Case Note & Summary
The Supreme Court of India heard an appeal by the Delhi Development Authority against a judgment of the High Court of Delhi. The High Court had allowed a writ petition filed by the original writ petitioner, declaring that land acquisition proceedings initiated under the Land Acquisition Act, 1894 were deemed to have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The acquisition involved land in Khasra No. 759(4-16), with the original writ petitioner having a 1/4th joint share. A notification under Section 4 of the 1894 Act was issued on 27 June 1996, and an award was passed on 22 June 1999. According to the Land Acquisition Collector, actual vacant peaceful possession of the subject land was taken on 31 December 2013 and handed over to the requisition agency through proper possession proceedings. The High Court declared the lapse solely on the ground that compensation had not been paid to the original writ petitioner, without disputing the taking of possession. The Supreme Court examined the legal issue of whether the acquisition proceedings had lapsed under Section 24(2) of the 2013 Act. The appellant argued that the High Court's view was unsustainable in light of the Constitution Bench decision in Indore Development Authority v. Manoharlal and Ors. The respondent's arguments were not detailed in the judgment text. The Court analyzed the precedent, noting that the Constitution Bench had held that deemed lapse under Section 24(2) occurs only where both possession has not been taken and compensation has not been paid; if possession has been taken, non-payment of compensation does not result in lapse. The Court applied this reasoning, finding that since possession was taken on 31 December 2013, the acquisition proceedings had not lapsed despite non-payment of compensation. Consequently, the Supreme Court allowed the appeal, quashed and set aside the High Court's judgment, and held that the acquisition proceedings were not deemed to have lapsed.
Headnote
A) Land Acquisition - Deemed Lapse of Proceedings - Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The Supreme Court considered whether acquisition proceedings had lapsed under Section 24(2) where possession was taken but compensation was not paid - Applying Indore Development Authority precedent, the Court held that deemed lapse under Section 24(2) requires both possession not taken and compensation not paid; if possession has been taken, non-payment of compensation does not cause lapse - The High Court's declaration of lapse was quashed (Paras 1-4).
Issue of Consideration
Whether the acquisition proceedings initiated under the Land Acquisition Act, 1894 with regard to the land in question are deemed to have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
Final Decision
The Supreme Court allowed the appeal, quashed and set aside the impugned judgment and order passed by the High Court, and held that the acquisition proceedings are not deemed to have lapsed under Section 24(2) of the 2013 Act. No costs. Pending application, if any, also stands disposed of.
Law Points
- Interpretation of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition
- Rehabilitation and Resettlement Act
- 2013
- deemed lapse of land acquisition proceedings
- possession taken but compensation not paid
- application of Indore Development Authority precedent





