Supreme Court Allows Government Appeal in Land Acquisition Case, Quashing High Court's Lapse Declaration. Acquisition Did Not Lapse Under Section 24(2) of 2013 Act as Possession Was Taken, Overruling Precedent Based on Non-Payment Alone.

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Case Note & Summary

The appeal arose from a judgment and order dated 30.05.2016 by the High Court of Delhi, which allowed a writ petition and declared that land acquisition proceedings had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Government of NCT of Delhi, aggrieved by this decision, filed the appeal, which faced a delay vehemently opposed by the respondent. The core facts involved land acquisition where possession was taken on 12.03.1981, but compensation was not paid. The High Court, relying on the precedent in Pune Municipal Corporation v. Harakchand Misirimal Solanki, held that non-payment of compensation led to a deemed lapse under Section 24(2). The legal issue centered on the correct interpretation of Section 24(2), specifically whether lapse requires both non-possession and non-payment of compensation. The appellant argued that the High Court erred by following Pune Municipal Corporation, which had been overruled by the Constitution Bench in Indore Development Authority v. Manoharlal. The respondent opposed the delay and defended the High Court's ruling. The Supreme Court, in its analysis, condoned the delay, noting similar condonations in other cases and the overruling of Pune Municipal Corporation. It examined the law laid down in Indore Development Authority, which clarified that Section 24(2) requires twin conditions: non-possession and non-payment for lapse to occur, with 'or' interpreted as 'nor' or 'and'. Since possession was taken in 1981, the Court found that one condition was not met, thus no lapse under Section 24(2). The decision quashed the High Court's order, dismissed the writ petition, and allowed the appeal, with no costs.

Headnote

A) Land Acquisition - Deemed Lapse of Proceedings - Section 24(2) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The High Court declared land acquisition lapsed under Section 24(2) based on non-payment of compensation, relying on Pune Municipal Corporation v. Harakchand Misirimal Solanki, (2014) 3 SCC 183. The Supreme Court held that for lapse under Section 24(2), twin conditions of non-possession and non-payment must be satisfied; since possession was taken on 12.03.1981, acquisition did not lapse. The Court overruled Pune Municipal Corporation per Indore Development Authority v. Manoharlal, (2020) 8 SCC 129, quashing the High Court order. (Paras 3-5)

B) Civil Procedure - Condonation of Delay - Supreme Court condoned delay in appeal filing, considering similar orders in other cases and the fact that the High Court relied on Pune Municipal Corporation, which was overruled by the Constitution Bench in Indore Development Authority. The Court allowed the appeal on merits despite opposition. (Para 2)

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Issue of Consideration

Whether the land acquisition proceedings in respect of 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, given that possession was taken but compensation was not paid

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Final Decision

Appeal allowed, impugned judgment and order of High Court quashed and set aside, writ petition dismissed, no costs

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
  • condonation of delay in appeal
  • overruling of precedent
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Case Details

2023 LawText (SC) (2) 69

CIVIL APPEAL NO. 352 OF 2023 (@ SLP (C) NO. 1488 OF 2023) (@ DIARY NO. 25267 OF 2022)

2023-02-10

M.R. Shah

Shri Neeraj Kishan Kaul

Government of NCT of Delhi

Sushil Kumar Gupta & Ors.

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Nature of Litigation

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

Remedy Sought

Government of NCT of Delhi sought to quash the High Court order and uphold the acquisition

Filing Reason

Aggrieved by High Court's declaration of lapse based on non-payment of compensation

Previous Decisions

High Court allowed writ petition and declared acquisition lapsed under Section 24(2) of the 2013 Act, relying on Pune Municipal Corporation v. Harakchand Misirimal Solanki

Issues

Whether the land acquisition proceedings are deemed to have lapsed under Section 24(2) of the 2013 Act given possession was taken but compensation not paid

Submissions/Arguments

Appellant argued delay should be condoned and High Court erred by following overruled precedent Respondent opposed delay and defended High Court's ruling based on non-payment of compensation

Ratio Decidendi

For deemed lapse under Section 24(2) of the 2013 Act, twin conditions of non-possession and non-payment must be satisfied; if possession taken, acquisition does not lapse even if compensation not paid

Judgment Excerpts

the High Court has allowed the said writ petition and has declared that the land acquisition proceedings in respect of the land 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 the decision rendered in Pune Municipal Corpn. is hereby overruled the word 'or' used in Section 24(2) between possession and compensation has to be read as 'nor' or as 'and' once the possession of the land in question was taken over on 12.03.1981 then applying the law laid down by this Court in the case of Indore Development Authority (supra) the acquisition of the land in question is not deemed to have lapsed under Section 24(2) of the Act, 2013

Procedural History

High Court passed judgment and order dated 30.05.2016 in Writ Petition (C) No. 1399 of 2014, declaring acquisition lapsed; appeal filed with delay by Government of NCT of Delhi; Supreme Court condoned delay and allowed appeal

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: 24(2)
  • Land Acquisition Act, 1894: 4, 16, 31, 34
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Supreme Court Supreme Court Allows Government Appeal in Land Acquisition Case, Quashing High Court's Lapse Declaration. Acquisition Did Not Lapse Under Section 24(2) of 2013 Act as Possession Was Taken, Overruling Precedent Based on Non-Payment Alone.
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