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2023 Supreme(SC) 106

SUPREME COURT OF INDIA
M.R. SHAH, C.T. RAVIKUMAR, JJ.
Government of NCT of Delhi - Appellant
Versus
Subhash Gupta & Ors. – Respondent
Civil Appeal No. 737 of 2023 (@ SLP (C) No. 2489 of 2023) (@ DIARY NO. 11120 of 2021)
Decided on : 09-02-2023

Advocates appeared:
For the Appellant(s) : Ms. Sujeeta Srivastava, AOR
For the Respondent(s): Mr. Rahul Bhatia, AOR Ms. Manika Tripathy, AOR Mr. Ashutosh Kaushik, Adv. Mr. Manish Vashist, Adv. Mr. Mishra Saurabh, AOR Mr. Sahil Tagotra, AOR Mr. Abhishek Pandey, Adv. Ms. Abhivyakti Banerjee, Adv. Ms. Sakshi Garg, Adv. Mr. Nitin Mishra, AOR Mr. Ishaan Sharma, Adv. Ms. Sunieta Ojha, AOR

Obtaining a stay on possession precludes landowners from claiming lapse under Section 24(2) of the Act, 2013.

Headnote:Land Acquisition - Land Acquisition Act, 1894; Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The judgment discusses the interpretation of Section 24(2) of the Act, 2013 and its application to land acquisition proceedings. It also highlights the exclusion of the period of stay for taking over possession for the purpose of Section 24(2) and emphasizes that obtaining a stay of possession precludes landowners from claiming lapse under Section 24(2).

Fact of the Case:

The High Court declared that land acquisition proceedings under the Act, 1894 had lapsed under Section 24(2) of the Act, 2013 due to non-possession and non-payment of compensation.

Finding of the Court:

The Supreme Court held that as per the law laid down in a previous case (Indore Development Authority), the period of stay for taking over possession must be excluded for the purpose of Section 24(2). It further stated that obtaining a stay on possession precludes landowners from claiming lapse under Section 24(2).

Issues:

Interpretation and application of Section 24(2) of the Act, 2013; Exclusion of period of stay for taking over possession.

Ratio Decidendi:

The court emphasized that obtaining a stay on possession precludes landowners from claiming lapse under Section 24(2) and clarified the exclusion of the period of stay for taking over possession.

Final Decision:

The High Court's decision declaring that land acquisition proceedings had lapsed under Section 24(2) was quashed and set aside. The appeal was allowed with no costs.

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. 2458 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 land 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 Govt. of NCT of Delhi has preferred the present appeal.

2. From the impugned judgment and order passed by the High Court and even so stated in the counter affidavit filed before the High Court, it appears that the possession of the land in question could not be taken because of the operation of the stay order in Writ Petition (C) No. 14129 of 2005 and the same came to be continued by this Court till 11.02.2015. Therefore, there was a stay operating against the taking over of the possession even on the day on which the Act, 2013 came into force. However, despite the above and relying upon its earlier decision in the case of Jagjit Singh and Ors. Vs. Union of India and Ors., Writ Petition (C) No. 2806 of 2004 and 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, the High Court has allowed the said writ petition and has declared that the land acquisition proceedings initiated under the Act, 1894 with respect to the land in question is deemed to have lapsed under Section 24(2) of the Act, 2013 as the physical possession of the subject land was not taken and the compensation has not been paid.

3. The decision of this Court in the case of Pune Municipal Corporation and Anr. (supra), which has been relied upon by the High Court while passing the impugned judgment and order and the decision of the High Court in the case of Jagjeet Singh and Ors. (supra), which has also been relied upon by the High Court are just contrary to the Constitution Bench decision 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.

    366.2. 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


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