Maruti can't be heard on compensation post-land acquisition: Supreme Court

The Supreme Court Tuesday held that Maruti Suzuki India Limited (MSIL) has no locus as an allottee to be heard in a matter relating to determination of compensation under the Land Acquisition law after the land has been acquired.

A bench of Justices Adarsh Kumar Goel and U U Lalit set aside the order of Punjab and Haryana High Court allowing MSIL and Haryana State Industrial Corporation (HSIDC) on the ground that the allottee had a right to be impleaded as a party in the compensation matter.

"The acquisition may either be for a 'public purpose' as defined under Section 3(f) or for a company under Part-VII of the Act. If the acquisition is for a public purpose (as the present case), the land vests in the State after the collector makes an award and the possession is taken.

"Till the award is made, no person other than State comes into the picture. Once the land vests in the State, the acquisition is complete. Any transferee from the State is not concerned with the process of acquisition," the bench said.

It said that the state may tranfer the land by public auction or by allotment at any price and the person whose land is acquired has no concern at all.

"The mere fact that the Government chooses to determine the allotment price with reference to compensation price determined by the court does not provide any locus to an allottee to contest the claim for enhancement of compensation," the bench said.

Allowing the appeals of land owners and setting aside the High Court order, the apex court remanded back the matter to the High Court once again for fresh decision in accordance with law and directed the concerned parties to appear before the High Court on March 27.

Huge chunks of land were acquired in Haryana by the state government in different phases for setting up of model industrial township by the HSIDC in Gurgaon district.

Substantial part of the acquired land was allotted by HSIDC to MSIL. One of the clauses in the Conveyance Deed executed in favour of the company provided that if compensation was enhanced, it shall be liable to pay additional price.