IMPORTANT POINT
Lapse of land acquisition proceeding – Provisions of Section 24(2) of Act, 2013 providing for deemed lapse of proceedings are applicable in case authorities have failed due to their inaction to take possession and pay compensation for five years or more before 2013 Act came into force.

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. 12118 of 2015, by which, the High Court has allowed the said writ petition and has declared that the acquisition proceedings initiated under the Land Acquisition Act, 1894 with regard to the subject land are deemed to have lapsed and that the original writ petitioners are entitled to the compensation as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as “Act, 2013”), Secretary, Land and Building Department, NCT of Delhi and Land Acquisition Collector have preferred the present appeal.

2. From the impugned judgment and order passed by the High Court and even as per the counter affidavit(s) filed by LAC (Land Acquisition Collector) and Irrigation and Flood Control Department – beneficiary of the subject land before the High Court, the possession of the lands in question had been taken over and the land has been put to use for construction of Bankner Link Drain. From the impugned judgment and order, it appears that the original writ petitioners as such never disputed the case on behalf of the original respondents that the physical possession of the subject land has been taken over and the land has been put to use. That the original writ petitioners restricted the prayer for grant of compensation as per the Act, 2013. However, thereafter, relying upon the earlier decision of this Court in the case of Pune Municipal Corporation and Anr. Vs. Harakchand Misirimal Solanki and Ors., reported in (2014) 3 SCC 183, the impugned judgment and order has been passed by the High Court declaring that the acquisition proceedings with regard to the subject land are deemed to have lapsed and therefore, the original writ petitioners shall be entitled to the compensation as per the Act, 2013 on the ground that the compensation has not been paid. However, the decision of this court in the case of Pune Municipal Corporation and Anr. (supra) has been overruled by the Constitution Bench of this Court in the case of Indore Development Authority Vs. Manoharlal and Ors., reported in (2020) 8 SCC 129 and 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) 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