Supreme Court Allows Government Appeal in Land Acquisition Case, Quashing High Court's Lapse Declaration. Acquisition Proceedings Do Not Lapse Under Section 24(2) of the 2013 Act as Possession Was Taken in 1981, Fulfilling One of the Twin Conditions Required for Deemed Lapse.

  • 4
Judgement Image
Font size:
Print

Case Note & Summary

The dispute arose from a land acquisition initiated under the Land Acquisition Act, 1894, with a notification issued in 1965 and an award declared in 1981. The Government of NCT of Delhi and Delhi Development Authority, as appellants, challenged a High Court order that declared the acquisition proceedings lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The High Court based its decision on uncertainty regarding whether full compensation was tendered, as records were torn. However, possession of the land had been taken and handed over to the beneficiary department in 1981. The core legal issue was whether the acquisition had lapsed under Section 24(2) of the 2013 Act, particularly in light of the Constitution Bench decision in Indore Development Authority v. Manoharlal. The appellants argued that the High Court erred by not considering that possession was taken, and that the grievance on compensation was raised belatedly after 24 years. The respondents, original writ petitioners, sought declaration of lapse due to non-payment of compensation. The Supreme Court analyzed Section 24(2), referencing the Indore Development Authority case, which held that for a deemed lapse, twin conditions of non-possession and non-payment must be satisfied, with 'or' interpreted as 'nor' or 'and'. The court reasoned that since possession was taken in 1981, one condition was unmet, thus no lapse occurred. It also emphasized that Section 24(2) does not revive stale claims or reopen concluded proceedings, and the delayed grievance undermined the respondents' case. Consequently, the court quashed the High Court's order, allowed the appeal, and set aside the declaration of lapse, with no costs awarded.

Headnote

A) Land Acquisition - Deemed Lapse Under Section 24(2) - Twin Conditions of Non-Possession and Non-Payment - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - High Court declared acquisition lapsed due to uncertainty in compensation payment, but possession was taken in 1981 - Supreme Court held that for lapse under Section 24(2), both conditions of not taking possession and not tendering compensation must be satisfied; since possession was taken, no lapse occurred - Applied Constitution Bench decision in Indore Development Authority v. Manoharlal (Paras 2.3-2.5).

B) Land Acquisition - Interpretation of Section 24(2) - Word 'or' Read as 'Nor' or 'And' - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - Dispute over whether non-payment alone triggers lapse - Court cited Indore Development Authority, holding that 'or' in Section 24(2) must be read as 'nor' or 'and', meaning lapse requires both non-possession and non-payment; if one condition is unmet, no lapse - This interpretation prevents revival of stale claims (Paras 2.3-2.4).

C) Land Acquisition - Stale Claims and Concluded Proceedings - Section 24(2) Does Not Reopen Proceedings - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - Grievance on compensation raised 24 years after award - Court noted that Section 24(2) applies only to pending proceedings as of 1-1-2014 and does not revive time-barred claims or reopen concluded acquisitions - Held that delayed claim without earlier grievance undermines lapse argument (Paras 2.5-2.5).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the acquisition proceedings with respect 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

Impugned judgment and order passed by the High Court is quashed and set aside; Civil Appeal preferred by Land and Building Department, Govt. of NCT of Delhi is allowed; no costs; Civil Appeal by Delhi Development Authority disposed of in terms of the order

Law Points

  • Deemed lapse under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013 requires twin conditions of non-possession and non-payment of compensation
  • interpretation of 'or' as 'nor' or 'and'
  • no lapse if possession taken or compensation tendered
  • Section 24(2) does not revive stale claims or reopen concluded proceedings
Subscribe to unlock Law Points Subscribe Now

Case Details

2023 LawText (SC) (1) 75

CIVIL APPEAL NO. OF 2023 (@ SLP (C) NO. OF 2023) (@ DIARY NO. 29758 OF 2022) WITH CIVIL APPEAL NO. OF 2023 (@ SLP (C) NO. OF 2023) (@ DIARY NO. 17938 OF 2022)

2023-01-20

M.R. Shah

Government of NCT of Delhi, Delhi Development Authority

Om Prakash (Dead) Through LRs. AND ORS.

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

Nature of Litigation

Appeal against High Court order declaring land acquisition proceedings lapsed under Section 24(2) of the 2013 Act

Remedy Sought

Appellants seek quashing of High Court order and declaration that acquisition has not lapsed

Filing Reason

Dissatisfaction with High Court's decision allowing writ petition and declaring acquisition lapsed

Previous Decisions

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

Issues

Whether the acquisition proceedings with respect 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

Submissions/Arguments

High Court erred in not considering possession taken in 1981 Grievance on compensation raised belatedly after 24 years Application of Indore Development Authority case on twin conditions for lapse

Ratio Decidendi

For deemed lapse under Section 24(2) of the 2013 Act, twin conditions of not taking possession and not tendering compensation must be satisfied; if possession is taken, no lapse occurs; Section 24(2) does not revive stale claims or reopen concluded proceedings

Judgment Excerpts

the High Court has allowed the said writ petition and has declared that the acquisition proceedings with respect to the land(s) in question is deemed to have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 possession of the land in question was taken over and handed over to the beneficiary department on 23.09.1981 for attracting Section 24(2) of the Act, 2013, twin conditions of not taking possession and not tendering compensation have to be satisfied

Procedural History

Notification under Section 4 of Land Acquisition Act, 1894 issued on 23.01.1965; award declared on 09.01.1981; possession taken on 23.09.1981; writ petition filed in 2014; High Court order dated 18.07.2017 allowed writ petition; present 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, 31(1), 34
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Government Appeal in Land Acquisition Case, Quashing High Court's Lapse Declaration. Acquisition Proceedings Do Not Lapse Under Section 24(2) of the 2013 Act as Possession Was Taken in 1981, Fulfilling One of the Twin Conditions ...
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...