Case Note & Summary
The Supreme Court considered whether a purchaser of land after issuance of a notification under Section 4 of the Land Acquisition Act, 1894 can invoke Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 to claim that the acquisition has lapsed. The appellants purchased the land on 5.7.2001 after a Section 4 notification dated 27.10.1999 and a Section 6 declaration dated 3.4.2000. Possession was taken on 12.5.2000, and an award was passed on 3.4.2002. The appellants claimed they remained in physical possession and that the land formed part of an unauthorized colony, which was provisionally regularized. They filed a writ petition in the Delhi High Court seeking a declaration that the acquisition had lapsed under Section 24(2) of the 2013 Act. The High Court dismissed the petition, holding that the purchasers could not question the acquisition. The Supreme Court affirmed this decision, relying on a long line of precedents establishing that a sale after a Section 4 notification is void against the State and the purchaser acquires no title to challenge the acquisition. The Court specifically overruled the decision in Government (NCT of Delhi) v. Manav Dharam Trust (2017) 6 SCC 751, which had allowed subsequent purchasers to seek a declaration of lapse under Section 24, holding it to be per incuriam. The Court held that the only right of a subsequent purchaser is to claim compensation, and they cannot invoke Section 24 of the 2013 Act. The appeal was dismissed.
Headnote
A) Land Acquisition - Subsequent Purchaser - Locus Standi - Section 4 of Land Acquisition Act, 1894; Section 24 of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - A person who purchases land after issuance of notification under Section 4 of the 1894 Act has no right to challenge the acquisition proceedings or seek a declaration of lapse under Section 24 of the 2013 Act, as the sale is void against the State and the purchaser acquires no title. The only right of such purchaser is to claim compensation based on the vendor's title. (Paras 1, 6-7) B) Land Acquisition - Section 24 of 2013 Act - Applicability to Subsequent Purchasers - Section 24 of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The decision in Government (NCT of Delhi) v. Manav Dharam Trust (2017) 6 SCC 751, which held that subsequent purchasers can seek declaration of lapse under Section 24, is per incuriam as it overlooks the settled legal position that such purchasers cannot challenge acquisition proceedings. The Court overruled Manav Dharam Trust to the extent it held that subsequent purchasers can invoke Section 24. (Paras 5-7) C) Land Acquisition - Void Sale - Effect - Section 4 of Land Acquisition Act, 1894 - Any alienation of land after publication of notification under Section 4(1) does not bind the Government or the beneficiary under the acquisition. On taking possession, all rights, title, and interest vest in the State free from all encumbrances. The subsequent purchaser's only right is to receive compensation. (Paras 6(a)-6(f))
Issue of Consideration
Whether a purchaser of property after issuance of notification under Section 4 of the Land Acquisition Act, 1894 can invoke the provisions contained in Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Final Decision
The Supreme Court dismissed the appeal, holding that a subsequent purchaser after Section 4 notification cannot invoke Section 24 of the 2013 Act. The decision in Manav Dharam Trust was overruled to that extent.
Law Points
- Subsequent purchaser after Section 4 notification cannot challenge acquisition
- Sale after Section 4 notification is void qua the State
- Section 24 of 2013 Act cannot be invoked by subsequent purchaser
- Locus standi of subsequent purchaser limited to compensation
