Interpretation of Legislation by Incorporation in Land Acquisition Proceedings

In a significant legal development, the court has provided clarification on the interpretation of legislation by incorporation in land acquisition proceedings under the BDA Act. This ruling holds importance for future acquisitions and sets an important precedent in legal analysis.

Facts

  • The Bengaluru City needs the Peripheral Ring Road (PRR) now more than ever due to the city’s phenomenal growth in all directions.
  • As of 2019, the city’s geographical extent has grown to 2196 sq. kms with over 80 lakh vehicles.
  • The PRR will reduce congestion on city roads and provide connectivity to various destinations without entering Bangalore city, thus minimizing congestion on outer ring roads and internal city roads.
  • Repeal of LA Act and coming into force of 2013 Act will not frustrate further proceedings under the BDA Act.
  • Proceedings not deemed lapsed due to Section 24 of 2013 Act.
  • Procedure to be regulated as per provisions of 2013 Act where applicable, including determination of compensation.
  • BDA’s application contests that the court’s direction has disrupted project budget calculation.

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Issue

  • The first question raised in the case was whether the repeal of the Land Acquisition Act 1894 affected the proceedings under Section 36 of the BDA Act.
  • The learned Single Judge determined that the provisions of the LA Act applicable to the BDA were in the form of legislation by reference.
  • It was concluded that with the repeal of the LA Act and the enactment of the 2013 Act, the corresponding provisions of the 2013 Act would govern the acquisition proceedings.
  • The Judge held that the 2013 Act, being the law in force at the time, would regulate the acquisition proceedings during that period.

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Arguments

  • The petitioner has contended that the High Court failed to consider the Constitution Bench judgment in Offshore Holdings Private Limited v. Bangalore Development Authority and others.
  • It is argued that Section 36 of the BDA Act mandates legislation by incorporation.
  • BDA has filed an application seeking a declaration that the 2013 Act is not applicable to the BDA Act.
  • The BDA Act, as per Offshore Holdings Private Limited case, is subject to the provisions of the LA Act by incorporation and not by reference.
  • The High Court’s judgment in Sri Sudhakar Hegde case, treating the LA Act provisions as legislation by reference, was deemed unjustified.

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Analysis

  • Chapter IV of the BDA Act deals with ‘Acquisition of Land.’
  • The provisions of the LA Act continue to apply for acquisitions made in the BDA Act where they are applicable.
  • The BDA Act is a self-contained code for planned development and acquisition.
  • Section 36 of the BDA Act mandates legislation by incorporation with the LA Act.
  • The BDA Act operates without conflict with the Land Acquisition Act.
  • Acquisitions initiated under the BDA Act are regulated by the LA Act to the extent they are applicable.
  • The intention of the Legislature is to use provisions of the LA Act subject to the supremacy of the BDA Act.
  • The BDA Act provides a complete process for determination of rights and claims in land acquisition.
  • The BDA Act is a legislation by incorporation showcasing effective implementation of State law without conflict.
  • Section 14 of the BDA Act outlines the objectives of the Authority, which include promoting and securing the development of the Bangalore Metropolitan Area.
  • Chapter III of the BDA Act empowers the Authority to undertake development schemes for the Bangalore Metropolitan Area.
  • Sub-section (1) of Section 24 of the 2013 Act clarifies that land acquisition processes will be governed by the Land Acquisition Act of 1894.
  • Sub-section (1) of Section 36 of the BDA Act specifies that land acquisition under the Act will follow the provisions of the Land Acquisition Act of 1894.
  • Sub-section (3) of Section 36 states that once land vests in the Government under the LA Act, it shall be transferred to the Authority upon payment and agreement on costs.
  • In cases of land acquisition proceedings under the Land Acquisition Act of 1894, the BDA Act outlines specific provisions for determining compensation.
  • The 2013 Act repeals only the Land Acquisition Act of 1894 and not any other Central or State enactment related to acquisition.
  • Provisions of incorporated statute become part of the statute they are transferred to
  • No need to refer to the original statute after incorporation
  • Any subsequent amendment in the original statute does not affect the incorporating statute
  • Old LA Act and Section 24(2) of the 2013 Act are not applicable for acquisition under KIADB Act
  • Section 105 of the 2013 Act states it does not apply to enactments in the Fourth Schedule
  • Section 24 does not apply to acquisitions initiated under State enactments like the BDA Act
  • Section 24 only applies to acquisitions initiated under the LA Act, 1894
  • Land owners entitled to deeming provision regarding lapse of acquisition subject to conditions under Section 24
  • The Judge erred in holding that the 2013 Act would regulate acquisition proceedings under the BDA Act due to the repeal of the LA Act.
  • The provisions of the 2013 Act do not apply to acquisitions made under the BDA Act.
  • The LA Act has been incorporated into the BDA Act where applicable.

Decision

  • The judgment of the learned Single Judge of the High Court in Sri Sudhakar Hegde and other connected matters is overruled.

Case Title: BANGALORE DEVELOPMENT AUTHORITY Vs. STATE OF KARNATAKA (2022 INSC 78)

Case Number: MA-001614-001616 / 2019

Click here to read/download original judgement

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