Supreme Court Allows Appeal by Land Acquisition Collector in Land Acquisition Lapse Case — Overruled Precedent Leads to Reversal. Possession Taken in 2004 Precludes Deemed Lapse Under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

In Favour of Prosecution
  • 71
Judgement Image
Font size:
Print

Case Note & Summary

The case involves an appeal by the Land Acquisition Collector (South East), Delhi Government, against the judgment of the Delhi High Court dated 25.04.2016 in Writ Petition (C) No. 4576 of 2015. The High Court had allowed the writ petition filed by Dharamvir and others, declaring that the land acquisition proceedings with respect to the land in question were deemed to have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Act, 2013). The High Court relied on the decision in Pune Municipal Corporation v. Harakchand Misirimal Solanki, (2014) 3 SCC 183, and observed that compensation had not been paid, despite noting that possession was taken on 16.03.2004. The appellant challenged this, arguing that the Pune Municipal Corporation decision had been overruled by the Constitution Bench of the Supreme Court in Indore Development Authority v. Manoharlal, (2020) 8 SCC 129. The Supreme Court agreed, noting that the Constitution Bench had overruled Pune Municipal Corporation and clarified the interpretation of Section 24(2). Specifically, the Court held that the word 'or' in Section 24(2) must be read as 'nor' or 'and', meaning deemed lapse occurs only if both possession has not been taken and compensation has not been paid for five years or more prior to the commencement of the 2013 Act. Since possession was taken on 16.03.2004, there was no lapse. The Supreme Court allowed the appeal, set aside the High Court's judgment, and dismissed the original writ petition. No costs were awarded.

Headnote

A) Land Acquisition - Deemed Lapse under Section 24(2) - Overruling of Precedent - The High Court declared land acquisition proceedings lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, relying on Pune Municipal Corporation v. Harakchand Misirimal Solanki, which was subsequently overruled by the Constitution Bench in Indore Development Authority v. Manoharlal. The Supreme Court held that since possession was taken on 16.03.2004, and the decision relied upon was overruled, the impugned judgment is unsustainable. (Paras 1-3)

B) Land Acquisition - Interpretation of Section 24(2) - Possession and Compensation - The Constitution Bench in Indore Development Authority held that the word 'or' in Section 24(2) must be read as 'nor' or 'and', meaning deemed lapse occurs only if both possession has not been taken and compensation has not been paid for five years or more prior to 1-1-2014. In this case, possession was taken, so no lapse. (Paras 2-3)

Subscribe to unlock Headnote Subscribe Now

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, relying on the overruled decision in Pune Municipal Corporation v. Harakchand Misirimal Solanki.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court allowed the appeal, set aside the High Court's judgment and order dated 25.04.2016, and dismissed the original Writ Petition (C) No. 4576 of 2015. 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
  • overruling of Pune Municipal Corporation v. Harakchand Misirimal Solanki
  • Indore Development Authority v. Manoharlal
  • possession taken
  • compensation not paid
  • no lapse
Subscribe to unlock Law Points Subscribe Now

Case Details

2022 LawText (SC) (12) 48

Civil Appeal No. 8992 of 2022 (@ SLP (C) No.22130 of 2022) (@ Diary No.30174 of 2022)

2022-12-09

M.R. SHAH, C.T. RAVIKUMAR

Land Acquisition Collector (South East)

Dharamvir & Ors.

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

Nature of Litigation

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

Remedy Sought

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

Filing Reason

High Court allowed writ petition relying on overruled decision in Pune Municipal Corporation.

Previous Decisions

High Court of Delhi allowed Writ Petition (C) No. 4576 of 2015 on 25.04.2016, declaring land acquisition proceedings lapsed.

Issues

Whether the High Court's reliance on Pune Municipal Corporation v. Harakchand Misirimal Solanki, which was subsequently overruled, vitiates the impugned judgment. Whether possession having been taken on 16.03.2004 precludes a declaration of lapse under Section 24(2) of the 2013 Act.

Submissions/Arguments

Appellant submitted that possession was taken on 16.03.2004, and the decision in Pune Municipal Corporation has been overruled by the Constitution Bench in Indore Development Authority. Respondents argued that compensation was not paid, and relied on Pune Municipal Corporation to claim lapse.

Ratio Decidendi

Under Section 24(2) of the 2013 Act, deemed lapse occurs only if both possession has not been taken and compensation has not been paid for five years or more prior to 1-1-2014. Since possession was taken on 16.03.2004, there is no lapse. The decision in Pune Municipal Corporation, which held otherwise, has been overruled by the Constitution Bench in Indore Development Authority.

Judgment Excerpts

In view of the above Constitution Bench decision of this Court in the case of the Indore Development Authority (supra), the impugned judgment and order passed by the High Court is unsustainable and the same deserves to be quashed and set aside and is accordingly quashed and set aside. The word 'or' used in Section 24(2) between possession and compensation has to be read as 'nor' or as 'and'. The deemed lapse of land acquisition proceedings under Section 24(2) of the 2013 Act takes place where due to inaction of authorities for five years or more prior to commencement of the said Act, the possession of land has not been taken nor compensation has been paid.

Procedural History

The respondents filed Writ Petition (C) No. 4576 of 2015 before the High Court of Delhi, which was allowed on 25.04.2016, declaring land acquisition proceedings lapsed under Section 24(2) of the 2013 Act. The appellant, Land Acquisition Collector (South East), appealed to the Supreme Court via SLP (C) No.22130 of 2022, which was converted into Civil Appeal No. 8992 of 2022. The Supreme Court heard and allowed the appeal on 09.12.2022.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(2), Section 24(1)(a), Section 24(1)(b)
  • Land Acquisition Act, 1894: Section 4, Section 16, Section 31, Section 34
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Appeal by Land Acquisition Collector in Land Acquisition Lapse Case — Overruled Precedent Leads to Reversal. Possession Taken in 2004 Precludes Deemed Lapse Under Section 24(2) of the Right to Fair Compensation and Transparency...
Related Judgement
Supreme Court Supreme Court Allows State's Appeal Against High Court Direction for Regularisation of Contractual Employees. Contractual Appointments in Temporary Project Units Do Not Confer Right to Absorption, and Service Period Under Interim Orders Must Be Exclu...