DELHI DEVELOPMENT AUTHORITYversusAMIT JAIN & ORS
- Citation
- 2023 INSC 169
- Decided
- 24 February 2023
- Disposal
- Appeal(s) allowed
- Bench
- M R SHAH
Holding
Section 24(2) of the 2013 Act deems acquisition proceedings to lapse only when both possession of the land and payment of compensation are absent for five years prior to the Act’s commencement; therefore, where possession has been taken (even if compensation remains unpaid), the acquisition does not lapse.
Summary
The Delhi Development Authority (DDA) appealed a Delhi High Court order that declared the acquisition of certain lands as deemed to have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 because compensation had not been paid. The land in question had been physically taken over by the government on 29‑01‑2010 through punchnama/possession proceedings, except for a 3‑biswa portion that remained unpossessed due to built‑up. The Supreme Court examined whether possession alone, without payment of compensation, triggers a lapse under Section 24(2). Relying on Indore Development Authority v. Manoharlal (2020) and interpreting the word “or” in the statute as requiring both possession and compensation to be absent, the Court held that the acquisition does not lapse when possession has been taken even if compensation is pending. Consequently, the High Court’s declaration of lapse was set aside and the appeal was allowed, leaving the acquisition proceedings intact.
Issues considered
- Whether acquisition is deemed to have lapsed under Section 24(2) of the 2013 Act when possession has been taken but compensation has not been paid.
- Whether taking physical possession through a punchnama/possession proceeding satisfies the statutory requirement of possession for Section 24(2).
- How the word ‘or’ in Section 24(2) should be interpreted – as ‘and’/‘nor’ requiring both possession and compensation to be absent.
- Whether the High Court erred in applying the Pune Municipal Corporation decision to deem the acquisition lapsed.
Legislation cited
- Land Acquisition Act, 1894s. 16, s. 31, s. 34
- Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013s. 24(1)(a), s. 24(1)(b), s. 24(2)
Subjects
Judgment
[2023] 3 S.C.R. 91 91
DELHI DEVELOPMENT AUTHORITY A
v.
AMIT JAIN & ORS.
(Civil Appeal No. 1360 of 2023)
FEBRUARY 24, 2023 B
[M. R. SHAH AND C. T. RAVIKUMAR, JJ.]
Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 – s.24(2) –
High Court allowed the writ petition and declared that the entire
C
acquisition with respect to the suit land is deemed to have lapsed u/
s.24(2) – It was the specific case on behalf of the Land Acquisition
Collector (LAC) that the physical possession of the lands in question
was duly taken over by the Government except the 3 biswa land
comprised in Khasra No. 17/1/1 which was not taken due to built-
up – Held: – Original writ petitioners disputed the actual taking D
over of possession and submitted that the possession was taken
over by drawing proceedings – As held by the Constitution Bench
in Indore Development Authority v. Manoharlal and Ors. reported as
[2020] 3 SCR 1, taking over the physical possession by drawing the
punchnama/possession proceedings can be said to be sufficient
E
compliance – Thus, applying the law laid down therein and
considering the fact that except the aforesaid 3 biswa land, the
possession of the other lands in question was taken over by the
Government, there shall be no deemed lapse with respect to the
entire acquisition of the lands in question u/s.24(2) – Impugned
judgment set aside – Land Acquisition Act, 1894. F
Indore Development Authority vs. Manoharlal and Ors.
(2020) 8 SCC 129 : [2020] 3 SCR 1 – followed.
Pune Municipal Corporation and Anr. vs. Harakchand
Misirimal Solanki and Ors. (2014) 3 SCC 183 : [2014]
1 SCR 783 – referred to. G
Case Law Reference
[2014] 1 SCR 783 referred to Para 2
[2020] 3 SCR 1 followed Para 3
H
91
92 SUPREME COURT REPORTS [2023] 3 S.C.R.
A CIVIL APPELLATE JURISDICTION : Civil Appeal No.1360
of 2023.
From the Judgment and Order dated 25.07.2017 of the High Court
of Delhi at New Delhi in WP (C) No.5061 of 2016.
Nitin Mishra, Ishaan Sharma, Advs. for the Appellant.
B Ankit Kumar, Rishibah Pandey, Ms. Manju Jetley, Ms. Sujeeta
Srivastava, Advs. for the Respondents.
The Judgment of the Court was delivered by
M. R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment
C and order passed by the High Court of Delhi at New Delhi in Writ Petition
(C) No. 5061 of 2016, by which, the High Court has allowed the said
writ petition and has declared that the acquisition of suit land measuring
3 bighas and 18 biswas in Khasra Nos. 10/20/2/1 (2-00) and 21/1 (1-18)
and 17/1 (1-9) and land measuring 1 bigha and 9 biswas in Khasra No.
D 17/1/1 (2-01) vide award No. 04/2008-09 dated 31.10.2008 is deemed to
have lapsed by virtue of Section 24(2) of the Right to Fair Compensation
and Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013 (hereinafter referred to as “Act, 2013”), the Delhi Development
Authority has preferred the present appeal.
2. From the impugned judgment and order passed by the High
E
Court and from the counter affidavit filed by the Govt. of Delhi through
LAC before the High Court, it appears that it was the specific case on
behalf of the LAC that the physical possession of the property/land
bearing Khasra Nos. 17/1/1 min (1-18), 10/20/2/1 (2-0), 21/1 (1-18) was
duly taken over by the Government on 29.01.2010. However, remaining
F 3 biswa land comprised in Khasra No. 17/1/1 was not taken over due to
built- up. Despite the above and thereafter following the earlier decision
of this Court in the case of Pune Municipal Corporation and Anr.
Vs. Harakchand Misirimal Solanki and Ors., (2014) 3 SCC 183,
on the ground that the compensation with respect to the lands in question
is not paid/tendered to the land owners, the High Court has allowed the
G
writ petition and has declared that the entire acquisition with respect to
the land measuring 3 bighas and 18 biswas in Khasra Nos. 10/20/2/1 (2-
00) and 21/1 (1-18) and 17/1 (1-9) and land measuring 1 bigha and 9
biswas in Khasra No. 17/1/1 (2-01) is deemed to have lapsed under
Section 24(2) of the Act, 2013.
H
DELHI DEVELOPMENT AUTHORITY v. AMIT JAIN & ORS. 93
[M. R. SHAH, J.]
3. Learned counsel appearing on behalf of the original writ A
petitioners disputed the actual taking over of possession and submitted
that the possession was taken over by drawing proceedings. However,
as observed and held by this Court in the case of Indore Development
Authority Vs. Manoharlal and Ors., (2020) 8 SCC 129 taking over
the physical possession by drawing the punchnama/possession
B
proceedings can be said to be sufficient compliance. Therefore, except
the remaining 3 biswa land comprised in Khasra No. 17/1/1 which was
not taken over due to built-up, the possession of the other lands in question
were taken by the Government on 29.01.2010. Under the circumstances,
the acquisition with respect to the entire lands in question could not have
been declared as deemed lapse under Section 24(2) of the Act, 2013. C
4. In the case of Indore Development Authority (supra) in
paragraph 366, the Constitution Bench of this Court has observed and
held as under:-
“366. In view of the aforesaid discussion, we answer the
questions as under: D
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.
E
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.
F
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 G
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.
H
94 SUPREME COURT REPORTS [2023] 3 S.C.R.
A 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 land acquisition under Section 4 of the
B
1894 Act shall be entitled to compensation in accordance with the
provisions of the 2013 Act. In case the obligation under Section
31 of the Land Acquisition Act, 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
C acquisition proceedings. In case of non-deposit with respect to
the majority of holdings for five years or more, compensation under
the 2013 Act has to be paid to the “landowners” as on the date of
notification for land acquisition under Section 4 of the 1894 Act.
366.5. In case a person has been tendered the
D compensation as provided under Section 31(1) of the 1894 Act, 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). The landowners who had refused to accept
compensation or who sought reference for higher compensation,
E cannot claim that the acquisition proceedings had lapsed under
Section 24(2) of the 2013 Act.
366.6. The proviso to Section 24(2) of the 2013 Act is to
be treated as part of Section 24(2), not part of Section 24(1)(b).
F 366.7. The mode of taking possession under the 1894 Act
and as contemplated under Section 24(2) is by drawing of inquest
report/memorandum. Once award has been passed on taking
possession under Section 16 of the 1894 Act, the land vests in
State there is no divesting provided under Section 24(2) of the
2013 Act, as once possession has been taken there is no lapse
G under Section 24(2).
366.8. The provisions of Section 24(2) providing for a
deemed lapse of proceedings are applicable in case authorities
have failed due to their inaction to take possession and pay
compensation for five years or more before the 2013 Act came
H
DELHI DEVELOPMENT AUTHORITY v. AMIT JAIN & ORS. 95
[M. R. SHAH, J.]
into force, in a proceeding for land acquisition pending with the A
authority concerned as on 1-1-2014. The period of subsistence of
interim orders passed by court has to be excluded in the
computation of five years.
366.9. Section 24(2) of the 2013 Act does not give rise to
new cause of action to question the legality of concluded B
proceedings of land acquisition. Section 24 applies to a proceeding
pending on the date of enforcement of the 2013 Act i.e. 1-1-2014.
It does not revive stale and time-barred claims and does not reopen
concluded proceedings nor allow landowners to question the
legality of mode of taking possession to reopen proceedings or
mode of deposit of compensation in the treasury instead of court C
to invalidate acquisition.”
5. Applying the law laid down by this Court to the facts of the
case on hand and considering the fact that except the 3 biswa land
comprised in Khasra No. 17/1/1 which was not taken due to built- up,
the possession of the other lands in question was taken over by the D
Government on 29.01.2010, there shall be no deemed lapse with respect
to the entire acquisition of the lands in question under Section 24(2) of
the Act, 2013. Under the circumstances, the impugned judgment and
order passed by the High Court is unsustainable and the same deserves
to be quashed and set aside and is accordingly quashed and set aside. E
Present appeal is accordingly allowed. No costs.
Pending applications, if any, also stand disposed of.
Divya Pandey Appeal allowed.
(Assisted by : Abhishek Agnihotri and Roopanshi Virang, LCRAs) F
G
H
Search Indian case law
Ask in plain English, not just keywords. 25,000 AI words free, no card.