Annexure 1 THE LAND ACQUISITION ACT, 1894 ACT ... - WWF-India

Annexure 1 

THE LAND ACQUISITION ACT, 1894 

ACT NO.1 OF 1894 

[AS ON 1955] 

An Act to amend the law for the acquisition of land for public purposes and for 

Companies. 

WHEREAS it is expedient to amend the law for the acquisition of land needed for 

public purposes and for Companies and for determining the amount of 

compensation to be made on account of such acquisition; It is hereby enacted as 

follows:- 

PART I-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 Part B States; and 

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

(Part I - Preliminary) 

2.[Repeal ] Rep.party 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.2and Sch. 

3.Definication:- 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 fastended to anything attached to the earth; 

(b) the expression " person interested" includes all persons claiming an interest in 

compensation to be made on accout 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 

Depurty Commissioner and any officer specially appointed by the appropriate 

Government to perform the function of a Collector under this Act;

(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 juducial officer within any specifed lacal limits to perfom the 

functions of the Court under this Act; 

(e) the expression "Company" means a Company registered under the {See now 

the Indian Companies Act, 1913( 7 of 1913)} Indian Companies Act, 1882, or 

under the (English) Companies Acts, 1862 to 1890, or incorporated by an Act of 

Parliament {Ins.by the A.O.1950.} [ of the United Kingdom] or by an Indian law, 

or by Royal Charter or Letters Patent {Ins.by Act 17 of 1919, s.2.}[ and includes a 

society registered under the Societies Registration Act, 1860, and a registered 

society within the meaning of the Co-operative Societies Act, 1912]; 

{Ins.by the A.O.1950.}[(ee) the expression "appropriate Government" means, in 

relation 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 the provision of village-sites In 

districts in which the appropriate Government shall have declared by notification 

in the Official Gazette that it is customary for the Government to make such 

provision; and 

(g) the following persons shall be deemed persons "entitled to act" as and to the 

extent hereinafter provided (that is to say)- 

trustees for other persons beneficially interested shall be deemed the persons 

entitled to act with reference to any such case, and that to the same extent as the 

persons 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 person 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, 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 {See now the Code of Civil Procedure, 1908 (5 of 1908), 

Sch.I Order XXXII.} Chapter XXXI of the Code of Civil Procedure 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 

purphase- many on a voluntary sale. 

Preliminary investigation 

PART II-ACQUISITION 

{As to amendments with which this section should be read when land is required 

for the purposes of a Company, See s.38 (2) , infra.) 

(A protected monument may be acquired under this Act as if its preservation were 

a "public purpose" within the meaning of the Act, see s.10 of the Ancient 

Monuments Preservation Act, 1904 (7 of 1904).} 4.Publication of preliminary 

notification and powers of officers of there upon:- (1) Whenever it appears to the 

appropriate Government that land in any locality {Ins.by Act.38 of 1923, s.2.} [ is 

needed or ] is likely to be needed for any public purpose, a notification to that 

effect shall be published in the Official Gazette, and the Collector shall cause 

public notice of the substance of such notification to be given at convenient places 

in the said locality. 

(2) Thereupon it shall be lawful for any officer, either generally or specially 

authorised by such Government in this behalf, and for his servants and workmen.- 

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

to dig or bore into the subsoil ; 

to do all other acts necessary to ascerttain 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 authorised shall at the time of such entry 

pay or tender payment for all necessary damage 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- 

offecer of the district, and such decision shall be final. 

[Objections {Ins.by s.3, ibid.} 

5 A.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 after the issue 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 either in 

person or by pleader and shall, after hearing all such objections and after making 

such further inquiry, if any, as he thinks necessary, submit the case for the 

decision of the appropriate Government, together with the record of the 

proceedings held by him and a report containing his recommendations on the 

objections,The decision of the appropriate Government on the objections shall be 

final. 

(3) For the purposes 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 

provisions of Part VII of this Act , {Subs.by Act 38 of 1923, s.4.for "whenever it 

appears to the L.G."}[when the appropriate Government is satisfied, after 

considering the report, if any, made under section 5 A, sub-Section (2),] that any 

particular land is needed for 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 authorised to certify its orders : 

Provided that no scuh 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. 

(2 ) The declaration shall be published in the Official Gazette, and 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 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 

shall have been so declared to be needed for a public purpose or for a Company 

the appropriate Government, or some officer authorised 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 marked 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 

compensation for all interest 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 agenty before the 

Collector at a time and place therein mentioned (such time not being earlier that

fifteen days after the date of publication of the notice), and to state the nature of 

their respective interest 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 entitled to act for 

persons so interesed a s reside or have agents authorised 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 a letter addressed to him at his last known 

residence, address or place of business and registered under Part III of the {See 

now the Indian Post Office Act, 1898 (6 of 1898).} 

Indian Post Office Act, 1866. 

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 therof as co-proprietor, sub-proprietor, mortagagee, 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 statment under this section or 

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. 

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

11.Enquiry and award by Collector:- On the day so fixed, or any other day to 

which the enquiry has been adjourned, the Collector shall proceed to enquire into 

the objections (if any) which any person interested has stated pursuant to a notice 

given under section 9 to the measurements made under sectiuon 8 , and into the 

value of the land {Ins.by Act 38 of 1923, s.5}[ 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, of whom, or of whose claims, he has 

information, whether or not they have respectively appeared before him, 

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 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 apportionment 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. 

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 

power to summon and enforce the attendance of witnesses, including the parties 

interested or 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 {See now the Code of Civil Procedure, 1908 (5 of 1908).} 

Code of Civil Procedure. 

15.Matters to be considered and neglected:- In determining the amount of 

compensation, the Collector shall be guided by the provisions contained in 

sections 23 and 24. 

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 cases 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 waste or arable

land needed for public purposes or for a Company.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 access to any such 

station, 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 hour's notice of his intention so to do, or such longer notice as may be 

reasonably sufficient to enable such occupier to remobe his movable property 

from such building without unecessary inconvenience. 

(3) In every case under either of the preceding sub-sections the Collector shall at 

the time of taking possession offer to the persons interested compensation for the 

standing crops and trees (if any) on such land and for any other damage sustained 

by them caused by such sudden dispossession and not excepted in section 24; and, 

in cases, 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. 

{Ins.by Act 38 of 1923, s.6}[(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 not so direct, a declaration may be made 

under section 6 in respect of the land at any time after the publication of the 

notification under section 4, sub-section (1).] 

PART III-REFRENCE TO COURT AND PROCEDURE THEREON 

18.Reference to Court:- (1) Any person interested who has not accepted the 

award may, be 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 persons to 

whom it is payable, or the appropriate 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.Collectors 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 for tendered under sections 5 and 

17, or either of them, and the amount of compensation awarded under section 11; 

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 

apperance 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 inquiry in every such 

proceedings shall be restrcited to a consideration of the interests 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 practise in any Civil Court in the State shall 

be entitled to appear, and act (as the case may be) in such proceeding. 

23.Matters to be considered in 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 {Subs, by 

Act 38 of 1923, s.7, for "declaration relating thereto under s.6."} [notification 

under section 4, sub-section (1)]; 

secondly, the damage by the person interested, by reason of the taking of any 

standing crops or 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 taking possession of the l;and, by the reason of 

severing 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, if in the 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. 

(2) In addition to the market-value of the land as above provided the Court shall in

every case award a sum of fifteen per centum on such market-value, in 

consideration of the compulsory nature of the acquisition. 

Comment: "It is settled law that the burden of proof of market value 

prevailing as on the date of publication of Section 4(1) notification is 

always on the claimants. Though this Court has time and again pointed out 

the apathy and blatant lapse on the part of the acquiring officer to adduce 

evidence and also improper or ineffective or lack of interest on the part of 

the counsel for the State to cross-examine the witnesses on material facts, it 

is the duty of the Court to carefully scrutinise the evidence and determine 

just and adequate compensation. If the sale deeds are fond to be genuine, 

the market value mentioned therein must be presumed to be correct. If the 

genuineness is doubted, it cannot be relied upon, Proper tests and principles 

laid down by this Court must be applied to determine compensation." 

Hookiyar Singh v. Special Land Acquisition Officer, Moradabad AIR 1996 

SUPREME 

COURT 3207 

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, if caused by a private person, would not 

render such persons 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 

accure from the use to which the land acquires will be put; or 

seventhly, any outlay or improvements on, or disposal of, the land acquired, 

commenced, made or affected without the sanction of the Collector after the date 

of the publication of the {Subs, by Act 38 of 1923, s.8, for "declaration under 

s.6."}[notification under section4, sub-section (1)].

25.Rules as to amount of compensation:- (1) When the applicant has made a 

claim to compensation, pursuant to any notice given under section 9, the amount 

awarded to him by the Court shall not exceed the amount so claimed or be less 

than the amount awarded by the Collector under section 11. 

(2) when the applicant has refused to make such claim or has omitted without 

sufficient reason (to be allowed by the Judge) to make such claim, the amount 

awarded by the Court shall in no case exceed the maount awarded by the 

Collector. 

(3) When the applicant has omitted for a sufficient reason (to be allowed by the 

Judge) to make such claim, the amount awarded to him by the Court shall not less 

than, and may exceed, the amount awarded by the Collector. 

(S.26 was re-numbered as sub-section (1) of that section by Act 19 of 

1921.s.2.)[26.Form 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. 

{Ins.by s.2, Act 19 of 1921.}[(2) every such award shall be deemed to be a decree 

and the statement of the grounds of every such award a judgement within the 

meaning of section 2, clause (2) and section 2, clause (9), respectively, of the Code 

of Civil Procedure, 1908.] 

27.Costs:- (1) Every such award shall also state the amount of costs incurred in 

the proceedings 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 costs shall ordinarlily be 

paid by the Collector, unless the Court shall be of 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, in the poinion of the Court, the Collector ought to have a awarded as 

compensation is in excess of 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 six per centum from the date on which he 

took possession of the land to the date of payment of such excess into Court.

PART IV-APPORTIONMENT OF COMPENSATION 

29.Particulars of apportionment to be specified :- Where 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 consclusive evidence of the 

correctness of the apportionment. 

30.Disputes 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 to 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 entitlted thereto according to the award 

and shall pay it to them unless prevented by some one or more of the contigencies 

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

espect 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 landrevenue 

on other lands 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 (As to persons who are competent to contract, see s.11 of 

the Indian Contract Act, 1872 (9 of 1872).)competent to contract in respect 

thereof. 

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

competent to alienate:- (1) If any money shall be deposited in Court under subsection 

(2) of the last preceding section and it appears that the land in respect 

whereof the same was awarded belonged to any person who has 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 or 

other approved securities as the Court shall think fit; 

and shall direct the payment of the interest or other proceeds arising from such 

investmnet 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 moneys deposited to which this section applies the Court shall 

order the costs of the following matters, including therein all reasonable charges 

and expenses incident thereto, 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 amy be occasioned by litigation between adverse

claimants. 

33.Investment of money deposited in other cases:- When any money shal have 

been deposited in Court under this Act for any cause other than that mentioned in 

the last preceding section, the court may, on the appliation 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 amy think proper, and may direct 

the interest or other proceeds of any such investment to be accumulated and paid 

in such manner as it amy consider will give the parties interested therein the same 

benefit thereform 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 six per centum per annum from 

the time of so taking possession until it shall have been so paid or deposited. 

PART VI TEMPORARY OCCUPATION OF LAN 

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 persons 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 therefrom, pay to them such compensation, either in a gross sum 

of moneys , 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 excuting 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 persons interested therein: 

Provided that, if the land has become permanently unfit tobe used to 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 on 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 authorised to enter and survey:- (1) {The words "Subject 

to such rules as the G.G.of India in C.may from time to time prescribe in this 

behalf" rep.by s.2 and Sch.I of Act 38 of 1920.} The appropriate Government may 

authorise any officer of any Company desiring to acquire land for its purposes to 

exercise the powers conferred by section 4. 

(2) In every such case section 4 shall be constructed as if for the words "for such 

purpose" the words "for the purposes of the Company" were substituted; and 

section 5 shall be construted as if after the words "the officer" the words "of the 

Company" were inserted. 

{Ins, by Act 16 of 1933, s.6.}[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 hosuses 

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 sections 5A, 6, 7, 17 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 section 6 to 37 (both inclusive) shall not be put in 

force in order to acquire land for any Company, unless with the previous consent 

of the appropriate Governmnet, nor 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, {Ins, by Act 38 of 1923, s.9}[either on the report of the 

Collector under Section 5A, Sub-section (2), or] by an enquiry held as hereinafter 

provided,- 

{Subs, by Act 16 of 1933, s.3, for the original clauses (a) and (b).}[(a) that the 

purposes of the acquistion 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 

(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 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 {See now the Code of Civil Procedure, 1908 (5 

of 1908).} Code of Civil Procedure in the case of a Civil Court. 

41.Agreement with appropriate Government:- {The words "Such officer shall 

report to the L.G.the result of the enquiry and" were rep.by Act 38 of 1923, s.10.} 

If the appropriate Government is satisfied {Ins, by s.10, ibid.} [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 sub-section 40] that {Ins, by Act 16 

of 1933, s.4.) [the purpose of the proposed 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 that] the proposed 

acquisition is needed for the construction of a work, and that such work is likely to 

prove useful to the public, it shall {The words "Subject to such rules as the G.G.in 

C.may from time to time prescribe in this behalf" rep.by Act 38 of 1920, s.2 and 

Sch.I.} 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 payments 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; 

{Subs, by Act 16 of 1933, s.4, for the original clauses (4) and (5).} [(4) where the 

acquisition is for the purpose of erecting dwelling houses or the provision of 

amenities connected therwith, the time within which, the conditions on which and 

the manner in which the dwelling houses or amenities shall be erected or provided; 

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 publised {The words "in the Gazette of India and also" 

rep.by the A.O.1937.} in the Official Gazette and shall thereupon (so as 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.Sections 39 to 42 not to apply where Government bound by agreement:- 

The provisions of sections 39 to 42, both inclusive, shall not apply and the 

corresponding section of the {Rep.by this Act.} Land Acquisition Act, 1870, shall 

be deemed never tohave applied, to the acquisition of land for any Railway or 

other Company, for the purposes of which, {Subs, by the A.O.1937, for "under 

any agreement between such company and the Secretary of State for India in 

Council, the Government is, or was bound to provide land"} [under any agreement 

with such Company, the Secretary State for India in Council, the Secretary of 

State, the Central Government of 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 purposes 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. 

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 under section

4, by the officer therein mentioned, and, in the case of any other 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 thererin named ordinarily dwells or carries on business, 

or by fixing a copy thereof in some conspicous place in the office of the officer 

aforesaid or of the Collector or in the Court-house, and also in some conspicous 

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 registered under Part III of the {See now the 

Indian Post Office Act, 1898 (6 of 1898).} Indian Post Office Act, 1866, and 

service of it may be proved by the production of the addressee's receipt. 

46.Penalty for obstructing acquisition of land:- Whoever wilfully obstructs any 

person in doing any of the acts authorised by section 4 or section 8, or wilfully fils 

up, destroys, damages or displace 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 fifty 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 fo 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 to the damage suffered by the 

owner in consequence of the notice or of any proceedings thereunder, 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 provisions 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 of 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 desire that the whole of such house, 

manufactory or building shall be so acquired: 

Provided that the owner may, at any time before the Collector has made his award 

under section 11, by notice in wriitng, withdraw or modify his expressed desire 

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 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 required 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), thridly, 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 or 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 acquistion 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. 

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 months'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 (See now the Code of Civil Procedure, 1908 (5 of 1908).} Code of Civil 

Procedure shall apply to all proceedings before the Court after this Act. 

{Subs, by Act 10 of 1921, s.3.} [54.Appeals in proceedings before Court:- 

Subject to the provisions of the Code of Civil Procedure, 1908 applicable to 

appeals from the 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 form any part of 

the award, of the Court and from any decree of the High Court passed on such 

appeal as aforesaid as appeal shall lie of the Supreme Court subject to the 

provisions contained in section 110 of the Code of Civil Procedure, 1908, and in 

Order XLV thereof.] 

to make rules consistent with this Act for the guidance of officers in 

55.Power to make rules:- (1) The appropriate Government shall {The words 

"subject to the control of the G.G.in C." were rep.by Act 38 of 1920, s.2 and 

Sch.I} have power all matters connected with its enforcement, any may from time 

to time alter and add to the rules so made.{The provisio was rep.by the 

A.O.1937.} 

(2) The power to make, alter and add to rules under sub-section (1) shall be subject 

to the condition of the rules being made, altered or added to after previous 

publication.

(3) All such rules, alterations and additions shall {The words "when sanctioned by 

the G.G.in C." were rep.by Act 4 of 1914, s.2 and Sch., Pt.I} be published in the 

Official Gazette, and shall thereupon have the force of law.

Annexure 1 THE LAND ACQUISITION ACT, 1894 ACT ... - WWF-India

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