Case Note & Summary
The dispute arose from a land acquisition case where the Land Acquisition Collector appealed against a High Court judgment that declared the acquisition lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The High Court had allowed a writ petition, relying on the precedent set in Pune Municipal Corporation v. Harakchand Misirimal Solanki, which held that acquisition lapses if compensation is not paid. The appellant contended that physical possession of the land was taken and handed over to the beneficiary department on 14.07.1987. The Supreme Court considered the legal issue of whether the acquisition lapsed due to non-payment of compensation. The appellant argued that the High Court's reliance on Pune Municipal Corporation was erroneous as it had been overruled by the Constitution Bench in Indore Development Authority v. Manoharlal. The Court analyzed the provisions of Section 24(2) and the overruling of Pune Municipal Corporation, noting that the Constitution Bench's decision clarified the law on lapse of acquisition. The Court held that since physical possession was taken, the acquisition did not lapse, and the High Court's judgment was set aside. The appeal was allowed, and the acquisition was upheld.
Headnote
A) Land Acquisition - Lapse of Acquisition - Section 24(2) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The High Court declared acquisition lapsed based on non-payment of compensation, relying on Pune Municipal Corporation v. Harakchand Misirimal Solanki - Supreme Court reversed, noting physical possession was taken on 14.07.1987 and Pune Municipal Corporation was overruled by Indore Development Authority v. Manoharlal - Held that acquisition did not lapse as per Constitution Bench ruling (Paras 1-2).
Issue of Consideration
Whether the acquisition of land 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, when physical possession was taken but compensation was not paid.
Final Decision
Supreme Court allowed the appeal, set aside the High Court's judgment, and held that the acquisition did not lapse.
Law Points
- Interpretation of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition
- Rehabilitation and Resettlement Act
- 2013
- Overruling of Pune Municipal Corporation v. Harakchand Misirimal Solanki
- Application of Indore Development Authority v. Manoharlal





