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Delhi Development Authority vs Amit Jain

Supreme Court24 February 2023C.T. Ravikumar · M.R. Shah

Ratio decidendi

The rule this decision rests on

Where physical possession of land has been taken by the acquiring authority through drawing of punchnama or possession proceedings prior to the commencement of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, there is no deemed lapse of the land acquisition proceedings under Section 24(2) of that Act, even if compensation has not been paid or tendered to the landowners, provided the award was made before 1 January 2014.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

REPORTABLE
IN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 1360 OF 2023 (@ SLP (C) NO. 4000 OF 2023) (@ DIARY NO. 25773 OF 2022)

Delhi Development Authority …Appellant(s)

Versus

Amit Jain & Ors. …Respondent(s)

JUDGMENT

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. 5061 of 2016, by which, the High Court has

allowed the said writ petition and has declared that the

acquisition of suit land measuring 3 bighas and 18 biswas in

Khasra Nos. 10/20/2/1 (2-00) and 21/1 (1-18) and 17/1 (1-9) and

land measuring 1 bigha and 9 biswas in Khasra No. 17/1/1 (2-01)

vide award No. 04/2008-09 dated 31.10.2008 is deemed to have

Signature Not Verified lapsed by virtue of Section 24(2) of the Right to Fair Digitally signed by R Natarajan

Compensation and Transparency in Land Acquisition, Date: 2023.02.24 16:49:50 IST Reason:

Rehabilitation and Resettlement Act, 2013 (hereinafter referred to

1 as “Act, 2013”), the Delhi Development Authority has preferred

the present appeal.

2. From the impugned judgment and order passed by the High

Court and from the counter affidavit filed by the Govt. of Delhi

through LAC before the High Court, it appears that it was the

specific case on behalf of the LAC that the physical possession of

the property/land bearing Khasra Nos. 17/1/1 min (1-18),

10/20/2/1 (2-0), 21/1 (1-18) was duly taken over by the

Government on 29.01.2010. However, remaining 3 biswa land

comprised in Khasra No. 17/1/1 was not taken over due to built-

up. Despite the above and thereafter following the earlier

decision of this Court in the case of Pune Municipal

Corporation and Anr. Vs. Harakchand Misirimal Solanki and

Ors., (2014) 3 SCC 183, on the ground that the compensation

with respect to the lands in question is not paid/tendered to the

land owners, the High Court has allowed the writ petition and has

declared that the entire acquisition with respect to the land

measuring 3 bighas and 18 biswas in Khasra Nos. 10/20/2/1 (2-

00) and 21/1 (1-18) and 17/1 (1-9) and land measuring 1 bigha

and 9 biswas in Khasra No. 17/1/1 (2-01) is deemed to have

lapsed under Section 24(2) of the Act, 2013.

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3. Learned counsel appearing on behalf of the original writ

petitioners disputed the actual taking over of possession and

submitted that the possession was taken over by drawing

proceedings. However, as observed and held by this Court in the

case of Indore Development Authority Vs. Manoharlal and

Ors., (2020) 8 SCC 129 taking over the physical possession by

drawing the punchnama/possession proceedings can be said to

be sufficient compliance. Therefore, except the remaining 3

biswa land comprised in Khasra No. 17/1/1 which was not taken

over due to built-up, the possession of the other lands in question

were taken by the Government on 29.01.2010. Under the

circumstances, the acquisition with respect to the entire lands in

question could not have been declared as deemed lapse under

Section 24(2) of the Act, 2013.

4. In the case of Indore Development Authority (supra) in

paragraph 366, 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:

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.

3 366.2. In case the award has been passed within the window period of five years excluding the period covered by 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 “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 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 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 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 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 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 31(1).

4 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 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 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 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.

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 of taking possession to reopen proceedings or mode of deposit of compensation in the treasury instead of court to invalidate acquisition.”

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5. Applying the law laid down by this Court to the facts of the case

on hand and considering the fact that except the 3 biswa land

comprised in Khasra No. 17/1/1 which was not taken due to built-

up, the possession of the other lands in question was taken over

by the Government on 29.01.2010, there shall be no deemed

lapse with respect to the entire acquisition of the lands in

question under Section 24(2) of the Act, 2013. Under the

circumstances, the impugned judgment and order passed by the

High Court is unsustainable and the same deserves to be

quashed and set aside and is accordingly quashed and set aside.

Present appeal is accordingly allowed. No costs.

Pending applications, if any, also stand disposed of.

………………………………….J. [M.R. SHAH]

NEW DELHI; ………………………………….J. FEBRUARY 24, 2023. [C.T. RAVIKUMAR]

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