IMPORTANT POINT
Lapse of land acquisition proceeding – Provisions of Section 24(2) of Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 providing for deemed lapse of proceedings are applicable in case authorities have failed due to their inaction to take possession and pay compensation for five years or more before 2013 Act came into force.

JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court of Delhi at New Delhi in Writ Petition (C) No. 10359 of 2015 by which the High Court has allowed the said writ petition preferred by the private respondent herein-original writ petitioner, and has held and declared that the acquisition with respect to the land in question has lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as “Act 2013”), the Delhi Development Authority has preferred the present appeal.

2. Having gone through the Impugned judgment and order passed by the High Court, it is seen that the High Court has ordered lapsing of the land in question under Section 24 of the Act, 2013 relying upon the decision of this Court in the case of Pune Municipal Corporation and Another vs. Harakchand Misirimal Solanki and Others, (2014) 3 SCC 183 and on the ground that the compensation has not been paid to the landowners. However, it is required to be noted that before the High Court, it was the specific case on behalf of the Delhi Development Authority that the possession of the land in question has already been taken. As observed hereinabove on the ground that the compensation has not been paid to the landowner relying upon the decision of this Court in the case of Pune Municipal Corporation and Another (supra), the High Court has allowed the said writ petition and has declared that the acquisition with respect to the land in question has lapsed.

3. The decision of this Court in the case of Pune Municipal Corporation and Another (supra) relied upon by the High Court has been overruled by the Constitution Bench decision of this Court in the case of Indore Development Authority vs. Manoharlal and Others, (2020) 8 SCC 129 and in paragraph 366, it is ultimately concluded as under:

“366. In view of the aforesaid discussion, we answer the questions as under:

366.1. Under the provisions of Section 24(1)(a) in case the award is not made as on 1-1-2014, the date of commencement of the 2013 Act, there is no lapse of proceedings. Compensation has to be determined under the provisions of the 2013 Act.

366.2. In case the award has been passed within the window period of five years excluding the period covered by an interim order of the court, then proceedings shall continue as provided under Section 24(1)(b) of the 2013 Act under the 1894 Act as if it has not been repealed.

366.3. The word “or” used in Section 24(2) between possession and compensation has to be read as “nor” or as “and”. The deemed lapse of land acquisition proceedings under Section 24(2) of the 2013 Act takes place where due to inaction of authorities for five years or more prior to commencement of the said Act, the possession of land has not been taken nor compensation has been paid. In other words, in case possession has been taken, compensation has not been paid then there is no lapse. Similarly, if compensation has been paid, possession has not been taken then there is no lapse.

366.4. The expression “paid” in the main part of Section 24(2) of the 2013 Act does not include a deposit of compensation in court. The consequence of non-deposit is provided in the proviso to Section 24(2) in case it has not been deposited with respect to majority of landholdings then all beneficiaries (landowners) as on the date of notification for land acquisition under Section 4 of the 1894 Act shall be entitled to compensation in accordance with the provisions of the 2013 Act. In case the obligation under Section 31 of the Land Acquisition Act, 1894 has not been fulfilled, interest under Section 34 of the said Act can be granted. Non-deposit of compensation (in court) does not result in the lapse of land acquisition proceedings. In case of non-deposit with respect to the majority of holdings for five years or more, compensation under the 2013 Act has to be pa