Supreme Court Quashes High Court Order on Land Acquisition Lapse Due to Possession Taken. Conditions for Lapse Under Section 24(2) Not Met as Possession was Taken in 1981.

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Case Note & Summary

The case involved an appeal against a High Court judgment that declared the acquisition of land lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The acquisition proceedings dated back to 1965, with an award declared in 1981. The Government of NCT of Delhi contended that possession was taken in 1981, but the High Court ruled that compensation was not tendered, leading to the lapse. The Supreme Court analyzed the conditions under Section 24(2) and referenced the Constitution Bench decision in Indore Development Authority Vs. Manoharlal, emphasizing that both possession and compensation must not have been addressed for a lapse to occur. The court found that since possession was taken, the conditions for lapse were not met, and the High Court's ruling was unsustainable. Consequently, the Supreme Court quashed the High Court's order and allowed the appeal by the Land and Building Department, stating that no further orders were necessary regarding the Delhi Development Authority's appeal. The judgment was delivered on January 20, 2023.

Headnote

A) Land Acquisition - Deemed Lapse of Acquisition - Conditions for Lapse - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - The court held that for the acquisition to be deemed lapsed, both possession must not have been taken and compensation must not have been tendered. Since possession was taken in 1981, the conditions for lapse were not satisfied, thus the High Court's declaration was quashed. (Paras 2.3-2.4)

B) Land Acquisition - Tendering of Compensation - Non-Deposit of Compensation - Land Acquisition Act, 1894, Section 31 - The court clarified that non-deposit of compensation does not result in lapse of acquisition proceedings. The obligation to pay is fulfilled by tendering the amount, and landowners cannot claim lapse if compensation was tendered. (Paras 2.3-2.5)

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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 quashed the High Court's order declaring the acquisition lapsed and allowed the appeal by the Land and Building Department, stating that the conditions for lapse under Section 24(2) were not satisfied as possession was taken in 1981.

Law Points

  • Land Acquisition
  • Compensation
  • Deemed Lapse
  • Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013
  • Section 24(2)
  • Possession
  • Tendering of Compensation
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Case Details

2023 LawText (SC) (01) 282

Civil Appeal No. of 2023 (@ SLP (C) No. of 2023) (@ Diary No. 29758 of 2022)

2023-01-20

M.R. Shah, Hima Kohli

The Secretary, Land & Building Department, Govt. of NCT of Delhi & Ors.

Om Prakash (Dead) Through LRs. AND ORS.

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Nature of Litigation

Appeal against High Court's declaration of lapse of land acquisition.

Remedy Sought

Quashing of High Court's order declaring acquisition lapsed.

Filing Reason

Claim of lapse of acquisition proceedings due to non-tendering of compensation.

Previous Decisions

High Court ruled acquisition lapsed based on non-tendering of compensation.

Issues

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

Submissions/Arguments

Appellant argued that possession was taken in 1981, thus conditions for lapse were not met. Respondents contended that compensation was not tendered, leading to lapse.

Ratio Decidendi

For a lapse under Section 24(2) of the Act, both possession must not have been taken and compensation must not have been tendered. If either condition is satisfied, there is no lapse.

Judgment Excerpts

The High Court has allowed the said writ petition and has declared that the acquisition proceedings... is deemed to have lapsed under Section 24(2) of the Act, 2013. The view taken by the High Court is unsustainable in view of the decision of the Constitution Bench of this Court in the case of Indore Development Authority Vs. Manoharlal and Ors.

Procedural History

The High Court allowed the writ petition declaring the acquisition lapsed, leading to the present appeal by the Government of NCT of Delhi.

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
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