Supreme Court Allows Appeals in Land Acquisition Case, Reversing High Court's Lapse Declaration. Subsequent Purchaser Lacks Locus Standi to Challenge Acquisition Under Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Following Binding Three Judge Bench Precedent.

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Case Note & Summary

The Supreme Court heard appeals filed by the Delhi Development Authority and Government of NCT of Delhi against a High Court judgment that declared land acquisition had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The dispute centered on whether the original writ petitioner, who was a subsequent purchaser of the land, had standing to challenge the acquisition. The land acquisition process began with a Section 4 notification under the Land Acquisition Act, 1894 on November 25, 1980, and an award was declared on June 5, 1987. The original writ petitioner claimed rights through an Assignment Deed of 2015 and filed a writ petition in 2015, which the High Court allowed in 2018, declaring the acquisition had lapsed. The appellants argued that as a subsequent purchaser who acquired the property after the 2013 Act came into force, the respondent lacked locus standi to challenge the acquisition, citing precedents including Delhi Administration Thr. Secretary, Land and Building Department and Ors. Vs. Pawan Kumar and Ors. and Delhi Development Authority Vs. Godfrey Phillips (I) Ltd. & Ors. The respondent's counsel acknowledged the petitioner was a subsequent purchaser but suggested the precedent in Shiv Kumar & Anr. Vs. Union of India & Ors. required reconsideration. The Supreme Court analyzed the issue, noting it was not res integra due to the Three Judge Bench decision in Shiv Kumar & Anr., which had been followed in subsequent cases and overruled the contrary view in Government (NCT of Delhi) Vs. Manav Dharam Trust and Anr. The Court held that a subsequent purchaser has no locus standi to challenge acquisition proceedings or claim lapsing under Section 24(2) of the 2013 Act. Consequently, the Court found the High Court committed a serious error in entertaining the writ petition and declaring the acquisition lapsed. The Supreme Court allowed the appeals, quashed and set aside the High Court's judgment, and dismissed the original writ petition, with no order as to costs.

Headnote

A) Land Acquisition Law - Locus Standi - Subsequent Purchaser - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - Original writ petitioner was a subsequent purchaser who acquired property in 2018 after the 2013 Act came into force - Supreme Court held that a subsequent purchaser has no locus standi to challenge acquisition proceedings or claim lapsing under Section 24(2) of the 2013 Act, following the Three Judge Bench decision in Shiv Kumar & Anr. Vs. Union of India & Ors. (Paras 3, 6-6.2)

B) Land Acquisition Law - Precedent - Binding Authority - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Three Judge Bench decision in Shiv Kumar & Anr. Vs. Union of India & Ors. established that subsequent purchasers cannot challenge acquisition - This decision was followed in subsequent cases and overruled the contrary view in Government (NCT of Delhi) Vs. Manav Dharam Trust and Anr. - Supreme Court applied this binding precedent to hold that the High Court erred in entertaining the writ petition filed by a subsequent purchaser (Paras 6-6.2)

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Issue of Consideration

Whether the original writ petitioner being a subsequent purchaser had locus to challenge the acquisition and/or lapsing of the acquisition under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

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Final Decision

Both appeals allowed, impugned judgment and order passed by High Court quashed and set aside, original Writ Petition No. 11230 of 2015 filed before High Court stands dismissed, no order as to costs

Law Points

  • Subsequent purchaser lacks locus standi to challenge land acquisition proceedings or claim lapsing under Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013
  • Three Judge Bench decision in Shiv Kumar & Anr. Vs. Union of India & Ors. is binding precedent
  • contrary view in Government (NCT of Delhi) Vs. Manav Dharam Trust and Anr. is not good law
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Case Details

2023 LawText (SC) (1) 45

CIVIL APPEAL NO. 277 OF 2023 (@ SLP (C) No. 31307 of 2018) WITH CIVIL APPEAL NO. 278 OF 2023 (@ SLP (C) No. 1011 of 2023) (@ Diary No. 29472 of 2021) 

2023-01-16

M.R. Shah

Shri Gopal Sankaranarayanan

Delhi Development Authority, Government of NCT of Delhi

Manpreet Singh & Ors.

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Nature of Litigation

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

Remedy Sought

Appellants sought quashing of High Court judgment that allowed writ petition and declared acquisition lapsed

Filing Reason

Appellants aggrieved by High Court's declaration that acquisition deemed to have lapsed under Section 24(2) of 2013 Act

Previous Decisions

High Court allowed writ petition filed by respondent No. 1 and held acquisition with respect to land in question deemed to have lapsed by virtue of Section 24(2) of 2013 Act

Issues

Whether the original writ petitioner being a subsequent purchaser had locus to challenge the acquisition and/or lapsing of the acquisition under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

Submissions/Arguments

Appellants submitted that respondent No. 1 is subsequent purchaser with no locus to challenge acquisition/lapsing under 2013 Act Respondent's counsel submitted that decision in Shiv Kumar & Anr. Vs. Union of India & Ors. requires re-consideration but did not dispute that original writ petitioner is subsequent purchaser

Ratio Decidendi

Subsequent purchaser has no locus standi to challenge acquisition proceedings or claim lapsing under Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, following Three Judge Bench decision in Shiv Kumar & Anr. Vs. Union of India & Ors.

Judgment Excerpts

the High Court has allowed the said writ petition and has held that the acquisition with respect to the land in question is deemed to have lapsed by virtue of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 being a subsequent purchaser, he had no locus to challenge the acquisition / lapsing of the acquisition proceedings under the Act, 2013 the High Court has committed a serious error in entertaining the writ petition at the instance of the respondent No. 1 herein – original writ petitioner and has materially erred in declaring that the acquisition with respect to the land in question is deemed to have lapsed under Section 24(2) of the Act, 2013

Procedural History

Notification under Section 4 of Land Acquisition Act, 1894 issued on 25.11.1980, award declared on 05.06.1987, original writ petition filed in 2015 (Writ Petition (C) No. 11230 of 2015), High Court judgment dated 30.01.2018 allowed writ petition and declared acquisition lapsed, appeals preferred 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
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