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2026 Supreme(HP) 446

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA.
G. S. Sandhawalia, C.J., Bipin C. Negi, J.
Council of Scientific and Industrial Research (CSIR) & Anr. - Appellants
Versus
State of H. P. & Ors. - Respondents
LPA No. 197 of 2016 a/w LPA Nos. 198 to 206 of 2016
Decided On : 28-02-2026

Advocates Appeared:
For the Appellant :Mr. Het Ram Thakur, Advocate
For the Respondent:Mr. Rakesh Dhaulta, Additional Advocate General, for Mr. N. K. Sood, Senior Advocate with Mr. Karan Sharma, Advocate

No lapse of acquisition under Section 24(2) if compensation paid despite no possession; 30-year delay perfects adverse possession title, barring enforcement.

Headnote:(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24(2) - Land Acquisition Act, 1894 - Section 16 - Word ‘or’ between possession and compensation in Section 24(2) read as ‘and’ or ‘nor’; no deemed lapse if compensation paid/deposited even if possession not taken - Single Judge's reliance on prior judgments holding lapse for non-taking of possession overruled by subsequent Constitution Bench decision holding twin conditions cumulative. (Paras 4-6)

(B) Limitation Act, 1963 - Article 65 - Adverse possession - Open, hostile possession for over 12 years perfects title, usable as sword or shield; suit for declaration of ownership maintainable - Acquiring authority's unexplained 30-year delay post-award, failed suit for possession (dismissed on maintainability, no appeal), belated possession applications under Section 16 rejected as time-barred and civil nature - Writs challenging rejections not maintainable. (Paras 7-24)

Facts of the case:
Land acquired vide 1966 notification; award passed 08.07.1966 with compensation deposited/paid to owners/occupants; possession directed within 6 weeks not taken; scheme dropped, partial handover 1978; occupants continued possession; oral vacation request 1984; possession suit filed 29.04.1989 dismissed 30.04.1996; no appeal; Section 16 applications 2003/2007 rejected 28.05.2007, 18.06.2007, 16.11.2010 on delay/limitation/prior civil decree; writs dismissed 22.09.2016 on Section 24(2) lapse; appeals thereagainst.

Findings of Court:
No lapse under Section 24(2); but respondents perfected title by adverse possession over 30 years; appellants time-barred from enforcing acquisition/claiming possession.

Issues: Whether proceedings lapsed under Section 24(2) for non-taking possession; entitlement to mandamus directing possession despite long delay; validity of rejection orders.

Ratio Decidendi: Section 24(2) requires both possession untaken and compensation unpaid for lapse; prolonged inaction post-acquisition vests perfect title in possessors via adverse possession, barring delayed claims even if acquisition valid. Result : Appeals dismissed; writ petitions remain dismissed.

Table of Content
1. single judge held proceedings lapsed under section 24(2). (Para 1 , 2 , 3)
2. indore overrules; compensation paid prevents section 24(2) lapse. (Para 4 , 5 , 6)
3. post-award delay allowed adverse possession perfection. (Para 7 , 8 , 9 , 10)
4. suit and possession applications dismissed for delay. (Para 11 , 12 , 13 , 14 , 15 , 16)
5. article 65 bars possession claim after 12-year adverse possession. (Para 17 , 18 , 19 , 20)
6. adverse possession perfects title; usable as sword. (Para 21 , 22 , 23)
7. appeals dismissed upholding adverse possession. (Para 24 , 25)

JUDGMENT :

G. S. Sandhawalia, C.J.

The present set of appeals are directed against the common order of the learned Single Judge whereby 10 writ petitions lead case whereof was CWP No. 85 of 2008, titled as Council of Scientific and Industrial Research (CSIR) & Anr. vs. State of Himachal Pradesh & Ors., filed by the present appellants, were dismissed on 22.09.2016.

2. The learned Single Judge dismissed the writ petitions by placing reliance upon Section 24 of The RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT , 2013, which came into force on 01.01.2014, by holding that since the award had been passed on 08.07.1966 under the LAND ACQUISITION ACT , 1894, but the possession had not been taken, therefore, by virtue of Section 24 (2) of the LAND ACQUISITION ACT , 2013 the proceedings as such had lapsed by application of law as one of the conditions in the said proviso had not been fulfilled.

3. Reliance was placed upon the judgments of the Apex Court in Velaxan Kumar vs. Union of India & Ors., (2015) 4 SCC 325; The Working Friends Cooperative House Building Society Ltd. vs. The State of Punjab & Ors. JT 2015 (9) SC 357; Pawan Kumar Aggarwal vs. State of Punjab & Ors. JT 2016 (4) SC 178; DDA vs. Raman Grover & Ors. JT 2016(5) SC 196; Shashi Gupta & Anr. vs. State of Haryana & Ors. JT 2016 (5) SC 196 and Delhi Development Authority vs. Reena Suri & Ors. JT 2016 (5) SC 291, and it was accordingly held that once the Apex Court as such had decided the legal issue and the LAND ACQUISITION ACT , 1894 was replaced with RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT , 2013, the provisions of Section 24 (2) of the Act came to the rescue of the private respondents and resultantly interference was not done in the orders passed by the Collector on 28.05.2007, 18.06.2007 and 16.11.2010.

4. Counsel for the appellants has argued on the strength of the judgment of the Constitution Bench of the Apex Court in Indore Development Authority vs. Manohar Lal & Ors., (2020) 8 SCC 129, that subsequently the judgment in Velaxan Kumar’s case (supra) was specifically over-ruled and it has been held that compensation if has been deposited, then there is no lapse of proceedings and both the conditions have to be satisfied and the word ‘or’ has to be read as ‘and’ and not ‘or’ and the twin requirements are cumulative and conjunctive in nature.

5. Reliance can be placed upon paragraph 366.3, wherein it has been specifically held that if compensation has been paid and the possession has not been taken, then there is no lapse. The said paragraph reads as under:-

“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 Act of 2013 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.”

6. In such circumstances, we are of the considered opinion that the view taken by the learned Single Judge as such is not liable to be sustained since the

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