Supreme Court Allows Lucknow Development Authority's Appeal in Land Acquisition Lapse Case — Possession Taken Prior to 2013 Act Precludes Deemed Lapse Under Section 24(2). Twin Conditions of Non-Possession and Non-Payment Must Be Satisfied for Lapse; Possession Taken in 2003 Vests Land in State.

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Case Note & Summary

The case involves an appeal by the Lucknow Development Authority against the judgment of the Allahabad High Court (Lucknow Bench) dated 03.07.2017, which declared that the acquisition of Plot No.219, measuring 1 bigha, 10 biswa and 10 biswansi in Village Malesemau, Lucknow, had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The original writ petitioners had challenged the acquisition proceedings, but during the pendency of the writ petition, the challenge was restricted to the said plot. The High Court allowed the writ petition solely on the ground that compensation was not tendered or paid to the original landowners under Section 30(2) of the Land Acquisition Act, 1894 at the time the 2013 Act came into force. However, the appellant authority contended that possession of the land was taken on 13.02.2003 by the Special Land Acquisition Officer and delivered to the Lucknow Development Authority on the same day, as evidenced by a Possession Certificate. The Supreme Court, relying on its Constitution Bench decision in Indore Development Authority v. Manoharlal, held that for a deemed lapse under Section 24(2), both conditions of non-possession and non-payment must be satisfied. Since possession was taken prior to the 2013 Act, the acquisition proceedings did not lapse. The Court also noted that the compensation had been deposited in the court of the District Judge under Section 30(2) of the 1894 Act. Consequently, the Supreme Court allowed the appeal, set aside the High Court's judgment, and dismissed the original writ petition.

Headnote

A) Land Acquisition - Deemed Lapse under Section 24(2) - Twin Conditions - The Supreme Court held that for acquisition proceedings to be deemed lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, both conditions of non-possession and non-payment of compensation must be satisfied. Since possession was taken on 13.02.2003, the condition of non-possession was not met, and therefore no lapse occurred. (Paras 3-4)

B) Land Acquisition - Possession - Vesting of Land - Once possession is taken under Section 16 of the Land Acquisition Act, 1894, the land vests in the State and there is no divesting under Section 24(2) of the 2013 Act. The mode of taking possession is by drawing an inquest report/memorandum. (Para 3.2)

C) Land Acquisition - Compensation - Deposit in Court - The expression 'paid' in Section 24(2) does not include deposit of compensation in court. Non-deposit does not result in lapse; instead, the proviso to Section 24(2) provides for compensation under the 2013 Act if not deposited for majority of holdings. (Para 3.2)

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Issue of Consideration

Whether the High Court was correct in declaring that the 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, despite the fact that possession of the land was taken on 13.02.2003, prior to the commencement of the 2013 Act.

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Final Decision

The Supreme Court allowed the appeal, quashed and set aside the High Court's judgment, and dismissed the original writ petition. The acquisition proceedings were held not to have lapsed.

Law Points

  • Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013 requires both non-possession and non-payment for deemed lapse
  • possession taken prior to 2013 Act vests land in State
  • deposit of compensation in court does not amount to payment
  • word 'or' in Section 24(2) read as 'nor' or 'and'.
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Case Details

2022 LawText (SC) (12) 35

Civil Appeal No. 8887 of 2022

2022-12-12

M.R. Shah, M.M. Sundresh

Lucknow Development Authority

Mehdi Hasan (Deceased) Thr. LRs. & Ors.

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Nature of Litigation

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

Remedy Sought

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

Filing Reason

High Court declared acquisition lapsed despite possession taken in 2003.

Previous Decisions

High Court allowed writ petition on ground of non-payment of compensation.

Issues

Whether the High Court erred in declaring lapse under Section 24(2) when possession was taken prior to the 2013 Act. Whether both conditions of non-possession and non-payment must be satisfied for deemed lapse.

Submissions/Arguments

Appellant argued that possession was taken on 13.02.2003 and compensation deposited in court, so no lapse. Respondents argued that compensation was not paid to landowners, hence lapse.

Ratio Decidendi

For a deemed lapse under Section 24(2) of the 2013 Act, both conditions of non-possession and non-payment of compensation must be satisfied. If possession has been taken, even if compensation is not paid, there is no lapse. The word 'or' in Section 24(2) is to be read as 'nor' or 'and'.

Judgment Excerpts

Once the possession was taken much prior to Act 2013 came into force. As per the law laid down by this Court in the case of Indore Development Authority (supra), it cannot be said that the land proceedings are deemed to have lapsed. The word 'or' used in Section 24(2) between possession and compensation has to be read as 'nor' or as 'and'.

Procedural History

The original writ petition was filed before the Allahabad High Court (Lucknow Bench) in Misc. Bench No.4149 of 2006. The High Court allowed the petition on 03.07.2017, declaring the acquisition lapsed. The Lucknow Development Authority appealed to the Supreme Court, which condoned the delay and heard the appeal.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(1)(a), Section 24(1)(b), Section 24(2)
  • Land Acquisition Act, 1894: Section 16, Section 30(2), Section 31, Section 34
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