The court has restrained the government from taking possession of the acquired land unless such a declaration is made.
A division bench of the court comprising justices Pradeep Kant and Ritu Raj Awasthi has directed both the governments to file a counter affidavit within three weeks.
The state government had acquired 36 hectare land on May 9 this year for offices and residential complexes in the newly created district. Farmers have challenged the land acquisition seeking direction for quashing a notification issued by the state government.