Supreme Court Allows Appeal Against High Court's Lapse Declaration in Land Acquisition Case. Acquisition Not Deemed Lapsed as Possession Taken Despite Non-Payment of Compensation Under Section 24(2) of the Act, 2013.

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Case Note & Summary

The dispute arose from a writ petition filed by the respondents challenging the acquisition of land by the Government of NCT of Delhi, claiming it had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The acquisition notification was issued on 23.01.1965, with the award declared and possession taken on 22.09.1986. The respondents contended that actual possession was not taken and that there was an illegal residential colony on the land. The appellants maintained that possession was duly taken and that the respondents were in illegal possession. The High Court ruled in favor of the respondents, relying on a precedent that was later overruled by the Supreme Court in the Indore Development Authority case. The Supreme Court found that the High Court's decision was incorrect as the conditions for a deemed lapse under Section 24(2) were not met since possession had been taken. The Supreme Court set aside the High Court's order, allowing the appeal without costs, and disposed of any pending applications.

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) - Court held that the acquisition cannot be deemed to have lapsed if possession has been taken, even if compensation has not been paid. The High Court's reliance on an overruled precedent was deemed unsustainable, leading to the appeal's allowance (Paras 1-4).

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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 set aside the High Court's order declaring the acquisition lapsed, allowing the appeal and stating that possession had been taken, thus no lapse occurred under Section 24(2). No order as to costs was made.

Law Points

  • Deemed lapse of acquisition
  • compensation payment
  • possession taking
  • interpretation of Section 24(2)
  • legal principles from Indore Development Authority case
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Case Details

2022 LawText (SC) (12) 121

Civil Appeal No. 9201 of 2022

2022-12-15

M.R. Shah, S. Ravindra Bhat

Govt of NCT of Delhi Through Secretary, Land and Building Department

Ram Prakash Sehrawat and Ors.

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Nature of Litigation

Writ petition challenging the lapse of land acquisition.

Remedy Sought

Respondents sought declaration of lapse of acquisition.

Filing Reason

Claim of non-payment of compensation and illegal possession.

Previous Decisions

High Court ruled in favor of respondents based on overruled precedent.

Issues

Whether the acquisition is deemed to have lapsed under Section 24(2). Whether possession was legally taken by the appellants.

Submissions/Arguments

Appellants argued possession was taken and acquisition valid. Respondents claimed acquisition lapsed due to non-payment of compensation.

Ratio Decidendi

The Supreme Court clarified that under Section 24(2), if possession has been taken, the acquisition cannot be deemed to have lapsed even if compensation has not been paid. The interpretation of 'or' in Section 24(2) was held to mean 'nor' or 'and', establishing that both conditions must be unmet for a lapse to occur.

Judgment Excerpts

the acquisition with respect to the land in question is deemed to have lapsed under Section 24(2) of the Act, 2013 the decision of this Court in the case of Pune Municipal Corporation and Anr. (supra) is hereby overruled

Procedural History

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

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(2)
  • Land Acquisition Act, 1894: Section 4, Section 12(2), Section 31(1), Section 34, Section 16
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