Land Acquisition Collector vs Jai Prakash Tyagi

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 1300 OF 2023 (@ SLP (C) NO. 3853 OF 2023) (@ DIARY NO. 9801 OF 2022)

Land Acquisition Collector …Appellant(s)

Versus

Jai Prakash Tyagi & 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. 2198 of 2015, by which, the High Court has

allowed the said writ petition and has declared that the acquisition

proceedings with respect to the subject lands in question

comprised in Khasra Nos. 35/2/2 (6-04), 36/2/2 (4-13) and 40/2/2

(5-01) total measuring 15 bighas 18 biswa situated in revenue

estate of village Wazirabad are deemed to have lapsed under

Signature Not Verified Section 24(2) of the Right to Fair Compensation and Transparency Digitally signed by R Natarajan

in Land Acquisition, Rehabilitation and Resettlement Act, 2013 Date: 2023.02.24 16:49:47 IST Reason: 1 (hereinafter referred to as “Act, 2013”), the Land Acquisition

Collector, New Delhi has preferred the present appeal.

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

and from the counter affidavit filed on behalf of the LAC (Land

Acquisition Collector) before the High Court, it appears that it was

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

Khasra No. 35/2/2 measuring 6 bighas 04 biswa was taken over

on 22.09.1997; as regards Khasra No. 36/2/2 measuring 4 bighas

13 biswa possession was taken over in respect of 3 bighas of land

on 22.09.1997, however, the possession of 1 bigha 13 biswa out of

that Khasra could not be taken and so far as Khasra No. 40/2/2 is

concerned, the possession was not taken over. It was the case on

behalf of the LAC that the possession with respect to some portion

of the lands could not be taken over due to stay in writ petitions

Nos. 2506/1982 and 3631/1982. Despite the above and without

going into the controversy of physical possession, mainly relying

upon the earlier 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, the High Court

has allowed the writ petition and has declared that the acquisition

with respect to the lands in question is deemed to have lapsed

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

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3. The decision of this Court in the case of Pune Municipal

Corporation (supra) which has been heavily 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 and in paragraphs 365

and 366, this Court 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, (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

3 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.

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,

4 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 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.

5 366.9. 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. Applying the law laid down by this Court in the case of Indore

Development Authority (supra) to the facts of the case on hand,

the High Court has materially erred in declaring that the acquisition

proceedings with respect to the entire land i.e., 15 bigha 18 biswa

are deemed to have lapsed is unsustainable.

5. In view of the above and for the reasons stated above and

applying the law laid down by this Court in the case of Indore

Development Authority (supra), the impugned judgment and

order passed by the High Court is hereby quashed and set aside.

There shall be no deemed lapse with respect to the acquisition

proceedings of the lands in question under Section 24(2) of the

Act, 2013. Consequently, the writ petition preferred by the original

writ petitioner(s) before the High Court stands dismissed. However,

while allowing the present appeal, it is observed that if the original

6 land owners/recorded owners or the person(s) interested are not

paid the compensation, they may be paid the compensation with

respect to the lands in question in accordance with the provisions

of the Land Acquisition Act, 1894 and their prayer(s) be considered

in accordance with law and on their own merits.

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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