The possession of land must not have been taken and compensation must not have been paid for the land acquisition proceedings to be deemed to have lapsed under Section 24(2) of the Act, 2013.

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. 5258 of 2015 by which the High Court has allowed the said writ petition and has declared that the land acquisition proceedings 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 Another have preferred the present appeal.

2. From the impugned judgment and order passed by the High Court, it appears that while declaring that the acquisition proceedings under the Act, 1894 is deemed to have lapsed under Section 24(2) of the Act, 2013, the High Court has heavily relied 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.

2.1 However, the High Court has failed to notice and consider the specific case on behalf of the appellants that at the relevant time, the possession could not be taken over due to the pending proceedings at the instance of the landowners challenging the acquisition proceedings, which ended upto this Court. The original landowners failed in challenge to the acquisition proceedings upto this Court. Under the circumstances, when due to pendency of the land acquisition proceedings, the possession could not be taken over, thereafter, it will not be open for the landowners to contend that as the possession was not taken over, the land acquisition proceedings be deemed to have lapsed under Section 24(2) of the Act, 2013.

2.2 In the case of Indore Development Authority vs. Manoharlal and Others, (2020) 8 SCC 129, in paragraph 366, the Constitution Bench of this Court has observed and held 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, c