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2022 Supreme(P&H) 1569

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Ravi Shanker Jha, Arun Palli, JJ.
Dharam Parkash & Ors. – Appellants
Versus
State Of Haryana & Ors. – Respondents
Civil Writ Petition No. 1956 of 2015 (O&M)
Decided On : 31-08-2022

Advocates appeared:
Mr. S.R.Hooda, Advocate, for the Appellant; Mr. Ankur Mittal, Addl. Advocate General, Haryana with Mr. Saurabh Mago, Assistant Advocate General Haryana and Ms. Kushaldeep Kaur Manchanda, Advocate, for the Respondent.

The main legal point established in the judgment is the interpretation of Section 24(2) of the Act of 2013, emphasizing the conditions for lapsing of acquisition proceedings and the essentiality of the land for the public purpose.

Headnote:

Land Acquisition - Lapse of Proceedings - Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013 - Land Acquisition Act, 1894 - Section 4, 6, 16 - The court discussed the interpretation of Section 24(2) of the Act of 2013 and clarified the conditions for lapsing of acquisition proceedings. It emphasized the requirement for both physical possession and payment of compensation to be fulfilled for lapsing to occur. The court also highlighted the mode of taking possession, the obligation to pay compensation, and the essentiality of the land for achieving the public purpose.

Fact of the Case:

The petitioners claimed that the acquisition proceedings for their land had lapsed under Section 24(2) of the Act of 2013 as the physical possession was not taken, and compensation was not paid. The respondents argued that both conditions were fulfilled, and the land was essential for the public purpose of development and utilization as Residential and Commercial Sector 58, Sonipat.

Finding of the Court:

The court found that the physical possession of the land was duly taken, and the compensation amount was tendered, discharging the state's obligation. It held that none of the conditions prescribed in Section 24(2) of the Act of 2013 were fulfilled, and the land was essential for achieving the public purpose. Therefore, the petition was dismissed.

Issues: The issues revolved around the interpretation of Section 24(2) of the Act of 2013, the fulfillment of conditions for lapsing of acquisition proceedings, and the essentiality of the land for the public purpose.

Ratio Decidendi: The court clarified the conditions for lapsing of acquisition proceedings under Section 24(2) of the Act of 2013, emphasizing the need for both physical possession and payment of compensation to be fulfilled. It also highlighted the mode of taking possession, the obligation to pay compensation, and the essentiality of the land for achieving the public purpose.

Final Decision: The court dismissed the petition, holding that the state had fulfilled its obligations regarding physical possession and compensation, and the land was essential for achieving the public purpose.

JUDGMENT

Ravi Shanker Jha, C.J. - The instant petition has been filed claiming that the acquisition proceedings carried out vide the notifications issued under Section 4 & 6 of the Land Acquisition Act, 1894 dated 29.11.2001 and 28.11.2002 respectively; followed by the award dated 24.11.2004, thereby acquiring the land for a public purpose, namely for the development and utilization of land as Residential, and Commercial Sector 58 Sonepat; qua the land of the petitioners comprised in Khasra No. 75//11/3 (3-3), 20(7-12) and 63//16(7-11) total measuring 18K 06M situated within the Revenue Estate of Village Nangal Kalan, Sub Tehsil Rai, District Sonepat; has lapsed in view of the provisions of Section 24 (2) of the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013.

2. Owing to the controversy erupted as regards the interpretation of the provision of Section 24 (2) of the Act of 2013, like many other writ petitions, the proceedings in the instant petition were kept in abeyance awaiting the decision of the Supreme Court of India. The controversy was finally put at rest by the Constitution Bench of the Supreme Court of India in Indore Development Authority Vs. Manohar Lal and others AIR 2020 SC 1496 and penultimate paragraphs thereof are reproduced here in below:-

    '....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 Act of 2013, there is no lapse of proceedings. Compensation has to be determined under the provisions ofAct of2013.

    2. In case the award has been passed within the window period offive 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 Act of 2013 under the Act of1894 as if it has not been repealed.

    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.

    4. The expression 'paid' in the main part of Section 24(2) of the Act of 2013 does not include a deposit of compensation in court. The consequence of non-deposit is provided in proviso to Section 24(2) in case it has not been deposited with respect to majority of land holdings then all beneficiaries (landowners) as on the date of notification for land acquisition under Section 4 of the Act of 1894 shall be entitled to compensation in accordance with the provisions of the Act of2013. In case the obligation under Section 31 of the Land Acquisition Act of 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 Act of 2013 has to be paid to the "landowners" as on the date of notification for land acquisition under Section 4 of the Act of 1894.

    5. In case a person has been tendered the compensation as provided under Section 31(1) of the Act of 1894, it is not open to him to claim that acquisition has lapsed under Section 24(2) due to non-payment or non-deposit of compensation in court. The obligation to pay is complete by tendering the amount under Section 31(1). Land owners who had refused to accept compensation or who sought reference for higher compensation, cannot claim that the acquisition proceedings had lapsed under Section 24(2) of the Act of 2013.

    6. The proviso to Section 24(2) of the Act of 2013 is to

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