Case Note & Summary
The case involved an appeal by the Ayodhya Faizabad Development Authority against a High Court order that declared the land acquisition proceedings for three plots 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 while compensation was deposited in the Treasury, it was not deposited in court, leading to the conclusion that compensation was not paid to landowners. The Supreme Court reviewed the High Court's judgment and referenced its own previous decisions, particularly the case of Indore Development Authority v. Manoharlal, which clarified that non-deposit of compensation in court does not lead to the lapse of acquisition proceedings if compensation was otherwise deposited and possession was taken. The Supreme Court found that since the compensation was deposited and possession was taken on 07.09.2005, the High Court's ruling was incorrect. Consequently, the Supreme Court quashed the High Court's order and dismissed the writ petition, stating that there would be no order as to costs.
Headnote
A) Land Acquisition - Lapse of Proceedings - Validity of Compensation Deposit - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - The High Court held that acquisition proceedings lapsed as compensation was not deposited in court, but the Supreme Court found this unsustainable as compensation was deposited in the Treasury and possession was taken. Held that non-deposit in court does not result in lapse of proceedings (Paras 3-4).
Issue of Consideration
Whether the land 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-deposit of compensation in court.
Final Decision
The Supreme Court quashed the High Court's order and dismissed the writ petition, ruling that the land acquisition proceedings were valid as compensation was deposited in the Treasury and possession was taken.
Law Points
- Land Acquisition
- Compensation
- Lapse of Proceedings
- Right to Fair Compensation and Transparency in Land Acquisition
- Rehabilitation and Resettlement Act
- 2013
- Section 24


