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2023 Supreme(SC) 155

SUPREME COURT OF INDIA
M.R. SHAH, C.T. RAVIKUMAR, JJ.
Delhi Development Authority – Appellant
Versus
Rajender Singh and Others – Respondents
Civil Appeal No. 1301 of 2023, SLP (C) No. 3854 of 2023, Diary No. 7205 of 2022
Decided On : 24-02-2023

Advocates appeared:
For the Appellant(s) : Ms. Manika Tripathy, AOR Mr. Ashutosh Kaushik, Adv. Mr. Manish Vashist, Adv.
For the Respondent(s): Ms. Supriya Juneja, AOR

Headnote:Land Acquisition - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Section 24(2)) - Summary:

Fact of the Case:

The Delhi Development Authority appealed against the High Court's decision declaring the acquisition of land as lapsed under Section 24(2) of the Act due to non-payment of compensation.

Finding of the Court:

The Supreme Court held that as per the law laid down in Indore Development Authority vs. Manoharlal and Others, for deemed lapse under Section 24(2) of the Act, both conditions of possession not taken and compensation not tendered/paid must be satisfied. If one condition is not met, there shall be no deemed lapse under the Act.

Issues:

Whether the acquisition should be deemed to have lapsed under Section 24(2) due to non-payment of compensation.

Ratio Decidendi:

The court emphasized that both conditions of possession not taken and compensation not tendered/paid must be satisfied for a deemed lapse under Section 24(2).

Final Decision:

The High Court's decision was quashed and set aside, ruling that there shall be no deemed lapse of the acquisition with respect to the lands in question.

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. 3561 of 2015, 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 Delhi Development Authority has preferred the present appeal.

2. Having heard learned counsel appearing on behalf of the respective parties and having gone through the impugned judgment and order passed by the High Court and even the counter affidavit filed before the High Court by the Delhi Development Authority wherein it was the specific case on behalf of the respondent therein that the possession of lands in question was taken over and handed over to the beneficiary department on 23.09.1981 and the compensation with respect to the said lands was sent in RD due to dispute.

3. However, thereafter despite the above and relying 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, the High Court has declared that the acquisition with respect to the lands in question is deemed to have lapsed under Section 24(2) of the Act, 2013 solely on the ground that the compensation was not paid in the manner known to law to the land owners.

3.1 The view taken by the High Court is just contrary to the law laid down by this Court 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, compensation under the 2013 Act has to be paid to the “landowners” as on the date of notification for land acquisition under Section 4 of the 1894 Act.

    366.5.


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