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Supreme Court of India

GOVERNMENT OF NCT OF DELHI & ANRversusMANJEET SINGH ANAND & ANR.

Citation
2023 INSC 64
Decided
20 January 2023
Disposal
Appeal(s) allowed

Holding

Acquisition proceedings that have already resulted in possession and payment/tender of compensation do not lapse under Section 24(2) of the 2013 Act, and a non‑owner lacks locus to challenge the acquisition.

Summary

The land in question was acquired under the Land Acquisition Act, 1894 in 1964, with possession taken and compensation deposited by 1967. Respondent No.1, who was not the recorded owner, filed a writ petition claiming that the acquisition had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Delhi High Court allowed the petition, but the Government of NCT of Delhi appealed. The Supreme Court held that where possession has been taken and compensation has been paid (or tendered) before the 2013 Act came into force, the proceedings do not lapse under Section 24(2); the word “or” must be read as “nor/and”. It also ruled that a subsequent purchaser has no locus to challenge the acquisition. Relying on Indore Development Authority v. Manoharlal (2020) and overruling the earlier Pune Municipal Corporation decision, the Court quashed the High Court judgment. The appeal was allowed and no costs were awarded.

Issues considered

  • Whether acquisition proceedings are deemed to have lapsed under s.24(2) of the 2013 Act when possession was taken and compensation was paid before the Act commenced.
  • Whether a person who is not the recorded owner and holds only a power of attorney has locus standi to challenge the lapse of acquisition.
  • Interpretation of the word “or” in s.24(2) – whether it should be read as “nor” or “and”.
  • Whether deposit of compensation in court amounts to non‑payment for the purpose of s.24(2).

Legislation cited

Subjects

land acquisitionSection 24(2)lapse of proceedingslocus standipossessioncompensationoverruled precedentRight to Fair Compensation Act

Judgment

                          [2023] 1 S.C.R. 771                            771


          GOVERNMENT OF NCT OF DELHI & ANR.                              A
                                  v.
               MANJEET SINGH ANAND & ANR.
                   (Civil Appeal No. 360 of 2023)
                        JANUARY 20, 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) –
Land acquisition – Subject land acquired in the year 1964, and in
                                                                         C
the year 1967 the physical possession of the land was taken by
drawing panchnama as also compensation was deposited –
Thereafter, writ petition by the respondent no. 1 claiming that the
acquisition proceedings under the Land Acquisition Act with respect
to the subject land deemed to have lapsed u/s. 24(2) – Allowed by
the High Court – Sustainability of – Held: Not sustainable –             D
Respondent no. 1-original writ petitioner not the recorded owner
and he filed the writ petition on the basis of some documents, General
Power of Attorney, receipts – Subsequent purchaser has no locus
to challenge the acquisition – Impugned judgment contrary to law
laid down by this Court in the Indore Development Authority’s case
                                                                         E
– Thus, the High Court erred in entertaining the writ petition
preferred at the instance of respondent No. 1-original writ petitioner
and is quashed and set aside.
      Indore Development Authority Vs. Manoharlal and Ors,
      (2020) 8 SCC 129 - followed.
                                                                         F
      Smt. Harbans Kaur Vs. Govt. of NCT of Delhi and Ors.
      W.P.(C) 5358 of 2014, decided on 02.02.2015; Pune
      Municipal Corporation and Anr. Vs. Harakchand
      Misirimal Solanki and Ors. (2014) 3 SCC 183 : [2014]
      (1) SCR 783; Shiv Kumar and Anr. Vs. Union of India
      and Ors., (2019) 10 SCC 229; Delhi Development                     G
      Authority Vs. Godfrey Philips (I) Ltd. & Ors., Civil
      Appeal No. 3073 of 2022, Delhi Administration Thr.
      Secretary, Land and Building Department & Ors. Vs.
      Pawan Kumar & Ors., - Civil Appeal No. 3646 of 2022-
      referred to.                                                       H
                              771
772             SUPREME COURT REPORTS                          [2023] 1 S.C.R.


A                             Case Law Reference
      [2014] (1) SCR 783                referred to               Para 2.1, 2.2
      (2020) 8 SCC 129                  followed                  Para 3
      (2019) 10 SCC 229                 referred to               Para 2.3
B             CIVIL APPELLATE JURISDICTION : Civil Appeal No.360 of
      2023.
            From the Judgment and Order dated 02.05.2017 of the High Court
      of Delhi at New Delhi in WP (C) No.7004 of 2015.
             Atul Kumar, Ms. Sweety Singh, Ms. Archana Kumari, Rahul
C
      Pandey, Avs Kadyan, Rajiv Ranjan, Mishra Saurabh, Ms. Sujeeta
      Srivastava, Nishit Agrawal, Ms. Kanishka Mittal, Ms. Vanya Agrawal,
      Ashwani Kumar, Anshay Dhatwalia, Ms. Binu Tamta, Ms. Smita Maan,
      Nitin Mishra, Ishaan Sharma, Mohit Kumar Gupta, Shekhar Yadav, Ms.
      Iti Sharma, Rahul Bhatia, Rachita Kadyan, N. S. Vashist, Gagan Gupta,
D     Ms. Astha Tyagi, Dinesh Chander Trehan, Ms. Diksha Narula, Advs.
      for the appearing parties.
              The Judgment of the Court was delivered by
             M. R. SHAH, J.
             1. Feeling aggrieved and dissatisfied with the impugned judgment
E
      and order passed by the High Court of Delhi at New Delhi in Writ
      Petition(C) No. 7004 of 2015 by which the High Court has allowed the
      said writ petition preferred by the respondent No. 1 herein and has
      declared that the acquisition proceedings initiated under the Land
      Acquisition Act, 1894 (hereinafter referred to as “Act, 1894”) with regard
F     to the land in question is deemed to have lapsed under 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 Government of NCT of Delhi and Anr. have preferred
      the present appeal.
G            2. In the present case, the land in question was acquired in the
      year 1964 and the notification under Section 4 of the Land Acquisition
      Act, 1894 was issued on 13.02.1964. Award was made on 12.05.1967.
      That according to the Land Acquisition Collector (LAC), the physical
      possession of the land in question was taken on 07.06.1967 and the
      compensation was duly deposited with the Reference Court on
H     13.11.1967. That thereafter on the Act, 2013, coming into force, the
  GOVERNMENT OF NCT OF DELHIAND ANR. v. MANJEET                              773
       SINGH ANAND AND ANR. [M. R. SHAH, J.]

respondent No. 1 – original writ petitioner on the basis of some documents   A
– General Power of Attorney, receipts etc. filed the writ petition before
the High Court and prayed for lapse of the acquisition under Section
24(2) of the Act, 2013. Though a specific plea was raised before the
High Court that the respondent No. 1 – original writ petitioner has no
locus to challenge the acquisition and the recorded owner is somebody
                                                                             B
else, relying upon the decision of the High Court in the case of Smt.
Harbans Kaur Vs. Govt. of NCT of Delhi and Ors. [W.P.(C) 5358
of 2014, decided on 02.02.2015], the High Court has allowed the said
writ petition.
       2.1 From the impugned judgment and order passed by the High
Court, it appears that in the case of Smt.Harbans Kaur (supra), the          C
High Court has relied upon the decision of this Court in the case of
Pune Municipal Corporation and Anr. Vs. Harakchand Misirimal
Solanki and Ors., (2014) 3 SCC 183.
       2.2 The decision of this Court in the case of Pune Municipal
Corporation and Anr. (supra), which was relied upon by the High              D
Court while deciding the case of Smt. Harbans Kaur (supra), has
been specifically overruled by the Constitution Bench of this Court in
the case of Indore Development Authority Vs. Manoharlal and
Ors., (2020) 8 SCC 129. In paragraphs 365 and 366, the Constitution
Bench of this Court has observed and held as under:-
                                                                             E
                  “365. Resultantly, the decision rendered in Pune
           Municipal Corpn. [Pune Municipal Corpn. v. Harakchand
           Misirimal Solanki, (2014) 3 SCC 183] is hereby overruled and
           all other decisions in which Pune Municipal Corpn. [Pune
           Municipal Corpn. v. Harakchand Misirimal Solanki, (2014) 3
           SCC 183] has been followed, are also overruled. The decision      F
           in Sree Balaji Nagar Residential Assn. [Sree Balaji Nagar
           Residential Assn. v. State of T.N., (2015) 3 SCC 353] cannot
           be said to be laying down good law, is overruled and other
           decisions following the same are also overruled. In Indore
           Development Authority v. Shailendra [(2018) 3 SCC 412], the
                                                                             G
           aspect with respect to the proviso to Section 24(2) and whether
           “or” has to be read as “nor” or as “and” was not placed for
           consideration. Therefore, that decision too cannot prevail, in
           the light of the discussion in the present judgment.
                366. In view of the aforesaid discussion, we answer
          the questions as under:                                            H
774   SUPREME COURT REPORTS                         [2023] 1 S.C.R.


A           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.
B            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.
C            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
D     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
E     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
F     under Section 4 of the 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
G     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.
H
GOVERNMENT OF NCT OF DELHIAND ANR. v. MANJEET                             775
     SINGH ANAND AND ANR. [M. R. SHAH, J.]

             366.5. In case a person has been tendered the                A
     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
                                                                          B
     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) 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          C
     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 report/memorandum. Once award has been passed on
     taking possession under Section 16 of the 1894 Act, the land         D
     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).
            366.8. The provisions of Section 24(2) providing for a
     deemed lapse of proceedings are applicable in case authorities       E
     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 by court has to be excluded in the          F
     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            G
     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 to invalidate acquisition.”
                                                                          H
776              SUPREME COURT REPORTS                          [2023] 1 S.C.R.


A            2.3 Even otherwise, the High Court has materially erred in
      entertaining the writ petition preferred by the respondent No. 1 herein.
      As per the case on behalf of the appellant and so stated in the counter
      affidavit, the respondent No. 1 – original writ petitioner was not the
      recorded owner and he filed the writ petition on the basis of some
      documents – General Power of Attorney, receipts etc. As held by this
B
      Court in the case of Shiv Kumar and Anr. Vs. Union of India and
      Ors., (2019) 10 SCC 229 and in the subsequent decisions in the case
      of Delhi Development Authority Vs. Godfrey Philips (I) Ltd. &
      Ors., - Civil Appeal No. 3073 of 2022 and Delhi Administration
      Thr. Secretary, Land and Building Department & Ors. Vs. Pawan
C     Kumar & Ors., - Civil Appeal No. 3646 of 2022, the subsequent
      purchaser has no locus to challenge the acquisition / lapse of acquisition.
      Under the circumstances also, the High Court has committed a very
      serious error in entertaining the writ petition preferred at the instance of
      respondent No. 1 – original writ petitioner.
D           3. In view of the above and applying the law laid down by this
      Court in the Constitution Bench decision in the case of Indore
      Development Authority (supra), and when the acquisition was of the
      year 1964 and the possession was taken over in the year 1967 by drawing
      the panchnama [which is held to be taking the possession in accordance
      with law as observed and held by this Court in the case of Indore
E     Development Authority (supra)], 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 appeal is accordingly allowed. No costs.

F            Pending application, if any, also stands disposed of.

      Nidhi Jain                                                     Appeal allowed.
      (Assisted by : Abhishek Agnihotri, LCRA)



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