Supreme Court Allows Appeal in Land Acquisition Case Due to Lack of Locus Standi and Erroneous Lapse Declaration. Subsequent Purchaser Cannot Challenge Acquisition Under Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 as Possession Was Taken, Precluding Lapse.

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Case Note & Summary

The dispute arose from a land acquisition initiated under the Land Acquisition Act, 1894, with a notification dated 17.06.2005 and declaration under Section 6 on 31.05.2006, covering land in Village Mundaka. The award was declared on 31.05.2007. The respondent, a subsequent purchaser, acquired 275 square yards of the land via documents dated 11.05.2010, after the acquisition proceedings. The respondent filed a writ petition before the High Court of Delhi, seeking a declaration that the acquisition had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, on grounds of non-payment of compensation. The appellant, Delhi Development Authority, contested this, asserting that possession was taken on 15.12.2007 and that the respondent lacked locus standi as a subsequent purchaser. The High Court allowed the writ petition, declaring the acquisition lapsed. The core legal issues were whether the respondent had locus standi to challenge the acquisition and whether the acquisition had lapsed under Section 24(2) of the 2013 Act. The appellant argued that subsequent purchasers cannot challenge acquisition, citing precedents like Shiv Kumar & Anr. vs. Union of India & Ors., and that possession had been taken, precluding lapse under the Constitution Bench decision in Indore Development Authority vs. Manoharlal and others. The respondent's arguments were not detailed in the text. The Supreme Court analyzed the law, holding that subsequent purchasers lack locus standi to challenge acquisition or claim lapsing, as established in prior cases. It further applied the interpretation from Indore Development Authority, which clarified that under Section 24(2), lapse occurs only if neither possession is taken nor compensation paid for five years or more before the 2013 Act. Since possession was taken on 15.12.2007, the court found no lapse. The court concluded that the High Court erred both on locus standi and merits, quashing the impugned order and dismissing the original writ petition, thereby allowing the appeal.

Headnote

A) Land Acquisition Law - Locus Standi - Subsequent Purchaser - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - A subsequent purchaser who acquired rights in land after acquisition proceedings and award declaration lacks locus standi to challenge acquisition or claim lapsing under Section 24(2) - Held that the High Court erred in entertaining the writ petition by such purchaser, making the impugned order unsustainable (Paras 2.3-2.4).

B) Land Acquisition Law - Deemed Lapse - Section 24(2) Interpretation - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Under Section 24(2), acquisition proceedings lapse only if both possession has not been taken and compensation has not been paid for five years or more prior to the 2013 Act - Applying Indore Development Authority, since possession was taken on 15.12.2007, there is no lapse even if compensation was unpaid - Held that the High Court's declaration of lapse was unsustainable on merits (Paras 2.5-2.7).

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Issue of Consideration

Whether the High Court erred in entertaining a writ petition by a subsequent purchaser to declare land acquisition lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and whether the acquisition had indeed lapsed

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Final Decision

Appeal allowed; impugned judgment and order of High Court quashed and set aside; original writ petition filed by respondent stands dismissed; no costs

Law Points

  • Subsequent purchaser lacks locus standi to challenge land acquisition or claim lapsing under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013
  • Land acquisition proceedings do not lapse under Section 24(2) if possession has been taken even if compensation is not paid
  • as per Constitution Bench interpretation
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Case Details

2023 LawText (SC) (1) 41

CIVIL APPEAL NO.9287 of 2022 (@ SLP (C) No.23798 of 2022) (@ Diary No.21296 of 2022)

2023-01-16

M.R. Shah

Delhi Development Authority

Beena Gupta (D) Through LRS. & Ors.

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Nature of Litigation

Appeal against High Court order declaring land acquisition lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

Remedy Sought

Appellant seeks to quash High Court order and uphold acquisition; respondent sought declaration of lapse

Filing Reason

Appellant aggrieved by High Court allowing writ petition of respondent declaring acquisition lapsed

Previous Decisions

High Court allowed writ petition declaring acquisition lapsed under Section 24(2) of the 2013 Act

Issues

Whether the respondent, as a subsequent purchaser, has locus standi to challenge the land acquisition or claim lapsing under Section 24(2) of the 2013 Act Whether the land acquisition had lapsed under Section 24(2) of the 2013 Act based on non-payment of compensation and possession taken

Submissions/Arguments

Appellant argued that subsequent purchaser lacks locus standi to challenge acquisition, citing precedents, and that possession was taken on 15.12.2007, so acquisition did not lapse under Section 24(2) Respondent's arguments not detailed in text

Ratio Decidendi

Subsequent purchasers lack locus standi to challenge land acquisition or claim lapsing under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; acquisition does not lapse under Section 24(2) if possession has been taken, even if compensation is not paid, as per Constitution Bench interpretation in Indore Development Authority case

Judgment Excerpts

the subsequent purchaser had no locus to challenge the acquisition and/or lapsing of the acquisition under the Act, 2013 The deemed lapse of land acquisition proceedings under Section 24(2) of the 2013 Act takes place where due to inaction of authorities for five years or more prior to commencement of the said Act, the possession of land has not been taken nor compensation has been paid

Procedural History

Land acquisition initiated with notification dated 17.06.2005 under Section 4 of Land Acquisition Act, 1894; declaration under Section 6 on 31.05.2006; award declared on 31.05.2007; possession taken on 15.12.2007; respondent purchased land on 11.05.2010; respondent filed writ petition before High Court; High Court allowed writ petition declaring acquisition lapsed on 01.11.2018; appellant filed appeal to Supreme Court

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: 24(2)
  • Land Acquisition Act, 1894: 4, 6, 16, 31, 34
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