GOVERNMENT OF NCT OF DELHI & ANR versus DAYANAND & ANR. on 13 March 2023

1. Feeling aggrieved and dissatisfied with the impugned judgmentand order passed by the High Court of Delhi at New Delhi in Writ Petition(C) No. 1754 of 2015, by which, the High Court has allowed the saidwrit petition and has declared that the acquisition with respect to theland in question is deemed to have lapsed under Section 24(2) of theRight 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 & Anr. have preferredthe present appeal.

2. From the impugned judgment and order passed by the HighCourt and from the counter affidavit filed by the Land AcquisitionCollector (LAC) before the High Court which is reproduced in paragraph3 of the impugned judgment by the High Court, it was the specific caseon behalf of the LAC that out of total land comprised in Khasra No. 115(1-0) possession of 19 biswa was taken but possession of remaining 01biswa could not be taken due to built up. It was also the case on behalfof the LAC that after the award was declared the original writ petitionerwas issued a notice under Section 12(2) of the Land Acquisition Act,1894 (LA Act) for collecting the compensation amount vide registeredpost No. 4065 dated 27.02.2009 and when he did not come to collect thecompensation, it was sent to Revenue Deposit. Thus, as per the LACthe possession of the major portion of the land acquired was taken bydrawing possession proceedings dated 13.04.2009, despite the aboveand relying upon the earlier decision of this Court in the case of PuneMunicipal Corporation and Anr. Vs. Harakchand MisirimalSolanki and Ors., (2014) 3 SCC 183, the High Court has allowed thewrit petition and has declared that the acquisition with respect to theland in question is deemed to have lapsed under Section 24(2) of the A

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AAct, 2013 by observing that “even though respondent No.2/LAC claimsthat possession was taken in respect of the major portion of the land i.e.,19 biswa, there is no categorical statement that payment of compensationwas made in accordance with law declared to be applicable i.e., in thecase of Pune Municipal Corporation (supra).”

2.1 The decision of this Court in the case of Pune MunicipalCorporation (supra) which has been relied upon by the High Courthas been overruled by the Constitution Bench of this Court in the caseof Indore Development Authority Vs. Manoharlal and Ors., (2020)8 SCC 129. In paragraphs 365 and 366, the Constitution Bench of thisCourt has observed and held as under:- B

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“365. Resultantly, the decision rendered in Pune MunicipalCorpn. [Pune Municipal Corpn. v. Harakchand Misirimal Solanki,(2014) 3 SCC 183] is hereby overruled and all other decisions inwhich Pune Municipal Corpn. [Pune Municipal Corpn. v.Harakchand Misirimal Solanki, (2014) 3 SCC 183] has beenfollowed, are also overruled. The decision in Sree Balaji NagarResidential Assn. [Sree Balaji Nagar Residential Assn. v. Stateof T.N., (2015) 3 SCC 353] cannot be said to be laying downgood law, is overruled and other decisions following the same arealso overruled. In Indore Development Authority v. Shailendra[(2018) 3 SCC 412], the aspect with respect to the proviso toSection 24(2) and whether “or” has to be read as “nor” or as“and” was not placed for consideration. Therefore, that decisiontoo cannot prevail, in the light of the discussion in the presentjudgment.

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366. In view of the aforesaid discussion, we answer thequestions as under:

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366.1. Under the provisions of Section 24(1)(a) in case theaward is not made as on 1-1-2014, the date of commencement ofthe 2013 Act, there is no lapse of proceedings. Compensation hasto be determined under the provisions of the 2013 Act.

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366.2. In case the award has been passed within thewindow period of five years excluding the period covered by aninterim order of the court, then proceedings shall continue asprovided under Section 24(1)(b) of the 2013 Act under the 1894Act as if it has not been repealed.

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366.3. The word “or” used in Section 24(2) betweenpossession and compensation has to be read as “nor” or as “and”.The deemed lapse of land acquisition proceedings under Section24(2) of the 2013 Act takes place where due to inaction ofauthorities for five years or more prior to commencement of thesaid Act, the possession of land has not been taken norcompensation has been paid. In other words, in case possessionhas been taken, compensation has not been paid then there is nolapse. Similarly, if compensation has been paid, possession hasnot been taken then there is no lapse.

366.4. The expression “paid” in the main part of Section24(2) of the 2013 Act does not include a deposit of compensationin court. The consequence of non-deposit is provided in the provisoto Section 24(2) in case it has not been deposited with respect tomajority of landholdings then all beneficiaries (landowners) as onthe date of notification for land acquisition under Section 4 of the1894 Act shall be entitled to compensation in accordance with theprovisions of the 2013 Act. In case the obligation under Section31 of the Land Acquisition Act, 1894 has not been fulfilled, interestunder Section 34 of the said Act can be granted. Non-deposit ofcompensation (in court) does not result in the lapse of landacquisition proceedings. In case of non-deposit with respect tothe majority of holdings for five years or more, compensation underthe 2013 Act has to be paid to the “landowners” as on the date ofnotification for land acquisition under Section 4 of the 1894 Act.

366.5. In case a person has been tendered thecompensation as provided under Section 31(1) of the 1894 Act, itis not open to him to claim that acquisition has lapsed under Section24(2) due to non-payment or non-deposit of compensation in court.The obligation to pay is complete by tendering the amount underSection 31(1). The landowners who had refused to acceptcompensation or who sought reference for higher compensation,cannot claim that the acquisition proceedings had lapsed underSection 24(2) of the 2013 Act.

366.6. The proviso to Section 24(2) of the 2013 Act is tobe treated as part of Section 24(2), not part of Section 24(1)(b).

366.7. The mode of taking possession under the 1894 Actand as contemplated under Section 24(2) is by drawing of inquest AB

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report/memorandum. Once award has been passed on takingpossession under Section 16 of the 1894 Act, the land vests inState there is no divesting provided under Section 24(2) of the2013 Act, as once possession has been taken there is no lapseunder Section 24(2).

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366.8. The provisions of Section 24(2) providing for adeemed lapse of proceedings are applicable in case authoritieshave failed due to their inaction to take possession and paycompensation for five years or more before the 2013 Act cameinto force, in a proceeding for land acquisition pending with theauthority concerned as on 1-1-2014. The period of subsistence ofinterim orders passed by court has to be excluded in thecomputation of five years.

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366.9. Section 24(2) of the 2013 Act does not give rise tonew cause of action to question the legality of concludedproceedings of land acquisition. Section 24 applies to a proceedingDpending 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 reopenconcluded proceedings nor allow landowners to question thelegality of mode of taking possession to reopen proceedings ormode of deposit of compensation in the treasury instead of courtEto invalidate acquisition.”

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3. Even otherwise, it is required to be noted that in the presentcase the possession was taken in respect of the major portion of the landi.e., 19 biswa out of 20 biswa and the possession of one (01) biswa couldnot be taken due to built-up. Even the notice under Section 12(2) wasissued upon the original writ petitioner vide registered post No. 4065dated 27.02.2009, however, when the original writ petition did come tocollect the compensation, it was sent to the revenue deposit. Once thenotice under Section 12(2) of the LA Act was issued and served uponthe original writ petitioner and he was called upon to collect thecompensation and thereafter, when he did not come to collect thecompensation and then the compensation was sent to the revenue deposit,thereafter it would not be open for the original writ petitioner to contendthat as the compensation has not been paid the acquisition proceedingsare deemed to have lapsed. The original writ petitioner cannot be permittedto take the benefit of his own conduct/wrong.

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4. Applying the law laid down by this Court in the case of IndoreDevelopment Authority (supra) and considering the facts narratedhereinabove and more particularly, when the major portion of the land inquestion was taken as far as back on 13.04.2009 by drawing possessionproceedings which is held to be permissible in the case of IndoreDevelopment Authority (supra) and taking into consideration the factthat the notice under Section 12(2) of the LA Act was issued and servedupon the original writ petitioner but he did not collect the compensationand therefore, the same was again sent to the revenue deposit, theimpugned judgment and order passed by the High Court declaring thatthe acquisition in respect of land in question is deemed to have lapsed isunsustainable.

5. In view of the above and for the reasons stated above, thepresent appeal succeeds. The impugned judgment and order passed bythe High Court allowing the writ petition and declaring that the acquisitionin respect of the land in question is deemed to have lapsed under Section24(2) of the Act, 2013 is hereby quashed and set aside. The original writpetition before the High Court stands dismissed. There shall be no deemedlapse of the acquisition with respect to the land in question under Section24(2) of the Act, 2013.

Present appeal is accordingly allowed. No costs.

Pending applications, if any, also stand disposed of.

Ankit Gyan

Appeal allowed.

(Assisted by : Abhishek Agnihotri, LCRA)

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