CHANAKYA

UNIVERSITY

NATIONAL

LAW

PATNA - 800001

A PROJECT WORK ON
ISSUES AND RIGHTS PERTAINING TO LAND
ACQUISITION BILL

Submitted To: DR. MANORANJAN KUMAR

LECTURER, CNLU
Subject :JURISPRUDENCE-II

Submitted By: ARUNABH SHARMA

Roll No.

: 725

Course

Year

: 3rd Year, 6th Semester

B.A.LL.B (Hons.)

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ACKNOWLEDGEMENT
I feel myself highly delighted, as it gives me incredible pleasure to present a
research paper on ISSUES
ACQUISITION BILL.

AND

RIGHTS

PERTAINING

TO

LAND

I would like to enlighten my readers regarding this topic and I hope I have
tried my best to pave the way for bringing more luminosity to this topic.

I am grateful to my faculty DR. MANORANJAN KUMAR who has given me

an idea and encourage me to venture this project. I would like to thank
librarian of CNLU for their interest in providing me a good back up material

At

finally

yet

importantly

would

like

to

thank

my

parents

for

INCOMMENSURABLE support.

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RESEARCH METHODOLOGY
AIMS AND OBJECTIVES:
The aim of the project is to present a detailed study of ISSUES AND RIGHTS
PERTAINING TO THE LAND ACQUISITION BILL in relation to JURISPRUDENCE
II.

SCOPE AND LIMITATIONS:

Though this is an immense project and pages can be written over the topic but
because of certain restrictions and limitations I was not able to deal with the topic in
great detail.

SOURCES OF DATA:
The following secondary sources of data have been used in the project1

Articles

Books

Internet

METHOD OF WRITING:
The method of writing followed in the course of this research paper is primarily
analytical.

METHOD OF RESARCH:
The research work of this project is based on doctrinal method.

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MODE OF CITATION:
The researcher has followed a uniform mode of citation throughout the course of
this research paper.

TABLE OF CONTENTS
ACKNOWLEDGEMENT
RESEARCH METHODOLOGY

1.
2.
3.
4.
5.
6.

INTRODUCTION
LAND ACQUISITION LAW
LAND ACQUISITION ACT 1960
COMPULSORY LAND ACQUISITION
MEASURES OF COMPENSATION
CONCLUSION
7. BIBLIOGRAPHY

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INTRODUCTION:-

Land acquisition involves the compulsory taking of land, often against the will
of the land owners. The law in Malaysia requires the state to pay compensation
adequately; however, adequate compensation is not defined in the statute.
Historically, the courts seem to have succumbed to the pretence that the adequacy
requirement may be achieved by giving sufficient monetary rewards in exchange.
Freedom of the person and the right to acquire, hold and enjoy property are the two
pillars on which a democratic society rests. These are characteristics as natural
rights of the people. Property is not only an economic asset; it also has emotional
and sentimental value (Jain & Xavier, 1996). The right to property is not absolute.
This right has always been regarded as being subject to eminent domain, an
inherent right of the state, an essential part of the state sovereignty (Ghosh, 1973).
Eminent domain is subject to two essential conditions: private property is to be
taken only for public use; and just compensation must be paid for the property
taken (Keith, 1984). Land acquisition, therefore, is a way of direct control over
land development. Land acquisition is also the governments tool to assemble land
in resolving the land supply problems for development.1 Land assembly
through land acquisition is a way out to solve problems with landownership and
landowners reluctance to offer their land for development2 (Omar & Ismail, 2005).

1 www.scribd.com/landacquisitionbill
2 N.p., n.d. Web.
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LAND ACQUISITION LAW:The power of compulsory purchase supports the land assembly negotiations in
order to avoid situations where individual landowners can freeze development by
refusing to sell, particularly by trying to hold out for unreasonable purchase PRICE
(Ball, 1996). Under certain circumstances, such as when there arelandownership
problems and passive landowners, the government feels that to undertake land
development by compulsory purchase is more complicated, time consuming and
more expensive than to reclaim land from sea for development in certain
waterfront areas (Omar, 1999; Omar & Ismail, 2005). The government of Malaysia
is engaged in a massive programmed of construction of various public works all
over the country that involves acquisition of private land on a large scale. The
government intervention over land development is directly exercised under the
power of land acquisition as stipulated under the Land Acquisition Act (1960), and
provided
This

under

article

Article

13

stipulates

of
that

the

Malaysian

no

person

Constitution
may

be

(1957) 3.
deprived

of property in accordance with law and no law may provide for compulsoryacquisit
ion or for the use of property without adequate compensation. Withreference to the
clause

of

the

land

acquisition

by

the

Federal

Government,4

Article83 set out detailed procedures for land compensation as stipulated by theMa
laysian Constitution (1957). Therefore, using the power contained in the Land
Acquisition Act (1960), the government can acquire land for public purposes with
adequate compensation as determined under Schedule 2 of the Act. Adequate
3 "Land Acquisition." Scribd. N.p., n.d. Web. 03 May 2015
4 http//.www.preservearticles.in
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compensation, therefore, as stated under the provision of Article 13(2) of the

Federal Constitution refers to the amount of compensation which is decided,
considering all principles stated under the First Schedule of the Land Acquisition
Act 1960. Even though the State Authority, under the provision of Land
Acquisition Act 1960, has the power to possess any private land, it does not allow
the authority to violate ones right onto their private properties (Omar & Ismail,
2005).
LAND ACQUISITION ACT 1960 (ACT 486).
Land Acquisition Act 1960 was firstly enacted in 1960 with (Act No 34 of 1960)
and has been revised in 1992 (Act 486 w.e.f 18 th March 1992). Act 486 containing
eight parts with 70 sections. According to Act 486, Land Acquisition Act is an act
Relating to the acquisition of land, the assessment of compensation to be made on
account of such acquisition, and other matters incidental thereto. Under the section
3 (1), land may be acquired by the State Authority which is needed:
(a) For any public purpose;
(b) by any person or corporation for any purpose which in the opinion of the State
Authority is beneficial to the economic development of Malaysia or any part
thereof or to the public generally or any class of the public; or
(c) For the purpose of mining or for residential, agricultural, commercial, industrial
or recreational purposes or any combination of such purposes. Section 3 (3), stated
that any application made under Para. (1) (b) or (c) shall be accompanied by
(a) The project proposal;
(b) The layout and land acquisition plan;
(c) The preliminary Government valuation report of the land to be acquired; and

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(d) such fee and deposit as may be prescribed in the Rules made under this Act:
Section 4 (1) provides that a notification in Form A shall be published in the
Gazette .Under the Section 5 empowers officials from the State Authority to enter
and survey the acquired land but the right exist only when express permission has
been given by the occupier or, falling such consent, after three days written notice
has been given to the occupier of such dwellings premises.
Section 11 stated that, in addition to the public notice as required in subsection 10
(1), Land Administrator are required to serve a copies of Form E upon the occupier
of such land, the register proprietor of such land, any person having a registered
interest in the land and any other person whom he knows or has a reason to believe
to be interest therein.
The enquiry by the Land Administrator is stated in Section 12, where Land
Administrator shall make a full enquiry into the values of lands and shall as soon
as possible thereafter the amount of compensation which is appropriate in
accordance with the principles set out in the First Schedule 5. The Land
Administrator also is required to hear all objections, if any, submitted by any
interested person and may postpone or adjourn the enquiry from time to time,
where there is sufficient cause to do so, the circumstance of which must be
recorded in writing.6

5 "Land Acquisition." Scribd. N.p., n.d. Web. 03 May 2015

6 http://economictimes.indiatimes.com/topic/land-acquisition-bill
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COMPULSORY LAND ACQUISITION:-

According to Gurjit Singh (1994), The Malaysian Constitution provides

in Article13 that no person may be deprived of property save in
accordance with law and no law may provide for compulsory acquisition
or use of property without adequate compensation. Under the Land
Acquisition Act 1960 (Government of Malaysia, 1960), the State
Government could acquire land for a specific public purpose 7 . By virtue
of an amendment in 1973, land could also be acquired for mining,
residential, commercial or industrial purposes. For the government this is
a method of land assembly. Public purpose projects are also a means
through which broad sectorial policies of the NEP and NDP are translated
into physical projects for the benefit of the population.
The provisions of the Act have also been used somewhat unimaginatively to
prevent land speculation by gazette the large areas in which the land is to be
acquired under Section 4 of the Act thereby freezing all land transactions in the
area.8 The maximum period for such a freeze is one year and there are provisions
for renewal through the publication of fresh gazettes. Such antics are problematic
7 http://economictimes.indiatimes.com/topic/land-acquisition-bill
8 "Land Acquisition." Scribd. N.p., n.d. Web. 03 May 2015
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for land owners in an area who are faced with uncertainty as to whether their land
is to be acquired.9

There have been instances where such owners because of the quandary they face
are pressured by unscrupulous land hoarders to sell their land to them. These
unfortunate landowners are usually smallholders who have ironically been the
target group of the NEP and NDP in reducing their poverty levels. Recently, in1991
the Government amended some critical provisions of the Act. Section 3 of the Act
was amended to provide for the compulsory acquisition of land for any purpose
deemed beneficial to the economic development of Malaysia or to the public or
any class of the public. The reason given by the government for this amendment
was that Government could not conform to Article 86 (1) of the Constitution which
gives the right to Government to alienate land to anyone who is qualified as the Act
does not provide for the alienation of compulsory acquired land to third parties.10

Another amendment was the inclusion of a new section 68A which now prevents any land
acquired from being invalidated as a result of a subsequent disposal or a change of use of land.
This amendment was also retrospective. On this amendment the Government stated that it
faced problems in continuing development projects that have been abandoned as there is no
provision in the Act to allow for the development of projects other than that which is stipulated

9 http//.www.lawnotes.in
10 Google." Google. N.p., n.d. Web. 03 May 2015
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as a public purpose project in the notice of acquisition. Hence the usage of the acquired land
could not be changed under the Act. The amendment now overcomes this constraint.11

MEASURE OF COMPENSATION:Article 13 of the Federal Constitution requires that adequate compensation must be paid for
every land acquisition. The Act states that after the Land Administrator has completed the
enquiry pursuant to the provisions of section 12thereof, he must as soon as possible thereafter
assess the amount of compensation which in his opinion is appropriate in accordance with the
principles set out in the first schedule.12
The land acquisition statutes also provide that a dispossessed landowner shall
receive compensation for the loss of the resumed land. According to RowanRobinson and Brand (1995), the purpose of compensation is to compel the owner
to sell the right (in monetary terms) as though the land owner is in the same
position as if his land had not been taken.13

Historically, the courts have declared that the requirement may be satisfied by
expressing adequate compensation in terms of money. The problem then is to find
11 http.//www.scribd.com
12 "Land Acquisition." Scribd. N.p., n.d. Web. 03 May 2015.
13 "PRS | All About the Land Acquisition Debate." PRS | All About the Land
Acquisition Debate. N.p., n.d. Web. 03 May 2015.
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out, how much money is required to meet the constitutional mandate that
adequate compensation be paid? To solve this problem, practitioners rely upon the
concept of market value that is also provided under the laws of compulsory
acquisition.14

Conclusion:-

The main issue of land acquisition is the quantum of compensation that is perceived by the
respondents as inadequate to fulfill adequate compensation notion under the spirit of
Constitution. There is a need to review the heads of compensation structure by incorporating
other countries, practices. Although there is a broad acceptance that market value is the
appropriate basis for compensation for land taken, perhaps there is also a general feeling that
isolation or premium should be paid to compensate the claimant for the compulsory nature of
the acquisition. Most of the values perceived that land acquisition need not necessarily present
the best alternative for government to secure land for development. Other alternatives such as
direct purchases through negotiation and joint venture are the alternatives available for
government to exercise rather solely depending on land acquisition powers. Land acquisition is
a complex process, is sensitive in nature, and needs pragmatic approach to deal with. Wherever
possible, land developments should be carried through the process of normal economic supply
and demand. The problems of compensation are more than just a matter of law and valuation; it
is a matter of justice between society and man. The word compensation would be a mockery if
what was paid was something that did not compensate
14 http.//www.preservearticles.in
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BIBLIOGRAPHY:BOOKS USED:1. LAND ACQUISITION BILL INDIA ANALYSIS JAMES FELTON

2. DETAILED ANALYSIS OF LAND ACQUISITION OXFORDTHESAURUS
VOL.II
3. LAND ACQUISITION BILL AIDA FAZIHA NAZRIS ESSAY
WEBSITES USED:1. WWW.SCRIBD.COM
2. PRESERVEARTICLES.IN
3. LAWNOTES.IN

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