Supreme Court Allows Appeal in Land Acquisition Case, Quashing High Court's Lapse Declaration. Acquisition Proceedings Not Deemed Lapsed Under Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 as Possession Was Taken, Even Though Compensation Was Not Paid.

  • 4
Judgement Image
Font size:
Print

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).

Subscribe to unlock Headnote Subscribe Now

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

Subscribe to unlock Issue of Consideration Subscribe Now

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
Subscribe to unlock Law Points Subscribe Now

Case Details

2023 LawText (SC) (1) 71

CIVIL APPEAL NO. 342 OF 2023 (@ SLP (C) NO. 11767 OF 2019)

2023-01-20

M.R. Shah

Delhi Development Authority

Shakuntla Devi and Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Appeal against High Court judgment declaring land acquisition proceedings lapsed

Remedy Sought

Appellant sought quashing of High Court judgment and declaration that acquisition proceedings not lapsed

Filing Reason

Appellant aggrieved by High Court allowing writ petition and declaring acquisition lapsed under Section 24(2) of 2013 Act

Previous Decisions

High Court allowed writ petition, declared acquisition proceedings deemed to have lapsed under Section 24(2) of 2013 Act

Issues

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

Ratio Decidendi

Deemed lapse of land acquisition proceedings under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 takes place 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, as per the Constitution Bench decision in Indore Development Authority v. Manoharlal and Ors.

Judgment Excerpts

The word “or” used in Section 24(2) between possession and compensation has to be read as “nor” or as “and”. 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. In other words, in case possession has been taken, compensation has not been paid then there is no lapse. Similarly, if compensation has been paid, possession has not been taken then there is no lapse.

Procedural History

Notification under Section 4 of Land Acquisition Act, 1894 issued on 27.06.1996; Award passed on 22.06.1999; Possession taken on 31.12.2013; High Court allowed writ petition and declared acquisition lapsed under Section 24(2) of 2013 Act; Supreme Court heard appeal and reversed High Court decision.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 31, Section 34
  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(2)
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Appeal in Land Acquisition Case, Quashing High Court's Lapse Declaration. Acquisition Proceedings Not Deemed Lapsed Under Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resett...
Related Judgement
Supreme Court Supreme Court Allows Union of India's Appeal in Service Law Dispute Over Nursing Allowance. Classification of posts based on educational qualifications justifies different pay scales, as Nursing Assistants lack qualifications and experience required ...