High CourtDivision BenchAppeal allowed.

Delhi Development Authority v. Bhagi Singh and Ors.

Case / Petition Number:Civil Appeal No.366 of 2023
Neutral Citation:[2023] 1 S.C.R. 783

Case Details & Bench

Court
High Court
Hon'ble Judges
  • M. R. Shah
  • C. T. Ravikumar
Judgment Date
2023-01-20
Court Decision / Holding
Appeal allowed. High Court’s judgment declaring lapse under Section 24(2) of the 2013 Act is quashed; contentions that possession was taken suffice to negate lapse; Indore Development Authority decision followed; No costs. Pending applications, if any, disposed of.
Final Disposition
Appeal allowed.

Parties to the Case

Appellants / Petitioners

  • Delhi Development Authority

Respondents

  • Bhagi Singh
  • and others

Legal Representation & Advocates

Counsels for Petitioners

  • • Nidhi Jain
  • • Abhishek Agnihotri (LCRA)

Counsels for Respondents

  • • Atul Kumar
  • • Ms. Sweety Singh
  • • Ms. Archana Kumari
  • • Rahul Pandey
  • • Avs Kadyan
  • • Rajiv Ranjan
  • • Mishra Saurabh
  • • Ms. Sujeeta G Srivastava
  • • Nishit Agrawal
  • • Ms. Kanishka Mittal
  • • Ms. Vanya Agrawal
  • • Ashwani Kumar
  • • Anshay Dhatwalia
  • • Ms. Binu Tamta
  • • Ms. Smita Maan
  • • Nitin Mishra
  • • Ishaan Sharma
  • • Mohit Kumar Gupta
  • • Shekhar Yadav
  • • Ms. Iti Sharma
  • • Rahul Bhatia
  • • Rachita Kadyan
  • • N. S. Vashist
  • • Gagan Gupta
  • • Ms. Astha Tyagi
  • • Dinesh Chander Trehan
  • • Ms. Diksha Narula

Case Synopsis & Summary

This Civil Appeal arises from a Delhi High Court writ petition challenging a land acquisition order under the Land Acquisition Act, 1894, for land described in Khasra No. 28. The High Court held that the acquisition proceedings were deemed to have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the 2013 Act) because no physical possession was taken and five years had elapsed without compensation. The Delhi Development Authority (appellant) contends that the High Court’s finding is contrary to law and, in particular, to the Constitution Bench decision in Indore Development Authority v. Manoharlal and Ors. (2020) 8 SCC 129, which provides the framework for assessing lapses under 24(2). The Court notes that possession of the land was taken by the DDA through the Land Acquisition Collector/L&B Department on 21.03.2007, evidenced by panchnama and a possession report, which the Constitution Bench in Indore Dev. Authority acknowledged as permissible taking of possession. The judgment emphasizes that non-deposit of compensation in court does not, by itself, trigger lapse, and that the proviso to Section 24(2) is part of Section 24(2). Following Indore Dev. Authority, the Court holds that the High Court’s order is unsustainable and allows the appeal, quashing the impugned order. It directs no costs and disposes of pending applications.

Provisions of Law Cited

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24(2)Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24(1)(a)Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24(1)(b)Proviso to Section 24(2)Land Acquisition Act, 1894 - Section 16Land Acquisition Act, 1894 - Section 31Land Acquisition Act, 1894 - Section 34Land Acquisition Act, 1894 - Section 4enforcement date 1-1-2014

Legal Doctrines & Maxims

  • Possession taken under the 1894 Act vests land in the State; once possession has been taken there is no lapse under Section 24(2) of the 2013 Act.
  • Non-deposit of compensation in court does not by itself cause lapse under Section 24(2).
  • Proviso to Section 24(2) is part of Section 24(2) and not part of Section 24(1)(b).
  • If possession has been taken and compensation not yet paid, there is no lapse under Section 24(2); if compensation has been paid but possession not taken, there is no lapse.
  • The deemed lapse under Section 24(2) applies to inaction for five years prior to 1-1-2014 where possession and payment have not occurred; interim orders’ periods are excluded.
  • A tender of compensation under Section 31(1) completes the obligation; refusal to accept or pursue higher compensation does not by itself open a lapse under 24(2).

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the High Court’s declaration of lapse under Section 24(2) is unsustainable and contrary to binding precedents, particularly the Constitution Bench decision in Indore Development Authority v. Manoharlal and Ors. It argues that possession, evidenced by panchnama and possession reports under the Land Acquisition Act, 1894, was taken (21.03.2007), which negates lapse under 24(2). It emphasizes that Section 24(2) is to be read with its proviso, and non-deposit of compensation in court does not automatically cause lapse; the five-year period for inaction prior to 2014 should be evaluated with the ongoing possession and payments under 1944 Act provisions, and the 2013 Act’s transitional questions are addressed by Indore Dev. Authority.

Contentions of Respondents

The respondents maintain that the 2013 Act’s Section 24(2) deems lapse when five years pass without possession or compensation; they contend the High Court correctly found lapse due to lack of physical possession, and that the 2014 Act should not override conclusions reached by the pre-2014 regime without clear legislative intent; they emphasize the need to harmonize 24(2) with 24(1)(a) and (b) to avoid re-opening closed proceedings. They rely on the statutory wording and the transitional arrangements to argue for lapse in cases where possession was not legally completed or where compensation was not effectively paid.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Indore Development Authority Vs. Manoharlal and Ors.(2020) 8 SCC 129PositiveConstitution Bench decision cited and applied to interpret Section 24(2) and the lapse provisions; followed by the present judgment.

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Extracted Judgment Text

Exact text extracted from official judgment records.

783 [2023] 1 S.C.R. 783 ## DELHI DEVELOPMENT AUTHORITY A v. ## BHAGI SINGH AND ORS. (Civil Appeal No. 366 of 2023) JANUARY 20, 2023 B ## **[M. R. SHAH AND C. T. RAVIKUMAR, JJ.]** _Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: s. 24(2) – Land acquisition, when deemed to have lapsed – Writ petition by the writ petitioner seeking declaration that acquisition proceedings pertaining to subject land is deemed to have lapsed in view of s.24(2) – High Court held the acquisition is deemed to have lapsed on the ground that no physical possession was taken in respect of the suit land – Sustainability of – Held: Not sustainable – Impugned Judgment contrary to law laid down by this Court in the Constitution Bench decision in the_ Indore Development Authority’s _case – Possession of the land was taken over by DDA through LAC/ L&B Department by drawing panchnama and preparing the possession report which is permissible_ – _Thus, order passed by the High Court is quashed and set aside – Land Acquisition Act, 1894._ C D E _Indore Development Authority Vs. Manoharlal and Ors,_ ## **(2020) 8 SCC 129 – followed.** ## **Case Law Reference** **(2020) 8 SCC 129 followed Para 4** CIVIL APPELLATE JURISDICTION : Civil Appeal No.366 of 2023. F From the Judgment and Order dated 25.07.2017 of the High Court of Delhi at New Delhi in WP (C) No.8291 of 2015. Atul Kumar, Ms. Sweety Singh, Ms. Archana Kumari, Rahul Pandey, Avs Kadyan, Rajiv Ranjan, Mishra Saurabh, Ms. Sujeeta G Srivastava, Nishit Agrawal, Ms. Kanishka Mittal, Ms. Vanya Agrawal, Ashwani Kumar, Anshay Dhatwalia, Ms. Binu Tamta, Ms. Smita Maan, Nitin Mishra, Ishaan Sharma, Mohit Kumar Gupta, Shekhar Yadav, Ms. Iti Sharma, Rahul Bhatia, Rachita Kadyan, N. S. Vashist, Gagan Gupta, Ms. Astha Tyagi, Dinesh Chander Trehan, Ms. Diksha Narula, Advs. for the appearing parties. H 783 784 SUPREME COURT REPORTS [2023] 1 S.C.R. A The Judgment of the Court was delivered by ## **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. 8291 of 2015 by which the High Court has allowed the B said writ petition and has declared that the acquisition proceedings initiated under the Land Acquisition Act, 1894 (hereinafter referred to as “Act, 1894”) with regard 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 Delhi Development Authority C (DDA) has preferred the present appeal. 2. We have heard the learned counsel for the respective parties. 3. From the impugned judgment and order passed by the High Court, it appears and so stated in the affidavit filed by the Land Acquisition Collector (LAC)before the High Court that the possession of the land in D question – Khasra No. 28 was taken over by the DDA through LAC/ L&B Department on 21.03.2007. Despite the above, the High Court has declared that the acquisition with respect to the land in question is deemed to have lapsed on the ground that no physical possession was taken in respect of the suit land. E F G 4. The impugned judgment and order passed by the High Court is just contrary to the law laid down by this Court in the Constitution Bench decision in the case of **Indore Development Authority Vs. Manoharlal and Ors., (2020) 8 SCC 129.** 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. **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. H DELHI DEVELOPMENT AUTHORITY v. BHAGI SINGH AND 785 ORS. [M. R. SHAH, J.] **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). 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. A B C D E F G **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 H 786 SUPREME COURT REPORTS [2023] 1 S.C.R. A B C D E 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.” 5. Applying the law laid down by this Court in the case of **Indore Development Authority (supra)** to the facts of the case on hand, more particularly, when the possession of the land in question is held to have been taken over by the DDA through LAC/ L&B Department on 21.03.2007 by drawing the panchnama and preparing the possession F report, which is held to be permissible as observed and held by this court in the aforesaid decision. 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, G Present appeal is accordingly allowed. No costs. Pending application, if any, also stands disposed of. Nidhi Jain (Assisted by : Abhishek Agnihotri, LCRA) H Appeal allowed.