D.B. Basnett (D) Through LRs v. The Collector
Background
In 1980, the Sikkim government's Agriculture Department took over land belonging to the appellant's father to build an orchard research centre, claiming it had followed proper acquisition procedure and paid compensation. Decades later, the appellant discovered the land had allegedly been encroached upon and sued for recovery of possession, arguing that the government never actually followed the legally required acquisition process under Sikkim's land acquisition law. The trial court dismissed the suit, and while the High Court agreed on limitation issues being resolved in the appellant's favour, it still dismissed the case on merits.
Decision Breakdown
The Supreme Court found that the State could produce no notification of acquisition, no proof of the actual amount paid, and no receipt confirming compensation was ever received, only a covering letter and an unverifiable claim of a cash payment of Rs. 62,645. The Court held that depriving a citizen of property requires strict, documented compliance with the legally prescribed acquisition process, and the right to property remains a constitutional right under Article 300A even though no longer a fundamental right. Since the government failed to prove it had followed due process, the Court allowed the appeal, ruled the appellant entitled to possession and damages for unlawful use, but gave the State three months to decide whether to initiate a fresh, lawful acquisition or hand back the land.
Lesson Learnt
The government cannot take over a citizen's private land merely by claiming compensation was paid: it must be able to produce actual documentary proof of a lawful acquisition notification and payment; absent that proof, even decades-old government possession can be undone.