State of Uttarakhand & Ors. v. Rajiv Berry & Ors.
Background
The State of Uttarakhand acquired land in Dehradun in 2004 to expand the Uttaranchal Secretariat, invoking the "urgency clause" of the Land Acquisition Act, 1894, which let it skip the normal objection-hearing stage and take possession before finalizing compensation. The land-owner respondent challenged the acquisition, and the Uttarakhand High Court struck it down in one case (giving rise to this appeal, C.A. No. 6900/2009) while upholding a similar acquisition in a connected case (giving rise to the dismissed C.A. No. 6901/2009 by a different land-owner).
Decision Breakdown
The Supreme Court held that the State was entitled to invoke the urgency provisions and take possession before paying full compensation, and that paying compensation a few weeks after taking possession did not by itself invalidate the acquisition: settled precedent (including Tika Ram vs State of U.P.) supported this. It also rejected the land-owners' claim that possession had only been taken "symbolically" without proper notice, since the record showed formal notice and possession certificates. Finding no fundamental flaw in the acquisition, the Court allowed the State's appeal (C.A. No. 6900/2009), setting aside the High Court's order striking down the acquisition, and consequently dismissed the companion appeal (C.A. No. 6901/2009) that had sought the same relief. It left open how compensation would ultimately be apportioned among claimants, directing that amount be determined under the newer 2013 compensation law.
Lesson Learnt
The government can lawfully take possession of privately owned land for a public project under the "urgency clause" before compensation is fully paid, as long as it follows the required notice and possession procedures: a short gap between taking possession and paying compensation does not automatically make the acquisition illegal.