GOVT. OF NCT OF DELHIversusSUSHIL KUMAR GUPTA & ORS.

                         [2023] 1 S.C.R. 427                            427


                    GOVT. OF NCT OF DELHI                               A
                                 v.
                SUSHIL KUMAR GUPTA & ORS.
                   (Civil Appeal No. 352 of 2023)
                       FEBRUARY 10, 2023                                B
         [M. R. SHAH AND C. T. RAVIKUMAR, JJ.]
       Land Acquisition – Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013 – s.24(2) – Lapse under – Land acquisition proceedings
                                                                        C
– Challenge to – Writ proceedings – Relying upon the decision in
the case of Pune Municipal Corporation on the ground that
compensation with respect to the land in question was not paid, the
High Court allowed the writ petition and declared that acquisition
in respect of the land in question is deemed to have lapsed u/s.24(2)
– Decision in the case of Pune Municipal Corporation has however        D
been overruled by Constitution Bench in the case of Indore
Development Authority – Accordingly, for purpose of lapsing the
acquisition u/s.24(2), the twin conditions namely, not taking the
possession and not paying the compensation have to be satisfied
and if one of the conditions is not satisfied there shall not be any
                                                                        E
lapse of the acquisition – Once possession of the land in question
was taken over on 12.03.1981 then applying the law laid down in
the case of Indore Development Authority the acquisition of the land
in question is not deemed to have lapsed u/s.24(2) – Impugned
judgment passed by the High Court is unsustainable.
                                                                        F
      Indore Development Authority v. Manoharlal & Ors.
      (2020) 8 SCC 129 : [2020] 3 SCR 1 – followed.
      Pune Municipal Corporation & Anr. v. Harakch and
      Misrimal Solanki & Ors (2014) 3 SCC 183 – held
      overruled.
                                                                        G
                       Case Law Reference
[2020] 3 SCR 1                 followed                Para 2
(2014) 3 SCC 183               held overruled          Para 2

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                                427
428             SUPREME COURT REPORTS                        [2023] 1 S.C.R.


A             CIVIL APPELLATE JURISDICTION : Civil Appeal No. 352 of
      2023.
            From the Judgment and Order dated 30.05.2016 of the High Court
      of Delhi at New Delhi in WP (C) No.1399 of 2014.
           Chandan Kumar, Chandra Prakash, Vivek Singh, C. P. Rajwar,
B     Ms. Somi Sharma, Advs. for the Appellant.
           Neeraj Kishan Kaul, Sr. Adv., Jasbir Singh Malik, Ram Chandra
      Madam, Varun Punia, Nitin Mishra, Ishaan Sharma, Advs. for the
      Respondents.

C             The Judgment of the Court was delivered by
              M. R. SHAH, J.
             1. Feeling aggrieved and dissatisfied with the impugned
      judgment and order dated 30.05.2016 passed by the High Court of
      Delhi at New Delhi in Writ Petition (C) No. 1399 of 2014, by which,
D     the High Court has allowed the said writ petition and has declared
      that the land acquisition proceedings in respect of 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 has preferred the present appeal.
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             2. It is true that there is a huge delay in preferring the appeal
      which is vehemently opposed by Shri Neeraj Kishan Kaul, learned
      Senior Advocate appearing on behalf of the contesting respondent(s)
      – original writ petitioner, however, taking into consideration the other
      similar orders passed by different benches in condoning such delay
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      in preferring the appeal challenging the order(s) passed by the very
      High Court declaring that the acquisition is lapsed under Section 24(2)
      of the Act, 2013 and taking into consideration the fact that while
      passing the impugned judgment and order the High Court has relied
      upon and/or followed the earlier decision of this Court in the case of
G     Pune Municipal Corporation and Anr. Vs. Harakchand
      Misirimal Solanki and Ors., reported in (2014) 3 SCC 183
      which has been overruled by the Constitution Bench of this Court in
      the case of Indore Development Authority Vs. Manoharlal and
      Ors., reported in (2020) 8 SCC 129 and the observations made
      in paragraph 365 which is reproduced hereinbelow, in which it is
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GOVT. OF NCT OF DELHI v. SUSHIL KUMAR GUPTA & ORS.                        429
                  [M. R. SHAH, J.]

observed that all the decisions in which the decision in the case of      A
Pune Municipal Corporation (supra) have been relied upon stand
overruled, we condone the delay and consider the appeal on merits.
      3. Having gone through the impugned judgment and order
passed by the High Court and even as observed by the High Court in
the impugned judgment and order, as such the possession of the land       B
in question was taken over as far as back on 12.03.1981. However,
thereafter relying upon the decision of this Court in the case of Pune
Municipal Corporation (supra) on the ground that the compensation
with respect to the land in question was not paid, the High Court has
allowed the said writ petition and has declared that the acquisition in
respect of the land in question is deemed to have lapsed under Section    C
24(2) of the Act, 2013.
       4. The decision of this Court in the case of Pune Municipal
Corporation (supra) relied upon by the High Court has been
overruled by the Constitution Bench of this Court in the case of
Indore Development Authority (supra). In paragraphs 365 and               D
366, it is observed and held as under: -
             “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            E
      Municipal Corpn. v. Harakchand Misirimal Solanki, (2014) 3
      SCC 183] has been followed, are also overruled. The decision
      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          F
      decisions following the same are also overruled. In Indore
      Development Authority v. Shailendra [(2018) 3 SCC 412], the
      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.                G
            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, t he date of
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430     SUPREME COURT REPORTS                        [2023] 1 S.C.R.


A     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
B     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
C     “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
D     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
E     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 provisions of the 2013
F     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
G     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 tender ed the
      compensation as provided under Section 31(1) of the 1894 Act,
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GOVT. OF NCT OF DELHI v. SUSHIL KUMAR GUPTA & ORS.                         431
                  [M. R. SHAH, J.]

      it is not open to him to claim that acquisition has lapsed under     A
      Section 24(2) due to non-payment or non-depos it 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
                                                                           B
      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).
             366.7. The mode of taking possession under the 1894           C
      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 under Section 24(2).                                           D

            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        E
      the 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         F
      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     G
      to reopen proceedings or mode of deposit of compensation in
      the treasury instead of court to invalidate acquisition.”
      5. Thus, as per the law laid down by this Court for the purpose
of lapsing the acquisition under Section 24(2) of the Act, 2013, the
twin conditions namely, not taking the possession and not paying the
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432              SUPREME COURT REPORTS                      [2023] 1 S.C.R.


A     compensation have to be satisfied and if one of the conditions is not
      satisfied there shall not be any lapse of the acquisition. Therefore,
      once the possession of the land in question was taken over on
      12.03.1981 then applying the law laid down by this Court in the case
      of Indore Development Authority (supra) the acquisition of the
      land in question is not deemed to have lapsed under Section 24(2) of
B
      the Act, 2013. Under the circumstances, the impugned judgment and
      order passed by the High Court is unsustainable.
            6. In view of the above and for the reasons stated above, the
      present appeal succeeds. The impugned judgment and order passed
      by the High Court is hereby quashed and set aside. Consequently,
C     the writ petition preferred by the original writ petitioner before the
      High Court stands dismissed.
             Present appeal is accordingly allowed. No costs.
             Pending applications, if any, also stand disposed of.
D
      Bibhuti Bhushan Bose                                      Appeal allowed.
      (Assisted by : Abhishek Pratap Singh, LCRA)




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