Supreme Court Allows Land Acquisition Collector's Appeal Against Lapse Declaration in Land Acquisition Case. Acquisition Upheld as Physical Possession Was Taken, Overruling Pune Municipal Corporation Based on Indore Development Authority v. Manoharlal Under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

  • 5
Judgement Image
Font size:
Print

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).

Subscribe to unlock Headnote Subscribe Now

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.

Subscribe to unlock Issue of Consideration Subscribe Now

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
Subscribe to unlock Law Points Subscribe Now

Case Details

2023 LawText (SC) (4) 13

CIVIL APPEAL NO. 2926 OF 2023 (@ SLP (C) NO. 8041 OF 2023) (@ DIARY NO. 3568 OF 2022)

2023-04-19

M.R. Shah

Land Acquisition Collector (South), New Delhi

Hari Chand and Anr.

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

Nature of Litigation

Appeal against High Court judgment declaring land acquisition lapsed

Remedy Sought

Appellant seeks reversal of High Court's declaration of lapse

Filing Reason

Dissatisfaction with High Court's judgment based on overruled precedent

Previous Decisions

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

Issues

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?

Submissions/Arguments

Appellant argued physical possession was taken on 14.07.1987 and High Court relied on overruled precedent Respondent arguments not mentioned

Ratio Decidendi

Acquisition does not lapse under Section 24(2) of the 2013 Act if physical possession has been taken, as per the overruling of Pune Municipal Corporation by Indore Development Authority v. Manoharlal.

Judgment Excerpts

the High Court has allowed the said writ petition and has declared that the acquisition with respect to the land in question is deemed to have lapsed on the ground that the compensation with respect to the land in question had not been paid the decision of this Court in the case of Pune Municipal Corporation and Anr. (supra), which has been relied upon by the High Court while passing the impugned judgment and order, has been specifically overruled by the Constitution Bench of this Court in the case of Indore Development Authority Vs. Manoharlal and Ors., (2020) 8 SCC 129

Procedural History

High Court allowed Writ Petition (C) No. 3435 of 2016, declaring acquisition lapsed; Supreme Court appeal filed by Land Acquisition Collector.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: 24(2)
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Land Acquisition Collector's Appeal Against Lapse Declaration in Land Acquisition Case. Acquisition Upheld as Physical Possession Was Taken, Overruling Pune Municipal Corporation Based on Indore Development Authority v. Manoharla...
Related Judgement
Supreme Court Supreme Court Allows Appeals and Restores Successful Bidder's Selection in Minor Minerals Auction Dispute. The Court Held That the High Court Erred in Setting Aside the Tender Award as the Successful Bidder Substantially Complied with Tender Conditio...