High CourtDivision BenchAppeals allowed

DELHI DEVELOPMENT AUTHORITY v. MGS (INDIA) PRIVATE LIMITED & ORS.

Case / Petition Number:Civil Appeal No. 944 of 2023 (with Civil Appeal No. 947 of 2023)
Neutral Citation:[2023] 2 S.C.R. 388

Case Details & Bench

Court
High Court
Hon'ble Judges
  • M. R. Shah
  • C. T. Ravikumar
  • Sanjay Karol
Judgment Date
2023-02-17
Court Decision / Holding
Appeals allowed. The impugned judgment and order of the High Court declaring that the land acquisition is deemed to have lapsed is set aside. There shall not be any deemed lapse of the acquisition proceedings with respect to the land in question. The appeals are allowed. There is no order as to costs. Pending applications, if any, are disposed of.
Final Disposition
Appeals allowed

Parties to the Case

Appellants / Petitioners

  • DELHI DEVELOPMENT AUTHORITY
  • GOVERNMENT OF NCT OF DELHI

Respondents

  • MGS (INDIA) PRIVATE LIMITED
  • And Others

Legal Representation & Advocates

Counsels for Petitioners

  • • Sanjay Poddar, Sr. Adv.
  • • Nitin Mishra
  • • Ishaan Sharma
  • • Govind A Kumar
  • • Ms. Sujeeta Srivastava
  • • Bharat Arora
  • • Abhishek Singh
  • • Gourav Arora

Counsels for Respondents

  • • Vedya Partners (Advocates) for the appearing parties

Case Synopsis & Summary

This civil appeal concerns whether the land acquisition for the land in question can be 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 Delhi High Court, in WP(C) No.910/2015, held that the acquisition was deemed to have lapsed. The Delhi Development Authority (DDA) and Government of NCT of Delhi (GNCTD) appeal, contending that the original writ petitioner before the High Court was a subsequent purchaser who bought after the acquisition proceedings had commenced and after the award was declared; hence the petitioner had no locus to challenge lapsing. They rely on the line of decisions beginning with Shiv Kumar & Anr. v. Union of India & Ors., and Godfrey Philips (I) Ltd. & Ors., to contend that a subsequent purchaser has no locus to seek lapsing. The respondent submits that Shiv Kumar should not be applied in the present facts and that the High Court was correct in relying on Government (NCT of Delhi) v. Manav Dharam Trust (per incuriam). The Court, while recognizing the locus principle in catena of decisions, holds that Manav Dharam Trust is per incuriam and ultimately holds that there shall be no deemed lapse. Consequently, the appeals are allowed, the High Court judgment is set aside, and there is no order as to costs; pending applications are disposed of.

Provisions of Law Cited

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 – Section 24(2)

Legal Doctrines & Maxims

  • per incuriam
  • Locus standi of a subsequent purchaser to challenge lapsing of acquisition

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the original writ petitioner before the High Court was a subsequent purchaser who bought the property after the acquisition proceedings had commenced and after the award was declared; thus, the writ petitioner had no locus to challenge lapsing of the acquisition. They relied on established precedents (Shiv Kumar & Anr.; Godfrey Philips) to argue that a subsequent purchaser cannot seek lapsing. They also treated Manav Dharam Trust as per incuriam, and urged that there should be no deemed lapse. The High Court’s interpretation was therefore unsustainable, and the appeals should be allowed, with the lapsing not being deemed and no costs awarded.

Contentions of Respondents

The respondents submitted that Shiv Kumar should be considered applicable given the facts and title claims; they argued the High Court correctly relied on Manav Dharam Trust, which, in their view, supports lapsing. They urged that the locus to challenge lapsing should be recognized where the holder of title acquired post-notice but pre-award; they emphasized the need to maintain the reasoning in Shiv Kumar and Godfrey Philips, subject to the particular facts of this case.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Shiv Kumar & Anr. v. Union of India & Ors.(2019) 10 SCC 229PositiveUsed as part of the catena of decisions establishing that a subsequent purchaser generally has no locus to challenge lapsing; cited to support the broader rule.
Delhi Development Authority v. Godfrey Philips (I) Ltd. & Ors.Civil Appeal No. 3073 of 2022Positive cited as part of the decisions holding that a subsequent purchaser has limited or no locus to challenge lapsing; supports the line of reasoning.
Government (NCT of Delhi) v. Manav Dharam Trust and Anr.(2017) 6 SCC 751OverruledHeld to be per incuriam by this Court in later decisions, and thus not to be followed in the present matter.

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Extracted Judgment Text

Exact text extracted from official judgment records.

388 SUPREME COURT REPORTS [2023] 2 S.C.R. 388 [2023] 2 S.C.R. A ## DELHI DEVELOPMENT AUTHORITY v. MGS (INDIA) PRIVATE LIMITED & ORS. (Civil Appeal No. 944 of 2023) B FEBRUARY 17, 2023 ## **[M. R. SHAH, C. T. RAVIKUMAR AND SANJAY KAROL, JJ.]** - _Right to far compensation and Transparency in Land_ - _Acquisition, Rehabilitation and Resettlement Act, 2013 – S.24(2) –_ - C _High Court allowed the writ petition and declared that the acquisition with respect to the land in question is deemed to have lapsed by virtue of s.24(2) of the 2013 Act –Before the Supreme Court, the appellant-DDA contended that the original writ petitioner before the High Court was the subsequent purchaser, who admittedly_ - D _purchased the property after the acquisition proceedings commenced and award was declared –Held: The respondent being a subsequent purchaser had no locus to pray for lapsing of the acquisition – Therefore, the impugned judgment of the High Court unsustainable –Accordingly, set aside – There shall not be any deemed lapse of acquisition proceedings with respect to the land in question._ - E _Government (NCT of Delhi) Vs. Manav Dharam Trust and Anr_ ., **(2017) 6 SCC 751 : [2017] 4 SCR 232;** _Shiv Kumar and Anr. Vs. Union of India and Ors.,_ **(2019) 10 SCC 229;** _Delhi Development Authority Vs. Godfrey Philips (I) Ltd. & Ors.,_ **(Civil Appeal No. 3073 of 2022)** - F **– referred to.** ## **Case Law Reference** ## **[2017] 4 SCR 232 referred to Para 5.2** CIVIL APPELLATE JURISDICTION : Civil Appeal No.944 of - G 2023. From the Judgment and Order dated 20.07.2015 of the High Court of Delhi at New Delhi in WP (C) No.910 of 2015. With H Civil Appeal No.947 of 2023. 388 389 DELHI DEVELOPMENT AUTHORITY v. MGS (INDIA) PRIVATE LIMITED & ORS. Sanjay Poddar, Sr. Adv., Nitin Mishra, Ishaan Sharma, Govind A Kumar, Ms. Sujeeta Srivastava, Bharat Arora, Abhishek Singh, Gourav Arora, Vedya Partners for M/s. Vedya Partners, Advs. for the appearing parties. 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 dated 20.07.2015 in Writ Petition (C) No. 910 of 2015 by which the High Court has allowed the said writ petition and has declared that the acquisition with respect to the land in question is deemed to have lapsed by virtue of 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 (DDA) as well as Government of NCT of Delhi have preferred the present appeals. 2. Learned counsel appearing on behalf of the appellants has vehemently submitted that the original writ petitioner before the High Court was the subsequent purchaser, who admittedly purchased the property – land in question after the acquisition proceedings commenced and the award was declared. It is submitted that therefore, the original writ petitioner being a subsequent purchaser had no locus to challenge the acquisition proceedings and/or lapsing of the acquisition proceedings. It is submitted that the aforesaid objection was taken before the High Court and even it was specifically mentioned in the counter before the High Court, however, the Hon’ble High Court has not decided the locus of the original writ petitioner to pray for lapsing of the acquisition being a subsequent purchaser. Reliance is placed on the decisions of this Court in the case of **Shiv Kumar & Anr. Vs. Union of India & Ors., (2019) 10 SCC 229; Delhi Development Authority Vs. Godfrey Phillips (I) Ltd. & Ors., Civil Appeal No. 3073 of 2022** and the subsequent decision in which the aforesaid two decisions have been relied upon. 3. Learned counsel appearing on behalf of the respondent – original writ petitioner though is not disputing that the original writ petitioner was the subsequent purchaser and purchased the land subsequent to the acquisition proceedings. However, he has submitted that the decision of this Court in the case of **Shiv Kumar & Anr. (supra)** shall not be B C D E F G H 390 SUPREME COURT REPORTS [2023] 2 S.C.R. - A applicable inasmuch as in that case, the original writ petitioner had no title and he claimed the title on the basis of the general power of attorney. It is submitted that at the relevant time, the decision of this Court in the case of **Government (NCT of Delhi) Vs. Manav Dharam Trust and Anr., (2017) 6 SCC 751** was on the point, which came to be relied upon by the High Court. - B 4. We have heard the learned counsel appearing for the respective parties. 5. It is not in dispute that the original writ petitioner is the subsequent purchaser, who purchased the land in question subsequent to the acquisition C proceedings and even after the award was declared. Therefore, being a subsequent purchaser, as observed and held by this Court in catena of decisions, more particularly, in the case of **Shiv Kumar & Anr. (supra)** and **Godfrey Phillips (I) Ltd. & Ors. (supra)** and other subsequent decisions, subsequent purchaser has no locus to challenge the lapsing of the acquisition. - D 5.1 The submission on behalf of the respondent that the decision of this Court in the case of **Shiv Kumar & Anr. (supra)** shall not be applicable as in that case, the original writ petitioner claimed the title on the basis of a general power of attorney and in the present case, the subsequent purchaser purchased the property by registered sale deed is E concerned, it is required to be noted that the law laid down by this Court in the aforesaid decision is that a subsequent purchaser has no locus to challenge the acquisition. In the case of **Godfrey Phillips (I) Ltd. & Ors. (supra)** , it is specifically observed and held that the subsequent purchaser has no locus to pray for lapsing of the acquisition. F 5.2 Now, so far as the reliance placed upon the decision of this Court in the case of **Manav Dharam Trust and Anr. (supra)** is concerned, it is required to be noted that the said decision is held to be per incuriam by this Court in the aforesaid decisions. - 5.3 From the impugned judgment and order passed by the High - G Court, it appears that though before the High Court and so stated in the counter, an objection was raised on maintainability of the writ petition, at the instance of the original writ petitioner – subsequent purchaser, the same has not been dealt with by the High Court. The High Court ought to have dealt with the said aspect. Be that it may, the fact remains that the respondent being a subsequent purchaser had no locus to pray for - H 391 DELHI DEVELOPMENT AUTHORITY v. MGS (INDIA) PRIVATE LIMITED & ORS. [M. R. SHAH, J.] lapsing of the acquisition as observed and held by this Court in the A aforesaid decisions. Therefore, the impugned judgment and order passed by the High Court is unsustainable. 6. In view of the above and for the reasons stated above, both these appeals succeed. The impugned judgment and order passed by the High Court is hereby quashed and set aside. There shall not be any B deemed lapse of the acquisition proceedings with respect to the land in question as observed and held by the High Court. Present appeals are accordingly allowed. However, in the facts and circumstances of the case, there shall be no order as to costs. Pending applications, if any, also stand disposed of. C Ankit Gyan (Assisted by : Abhishek Pratap Singh, LCRA) Appeals allowed. D E F G H