SUPREME COURT OF INDIA
M.R. SHAH, C.T. RAVIKUMAR, JJ.
Delhi Development Authority – Appellant
Versus
Nem Chand Sharma and Others – Respondents
Civil Appeal No. 395 of 2023, SLP (C) No. 1586 of 2023, Diary No. 32640 of 2022
Decided On : 20-01-2023
Fact of the Case:
The High Court declared that the acquisition proceedings under the Land Acquisition Act, 1894 lapsed under Section 24(2) of the Act 2013 due to lack of clarity on compensation payment and compliance with procedural requirements.Finding of the Court:
The Supreme Court held that the possession of the land was taken over, satisfying one condition under Section 24(2) of the Act 2013. It also emphasized that the decision in Pune Municipal Corporation vs. Harakchand Misirimal Solanki had been overruled by Indore Development Authority vs. Manoharlal, which clarified the conditions for deeming lapse of acquisition.Issues:
Whether the acquisition proceedings lapsed under Section 24(2) of the Act 2013 due to non-payment or non-deposit of compensation.Ratio Decidendi:
The court applied the interpretation from Indore Development Authority vs. Manoharlal, emphasizing that both conditions of not taking over possession and not tendering/paying compensation must be satisfied for a deemed lapse of acquisition under Section 24(2) of the Act 2013.Final Decision:
The impugned judgment declaring a lapse in acquisition proceedings was quashed and set aside, allowing the 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. 3466 of 2015 by which the High Court has allowed the said writ petition preferred by the original writ petitioners- respondents herein 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 Delhi Development Authority has preferred the present appeal.
2. We have heard the learned counsel appearing on behalf of the respective parties at length and perused the impugned judgment and order passed by the High Court.
2.1 From the impugned judgment and order passed by the High Court, it appears that though the High Court has observed and believed the case on behalf of the appellant and the Government of NCT of Delhi that the possession of the land in question was taken over, still, the High Court has allowed the writ petition and has declared that the acquisition with respect to the land in question is deemed to have lapsed under Section 24(2) of the Act, 2013 solely on the ground that it is not clear as to what compensation was paid and if so, who raised the dispute and whether the provisions of Sections 30 and 31 of the Act, 1894 were satisfied in accordance with the prevailing procedure. While passing the impugned judgment and order, the High Court has heavily relied upon the earlier decision of this Court in the case of Pune Municipal Corporation and Another vs. Harakchand Misirimal Solanki and Others, (2014) 3 SCC 183. However, it is required to be noted that the decision of this Court in the case of Pune Municipal Corporation and Another (supra) has been subsequently overruled by the Constitution Bench decision of this Court in the case of Indore Development Authority vs. Manoharlal and Others, (2020) 8 SCC 129.
2.2 Apart from the above, even in the case of Indore Development Authority (supra), the Constitution Bench of this Court has observed and held that for attracting the provisions of Section 24(2) of the Act, 2013, twin conditions of not taking over of possession and not tendering/paying the compensation are to be satisfied and if one of the conditions is not satisfied, there shall not be any deemed lapse of acquisition. In the present case, as observed hereinabove, the possession of the land in question was taken and handed over to the beneficiary department initially on 27.12.1990 and thereafter the remaining 1 bigha was taken and handed over to the beneficiary department on 09.02.2007. In the case of Indore Development Authority (supra) 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 Corporation vs. Harakchand Misirimal Solanki, (2014) 3 SCC 183, is hereby overruled and all other decisions in which Pune Municipal Corporation vs. Harakchand Misirimal Solanki, (2014) 3 SCC 183, has been followed, are also overruled. The decision in Sree Balaji Nagar Residential Assn. vs. State of Tamil Nadu, (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 vs. 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, ther
For a deemed lapse of acquisition under Section 24(2) of the Act 2013, both conditions regarding possession and compensation must be unsatisfied as per Indore Development Authority vs. Manoharlal.
Land acquisition proceeding will not lapse where possession of land could not be taken by authority due to pending litigation/stay.
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....
For lapsing of acquisition under Section 24(2) of the Act, both possession not taken and compensation not tendered are required to be satisfied.
Possession not being taken due to a court stay does not entitle the landowner to claim benefit under Section 24(2) of Act 2013.
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....
Possession taken or compensation paid prevents a lapse under Section 24(2) of the Act, 2013.
The interpretation and application of Section 24(2) of the Act, 2013 are crucial in determining whether there is a deemed lapse of land acquisition proceedings based on possession, compensation, and ....
Non-deposit of compensation in court does not result in the lapse of land acquisition proceedings.
Possession of land taken or compensation paid prevents a lapse under Section 24(2) of the Act, 2013.
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