# Sursati v. State of U.P. & Ors

- **Citation:** (2020) 8 ILRA 187
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2020-01-22
- **Case number:** Writ-C No. 30608 of 2018
- **Bench:** Bala Krishna Narayana, Ravi Nath Tilhari
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/sursati-v-state-of-u-p-ors-46013
- **Pages:** 21

## Headnote

A. Civil Law - National Highways Act,
1956 - Section 3-C, 3-D, 3-E (1) - Land
Acquisition Act, 1894 - Sections 4, 5A,
6, 9, 11 and 17 - Subsequent Purchaser -
Right of Compensation - The right of the
subsequent
purchaser
to
receive
compensation on the strength of his vendor's
title has been judicially recognized - Right of a
subsequent purchaser, appears to be still
substituting under the National Highways Act,
1956, even if the sale is made after publication
of declaration under Section 3D(1) - The sale
shall be void against the Government as it was
earlier. But the same shall not deprive
subsequent
purchaser
from
receiving
compensation of the acquired land on the
strength of vendor's title. (Para 24 and 36)
B. Civil Law - National Highways Laws
Amendment Act, 1997 - Scope and Objects -
The object was to reduce delay and make speedy
implementation of highway projects - In order to
expedite the process of land acquisition, it was
proposed, once the Central Government declares
188 INDIAN LAW REPORTS ALLAHABAD SERIES
that the land is required for public purposes for
development of a highway, that land will vest in
the Government and only the amount by way of
compensation is to be paid and any dispute
relating to the compensation will be subject to
adjudication through process of arbitration - The
object of the Amendment Act 1997 was not to
deprive the subsequent purchaser, after the
notification of declaration under Section 3D (1), of
his right to receive compensation of the acquired
land on the strength of his vendor's title. (Para 33
and 35)
C.
Procedure
of
Court
-
Judicial
Discipline - Conflicting judgments on the
point in issue - On the one hand there is
judgment in Surendra Nath Singh Yadav and
on the other the judgments in the cases of
Asha Devi, Vipin Agrawal and Smt. Gyanti
Singh - Former case held that the subsequent
purchaser has a right to receive compensation
but the later case took a contrary view -
Judicial discipline requires that if two Division
Benches of the same High Court take
different views, the matter should be referred
to a larger bench - Case referred to the Full
Bench. (Para 38, 39 and 42)

Petition referred to Full Bench (E-1)

Cases relied on :-

## Text

_Characters 0–39,969 of 68,849. This is a partial read: ask again with offset=39969 for what follows._

8 All. Sursati Vs. State of U.P. & Ors.
187
by exercising power in the manner as
contemplated under Section 37 of Act of
1973, clauses 10(3) and 11(2) of
Government
Order
dated
27.9.2002
would have no application. These clauses
otherwise have no role to play in the
current statutory scheme, as already
discussed above.

30. From the deliberations and
discussions aforesaid, this Court is of the
considered view that the University
established under the Act of 1973 once
admits a college to the privileges of
affiliation as per Section 37 of the Act of
1973, after introduction of amendment
vide U.P. Act No.14 of 2014, it has to be
treated as continuing and would not be
restricted to a limited period, unless such
privileges are withdrawn in accordance
with Section 37(8) and (9) of the Act of
1973. This would be the position in
respect of all cases of grant of affiliation
after the introduction of U.P. Act No.14
of 2014. It is further held that Clauses
10(3) and 11(2) of the Government Order
dated 27.9.2002 would not be a relevant
consideration for the purposes of grant of
affiliation to a college after 18.7.2014
when Section 37 was amended vide U.P.
Act No.14 of 2014. Exercise of power by
the Executive Council, for the purposes
of imposing conditions for grant of
affiliation would have to be restricted to
the conditions specified in the Statutes of
the University. Since the privileges of
affiliation to the petitioners have been
held to be continuing as such the benefits
denied to them only on the ground that
their affiliation is limited/temporary and
not permanent cannot be sustained. All
the writ petitions are disposed of with the
direction that University would pass
needful orders in light of the aforesaid
observation,
expeditiously,
preferably
within a period of one month from the
date of presentation of certified copy of
this order. No order is passed as to costs.
----------
(2020)08ILR A187
ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 22.01.2020

BEFORE

THE HON'BLE BALA KRISHNA
NARAYANA, J.
THE HON'BLE RAVI NATH TILHARI, J.

Writ-C No. 30608 of 2018

Sursati ...Petitioner
Versus
State of U.P. & Ors. ...Respondents

Counsel for the Petitioner:
Sri Ajay Kumar Singh
Counsel for the Respondents:
C.S.C., Sri Devendra Kumar, Sri Pramod
Kumar Pandey

A. Civil Law - National Highways Act,
1956 - Section 3-C, 3-D, 3-E (1) - Land
Acquisition Act, 1894 - Sections 4, 5A,
6, 9, 11 and 17 - Subsequent Purchaser -
Right of Compensation - The right of the
subsequent
purchaser
to
receive
compensation on the strength of his vendor's
title has been judicially recognized - Right of a
subsequent purchaser, appears to be still
substituting under the National Highways Act,
1956, even if the sale is made after publication
of declaration under Section 3D(1) - The sale
shall be void against the Government as it was
earlier. But the same shall not deprive
subsequent
purchaser
from
receiving
compensation of the acquired land on the
strength of vendor's title. (Para 24 and 36)
B. Civil Law - National Highways Laws
Amendment Act, 1997 - Scope and Objects -
The object was to reduce delay and make speedy
implementation of highway projects - In order to
expedite the process of land acquisition, it was
proposed, once the Central Government declares
188 INDIAN LAW REPORTS ALLAHABAD SERIES
that the land is required for public purposes for
development of a highway, that land will vest in
the Government and only the amount by way of
compensation is to be paid and any dispute
relating to the compensation will be subject to
adjudication through process of arbitration - The
object of the Amendment Act 1997 was not to
deprive the subsequent purchaser, after the
notification of declaration under Section 3D (1), of
his right to receive compensation of the acquired
land on the strength of his vendor's title. (Para 33
and 35)
C.
Procedure
of
Court
-
Judicial
Discipline - Conflicting judgments on the
point in issue - On the one hand there is
judgment in Surendra Nath Singh Yadav and
on the other the judgments in the cases of
Asha Devi, Vipin Agrawal and Smt. Gyanti
Singh - Former case held that the subsequent
purchaser has a right to receive compensation
but the later case took a contrary view -
Judicial discipline requires that if two Division
Benches of the same High Court take
different views, the matter should be referred
to a larger bench - Case referred to the Full
Bench. (Para 38, 39 and 42)

Petition referred to Full Bench (E-1)

Cases relied on :-

1. Surendra Nath Singh Yadav Vs UOI; 2018
(2) ADJ 768

2. Writ C No. 9874 of 2018; Asha Devi
VsNHAL & 4 ors. decided on 16.3.2018
3. Writ C No. 12158 of 2018; Smt. Gyanti
Singh Vs St. of U.P. & ors. decided on
3.5.2018
4. Writ C No. 10958 of 2018; Vipin Agrawal
Vs U.O.I decided on 27.3.2018
5. V. Chandrashekharan Vs Administrative
Officer; (2012) 12 SCC 133
6. Government (NCT) of Delhi Vs Manav
Dharm Trust; (2017) 6 SCC 751
7. U.P. Jal Nigam Vs Kalara Properties (P)
Ltd.; (1996) 3 SCC 124
8. Sneh Prabha (Smt.) Vs St.of U.P. & anr,
(1996) 7 SCC 426
9. Rajasthan Housing Board Vs New Pink City
Nirman Sahkari Samiti; (2015) 7 SCC 601
10. M. Venktesh & ors. Vs Commissioner,
Bangalore Development Authority; (2015) 17
SCC 1
11. Shiv Kumar & ors. Vs U.O.I. & ors.;
(2019) 10 SCC 229
12. Union of India Vs Tarsem Singh; AIR 2019
SC 4689
13. Usha Kumar Vs St. of Bihar; (1998) 2SCC
44
14. Rajasthan Public Commission & ors.Vs
Hari; (2003) 5 SCC 480

(Delivered by Hon'ble Ravi Nath Tilhari, J.)

1. Heard Sri Ajay Kumar Singh,
learned counsel for the petitioner, learned
Standing Counsel for Respondent Nos. 1
to 5 and Sri Devendra Kumar, learned
Counsel
for
National
Highways
Authority of India, Respondent No.6.

2. The petitioner has filed this
petition for the following main reliefs:-

"(A) Issue an appropriate writ
order or direction in the nature of
mandamus commanding the respondents
and directing them (specially respondent
No.3 and 5) to decide the claim of the
petitioner
regarding
to
ensure
the
payment of compensation with respect of
Arazi No. 535 area 0.0580 hectare which
is acquisition the land of the petitioner.

(B) Issue an appropriate writ
order or direction in the nature of
mandamus commanding the respondents
and directing them to decide the
representation of the petitioner within
stipulated period, which is pending
8 All. Sursati Vs. State of U.P. & Ors.
189
before the respondent No.3 and 5 since
24th February, 2018."

3. Facts of the case are that one
Smt. Ram Dulari widow of late Pataru
son of Sugriv executed a sale deed dated
21.1.2016 in favour of petitioner for an
area of 0.430 hectare out of 0.05804
hectare of gata No. 535 situated in Mauja
Pirthipur, Pargana Pachotar, District
Ghazipur. On the basis of the said sale
deed the petitioner's name was recorded
as Bhumidhar in the revenue records on
11.3.2016. Later on, the petitioner
acquired knowledge that the land of gata
No. 535, purchased by her had already
been acquired vide notification under
Section 3D of the National Highways
Act, 1956. In the notification annexed as
Annexure No.3 the name of the original
land holder was mentioned in Column
34.
The
petitioner
filed
many
applications for correction of her name in
place of the name of transferor and for
payment
of
compensation
for
the
acquired land to the petitioner in view of
the sale deed but the payment has yet not
been made.

4. The Repondent Nos. 1 to 5 have
set up the case that the Government of
India issued two notifications dated
1.12.2014 and 27.11.2015 under Section
3A and 3D of the National Highways Act,
1956, for widening of National Highway
No. 29, by which the aforesaid land was
also acquired. The petitioner purchased the
land in question on 22.1.2016 after
publication of the notification and as such
the sale deed being void ab initio, the
petitioner
has
no
right
to
claim
compensation, hence, the representation of
the petitioner is of no consequence.

5. The Project Director National
Highways district Gorakhpur has taken a
stand that the role of the National
Highways Authority of India in respect of
land acquisition is limited to the
depositing of the awarded amount of
compensation
with
the
competent
authority. It has also taken a stand that
the petitioner's sale deed dated 21.1.2016
is illegal and it is for the competent
authority to act according to law.

6. Smt. Ram Dulari, the petitioner's
transferor Respondent No.7, having died
during pendency of the writ petition, was
substituted by her grand son Respondent
No. 7/1 who has stated in the counter
affidavit that the petitioner is entitled for
payment of compensation of the acquired
land which was transferred to the
petitioner and for payment of such
compensation to the petitioner he has no
objection.

7.

Learned
counsel
for
the
petitioner has argued that the petitioner
having purchased the land from its tenure
holder, may be after the notification
under Section 3D of the Act 1956, is
entitled for payment of compensation
which is being denied illegally by
Respondent Nos.1 to 5. He has submitted
that the subsequent purchaser has also a
right to receive compensation of the
acquired land on the strength of the
vendor's title. He has placed reliance on
the judgment passed by a coordinate
Bench of this Court in the case of
Surendra Nath Singh Yadav Vs. Union
of India decided on 16.1.2018 reported
in 2018 (2) ADJ 768.

8. Per contra, learned Standing
Counsel for respondent Nos. 1 to 5 and
Sri Devendra Kumar learned counsel for
Respondent No. 6 have submitted that
190 INDIAN LAW REPORTS ALLAHABAD SERIES
the subsequent purchaser of the land
acquired under the National Highways
Act 1956, has no right to claim or receive
compensation on the strength of the sale
deed after declaration under Section 3D(2), which is void ab initio. They have
placed reliance on the judgment of this
Court by other coordinate Benchs in the
case of Asha Devi Vs. National
Highways Authority of India and four
others Writ C No. 9874 of 2018 (DB)
decided on 16.3.2018; the case of Smt.
Gyanti Singh Vs. State of U.P. and
others Writ C No. 12158 of 2018 (DB)
decided on 3.5.2018 and the case of
Vipin Agrawal Vs. Union of India Writ
C No. 10958 of 2018 (DB) decided on
27.3.2018.

9. We have heard the submissions
advanced by the learned counsel for the
parties and have thoroughly considered
the judgments cited from both the sides.

10. The short question involved in
the present writ petition is "whether the
petitioner who is a subsequent purchaser
vide sale deed dated 21.1.2016 after the
date of notification for acquisition of land
under Section 3-D (1) of the National
Highways Act, 1956, has a right to claim
and receive compensation of the acquired
land from the State?

11. It is relevant to reproduce
Sections 4, 5A, 6, 9, 11 and 17 of the
Land Acquisition Act, 1894 as under:

"4.
Publication
of
preliminary notification and powers of
officers thereupon:

(1) Whenever it appears to the
appropriate Government that land in any
locality is needed or is likely to be
needed for any public purpose or for a
company a notification to that effect shall
be published in the Official Gazette and
in two daily newspapers circulating in
that locality of which at least one shall be
in the regional language, and the
Collector shall cause public notice of the
substance of such notification to be given
at convenient places in the said locality
the last of the dates of such publication
and the giving of such public notice,
being hereinafter referred to as the date
of publication of the notification.

(2) Thereupon it shall be lawful
for any officer, either, generally or
specially authorised by such Government
in this behalf, and for his servants and
workmen, to enter upon and survey and
take levels of any land in such locality; to
dig or bore in the sub-soil; to do all other
acts necessary to ascertain whether the
land is adapted for such purpose; to set
out the boundaries of the land proposed
to be taken and the intended line of the
work (if any) proposed to be made
thereon; to mark such levels, boundaries
and line by placing marks and cutting
trenches; and, where otherwise the
survey cannot be completed and the
levels taken and the boundaries and line
marked, to cut down and clear away any
part of any standing crop, fence or
jungle:

Provided that no person shall
enter into any building or upon any
enclosed court or garden attached to a
dwelling-house (unless with the consent
of
the
occupier
thereof)
without
previously giving such occupier at least
seven days' notice in writing of his
intention to do so.

5A. Hearing of objections. (1)
Any person interested in any land which
has been notified under section 4, subsection (1) as being needed or likely to be
needed for a public purpose or for a
Company may, within thirty days from
8 All. Sursati Vs. State of U.P. & Ors.
191
the date of the publication of the
notification, object to the acquisition of
the land or of any land in the locality, as
the case may be.

(2) Every objection under subsection (1) shall be made to the Collector
in writing, and the Collector shall give
the objector an opportunity of being
heard in person or by any person
authorised by him in this behalf or by
pleader and shall, after hearing all such
objections and after making such further
inquiry, if any, as he thinks necessary,
either make a report in respect of the
land, which has been notified under
section 4, sub-section (1) or make
different reports in respect of different
parcels of such land, to the Government
containing his recommendations on the
objections, together with the record of the
proceedings held by him, for the decision
of that Government. The decision of the
appropriate
Government
on
the
objections shall be final.

(3) For the purposes of this
section, a person shall be deemed to be
interested in land who would be entitled
to claim an interest in compensation if
the land were acquired under this Act.

6. Declaration that land is
required for a public purpose.

(1) Subject to the provisions of
Part VII of this Act, when the appropriate
Government
is
satisfied,
after
considering the report, if any, made
under section 5A, sub-section (2), that
any particular land is needed for a public
purpose, or for a Company, a declaration
shall be made to that effect under the
signature
of
a
Secretary
to
such
Government or of some officer duly
authorised to certify its orders and
different declarations may be made from
time to time in respect of different parcels
of any land covered by the same
notification under section 4, sub-section
(1), irrespective of whether one report or
different reports has or have been made
(wherever required) under section 5A,
sub-section (2)]:

[Provided that no declaration
in respect of any particular land covered
by a notification under section 4, subsection (1).

(i)
published
after
the
commencement of the Land Acquisition
(Amendment and Validation) Ordinance,
1967 (1 of 1967) but before the
commencement of the Land Acquisition
(Amendment) Act, 1984 shall be made
after the expiry of three years from the
date of the publication of the notification;
or

(ii)
published
after
the
commencement of the Land Acquisition
(Amendment) Act, 1984, shall be made
after the expiry of one year from the date
of the publication of the notification:]

[Provided further that] no suh
declaration nshall be made unless the
compensation to be awarded for such
property is to be paid by a Company, or
wholly or partly out of public revenues or
some fund controlled or managed by a
local authority.

[Explanation 1. In computing
any of the periods referred to in the first
proviso, the period during which any
action or proceeding to be taken in
pursuance of the notification issued
under section 4, sub-section (1), is stayed
by an order of a Court shall be
excluded.]

Explanation
2-
Where
the
compensation to be awarded for such
property is to be paid out of the funds of
a corporation owned or controlled by the
State,
such
compensation
shall
be
deemed to be compensation paid out of
public revenues.
192 INDIAN LAW REPORTS ALLAHABAD SERIES

(2) [Every declaration] shall be
published in the Official Gazette, [and in
two daily newspapers circulating in the
locality in which the situate of which at
least one shall be in the regional language,
and the Collector shall cause public notice
of the substance of such declaration to be
given at convenient places in the said
locality (the last of the date of such
publication and the giving of such public
notice, being hereinafter referred to as the
date of publication of the declaration), and
such declaration shall state] the district or
other territorial division in which the land
is situate, the purpose for which it is
needed, its approximate area, and where a
plan shall have been made of the land, the
place where such plan may be inspected.

(3) The said declaration shall
be conclusive evidence that the land is
needed for a public purpose or for a
Company, as the case may be; and, after
making
such
declaration,
the
[appropriate Government] may acquire
the
land
in
manner
hereinafter
appearing.

9
Notice
to
persons
interested:

(1) The Collector shall then
cause public notice to be given at
convenient places o or near the land to
be taken, stating that the Government
intends to take possession of the land,
and that claims to compensation for all
interests in such land may be made to
him.

(2) Such notice shall state the
particulars of the land so needed, and
shall require all persons interested in the
land to appear personally or by agent
before the Collector at a time and place
therein mentioned (such time not being
earlier than fifteen days after the date of
publication of the notice), and to state the
nature of their respective interests in the
land and the amount and particulars of
their claims to compensation for such
interests, and their objections ( if any) to
the measurements made under section 8.
The Collector may in any case require
such statement to be made in writing and
signed by the party or his agent.

(3) The Collector shall also
serve notice to the same effect on the
occupier (if any) of such land and on all
such persons known or believed to be
interested therein, or to be entitled to act
for persons so interested, as reside or
have agents authorised to receive service
on their behalf, within the revenue
district in which the land is situate.

(4) In case any person so
interested resides elsewhere, and has no
such agent the notice shall be sent to him
by post in a letter addressed to him at his
last known residence, address or place of
business and registered under sections 28
and 29 of the Indian Post Office Act,
1898 (6 of 1898)].

11. Enquiry and award by
Collector

[(1)] On the day so fixed, or
any other day to which the enquiry has
been adjourned, the Collector shall
proceed to enquire into the objections (if
any) which any person interested has
stated pursuant to a notice given under
Section 9 to the measurements made
under Section 8, and into the value of the
land at the date of the publication of the
notification under Section 4, sub-section
(1)], and into the respective interests of
the persons claiming the compensation,
and shall make an award under his hand
of-

(i) the true area of the land;

(ii) the compensation which in
his opinion should be allowed for the
land; and
8 All. Sursati Vs. State of U.P. & Ors.
193

(iii) the apportionment of the
said compensation among all the persons
known or believed to be interested in the
land, of whom, or of whose claims, he
has information, whether or not they
have respectively appeared before him:

[Provided that no award shall
be made by the Collector under this subsection without the previous approval of
the appropriate Government or of such
officer as the appropriate Government
may authorise in this behalf.

Provided further that it shall be
competent
for
the
appropriate
Government to direct that the Collector
may make such award without such
approval in such class of cases as the
appropriate Government may specify in
this behalf.]

[(2)] Notwithstanding anything
contained in sub-section (1), if at any
stage of the proceedings, the Collector is
satisfied that all the persons interested in
the land who appeared before him have
agreed in writing on the matters to be
included in the award of the Collector in
the form prescribed by rules made by the
appropriate
Government,
he
may,
without making further enquiry, make an
award according to the terms of such
agreement.

(3)
the
determination
of
compensation for any land under subsection (2) shall not, in any way affect
the determination of compensation in
respect of other lands in the same locality
or elsewhere in accordance with the
other provisions of this Act.

(4) Notwithstanding anything
contained in the Registration Act, 1908
(16 of 1908), no agreement made under
sub-section (2) shall be liable to
registration under that Act.]

17. Special powers in cases of
urgency-

(1)
In
cases
of
urgency,
whenever the [appropriate Government],
so directs, the collector, though no such
award has been made, may, on the
expiration of fifteen days from the
publication of the notice mentioned in
section
9,
sub-section
(1),
[take
possession of any land needed for a
public
purpose].
Such
land
shall
thereupon
[vest
absolutely
in
the
[Government],
free
from
all
encumbrances.

(2) Whenever, owing to any
sudden change in the channel or any
navigable river or other unforeseen
emergency, it becomes necessary for any
Railway Administration to anquire the
immediate possession of any land for the
maintenance of their traffic or for the
purpose of making thereon a river-side or
ghat station, or of providing convenient
connection with or access to any such
station, [or the appropriate Government
considers it necessary to acquire the
immediate possession of any land for the
purpose of maintaining any structure or
system pertaining to irrigation, water
supply, drainage, road communication or
electricity,]
the
Collector
may,
immediately after the publication of the
notice mentioned in sub-section (1) and
with the previous sanction of the
[appropriate Government], enter upon
and take possession of such land, which
shall thereupon [vest absolutely in the
[Government]
free
from
all
encumbrances:

Provided that the Collector
shall not take possession of any building
or part of a building under this subsection without giving to the occupier
thereof at least forty eight hours notice of
his intention so to do, or such longer
notice as may be reasonably sufficient to
enable such occupier to remove his
194 INDIAN LAW REPORTS ALLAHABAD SERIES
movable property from such building
without unnecessary inconvenience.

(3) In every case under either
of
the
preceding
sub-sections
the
Collector shall at the time of taking
possession offer to the persons interested,
compensation for the standing crops and
trees (if any) on such land and for any
other damage sustained by them caused
by such sudden dispossession and not
excepted in section 24; and, in case such
offer is not accepted, the value of such
crops and trees and the amount of such
other damage shall be allowed for in
awarding compensation for the land
under the provisions herein contained.

[(3A) Before taking possession of any
land under sub-section (1) or sub-section
(2), the collector shall, without prejudice to
the provisions of sub-section (3),

(a) tender payment of eighty
per centum of the compensation for such
land as estimated by him to the persons
interested entitled thereto, and

(b) pay it to them, unless
prevented by some one or more of the
contingencies mentioned in section 31,
sub-section (2),

and where the Collector is so
prevented, the provisions of section 31,
sub-section (2), (except the second
proviso thereto), shall apply as they
apply to the payment of compensation
under that section.

(3B). the amount paid or
deposited under sub-section (3A), shall
be taken into account for determining the
amount of compensation required to be
tendered under section 31, and where the
amount so paid or deposited exceeds the
compensation awarded by the Collector
under section 11, the excess may, unless
refunded within three months from the
date of the Collector's award, be
recovered as an arrear of land revenue.]

[(4)] In the case of any land to
which, in the opinion of the [appropriate
Government], the provisions of sub-section
(1) or sub-section (2) are applicable, the
[appropriate Government] may direct that
the provisions of section 5A shall not apply,
and, if it does so direct, a declaration may
be made under section 6 in respect of the
land at any time [after the date of the
publication of the notification] under section
4, sub-section (1)].

12.

Thus
under
the
Land
Acquisition Act vesting of acquired land
takes place on possession being taken
under section 16 or section 17 of the Act,
1894.

13. So far as the National Highways
Act, 1956 is concerned, Section 3A
confers the power on the Central
Government to acquire land etc. on being
satisfied that for a public purpose any
land is required for the building,
maintenance, management or operation
of a national highway or part thereof, by
notification in the official Gazette,
declaring its intention to acquire such
land.
Section
3-C
provides
for
opportunity of hearing of objections to
the person interested in the land and the
order to be passed by the competent
authority on those objections. Section 3D provides for declaration of acquisition.
Under
Sub-Section
(1)
where
no
objection under Section 3-C(1) has been
made to the competent authority within
the specified period or where the
competent authority has disallowed the
objection under section 3-C (2), the
competent authority shall as soon as may
be submit a report to the Central
Government and on receipt of such
report, the Central Government shall
declare by notification in the Official
8 All. Sursati Vs. State of U.P. & Ors.
195
Gazette, that the land should be acquired
for purpose or purposes mentioned in
sub-section (1) of Section 3-A. Subsection (2) of Section 3-D provides that
on the publication of the declaration
under sub-section (1), the land shall vest
absolutely in the Central Government
free from all encumbrances.

14. It it is relevant to reproduce
Section 3-D of National Highways Act,
1956, as under:-

"3-D.
Declaration
of
acquisition-

(1) Where no objection under
sub-section (1) of section 3-C has been
made to the compentent authority within
the period specified therein or where the
competent authority has disallowed the
objection under sub-section (2) of that
section, the competent authority shall, as
soon as may be, submit a report
accordingly to the Central Government
and on receipt of such report, the Central
Government shall declare, by notification
in the Official Gazette, that the land
should be acquired for the purpose or
purposes mentioned in sub-section (1) of
section 3A.

(2) On the publication of the
declaration under sub-section (1), the
land shall vest absolutely in the Central
Government free from all encumbrances.

(3) Wherein respect of any
land, a notification has been published
within a period of one year from the date
of publication of that notification, the
said notification shall cease to have any
effect.

Provided that in computing the
said period of one year, the period or
periods during which any action or
proceedings to be taken in pursuance of
the notification issued under sub-section
(1) of section 3A is stayed by an order of
a court, shall be excluded.

(4) A declaration made by the
Central Government under sub-section
(1) shall not be called in question in any
court or by any other authority.

It it also relevant to reproduce
Section 3E of the National Highways
Act, 1956 as follows:

3-E. Power to take possession-

(1) Where any land has vested
in the Central Government under subsection (2) of section 3-D, and the
amount determined by the competent
authority under section 3-G with respect
to such land has been deposited under
sub-section (1) of section 3-H, with the
competent authority by the Central by the
Central
Government,
the
competent
authority may by notice in writing direct
the owner as well as any other person
who may be in possession of such land to
surrender or deliver possession thereof to
the competent authority or any person
duly authorised by it in this behalf within
sixty days of the service of notice.

(2) If any person refuses or
fails to comply with any direction made
under sub-section (1), the competent
authority shall apply-

(a) in the case of any land
situated in any area falling within the
metropolitian area, to the Commissioner
of Police;

(b) in case of any land situated
in any area other than the area referred
to in clause (a), to the Collector of a
District, and such Commissioner or
Collector, as the case may be, enforce the
surrender of the land, to the competent
authority
or
to
the
person
duly
authorised by it."

15. Thus, under the National
Highways Act, on the publication of the
196 INDIAN LAW REPORTS ALLAHABAD SERIES
declaration under sub-section (1) of
Section 3-D the land vests absolutely in
the Central Government, free from all
encumbrances. It is not dependent upon
taking of possession.

16. In the case of Surendra Nath
Singh Yadav (supra) the notification
under Section 3A of The National
Highways Act, 1956 was published on
1.12.2014 and the notification under
Section 3-D (1) of the Act, 1956 was
published on 24.9.2015. The petitioner
therein had purchased the land from its
earstwhile owner, vide registered sale
deed
dated
22.7.2016,
after
the
notification under Section 3A and 3-D (1)
of the Act, 1956. The Division Bench of
this
Court,
after
considering
the
judgments of the Hon'ble Apex Court in
V.
Chandrashekharan
Vs.
Administrative Officer reported in
(2012) 12 SCC 133; and Government
(NCT) of Delhi Vs. Manav Dharm
Trust reported in 2017 (6) SCC 751,
held that the subsequent purchaser, is a
person interested only to the extent of
claiming compensation of the land,
subject matter of acquisition, and, as
such, right of compensation
being
claimed by the petitioner therein was
worthy of consideration. This Court
directed
the
Land
Acquisition
Officer/Additional District Magistrate,
(Finance and Revenue), Gandhipur to
consider
the
representation
of
the
petitioner
therein
(the
subsequent
purchaser) for making payment of
compensation to him.

It is relevant to reproduce
paragraphs 4 to 8 of the case of
Surendra Nath Singh Yadav (supra), as
under:

"(4) It is well settled proposition
of law by judicial pronouncement of the
Apex Court that purchaser of the land
subsequent to initiation of the acquisition
proceedings has no locus standi to
challenge the acquisition proceedings but
certainly he is a person interested in the
compensation.

(5) Reference may be made to
the decision of the apex Court in the case
of Vs. Chandrasekaran v. Administrative
Officer, (2012) 12 SCC 133 wherein it
has been held as under:

(6) The same view has been
reiterated in a recent decision of the apex
Court in the case of Government (NCT of
Delhi) v. Manav Dharm Trust and
another, (2017) 6 SCC 751.

(7) In view of the settled law on
the subject, subsequent purchaser is a
person interested only to the extent of
making a claim of compensation of the
land, subject matter of acquisition.

(8) In view of above, right of
compensation being claimed by the
petitioner is worthy of being considered.
However,
since
the
issue
involves
adjudication into a question of fact, we
feel appropriate that the fact finding
authority may consider the claim of the
petitioner at the initial stage."

17. In the case of Asha Devi
(supra) the Division Bench of this Court
held that the sale deed executed in favour
of a person, subsequent to the publication
of the declaration under Section 3-D (I)
of the Act, 1956, is void ab initio and
does not confer any right upon such
person to claim compensation. It is
relevant to reproduce relevant portion of
the judgment of Asha Devi (supra) as
under:-

"Section 3-D(2) of the Act
provides that on publication of the
8 All. Sursati Vs. State of U.P. & Ors.
197
declaration under Section 3-D(1), the
land shall vests absolutely in the Central
Government free from all encumbrances.
In the present case, the declaration under
Section 3(D) was published on 27
November 2015. The person from whom
the
petitioner
purchased
the
land,
therefore, did not have any title on 11
February, 2016 to sell the land to the
petitioner. The sale deed executed in
favour of the petitioner is, therefore, void
ab initio and does not confer any right
upon
the
petitioner
to
claim
compensation. At best the petitioner can,
if so advised, file a Suit against the
vendor for recovery of the amount and
for consequential reliefs"

18. In Asha Devi Case (supra) the
judgment of the co-ordinate bench in
Surendra Nath Singh Yadav (supra) does
not find mention and appears not to have
been brought to the notice of this Court.

19. In the case of Vipin Agrawal
(supra) it has been held that on
publication of the declaration in the
official gazette under Section 3-D(1) of
the National Highways Act, 1956, the
land vests absolutely in the Central
Government free from all encumbrances
and thereafter the erstwhile owner is left
with no title to such land and any sale
deed executed thereafter would be void
ab initio and would not confer any right
on the subsequent purchaser to receive
compensation.

20. In Vipin Agrawal case (supra)
this Court considered the case of
Surendra Nath Singh Yadav (supra)
and held that the case of Government of
( NCT of Delhi) Vs. Manav Dharm
Trust 2017 (6) SCC 751, and relied upon
in Surendra Nath Singh Yadav (supra),
was under the provisions of the Land
Acqusition Act, 1894, and as such it was
not applicable to the acquisitions made
under the National Highways Act, 1956,
in as much as under the Land Acquisition
Act,
the
property
vests
in
the
Government free from all encumbrances
either under section 16 or under Section
17 on possession being taken and not on
the publication of declaration under
Section 6; whereas under the National
Highways Act, 1956, the land vests in the
Government free from all encumbrances
on publication of the declaration under
Section 3D (1). It is relevant to reproduce
portion of Vipin Agrawal case (supra) as
follows:

"It is, therefore, clear that on
receipt of the report, the Central
Government declares by notification in
the official gazette that the land should
be acquired for the purpose mentioned in
sub-section (1) of Section 3A. Sub-section
(2) of Section 3 provides that on the
publication of the declaration under subsection (1), the land shall vest absolutely
in the Central Government free from all
encumbrances. Thus, on publication of
the declaration in the official gazette on
7 August 2012, the land stood vested in
the Central Government free from all
encumbrances and the erst while owner
did not have any right to execute the sale
deed in favour of the petitioner. The sale
deed was executed by the petitioner is
void ab initio and does not confer any
right upon the petitioner to receive
compensation.

Learned
counsel
for
the
petitioner has placed reliance upon a
Division Bench of this Court in Surendra
Nath Singh Yadav v. Union of India and
Others reported in 2018 (2) ADJ 760.
This decision relies upon the decision of
the Supreme Court in the case of
198 INDIAN LAW REPORTS ALLAHABAD SERIES
Government (NCT) of Delhi) v. Manav
Dharam Trust and Another reported in
(2017) 6 SCC 751 which is in connection
with the acquisition under the provisions
of the National Highways Act, 1956.
Unlike the provisions of sub-Section
3D(2) of the Act under the Land
Acquisition Act, the property vests in the
State
Government
free
from
all
encumbrances either under Section 16 or
under Section 17, on possession being
taken and not on the publication of the
declaration under Section 6 of the Act.

Thus, the decision in the case of
Surender Nath, does not help the
petitioners. The petitioners can initiate
appropriate proceedings against the erst
while owner."

21. In the case of Smt. Gyanti
Singh (supra) it was held that in the light
of the law laid down in the case of Vipin
Agrawal (supra) the sale deed executed
after declaration, as per Section 3D (2) of
National Highways Act, 1956, was void
ab initio and did not confer any right on
the
vendee/
transferee
to
claim
compensation.
Relevant
portion
of
Gyanti Singh Case (supra) is as under:

"Suffice to mention, in the
instant matter the declaration as per
Section 3-D of the National Highways
Act, 1956 was made on 27 November,
2015 and the sale deed was executed on
7 April, 2017. In this factual background
and in the light of the law laid down in
the case of Vipin Agarwal, the sale deed
is void ab initio and that does not create
any right of the petitioner to claim
compensation."

22. Thus, in Surendra Nath Singh
Yadav (supra) the subsequent purchaser
has been held entitled to receive
compensation of the land acquired under
the
National
Highways Act,
1956
although the sale took place after the
notification under Section 3-D (1);
whereas in Asha Devi (Supra), Vipin
Agarwal (supra) and Gyanti Singh
(supra), the coordinate Benches have
held that the subsequent purchaser has no
right to receive compensation. Surendra
Nath Singh case (supra) has been
distinguished on the ground that the
Judgment of the Supreme Court in
Manav Dharm Trust Case (supra) was
under the Land Acquisition Act, 1894,
and not under the National Highways
Act, 1956.

23. The basic distinction as pointed
out in the case of Vipin Agarwal (supra)
is that under the Land Acquisition Act,
1894, vesting takes place after taking of
possession
in
pursuance
of
the
notification under Sections 4 and 6,
either under Section 16 or Section 17, but
under the National Highways Act, 1956,
vesting takes place on declaration under
Section 3D(1) and as such any sale deed
executed thereafter i.e. after vesting of
the land in the Government, by the
erstwhile owner, is void ab initio.

24. The right of the subsequent
purchaser to receive compensation on the
strength of his vendor's title has been
judicially recognised.

25. In U.P. Jal Nigam Vs. Kalara
Properties (P) Ltd. Reported in 1996 (3)
SCC 124, M/s Kalara Properties had
purchased the land after the notification
under Section 4 (1) of the Land
Acquisition Act was published. It was
held that the sale was void against the
State and M/s Kalara Properties acquired
no right, title or interest in the land. It
8 All. Sursati Vs. State of U.P. & Ors.
199
could not challenge the validity of the
notification or the irregularity in taking
possession of land before publication of
the declaration under Section 6. Any
encumbrance created by the owner after
Section 4(1) notification is published
does not bind the Government and such a
purchaser does not acquire any title on
the property. The purchaser is a person
interested in the compensation, since he
steps into the shoes of earstwhile owner,
and is entitled to claim compensation.
Relevant part of Paragraph 3 and 4 of the
U.P.
Jal
Nigam
(supra)
is
being
reproduced as under:

"3.........It is settled law that
after the notification Under Section 4(1)
is
published
in
the
Gazette
any
encumbrance created by the owner does
not bind the Government and the
purchaser does not acquire any title to
the property.