Supreme Court Quashes High Court Order Declaring Land Acquisition Lapsed Due to Non-Tendering of Compensation. Non-Tendering of Compensation Does Not Lead to Lapse if Possession Has Been Taken Under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

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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 certain lands had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 due to non-tendering of compensation. The Delhi Development Authority (DDA) and the Government of NCT of Delhi appealed against this decision. The High Court found that compensation had not been tendered to the original writ petitioners, leading to its conclusion. However, the appellants contended that possession of the land was taken by the Land Acquisition Collector (LAC) and handed over to the DDA, which the High Court acknowledged. The appellants argued that the possession certificate did not indicate lawful possession as it lacked a reference to the LAC taking possession from the original writ petitioners. The Supreme Court noted that the High Court's reliance on non-tendering of compensation was contrary to established legal principles, particularly referencing the Constitution Bench decision in Indore Development Authority Vs. Manoharlal. The Supreme Court emphasized that if possession had been taken, the acquisition could not be deemed to have lapsed solely due to non-payment of compensation. Consequently, the Supreme Court quashed the High Court's order, allowing the appeals without costs.

Headnote

A) Land Acquisition - Deemed Lapse of Acquisition - Non-tendering of Compensation - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - The High Court declared the acquisition lapsed on grounds of non-tendering of compensation despite possession being taken. The Supreme Court held that mere non-tendering of compensation does not lead to lapse if possession has been taken, thus quashing the High Court's order (Paras 1-6).

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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 due to non-tendering of compensation.

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Final Decision

The Supreme Court quashed the High Court's order declaring the acquisition lapsed and allowed the appeals, stating that mere non-tendering of compensation does not lead to lapse if possession has been taken.

Law Points

  • Land Acquisition
  • Compensation
  • Possession
  • Deemed Lapse
  • Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013
  • Land Acquisition Act
  • 1894
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Case Details

2022 LawText (SC) (12) 106

Civil Appeal No. 9115 of 2022

2022-12-15

M.R. Shah, S. Ravindra Bhat

Delhi Development Authority, Govt. of NCT of Delhi

Chandermal & Ors.

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Nature of Litigation

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

Remedy Sought

DDA and Government of NCT of Delhi sought to quash the High Court's order.

Filing Reason

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

Previous Decisions

High Court found that compensation had not been tendered to the original writ petitioners.

Issues

Whether the acquisition of land is deemed to have lapsed under Section 24(2) due to non-tendering of compensation. Whether possession taken by LAC was lawful.

Submissions/Arguments

Appellants argued that possession was taken and handed over to DDA, thus acquisition was complete. Respondents contended that compensation was not tendered, leading to lapse.

Ratio Decidendi

The Supreme Court held that the acquisition cannot be deemed to have lapsed under Section 24(2) of the Act if possession has been taken, regardless of the non-tendering of compensation.

Judgment Excerpts

The High Court has declared that the acquisition with regard to the subject land is deemed to have lapsed under Section 24(2) of the Act, 2013. The view taken by the High Court that the acquisition is deemed to have lapsed under Section 24(2) of the Act, 2013 on the ground that though the possession of the subject lands has been taken over but the compensation in respect of the subject lands has not been tendered is just contrary to the Constitution Bench decision.

Procedural History

The High Court allowed the writ petition declaring the acquisition lapsed, leading to appeals by DDA and Government of NCT of Delhi.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act: 24(2)
  • Land Acquisition Act: 16
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