Case Note & Summary
The dispute arose from a writ petition filed by the respondents challenging the acquisition of land by the Delhi Development Authority (DDA) under the Land Acquisition Act, 1894. The High Court of Delhi ruled that the acquisition proceedings had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, as the compensation was not paid to the landowners. The DDA appealed this decision, arguing that the compensation had been deposited with the Reference Court in 1967 and that possession of the land was taken in the same year. The Supreme Court noted that the High Court's reliance on previous judgments was misplaced, particularly as the decision in Pune Municipal Corporation v. Harakchand Misirimal Solanki had been overruled by the Constitution Bench in Indore Development Authority v. Manoharlal. The Supreme Court clarified that the conditions for a deemed lapse under Section 24(2) require both possession not being taken and compensation not being paid. Since the DDA had deposited the compensation and taken possession, the court found the High Court's ruling unsustainable. Consequently, the Supreme Court allowed the appeal, quashing the High Court's order and affirming the validity of the acquisition proceedings.
Headnote
A) Land Acquisition - Deemed Lapse of Proceedings - Conditions for Lapse - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - The court held that the deemed lapse of land acquisition proceedings occurs only when neither possession has been taken nor compensation has been paid. In this case, since compensation was deposited in 1967 and possession was taken, the acquisition did not lapse (Paras 1-5).
Issue of Consideration
Whether the acquisition proceedings lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 due to non-payment of compensation.
Final Decision
The Supreme Court allowed the appeal, quashed the High Court's order, and upheld the validity of the acquisition proceedings.
Law Points
- Land Acquisition
- Compensation
- Deemed Lapse
- Possession
- Right to Fair Compensation



