LAND & BUILDING DEPARTMENT & ANR. versus MANISH SETHI AND ORS. on 17 February 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. 6060 of 2014 by which the High Court has allowed the said writpetition and has declared that the acquisition with respect to the land inquestion is deemed to have lapsed under Section 24(2) of the Right toFair Compensation and Transparency in Land Acquisition, Rehabilitationand Resettlement Act, 2013 (hereinafter referred to as “Act, 2013”),the Land and Building Department and the Land Acquisition Collectorhave preferred the present appeal.

2. From the impugned judgment and order passed by the HighCourt, it is apparent that the High Court has allowed the said writ petitionand has declared that the acquisition with respect to the land in questionis deemed to have lapsed under Section 24(2) of the Act, 2013 relyingupon the decision of this Court in the case of Pune MunicipalCorporation and Anr. Vs. Harakchand Misirimal Solanki and Ors.reported in (2014) 3 SCC 183 and on the ground that the compensationhas not been tendered and/or paid to the landowners. However, it isrequired to be noted that before the High Court, it was the specific caseon behalf of the appellant that the possession of the land in question wastaken on 28.03.2007.

3. The decision of this Court in the case of Pune MunicipalCorporation and Anr. (supra) has been overruled by the ConstitutionBench of this Court in the case of Indore Development AuthorityVs. Manoharlal and Ors. reported in (2020) 8 SCC 129. In paragraphs365 and 366, the Constitution Bench of this Court has observed and heldas under:- “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 Nagar A

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Residential 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.

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

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.

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.

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 the provisions 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 the compensationas provided under Section 31(1) of the 1894 Act, it is not open tohim to claim that acquisition has lapsed under Section 24(2) dueto non-payment or non- deposit of compensation in court. Theobligation to pay is complete by tendering the amount under Section31(1). The landowners who had refused to accept compensationor who sought reference for higher compensation, cannot claimthat 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 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 inquestreport/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).

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.

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 proceeding AB

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Apending 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 courtto invalidate acquisition.”B

4. In view of the above and considering the stand taken by theappellant before the High Court that the possession of the disputed landin question was taken on 28.03.2007 and applying the law laid down bythis Court in the case of Indore Development Authority (supra), theimpugned judgment and order passed by the High Court is unsustainableCand the same deserves to be quashed and set aside and accordingly theimpugned judgment and order passed by the High Court is quashed andset aside. There shall not be any deemed lapse under Section 24(2) ofthe Act, 2013 as held by the High Court.

Present appeal is accordingly allowed. No costs.DPending applications, if any, also stand disposed of.

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Divya Pandey

(Assisted by : Abhishek Pratap Singh, LCRA)

Appeal allowed.

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