Non-tendering of compensation does not lead to lapse of acquisition proceedings if possession has been taken over as per Section 24(2) of Act 2013.

JUDGMENT :

M.R. Shah, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 20.12.2017 passed by the High Court of Delhi at New Delhi in Writ Petition (Civil) No.12174 of 2015 by which the High Court has allowed the said writ petition preferred by the respondent no.1 herein – original writ petitioner and has declared that the acquisition with respect 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 ‘the Act 2013’), the Delhi Development Authority has 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 LAC before the High Court and so stated in the counter affidavit filed by the LAC that a notification under Section 4 of the Land Acquisition Act, 1894 was issued on 23.09.1989 for planned development of Delhi for the acquisition of the lands falling in Village Ghonda Gujaran Khadar. That award was declared on 19.06.1992 and the actual vacant physical possession of the subject land was taken on 21.03.2007, out of which the original petitioner has been claiming 1/12th share on the spot and handed over to the DDA after preparing possession proceedings on the spot. It was also stated that the recorded owners/heirs never came forward to receive any compensation and hence the same is lying unpaid. However, thereafter without even deciding the question of ownership and title of the original writ petitioner and leaving the same open and relying upon its earlier decision in the case of Gyanender Singh & Ors. vs. Union of India & Ors. in W.P. (C) No.1393 of 2014 decided on 23.09.2014, the High Court has passed the impugned judgment and order and has declared the acquisition proceedings deemed to have lapsed on the ground that the compensation was not tendered to the original writ petitioner.

2.1 However, it is required to be noted that while deciding the Gyanender Singh (supra) the High Court has relied upon the earlier decision of this Court in the case of Pune Municipal Corporation and Anr. Vs. Harakchand Misirimal Solanki and Ors., (2014) 3 SCC 183. It is to be noted that the decision of this Court in the case of Pune Municipal Corporation and Anr. (supra) has been over ruled by the Constitution Bench of this Court in the case of Indore Development Authority versus Manoharlal and others reported in (2020) 8 SCC 129. In paragraphs 365 and 366, it is 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.

366.2. 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