SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Guj) 1198

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SUNITA AGARWAL, C.J., D.N. RAY, J.
 
Mahendrabhai, S/o. Deceased Prabhubhai Pujabhai Fakirbhai – Petitioner 
Versus 
State Of Gujarat & Ors. – Respondents
R/Special Civil Application No. 9310 of 2017 
Decided On : 13-04-2026 

Advocates Appeared:
For the Petitioner: Mr MD Vakil
For the Respondents: MS Hetal Patel, AGP, Mr HS Munshaw

Deemed lapse of land acquisition proceedings under the 2013 Act requires proven non-payment of compensation and non-taking of possession. Tender of compensation or formal drawing of a panchnama for possession bars such a claim, and provisions cannot be used to revive stale or concluded acquisition proceedings.

Headnote:(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24(2) - Land Acquisition Act, 1894 - Sections 11, 12, 16, 31 - Deemed lapse of proceedings - Scope and applicability - Deemed lapse of land acquisition proceedings under Section 24(2) of the 2013 Act is permitted only where there is a failure to take possession and a failure to pay compensation - Tender of compensation under Section 31(1) of the 1894 Act is sufficient to constitute payment - Drawing of an inquest report or a panchnama constitutes valid taking of possession - Once land vests with the state, there is no provision for divesting under the 2013 Act. (Paras 3, 4, 5, 10, 11)

(B) Land Acquisition - Concluded proceedings - Limitation of Section 24(2) of the 2013 Act - Provision is a transitory one and does not revive stale or time-barred claims - Vague and unsubstantiated averments regarding non-payment and non-possession cannot be invoked to reopen long-concluded acquisition proceedings. (Paras 6, 8, 14)

Facts of the case:
The petitioner challenged the validity of land acquisition proceedings initialized under the old Act, alleging that compensation was neither paid nor deposited and that the state had failed to take physical possession of the land. The petitioner sought a declaration that the proceedings had lapsed in accordance with the 2013 Act.

Findings of Court:
The court determined that the petitioner's assertions of non-payment and lack of possession were vague and lacked factual corroboration. The court observed that the petitioner failed to address the statutory notices served during the acquisition process. As the land had already vested in the state through previous acquisition proceedings, it was concluded that the claim for deemed lapse could not be sustained.

Issues: Whether the land acquisition proceedings had undergone a deemed lapse under Section 24(2) of the 2013 Act due to the alleged failure of the authorities to pay compensation and take possession.

Ratio Decidendi: The court affirmed that Section 24(2) of the 2013 Act is not a mechanism to reopen concluded acquisitions. Since the law recognizes the drawing of a panchnama as valid possession and the tender of compensation as fulfillment of the obligation to pay, the requirements for a deemed lapse were not satisfied in this instance.

Result: Petition dismissed.

Table of Content
1. applicability of the constitution bench decision in indore development authority on section 24(2) of the 2013 act. (Para 1 , 2)
2. conditions for deemed lapse under section 24(2) of the 2013 act require both non-payment and non-possession. (Para 3 , 4 , 5 , 6 , 10)
3. the burden of proof and requirement for specific, non-vague pleadings when challenging concluded acquisitions. (Para 7 , 8)
4. interpretation of the 1894 act transition and the validity of panchnama/inquest as evidence of possession. (Para 9 , 11 , 12)
5. finality of concluded acquisition proceedings and the prohibition on reviving stale claims. (Para 13 , 14)

ORDER :

SUNITA AGARWAL, C.J.

1. We may note, at the outset, that at the time when the issue pertaining to the scope of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as ‘the Act, 2013’) was subject matter of consideration before the Constitution Bench of the Apex Court in Indore Development Authority vs. Manoharlal and Ors. [(2020) 8 SCC 129] and the decision of three judge bench in Pune Municipal Corporation and Anr. vs. Harakchand Misirimal Solanki and Ors. [2014 (3) SCC 183] was holding the field, the present petition is filed with the following prayers:-

“(A) Be pleased to allow this petition

(B) Be pleased to issue a writ of mandamus or any other appropriate writ order, or direction in the nature of mandamus for directing the respondents authorities to set-aside and to struck down the Notification, declaration and award passed in L.A.Q. case No. 2/96 on dt. 14-06-2000 in respect of agricultural Land bearing survey No. 523/ Paikee of admeasuring 0-03-92 sq. mtr of acquired Land situate at Vill. Bhandariya Tal. Bhavnagar, Dist. Bhavnagar and also directed to the respondents for making the procedure for lapse of the Land Acquision proceeding initiated under the said award u/s 11 of the Act in LAQ case No 2/96 in respect of acquired Land in Question of petitioner in the interest of justice and in terms of section 24(2) of the New Act, 2013.

(C) During the pendency of this petition, be pleased to restrain the respondents authorities or any other Private agency to take the physical possession of the acquired Lands in Question from the Law full custody of the petitioner.

(D) Be pleased to grant other and further relief as deems fits and proper in the interest of justice.”

2. The Constitution Bench in Indore Development Authority (supra) has rendered a decision on 06.03.2020 overruling Pune Municipal Corporation (supra) and all other decisions wherein Pune Municipal Corporation (supra) has been followed. The ratio of the decision in Indore Development Authority (supra) summarized in Paragraph No. ‘366’ reads 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 “p

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top