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2026 Supreme(Guj) 1214

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Sunita Agarwal, C.J., D.N. Ray, J.
Dhansukhbhai Maganbhai Patel & Ors. – Petitioners
Versus
State Of Gujarat & Ors. – Respondents
R/Special Civil Application No. 15473 of 2016 With Civil Application (For Joining Party) No. 1 of 2019
Decided On : 08-04-2026

Advocates Appeared:
For the Petitioner:Mr.R.S.Sanjanwala, Sr.Advocate With Mr. Aadit R Sanjanwala
For the Respondent: Mr Dhaval G Nanavati, Ms. Hetal Patel, AGP

Section 24(2) of the 2013 Act applies only to pending land acquisition proceedings. It does not apply to concluded proceedings where compensation was tendered and possession was established through legal protocol, as refusal to accept tendered compensation does not constitute a lapse of the acquisition.

Headnote:(A) Land Acquisition Act, 1894 - Sections 11, 16, 17, 31 - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24(2) - Deemed lapse of acquisition proceedings - Claim of lapse due to alleged non-payment of compensation and failure to take physical possession - Award passed prior to the commencement of the 2013 Act - Tender of compensation under the 1894 Act satisfies the requirement of payment - Refusal to receive compensation by landowner does not trigger lapse - Drawing of panchnama constitutes a valid and approved mode of taking possession - Vesting of land in the State occurs upon taking possession. (Paras 5-7, 20, 22, 30, 32)

(B) Statutory Interpretation - Section 24(2) of the 2013 Act - The section is applicable only to pending proceedings; it does not extend to concluded proceedings where the acquisition process was completed under the previous Act - (Paras 26, 32)

Facts of the case:
Petitioners challenged the acquisition of their property, arguing that the proceedings had lapsed under the 2013 Act due to the alleged non-payment of compensation and the retention of physical possession. The authorities contended that the acquisition was completed under the 1894 Act, compensation was duly tendered, and the land had vested in the State.

Findings of Court:
The court ruled that the petitioners could not claim a lapse of proceedings, as the compensation was duly tendered by the acquiring authority. The court clarified that the legal requirement to "pay" is satisfied once the compensation is tendered, regardless of any refusal by the landowner. Furthermore, after the formal drawing of a panchnama to record possession, the land vested in the State, rendering the acquisition proceedings concluded and beyond the scope of revival under the 2013 Act.

Issues: Whether the land acquisition proceedings initiated under the 1894 Act are deemed to have lapsed under Section 24(2) of the 2013 Act due to alleged non-payment of compensation and failure to take physical possession.

Ratio Decidendi: Section 24(2) of the 2013 Act does not apply to concluded proceedings. A valid tender of compensation satisfies the statutory obligation to pay, and the refusal to accept such tender does not result in a lapse of acquisition. Once possession is taken through recognized procedures such as the drawing of a panchnama, the land vests in the State, and subsequent litigation cannot reopen the matter.

Result: Petition dismissed.

Table of Content
1. establishment of the factual timeline, land acquisition notification, and compensation deposit status. (Para 1 , 2 , 3 , 4 , 8 , 12 , 13 , 14)
2. interpretation of statutory provisions of the land acquisition act 1894 regarding vesting and payment obligations. (Para 5 , 6 , 7 , 9 , 10 , 11 , 33 , 37 , 38 , 39)
3. parties' contentions regarding deemed lapse of acquisition proceedings under section 24(2) of the 2013 act. (Para 15 , 16 , 17 , 18 , 19 , 20)
4. application of the indore development authority ratio regarding non-lapse of acquisition proceedings. (Para 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 34 , 35 , 36)
5. final judicial determination dismissing the petition and address of ancillary relief requests. (Para 40 , 41 , 42 , 43)

JUDGMENT :

SUNITA AGARWAL, C.J.

1. Heard Mr.R.S.Sanjanwala, learned Senior Advocate assisted by Mr. Aadit R.Sanjanwala, learned Counsel for the petitioners and Ms.Hetal Patel, learned Assistant Government Pleader appearing for the State-respondents.

2. By means of the present petition, the petitioners herein claim of being owner of the land bearing Block No.13 of Mouje Asarma, Taluka Choryasi, Dist.Surat admeasuring 14,670 Sq.mtrs. It is stated in the writ petition that Block Nos. 1/P, 9/P, 10 to 20 and 64 of Village Asarma were reserved for Sewage Treatment Plant of the Surat Municipal Corporation. The notification for acquisition of the land in question under Section 4 of the Land Acquisition Act, 1894 (for short “the Act, 1894) was published on 28.11.2004, wherein Block Nos. 13, 14, 16, 17, 18 and 19 of Village Asarma were notified expressing intention to acquire the same. Section 6 Notification dated 19.04.2006 was published thereafter and the notice under Section 9(3)(iv) of the Act, 1894 was issued on 05.05.2006. There is no dispute about the fact that after making due inquiry, the Collector/Special Land Acquisition Officer passed an award dated 21.04.2008 under Section 11 of the Act, 1894.

3. In paragraph No.‘10’ of the writ petition, there is a mention of three notices dated 13.03.2008, 24.11.2008 and notice dated Nil No. 2 of 2015.

4. A perusal of the notice dated 24.11.2008 at Page No. ‘38’ of the paper book (the type copy whereof is appended at Page No. ‘39A’ of the paper-book) indicates that there is a reference of the notice dated 21.04.2008 issued under Section 12(2) of the Act, 1894 to the petitioners, they were required to hand over possession of the land in question on or before 15.05.2008. The notice dated 24.11.2008 was a reminder to the notice dated 21.04.2008 wherein it was directed that the petitioners shall remove their possession from the acquired land by 09.12.2008 or else the proceedings for eviction would be undertaken on 10.12.2008, at the time fixed therein.

5. At this stage, we may note Section 12 of the Land Acquisition Act, 1894, which reads as under :-

“12. Award of Collector when to be final

(1)Such award shall be filed in the Collectors office and shall, except as hereinafter provided, be final and conclusive evidence, as between the Collector and the persons interested, whether they have respectively appeared before the Collector or not, of the true area and value of the land, and the apportionment of the compensation among the persons interested.

(2)The Collector shall give immediate notice of his award to such of the persons interested as are not present personally or by their representatives when the award is made.

6. Section 12 provides that the award made by the Collector shall be final and conclusive evidence as between the Collector and the persons interested, whether they have respectively appeared before the Collector or not, as to the true area and value of the land and the apportionment of the compensation among the persons interested. Section 12(1), thus, attaches finality to the land acquisition award passed by the Collector under Section 11 of the Act, 1894. Sub section (2) of Section 12 further requires the Collector to g

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2026 Supreme(Guj) 1214

IN THE HIGH COURT OF GUJARAT AT AHMEDABADSunita Agarwal, C.J., D.N. Ray, J.Dhansukhbhai Maganbhai Patel & Ors. – PetitionersVersusState Of Gujarat & Ors. – RespondentsR/Special Civil Application No. 15473 of 2016 With Civil Application (For Joining Party) No. 1 of 2019Decided On : 08-04-2026

Cases Referred (1)