Skip to main content

Land ordinance is prospective, owners can take benefit of delays: Supreme Court

The Supreme Court has said that the recent ordinance on land acquisition is prospective in nature, holding that delays owing to litigation are to be counted to the benefit of landowners and going against state governments owing to the absence of specific language to this effect.

The court also said the benefit given to landowners is a "statutory right" and "cannot be taken away by an ordinance by inserting proviso to the above-said sub-section without giving it retrospective effect", it said with reference to the relevant clause.

"We are... of the view that there is a presumption against the retrospective operation of a statute and further a statute is not to be construed to have a greater retrospective operation than its language renders necessary, but an amending Act which affects the procedure is presumed to be retrospective, unless amending Act provides otherwise," it said.

The ruling was passed earlier this week on a petition filed by M/s Radiance Fincap Pvt. Ltd against the central government on the acquisition of its land. The company filed an application to challenge the ordinance that was promulgated recently.

The ordinance had been issued after widespread criticism that the land acquisition law that came into force on January 1, 2014, was flawed. It had brought land acquisitions to a halt, thus preventing development projects from getting off the ground.

Amending this was one of the key aims of the Narendra Modi government as part of its agenda to boost investment and economic activity in order to upgrade India's creaky infrastructure, generate jobs and revive growth.

While the relaxations in the ordinance applied mainly to the consent of land holders in relation to projects being set up in various industries, it covered other areas as well, including court delays.

Since the Act wasn't clear on the matter, the former UPA government solicitor general had issued a clarification at the end of January 2014 that any delay caused by the courts will benefit landowners.

The state governments had sought a review but the Supreme Court upheld this view, relying on a "plain reading" of the legislation.

The ordinance had said court delays will be excluded, which was seen as favouring state governments and going against landowners in cases involving thousands of crores of rupees.

The Supreme Court said earlier this week that "the legal position that emerges is that when a repeal of an enactment is followed by a fresh legislation, such legislation does not affect the substantive rights of the parties on the date of suit or adjudication of suit unless such a legislation is retrospective".

Article referred: http://economictimes.indiatimes.com/news/politics-and-nation/land-ordinance-is-prospective-owners-can-take-benefit-of-delays-supreme-court/articleshow/45935617.cms

Comments

Most viewed this month

Appellate authorities under Special Statutes cannot be asked to condone delay

Madras High Court in R.Gowrishankar vs. The Commissioner of Service Tax has held that Appellate authorities cannot be asked to condone the delay, beyond the extended period of limitation A Division Bench comprising of Justices S. Manikumar and D. Krishnakumar, made this observation while considering an appeal filed against Single Bench order declining to set aside the order made in the condone delay petition filed by the petitioner to condone 223 days in filing the appeal before the Commissioner of Service Tax (Appeals). Article referred: http://www.livelaw.in/appellate-authorities-special-statutes-cannot-asked-condone-delay-beyond-extended-period-limitation-madras-hc/

'Seize assets to pay damages to accident victim'

Her story might be an inspiration for the physically challenged but justice has remained elusive for her. In 2008, a bus accident left research engineer S Thenmozhi, 30, paraplegic. In April 2013, the motor accident claims tribunal directed the Tamil Nadu State Transport Corporation (TNSTC) to provide her a compensation of 57.9 lakh. However, TNSTC refused to budge and on Tuesday a city court ordered attaching of movable assets of the transport corporation. Thenmozhi was employed in C-DOT, a telecom technology development centre in Bangalore. On July 21, 2008, she was coming to Chennai in a private bus. Around 2am, the bus had a flat tyre and the driver parked it on the left side of the road near Pallikonda in Vellore district on the Bangalore-Chennai highway. While the tyre was being changed, a TNSTC bus of Dharmapuri division hit the stationary bus. The rear part of the bus was smashed and passengers were injured. Thenmozhi who had a seat at the back of the bus suffered...

Mumbai ITAT rules income of offshore discretionary trust is subject to tax in India

The Mumbai Income Tax Appellate Tribunal (ITAT) has recently determined the following issue in the affirmative in the case of Manoj Dhupelia: Should the income of an offshore discretionary trust be subject to tax in India, if no distributions have been made to beneficiaries in India? The question arose from appeals filed by individual beneficiaries in relation to a Lichtenstein-based trust, the Ambrunova Trust and Merlyn Management SA (the Trust) with the ITAT. It is important to note that the individuals in this case were amongst those first identified by the Government of India (GOI) as holding undeclared bank accounts in Lichtenstein. The ITAT ruling raises the following issues: Taxation of Trust Corpus: ITAT classified the corpus of the trust as "undisclosed income" and declared it taxable in the hands of the beneficiaries. Taxation of Undistributed Income: ITAT refused to draw a distinction between the corpus and undistributed income from the trust and declared i...