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2026 Supreme(Guj) 1193

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SUNITA AGARWAL, C.J. D.N. RAY, J.
 
Deceased Chatrubhai Fakirbhai – Petitioner 
Versus 
State Of Gujarat & Ors. – Respondents
R/Special Civil Application No. 9308 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

Section 24(2) of the 2013 Act does not revive concluded land acquisition proceedings. Once possession is taken or compensation is tendered under the previous Act, the acquisition is complete, and a deemed lapse cannot be claimed despite any alleged procedural inaction.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4, 6, 11, 12(2), 16, 31 - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24(2) - Deemed lapse of proceedings - Failure to take possession or pay compensation for five years or more - Once award is passed and possession taken, land vests in the State - Tender of compensation amounts to payment - Deemed lapse not applicable once concluded proceedings are finalized - Stale and time-barred claims cannot be revived. (Paras 2, 3, 10, 11, 13)

(B) Stale claims - Section 24(2) of the 2013 Act is a transitory provision for pending proceedings - Does not provide a new cause of action for settled acquisitions - (Para 9)

Facts of the case:
The petitioner challenged an land acquisition process initiated under initial notifications from decades prior, seeking a declaration of lapse under the provisions of the 2013 Act. The petitioner asserted that compensation was never paid and physical possession was never taken by the acquiring authorities.

Findings of Court:
The court noted that the assertions regarding non-payment and non-possession were vague and lacked evidentiary support. Citing established legal principles, the court observed that where the authorities satisfy the statutory requirements through the drawing of an inquest document or tendering compensation, the land vests legally with the State.

Issues: Whether land acquisition proceedings lapse under the 2013 Act due to alleged non-payment of compensation or non-delivery of physical possession, and whether previously concluded acquisitions can be reopened via new statutory provisions.

Ratio Decidendi: The court held that section 24(2) of the 2013 Act is not intended to unsettle concluded land acquisitions. Where compensation is tendered and possession is taken through recognized legal modes, the acquisition is considered complete, and a claim for deemed lapse based on procedural inaction from earlier years is legally untenable.

Result: Petition dismissed.

Table of Content
1. historical facts and scope of land acquisition challenge. (Para 1 , 7)
2. ratio of indore development authority on section 24(2) lapse. (Para 2 , 3 , 4 , 5 , 6)
3. application of section 24(2) to existing acquisition proceedings. (Para 8 , 9 , 10 , 11 , 12 , 13)
4. dismissal of petition due to non-revival of stale claims. (Para 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 “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

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