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Acquisition- Meaning

January 18, 2022


Dr. Y.Srinivasa Rao,

M.A(English)., B.Ed., LL.M., Ph.D in Law of Torts.

Meaning – Acquisition:— Acquisition, does not automatically amount to transfer of physical possession to State unless there is an indication to the contrary with express words of utmost clarity, State of U.P. v. Hari Ram(2013) 4 SCC 280: (2013) 2 SCC (Civ) 583. 

The act of procuring property.  Acquisition means and implies the acquiring of the entire title of the expropriated owner, whatever the nature or extent of that title might be. The entire bundle of rights which were vested in the original holder would pass on acquisition to the acquirer leaving nothing in the former. In taking possession on the other hand, title to the property admittedly remains in the original holder, though he is excluded from possession or enjoyment of the property. Article 31(2) of the Constitution of India itself makes a clear distinction between acquisition of property and taking possession of it for a public purpose, though it places both of them on the same footing in the sense that a legislation authorising either of these acts must make provision for payment of compensation to the displaced or expropriated holder of the property. In the context in which the word “acquisition” appears in Art. 31(2), it can only mean and refer to acquisition of the entire interest of the previous holder by transfer of title, Charanjit Lal Chowdhury v. Union of India, AIR 1951 SC 41: 1950 SCR 869. 

The word “Acquisition” means, directly or indirectly, acquiring or agreeing to acquire― shares, voting rights or assets of any enterprise; or control over management or control over assets of any enterprise, [Section 2(a), Competitions Act, 2002 (India)]. 

It also means taking not by voluntary agreement but by authority of an Act of Parliament and by virtue of the compulsory powers thereby conferred. In case of acquisition the property is taken by the State permanently and the title to the property vests in the State, R.L. Jain v. DDA(2004) 4 SCC 79

Acquisition is the act by which a person acquires property in a thing. “Acquire” is to become the owner of the property. One can, therefore, acquire a property either by voluntary or involuntary transfer, Devi Das Gopal Krishnan v. State of Punjab, AIR 1967 SC 1895: (1967) 3 SCR 557: (1969) 1 ITJ 224: (1967) 20 STC 430. 7. Includes hiring, borrowing or accepting as a gift, [Section 2(a), Arms Act, 1959.

Acquisition and Requisition — Acquisition and requisition, are totally distinct and independent concepts. Acquisition involves permanency, finality and transfer of title, whereas requisition by its very nature is a taking over of control over property for a temporary duration and does not involve the transfer of ownership rights, Kewal Chand Mimani v. S.K. Sen(2001) 6 SCC 512.



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