DELHI DEVELOPMENT AUTHORITYversusCHANDERMAL & ORS.
- Citation
- 2022 INSC 1290
- Decided
- 15 December 2022
- Disposal
- Appeal(s) allowed
- Bench
- M R SHAH
Holding
Acquisition does not lapse under Section 24(2) of the 2013 Act when possession has been taken, irrespective of pending compensation, and the High Court's order is set aside.
Summary
The Delhi Development Authority (DDA) and the Land Acquisition Collector (LAC) appealed a Delhi High Court order that declared the land acquisition of certain parcels 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 tendered. The High Court had accepted that possession of the land was taken over on 26 May 1998 and handed to DDA, but held that the lack of compensation triggered a deemed lapse. The Supreme Court examined the statutory language of Section 24(2) and, relying on the Constitution Bench decision in Indore Development Authority v. Manoharlal, held that where possession has been taken, the acquisition does not lapse even if compensation is pending. It also rejected the respondents' argument that the possession certificate was defective, noting that the certificate clearly showed hand‑over to DDA and no objection was raised earlier. Consequently, the Court set aside the High Court’s order and allowed the appeal, confirming that the acquisition remains valid.
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 tendered.
- Whether the possession taken on 26 May 1998 by the LAC was lawful despite the absence of a specific reference in the possession certificate.
- Whether the High Court erred in interpreting Section 24(2) in light of the precedent set by Indore Development Authority v. Manoharlal.
Legislation cited
- Land Acquisition Act, 1894s. 16, s. 31, s. 34, s. 4
- Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013s. 24(2)
Subjects
Judgment
752 [2022]REPORTS
SUPREME COURT 17 S.C.R. 752 [2022] 17 S.C.R.
A DELHI DEVELOPMENT AUTHORITY
v.
CHANDERMAL & ORS.
(Civil Appeal No. 9115 of 2022)
B DECEMBER 15, 2022
[M. R. SHAH AND S. RAVINDRA BHAT, JJ.]
Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013: s.24(2) –
Land Acquisition – Specific case of Land acquisition Collector
C
(LAC) before High Court that possession of land in question was
taken over by the LAC and was handed over to DDA – High Court
also believed the taking over of the possession by the LAC, but
thereafter on the ground that the compensation was not tendered to
the original writ petitioners, High Court declared that the acquisition
D is deemed to have lapsed under s.24(2) of the Act, 2013 – Appeal
by LAC – Held: Before the High Court, a counter affidavit was
filed by LAC as well as DDA in which it was specifically mentioned
that the land in question was handed over to DDA on 26.05.1998
and therefore, the acquisition is complete and the lands vest in the
Government and free from any encumbrances – Nothing is on record
E
that at any point of time, the original writ petitioners made any
grievance that the possession taken over on 26.05.1998 was not
lawful – Even High Court in impugned judgment believed the stand
taken by the LAC that the possession of the subject land was taken
over – Under the circumstances, it is not permissible on the part of
F the original writ petitioners to now contend that the possession taken
over on 26.05.1998 was not lawful – The view taken by the High
Court that the acquisition is deemed to have lapsed under s.24(2)
of the Act, 2013 on the ground that though the possession of the
subject lands was taken over but the compensation in respect of the
subject lands was not tendered is contrary to the Constitution Bench
G
decision of this Court in the case of Indore Development Authority v.
Manoharlal and Ors. – Order of High Court is set aside.
Allowing the appeal, the Court
HELD: 1. Before the High Court, a counter affidavit was
H filed by LAC as well as DDA and in which it was specifically
752
DELHI DEVELOPMENT AUTHORITY v. CHANDERMAL & 753
ORS.
mentioned that the land in question was handed over to DDA on A
26.05.1998 and therefore, the acquisition is complete and the
lands vest in the Government and free from any encumbrances.
Nothing is on record that any rejoinder affidavit was filed on behalf
of the original writ petitioners to the counter affidavit filed by the
LAC or DDA. Nothing is on record that at any point of time, the
B
original writ petitioners – predecessors made any grievance that
the possession taken over on 26.05.1998 was not lawful. Even
the High Court in the impugned judgment and order has believed
the stand taken by the LAC that the possession of the subject
land has been taken over. Under the circumstances, it is too late
and/or not permissible on the part of the original writ petitioners C
to now contend that the possession taken over on 26.05.1998
was not lawful. [Para 5][755-F-H; 756-A]
2. In the present case, a notification under Section 4 of the
Land Acquisition Act, 1894 was issued in 1964 and the award
was declared on 10.12.1997 and the possession was handed over D
to DDA on 26.05.1998. So far as the submission on behalf of the
original writ petitioners that “in the possession certificate dated
26.05.1998, there was no mention of taking over of possession
of the subject lands by the Land Acquisition Collector from the
original writ petitioners – predecessors” is concerned, mere non-
mention of taking over of possession cannot be a ground not to E
believe the possession certificate in which it is specifically
mentioned that the possession of the land in question is handed
over to the DDA. What is relevant is handing over of the
possession to the DDA. [Para 5.1][756-B-D]
3. The view taken by the High Court that the acquisition is F
deemed to have lapsed under Section 24(2) of the Act, 2013 on
the ground that though the possession of the subject lands has
been taken over but the compensation in respect of the subject
lands has not been tendered is just contrary to the Constitution
Bench decision of this Court in the case of Indore Development G
Authority Vs. Manoharlal and Ors. [Para 5.2][756-E-F]
Indore Development Authority v. Manoharlal and Ors.
(2020) 8 SCC 129 : [2020] 3 SCR 1 – followed.
H
754 SUPREME COURT REPORTS [2022] 17 S.C.R.
A E.LA. Aboobacker and Ors. v. State of Kerala and Ors.
(2018) 18 SCC 560 : [2018] 12 SCR 263 – referred
to.
Case Law Reference
[2018] 12 SCR 263 referred to Para 3
B
[2020] 3 SCR 1 followed Para 5.2
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9115 of
2022.
From the Judgment and Order dated 03.10.2018 of the High Court
C of Delhi at New Delhi in Writ Petition (C) No. 2255 of 2016.
With
Civil Appeal No. 9123 of 2022.
Ms. Malvika Kapila, Ms. Tanwangi Shukla, Advs. for the Appellant.
D K. C. Jain, Haraprasad Sahu, Pranaya Kumar Mohapatra, Ms.
Prachi Bajpai, Advs. for the Respondents.
The Judgment of the Court was delivered by
M. R. SHAH, J.
E 1. Feeling aggrieved and dissatisfied with the impugned judgment
and order dated 03.10.2018 passed by the High Court of Delhi at New
Delhi in Writ Petition(C) No. 2255 of 2016 by which the High Court has
allowed the said writ petition preferred by the respondents herein and
has declared that the acquisition with respect to the lands in question is
F deemed to have lapsed underSection 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 (DDA) as well as the Government of NCT
of Delhi have preferred the present appeals.
2. By the impugned judgment and order, the High Court has
G
declared that the acquisition with regard to the subject land is deemed
to have lapsed under Section 24(2) of the Act, 2013 on the ground that
the compensation in respect of the subject land has not been tendered
to the original writ petitioners – respondents herein. However, it is
required to be noted that before the High Court, it was the specific
H case on behalf of the appellants, more particularly, the Land Acquisition
DELHI DEVELOPMENT AUTHORITY v. CHANDERMAL & 755
ORS. [M. R. SHAH, J.]
Collector (LAC) that the possession of the land in question was taken A
by the LAC and was handed over to the DDA. The High Court has
also believed the taking over of the possession by the LAC, but
thereafter on the ground that the compensation has not been tendered
to the original writ petitioners, the High Court has declared that the
acquisition is deemed to have lapsed.
B
3. Referring to the possession certificate dated 26.05.1998 relied
upon on behalf of the appellants (Annexure P/4), learned counsel
appearing on behalf of the original writ petitioners has submitted that in
the said possession certificate, there is no reference of “taking over of
the possession of the subject land” by the LAC from the original writ
petitioners – predecessors. It is submitted that it only mentions “handing C
over of possession by the Tehsil staff to the Land and Building
Department”. It is submitted that as per Section 16 of the Land Acquisition
Act, 1894 only the Collector was empowered to take possession and
possession taken by his subordinate cannot be said to be lawful. It is
submitted that therefore the possession so alleged to be taken on D
26.05.1998 cannot be said to be lawful possession. Reliance is placed on
the decision of this Court in the case of E.A. Aboobacker and Ors.
Vs. State of Kerala and Ors., (2018) 18 SCC 560. It is further
submitted that as such the contesting respondents herein disputes the
actual taking over of possession and according to them, they are in
possession of the land in question. E
4. We have heard the learned counsel appearing for the respective
parties at length.
5. At the outset, it is required to be noted that before the High
Court, a counter affidavit was filed by LAC as well as DDA and in F
which it was specifically mentioned that the land in question was handed
over to DDA on 26.05.1998 and therefore, the acquisition is complete
and the lands vest in the Government and free from any encumbrances.
Nothing is on record that any rejoinder affidavit was filed on behalf of
the original writ petitioners to the counter affidavit filed by the LAC or
DDA. Nothing is on record that at any point of time, the original writ G
petitioners – predecessors made any grievance that the possession taken
over on 26.05.1998 was not lawful. Even the High Court in the impugned
judgment andorder has believed the stand taken by the LAC that the
possession of the subject land hasbeen taken over. Under the
circumstances, it is too late and/or not permissible on the part of the H
756 SUPREME COURT REPORTS [2022] 17 S.C.R.
A original writ petitioners to now contend that the possession taken over
on 26.05.1998 was not lawful.
5.1 As observed and held hereinabove, solely on the ground that
the compensation in respect of the subject land has not been tendered to
the original writ petitioners, the High Court has declared that the
B acquisition proceedings with respect to the land in question is deemed to
have been lapsed under Section 24(2) of the Act, 2013. It is required to
be noted that in the present case, a notification under Section 4 of the
Land Acquisition Act, 1894 was issued in 1964 and the award was
declared on 10.12.1997 and the possession was handed over to DDA on
26.05.1998. So far as the submission on behalfof the original writ
C petitioners that “in the possession certificate dated 26.05.1998, there
was no mentionof taking over of possession of the subject lands by the
Land Acquisition Collector from the original writ petitioners –
predecessors” is concerned, mere non-mention of taking over of
possession cannot be a ground not to believe the possession certificate
D in which it is specifically mentioned that the possession of the land in
question is handed over to the DDA. What is relevant is handing over of
the possession to the DDA.
5.2 The view taken by the High Court that the acquisition is deemed
to have lapsed under Section 24(2) of the Act, 2013 on the ground that
E though the possession of the subject lands hasbeen taken over but the
compensation in respect of the subject lands has not been tendered is
just contrary to the Constitution Bench decision of this Court in the case
of Indore Development Authority Vs. Manoharlal and Ors. (2020)
8 SCC 129. In paragraph 366, it is observed and held by this Courtas
under:-
F “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
G 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
H has not been repealed.
DELHI DEVELOPMENT AUTHORITY v. CHANDERMAL & 757
ORS. [M. R. SHAH, J.]
366.3. The word “or” used in Section 24(2) between possession A
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
B
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 C
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
1894 Act shall be entitled to compensation in accordance with the D
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
acquisition proceedings. In case of non-deposit with respect to
the majority of holdings for five years or more, compensation under E
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 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 F
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, cannot claim
that the acquisition proceedings had lapsed under Section 24(2) G
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).
366.7. The mode of taking possession under the 1894 Act and
as contemplated under Section 24(2) is by drawing of inquest H
758 SUPREME COURT REPORTS [2022] 17 S.C.R.
A 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
under Section 24(2).
B 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 into force, in a
proceeding for land acquisition pending with the authority concerned
as on 1-1-2014. The period of subsistence of interim orders passed
C 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 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
D 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 to invalidate
acquisition.”
E 6. In view of the above and for the reasons stated above, 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.
Present appeals are accordingly allowed. However, in the facts
F and circumstances of the case, there shall be no order as to costs.
Pending applications, if any, also stand disposed of.
Devika Gujral Appeals allowed.
G
H
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