Supreme Court Allows Government Appeal in Land Acquisition Lapse Case — High Court's Declaration of Deemed Lapse Set Aside Due to Pendency of Proceedings Preventing Possession. The Court held that where possession could not be taken due to pending litigation initiated by landowners, the acquisition proceedings do not lapse under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

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Case Note & Summary

The Supreme Court allowed the appeal filed by the Government of NCT of Delhi against the judgment of the Delhi High Court which had declared that the land acquisition proceedings under the Land Acquisition Act, 1894 had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The dispute pertained to land acquisition proceedings where the original landowners had challenged the acquisition up to the Supreme Court and failed. The High Court, relying on Pune Municipal Corporation v. Harakchand Misirimal Solanki, held that the proceedings had lapsed due to non-taking of possession and non-payment of compensation. However, the Supreme Court noted that the High Court failed to consider that possession could not be taken due to the pending litigation initiated by the landowners themselves. The Court applied the principles laid down by the Constitution Bench in Indore Development Authority v. Manoharlal, which clarified that the period covered by interim orders of court must be excluded in computing the five-year period under Section 24(2). The Court held that where possession could not be taken due to pending proceedings, landowners cannot claim lapse. The Supreme Court quashed the High Court's order and dismissed the writ petition, allowing the appeal with no order as to costs.

Headnote

A) Land Acquisition - Deemed Lapse under Section 24(2) of the 2013 Act - Possession Not Taken Due to Pending Litigation - Where possession could not be taken over due to pending proceedings at the instance of landowners challenging the acquisition, it is not open for landowners to contend that acquisition proceedings have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The period of subsistence of interim orders passed by court has to be excluded in the computation of five years. (Paras 2.1-2.2, 3)

B) Land Acquisition - Interpretation of Section 24(2) - Word 'or' read as 'nor' or 'and' - Deemed lapse occurs only where due to inaction of authorities for five years or more prior to commencement of the 2013 Act, possession has not been taken nor compensation paid. If possession has been taken but compensation not paid, or compensation paid but possession not taken, there is no lapse. (Para 2.2, 366.3)

C) Land Acquisition - Mode of Taking Possession - Under Section 16 of the 1894 Act, once award passed and possession taken by drawing inquest report/memorandum, land vests in State and there is no divesting under Section 24(2) of the 2013 Act. (Para 2.2, 366.7)

D) Land Acquisition - Applicability of Section 24(2) - Section 24(2) applies to proceedings pending on 1-1-2014 and does not revive stale or time-barred claims or reopen concluded proceedings. (Para 2.2, 366.9)

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Issue of Consideration

Whether the High Court was correct in declaring that land acquisition proceedings under the Land Acquisition Act, 1894 had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, when possession could not be taken due to pending proceedings initiated by landowners challenging the acquisition.

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Final Decision

The Supreme Court allowed the appeal, quashed and set aside the impugned judgment and order of the High Court, and dismissed the writ petition. No costs.

Law Points

  • Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013
  • deemed lapse of land acquisition proceedings
  • possession not taken due to pending litigation
  • exclusion of interim order period in computation of five years
  • Indore Development Authority v. Manoharlal principles
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Case Details

2022 LawText (SC) (12) 41

Civil Appeal No. 8929 of 2022 (@ SLP (C) No. 21810 of 2022) (@ Diary No. 27937 of 2022)

2022-12-02

M.R. Shah, C.T. Ravikumar

Government of NCT of Delhi and Anr.

Sudesh Verma and Anr.

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Nature of Litigation

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

Remedy Sought

Appellants (Government of NCT of Delhi) sought to set aside the High Court's declaration of lapse and uphold the acquisition proceedings.

Filing Reason

The High Court declared that land acquisition proceedings under the 1894 Act had lapsed under Section 24(2) of the 2013 Act, relying on Pune Municipal Corporation v. Harakchand Misirimal Solanki, without considering that possession could not be taken due to pending litigation by landowners.

Previous Decisions

The High Court of Delhi allowed Writ Petition (C) No. 5258 of 2015, declaring the acquisition proceedings lapsed. The original landowners had previously challenged the acquisition up to the Supreme Court and failed.

Issues

Whether the High Court erred in declaring lapse under Section 24(2) when possession could not be taken due to pending proceedings initiated by landowners. Whether the period of interim orders should be excluded in computing the five-year period under Section 24(2).

Submissions/Arguments

Appellants argued that possession could not be taken due to pending proceedings at the instance of landowners challenging the acquisition, which ended up to the Supreme Court, and therefore landowners cannot claim lapse. Respondents (landowners) presumably argued that possession was not taken and compensation not paid, leading to deemed lapse under Section 24(2).

Ratio Decidendi

Where possession of land could not be taken over due to pending proceedings at the instance of landowners challenging the acquisition, it is not open for the landowners to contend that the land acquisition proceedings have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The period of subsistence of interim orders passed by court has to be excluded in the computation of five years under Section 24(2).

Judgment Excerpts

However, the High Court has failed to notice and consider the specific case on behalf of the appellants that at the relevant time, the possession could not be taken over due to the pending proceedings at the instance of the landowners challenging the acquisition proceedings, which ended upto this Court. In view of the above and for the reasons stated above, the impugned judgment and order passed by the High Court declaring that the land acquisition proceedings with respect to the land in question has lapsed under Section 24(2) of the Act, 2013 is unsustainable and the same deserves to be quashed and set aside and is accordingly quashed and set aside.

Procedural History

The original landowners filed Writ Petition (C) No. 5258 of 2015 before the High Court of Delhi, which was allowed on the ground that land acquisition proceedings had lapsed under Section 24(2) of the 2013 Act. The Government of NCT of Delhi appealed to the Supreme Court by way of Special Leave Petition (C) No. 21810 of 2022, which was converted into Civil Appeal No. 8929 of 2022. The Supreme Court heard the appeal and delivered judgment on 02-12-2022.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 16, Section 31, Section 34
  • 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)
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