Supreme Court Allows Appeal by Govt. of NCT of Delhi in Land Acquisition Lapse Case — Acquisition Deemed Not Lapsed Under Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Possession Taken in 1983, Compensation Not Tendered, but Twin Conditions of Possession and Compensation Must Both Be Unsatisfied for Lapse.

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Case Note & Summary

The Government of NCT of Delhi appealed against the Delhi High Court's judgment dated 01.12.2015 in Writ Petition (C) No.27 of 2015, 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 (Act 2013). The land acquisition process began with a notification under Section 4 of the Land Acquisition Act, 1894 on 10.11.1960, followed by a declaration under Section 6 on 06.01.1969, and an award on 31.01.1983. The appellant and the Land Acquisition Collector claimed that possession of the land was taken on 04.03.1983 and handed over to the Delhi Development Authority (DDA). In 2015, respondent no.1 filed a writ petition challenging the acquisition and seeking a declaration of lapse under Section 24(2) of Act 2013. The High Court, relying on Pune Municipal Corporation v. Harakchand Misirimal Solanki, held that since compensation had not been tendered, the acquisition lapsed. The Supreme Court, however, noted that the Constitution Bench in Indore Development Authority v. Manoharlal had overruled Pune Municipal Corporation and held that for lapse under Section 24(2), both conditions of non-taking of possession and non-payment of compensation must be satisfied. Since possession was taken in 1983, the acquisition did not lapse. The Supreme Court allowed the appeal, quashed the High Court's judgment, and dismissed the writ petition.

Headnote

A) Land Acquisition - Deemed Lapse under Section 24(2) - Twin Conditions - Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The issue was whether acquisition lapses when possession is taken but compensation not paid. The Supreme Court held that for lapse under Section 24(2), both conditions of non-taking of possession and non-payment of compensation must be satisfied. Since possession was taken in 1983, there is no lapse. The decision in Pune Municipal Corporation v. Harakchand Misirimal Solanki, which held otherwise, was overruled by the Constitution Bench in Indore Development Authority v. Manoharlal. (Paras 3-4)

B) Land Acquisition - Overruling of Precedent - Pune Municipal Corporation v. Harakchand Misirimal Solanki - Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The High Court relied on Pune Municipal Corporation to declare lapse. The Supreme Court noted that this decision was overruled by the Constitution Bench in Indore Development Authority v. Manoharlal. Consequently, the impugned judgment was set aside. (Paras 3-4)

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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 has been taken but compensation has not been tendered.

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Final Decision

The Supreme Court allowed the appeal, quashed the High Court's judgment, and dismissed the writ petition. The acquisition was held not to have lapsed under Section 24(2) of the 2013 Act.

Law Points

  • Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013
  • twin conditions of possession and compensation
  • word 'or' read as 'nor' or 'and'
  • Indore Development Authority v. Manoharlal overrules Pune Municipal Corporation v. Harakchand Misirimal Solanki
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Case Details

2022 LawText (SC) (12) 5

Civil Appeal No. 9229 of 2022 (@Special Leave Petition (Civil) No. 23601 of 2022) (@ Diary No.3575 of 2022)

2022-12-15

M.R. Shah, S. Ravindra Bhat

Govt. of NCT of Delhi

Mohd. Maqbool & Ors.

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Nature of Litigation

Civil appeal against High Court judgment declaring acquisition lapsed under Section 24(2) of the 2013 Act.

Remedy Sought

Appellant sought quashing of High Court's declaration of lapse and dismissal of writ petition.

Filing Reason

High Court declared acquisition lapsed despite possession having been taken, relying on overruled precedent.

Previous Decisions

High Court of Delhi allowed writ petition on 01.12.2015, declaring 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 2013 Act when possession has been taken but compensation has not been tendered.

Submissions/Arguments

Appellant argued that possession was taken on 04.03.1983 and handed over to DDA, so twin conditions for lapse are not satisfied. Respondent argued that compensation was not tendered, so acquisition lapsed under Section 24(2) as per Pune Municipal Corporation.

Ratio Decidendi

For lapse under Section 24(2) of the 2013 Act, both conditions of non-taking of possession and non-payment of compensation must be satisfied. Since possession was taken, there is no lapse. The word 'or' in Section 24(2) is to be read as 'nor' or 'and'.

Judgment Excerpts

In view of the above and according to the possession certificate and the specific case on behalf of the appellant and the Land Acquisition Collector that the possession of the land in question was taken over on 04.03.1983 and handed over to DDA, the impugned judgment and order passed by the High Court is unsustainable and the same deserves to be quashed and set aside. As per the recent decision of the Constitution Bench of this Court in the case of Indore Development Authority versus Manoharlal and others reported in (2020) 8 SCC 129 for the purpose of lapse under Section 24(2) of the Act, 2013 twin conditions of not taking over possession and not tendering/paying the compensation are required to be satisfied.

Procedural History

Notification under Section 4 of the Land Acquisition Act, 1894 issued on 10.11.1960; declaration under Section 6 on 06.01.1969; award on 31.01.1983; possession taken on 04.03.1983 and handed over to DDA. In 2015, respondent filed Writ Petition (C) No.27 of 2015 before Delhi High Court challenging acquisition and seeking declaration of lapse under Section 24(2) of the 2013 Act. High Court allowed the writ petition on 01.12.2015. Appellant filed SLP before Supreme Court, which was converted into Civil Appeal No. 9229 of 2022. Supreme Court allowed the appeal on 15.12.2022.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(2)
  • Land Acquisition Act, 1894: Section 4, Section 6, Section 16, Section 31, Section 34
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