SC overrules Karnataka HC's judgement on application of 2013 LA Act to BDA

The Supreme Court on Thursday held that the Land Acquisition Act, 2013, allowing higher compensation would not be applicable for acquisition made under the Bangalore Development Authority Act.

A bench of Justices S Abdul Nazeer and Sanjiv Khanna overruled a judgement of the Karnataka High Court and clarified that since Land Acquisition Act has been incorporated into the BDA Act so far as they are applicable, the provisions of the 2013 Act are not applicable for the acquisitions made under the BDA Act.

The top court passed its judgement on a plea by the BDA which questioned the Karnataka High Court's direction that the provisions of the 2013 Act would apply on the acquisition of land meant for a peripheral ring road, encircling Bengaluru City for the length of 116 Kms.

In its plea, the BDA contended that the High Court's direction has totally upset the budget calculation of the project. It also said the High Court has failed to refer and to consider the Constitution Bench judgment of the top court in Offshore Holdings Private Limited Vs Bangalore Development Authority and others (2011) wherein it was clearly held that the provisions of the LA Act are applicable to the BDA Act by incorporation.

"The HC has erred in holding that in view of the repeal of LA Act by coming into force of 2013 Act, the corresponding provisions of 2013 Act would regulate acquisition proceedings under the BDA Act and that this would include determination of compensation in accordance with 2013 Act," the top court said.

The court pointed out that the primary object of the BDA Act is to carry out a planned development and acquisition, which is merely an incident of such planned development.

"It is also clear that the provisions of the LA Act would be attracted only insofar as they are applicable to the BDA Act. Where there are specific provisions under the BDA Act, the provisions of the LA Act will not be attracted," the bench added.

The BDA Act passed for the establishment of a development authority for the development of the city of Bengaluru and the areas adjacent thereto, has given a complete process for determination of rights. For the purpose of the claims in regard to the matters which are not specifically dealt with in the BDA Act, reference to the LA Act in terms of Section 36 has been made. The intention of the Legislature is to take recourse for the provisions of the LA Act to a limited extent and subject to the supremacy of the provisions of the BDA Act, the bench said.

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