The Government of A.P issued an order for acquisition of land and later the Government refused to take the land. Meanwhile one year period had completed. Advise the land losers for loss sustained by them for a period of one year as per Land Acquisition Act.

1. Whether order for acquisition by Govt. of A.P is valid? YES

2. Whether the withdrawal of acquisition by Govt. is valid? YES

3. Whether the Govt. is liable to pay damages for the loss? YES

Section 48 (1) and (2) the rights of the owner are well protected by subsection (2) of section 48 of the Act and if he suffered any damage in consequence of acquisition proceedings, he is to be compensated and subsection (3) of section 48 provides as to how compensation is to be determined.

Application:

This problem is related to the Withdrawal from acquisition. Shanti Sports Club and Another Vs. Union of India and Others, 2001 (60) DRJ 16, has examined the law relating to the powers of the state to withdraw from acquisition of land notified for acquisition under Section 4 and 6 of the Land Acquisition Act. It has been observed that when Section 4 and 6 notifications are issued, much has been done towards the acquisition process and that process cannot be reversed merely by rescinding those notifications. Rather it is Section 48 under which, after withdrawal from acquisition is made, compensation due for any damage suffered by the owner during the course of acquisition proceedings is determined and given to him. It is therefore implicit that withdrawal from acquisition has to be notified.

Larsen & Toubro Ltd. Vs. State of Gujarat and Others, (1998) 4SCC 387, the Court considered the question whether the power under section 48(1) of the Act can be exercised by the Government without notifying the factum of withdrawal to the beneficiary of the acquisition. It was argued that in contrast to Sections 4 and 6, Section 48(1) of the Act does not contemplate issue of any notification and withdrawal from the acquisition can be done by an order simplicity.

Conclusion:

In the instant problem, the order for acquisition by Government of A.P is valid. Similarly the withdrawal of acquisition by Government is also valid, but the Government is liable to pay damages for the loss occurred due to withdrawal of order of acquisition.