Singapogu Babu Rao & Ors. Vs Special Deputy Collector (Land Acquisition) & Ors. (Supreme Court of India)
Possession Is Not Title, and Silence Is Not Settlement: Supreme Court Quashes Lok Adalat Land Awards
In Singapogu Babu Rao & Others v. Special Deputy Collector (Land Acquisition) & Others, the Supreme Court examined the validity of 16 Lok Adalat awards concerning the apportionment of compensation for lands acquired for mining operations by Singareni Collieries Company Ltd.
Approximately 489 acres were acquired, with compensation initially fixed at ₹3.49 lakh per acre and later settled at ₹10.95 lakh per acre. Since rival claims existed regarding title and entitlement, the Land Acquisition Officer correctly referred the dispute to the civil court under sections 30 and 31 of the Land Acquisition Act, 1894.
The dispute was subsequently sent to the Lok Adalat, which passed 16 awards covering approximately 363 acres, principally relying on an “enjoyment survey” recording physical possession. However, all rival title claimants were neither made parties nor obtained as signatories to the settlement.
The Supreme Court held that an enjoyment survey merely establishes physical occupation at a particular time. It cannot determine whether possession is based on ownership, inheritance, assignment, permission, trespass or encroachment. Consequently, physical possession cannot by itself establish entitlement to land-acquisition compensation.
The Court further held that a Lok Adalat award is founded on consent and compromise. Where rival claimants dispute title and apportionment, the award is valid only if all interested parties participate and consent. A partial settlement involving some claimants cannot bind the excluded or non-signatory claimants.
The High Court also erred in treating the proceedings as analogous to a representative action under Order I Rule 8 CPC. That provision requires a common interest among the represented persons, whereas the claimants here had conflicting and mutually adverse claims to the same compensation.
Accordingly, the Supreme Court set aside the High Court judgment and the Lok Adalat awards and restored the apportionment reference to the Principal District Judge, Khammam, for de novo adjudication within six months, after issuing notice to all concerned parties.
