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2026 Supreme(Guj) 1200

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SUNITA AGARWAL, C.J., D.N. RAY, J.
 
Deceased Jivrajbhai Karabhai - Petitioner 
Versus 
State Of Gujarat & Ors. – Respondents
R/Special Civil Application No. 9313 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

Acquisition proceedings do not lapse under Section 24(2) of the 2013 Act if either compensation was tendered as per statutory requirements or possession was taken through a panchnama, as the provision does not revive concluded proceedings or settle stale claims.

Headnote:(A) Land Acquisition - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24(2) - Land Acquisition Act, 1894 - Sections 11, 12(2), 16 - Deemed lapse of acquisition proceedings - Held, deemed lapse under Section 24(2) is only attracted where both, physical possession of the land has not been taken and compensation has not been paid - If either condition is met, no lapse occurs - Tender of compensation is sufficient for fulfillment of obligation even if refused by the landowner. (Paras 2, 3, 4, 10)

(B) Land Acquisition - Mode of taking possession - Drawing of inquest report or panchnama is an approved mode of taking possession in terms of statutory provisions - Once award is passed and possession is taken, land vests absolutely with the state - Section 24(2) does not empower divesting of land once vested in the state. (Paras 5, 12, 13)

(C) Civil Procedure - Stale claims - Section 24(2) of the 2013 Act is a transitory provision for pending proceedings as on the date of enforcement - It does not allow for the revival of concluded or time-barred claims to challenge the legality of historical acquisition proceedings. (Paras 6, 8, 14)

Facts of the case:
The petitioner challenged an acquisition proceeding initiated and concluded under an earlier statute, seeking to declare the proceedings as lapsed under the transitory provisions of the new land acquisition legislation. The petitioner contended that compensation was neither paid nor deposited and that physical possession of the land remained with them. The authorities maintained that the acquisition had concluded long ago following standard procedure.

Findings of Court:
The Court held that the petitioner’s assertions regarding non-payment and non-possession were vague. Reaffirming established legal principles, the Court ruled that when compensation is tendered or possession is taken via a memorandum or panchnama, the acquisition remains valid. Since the acquisition had already concluded, the provisions of the new act regarding deemed lapse could not be invoked to re-open closed matters.

Issues: Whether the land acquisition proceedings had lapsed due to the failure to pay compensation or take physical possession under the relevant statutory provisions.

Ratio Decidendi: Section 24(2) is not a mechanism to re-open concluded acquisition proceedings. Where the state has fulfilled its obligation by tendering compensation or has taken possession through documented procedures, the acquisition stands finalized and cannot be declared as lapsed strictly on the basis of claims of non-possession or non-remittance of funds.

Result: Petition dismissed.

Table of Content
1. the background of the land acquisition dispute and the claims made by the petitioner regarding section 24(2) of the 2013 act. (Para 1 , 7)
2. conditions for deemed lapse of land acquisition under section 24(2) of the 2013 act as defined in indore development authority. (Para 2 , 3 , 4 , 5 , 6 , 9 , 10)
3. analysis of the petition's merits based on the concluded acquisition proceedings and lack of evidence for lapse. (Para 8 , 11 , 12 , 13)
4. final dismissal of the petition due to the absence of valid grounds for reopening concluded acquisition proceedings. (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

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