.
"Yesterday, 60 cases were disposed of. On February 16, some cases were disposed. Then on February 19, some cases were dismissed in the wake of verdict. Due to retirement of one of the judges, urgency is shown by the bench and is not ready to defer the matter," he said.
He said that the operation of February 8 verdict has to be immediately be stopped and the cases listed before the bench needs to be deferred till the matter is finally adjudicated on the issue of reference to a larger bench.
Rohatgi who was critical of the verdict, said that the view of three-judge bench will open the flood gates in apex court and this court as the cases which were decided based on 2014, verdict, will now be sought to be reviewed.
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