Supreme Court Allows Government Appeal Against Declaration of Lapsed Land Acquisition Under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Possession Taken Prior to Act's Commencement Precludes Deemed Lapse Despite Non-Payment of Compensation.

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Case Note & Summary

The Government of NCT of Delhi appealed against the judgment of the Delhi High Court which declared that the acquisition of land in question had 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 the writ petition of the original writ petitioner (respondent No. 1) on the ground that neither compensation was paid nor possession was taken. The appellant contended that possession of the land was taken on 31.12.2013, before the Act came into force on 01.01.2014, and relied on the Supreme Court's decision in Indore Development Authority v. Manoharlal, which held that if possession is taken prior to the Act, there is no deemed lapse under Section 24(2). The respondent argued that only paper possession was taken and actual physical possession remained with them. The Supreme Court noted that the High Court had not disputed that possession was taken on 31.12.2013, and that taking possession by drawing a punchnama is a legal mode of taking possession as per Indore Development Authority. The Court held that since possession was taken before the Act came into force, the acquisition does not lapse under Section 24(2) merely because compensation was not paid. The High Court's reasoning was contrary to the law laid down in Indore Development Authority. The Supreme Court allowed the appeal, set aside the High Court's order, and dismissed the writ petition.

Headnote

A) Land Acquisition - Deemed Lapse - Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Possession taken prior to commencement of Act - Where possession of land was taken on 31.12.2013, i.e., before the Act came into force on 01.01.2014, and possession was taken by drawing a punchnama (a legal mode of taking possession as per Indore Development Authority v. Manoharlal), the acquisition does not lapse under Section 24(2) merely because compensation was not paid. The High Court erred in declaring lapse solely on ground of non-payment of compensation, ignoring that possession was already taken. (Paras 3-3.1)

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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 possession of the land was taken prior to the commencement of the Act but compensation was not paid.

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Final Decision

Appeal allowed. Impugned judgment and order of the High Court is set aside. The writ petition filed by the original writ petitioner stands dismissed.

Law Points

  • Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013
  • deemed lapse of acquisition
  • possession taken by drawing punchnama
  • Indore Development Authority v. Manoharlal
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Case Details

2023 LawText (SC) (4) 140

CIVIL APPEAL NO. 3151 OF 2023 (@ SLP (C) NO. 8733 OF 2023) (@ DIARY NO. 42715 OF 2022)

2023-04-28

M.R. Shah, J.

Government of NCT of Delhi

Dinesh Kumar & Anr.

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Nature of Litigation

Appeal against High Court order declaring land acquisition lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Remedy Sought

Appellant sought setting aside of High Court order and dismissal of writ petition.

Filing Reason

High Court declared acquisition lapsed on ground that compensation was not paid and possession was not taken.

Previous Decisions

High Court of Delhi allowed writ petition declaring acquisition lapsed under Section 24(2) of the Act, 2013.

Issues

Whether possession taken on 31.12.2013 by drawing punchnama constitutes valid possession under Section 24(2) of the Act, 2013? Whether non-payment of compensation alone can lead to deemed lapse of acquisition when possession was taken prior to commencement of the Act?

Submissions/Arguments

Appellant: Possession was taken on 31.12.2013 before Act came into force; as per Indore Development Authority, there is no deemed lapse under Section 24(2). Respondent: Only paper possession was taken; actual physical possession remains with petitioner; compensation not paid; hence acquisition lapsed.

Ratio Decidendi

Where possession of land is taken prior to the commencement of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, by drawing a punchnama (a legal mode of taking possession), the acquisition does not lapse under Section 24(2) of the Act merely because compensation has not been paid. The decision in Indore Development Authority v. Manoharlal governs such cases.

Judgment Excerpts

the possession of the land in question is taken over by drawing the punchnama which is held to be legal mode of taking the possession as per the decision of this Court in the case of Indore Development Authority (supra). the date on which the Act, 2013 came into force the possession was already taken over.

Procedural History

The original writ petitioner filed Writ Petition (C) No. 4954 of 2016 before the High Court of Delhi at New Delhi, which was allowed declaring the acquisition lapsed under Section 24(2) of the Act, 2013. Aggrieved, the Government of NCT of Delhi appealed to the Supreme Court.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: 24(2)
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Supreme Court Supreme Court Allows Government Appeal Against Declaration of Lapsed Land Acquisition Under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Possession Taken Prior to Act...
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