Supreme Court Quashes High Court Order Declaring Land Acquisition Lapsed — Upholds Validity of Acquisition Under Act, 2013. The Supreme Court clarified that possession taken and compensation deposited negates the lapse of acquisition under Section 24(2).

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Case Note & Summary

The dispute arose from a judgment by the High Court of Delhi, which declared that the acquisition of land by the Delhi Development Authority had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The High Court's decision was based on the premise that compensation had not been paid to the original writ petitioner. The Delhi Development Authority appealed this decision, arguing that possession of the land was taken on 27.09.2012 and that the compensation had been deposited with the Treasury. The Supreme Court noted that the High Court had relied heavily on a previous decision that had since been overruled by a Constitution Bench in the case of Indore Development Authority versus Manoharlal. The Supreme Court clarified that the interpretation of Section 24(2) indicates that if possession has been taken, the acquisition cannot be deemed to have lapsed due to non-payment of compensation. The Court emphasized that the word 'or' in Section 24(2) should be interpreted as 'nor' or 'and', meaning that both possession and compensation must be unfulfilled for a lapse to occur. The Supreme Court ultimately quashed the High Court's order, dismissing the original writ petition and affirming the validity of the land acquisition.

Headnote

A) Land Acquisition - Deemed Lapse of Acquisition - Validity of Acquisition - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - The High Court declared the acquisition lapsed due to non-payment of compensation, relying on an overruled precedent. The Supreme Court held that if possession was taken, as in this case, and compensation was deposited, there is no lapse of acquisition proceedings (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.

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Final Decision

The Supreme Court allowed the appeal, quashed the High Court's order declaring the acquisition lapsed, and dismissed the original writ petition.

Law Points

  • Land acquisition
  • deemed lapse
  • compensation
  • possession
  • interpretation of statutes
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Case Details

2023 LawText (SC) (01) 249

Civil Appeal No. of 2023 (@ SLP (C) No. of 2023) (@ Diary No.15374 of 2022)

2023-01-16

M.R. Shah, C.T. Ravikumar

Nitin Mishra, Gopal Sankaranarayan

Delhi Development Authority

Eminent Marketing Pvt. Ltd. & Ors.

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Nature of Litigation

Appeal against High Court's order declaring land acquisition lapsed.

Remedy Sought

Delhi Development Authority sought to quash the High Court's order.

Filing Reason

High Court declared acquisition lapsed due to non-payment of compensation.

Previous Decisions

High Court relied on an overruled precedent.

Issues

Whether the acquisition of land is deemed to have lapsed under Section 24(2) of the Act, 2013.

Submissions/Arguments

Appellant argued that possession was taken and compensation was deposited, negating the lapse. Respondent contended that non-payment of compensation warranted the lapse of acquisition.

Ratio Decidendi

The Supreme Court held that possession taken and compensation deposited negates the lapse of acquisition under Section 24(2) of the Act, 2013.

Judgment Excerpts

The impugned judgment and order passed by the High Court declaring that the acquisition with respect to the land in question is deemed to have lapsed is hereby quashed and set aside. The decision of Pune Municipal Corporation and Anr. (supra) has been subsequently specifically over-ruled by the Constitution Bench of this Court in the case of Indore Development Authority versus Manoharlal and others.

Procedural History

The High Court allowed the writ petition and declared the acquisition lapsed, leading to the appeal by the Delhi Development Authority.

Acts & Sections

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