U.P. Avas Evam Vikas Parishad vs. Chandra Shekhar and Ors.
Background
The U.P. Avas Evam Vikas Parishad (Housing Board) had proposed to acquire land, including Khasra No. 673 in village Hariharpur, Lucknow, for a housing scheme under the U.P. Avas Evam Vikas Parishad Adhiniyam, 1965. The respondents claimed the land was mutated in their favour in 1999, but by the time of acquisition, revenue records showed different persons as owners: persons the respondents alleged were fraudulently entered into the records. The Board issued the acquisition notice only to those recorded owners, not the respondents. The Allahabad High Court quashed the acquisition of this plot, holding that the respondents were denied a fair opportunity to object.
Decision Breakdown
The Supreme Court agreed that no individual or public notice had ever properly covered Khasra No. 673, so the acquisition process for that plot could not stand, upholding the High Court's core finding. However, since a genuine title dispute existed between the respondents and the persons recorded as owners, the Court declined to declare who was the true owner. Instead of restarting the entire cumbersome acquisition procedure, the Court directed the Housing Board's authorities to issue fresh notice, hear objections, and pass a compensation award (calculated under the newer 2013 land acquisition law, since the 1894 Act had since been repealed) within set deadlines, with the compensation held in a bank deposit until the ownership dispute is finally resolved by a competent court.
Lesson Learnt
When land is acquired for a public project but a title dispute exists over who the rightful owner is, courts will protect the public interest in completing already-substantially-developed projects while ensuring fair compensation is preserved (in an interest-bearing account) for whoever is eventually proven to be the true owner: a person cannot be deprived of due notice and a chance to object just because someone else's name was placed on the revenue records.