SUPREME COURT OF INDIA
M.R. SHAH, C.T. RAVIKUMAR, JJ.
Government of NCT of Delhi and Anr. - Appellants
Versus
Karampal and Anr. - Respondents
Civil Appeal No. 8931 of 2022 (@ SLP(C) No. 21812 of 2022) (@ Diary No. 27599 of 2022)
Decided On : 02-12-2022
Land Acquisition - Lapse of Acquisition Proceedings - Land Acquisition Act, 1894 - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24(2) - Overruling of Previous Decisions
Fact of the Case:
The High Court declared that the acquisition proceedings with respect to the land in question had lapsed under Section 24(2) of the Act, 2013, based on the non-payment or non-tendering of compensation. The original writ petitioner, a subsequent purchaser, claimed the lapsing of the acquisition proceedings.
Finding of the Court:
The High Court's decision was deemed unsustainable as the subsequent purchaser was not entitled to claim lapsing of acquisition proceedings under the Act, 2013. The Court also highlighted that the High Court had relied on a decision that had been overruled by the Constitution Bench of the Supreme Court.
Issues: The key issue was whether the acquisition proceedings had lapsed under Section 24(2) of the Act, 2013, due to non-payment or non-tendering of compensation, and whether the subsequent purchaser had the right to claim the lapsing of the acquisition proceedings.
Ratio Decidendi: The Constitution Bench of the Supreme Court overruled previous decisions and clarified the provisions of Section 24(2) of the Act, 2013. It emphasized that the word 'or' used in Section 24(2) between possession and compensation should be read as 'nor' or as 'and', and provided detailed interpretations of the conditions leading to the deemed lapse of land acquisition proceedings.
Final Decision: The Supreme Court quashed and set aside the impugned judgment and order passed by the High Court, and allowed the present appeal.
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. 1202 of 2017 by which the High Court has allowed the said writ petition preferred by the original writ petitioner – subsequent purchaser and has declared that the acquisition proceedings initiated under the Land Acquisition Act, 1894 (hereinafter referred to as “Act, 1894”) with regard to the land in question 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 (hereinafter referred to as “Act, 2013”), the Government of NCT of Delhi and Anr. have preferred the present appeal.
2. From the impugned judgment and order passed by the High Court, it appears that it was the specific case on behalf of the appellants and so stated in the counter affidavit before the High Court that the possession of the land in question was taken over on 17.09.2008 and even the name of the Government was mutated in the revenue records. However, thereafter and despite the above, solely relying upon the decision of this Court in the case of Pune Municipal Corporation and Anr. Vs. Harakchand Misirimal Solanki and Ors., (2014) 3 SCC 183 and solely on the ground that the compensation was not paid or tendered in accordance with law, the High Court has declared that the land acquisition proceedings with respect to the land in question has lapsed under Section 24(2) of the Act, 2013.
2.1 At the outset, it is required to be noted that the original writ petitioner before the High Court was the subsequent purchaser and as observed and held by this Court in the case of Delhi Development Authority Vs. Godfrey Philips (I) Ltd. & Ors., Civil Appeal No. 3073 of 2022, subsequent purchaser is not entitled to claim lapsing of acquisition proceedings under the Act, 2013. Therefore, the High Court has materially erred in entertaining the writ petition by the original writ petitioner – subsequent purchaser claiming lapsing of the acquisition proceedings under the Act, 2013.
2.2 Even otherwise, on merits also, the impugned judgment and order passed by the High Court is unsustainable. While passing the impugned judgment and order and declaring that the acquisition proceedings with respect to the land in question has lapsed under Section 24(2) of the Act, 2013, the High Court has relied upon the decision of this Court in the case of Pune Municipal Corporation and Anr. (supra), which has been specifically overruled by the Constitution Bench of this Court in the case of Indore Development Authority Vs. Manoharlal and Ors., (2020) 8 SCC 129. In paragraphs 365 and 366, the Constitution Bench of this Court has observed and held as under:-
“365. Resultantly, the decision rendered in Pune Municipal Corpn. [Pune Municipal Corpn. v. Harakchand Misirimal Solanki, (2014) 3 SCC 183] is hereby overruled and all other decisions in which Pune Municipal Corpn. [Pune Municipal Corpn. v. Harakchand Misirimal Solanki, (2014) 3 SCC 183] has been followed, are also overruled. The decision in Sree Balaji Nagar Residential Assn. [Sree Balaji Nagar Residential Assn. v. State of T.N., (2015) 3 SCC 353] cannot be said to be laying down good law, is overruled and other decisions following the same are also overruled. In Indore Development Authority v. Shailendra [(2018) 3 SCC 412], the aspect with respect to the proviso to Section 24(2) and whether “or” has to be read as “nor” or as “and” was not placed for consideration. Therefore, that decision too cannot prevail, in the light of the discussion in the present judgment.
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.
Lapse of land acquisition proceeding – In case a person has been tendered compensation as provided under Section 31(1) of 1894 Act, it is not open to him to claim that acquisition has lapsed under Se....
The possession of the land and payment of compensation are crucial in determining the lapse of land acquisition proceedings under Section 24(2) of the Act 2013.
Lapse of land acquisition proceeding – Landowners who had refused to accept compensation or who sought reference for higher compensation, cannot claim that acquisition proceedings had lapsed under Se....
Lapse of land acquisition proceeding – Subsequent purchaser has no right to claim lapse of acquisition proceedings.
For lapsing of acquisition under Section 24(2) of the Act, both possession not taken and compensation not tendered are required to be satisfied.
Land acquisition proceeding will not lapse where possession of land could not be taken by authority due to pending litigation/stay.
Possession of land taken or compensation paid prevents a lapse under Section 24(2) of the Act, 2013.
Section 24(2) of the Act, 2013 does not give rise to new cause of action to question concluded land acquisition proceedings.
Possession taken or compensation paid prevents a lapse under Section 24(2) of the Act, 2013.
Possession and compensation are crucial factors in determining whether land acquisition proceedings have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisit....
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