1. Appeal against High Court order declaring land acquisition lapsed under Section 24(2) of the 2013 Act due to non-payment of compensation despite possession being taken. (Para 1 , 2 )
Back
Next 
2023 Supreme(SC) 131
SUPREME COURT OF INDIA
M.R. SHAH, C.T. RAVIKUMAR, SANJAY KAROL, JJ.
Land and Building Department and Another – Appellants
Versus
Manish Sethi and Others – Respondents
Civil Appeal No. 945 of 2023, SLP (C) No. 3119 of 2023, Diary No. 28000 of 2022
Decided On : 17-02-2023
Important Points
Possession of land and payment of compensation are crucial factors in determining whether there is a lapse under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Subject
Land Law - Land Acquisition
Act Referred
Headnote
RIGHT TO FAIR COMPENSATION - Land Acquisition - Section 24(2) of the 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, particularly focusing on the deemed lapse of land acquisition proceedings. It highlights that possession of land and payment of compensation are crucial factors in determining whether there is a lapse under this section. The court also emphasizes that non-deposit of compensation in court does not result in the lapse of land acquisition proceedings.
Fact of the Case:
The High Court declared that the acquisition with respect to the land in question is deemed to have lapsed under Section 24(2) of the Act, 2013 due to non-payment or non-deposit of compensation to the landowners.Finding of the Court:
The Supreme Court held that as per its decision in Indore Development Authority vs. Manoharlal and Others, there shall be no deemed lapse under Section 24(2) if possession has been taken or if compensation has been paid.Issues:
Whether the acquisition with respect to the land in question is deemed to have lapsed under Section 24(2) due to non-payment or non-deposit of compensation.Ratio Decidendi:
The court interpreted Section 24(2) and emphasized that possession of land and payment of compensation are essential for determining a lapse under this section. It also clarified that non-deposit of compensation in court does not lead to a lapse.Final Decision:
The impugned judgment declaring a deemed lapse under Section 24(2) was quashed and set aside by the Supreme Court.Legal Category Hierarchy
Advocates appeared:
For the Appellant(s) : Mr. Atul Kumar, AOR Ms. Sweety Singh, Adv. Ms. Archana Kumari, Adv. Mr. Rahul Pandey, Adv. Mr. Rajiv Ranjan, Adv. Mr. Avs Kadyan, Adv.
For the Appellant(s) : Mr. Atul Kumar, AOR Ms. Sweety Singh, Adv. Ms. Archana Kumari, Adv. Mr. Rahul Pandey, Adv. Mr. Rajiv Ranjan, Adv. Mr. Avs Kadyan, Adv.
Table of Contents
2. Whether land acquisition lapses under Section 24(2) of the 2013 Act when possession has been taken but compensation has not been paid. (Para 2 )
3. The court applied the Constitution Bench ruling in Indore Development Authority, noting that taking possession of land precludes the deemed lapse of acquisition proceedings. (Para 3 , 4 )
4. Deemed lapse under Section 24(2) of the 2013 Act occurs only if both possession is not taken and compensation is not paid. (Para 3 )
5. Appeal allowed; High Court order quashed and set aside; no deemed lapse of land acquisition. (Para 4 , 5 )
6. When does land acquisition lapse under Section 24(2) of the 2013 Act?
Deemed lapse occurs only when authorities fail to both take possession of the land and pay compensation for five years or more prior to the commencement of the 2013 Act. (Para 3 )
7. Does the non-payment of compensation lead to lapse if possession has already been taken?
No. If possession has been taken, there is no lapse even if compensation has not been paid. (Para 3 )
8. Does the non-deposit of compensation in court result in the lapse of acquisition proceedings?
No. Non-deposit of compensation in court does not result in the lapse of land acquisition proceedings. (Para 3 )
9. What is the effect of tendering compensation under the 1894 Act on a claim of lapse?
Tendering compensation under Section 31(1) of the 1894 Act completes the obligation to pay; landowners who refuse to accept the amount cannot claim the acquisition has lapsed. (Para 3 )
10. Can Section 24(2) of the 2013 Act be used to reopen concluded land acquisition proceedings?
No. Section 24(2) applies only to proceedings pending as of January 1, 2014, and does not revive stale claims or reopen concluded proceedings. (Para 3 )
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. 6060 of 2014 by which the High Court has allowed the said 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 Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as “Act 2013”) the Land and Building Department and the Land Acquisition Collector have preferred the present appeal.
2. From the impugned judgment and order passed by the High Court, it is apparent that the High Court has allowed the said 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 relying 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 and on the ground that the compensation has not been tendered and/or paid to the landowners. However, it is required to be noted that before the High Court, it was the specific case on behalf of the appellant that the possession of the land in question was taken on 28.03.2007.
3. The decision of this Court in the case of Pune Municipal Corporation and Another (supra) has been overruled by the Constitution Bench of this Court in the case of Indore Development Authority vs. Manoharlal and Others , (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 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, 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 noti
