LUCKNOW DEVELOPMENT AUTHORITYversusMEHDI HASAN (DECEASED) THR. LRS. & ORS.
- Citation
- 2022 INSC 1275
- Decided
- 12 December 2022
- Disposal
- Appeal(s) allowed
- Bench
- M R SHAH
Holding
Section 24(2) of the 2013 Act applies only when both possession has not been taken and compensation has not been paid/tendered; therefore, the acquisition did not lapse.
Summary
The Lucknow Development Authority (LDA) had taken possession of a plot of land on 13 February 2003 under the Land Acquisition Act, 1894, and later deposited compensation in court under Section 30(2) of that Act. The High Court held that the acquisition was 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 tendered to the original owners at the time the 2013 Act came into force. LDA appealed, arguing that the conditions for a deemed lapse—both possession not taken and compensation not paid—were not satisfied. Relying on the Supreme Court’s decision in Indore Development Authority v. Manoharlal, the Court clarified that the word “or” in Section 24(2) must be read as “and,” requiring both conditions to be met. Since possession had already been taken in 2003, the acquisition could not be deemed to have lapsed. Consequently, the High Court’s order was set aside and the appeal was allowed.
Issues considered
- Whether the acquisition proceedings are deemed to have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 when possession was taken before the Act’s commencement but compensation was not tendered to the original owners.
- Interpretation of the word ‘or’ in Section 24(2) – whether it should be read as ‘and’ for the purpose of deeming lapse.
Legislation cited
- Land Acquisition Act, 1894s. 16, s. 30(2), s. 31(1), s. 34, s. 4
- 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
672 [2022]REPORTS
SUPREME COURT 16 S.C.R. 672 [2022] 16 S.C.R.
A LUCKNOW DEVELOPMENT AUTHORITY
v.
MEHDI HASAN (DECEASED) THR. LRS. & ORS.
(Civil Appeal No. 8887 of 2022)
B DECEMBER 12, 2022
[M. R. SHAH AND M. M. SUNDRESH, JJ.]
Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013: s.24(2) –
Land acquisition proceedings under Land Acquisition Act, 1894 –
C
Possession already taken in 2003 – High Court, on the ground,
that the compensation was not tendered to the land owner under
s.30(2) of Act of 2013, allowed writ petition and declared that the
acquisition with respect to the land in question is deemed to have
lapsed under s.24(2) of the Act, 2013 – Hence instant appeal –
D Held: As per the law laid down in the case of Indore Development
Authority, it cannot be said that the land proceedings are deemed to
have lapsed – In order to attract s.24(2) of the Act, 2013, twin
conditions of not taking possession and not tendering/payment of
compensation are required to be satisfied – If one of the conditions
is not satisfied, the acquisition proceedings are not deemed to have
E
been lapsed under s.24(2) of the Act, 2013 – As per the Special
Land Acquisition Officer as the possession was taken on 13.02.2003
and was handed over to the Lucknow Development Authority on
13.02.2003 and in view of the decision of this Court in the case of
Indore Development Authority, the impugned judgment and order
F passed by the High Court is unsustainable – Appeal allowed.
Indore Development Authority v. Manoharlal and Ors.
(2020) 8 SCC 129 : [2020] 3 SCR 1 – followed.
Case Law Reference
G [2020] 3 SCR 1 followed Para 2
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 8887
of 2022.
From the Judgment and Order dated 03.07.2017 of the High Court
of Judicature at Allahabad, Lucknow Bench in Misc. Bench No. 4149
H of 2006.
672
LUCKNOW DEVELOPMENT AUTHORITY v. MEHDI HASAN 673
(DECEASED) THR. LRS. & ORS.
K. M. Nataraj, ASG, Shantanu Krishna, Sidharth Sarthi, Chitansh A
Sharma, Animesh Tripathi, Advs. for the Appellant.
Anukul Raj, Anubhav Deep Singh, Ms. Nikita Raj, Kumar
Dushyant Singh, Kabir Dixit, Advs. for the Respondents.
R. Basant, Sr. Adv., Sanjeev Kumar Singh, Samarth Srivastava,
Nishant Kumar, Advs. for the Impleader. B
The Judgment of the Court was delivered by
M. R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment
and order dated 03.07.2017 passed by the High Court of Judicature at C
Allahabad, Lucknow Bench in Misc. Bench No.4149 of 2006 by which
the High Court has allowed the said writ petition to the extent of Plot
No.219, 1 bigha, 10 biswa and 10 biswansi, Village Malesemau, Tehsil
& District Lucknow and has declared that the acquisition with respect
to the said land is deemed to have lapsed under Sub-section (2) of Section D
24 of the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter
referred to as ‘the Act 2013’), the Lucknow Development Authority has
preferred the present appeal.
2. Having heard the learned counsel appearing on behalf of the
E
respective parties including Shri R. Basant, learned Senior Advocate
appearing on behalf of the subsequent purchasers and having considered
the decision of this Court in the case of Indore Development Authority
Vs. Manoharlal and Ors., (2020) 8 SCC 129 and as it is reported
that the possession of the land in question was already taken over in
2003, delay caused in preferring the appeal condoned which as such F
was already condoned vide earlier order dated 25.11.2022.
3. Before the High Court the original writ petitioners questioned
the acquisition proceedings in relation to separate plots of land belonging
to them, however during pendency of the writ petition an application
was filed in the writ petition restricted to the plot no.219 only area1 G
bigha, 10 biswa and 10 biswansi of village Malesemau, Tehsil & District
Lucknow.
3.1 From the impugned judgment and order passed by the High
Court and even taking into consideration the counter affidavit filed on
behalf of the respondent nos. 2 and 3 - Collector and the Lucknow H
674 SUPREME COURT REPORTS [2022] 16 S.C.R.
A Development Authority filed before the High Court, it appears that it
was the specific case on behalf of the appellant - Authority that the
possession of the land in question was duly taken on 13.02.2003 by the
Special Land Acquisition Officer and was delivered to the Lucknow
Development Authority vide Possession Certificate dated 13.02.2003. It
was also stated that the compensation has now been deposited in the
B
Court of District Judge under Section 30(2) of the Land Acquisition Act,
1894. Without discussing anything on the possession taken by the Special
Land Acquisition Officer delivered to the Lucknow Development
Authority on 13.02.2003, thereafter the High Court has allowed the writ
petition and has declared the acquisition with respect to the land in question
C deemed to have lapsed under Section 24(2) of the Act, 2013 solely on
the ground that the compensation was not tendered/paid to the original
land owners under Section 30(2) of the Land Acquisition Act, 2013 at
the time when the Act, 2013 came into force. However, the fact remains
that the possession of the land in question as per the Land Acquisition
Officer and the Lucknow Development Authority was duly taken on
D 13.02.2003 and was delivered to the Lucknow Development Authority
on 13.02.2003 itself. That once the possession was taken much prior to
Act 2013 came into force. As per the law laid down by this Court in the
case of Indore Development Authority (supra), it cannot be said that
the land proceedings are deemed to have lapsed. As per the law laid
E down by this Court to attract Section 24(2) of the Act, 2013 twin conditions
of not taking possession and not tendering/payment of compensation are
required to be satisfied. As per the law laid down by this Court in the
aforesaid decision if one of the conditions is not satisfied, the acquisition
proceedings are not deemed to have been lapsed under Section 24(2) of
the Act, 2013.
F
3.2 In paragraph366 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:
G 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.
366.2. In case the award has been passed within the window
H period of five years excluding the period covered by an interim
LUCKNOW DEVELOPMENT AUTHORITY v. MEHDI HASAN 675
(DECEASED) THR. LRS. & ORS. [M. R. SHAH, J.]
order of the court, then proceedings shall continue as provided A
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
lapse of land acquisition proceedings under Section 24(2) of the B
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 no lapse. Similarly,
if compensation has been paid, possession has not been taken C
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 to Section 24(2) in case it has not been deposited with D
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 Act. In case the
obligation under Section 31 of the Land Acquisition Act, 1894 E
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 the 2013 Act has to be paid to the
“landowners” as on the date of notification for land acquisition F
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
to non-payment or non-deposit of compensation in court. The G
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)
of the 2013 Act. H
676 SUPREME COURT REPORTS [2022] 16 S.C.R.
A 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
report/memorandum. Once award has been passed on taking
B 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).
366.8. The provisions of Section 24(2) providing for a deemed
lapse of proceedings are applicable in case authorities have failed
C 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.
D 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
E
of taking possession to reopen proceedings or mode of deposit of
compensation in the treasury instead of court to invalidate
acquisition.”
4. In view of the above and as per the Special Land Acquisition
Officer as the possession was taken on 13.02.2003 and was handed
F over to the Lucknow Development Authority on 13.02.2003 and in view
of the decision of this Court in the case of Indore Development
Authority (supra), the impugned judgment and order passed by the High
Court is unsustainable. Consequently, the impugned judgment and order
passed by the High Court is hereby quashed and set aside.
G Present appeal is accordingly allowed.
The original writ petition filed before the High Court stands
dismissed.
No costs.
H Devika Gujral Appeal allowed.
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