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Government Of Nct Of Delhi vs Ram Prakash Sehrawat

Supreme Court15 December 2022S. Ravindra Bhat · M.R. Shah

Ratio decidendi

The rule this decision rests on

Under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, the word "or" between the conditions of possession and compensation must be read as "nor" or "and," so that deemed lapse of land acquisition proceedings occurs only where the authorities have failed due to inaction for five years or more prior to the commencement of the 2013 Act to take possession of the land AND pay compensation; consequently, if possession has been taken, the acquisition does not lapse merely because compensation has not been paid, and conversely, if compensation has been paid, the acquisition does not lapse merely because possession has not been taken. Once an award has been passed and possession of land has been taken by drawing an inquest report or memorandum under Section 16 of the Land Acquisition Act, 1894, the land vests in the State, and there is no divesting of that land provided under Section 24(2) of the 2013 Act; therefore, no lapse of acquisition proceedings occurs under Section 24(2) merely on the ground of non-payment of compensation where possession has already been taken. Section 24(2) of the 2013 Act does not give rise to a new cause of action to question the legality of concluded proceedings of land acquisition or to reopen proceedings in which the mode of taking possession or mode of deposit of compensation in the treasury is challenged; it applies only to proceedings pending on the date of enforcement of the 2013 Act, i.e., 1-1-2014.

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. 9201 OF 2022 (@ SLP (C) No. 23380 of 2022) (@ Diary No. 27928 of 2022)

Govt of NCT of Delhi Through Secretary, Land and Building Department and Anr. …Appellant(s)

Versus

Ram Prakash Sehrawat and 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. 4952 of 2015 by which the High Court has allowed the said writ

petition preferred by the respondent Nos.1 and 2 herein and has

declared that the acquisition with respect to the land in question is

deemed 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 Govt. Signature Not Verified Digitally signed by R Natarajan Date: 2022.12.15 18:15:18 IST Reason: 1 of NCT of Delhi (Land and Building Department) and the Land

Acquisition Collector have preferred the present appeal.

2. At the outset, it is required to be noted that in the present case, the

notification under Section 4 of the Land Acquisition Act, 1894

(hereinafter referred to as “Act, 1894) was issued on 23.01.1965 and the

award was declared, followed by Section 12(2) notice on 19.09.1986.

As per the counter affidavit filed by the appellants before the High Court,

the possession of the land in question was taken and handed over to the

DDA on 22.09.1986. After a period of approximately 29 years of passing

of the award and taking over of possession, the respondent Nos. 1 and 2

approached the High Court by way of present writ petition and prayed

that the acquisition with respect to the land in question is deemed to

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

judgment and order, though the High Court has referred to the counter

affidavit filed on behalf of the appellants filed before the High Court, in

which it was specifically stated that the possession of the land in

question was taken over and handed over to the DDA on 22.09.1986,

however, thereafter without further entering into the question of taking

over the possession, by the impugned judgment and order, the High

Court has relied upon the decision of this Court in the case of Pune

Municipal Corporation and Anr. Vs. Harakchand Misirimal Solanki

and Ors. reported in (2014) 3 SCC 183 and has declared that the

2 acquisition with respect to the land in question is deemed to have lapsed

under Section 24(2) of the Act, 2013 solely on the ground that the

compensation has not been paid to the recorded owners.

3. It is the case on behalf of the respondent Nos. 1 and 2 that the

actual possession of the land in question was not taken over and that

there is an illegal residential colony on the land in question for which the

regularization proceedings are going on and a writ petition is pending for

the same before the High Court. However, it is required to be noted that

it was the specific case on behalf of the appellants and as so mentioned

in the counter affidavit filed before the High Court that the possession of

the land in question was taken over and handed over to the DDA on

22.09.1986, and, therefore, the alleged possession of the acquired land

and the status of the original writ petitioners are nothing but one having

illegal possession and unlawful encroachment on the Government land.

3.1 At this stage, it is required to be noted that before the High Court

and even before this Court, possession proceedings have been placed

on record to show that the possession of the land in question alongwith

other lands were taken over and handed over to the Land and Building

Department on 22.09.1986. Apart from the same, even, according to the

respondent Nos. 1 and 2, a Writ Petition No. 9366 of 2005 for

regularization of the illegal construction of the residential colony on the

3 land in question is still pending in the High Court. Meaning thereby, the

original writ petitioners – respondent Nos. 1 and 2 admit that the

possession and construction on the land in question is illegal. From the

aforesaid, it can be seen that there may be an illegal residential colony in

which some other persons might be staying. Therefore, it cannot be

believed that the respondent Nos. 1 and 2 – original writ petitioners are

in possession of the land in question and/or at the relevant time

possession was not taken.

3.2 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. It is required to be noted that the decision of this Court in

the case of Pune Municipal Corporation and Anr. (supra), which has

been relied upon by the High Court while passing the impugned

judgment and order has been specifically overruled by the Constitution

Bench of this Court in the case of Indore Development Authority Vs.

Manoharlal and Ors. reported in (2020) 8 SCC 129. In paragraphs 365

and 366, the Constitution Bench of this Court in the case of Indore

Development Authority (supra) has observed and held as under:-

“365. Resultantly, the decision rendered in Pune Municipal Corpn. [Pune Municipal Corpn. v. Harakchand Misirimal Solanki, (2014) 3 SCC 183] is hereby overruled and all other decisions in which Pune Municipal Corpn. [Pune Municipal Corpn. v. Harakchand Misirimal Solanki,

4 (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 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 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 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 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.

5 366.4. 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). 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

6 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.”

4. In view of the above and for the reasons stated above and without

commenting upon the pending writ petition, pending before the High

Court being Writ Petition No. 9366 of 2005, we set aside the impugned

judgment and order passed by the High Court in Writ Petition (C) No.

4952 of 2015 declaring that the acquisition with respect to the land in

question is deemed to have lapsed under Section 24(2) of the Act, 2013.

Present appeal is accordingly allowed. However, in the facts and

circumstances of the case, there shall be no order as to costs.

7 Pending applications, if any, also stand disposed of.

………………………………….J. [M.R. SHAH]

NEW DELHI; ………………………………….J. DECEMBER 15, 2022. [S. RAVINDRA BHAT]

8

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