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2026 Supreme(Guj) 1135

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SUNITA AGARWAL, C.J., D.N. RAY, J.
 
Deceased Kanubhai Jodhabhai Bharvad – Petitioner 
Versus 
State Of Gujarat & Ors. – Respondents
R/Special Civil Application No. 8259 of 2017 
Decided On : 13-04-2026 

Advocates Appeared:
For the Petitioner: Mr. MD Vakil
For the Respondents: Ms Hetal Patel, AGP, Notice Served By DS

A deemed lapse of land acquisition proceedings under the new Act occurs only when there is a simultaneous failure to take possession and pay compensation. Procedural steps like drawing inquest reports constitute a valid transfer of possession, and the Act cannot be used to reopen legally concluded acquisitions.

Headnote:(A) Land Acquisition - Act of 1894 and Act of 2013 - Section 24(2) - Deemed lapse of proceedings - Applicable only in case of cumulative failure to take possession and pay compensation - Not applicable to concluded acquisitions - Requirements for establishing lapse. (Paras 3, 9, 10)

(B) Possession - Mode of taking - Inquest report or memorandum - Valid mode to vest land in the state - Physical occupation is not a prerequisite once administrative possession is recorded - No provision for divesting once vested. (Paras 5, 12, 13)

(C) Compensation - Tender of payment - Compliance with Section 31(1) of the Act of 1894 - Sufficient to prevent lapse - Challenge to concluded acquisitions - Act of 2013 does not revive stale or time-barred claims. (Paras 4, 6, 8)

Facts of the case:
A petition was filed challenging land acquisition proceedings initiated under a previous legislative regime. The petitioner alleged that the proceedings had lapsed under the provisions of a newer Act due to a lack of payment of compensation and failure by the authorities to take physical possession of the land, claiming to remain in peaceful possession of the property.

Findings of Court:
The court observed that the averments regarding non-payment and non-possession were vague and lacked evidentiary support. It held that the acquisition process had concluded according to the earlier law and that the current legal framework for a deemed lapse cannot be invoked to revive stagnant or finalized proceedings. The administrative records indicated that the requirements for vesting had been fulfilled, and the land remained with the state free from encumbrances.

Issues: Whether land acquisition proceedings initiated under the older Act could be deemed to have lapsed under the newer legislation due to unsubstantiated claims of non-possession and non-payment of compensation.

Ratio Decidendi: The court concluded that a deemed lapse under the newer law requires a proved dual inaction: failure to take possession and failure to pay compensation. Since the administrative procedures for possession were validated and the tender of compensation was consistent with the statutory mandate of the older Act, the lands vested completely in the state. The newer legislative provisions are curative for pending proceedings and are not intended to allow the reopening of concluded, time-barred acquisitions.

Result: Petition dismissed.

Table of Content
1. summary of land acquisition facts and specific prayers. (Para 1 , 7)
2. interpreting section 24(2) of the 2013 act per indore development authority. (Para 2 , 3 , 4 , 5 , 6 , 10)
3. application of established law to dismiss stale claims for lapse of proceedings. (Para 8 , 9 , 11 , 12 , 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 v.s. Manoharlal and Ors. [(2020) 8 SCC 129] and the decision of three judge bench in Pune Municipal Corporation and Anr. v.s. 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 “paid” in the main part of Section 24(2) of the 2013 Act does not include a deposit of compensation in court. The consequence of non-deposit is provided in the proviso to Section 24(2) in case it has not been deposited with respect to majority of landholdings then all beneficiaries (landowners) as on the date of notification for lan

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