LAND AND BUILDING DEPARTMENT THROUGH SECRETARY, GOVERNMENT OF NCT OF DELHI & ANR.versusMAHIPAL SINGH & ORS

610                      [2022]REPORTS
               SUPREME COURT   16 S.C.R. 610              [2022] 16 S.C.R.


A         LAND AND BUILDING DEPARTMENT THROUGH
        SECRETARY, GOVERNMENT OF NCT OF DELHI & ANR.
                                        v.
                          MAHIPAL SINGH & ORS.

B                       (Civil Appeal No. 8932 of 2022)
                             DECEMBER 02, 2022
               [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) –
C     Land Acquisition – Possession of land taken on 03.12.2012and
      handed over to DDA – Compensation also sent to Reference Court
      on 28.10.2014 – Inspite of this, solely on the ground that the
      compensation was not tendered prior to coming into force of the
      Act, 2013, High Court declared that the land acquisition with respect
D     to the land in question was deemed to have lapsed – Held: The view
      taken by the High Court is not sustainable in view of the
      Constitutional Bench decision of Supreme Court in Indore
      Development Authority v. Manoharlal and Ors. wherein it was held
      that in case possession was taken but compensation not paid then
      there is no lapse – High Court order set aside.
E
            Indore Development Authority v. Manoharlal and Ors.
            (2020) 8 SCC 129 : [2020] 3 SCR 1 – followed.
            Pune Municipal Corporation and Anr. v. Harakchand
            Misirimal Solanki and Ors. (2014) 3 SCC 183 : [2014]
            1 SCR 783 – referred to.
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                             Case Law Reference
      [2014] 1 SCR 783                 referred to             Para 2.1
      [2020] 3 SCR 1                   followed                Para 2.2
            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 8932
G     of 2022.
            From the Judgment and Order dated 31.01.2018 of the High Court
      of Delhi at New Delhi in Writ Petition (C) No. 11238 of 2015.
            Ms. Sujeeta Srivastava, Adv. for the Appellants.
H           Krishan Kumar, Nitin Mishra, Advs. for the Respondents.
                                      610
 LAND AND BUILDING DEPT. THROUGH SECY., GOVT. OF                             611
         NCT OF DELHI v. MAHIPAL SINGH

      The Judgment of the Court was delivered by                             A
      M. R. SHAH, J.
        1. Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the High Court of Delhi at New Delhi in Writ
Petition(C) No. 11238 of 2015 by which the High Court has allowed the
said writ petition and has declared that theland acquisition proceedings     B
initiated under the Land Acquisition Act, 1894 (hereinafter referred to
as “Act, 1894”) with regard to the landin question isdeemed 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         C
of Delhi and Anr.havepreferred the present appeal.
       2. From the impugned judgment and order passedby the High
Court and even from the counter affidavit filed on behalf of the Land
Acquisition Collector filed before the High Court, which is reproduced
by the High Court in the impugned judgment and order in paragraph 6, it      D
was the specific case on behalf of the appellants that the possession of
the land in question was taken over on 03.12.2012 after preparing
possession proceeding on the spot and was handed over to the beneficiary
department, i.e., Delhi Development Authority (DDA) immediately. It
was also pointed out that the compensation was also sent to the Reference
Court on 28.10.2014 as there was an apportionment dispute.                   E

      2.1 In spite of above, solely on the ground that the compensation
was not tendered prior to coming into force of the Act, 2013 and relying
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, the High Court has allowed the writ petition and           F
has declared that the land acquisition proceedings have lapsed under
Section 24(2) of the Act, 2013.
       2.2 The view taken by the High Court relying upon the decision of
this Court in the case of Pune Municipal Corporation and Anr.
(supra) is unsustainable in view of the Constitution Bench decision of       G
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:-
        “365. Resultantly, the decision rendered in Pune Municipal
      Corpn. [Pune Municipal Corpn. v. Harakchand Misirimal Solanki,         H
612      SUPREME COURT REPORTS                       [2022] 16 S.C.R.


A     (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 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
B
      good law, is overruled and other 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
C     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:
          366.1. Under the provisions of Section 24(1)(a) in case the
D     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
E     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
F     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,
G     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
      court. The consequence of non-deposit is provided in the proviso
H
LAND AND BUILDING DEPT. THROUGH SECY., GOVT. OF                            613
  NCT OF DELHI v. MAHIPAL SINGH [M. R. SHAH, J.]

   to Section 24(2) in case it has not been deposited with respect to      A
   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 Act. In case the obligation under Section
   31 of the Land Acquisition Act, 1894 has not been fulfilled, interest
                                                                           B
   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
   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.      C
       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
   to non-payment or non-deposit of compensation in court. The
   obligation to pay is complete by tendering the amount under Section     D
   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)
   of the 2013 Act.
       366.6. The proviso to Section 24(2) of the 2013 Act is to be        E
   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
   report/memorandum. Once award has been passed on taking
   possession under Section 16 of the 1894 Act, the land vests in          F
   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 have failed     G
   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 computation of five years.
                                                                           H
614              SUPREME COURT REPORTS                       [2022] 16 S.C.R.


A                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
             revive stale and time-barred claims and does not reopen concluded
             proceedings nor allow landowners to question the legality of mode
B
             of taking possession to reopen proceedings or mode of deposit of
             compensation in the treasury instead of court to invalidate
             acquisition.”
             3. In view of the above and when the relied upon judgment in the
      case of Pune Municipal Corporation and Anr. (supra) has been
C     specifically overruled by this Court in the case of Indore Development
      Authority (supra) and considering the fact that the possession of the
      land in question was already taken over in the year 2012 and the same
      was handed over to the beneficiary – DDA immediately and in light of
      the observations made by the Constitution Bench in the case of Indore
D     Development Authority (supra) made in paragraphs 365 and 366
      (reproduced hereinabove), the impugned judgment and order passed by
      the High Court is unsustainable and deserves to be quashed and set
      aside and is accordingly quashed and set aside.
             Present appeal is accordingly allowed. No costs.
E            Pending applications, if any, also stand disposed of.

      Devika Gujral                                                  Appeal allowed.



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