20 May 2025 Arbitration Law >> Business & Commercial Law   |   Land Acquistion >> Property & Real Estate  

The Supreme Court in Union Of India & Others v/s Kesang Dorjee & Others, has overturned judgments from the Gauhati High Court that mandated the acquisition of 154.96 acres of land by the Union of India in Arunachal Pradesh. The land, located near the Line of Actual Control in Bona and Mayum villages, was taken possession of by the Indian Army on January 1, 2010, under the Requisitioning and Acquisition of Immovable Property Act, 1952 (the 1952 Act) for public purpose.

The core of the dispute arose because the landowners (Respondent Nos. 1-24) were dissatisfied with the compensation periodically assessed and paid by the Collector for the requisitioned land. They sought to compel the Union of India to acquire the land permanently, initially under the Land Acquisition Act, 1894, and subsequently under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the 2013 Act).

The Gauhati High Court, in its judgment dated December 18, 2019, directed the initiation of acquisition proceedings under the 2013 Act, seemingly based on a misunderstood settlement. This decision was upheld by the Division Bench and a subsequent review petition was dismissed.

The Supreme Court, however, raised two critical questions:

1. Whether the High Court, using its writ jurisdiction, could direct the State to compulsorily acquire land.
2. Whether land already requisitioned under the 1952 Act could be directed to be acquired under the 2013 Act.

The Supreme Court observed that the Indian Armed Forces' possession of the land is statutorily protected under Section 3 of the 1952 Act, which also provides a mechanism for compensation under Section 8. The Court noted that the government has no intention of acquiring the land outright, especially given its strategic location just six kilometers from the Line of Control.

Consequently, the Supreme Court ruled that the High Court exceeded its jurisdiction by directing the compulsory acquisition of the land. Instead, it emphasized that the 1952 Act provides for the appointment of an arbitrator to determine fair compensation if mutual settlement fails.

Therefore, the Supreme Court has set aside all impugned judgments of the Gauhati High Court. It has directed the Union of India to appoint an arbitrator within six weeks as per Section 8(1)(b) of the 1952 Act. The arbitrator is tasked with determining the compensation payable to the landowners within one year.

RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013  

Requisitioning and Acquisition of Immovable Property Act, 1952