PAYBACK PERIOD

The payback period helps to answer the question “how long will it take to make back the money spent on the investment?”  This is beneficial information to decision makers because out-year benefits are often less certain than benefits that occur early in the life cycle. The payback period represents the time required for the cumulative savings to equal to the cumulative value of investment.  The payback period measures the time (i.e., years, months) needed to recover the initial investment and break even.
The payback period metric identifies projects that generate benefits occurring early in the life cycle.  NASA decision makers must then decide if the payback period is appropriate in the context of the organization’s other investment opportunities.

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BREAK-EVEN PERIOD

The breakeven period is the period over which the cost to the borrower would end up the same whether the borrower took the high points/low rate mortgage or the low points/high rate mortgage. To calculate it properly, the cost must includes points, monthly payments, the lost interest earnings on both the points and the monthly payments using the borrower’s investment rate, less tax savings and less the reduction in the loan balance.
The reinvestment rate is important. To get the lower rate, you pay higher points, and the money used to pay those points could be invested. Similarly, to get lower points you pay a higher rate, and the money used to make the larger monthly payments could be invested. If your spare money is held in a money market fund on which you earn 4% or 5%, you should use that figure. If you own a stock portfolio that returns 15%, you will want to use a higher reinvestment rate, although probably not 15% because that return is far from a sure thing.

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Production Possibility Frontier – PPF

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.). The PPF assumes that all inputs are used efficiently. 
As indicated on the chart above, points A, B and C represent the points at which production of Good A and Good B is most efficient. Point X demonstrates the point at which resources are not being used efficiently in the production of both goods; point Y demonstrates an output that is not attainable with the given inputs.

explains Production Possibility Frontier – PPF
Among others, factors such as labor, capital and technology will affect where the production possibility frontier lies. The PPF is also known as the production possibility or transformation curve.

A common PPF: increasing opportunity cost		A straight line PPF: constant opportunity cost		An inverted PPF: decreasing opportunity cost

PART II

1. A production possibility frontier (PPF) is a curve or a boundary which shows the combinations of two or more goods and services that can be produced whilst using all of the available factor resources efficiently.
2. 
3. Combinations of output of goods X and Y lying inside the PPF occur when there are unemployed resources or when the economy uses resources inefficiently. In the diagram above, point X is an example of this. We could increase total output by moving towards the production possibility frontier and reaching any of points C, A or B.
4. Point D is unattainable at the moment because it lies beyond the PPF. A country would require an increase in factor resources, or an increase in the efficiency (or productivity) of factor resources or an improvement in technology to reach this combination of Good X and Good Y. If we achieve this then output combination D may become attainable.

Producing more of both goods would represent an improvement in our economic welfare providing that the products are giving consumers a positive satisfaction and therefore an improvement in what is calledallocative efficiency
Reallocating scarce resources from one product to another involves an opportunity cost. If we go back to the previous PPF diagram, if we increase our output of Good X (i.e. a movement along the PPF from point A to point B) then fewer resources are available to produce good Y. Because of the shape of the PPF the opportunity cost of switching resources increases – i.e. we have to give up more of Good Y to achieve gains in the output of good X.

The PPF does not always have to be drawn as a curve. If the opportunity cost for producing two products is constant, then we draw the PPF as a straight line. The gradient of that line is a way of measuring the opportunity cost between two goods.

Explaining Shifts in the Production Possibility Frontier
The production possibility frontier will shift when:

• There are improvements in productivity and efficiency perhaps because of the introduction of new technology or advances in the techniques of production)
• More factor resources are exploited perhaps due to an increase in the size of the workforce or a rise in the amount of capital equipment available for businesses

In the diagram below, there is an improvement in technology which shifts the PPF outwards. As a result of this, output possibilities have increased and we can conclude (providing the good provides positive satisfaction to consumers) that there is an improvement in economic welfare.

Technology, prices and consumer welfare
Improved technology should bring market prices down and make products more affordable to the consumer. This has been the case in the market for personal computers and digital products. The exploitation ofeconomies of scale and improvements in production technology has brought prices down for consumers and businesses.
External Costs
In the case of air pollution there is an external cost to society arising from the contamination of our air supplies. External costs are those costs faced by a third party for which no compensation is forthcoming. Identifying and then estimating a monetary value for air pollution can be a very difficult exercise – but one that is important for economists concerned with the impact of economic activity on our environment. We will consider this issue in more detail when we study externalities and market failure.
Free Goods
Not all goods have an opportunity cost. Free goods are not scarce and no cost is involved when consuming them.

Air conditioning uses up scarce resources especially during hot weather
Is fresh air an example of a free good? Usually the answer is yes – yet we know that air can become contaminated by pollutants. And, in thousands of offices, shops and schools, air-conditioning systems cool the air before it is “consumed”. With air conditioning, scarce resources are used up in providing the “product” – for example the capital machinery and technology that goes into manufacturing the air conditioning equipment; the labour involved in its design, production, distribution and maintenance and the energy used up in powering the system.

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MARGINAL UTILITY

DEFINITION – amount of  BENEFIT derived from consuming one additional unit of a PRODUCT or SIRVICE.
The additional satisfaction a consumer gains from consuming one more unit of a good or service
explains Marginal Utility
For example, if you were really thirsty you’d get a certain amount of satisfaction from a glass of water. This satisfaction would probably decrease with the second glass, and then even more with the third glass. The additional amount of satisfaction that comes with each additional glass of water is marginal utility.

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THE UTTAR PRADESH APARTMENT (PROMOTION OF CONSTRUCTION, OWNERSHIP AND MAINTENANCE) ACT, 2010

THE UTTAR PRADESH APARTMENT (PROMOTION OF CONSTRUCTION, OWNERSHIP AND MAINTENANCE) ACT, 2010
AN ACT to provide for the ownership of an individual apartment in a building of an undivided interest in the common areas and facilities appurtenant to such apartment and to make such apartment and interest heritable and transferable and for matters connected therewith or incidental thereto.
IT IS HEREBY enacted in the sixty first year of the Republic of India as follows:-
PRELIMINARY
Short title, extent and Commencement
1. (1) This Act may be called the Uttar Pradesh Apartment (Promotion of Construction, Ownership, and Maintenance) Act, 2010.(2) It extends to the whole of State of Uttar Pradesh.
(3) It shall come into force on such date as the State Government may, by
notification in the official Gazette, appoint.
Application 2. The provisions of this Act shall apply to all buildings having four or more apartments in any building constructed or converted into apartment and land attached to the apartment, whether freehold or held on lease excluding shopping malls and multiplexes.
Definitions 3. In this Act, unless the context otherwise requires,— (a) “allottee” in relation to an apartment, means the person to whom such apartment has been allotted, sold or otherwise transferred by the promoter;
(b) “apartment” means a part of any property, intended for any type of independent use, including enclosed spaces located on one or more loors or any part or parts thereof, in a building to be used for residential or official purposes or for the purpose of practicing any profession, or for carrying on any occupation, trade or business (excluding shopping malls and multiplexes) or for such other use as may be prescribed, and with a direct exit to a public street, road or to a common area leading to such street, road and includes any garageor room (whether or not adjacent to the building in which such apartment is located) provided by the promoter for use by the ownerof such apartment for parking or, as the case may be, for the residence of any domestic aide employed in such apartment;
(c) “apartment number” means the number, letter or combination thereof, designating an apartment;
(d) “apartment owner” means the person or persons owning an apartment or the promoter or his nominee in case of unsold apartments and an undivided interest in the common areas and facilities appurtenant to such apartment in the percentage specified in the Deed of Apartment and includes the lessee of the land on which the building containing such apartment has been constructed, where the lease of such land is for a period of thirty years or more;
(e) “association of apartment owners” means all the owners of the apartments therein, acting as a group in accordance with the byelaws;
(f) “board” means the Board of Management of an Association of Apartment Owners elected by its members under the bye-laws;
(g) “building” means a building constructed on any land, containing four or more apartments, or two or more buildings in any area designated as a block, each containing two or more apartments with a total of four or more apartments in all such buildings; Provided that an independent house constructed in a row with independent entry and exit, whether or not adjoining to other independent houses, shall not constitute a building.
(h) “bye-laws” means the bye-laws made under this Act;
(i) “common areas and facilities” means—
(i) the land on which the building is located and all easements, rights and appurtenances belonging to the land and the building;
(ii) the foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors, lobbies, stairs, stairways, fire-escapes and entrances and exits of the building;
(iii) the basements, cellars, yards, parks, gardens, community centres and parking areas of common use;
(iv) the premises for the lodging of janitors or persons employed for the management of the property;
(v) installations of central services, such as, power, light, gas, hot and cold water, heating, refrigeration, air conditioning, incinerating and sewerage;
(vi) the elevators, tanks, pumps, motors, fans, cable pipe line (TV,gas, electricity etc.) rain water harvesting system, compressors,ducts and in general all apparatus and installations existing for common use;
(vii) such other community and commercial facilities as may be specified in the bye-laws; and
(viii) all other parts of the property necessary or convenient to its existence, maintenance and safety, or normally in common use;
(j) “common expenses” means—
(i) expenses of administration, maintenance, repair or replacement of the common areas and facilities, utilities, equipments and machinery and all other sums assessed against the owners of apartment by the Association of Apartment Owners.
(ii) expenses declared as common expenses by the provisions of thisAct or by the bye-laws, or agreed upon by the Association of Apartment Owners;
(k) “common profits” means the balance of all income, rents, profits, and revenues from the common areas and facilities remaining after the deduction of the common expenses;
(l) “competent authority” means any person or authority authorised by the government by notification to perform the functions of the competent authority under this Act for such areas as may be specified in the notification;
(m) “declaration” means declaration referred to in section 12;
(n) “deed of apartment” means the Deed of Apartment referred to in section 14;
(o) “government” means the Government of Uttar Pradesh;
(p) “independent areas” means the areas which have been declared but not included as common areas for joint use of apartments and may be sold by the promoter without the interference of other apartment owners;
(q) “joint family” means a Hindu undivided family, and in the case of other persons, a group or unit, the members of which are by custom, joint in possession or residence;
(r) “local authority” means the Development Authority established under the Uttar Pradesh Urban Planning and Development Act, 1973 or Controlling Authority established under the Uttar Pradesh (Regulation of Building Operations) Act, 1958 or Special Area Development Authority established under the Uttar Pradesh Special Area Development Authorities Act, 1986 or the Uttar PradeshHousing and Development Board established under the Uttar Pradesh Housing and Development Board Act,1965 or the Industrial AreaDevelopment Authority established under the Uttar Pradesh Industrial Area Development Authorities Act, 1976 or the Uttar Pradesh Cooperative Housing Federation established under the Uttar Pradesh Cooperative Housing Societies Act, 1965 or the MunicipalCorporation constituted under the Uttar Pradesh Municipal  Corporations Act, 1959 or the municipality established under the Uttar Pradesh Municipalities Act, 1916, having jurisdiction over the site of property;
(s) “limited common areas and facilities” means those common areas and facilities which are designated in writing by the promoter before the allotment, sale or other transfer of any apartment as reserved for use of certain apartment or apartments to the exclusion of the other apartments;
(t) “manager” means the Manager of an Association of Apartment Owners appointed under the bye-laws;
(u) “person” includes a firm and a joint family, and also includes a group housing co-operative society;
(v) “Prescribed” means prescribed by rules made under this Act;
(w) “promoter” means a person, company, firm, Association or cooperative society, as the case may be, by which, or by whom the building has been constructed;
(x) “property” means the land, the building, and all improvements and structures thereon, and all easements, rights and appurtenances belonging thereto, and all articles of personal property intended for use in connection therewith, which have been, or are intended to be submitted to the provisions of this Act;
DUTIES AND LIABILITIES OF PROMOTERS
General liabilities of promoter
4. (1) Any promoter who intends to sell an apartment, shall make a full and true disclosure in writing of following to an intending purchaser and the Competent Authority:-
(a) rights and his title to the land and the building in which the apartments have been or proposed to be constructed;
(b) all encumbrances, if any, on such land or building, and any right, title, interest or claim of any person in or, over such land or building;
(c) the plans and specifications approved by or submitted for approval to the local authority of the entire building of which such apartment forms part;
(d) detail of all common areas and facilities as per the approved layout plan or building plan;
(e) the nature of fixtures, fittings, and amenities, which have been or proposed to be provided;
(f) the details of the design and specifications of works or and standards of the material which have been or are proposed to be used in the construction of the building, together with the details of all structural, architectural drawings, layout plans, no objection certificate from Fire Department, external and internal services plan of electricity, sewage, drainage and water supply system etc. to be made available with the Association;
(g) all outgoings, including ground rent, municipal or other local taxes, water and electricity charges, revenue assessments,maintenance and other charges, interest on any mortgage or other encumbrance, if any, in respect of such land, building andapartments;
(h) such other information and documents as may be prescribed.
(2) Every promoter shall,
(a) specify in writing the date by which, construction of the apartment is to be completed subject to force majeure clause and intimation sent to such purchaser;
(b) declare the penalty for delay in completion of the building and also penalty in the event of non-payment of installment by the purchaser;
(c) declare the conditions for cancellation or withdrawal of allotment and the extent of compensation either way in the event of violations of any of the conditions.
(d) give the intending purchaser, on payment of photocopying charges, true copies of the documents referred to in this section.
(3) Where a building or apartment is proposed to be constructed by a promoter, the Jal Sansthan or the Uttar Pradesh Power Corporation
Limited or the local authority, may supply water and electricity respectively on a temporary basis on intimation of approval of the plan by the prescribed sanctioning authority: Provided that the Jal Sansthan or the Uttar Pradesh Power Corporation Limited or the local authority may, on an intimation from the prescribed sanctioning authority, disconnect such supply of water and electricity as the case may be, if the promoter proceeds with the construction of building contrary to the approved plan, except for such deviations as are within the permissible limits: Provided further that no such disconnection of supply of water and electricity, as the case may be, shall be made by the Jal Sansthan or Uttar Pradesh Power Corporation Limited or Local Authorities without first giving a show cause notice and providing opportunity of hearing for intended disconnection and also recording reasons in writing thereof.
(4) After plans, specifications and other particulars specified in this section as sanctioned by the prescribed sanctioning authority are disclosed to the intending purchaser and a written agreement of sale is entered into and registered with the office of concerned registering authority. The promoter may make such minor additions or alterations as may be required by the owner or owners, or such minor changes or alterations as may be necessary due to architectural and structural reasons duly recommended and verified by authorized Architect or Engineer after proper declaration and intimation to the owner: Provided that the promoter shall not make any alterations in the plans, specifications and other particulars without the previous consent of the intending purchaser, project Architect, project Engineer and obtaining the required permission of the prescribed sanctioning authority, and in no case he shall make such alterations as are not permissible in the building bye-laws.
(5) An apartment may be transferred by the promoter to any person only after obtaining the completion certificate from the prescribed sanctioning authority concerned as per building bye-laws. The completion certificate shall be obtained by promoter from prescribed authority within the period of two years from the date of sale agreement. Provided that if the construction work is not completed within the stipulated period, with the permission of the prescribed  authority; Provided furthar that if the completion certificate is not issued by the prescribed sanctioning authority within three months of submission of the application by the promoter complete with all certificates and other documents required, the same shall be deemed to have been issued after the expiry of three months. Explanation: For the purposes of this sub-section “completion” means the completion of the construction works of a building as a whole or the completion of an independent block of such building, as the case may be.
(6) After obtaining the completion certificate as provided in sub-section
(5)and handing over physical possession of the apartments to the allottees, it shall be the responsibility of the promoter to hand over the possession of the common areas and facilities and also the originals of the plans and documents to the Association of apartment owners formed and registered under sub-section (2) of section-14. Provided that handing over of physical possession of the common areas and facilities under this sub-section shall be completed within a period of one year from the date of issue of completion certificate or the date by which seventy five percent of the apartments have been handed over to the allottees, whichever is earlier, subject to the condition that the promoter shall be responsible for the sale and transfer of the balance apartments.
(7) The promoter shall maintain the common areas and facilities till the Association is formed in accordance with the conditions laid down in sub section (2) of section-14 and shall be entitled to levy proportionate maintenance charges as specified in the declaration.
(8) The promoter shall be responsible upto two years after handing over the apartments regarding construction and structural defects in the building constructed by him and he shall get such defects removed at his own cost, failing which he shall liable to pay compensation for the losses incurred by him for such defects.
(9) The promoter shall pay all local taxes including house tax, water tax, sewer tax, until and unless subleases have been executed in favour of the apartment owners
RIGHTS AND OBLIGATIONS OF APARTMENT OWNERS
Rights of Apartment Owners
5. (1) Every person to whom any apartment is sold or otherwise transferred by the promoter shall subject to the other provisions of this Act, be entitled to the exclusive ownership and possession of the apartment so sold or otherwise transferred to him.
(2) Every person who becomes entitled to the exclusive ownership and possession of an apartment shall be entitled to such percentage of undivided interest in the common areas and facilities as may be specified in the Deed of Apartment and such percentage shall be computed by taking, as a basis, the area of the apartment in relation to the aggregate area of all apartments of the building.
(3) (a) The percentage of the undivided interest of each apartment owner in the common areas and facilities shall have a permanent character, and shall not be altered without the written consent of all the apartment owners and approval of the competent authority.
(b) The percentage of the undivided interest in the common areas and facilities shall not be separated from the apartment to which it appertains and shall be deemed to be conveyed or encumbered with apartment, even though such interest is not expressly mentioned in the conveyance or other instrument.
(4) The common areas and facilities shall not be transferred and remain undivided and no apartment owner or any other person shall bring any action for partition or division of any part thereof, and any covenant to the contrary shall be void.
(5) Each apartment owner may use the common areas and facilities in accordance with the purposes for which they are intended without hindering or encroaching upon the lawful rights of the other apartment owners.
(6) The necessary work relating to maintenance, repair and modification or relocation of the common areas and facilities and the making of any additions or improvements thereto, shall be carried out only in accordance with the provisions of this Act and the bye-laws.
(7) The Association of Apartment Owners shall have the irrevocable right, to be exercised by the Board or Manager to have access to each apartment from time to time during reasonable hours for the maintenance, repairs or replacement of any of the common areas or
facilities therein, or accessible therefrom, or for making emergency repairs therein necessary to prevent damage to the common areas and facilities or to any other apartment or apartments.
Obligation of Apartment Owners
6. (1) Each apartment owner shall comply strictly with the bye-laws and with the covenants, conditions and restrictions set forth in the Deed of Apartment, and failure to comply with any of them shall be a ground for action to recover sums due for damages, or for injunctive relief, or both, by the Manager or Board on behalf of the Association of Apartment Owners or in a proper case, by an aggrieved apartment owner.
(2) No apartment owner shall do any work which would be prejudicial  to the soundness or safety of the property or reduce the value thereof or impair any easement or heriditament or shall add any material structure or excavate any additional basement or cellar or alter the external facade without first obtaining the consent of all the apartment owners. Explanation: In this section, reference to apartment owners shall be construed, in relation to a building in any block, pocket or other designated area, the apartment owners of the concerned building in such block, pocket or other designated area.
OWNERSHIP, HERITABILITY AND TRANSFER ABILITY OF APARTMENTS
Apartment to be heritable and transferable
7. Each apartment, together with the undivided interest in the common areas and facilities appurtenant to such apartment, shall, for all purposes constitute a heritable and transferable immovable property within the meaning of any law for the time being in force, and accordingly, an apartment owner may transfer his apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment by way of sale, mortgage, lease, gift, exchange or in any other manner whatsoever in the same manner, to the same extent and subject to the same rights, privileges, obligations, liabilities investigations, legal  proceedings, remedies and to penalty, forfeiture or punishment as any other immovable property or make a bequest of the same under the law applicable to the transfer and succession of immovable property.
Provided that where the allotment, sale or other transfer of any apartment has been made by any group housing co-operative society or association in favour of any member thereof, the transferability of such apartment and all other matters shall be regulated by the law, which may provide a transfer fee at a maximum rate of 2 percent but not less than 1 percent in any case of the sale value, applicable to such group housing co-operative society or association whosoever maintains the common areas and facilities. The transfer fee shall no be leviable in case of heritability.
Ownership of apartment shall be subject to conditions
8. Where any allotment, sale or other transfer of any apartment has been made, whether before or after the commencement of this Act, in pursuance of any promise of payment, or part payment, of the consideration thereof, the allottee or transferee, as the case may be, shall not become entitled to the ownership and possession of that apartment or  to a percentage of undivided interest in the common areas and facilities appurtenant to such apartment until full payment has been made of the consideration thereof together with interest, if any due thereon, and where any such allottee or transferee has been inducted into the possession of such apartment or any part thereof in pursuance of such allotment or transfer, he shall, until the full payment of the consideration has been made continue to remain in possession thereof on the same terms and conditions on which he was so inducted into possession of such apartment or part thereof. There shall not be any hidden charges.
All sale consideration shall be fixed either at the time of agreement to sale or when the purchases are made final in writing as per provisions of this Act;
Right of reentry
9. (1) Where any land is given on lease by a person (hereafter in this section referred to as the lessor) to another person (hereafter in this section referred to as the lessee, which term shall include a person in whose favour a sub-lease of such land has been granted), and any building has been constructed on such land by the lessee or by any other person authorised by him or claiming through him, such lessee shall grant in respect of the land as many sub-leases as there are apartments in such building and shall execute separate deeds of sublease in respect of such land in favour of each apartment owner before handing over the possession of apartment in such building to him. The lessor shall be duty bound to supply the plans and other legal documents to the lessee.
Provided that no sub-lease in respect of any land shall be granted except on the same terms and conditions on which the lease in respect of the land has been granted by the lessor and no additional terms and conditions shall be imposed by the lessee except with the previous approval of the lessor.
(2) Where the lessee has any reason to suspect that there had been any breach of the terms and conditions of the sub-lease referred to in sub-section (1), he may himself inspect the land on which the building containing the concerned apartment has been constructed, or may authorise one or more persons to inspect such land and make a report as to whether there had been any breach of the terms and conditions of any sub-lease in respect of such land and, if so, the nature and extent of such breach, and for this purpose, it shall be lawful for the lessee or any person authorised by him to enter into, and to be in, the land in relation to which such breach has been or is suspected to have been committed.
(3) Where the lessee or any person authorised by him makes an inspection of the land referred to in sub-section (1), he shall record in writing his findings on such inspection [a true copy of which shall be furnished to the apartment owner by whom such breach of the terms and conditions of sub-lease in respect of the land appurtenant to the apartment owned by him has been committed (hereinafter referred to as the defaulting apartment owner)] and where such findings indicate that there had been any breach of the terms and conditions of the sub-lease in respect of such land, the lessee may, by a notice in writing, require the defaulting apartment owner to refrain from committing any breach of the terms and conditions of the sub-lease in respect of such land, or to pay in lieu thereof such composition fees as may be specified in the notice in accordance with such scales of composition fees as may be prescribed.
(4) The defaulting apartment owner who is aggrieved by any notice served on him by the lessee under sub-section (3) may, within thirty   days from the date of service of such notice, prefer an appeal to the Court of the District Judge having jurisdiction (hereinafter referredto as the District Court), either challenging the finding of the lessee or any person authorised by him or disputing the amount of composition fees as specified in the notice, and the District Court may, after giving the parties a reasonable opportunity of being heard, confirm, alter or reverse those finding or may confirm, reduce or increase the amount of composition fees or set aside the notice.
(5) Where, on the breach of any terms and conditions of any sub-lease in respect of any land, any composition fees become payable, the defaulting apartment owner shall be deemed to have been guilty of such breach and in default of payment thereof it shall be lawful for the lessee to recover the amount of the composition fees from the defaulting apartment owner as arrears of land revenue.
(6) Where any composition fees are paid whether in pursuance of the notice served under sub-section (3) or in accordance with the decision of the District Court or a higher court on appeal, no further action shall be taken by the lessee for the breach of the terms and conditions of the sub-lease in respect of the land in relation to which payment of such composition fees has been realised.
(7) If the defaulting apartment owner omits or fails to refrain from committing any breach of the terms and conditions of the sub-lease in respect of the land or, as the case may be, omits or fails to pay the composition fees in lieu thereof—
(i) in accordance with the notice issued by the lessee under subsection
(3); or
(ii) where the finding of the lessee or the person authorised to inspect the land about any breach of the terms and conditions of any sub-lease in respect of the land or the amount of composition fees specified in the notice issued by the lessee are altered by the District Court on appeal or by any higher court on further appeal, in accordance with the decision of the District Court or such higher court, as the case may be; the lessee shall be entitled,—
(a) where no appeal has been preferred under sub-section
(4), within sixty days from the date of service of the notice under sub-section (3), or
(b) where an appeal has been preferred under sub-section
(4), within sixty days from the date on which the appeal is finally disposed of by the District Court or, where any further appeal is preferred to a higher court, by such higher court, to exercise the right of re-entry in respect of the undivided interest of the lessee in the land appurtenant to the apartment owned by the defaulting apartment owner, and where such right of re-entry cannot be exercised except by the ejectment of the defaulting apartment owner from his apartment, such right of re-entry shall include a right to eject the defaulting apartment owner from the concerned apartment:
Provided that no such ejectment shall be made unless the defaulting apartment owner has been paid by the lessee such amount as compensation for such ejectment as may be determined in accordance with the prescribed scales of compensation.
(8) No appeal preferred under sub-section (4) shall be admitted, unless twenty-five per cent of the composition fees specified in the notice served on the defaulting apartment owner has been deposited to the credit of the District Court in savings bank account to be opened by the District Court in any branch of an approved bank:
Provided that the District Court may, on sufficient cause being shown, either remit or reduce the amount of such deposit, and the interest accruing on such deposit, shall ensure to the credit of defaulting apartment owner by whom such deposit has been made:
Provided further that the amount of such deposit together with the interest due thereon shall be distributed by the District Court in accordance with the decision in such appeal, or where any further appeal has been preferred against such decision, in accordance with the decision in such further appeal.
(9) The defaulting apartment owner, who is aggrieved by the amount offered to be paid to him under the proviso to sub-section (7) as compensation for ejectment from his apartment may, within thirty days from the date of such offer, prefer an appeal to the District Court and the District Court may, after giving the parties a reasonable opportunity of being heard, maintain, increase or reduce the amount of compensation.
(10) On the ejectment of the defaulting apartment owner from the  apartment under sub-section (7), the lessee by whom such ejectment has been made may make a fresh allotment of the concerned apartment to any other person on such terms and conditions as he may think fit.
(11) Where any lessee omits or fails to take any action either in accordance with the provisions of sub-section (2) or sub-section (3) or sub-section (7) the lessor may, in the first instance, require the lessee by a notice in writing to take action against the defaulting apartment owner under sub-section (2) or sub-section (3) or, as the case may be, under sub-section (7), within a period of ninety days from the date of service of such notice, and in the event of the omission or failure of the lessee to do so within such period, the lessor may himself take action as contained in sub-section (2) or subsection (3) or sub-section (7), and the provisions of sub-section (4) to sub-section (6) and sub-section (8) to sub-section (10), shall, as far as may apply to any action taken by him as if such action had been taken by the lessee.
(12) For the removal of doubts, it is hereby declared that no work in any  apartment by the owner thereof shall be deemed to be a breach of the terms of the sub-lease in respect of the land on which the building containing such apartment has been constructed unless the work  Is prohibited by sub-section (2) of section 6. Purchase or person taking lease of apartments from apartment owners to Execute an undertaking
10. Notwithstanding anything contained in the Transfer of Property Act, 1882 (Act No. 4 of 1882), or in any other law for the time being in force, any person acquiring any apartment from any apartment owner by gift, exchange, purchase or otherwise, or taking lease of anapartment from an apartment owner shall—
(a) In respect of the said apartment, be subject to the provisions of this Act; and
(b) Execute and register an instrument in such form, in such manner and within such period as may be prescribed giving an undertaking to comply with the covenants, conditions and restrictions, subject to which such apartment is owned by the apartment owner aforesaid.
Encumbrances against apartments
11. (1) The owner of each apartment may create any encumbrance, only against the apartment owned by him by executing an instrument and registering it in the office of the registering authority and the percentage of the undivided interest in the common areas and facilities appurtenant to such apartment in the same manner and to the same extent as may be created in relation to any other separate parcel of property subject to individual ownership:
Provided that where any such encumbrance is created, the apartment in relation to which such encumbrance has been created shall not be partitioned or sub-divided.
(2) In the event of a charge or any encumbrance against two or more apartments becoming effective, the apartment owners of theseparate apartments may remove their apartments and the percentage of the undivided interest in the common areas and facilities appurtenant to such apartments from the charge or encumbrance on payment of the fractional or proportional amounts attributable to each of the apartments affected and on such payment, the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall be free of the charge or encumbrance so removed.Provided that such partial payment shall not prevent the person having a charge or any of the encumbrance from proceeding to enforce the rights, in relation to the amount not so paid, against any other apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment.
DECLARATION OF BUILDING AND DEED OF APARTMENT
Contents of Declaration
12. (1) The declaration shall be submitted by a promoter in the office of the competent authority in respect of a building constructed after the commencement of this Act in such form, within such period and in such manner as may be prescribed and shall contain full and true particulars of the following, namely :-
(a) description of the land on which the building and  improvements are, or are to be located, and whether the land is free hold or lease hold;
(b) description of the building stating the number of stories and basements, the number of apartments and principal materials of which it is or is to be constructed;
(c) the number of each apartment and a statement of its location, Approximate area, number of rooms and the immediate common area to which it has access and any other data necessary for its proper identification;
(d) description of the common areas and facilities;
(e) description of the common areas and facilities if any, stating to which apartments, their use is reserved;
(f) value of the property and of each apartment, and the percentage of undivided interest in the common areas and the facilities appertaining to each apartment and its owner for all purposes, including voting;
(g) particulars of encumbrances, if any, on the property of apartment and its undivided interest at the date of the declaration;
(h) such other particulars as may be prescribed.
(2) The declaration referred to in sub-section (1) may be amended under such circumstances and in such manner as may be prescribed.
Registration of Deed of Apartment
13. No promoter or an apartment owner shall transfer or hand over the possession of any apartment constructed after the commencement of this Act without executing an appropriate transfer deed and also getting it registered under the provisions of the Registration Act, 1908 and it shall also be incumbent for such promoter or apartment owner to enclose a true copy of the declaration made under section 12 to such deed of transfer.
ASSOCIATION OF APARTMENT OWNERS AND BYE-LAWS FOR
THE REGISTRATION OF THE AFFAIRS OF SUCH ASSOCIATION
Association of apartment owners and bye-laws relating thereto
14. (1) There shall be an Association of Apartment Owners for the administration of the affairs in relation to the apartments and the property appertaining thereto and for the management of common areas and facilities : Provided that where any area has been demarcated for the construction of buildings, whether such area is called a block or pocket or by any other name, there shall be a single Association of Apartment Owners in such   emarcated area.
(2) It shall be the joint responsibility of the promoter and the apartment owners to form an Association. The promoter shall get the Association registered when such number of apartments have been handed over to the owners which is necessary to form an association or 33% of apartments, whichever is more, by way of sale, transfer or possession, provided the building has been completed alongwith all infrastructure services and completion certificate obtained from the local authority.
(3) In a case, where an association of the apartments owners of a building has not been formed, on the intended date of execution of a deed of apartment in favour of prospective apartment owner, it shall be obligatory for a prospective apartment owner to become member of the association within a period of 4 weeks on receipt of  a written intimation about the formation of such association.
(4) Where an association of an apartment owners exist on the intended date of transfer of an apartment, it will be obligatory for the prospective apartment owner to become member of such association before execution of a deed of an apartment in his favour.
(5) On formation of the Association of the Apartment Owners under sub-section (2) above, the management of the affairs of the apartments regarding their common areas and facilities shall be deemed to be transferred from the promoter to the Association which shall thereupon maintain them, Provided that till all the apartments are sold or transferred, the promoter shall proportionately share the  aintenance cost of common areas and facilities.
(6) The Government may by notification in the gazette frame model bye-laws in accordance with which property referred to in subsection
(1) shall be administered by the Association of Apartment Owners and the Association shall, at its first meeting, make its byelaws in accordance with the model bye-laws so framed, and in making its bye-laws the Association of Apartment Owners shall not make any departure from, variation of, addition to, or omission from, the model bye-laws aforesaid except with the prior approval of the competent authority.
(7) The model bye-laws framed under sub-section (5) shall provide for the following, among other matters, namely:—
(a) the manner in which the Association of Apartment Owners is to be formed;
(b) the election, from among apartment owners, of a Board of Management by the members of the Association of Apartment Owners;
(c) the number of apartment owners constituting the Board, the composition of the Board and that one-third of members of the Board shall retire annually;
(d) the powers and duties of the Board;
(e) the honorarium, if any, of the members of the Board;
(f) the method of removal from office of the members of the Board;
(g) the powers of the Board to engage the services of a Manager;
(h) delegation of powers and duties of the Board to such Manager;
(i) method of calling meetings of the Association of Apartment Owners and the number of members of such Association of Apartment Owners;
(j) election of a President of the Association of Apartment Owners from among the apartment owners, who shall preside over the meeting of the Board and of the Association of Apartment Owners;
(k) election of a Secretary to the Association of Apartment Owners from among the apartment owners, who shall be an ex-officio member of the Board and shall keep two separate minutes books, one for the Association of the Apartment Owners and the other for the Board, pages of each of which shall be consecutively numbered and authenticated by the President of the Association of Apartment Owners, and shall record, in the respective minutes books, the resolutions adopted by the Association of Apartment Owners or the Board, as the case may be;
(l) election of a Treasurer from among the apartment owners, who shall keep the financial records of the Association of Apartment Owners as also of the Board; (m) maintenance, repair and replacement of the common areas and facilities and payment therefor;
(n) manner of collecting from the apartment owners or any other occupant of apartments, share of the common expenses;
(o) resignation and removal of persons employed for the maintenance, repair and replacement of the common areas and facilities;
(p) restrictions with regard to the use and maintenance of the apartments and the use of the common areas and facilities, as may be necessary to prevent unreasonable interference in the use of each apartment and of the common areas and facilities by the several apartment owners;
(q) any matter which may be required by the Competent Authority to be provided for in the bye-laws for the proper or better administration of the property;
(r) such other matters as are required to be, or may be, provided for in the bye-laws.
(8) The bye-laws framed under sub-section (5) may also contain provisions, not inconsistent with this Act—
(a) enabling the Board to retain certain area of the building for commercial purposes and to grant lease of the areas so retained, and to apply the proceeds of such lease for the reduction of the common expenses for maintaining the building, common areas and facilities, and if any surplus is left after meeting such expenses, to distribute such surplus to the apartment owners as income;
(b) relating to the audit of the accounts of the Association of  Apartment Owners and of the Board, and of the administration of the property;
(c) specifying the times at which and the manner in which annual general meetings and special general meetings of the Association of Apartment Owners shall be held and conducted;
(d) specifying the time at which and the manner in which, the annual report relating to the activities of the Association of Apartment Owners shall be submitted;
(e) specifying the manner in which the income derived and expenditure incurred by the Association of Apartment Owners shall be dealt with or as the case may be, accounted for. Insurance 15. (1) The Board or Manager-
(a) shall have, if requested so to do by a mortgagee having a first mortgage covering an apartment, the authority to, and
(b) shall, if required so to do by the bye-laws or by a majority of the apartment owners, Obtain insurance for the property against loss or damage by fire or other hazards under such terms and for such amounts as requested or required.
(2) Such insurance coverage shall be written on the property in the name of such Board or Manager as trustee for each of the apartment owners in the percentages specified in the bye-laws.
(3) The premia payable in respect of every such insurance shall be common expenses.
(4) The provisions of sub-section (1) to (3) shall be without prejudice to the right of each of the apartment owner to insure his own apartment for his benefit. Disposition of property, destruction ordamage
16. If within sixty days of the date of damage or destruction to all, or part of any property, or within such further time as the competent authority may, having regard to the circumstances of the case, allow, the Association of Apartment Owners does not determine to repair, reconstruct or re-build such property, then, and in that event,-
(a) the property shall be deemed to be owned in common by the apartment owners;
(b) the undivided interest in the property owned in common, which shall appertain to each apartment owner, shall be the percentage of the undivided interest previously owned by such owner in the common areas and facilities;
(c) any encumbrances affecting any of the apartments shall be deemed to be transferred in accordance with the existing priority to the percentage of the undivided interest of the apartment owner in the property;
(d) the property shall be subject to an action for partition at the suit of any apartment owners in which event, the net proceeds of sale together with the net proceeds of the insurance on the property, if any, shall be considered as one fund and shall be divided amongst all the apartment owners in the percentage equal to the percentage  of undivided interest owned by each apartment owner in the property after paying out, all the respective shares of the apartment owners to extent sufficient for the purpose and all charges on the undivided interest in the property owned by each apartment owner.
Action 17. (1) Without prejudice to the rights of any apartment owner, action may  be brought by the Board or Manager, in either case in the discretion of the Board on behalf of two or more of the apartment owners as their respective interest may appear, with respect to any cause of action relating to the common areas and facilities or more than one apartment.
(2) The service of process on two or more apartment owners in any action relating to the common areas and facilities or more than one apartment may be made on the person, designated in the bye-laws to receive service of process.
COMMON PROFITS, COMMON EXPENSES AND OTHER MATTERS
Common profits, common expenses and other matters
18. (1) The common profits of the property shall be distributed among, and the common expenses shall be charged to, the apartment owners according to the percentage of the undivided interest of the apartment owners in the common areas and facilities.
(2) Where the apartment owner is not in the occupation of the apartment owned by him the liability to the common expenses payable in respect of such apartment shall be the joint and several liability of the apartment owner and the person in occupation of the apartment.Apartment owner not to be exempt from liability for contribution by waiver of the use of the common areas and facilities
19. No apartment owner may exempt himself from liability for his contribution towards the common expenses by waiver of the use of enjoyment of any of the common areas and facilities, or by the abandonment of his apartment Common expenses to be a charge on the apartment
20. (1) All sums assessed by the Association of Apartment Owners, but unpaid for the share of the common expenses chargeable to any apartment, shall constitute a charge on such apartment prior to all other charges except only-
(i) the charge, if any, on the apartment for payment of Government and Municipal taxes; and
(ii) all the sums unpaid on a first mortgage of the apartment.
(2) The Association of Apartment Owners may approach the Competent Authority with a request for recovery of amount lying unpaid for  a period of more than 12 months and which is due towards the common expenses payable in respect of an apartment, and the Competent Authority, on being satisfied, shall take appropriate action for its recovery from the owner of that apartment as arrears of land revenue
Separate assessments
21. (1) Notwithstanding anything to the contrary contained in any law relating to local authorities, each apartment and its percentage of undivided interest in the common areas and facilities appurtenant to such apartment shall be deemed to be separate property for the purpose of assessment of tax on lands and building leviable under such law and shall be assessed and taxed accordingly; and for this purpose a local authority shall make suitable regulations to carry out the provisions of this section.
(2) Neither the building nor the property nor the common areas and facilities referred to in sub-section (1), shall be deemed to be separate properties for the purpose of the levy of such taxes. Board to cut off, withhold, curtail or reduce essential supply of service
22 (1) If an apartment owner ;
(a) either willfully violates or evidently threatens to violates the provision of sub-section (1) or sub-section (2) of section 6, or
(b) fails to pay the common expenses, which are payable by him under this Act for a period of more than 6 months, the general body of the Association of Apartment Owners concerned may, after giving notice of not less than seven days to such apartment owner, may pass a resolution to cut off withhold or in any manner curtail or reduce, any essential supply or service enjoyed by such apartment owner;Provided that such Association of Owners shall not take any action in furtherance of the resolution referred to above unless a certified copy is sent each to the competent Authority and the concerned Apartment owner by registered or speed post and one month expires from the date of its being sent and its copy is displayed at some conspicuous place of the building. Explanation: It is clarified that the power to take action under this sub section shall not prejudice the other rights and remedies of the Association of Apartment Owners available under this Act or under  any other law for the time being in force.
(2) If an apartment owner is aggrieved by an action under sub-section
(1), he may prefer an appeal to the Competent Authority within a period of 15 days from the date of the receipt of the copy of the resolution, and the Competent Authority shall after affording sufficient opportunity to the parties pass such orders most expeditiously as he deems fit. Joint and  several liability of vendor etc., for unpaid common
23. (1) Upon the sale, bequest or other transfer of an apartment, the purchaser of the apartment or the grantee or legatee or the transferee, as the case may be, shall be jointly and severally liable with the vendor or the transferor for all unpaid assessment against the vendor or transferor for his share of the common expenses up to expenses the time of the sale, bequest or other transfer, without prejudice to the right of the purchaser, grantee, legatee or transferee to recover from the vendor or the transferor any amount paid by the purchaser, grantee or legatee or transferee thereof.
(2) Any purchaser, grantee, legatee or transferee refereed to in subsection
(1) shall be entitled to a statement from the Board or Manager setting forth the amount of the unpaid assessment against the vendor or transferor, as the case may be, and such purchaser, grantee, legatee or transferee shall not be liable for, nor shall be subject to a charge for any unpaid share of common expenses against such apartment accrued prior to such sale, bequest or other transfer in excess of the amount set forth in the statement.
MISCELLANEOUS
Act to be binding on apartment owners, tenants, etc.
24. (1) All apartment owners, tenants of owners, employees of owners and tenants, or any other person who may, in any manner, use the property or any part thereof to which this Act applies, shall be subject to the provision of this Act and the bye-laws and the rules made thereunder rovided that nothing contained in this sub-section shall effect the right, title or interest acquired by any allottee or other person in common areas and facilities from any promoter on or before the date of commencement of this Act.
(2) All agreements, decisions and determinations lawfully made by the Association of Apartment Owners in accordance with the provisions of this Act and the bye-laws shall be deemed to be binding on all apartment owners. Offences 25. (1) If any promoter,
(a) transfers by way of sale or otherwise any land appurtenant to a building and such land was originally shown as common areas and facilities such as park, open space, path ways, circulation areas, etc. in the plan approved by the prescribed sanctioning authority, or
(b) illegally makes construction in contravention of the plan approved by the prescribed sanctioning authority beyond compoundable limits; he shall, on conviction, be punished with imprisonment for a term not less than three years which may extend to six years or with fine not less than three lacs rupees, which may extend to five lacs rupees or with both. Explanation: Above punishment shall not exonerate the  promoter from his liability to restore the status of common areas and facilities as per the approved plan.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 it shall be lawful for a Metropolitan Magistrate or a Judicial Magistrate of the First Class to pass on any person convicted of an offence under this Act, a sentence of imprisonment or fine or both as provided in the relevant section of this Act, in exercise of powers under section 29 of the said Code.
(3) If the owner of an apartment which is subject to the provisions of
Chapter III contravenes-
(a) the provisions of section -5, or 6 or
(b) any bye-laws made under the provisions of this Act, he shall, on conviction, be punishable with fine not less than ten thousand rupees which may extend to Fifty thousand rupees and in case of a continuing contravention, to an additional fine which may extend to one   housand rupees for every day during which such contravention continues after the conviction.
(4) No court shall take cognizance of an offense under this section,except on the written complaint by the board after a majority decision thereof and after obtaining prior permission of the Competent Authority in such manner as may be prescribed. Offences by Companies
26. (1) Where an offense under this Act has been committed by a company,every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct ofthe business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in clause (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation-For the purposes of this section-
(a) “company” means any body corporate and includes a firm orother association of individuals; and
(b) “director” in relation to a firm, means a partner in the firm. Control by State Government
27. (1) The Competent Authority Shall carryout such directions as may be issued to it from time to time by the State Government for the
efficient administration of this Act.
(2) If in, or in connection with, the exercise of its powers and discharge of its functions by the Competent Authority under this Act any dispute arises between the Competent Authority and the State Government, the decision of the State Government on such dispute shall be final.
(3)The State Government may, at any time, either on its own motion or on application made to it in this behalf, call for the records of any case disposed of or order passed by the Competent Authority for the purpose of the satisfying itself as to the legality or propriety of any order passed or direction issued and may pass such order or issue such direction in relation thereto as it may think fit: Provided that the State Government shall not pass an order prejudicial to any person without affording such person a reasonable opportunity of being heard.
(4) Every order of the State Government made in exercise of the powers conferred by this Act shall be final and shall not be called in question in any court.
Exemptions 28. (1) Nothing in section 25 and 26 of this Act shall apply, if the promoter is- (a) a local authority or any other statutory body constituted for the development of land or housing; or (b) a company or a body wholly owned or controlled by thegovernment created for development of land or housing or promotion of industry.
(2) No suit, prosecution or other legal proceeding shall lie against the Government or any officer or other employee of the Government in respect of anything which is in good faith done or intended to be done by or under this Act.
Removal of doubts
29. For the removal of doubts, it is hereby declared that the provisions of the Transfer of Property Act, 1882 (Act No. 4 of 1882), shall, in so faras they are not inconsistent with the provisions of this Act, apply to the transfer of any apartment, together with its undivided interest in the common areas and facilities appurtenant thereto, made by the owner of such apartment, whether such transfer is made by sale, lease, mortgage, exchange, gift or otherwise, as they apply to the transfer of any immovable property.
Power to make rules
30. The Government may, by notification in the Official Gazette, make rules to carry out the provisions of this Act. Overriding  effect of this Act
31. (1) The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force;
(2) Save as otherwise expressly provided in sub-section (1) the provisions of this Act, shall be in addition to, and not in derogation of any other law for the time being in force.
Power to exempt
32. If the Government is of the opinion that the operation of any provision of this Act causes any undue hardship, it may exempt, by a general or special order, any class of person or areas from the provisions of this Act.
Removal of difficulties
33. (1) The Government may, for the purpose of removing any difficulty, by a notified order, direct that the provisions of this Act, shall, during such period, as may be specified in the order, have effect subject to such adaptation whether by way of modification, addition or omission, as it may deem necessary or expedient: Provided that no order shall be made after a period of two years from the date of commencement of this Act,
(2) No order made under this section shall be called in question in any court on the ground that no such difficulty existed or was required to be removed. Repeal of U.P. Act no. 50 of 1975
34. The Uttar Pradesh Ownership of Flats Act, 1975 is hereby repealed.
STATEMENT OF OBJECTS AND REASONS
Housing is a basic human necessity and the quality of the house as well as of its environment plays an important role in the growth of individuals, both physically and mentally. The widening gap between the rising urban population and the housing stock added every year has gradually reached such a critical stage that the problem of providing proper shelter and desirable standard of living seems very difficult of be solved. Moreover, majority of the citizen of urban areas of the State cannot thinks in terms of owing houses on individual basis because of the shortage of land in the urban areas. The efforts made by the Government as well as different agencies have not made much dent into the housing problem. Uttar Pradesh is predominantly an agricultural State; is no advisable to use fertile lands more and more for housing purposes which ultimately will affect the production of food grains. It is essential investment should be observed, for which Group Housing development will have to be promoted. With a view to promoting the Group Housing, it has been decided to make a law to provide for the ownership of an individual apartment in a building of an undivided interest in the common areas and facilities appurtenant of such apartment and to make such apartment and interest heritable and transferable. The Uttar Pradesh Apartment (Promotion of Construction Ownership and Maintenance) Bill, 2010 is introduced accordingly.

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Sources Of Law

1. Man is by nature a social·CHAPTER 1 LAW AND ITS SOURCES Introduction  being. He comes into contact with other individuals in different capacities. These contacts or associations are the inevitable consequence of modern civilization. In all these associations, he is expected to observe a Code of  make humanq The object of these set of rules is to ·Conduct or a set of rules.  q ensure that members of the society may live ; and qassociations possible; and   The word·work together in an orderly and peaceful manner. 1.1 WHAT IS LAW  `law` is a general term and over a period of time attained different  Persons carrying different vocations·connotations to signify varied purposes.  prefer to identify `law` as to the purpose the prescribed set of rules are intended to achieve: – (i) A Citizen may think of law as a set of rules, which he must obey. (ii) A Lawyer who `practices law` may think of law as a vocation. (iii) A Legislator may look at law something created by him. (iv) A Judge thinks of law as a guide and principles to be applied to making decisions. (v) A Social Scientist may think of law as a means of social control. (vi) A Legal  It is·Philosopher may consider law as `dictate of reason` or `right reasoning.  often preceded by an adjective to give it a more precise meaning e.g. Commercial/ Mercantile law, Civil law, Criminal law, Industrial law,  In the legal sense with which we are concerned in our study·International law.  of Commercial Laws, the definition of `law` includes all the rules and principles which regulate our relations with other individuals and the State and which are enforced by the State. DEFINITON OF `LAW` – ARTICLE 13 (3) OF  Clause 3 of Article 13 of the Constitution of India·CONSITTUTION OF INDIA  Ø bye-law, Ø order, Ø Ordinance, Ødefines `law` as under (a) `law` includes any  · custom or usage having the force of law; Ø notification, Ø regulation, Ørule,   `Law` in the context of the·An amendment to an existing law is also law.  provisions of the Constitution of India may also be defined as – “It is an Act passed by the legislature and assented to by the President of India or Governor of a State.” [Arts 111 and 200 of the Constitution of India]. 1.2 `LAW` AND  The Constitution of India does not use the term ‘Statute’ but it·`STATUTE`  uses the term ‘law’. Statute has been defined as `the written will of the  Thus, Statute or law generally means the laws and regulations of·legislature’.  every sort without considering the source from which they emanate. It is because of this the term `law` and `statute` are some times used interchangeably. 1.3  `Ignorntia juris non excusat` is a familiar maxim.·NEED FOR KNOWLEDGE OF `LAW`  This means `ignorance of law is no excuse`. Although it is not possible for a layman to be aware of every branch lf law, yet he must acquaint himself with the general principals of the law of the country. 1.4 FUNCTIONS AND PURPOSE OF `LAW ` 1 Justice 2 Continuity and uniformity 3 Impartiality 1.5 LAW IS NOT STATIC
2. IIPM 2 CH. – 1 LAW &  Although origins of law in any society·SOURCES  may be traced in antiquity, yet law is not static. As circumstances and conditions in a society change, laws are changed to fit the requirements of the society. 1.6 CLASSIFICATION OF LAW 1. PUBLIC LAW – It is that law which determines and regulates the organization and functioning of the State. It also determines the relation of the State with its subjects. The following laws form part of the public law: – a) Constitutional law – It is the basic and fundamental law of the land, which determines the nature of the State and the structure of the Government. It may be written (as in India, USA and most other countries) or unwritten (as in England). b) Administrative law – It is the law, which deals with the structure, functions and powers of the organs of the Government. c) Criminal law – It deals with various offences, and has for its object their prevention by providing for and prescribing certain punishments for them. 2. PRIVATE LAW – It is the law, which regulates relations of the citizens with one another, which are of public importance. In this sense, the State through its judicial organs adjudicates the matters in dispute between them. Private law comprises the following fields. a) Personal laws – It is a special law applicable to a class of people. b) Law of property – It is law relating to transfer of (immovable) property. c) Law of obligations – It is law relating to  `Source` means `origin`·Contract; Quasi contract and Torts 1.7 SOURCES OF LAW  which something is ultimately derived and often refers to the causes operating before the thing itself comes into being. Jurists (legal expert) differ widely s to the origin of law. One of the legal commentator traces its origin in general awareness of the people at any point of time. CLASSIFICATION OF SOURCES 1. Formal sources – These are the sources from which the law derives its force and validity. Of course, the only authority from which laws c spring and derive force and validity is State. an 2. Material sources – `Material sources of law` refer to the various processes, which result in the evolution of the materials, which are the constituents of law. Material sources may be divided into: a) Legal sources – These are the sources, which are recognized by the law itself as authoritative e.g. i. Statute law – having its force in legislations; ii. Case law – having its source in precedents; and iii. Customary law – having its source in customs. b) Historical sources – The sources, which have no binding, force and which are nor recognized by law are referred to as historical sources e.g. (i) Juristic writings; (ii) Literary works; and (iii) Foreign decisions.  The main sources of the Indian law may be summarized·1.8 SOURCES OF INDIAN LAW  ·as follows: – (A) PRINCIPAL SOURCES OF INDIAN LAW I. CUSTOMS OR CUSTOMARY LAW  Custom is the most ancient of all the sources of law and has held the most important place in the past though it is importance is now diminishing with the  Custom is a habitual course of conduct·growth of legislation and precedent.  observed uniformly and voluntarily by the people concerned. No custom shall have the force of law if it in manner violates the Fundamental Rights. Requisites of  In order to be valid and have a binding force as a law, aqa valid custom  custom must have the following requisites: – (i) Antiquity (ii) Reasonableness (iii) Continuous observance (iv) Conformity with Statute law and public policy (v) Consistency (vi) Obligatory force. (vii) Peaceable enjoyment II. JUDICIAL  This doctrine means adherence to the·PRECEDENTS Doctrine of `stare decisis`   This·earlier decision and not unsettling things, which are already decided.  doctrine is based on expediency and public policy. Why precedents are recognized LECTURES BY PROF. S N GHOSH
3. IIPM 3 CH. – 1 LAW &  The practice of following precedents is·SOURCES  necessary to secure the certainty of and predictability of decisions. This creates confidence in the minds of the litigants and the administration of  The general rule of doctrine of·justice becomes fair. Hierarchy of Courts  precedent as regards hierarchy of Courts is that each Court is absolutely bound by the decisions of the Courts superior to it. As regards higher Courts, they  Supreme Court – This isqare, to a certain extent bound by their own decisions.  the highest Court in India. Its decisions are binding on all Courts within the territory of India (Article 141 of the Constitution). The decisions of the Full Bench are binding on the smaller Benches of the Court. CASE EXAMPLE In Golaknath Vs. State AIR (1967) SC 1643, the Supreme Court by a 6-Judge Bench gave a decision that Fundamental Rights are not amendable. Six years later, the Supreme Court in Kesavananda Bharti Vs. State of Kerala (1973) SCC 225 by a 13-Judge  High Courts – the decisions of a HighqBench overruled the Golaknath Case.  Court are binding on all the Courts below it, within its jurisdiction (District  Subordinate or District Courts – These Courts areqCourts/Court of Sessions).  in districts. They are bound to follow the decisions of the higher Courts. SOME  A·IMPORTANT JUDICIAL DOCTRINES ratio decidendi (reasoning behind the decision)  decision of a Court can be seen from two aspects viz 1. What does the case decide between the parties? and 2. What principle or rule of law does it lay  In delivering judgment the judge gives reasons for his decisions, and it·down?  is these reasons which may be important as precedents in future cases. No two cases, which come before the courts, are exactly alike, and to discover whether there is a binding precedent it is necessary to establish the ratio decidendi, that is, the exact reason or reasons for the decision. obiter dictum (an  It means an incidental or·incidental or collateral opinion by a judge)  collateral opinion which is uttered by a judge while delivering a judgment and which is not binding. These are peripheral statements that may be found in the  Obiter dicta are·main decision but which do not deal with the central issue.  not binding, but they may be treated as of \”persuasive authority\” CASE EXAMPLE – obiter dicta In D Cowasji & Co. Vs. State of Mysore (AIR 1975 813), the petitioner claimed refund of a huge amount of Excise duty paid by it several years after the duty was paid. The Court rejected the claim for refund pointing out that it would be unjust to require its refund after such lapse of time because the Government would have, spent the amount for governmental purposes. By this decision the dispute was settled. But the Court went a step further and added a sentence in judgement as obiter dicta that “nor is there any provision under which the court could deny refund of tax even if the person who paid it has collected it from his customers and has no subsisting liability or intention to refund it to them or for any reason it is impracticable to do so.” This observation of the Court contained an implication. Excise duty is collected by the manufacturer from a large number of customers and paid it to the Government. The manufacturer does not pay a pie from his pocket. If the duty paid by him is ordered to be refunded the beneficiary of refund would be the manufacturer because he may not be in a position to pay back the Excise duty collected by it to the customers. It would be impossible for the manufacturer to trace out the customers who were in thousands or perhaps lakhs. Though the manufacturer had claimed refund of that amount to himself no opportunity had been given by the Court to the Government to argue on the tenability of the claim. What obviously weighed with the judge in ordering the refund was the “the dharma of the situation”. He assumed that since the excess duty was paid by the manufacturer belonged to him. While in fact it did not belong to him. It only unjustly enriches him. This observation of the Supreme Court i.e. obiter dicta was noticed by many High Courts. Taking the view that since this expression of opinion was of the highest court of the land and should receive respect, they treated this as ratio and started giving refund orders to a number of manufacturers. In course of time the refund amounted to hundreds of crores of rupees. Later on, the legislature had to rectify the situation by bringing amendments to the stature. III. STATUTE LAW OR LEGISLATION LECTURES BY PROF. S N GHOSH
4. IIPM 4 CH. – 1 LAW &  It is a law that is created by·SOURCES  legislation – Parliament or State Assembly. Legislation is that source of law, which consists in the declaration, or promulgation (transmission) of legal rules  It is some·by an authority duly empowered by the Constitution in that behalf.  times called jus scriptum (written law). Some prefer to call it as `enacted  In modern times, `legislation` is the most important source of law in·law`.   A legislation·all the countries. Types of Legislation 1) Supreme Legislation  is said to be supreme when it proceed from the supreme or sovereign power in the State – Parliament or the State Legislature- and is incapable of being repealed,  However – “any law·annulled or controlled by any other legislative authority.  which takes away or abridges the Fundamental Rights conferred by Part III and any law made in contravention of this clause shall, to the extent of the contravention, be void” [Article 13(2) of Constitution of India]. 2) Subordinate  Legislation is said to be subordinate when it proceed from any·Legislation  authority other than the supreme or sovereign authority in the Sate. It is made  There are 5 forms·under the powers delegated to it by the supreme authority.  of subordinate legislation: (i) Executive – The rule making power under of the Statues is conferred on the executive (i.e. the branch of the government that executes the laws or runs the administration). (ii) Judicial – The judiciary has powers to frame rules for the regulation of their procedures and administration. (iii) Municipal – Municipal bodies are delegated powers by the Act, which brings them into existence to frame rules, and by-laws for the area under their jurisdiction for carrying on various activities entrusted to them. (iv) Autonomous – The autonomous bodies, like Universities, are given power by the State to make rules and by-laws for their administration. (v) Colonial – The laws of the countries which are not independent or which are the control of some other State, are subject to the supreme legislation of the State under who  Sources of Hindu law – (a) the `Shruti`qcontrol they are. IV. PERSONAL LAW  (what is heard). This includes the four Vedas (Rig Veda, Yajur Veda, Sama Veda and Atharva Veda); (b) the `Smriti` (what is remembered ). The main three smritis are: the codes of Manu, Yajnanavalkya and Narada. The Statutes codifying the Hindu law enacted post independence era include (a) The Hindu Marriage Act 1955 (b) The Hindu Succession Act 1956 (c) The Hindu Minority and Guardianship  Sources ofqAct 1956 and (d) The Hindu Adoptions and Maintenance Act 1956.  Mohammedan Law – (a) The Koran (voice of God; paramount authority) (b) The Hadis (actions and sayings of the Prophet) (c ) ijma (opinions of companions of Prophets) (d) Qaiiyas (reasoning by analogy) (e) Digests and commentaries on Mohammedan Law (compiled by command of Aurangzeb, the Mughal Emperor). The Statutes enacted post independence include (a) the Wakf Act 1954 (b) The Muslim Women (Protection of Rights on Divorce) Act 1986. (B) SECONDARY SOURCES OF  In the absence of any rule·INDIAN LAW (1) JUSTICE, EQUITY AND GOOD CONSCIENCE  of specific law, usage or custom or personal law on a particular point arising before the Courts, the Courts apply the doctrine of “justice, equity and good conscience” which means “in substance and in circumstances the rule of English law” as applicable to Indian society and circumstances. (2) ENGLISH LAW a)  The chief source of the English Law is Common law asqCommon Law (of England)   The expression` Common Law (ofqsupplemented by Equity and Statute Law.  England) conveys those unwritten legal doctrines embodying English customs and English traditions which have been developed over centuries by the English  The term `equity` has its originqCourts. b) Equity (synonymous with `justice`)  in the Latin word `Aequitas` means – `fair` or `justice according to natural law` or `right` or simply `natural justice`. (Example – Doctrine of Natural  It refers to Acts of Parliament.qJustice, Equitable set-off). c) Statute Law  1.9 LEGISLATIVE MECHANISM IN INDIA LECTURES BY PROF. S N GHOSH
5. IIPM 5 CH. – 1 LAW &  The Constitution of is basically Federal·SOURCES  in structure with striking Unitary features. The Indian Constitution has created a new norm of federalism and that is the `Cooperative Federalism`. Two levels of government (1) The Central Government – It is also called the Union of India, which comprises of – (a) the territories of the States; (b) the Union Territories (specified in the First Schedule): and (c) such other territories as may be acquired. (2) The State Governments – Every State has its own separate Government. It owes its existence to the Constitution and its powers are defined  The First Schedule to the Constitution contains·by the Constitution itself.  the List of the States (Part I) and the Union Territories (Part II). EXTENT OF  Article 245 of the Constitution of India·LAWS MADE BY LEGISLATIVE BODIES  empowers the Parliament and the Legislature of a State to make laws for the  Article 245, inter alia, stipulates as·country and the State respectively.  under: – Article 245 Extent of laws made by Parliament and by the Legislatures  The Parliament may make laws for the whole or any part of theØof States   The Legislature of a State may make laws for the wholeØterritory of India, and   The law made by Parliament may haveØor any part of the State.   The Constitution of India has put certainØextra-territorial operation.  limitations on the legislative powers of the Parliament as well the State  Article 246 of the·Assembly. SUBJECT MATTER OF LAWS MADE BY LEGISLATIVE BODIES  Constitution, inter alia, provides for the subject matter of laws to be made by Parliament and by the Legislatures of States. The subject matters have been  Parliament – ExclusiveØspecified in the Seventh Schedule to the Constitution.  power relating to any of the matters enumerated in List I. (\”Union List\”-  The State Legislature – Exclusive power relating any ofØcontains 97 Entries).  Øthe matters enumerated in List II. (‘State List’- contains 66 Entries).  Parliament besides the State Legislature – Empowered to make laws relating to ·matters enumerated in List III (\”Concurrent List\” – contains 47 Entries).  Parliament has power to make laws with respect to any matter for any part of the territory of India not included in a State notwithstanding that such matter is a matter enumerated in the State List. List I – Union List. It has 97 entries. It contains those subjects which are of national interest or importance or which need national control and uniformity of policy throughout the country. Example: – Defence, Air Force, Atomic Energy, Foreign Affairs, Income Tax, CBI, Banking, Insurance, Reserve Bank of India, Incorporation, regulation and winding of up of corporations, Stock Exchange, Bills of exchange, Patents, Railways, Judges of Supreme Court and High Courts etc. List II – State List. It has 66 entries. It contains such subjects, which are of local (State) interest and on which the local control is more expedient. Example: – Public Order, Police, local Government, public health and sanitation, trade and commerce within the State, fairs, betting and gambling etc. List III – Concurrent List. It has 47 entries. It contains such subject, which though are of local importance yet need uniformity on national level or at least some parts of the country i.e. with respect to more than one State. Example: – Criminal Law, Education, Marriage and divorce, Transfer of Property, Contracts, Social Security etc. Residuary  Article 248 of the Constitution further empowers the·Legislative Powers  Parliament with the residuary powers of legislation to make any law with respect to any matter not enumerated in the Concurrent List or State List. Such power shall include the power of making any law imposing a tax not mentioned in either of those Lists. CIRCUMSTANCES WHEN PARLIAMENT MAY LEGISLATE ON MATTERS RELATING  The Parliament has been empowered to legislative on matters·TO STATE LIST  relating to the State List in the following three circumstances: – (A) In the  There shall be a·National interest (Article 249) Circumstances of enactment  declaration by the Council of State(s) by resolution supported by not less than two-thirds of the members present and voting. The law made by Parliament shall be operational till the resolution remains in force. LECTURES BY PROF. S N GHOSH
6. IIPM 6 CH. – 1 LAW &  It is·SOURCES Consideration for enactment  resolved by the concerned Council of State (s) that it is necessary or expedient in national interest that Parliament should make laws with respect to any matter enumerated in the State List specified in the resolution. Period of operation of  A resolution passed by the State Assembly shall·State Assembly resolution  remain in force for such period not exceeding one year. This may be extended by a further period of one year by passing a fresh resolution by the concerned State Assembly. (B) While proclamation of Emergency is in operation (Article  During such period, the Parliament shall have power to make laws for the·250)   The Constitution contemplates·whole or any part of the territory of India.   Security of India or part thereof is threatened byØthree types of emergency   Failure of ConstitutionØexternal aggression or armed rebellion (Article 352)   Financial stability or credit of India orØmachinery in State(s). (Article 356)   A law made·any part thereof is threatened (Article 360). Period of operation  by Parliament cease to have effect on the expiration of a period of six months after the Proclamation has ceased to operate. (C) Legislate for two or more States by consent and adoption of such legislation by any other State (Article  If it appears to the Legislatures of two or·252) Circumstances of enactment  more States to be desirable that law with regard to any of the matters of the  Resolutions to that effect are passed by·State list be made by the Parliament.   The law thus made by·both the Houses of the Legislatures of concerned States.  the Parliament may also apply to such other State(s), which afterwards adopt the said law by resolution passed by each of the Houses of the Legislature of that  The Act so passed by Parliament may be amended by the Parliament and·State.   Article 123·not by the concerned State(s). ORDINANCE MAKING POWER OF PRESIDENT  of the Constitution empowers the President to promulgate Ordinances during recess of the Parliament. Circumstances when President may promulgate Ordinance  When the Parliament is in recess and the President is satisfied that· circumstances exist which render it necessary for him to take immediate action, he may promulgate such Ordinances as the circumstances appear to him to require.  An Ordinance shall have the same force and effect as an Act of Parliament.·  Every such Ordinance (a) shall be laid before·Validity period of Ordinance  both Houses of Parliament and shall cease to operate at the expiration of six weeks from the reassembly of Parliament, or, if before the expiration of that period resolutions disapproving it are passed by both Houses, upon the passing of the second of those resolutions;’ and (b) may be withdrawn at any time by the President. 1.10 INTERNATIONAL AGREEMENTS/RESOLUTIONS AS LEGISLATIVE FACILITATOR  The term ‘Globalization of Law’ refers to the degree to which the whole world· lives under a single set of legal rules. United Nations has been the front-runner in harmonization of such rules that simultaneously affect different countries. As an accepted international practice, the member countries of the United Nations pass resolution on matters affecting the interest of such countries. And in deference to such a decision, taken at the highest forum of the international body, each of the member country enacts legislations in its  India·country on the similar line (as adopted in the UN General Assembly).  being a constituent member of United Nations, has also passed similar legislations – Consumer Protection Act 1986, Environmental Laws, Trade Marks Act 1999, Patent Act 1970, Information Technology Act 2000 and Arbitration and Conciliation Act 1996.

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THE LAND ACQUISITION ACT, 1894

                             THE LAND ACQUISITION ACT, 1894

                          (As modified up to the Ist September, 1985)

                                                     PART I

                                        PRELIMINARY
               SECTIONS:

                    1.Short title, extent and commencement.

                   2. (Repealed)

                   3. Definitions.

                                                    PART II

                                   ACQUISITION

      Preliminary investigation

        4.Publication of preliminary notification and powers of officers there upon.

        5. Payment for damage.

        Objections

        5A. Hearing of objections.

             Declaration of intended acquisition

        6. Declaration that land is required for a public purpose.

        7.After declaration, Collector to take order for acquisition.

        8.Land to be marked out, measured and planned.

        9.Notice to persons interested.

      10.Power to require and enforce the making of Statements as to names and  interests. Enquiry into measurements, value and claims, and award by the Collector.

       11.Enquiry and award by Collector.

       11A. Period within which an award shall be made.

       12.Award of Collector when to be final.

       13. Adjournment of enquiry.

       13A. Correction of clerical errors, etc.

       14. Power to summon and enforce attendance of witnesses and production of

documents.

       15. Matters to be considered and neglected.

      15A. Power to call for records, etc.

      Taking possession

      16.Power to take possession.

      17.Special powers in cases of urgency.

PART III

         Reference to court and procedure thereon.

SECTIONS.

                18. Reference to Court.

19. Collector’s statement to the Court.

20. Service of notice

21. Restriction on scope of proceedings.

22. Proceedings to be in open Court.

23. Matters to be considered in determining compensation.

24. Matters to be neglected in determining compensation.

25. Amount of compensation awarded by Court not to be lower than the amount

awarded by the Collector.

                26. Form of awards.

27. Costs.

28. Collector may be directed

28A. Re-determination of the amount of compensation on the basis of the

award  of the Court.

PART IV

APPORTIONMENT OF COMPENSATION

                29. Particulars of apportionment to be specified.

30. Dispute as to apportionment.

PART V

PAYMENT

 31.Payment of compensation or deposit of same in Court.

32.Investment of money deposited in respect of lands belonging to persons

incompetent to alienate.

33.Investment of money deposited in other cases.

34.Payment of interest.

PART VI

TEMPORARY OCCUPATION OF LAND

                35. Temporary occupation of waste or arable land. Procedure when difference

as   to compensation exists.

                36.Power to enter and take possession, and compensation on restoration.

37.Difference as to condition of land.

PART VII

ACQUISITION OF LAND FOR COMPANIES

SECTIONS

                38(Repealed)

38A. Industrial concern to be deemed Company for certain purposes.

                39. Previous consent of appropriate Government and execution of agreement

necessary.

                40. Previous enquiry.

41.Agreement with appropriate Government.

42.Publication of agreement.

43. Sections 39 to 42 not to apply where Government bound by agreement to

provide land for Companies.

                44. How agreement with Railway Company may be proved.

44A. Restriction on transfer etc.

44B. Land not to be acquired under this Part except for certain purpose for

private companies other than Government companies.

PART VIII

MISCELLANEOUS

                45. Service of notices.

46. Penalty for obstructing acquisition of land.

47. Magistrate to enforce surrender.

48. Completion of acquisition not compulsory, but compensation to be awarded

when not completed.

                49. Acquisition of part of house or building.

50. Acquisition of land at cost of a local authority or Company.

51. Exemption from stamp-duty and fees.

51A. Acceptance of certified copy as evidence.

                52. Notice in case of suits for anything done in pursuance of Act.

53. Code of Civil Procedure to apply to proceedings before Court.

54.Appeals in proceedings before Court.

55.Power to make rules.

THE LAND ACQUISITION ACT,1894              

Part 1:

                                                         Preliminary

1.Short title, extent and commencement-

(1) This Act may be called the Land Acquisition Act, 1894.

(2) It extends to the whole of India except (the state of Jammu and Kashmir).

(3) It shall come into force on the first day of March 1894.

2. [Repeal and Saving] Rep. Partly by the Repealing and Amending Act, 1914 (10 of 1914), s.3 and Sch. II, and partly by the Repealing act, 1938 (1 of 1938) s.2 and Sch.

3. Definitions. - In this Act, unless there is something repugnant in the subject or context, -

(a) the expression “land” includes benefits to arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth;

[(aa) the expression “local authority” includes a town planning authority (by whatever name called) set up under any law for the time being in force];

(b) the expression “person interested” includes all persons claiming an interest in compensation to be made on account of the acquisition of land under this Act; and a person shall be deemed to be interested in land if he is interested in an easement affecting the land;

(c) the expression “Collector” means the Collector of a district, and includes a Deputy Commissioner and any officer specially appointed by the [appropriate Government] to perform the functions of a Collector under this Act;

[(cc) the expression “corporation owned or controlled by the “State” means any body corporate established by or under a Central, Provincial or State Act, and includes a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), a society registered under the Societies Regulation Act, 1860 (21 of 1860), or under any corresponding law for the time being in force in a State, being a society established or administered by Government and a co-operative society within the meaning of any law relating to co-operative societies for the time being in force in any State, being a co-operative society in which not less than fifty-one per centum of the paid-up share capital is held by the Central Government, or by any State Government or Governments or partly by the Central Government and partly by one or more State Governments].

(d) the expression “Court” means a principal Civil Court of original jurisdiction unless, the [appropriate Government] has appointed (as it is hereby empowered to do) a special judicial officer within any specified local limits to perform functions of the Court under this Act;

[(e) the expression “Company” means -

(i) a company as defined in section 3 of the Companies Act, 1956 (1 of 1956), other than a Government company referred to in clause (cc);

(ii) a society registered under the Societies Registration Act, 1860 (21 of 1860), or under any corresponding law for the time being in force in a State, other than a society referred to in clause (cc);

(iii) a co-operative society within the meaning of any law relating to co-operative societies for the time being in force in any State, other than a co-operative society referred to in clause (cc);]

[(ee) the expression “appropriate Government” means, in relating to acquisition of land for the purposes of the Union, the Central Government, and, in relation to acquisition of land for any other purposes, the State Government;]

[(f) the expression “public purpose” includes-

(i) the provision of village-sites, or the extension, planned development or improvement of existing village-sites;

(ii) the provision of land for town or rural planning;

(iii) the provision of land for planned development of land from public funds in pursuance of any scheme or policy of Government and subsequent disposal thereof in whole or in part by lease, assignment or outright sale with the object of securing further development as planned;

(iv) the provision of land for a corporation owned or controlled by the State;

(v) the provision of land for residential purposes to the poor or landless or to persons residing in areas affected by natural calamities, or to persons displaced or affected by reason of the implementation of any scheme undertaken by Government, any local authority or a corporation owned or controlled by the State;

 (vi) the provision of land for carrying out any educational, housing, health or slum clearance scheme sponsored by Government or by any authority established by Government for carrying out any such scheme, or with the prior approval of the appropriate Government, by a local authority, or a society registered under the Societies Registration Act, 1860 (21 of 1860), or under any corresponding law for the time being in force in a state, or a co-operative society within the meaning of any law relating to co-operative societies for the time being in force in any State;

 (vii) the provision of land for any other scheme of development sponsored by Government or with the prior approval of the appropriate Government, by a local authority;

(viii) the provision of any premises or building for locating a public office, but does not include acquisition of land for companies;]

(g) the following persons shall be deemed person “entitled to act” as and to the extent hereinafter provided (that is to say)-

trustees for other persons beneficially interested shall be deemed the person entitled to act with reference to any such case, and that to the same extent as the person beneficially interested could have acted if free from disability.

a married woman, in cases to which the English law is applicable, shall be deemed the persons, so entitled to act, and whether of full age or not, to the same extent as if she were unmarried and of full age; and

the guardians of minors and the committees or managers of lunatics or idiots shall be deemed respectively the persons so entitled to act, to the same extent as the minors, lunatics or idiots themselves, if free from disability, could have acted:

Provided that –

(i) no person shall be deemed “entitled to act” whose interest in the subject matter shall be shown to the satisfaction of the Collector or court to be adverse to the interest of the person interested for whom he would otherwise be entitled to act;

(ii) in every such case the person interested may appear by a next friend or, in default of his appearance by a next friend, the Collector or Court, as the case may be, shall appoint a guardian for the case to act on his behalf in the conduct thereof;

(iii) the provisions of [Order XXXII of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall, mutatis mutandis, apply in the case of persons interested appearing before a Collector or Court by a next friend, or by a guardian for the case, in proceedings under this Act; and

(iv) no person “entitled to act” shall be competent to receive the compensation money payable to the person for whom he is entitled to act, unless he would have been competent to alienate the land and receive and give a good discharge for the purchase money on a voluntary sale.

 PART  II
 Acquisition

Preliminary investigation

4. Publication of preliminary notification and power of officers thereupon. -

(1) Whenever it appears to the [appropriate Government] the land in any locality [is needed or] is likely to be needed for any public purpose [or for a company], a notification to that effect shall be published in the Official Gazette [and in two daily newspapers circulating in that locality of which at least one shall be in the regional language], and the Collector shall cause public notice of the substance of such notification to be given at convenient places in the said locality [(the last of the dates of such publication and the giving of such public notice , being hereinafter referred to as the date of the publication of the notification)].

(2) Thereupon it shall be lawful for any officer, either generally or specially authorized by such Government in this behalf, and for his servants and workman, -

to enter upon and survey and take levels of any land in such locality;

 to dig or bore into the sub-soil;

to do all other acts necessary to ascertain whether the land is adapted for such purpose;

to set out the boundaries of the land proposed to be taken and the intended line of the work (if any) proposed to be made thereon;

to mark such levels, boundaries and line by placing marks and cutting trenches;

and, where otherwise the survey cannot be completed and the levels taken and the boundaries and line marked, to cut down and clear away any part of any standing crop, fence or jungle;

Provided that no person shall enter into any building or upon any enclosed court or garden attached to a dwelling house (unless with the consent of the occupier thereof) without previously giving such occupier at least seven days’ notice in writing of his intention to do so.

5. Payment for damage. – The officer so authorized shall at the time of such entry pay or tender payment for all necessary damaged to be done as aforesaid, and, in case of dispute as to the sufficiency of the amount so paid or tendered, he shall at once refer the dispute to the decision of the Collector or other chief revenue officer of the district, and such decision shall be final.

                [Objections

5A. Hearing of objections. - (1) Any person interested in any land which has been notified under section 4, sub-section (1), as being needed or likely to be needed for a public purpose or for a Company may, [within thirty days from the date of the publication of the notification], object to the acquisition of the land or of any land in the locality, as the case may be.

(2) Every objection under sub-section (1) shall be made to the Collector in writing, and the Collector shall give the objector an opportunity of being heard [in person or by any person authorized by him in this behalf] or by pleader and shall, after hearing all such objections and after making such further inquiry, if any, as he thinks necessary, [either make a report in respect of the land which has been notified under section 4, sub-section (1), or make different reports in respect of different parcels of such land, to the appropriate Government, containing his recommendations on the objections, together with the record of the proceedings held by him, for the decision of that Government]. The decision of the [appropriate Government] on the objections shall be final.

(3) For the purpose of this section, a person shall be deemed to be interested in land who would be entitled to claim an interest in compensation if the land were acquired under this Act.]

                                                Declaration of intended acquisition

6. Declaration that land is required for a public purpose. - (1) Subject to the provision of Part VII of this Act, [appropriate Government] is satisfied, after considering the report, if any, made under section 5A, sub-section (2)], that any particular land is needed for a public purpose, or for a Company, a declaration shall be made to that effect under the signature of a Secretary to such Government or of some officer duly authorized to certify its orders [and different declarations may be made from time to time in respect of different parcels of any land covered by the same notification under section 4, sub-section (I) irrespective of whether one report or different reports has or have been made (wherever required) under section 5A, sub-section (2)];

[Provided that no declaration in respect of any particular land covered by a notification under section 4, sub-section (1)-

(i) published after the commencement of the Land Acquisition (Amendment and Validation) Ordinance, 1967 (1 of 1967), but before the commencement of the Land Acquisition (Amendment) Act, 1984 (68 of 1984), shall be made after the expiry of three years from the date of the publication of the notification; or

(ii) published after the commencement of the Land Acquisition (Amendment) Act, 1984 (68 of 1984), shall be made after the expiry of one year from the date of the publication of the notification:]

Provided further that] no such declaration shall be made unless the compensation to be awarded for such property is to be paid by a Company, or wholly or partly out of public revenues or some fund controlled or managed by a local authority.

[Explanation 1. - In computing any of the periods referred to in the first proviso, the period during which any action or proceeding to be taken in pursuance of the notification issued under section 4, sub-section (1), is stayed by an order of a Court shall be excluded.

Explanation 2. - Where the compensation to be awarded for such property is to be paid out of the funds of a corporation owned or controlled by the State, such compensation shall be deemed to be compensation paid out of public revenues.]

(2) [Every declaration] shall be published in the Official Gazette [and in two daily newspapers circulating in the locality in which the land is situated of which at least one shall be in the regional language, and the Collector shall cause public notice of the substance of such declaration to be given at convenient places in the said locality (the last of the dates of such publication and the giving of such public notice, being hereinafter referred to as the date of the publication of the declaration), and such declaration shall state] the district or other territorial division in which the land is situate, the purpose for which It is needed, its approximate area, and, where a plan shall have been made of the land, the place where such plan may be inspected.

(3) The said declaration shall be conclusive evidence that the land is needed for a public purpose or for a company, as the case may be; and, after making such declaration, the [appropriate Government] may acquire the land in manner hereinafter appearing.

7. After declaration, Collector to take order for acquisition. – Whenever any land shall have been so declared to be needed for public purpose, or for a Company, the [appropriate Government], or some officer authorized by the [appropriate Government] in this behalf, shall direct the Collector to take order for the acquisition of the land.

8. Land to be marked out, measured and planned. - The Collector shall thereupon cause the land (unless it has been already marked out under section 4) to be market out. He shall also cause it to be measured, and (if no plan has been made thereof), a plan to be made of the same.

9. Notice to persons interested. – (1) The Collector shall then cause public notice to be given at convenient places on or near the land to be taken, stating that the Government intends to take possession of the land, and that claims to compensations for all interests in such land may be made to him.

(2) Such notice shall state the particulars of the land so needed, and shall require all persons interested in the land to appear personally or by agent before the Collector at a time and place therein mentioned (such time not being earlier than fifteen days after the date of publication of the notice), and to state the nature of their respective interests in the land and the amount and particulars of their claims to compensation for such interests, and their objections (if any) to the measurements made under section 8. The Collector may in any case require such statement to be made in writing and signed by the party or his agent.

(3) The Collector shall also serve notice to the same effect on the occupier (if any) of such land and on all such persons known or believed to be interested therein, or to entitled to act for persons so interested, as reside or have agents authorized to receive service on their behalf, within the revenue district in which the land is situate.

(4) In case any person so interested resides elsewhere, and has no such agent, the notice shall be sent to him by post in letter addressed to him at his last known residence, address or place or business and [registered under sections 28 and 29 of the Indian Post Office Act, 1898 (6 of 1898)].

10. Power to require and enforce the making of statements as to names and interests. -

(1) The Collector may also require any such person to make or deliver to him, at a time and place mentioned (such time not being earlier than fifteen days after the date of the requisition), a statement containing, so far as may be practicable, the name of every other person possessing any interest in the land or any part thereof as co-proprietor, sub-proprietor, mortgagee, tenant or otherwise, and of the nature of such interest, and of the rents and profits (if any), received or receivable on account thereof for three years next preceding the date of the statement.

(2) Every person required to make or deliver a statement under this section 9 shall be deemed to be legally bound to do so within the meaning of sections 175 and 176 of the Indian Penal Code (45 of 1860).

        Enquiry into measurements, value and claims, and award by the Collector

11. Enquiry and award by Collector. - [(1)] On the day so fixed, or on any other day to which the enquiry has been adjourned, the Collector shall proceed to enquire into the objection (if any) which any person interested has stated pursuant to a notice given under section 9 to the measurements made under section 8, and into the value of the land [at the date of the publication of the notification under section 4, sub-section (1)], and into the respective interests of the persons claiming the compensation and shall make an award under his hand of-

(i) the true area of the land;

(ii) the compensation which in his opinion should be allowed for the land; and

(iii) the apportionment of the said compensation among all the persons known or believed to be interested in the land, or whom, or of whose claims, he has information, whether or not they have respectively appeared before him :

[Provided that no award shall be made by the Collector under this sub-section without the previous approval of the appropriate Government or of such officer as the appropriate Government may authorize in this behalf:

Provided further that it shall be competent for the appropriate Government to direct that the Collector may make such award without such approval in such class of cases as the appropriate Government may specify in this behalf.

[(2) Notwithstanding anything contained in sub-section (1), if at any stage of the proceedings, the Collector is satisfied that all the persons interested in the land who appeared before him have agreed in writing on the matters to be included in the award of the Collector in the form prescribed by rules made by the appropriate Government, he may, without making further enquiry, make an award according to the terms of such agreement.

(3) The determination of compensation for any land under sub-section (2) shall not in any way affect the determination of compensation in respect of other lands in the same locality or elsewhere in accordance with the other provisions of this Act.

(4) Notwithstanding anything contained in the Registration Act, 1908 (16 of 1908), no agreement made under sub-section (2) shall be liable to registration under that Act.]

[11A. Period shall be which an award within made. - The Collector shall make an award under section 11 within a period of two years from the date of the publication of the declaration and if no award is made within that period, the entire proceeding for the acquisition of the land shall lapse:

Provided that in a case where the said declaration has been published before the commencement of the Land Acquisition (Amendment) Act, 1984 (68 of 1984), the award shall be made within a period of two years from such commencement.

Explanation - In computing the period of two years referred to in this section, the period during which any action or proceeding to be taken in pursuance of the said declaration is stayed by an order of a Court shall be excluded.]

12. Award of Collector when to be final. – (1) Such award shall be filed in the Collector’s office and shall, except as hereinafter provided, be final and conclusive evidence, as between the Collector and the persons interested, whether they have respectively appeared before the Collector or not, of the true area and value of the land, and the appointment of the compensation among the persons interested.

(2) The Collector shall give immediate notice of his award to such of the persons interested as are not present personally or by their representatives when the award is made.

13. Adjournment of enquiry. – The Collector may, for any cause he thinks fit, from time to time adjourn the enquiry to a day to be fixed by him.

[13A. Correction of clerical errors, etc. - (1) The Collector may, at any time but not later than six months from the date of the award, or where he has been required under section 18 to make a reference to the Court, before the making of such reference, by order, correct any clerical or arithmetical mistakes in the award or errors arising therein either on his own motion or on the application of any person interested or a local authority:

Provided that no correction, which is likely to affect prejudicially any person, shall be made unless such person has been given a reasonable opportunity of making a representation in the matter.

(2) The Collector shall give immediate notice of any correction made in the award to all the persons interested.

(3) Where any excess amount is proved to have been paid to any person as a result of the correction made under sub-section (1), the excess amount so paid shall be liable to be refunded and in the case of any default or refusal to pay, the same may be recovered as an arrear of land revenue.]

14. Power to summon and enforce attendance of witnesses and production of documents. - For the purpose of enquiries under this Act the Collector shall have powers to summon and enforce the attendance of witnesses, including the parties interested of any of them, and to compel the production of documents by the same means, and (so far as may be) in the same manner as is provided in the case of a Civil Court under the 1[Code of Civil Procedure 1908 (5 of 1908)].

15. Matters to be considered and neglected. - In determining the amount of compensation, the collector shall be guided by the provisions contained in section 23 and 24.

[15A Power to call for records, etc. - The appropriate Government may at any time before the award is made by the Collector under section 11 call for any record of any proceedings (whether by way of inquiry or otherwise) for the purpose of satisfying itself as to the legality or propriety of any findings or order passed or as to the regularity of such proceedings and may pass such order or issue such direction in relation thereto as it may think fit:

Provided that the appropriate Government shall not pass or issue any order or direction prejudicial to any person without affording such person a reasonable opportunity of being heard.]

                                                                        Taking Possession

16. Power to take possession. - When the Collector has made an award under section 11, he may take possession of the land, which shall thereupon [vest absolutely in the [Government]], free from all encumbrances.

17. Special powers in case of urgency. – (1) In cases of urgency whenever the [appropriate Government], so directs, the Collector, though no such award has been made, may, on the expiration of fifteen days from the publication of the notice mentioned in section 9, sub-section 1). [take possession of any land needed for a public purpose]. Such land shall thereupon [vest absolutely in the [Government], free from all encumbrances.

(2) Whenever, owing to any sudden change in the channel of any navigable river or other unforeseen emergency, it becomes necessary for any Railway Administration to acquire the immediate possession of any land for the maintenance of their traffic or for the purpose of making thereon a river-side or ghat station, or of providing convenient connection with or accesses to any such station, [or the appropriate Government considers it necessary to acquire the immediate possession of any land for the purpose of maintaining any structure or system pertaining to irrigation, water supply, drainage, road communication or electricity,] the Collector may immediately after the publication of the notice mentioned in sub-section (1) and with the previous sanction of the [appropriate Government], enter upon and take possession of such land, which shall thereupon [vest absolutely in the [Government]] free from all encumbrances :

Provided that the Collector shall not take possession of any building or part of a building under this sub-section without giving to the occupier thereof at least forty-eight hours notice of his intention so to do, or such longer notice as may be reasonably sufficient to enable such occupier to remove his movable property from such building without unnecessary inconvenience.

(3) In every case under either of the preceding sub-sections the Collector shall at that time of taking possession offer to the persons interested compensation for the standing crops and trees (if any) on such land and from any other damage sustained by them caused by such sudden dispossession and not excepted in section 24; and, in case such offer is not accepted, the value of such crops and trees and the amount of such other damage shall be allowed for in awarding compensation for the land under the provisions herein contained.

3[(3A) Before taking possession of any land under sub-section (1) or sub-section (2), the Collector shall, without prejudice to the provisions of sub-section (3)-

(a) tender payment of eighty per centum of the compensation for such land as estimated by him to the person interested entitled thereto, and

(b) pay it to them, unless prevented by some one or more of the contingencies mentioned in section 31, sub-section (2),

and where the Collector is so prevented, the provisions of section 31, sub-section (2), (except the second proviso thereto), shall apply as they apply to the payment of compensation under that section.

(3B) The amount paid or deposited under section (3A), shall be taken into account for determining the amount of compensation required to be tendered under section 31, and where the amount so paid or deposited exceeds the compensation awarded by the Collector under section 11, the excess may, unless refunded within three months from the date of Collector's award, be recovered as an arrear of land revenue].

[(4) In the case of any land to which, in the opinion of the [appropriate Government], the provisions of sub-section (1) or sub-section (2) are applicable, the [appropriate Government] may direct that the provisions of section 5A shall not apply, and, if it does so direct, a declaration may be made under section 6 in respect of the land at any time [after the date of the publication of the notification] under section 4, sub-section (1).]

                                                                                    PART III

        Reference to Court and Procedure Thereon

18. Reference to Court. – (1) Any person interested who has not accepted the award may, by written application to the Collector, require that the matter be referred by the Collector for the determination of the Court, whether his objection be to the measurement of the land, the amount of the compensation, the person to whom it is payable, or the apportionment of the compensation among the persons interested.

(2) The application shall state the grounds on which objection to the award is taken:

Provided that every such application shall be made-

(a) if the person making it was present or represented before the Collector at the time when he made his award, within six weeks from the date of the Collector’s award;

(b) in other cases, within six weeks of the receipt of the notice from the Collector under section 12, sub-section (2), or within six months from the date of the Collector’s award, whichever period shall first expire.

19. Collector’s statement to the court. – (1) In making the reference, the Collector shall state for the information of the court, in writing under his hand -

(a) the situation and extent of the land, with particulars of any trees, buildings or standing crops thereon;

(b) the names of the persons whom he has reason to think interested in such land;

(c) the amount awarded for damages and paid or tendered under sections 5 and 17, or either of them, and the amount of compensation awarded under section 11;

[(cc) the amount paid or deposited under sub-section (3A) of section 17; and]

(d) if the objection be to the amount of the compensation, the grounds on which the amount of compensation was determined.

(2) To the said statement shall be attached a schedule giving the particulars of the notices served upon, and of the statements in writing made or delivered by the parties interested respectively.

20. Service of notice. - The Court shall thereupon cause a notice specifying the day on which the Court will proceed to determine the objection, and directing their appearance before the Court on that day, to be served on the following persons, namely: -

(a) the applicant;

(b) all persons interested in the objection, except such (if any) of them as have consented without protest to receive payment of the compensation awarded; and

(c) If the objection is in regard to the area of the land or to the amount of the compensation, the Collector.

21. Restriction on scope of proceedings. – The scope of the enquiry in every such proceeding shall be restricted to a consideration of the interest of the persons affected by the objection.

22. Proceedings to be in open Court. – Every such proceeding shall take place in open Court, and all persons entitled to practice in any Civil Court in the State shall be entitled to appear, plea and act (as the case may be) in such proceeding.

23. Matters to be considered on determining compensation. - (1) In determining the amount of compensation to be awarded for land acquired under this Act, the Court shall take into consideration-

first, the market-value of the land at the date of the publication of the [notification under section 4, sub-section (1)];

secondly, the damage sustained by the person interested, by reason of the taking of any standing crops trees which may be on the land at the time of the Collector’s taking possession thereof;

thirdly, the damage (if any) sustained by the person interested, at the time of the Collector’s taking possession of the land, by reason of serving such land from his other land;

fourthly, the damage (if any) sustained by the person interested, at the time of the Collector’s taking possession of the land, by reason of the acquisition injuriously affecting his other property, movable or immovable, in any other manner, or his earnings;

fifthly, in consequence of the acquisition of the land by the Collector, the person interested is compelled to change his residence or place of business, the reasonable expenses (if any) incidental to such change, and

sixthly, the damage (if any) bona fide resulting from diminution of the profits of the land between the time of the publication of the declaration under section 6 and the time of the Collector’s taking possession of the land.

[(1A) In addition to the market value of the land, as above provided, the Court shall in every case award an amount calculated at the rate of twelve per centum per annum on such market value for the period commencing on and from the date of the publication of the notification under section 4, sub-section (1), in respect of such land to the date of the award of the Collector or the date of taking possession of the land, whichever is earlier.

Explanation. - In computing the period referred to in this sub-section, any period or periods during which the proceedings for the acquisition of the land were held up on account of any stay or injunction by the order of any Court shall be excluded.]

(2) In addition to the market value of the land as above provided, the Court shall in every case award a sum of [thirty per centum] on such market value, in consideration of the compulsory nature of the acquisition.

24. Matters to be neglected in determining compensation. – But the Court shall not take into consideration -

first, the degree of urgency which has led to the acquisition;

secondly, any disinclination of the person interested to part with the land acquired;

thirdly, any damage sustained by him which, if caused by a private person, would not render such person liable to a suit;

fourthly, any damage which is likely to be caused to the land acquired, after the date of the publication of the declaration under section 6, by or in consequence of the use to which it will be put;

fifthly, any increase to the value of the land acquired likely to accrue from the use to which it will be put when acquired;

sixthly, any increase to the value of the other land of the person interested likely to accrue from the use to which the land acquired will be put;

seventhly, any outlay or improvements on, or disposal of the land acquired, commenced, made or effected without the sanction of the Collector after the date of the publication of the [notification under section 4, sub-section (1); [or]

[eighthly, any increase to the value of the land on account of its being put to any use, which is forbidden by law or opposed to public policy.]

[25. Amount of compensation awarded by Court not to be lower than the amount awarded by the Collector. - The amount of compensation awarded by the Court shall not be less than the amount awarded by the Collector under section 11.]

26. Forms of awards. - [(1)] Every award under this part shall be in writing signed by the Judge, and shall specify the amount awarded under clause first of sub-section (1) of section 23, and also the amounts (if any) respectively awarded under each of the other clauses of the same sub-section, together with the grounds of awarding each of the said amounts.

[(2) Every such award shall be deemed to be a decree and the statement of the grounds of every such award a judgment within the meaning of section 2. clause (2), and section 2, clause (9), respectively of the Code of Civil Procedure 1908 (5 of 1908).]

27. Costs. - (1) Every such award shall also state the amount of costs incurred in the proceeding under this Part, and by what persons and in what proportions they are to be paid.

(2) When the award of the Collector is not upheld, the cost shall ordinarily be paid by the Collector, unless the Court shall be opinion that the claim of the applicant was so extravagant or that he was so negligent in putting his case before the Collector that some deduction from his costs should be made or that he should pay a part of the Collector’s costs.

28. Collector may be directed to pay interest on excess compensation. – If the sum, which the Collector did award as compensation, the award of the Court may direct that the collector shall pay interest on such excess at the rate of [nine per centum] per annum from the date on which he took possession of the land to the date of payment of such excess into Court:

[Provided that the award of the Court may also direct that where such excess or any part thereof is paid into Court after the date or expiry of a period of one year from the date on which possession is taken, interest at the rate of fifteen per centum per annum shall be payable from the date of expiry of the said period of one year on the amount of such excess or part thereof which has not been paid into Court before the date of such expiry.]

[28A. Re-determination of the amount of compensation on the basis of the award of the Court. - (1) where in an award under this part, the court allows to the applicant any amount of compensation in excess of the amount awarded by the collector under section 11, the persons interested in all the other land covered by the same notification under section 4, sub-section (1) and who are also aggrieved by the award of the Collector may, notwithstanding that they had not made an application to the Collector under section 18, by written application to the Collector within three months from the date of the award of the Court require that the amount of compensation payable to them may be re-determined on the basis of the amount of compensation awarded by the court:

Provided that in computing the period of three months within which an application to the Collector shall be made under this sub-section, the day on which the award was pronounced and the time requisite for obtaining a copy of the award shall be excluded.

(2) The Collector shall, on receipt of an application under sub-section (1), conduct an inquiry after giving notice to all the persons interested and giving them a reasonable opportunity of being heard, and make an award determining the amount of compensation payable to the applicants.

(3) Any person who has not accepted the award under sub-section (2) may, by written application to the Collector, required that the matter be referred by the Collector for the determination of the Court and the provisions of sections 18 to 28 shall, so far as may be, apply to such reference as they apply to a reference under section 18.]

                                                                              PART IV
Appointment of Compensation

29. Particulars of apportionment to be specified. – When there are several persons interested, if such persons agree in the apportionment of the compensation, the particulars of such apportionment shall be specified in the award, and as between such persons the award shall be conclusive evidence of the correctness of the apportionment.

30. Dispute as to apportionment. – When the amount of compensation has been settled under section 11, if any dispute arises as to the apportionment of the same or any part thereof, or as to the persons to whom the same or any part thereof, is payable, the Collector may refer such dispute to the decision of the Court.

                                                                                PART V
Payment

31. Payment of compensation or deposit of same in Court. - (1) On making an award under section 11, the Collector shall tender payment of the compensation awarded by him to the persons interested entitled thereto according to the award and shall pay it to them unless prevented by some one or more of the contingencies mentioned in the next sub-section.

(2) If they shall not consent to receive it, or if there be no person competent to alienate the land, or if there be any dispute as to the title to receive the compensation or as to the apportionment of it, the Collector shall deposit the amount of the compensation in the Court to which a reference under section 18 would be submitted:

Provided that any person admitted to be interested may receive such payment under protest as to the sufficiency of the amount:

Provided also that no person who has received the amount otherwise than under protest shall be entitled to make any application under section 18:

Provided also that nothing herein contained shall affect the liability of any person, who may receive the whole or any part of any compensation awarded under this Act, to pay the same to the person lawfully entitled thereto.

(3) Notwithstanding anything in this section the Collector may, with the sanction of the [appropriate Government] instead of awarding a money compensation in respect of any land, make any arrangement with a person having a limited interest in such land, either by the grant of other lands in exchange, the remission of land-revenue on other lands held under the same title, or in such other way as may be equitable having regard to the interests of the parties concerned.

(4) Nothing in the last foregoing sub-section shall be construed to interfere with or limit the power of the Collector to enter into any arrangement with any person interested in the land and competent to contract in respect thereof.

32. Investment of money deposited in respect of lands belonging to person incompetent to alternate. – (1) If any money shall be deposited in Court under sub-section (2) of the last preceding section and it appears that the land in respect whereof the same was awarded belonged to any person who had no power to alienate the same, the Court shall-

(a) order the money to be invested in the purchase of other lands to be held under the like title and conditions of ownership as the land in respect of which such money shall have been deposited was held, or

(b) if such purchase cannot be effected forthwith, then in such Government of other approved securities as the Court shall think fit;

and shall direct the payment of the interest or other proceeds arising from such investment to the person or persons who would for the time being have been entitled to the possession of the said land, and such moneys shall remain so deposited and invested until the same be applied-

(i) in the purchase of such other lands as aforesaid; or

(ii) in payment to any person or persons becoming absolutely entitled thereto.

(2) In all cases of money deposited to which this section applies the Court shall order the costs of the following matters, including therein all reasonable charge and expenses incident thereon, to be paid by the Collector, namely: -

(a) the costs of such investments as aforesaid;

(b) the costs of the orders for the payment of the interest or other proceeds of the securities upon which such moneys are for the time being invested, and for the payment out of Court of the principal of such moneys, and of all proceedings relating thereto, except such as may be occasioned by litigation between adverse claimants.

33. Investment of money deposited in other cases. - When any money shall have been deposited in Court under this Act for any cause other than mentioned in the last proceeding section, the court may, on the application of any party interested or claiming an interest in such money, order the same to be invested in such Government or other approved securities as it may think proper, and paid in such manner as it may consider will give the parties interested therein the same benefit the reform as they might have had from the land in respect whereof such money shall have been deposited or as near thereto as may be.

34. Payment of interest - When the amount of such compensation is not paid or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of [nine per centum] per annum from the time of so taking possession until it shall have been so paid or deposited:

[Provided that if such compensation or any part thereof is not paid or deposited within a period of one year from the date on which possession is taken, interest at the rate of fifteen per centum per annum shall be payable from the date or expiry of the said period of one year on the amount of compensation or part thereof which has not been paid or deposited before the date of such expiry.]

  PART VI                                    

                                  TEMPORARY OCCUPATION OF LAND

35. Temporary occupation of waste or arable land. Procedure when difference as to compensation exists. - (1) Subject to the provisions of Part VII of this Act, whenever it appears to the [appropriate Government] that the temporary occupation and use of any waste or arable land are needed for any public purpose, or for a Company, the [appropriate Government] may direct the Collector to procure the occupation and use of the same for such term as it shall think fit, not exceeding three years from the commencement of such occupation.

(2) The Collector shall thereupon give notice in writing to the person interested in such land of the purpose for which the same is needed, and shall, for the occupation and use thereof for such term as aforesaid, and for the materials (if any) to be taken there from, pay to them such compensation, either in a gross sum of money, or by monthly or other periodical payments, as shall be agreed upon in writing between him and such persons respectively.

(3) In case the Collector and the persons interested differ as to the sufficiency of the compensation or apportionment thereof, the Collector shall refer such difference to the decision of the Court.

36. Power to enter and take possession and compensation on restoration. - (1) On payment of such compensation, or on executing such agreement, or on making a reference under section 35, the collector may enter upon and take possession of the land, and use or permit the use thereof in accordance with the terms of the said notice.

(2) On the expiration of the term, the Collector shall make or tender to the persons interested compensation for the damage (if any) done to the land and not provided for by the agreement, and shall restore the land to the persons interested therein:

Provided that, if the land has become permanently unfit to be used for the purpose for which it was used immediately before the commencement of such term, and if the persons interested shall so require, the [appropriate Government] shall proceed under this Act to acquire the land as if it was needed permanently for a public purpose or for a Company.

37. Difference as to condition of land. - In case the Collector and persons interested differ as to the condition of the land at the expiration of the term, or as to any matter connected with the said agreement, the Collector shall refer such difference to the decision of the Court.


PART VII
Acquisition of Land for Companies

38. [Company may be authorized to enter and survey]. Rep. by the Land Acquisition (Amendment) Act, 1984 (68 of 1984), s.21.

[38A. Industrial concern to be deemed Company for certain purposes. - An industrial concern, ordinarily employing not less than one hundred workmen owned by an individual or by an association of individuals and not being a Company, desiring to acquire land for the erection of dwelling houses for workmen employed by the concern or for the provision of amenities directly connected therewith shall, so far as concerns the acquisition of such land, be deemed to be a Company for the purposes of this Part, and the references to Company in [selections 4, 5A, 6, 7 and 50] shall be interpreted as references also to such concern]

39. Previous consent of appropriate Government and execution of agreement necessary. – The provisions of [sections 6 to 16 (both inclusive) and sections 18 to 37 (both inclusive)] shall not be put in force in order to acquire land for any company [under this Part], unless with the previous consent of the [appropriate Government], not unless the Company shall have executed the agreement hereinafter mentioned.

40. Previous enquiry. - (1) Such consent shall not be given unless the [appropriate Government] be satisfied. [either on the report of the Collector under section 5A, sub-section (2), or] by an enquiry held as hereinafter provided, -

[(a) that the purpose of the acquisition is to obtain land for the erection of dwelling houses for workmen employed by the Company or for the provision of amenities directly connected therewith, or

[(aa) that such acquisition is needed for the construction of some building or work for a Company which is engaged or is taking steps for engaging itself in any industry or work which is for a public purpose, or]

(b) that such acquisition is needed for the construction of some work, and that such work is likely to prove useful to the public].

(2) Such enquiry shall be held by such officer and at such time and place as the [appropriate Government] shall appoint.

(3) Such officer may summon and enforce the attendance of witnesses and compel the production of documents by the same means and, as far as possible, in the same manner as is provided by the [Code of Civil Procedure, 1908 (5 of 1908)] in the case of a Civil Court.

41. Agreement with appropriate Government. – If the [appropriate Government] is satisfied [after considering the report, if any, of the Collector under section 5A, sub-section (2), or on the report of the officer making an inquiry under section 40] that [the proposed acquisition is for any of the purposes referred to in clause (a) or clause (aa) or clause (b) of sub-section (1) of section 40], it shall require the Company to enter into an agreement [with the [appropriate Government]], providing to the satisfaction of the [appropriate Government] for the following matters, namely :-

(1) the – [payment to the [appropriate Government]] of the cost of the acquisition;

(2) the transfer, on such payment, of the land to the Company.

(3) the terms on which the land shall be held by the Company,

[(4) where the acquisition is for the purpose of erecting dwelling houses or the provision of amenities connected therewith, the time within which, the conditions on which and the manner in which the dwelling houses or amenities shall be erected or provided;

[(4A) where the acquisition is for the construction of any building or work for a Company which is engaged or is taking steps for engaging itself in any industry or work which is for a public purpose, the time within which, and the conditions on which, the building or work shall be constructed or executed; and]

(5) where the acquisition is for the construction of any other work, the time within which and the conditions on which the work shall be executed and maintained and the terms on which the public shall be entitled to use the work.]

42. Publication of agreement. - Every such agreement shall, as soon as may be after its execution, be published in the official Gazette, and shall thereupon (so far as regards the terms on which the public shall be entitled to use the work) have the same effect as if it had formed part of this Act.

43. Section 39 to 42 not to apply where Government bound by agreement to provide land for Companies. – The provisions of sections 39 to 42, both inclusive, shall not apply and the corresponding sections of Land Acquisition Act, 1870 (10 of 1870), shall be deemed never to have applied, to the acquisition of land for any Railway or other Company, for the purposes of which, [under any agreement with such Company, the secretary of State for India in Council, the Secretary of State, [the Central Government or any State Government] is or was bound to provide land].

44. How agreement with Railway Company may be proved. – In the case of the acquisition of land for the purpose of a Railway Company, the existence of such an agreement as is mentioned in section 43 may be proved by the production of a printed copy thereof purporting to be printed by order of Government.

[44A. Restriction on transfer, etc. - No Company for which any land is acquired under this Part shall be entitled to transfer the said land or any part thereof by sale, mortgage, gift, lease or otherwise except with the previous sanction of the appropriate Government.

44B. Land not to be acquired under this Part except for certain purpose for private companies other than Government companies. - Notwithstanding anything contained in this Act, no land shall be acquired under this Part, except for the purpose mentioned in clause (a) of sub-section (1) of section 40, for a private company, which is not a Government company.

Explanation. - "Private company" and "Government company" shall have the meaning respectively assigned to them in the Companies Act, 1956 (1 of 1956).]


PART VIII
MISCELLANEOUS

45. Service of notices. - (1) Service of any notice under this Act shall be made by delivering or tendering a copy thereof signed, in the case of a notice section 4, by the officer therein mentioned, and, in the case of any notice, by or by order of the Collector or the Judge.

(2) Whenever it may be practicable, the service of the notice shall be made on the person therein named.

(3) When such person cannot be found, the service may be made on any adult male member of his family residing with him; and, if no such adult male member can be found, the notice may be served by fixing the copy on the outer door of the house in which the person therein named ordinarily dwells or carries on business, or by fixing a copy thereof in some conspicuous place in the office of the officer aforesaid or of the Collector or in the court-house, and also in some conspicuous part of the land to be acquired :

Provided that, if the Collector or Judge shall so direct, a notice may be sent by post, in a letter addressed to the person named therein at his last known residence, address or place of business and 6[registered under sections 28 and 29 of the Indian Post Office Act, 1898 (6 of 1898), and service of it may be proved by the production of the addressee's receipt.

46. Penalty for obstructing acquisition of land. - Whoever willfully obstructs any person in doing any of the acts authorized by section 4 or section 8, or willfully fills up, destroys, damages or displaces any trench or mark made under section 4, shall, on conviction before a Magistrate, be liable to imprisonment for any term not exceeding one month, or to fine not exceeding 1[five hundred rupees], or to both.

47. Magistrate to enforce surrender. – If the Collector is opposed or impeded in taking possession under this Act of any land, he shall, if a Magistrate, enforce the surrender of the land to himself, and if not a Magistrate, he shall apply to a Magistrate or (within the towns of Calcutta, Madras and Bombay) to the Commissioner of Police, and such Magistrate or Commissioner (as the case may be) shall enforce the surrender of the land to the Collector.

48. Completion of acquisition not compulsory, but compensation to be awarded when not completed. – (1) Except in the case provided for in section 36, the Government shall be at liberty to withdraw from the acquisition of any land of which possession has not been taken.

(2) Whenever the Government withdraws from any such acquisition, the Collector shall determine the amount of compensation due for the damage suffered by the owner in consequence of the notice or of any proceedings there under, and shall pay such amount to the person interested, together with all costs reasonably incurred by him in the prosecution of the proceedings under this Act relating to the said land.

(3) The provision of Part III of this Act shall apply, so far as may be, to the determination of the compensation payable under this section.

49. Acquisition of part of house or building. – (1) The provisions of this Act shall not be put in force for the purpose of acquiring a part only of any house, manufactory or other building, if the owner desires that the whole of such house, manufactory or building shall be so acquired:

Provided also that, if any question shall arise as to whether any land proposed to be taken under this Act does or does not form part of a house, manufactory or building within the meaning of this section, the Collector shall refer the determination of such question to the Court and shall not be take possession of such land until after the question has been determined.

In deciding on such a reference the Court shall have regard to the question whether the land proposed to be taken, is reasonably require for the full and unimpaired use of the house, manufactory or building.

(2) If, in the case of any claim under section 23, sub-section (1), thirdly, by a person interested, on account of the severing of the land to be acquired from his other land, the [appropriate Government] is of opinion that the claim is unreasonable or excessive, it may, at any time before the Collector has made his award, order the acquisition of the whole of the land of which the land first sought to be acquired forms a part.

(3) In the case last hereinbefore provided for, no fresh declaration or other proceedings under sections 6 to 10, both inclusive, shall be necessary; but the Collector shall without delay furnish a copy of the order of the [appropriate Government] to the person interested, and shall thereafter proceed to make his award under section 11.

50. Acquisition of land at cost of a local authority of Company. - (1) Where the provisions of this Act are put in force for the purpose of acquiring land at the cost of any fund controlled or managed by a local authority or of any Company, the charges of and incidental to such acquisition shall be defrayed from or by such fund or company.

(2) In any proceeding held before a Collector or Court in such cases the local authority or Company concerned may appear and adduce evidence for the purpose of determining the amount of compensation.

Provided that no such local authority or Company shall be entitled to demand a reference under section 18.

51. Exemption from stamp duty and fees. - No award or agreement made under this Act shall be chargeable with stamp duty, and no person claiming under any such award or agreement shall be liable to pay any fee for a copy of the same.

[51A. Acceptance of certified copy as evidence. - In any proceeding under this Act, a certified copy of a document registered under the Regulation Act, 1908 (16 of 1908), including a copy given under section 57 of that Act, may be accepted as evidence of the transaction recorded in such document].

52. Notice in case of suits for anything done in pursuance of Act. - No suit or other proceeding shall be commenced or prosecuted against any person for anything done in pursuance of this Act, without giving to such person a month’s previous notice in writing of the intended proceeding, and of the cause thereof, nor after tender of sufficient amends.

53. Code of Civil Procedure to apply to proceedings before Court – Save in so far as they may be inconsistent with anything contained in this Act, the provisions of the [Code of Civil Procedure, 1908 (5 of 1908)], shall apply to all proceedings before the Court under this Act.

[54. Appeals in proceedings before Court. - Subject to the provisions of the Code of Civil Procedure, 1908 (5 of 1908), applicable to appeals from original decrees, and notwithstanding anything to the contrary in any enactment for the time being in force, an appeal shall only lie in any proceedings under this Act to the High Court from the award, or from any part of the award, of the Court and from any decree of the High Court passed on such appeal as aforesaid an appeal shall lie to 4[the Supreme Court] subject to the provisions contained in section 110 of the Code of Civil Procedure, 1908, and in Order XLV thereof.]

55. Power to make rules. - (1) The [appropriate Government] shall have power to make rules consistent with this Act for the guidance of officers in all matters connected with its enforcement, and may from time to time alter and add to the rules so made:

[Provided that the power to make rules for carrying out the purposes of Part VII of this Act shall be exercisable by the Central Government and such rules may be made for the guidance of the State Governments and the officers of the Central Government and of the State Governments:

Provided further that every such rule made by the Central Government shall be laid as soon as may be after it is made, before each House of parliament while it is in session for a total period of thirty days which may be comprised in one session or two or more successive sessions, and if, [before the expiry of the session immediately following the session or the successive sessions aforesaid], both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule :]

[Provided also that every such rule made by the State Government shall be laid, as soon as may be after it is made, before the State Legislature.]

(2) The power to make, alter and add to rules under sub-section (1) shall be subject to the conditions of the rules, being made, altered or added to after previous publication.

(3) All such rules, alterations and additions shall be published in the Official Gazette, and shall thereupon have the force of law.

                                                                      ANNEXURE

                                          Exact from the Land Acquisition (Amendment) Act, (1962)

                                                                     (31 of 1962)

7. Validation of certain actuations.-      Notwithstanding any judgment ,decree per order of any court, every actuation of land for a company made or purporting to have been made under part VII of the principle Act before the 20th day of July 1962 , shall,in so far as such acquisition is not for any of the purposes mentioned in clause (a) or clause (b) of sub-section (1) of section 40 of the principal Act, be deemed to have been made for the purpose mentioned in clause (aa) of the said sub-section, and accordingly every such acquisition and any proceeding, order, agreement or action in connection with such acquisition shall be, and shall be deemed always to have been, as valid as if the provisions of section 40 and 41 of the principal Act, as amended by this Act, were in force at all material times when such acquisition was made or proceeding was held or order was made or agreement was entered into or action was taken.

Explanation – In this section “Company” has the same meaning as in clause (e) of section 3 of the principal Act as amended by this Act.       

***********

The Land Acquisition (Amendment) Act, 1984 – Extract of Section 30 – Transitional provisions.

30(1) The provisions of sub-section (1A) of section 23 of the principal Act, as inserted by Clause (a) of section 15 of this Act, shall apply, and shall be deemed to have applied, also to and in relation to-

(a)    every proceeding for the acquisition of any land under the principal Act pending on the 30th day of April, 1982 (the date of introduction of the Land Acquisition (Amendment) Bill in the House of people) in which no award has been made by the Collector before that date;

(b)    every proceeding for the acquisition of any land under the principal Act commenced after that date, whether or not an award has been made by the Collector before the commencement of this Act.

(2)    The provisions of sub-section (2) of section 23 and section 28 of the principal Act, as amended by clause (b) of section 15 and section 18 of this Act respectively, shall apply, and shall be deemed to have applied, also to, and relation to, any award made by the Collector or Court or to any order passed, by the High Court or Supreme Court in appeal against any such award under the provisions of the principal Act after the 30th day of April 1982 (the date of introduction of the Land Acquisition (Amendment) Bill 1982, in the House of the People and before the commencement of this Act.

(3)    The provisions of section 34 of the principal Act, as amended by section 20 of this Act, shall apply, and shall be deemed to have applied, also to, and in relation to,

(a)    every case in which possession of any land acquired under the principal Act had been taken before the 30th of April, 1982 (the date of introduction of the Land Acquisition (Amendment) Bill 1982, in the House of the People ), and the amount of compensation for such acquisition had not been paid or deposited under section 31 of the principal Act until such date, with effect on and from that date; and
(b)    every case in which such possession had been taken on or after that date but before the commencement of this Act without the amount of compensation having been paid or deposited under the said section 31 with effect on and from the date of taking such possession.                        

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