High CourtDivision BenchAppeal allowed; no costs; pending applications ...

LAND ACQUISITION COLLECTOR (SOUTH) v. HARI CHAND AND ANR.

Case / Petition Number:Civil Appeal No. 2926 of 2023
Neutral Citation:[2023] 4 SCR 46

Case Details & Bench

Court
High Court
Hon'ble Judges
  • M. R. Shah
  • Ahsanuddin Amanullah
Judgment Date
2023-04-19
Court Decision / Holding
Appeal allowed. The impugned High Court judgment is quashed and set aside. There shall not be any deemed lapse of acquisition with respect to the land in question. Present appeal is accordingly allowed. No costs. Pending applications, if any, also stand disposed of.
Final Disposition
Appeal allowed; no costs; pending applications disposed

Parties to the Case

Appellants / Petitioners

  • LAND ACQUISITION COLLECTOR (SOUTH)

Respondents

  • Hari Chand
  • Anr.

Legal Representation & Advocates

Counsels for Petitioners

  • • Chandra Prakash
  • • C. P. Rajwar
  • • Vivek Singh
  • • Ms. Somi Sharma

Counsels for Respondents

  • • H Nitin Mishra
  • • Ishaan Sharma

Case Synopsis & Summary

The Land Acquisition Collector (South), New Delhi, appeals the High Court of Delhi’s order in Writ Petition (C) No. 3435 of 2016, which held that the land acquisition for the subject land 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 (Act, 2013). The appellant contends that possession of the land was taken on 14 July 1987 and that the High Court’s reliance on Pune Municipal Corporation v. Harakchand Misirimal Solanki (2014) 3 SCC 183, which linked non-payment of compensation to deemed lapse, was misplaced. The Constitution Bench in Indore Development Authority v. Manoharlal and Ors. (2020) 8 SCC 129 overruled Pune’s reasoning and clarified the correct interpretation of Section 24(2): deemed lapse requires five years of inaction prior to 1-1-2014 where neither possession has been taken nor compensation paid, with various nuanced readings of the word “or.” The Court held that where possession was taken long before the Act’s enforcement, there is no deeming lapse. Applying Indore to the facts, the possession having been taken in 1987, the impugned High Court judgment is unsustainable. The appeal succeeds; the impugned judgment is quashed and set aside, with no deemed lapse. The appeal is allowed; no costs; pending applications, if any, are disposed of.

Provisions of Law Cited

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 – s.24(2)Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 – s.24(1)(a)Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 – s.24(1)(b)Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 – proviso to s.24(2)Land Acquisition Act, 1894 – Section 4Land Acquisition Act, 1894 – Section 16Land Acquisition Act, 1894 – Section 31(1)Land Acquisition Act, 1894 – Section 34

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant argues that possession of the land was taken on 14 July 1987 and that the High Court’s reliance on Pune Municipal Corporation v. Harakchand Misirimal Solanki (2014) 3 SCC 183 - which held that non-payment of compensation can trigger a deemed lapse - is based on authority overruled by the Constitution Bench in Indore Development Authority v. Manoharlal and Ors. (2020) 8 SCC 129. The Constitution Bench clarified that deemed lapse under Section 24(2) arises only in the context of five years of inaction prior to 1-1-2014 where neither possession has been taken nor compensation paid; it further held that where possession has been taken, non-payment does not cause lapse, and there are nuanced readings of the word “or.” Applying this to the facts—possession long since taken—the acquisition cannot lapse. The appellant seeks to have the High Court’s order set aside and the proceedings continue under the 2013 Act; the decision in Indore should govern the result.

Contentions of Respondents

The respondents argued that the High Court correctly held that the acquisition had lapsed under Section 24(2) due to non-payment of compensation. They relied on the Pune decision as controlling and contended that the five-year clock and the inaction provisions within the 2013 Act should lead to lapse. They asserted that non-deposit of compensation (and non-payment) in the relevant period triggers lapse, and that the protection offered by the proviso to Section 24(2) concerns only certain landowners and does not revive stale claims that were concluded before 2014. They maintained that the relief sought by the appellant would undermine the statutory framework and the remedy under the 1894 Act and 2013 Act as applied to those holdings where compensation remained unpaid or was paid but possession not taken.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Pune Municipal Corporation v. Harakchand Misirimal Solanki(2014) 3 SCC 183; [2014] 1 SCR 783OverruledConstitution Bench in Indore Development Authority overruled Pune’s view and related precedents.
Indore Development Authority v. Manoharlal and Ors.(2020) 8 SCC 129; [2020] 3 SCR 1PositiveConstitution Bench reasoning applied; controls disposition and rejects Pune’s approach.
Sree Balaji Nagar Residential Assn. v. State of Tamil Nadu(2015) 3 SCC 353; [2015] 3 SCROverruledCannot be said to be good law; overruled by present judgment.
Indore Development Authority v. Shailendra(2018) 3 SCC 412; [2018] 3 SCR 412OverruledCannot prevail in light of the present judgment’s discussion.

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Extracted Judgment Text

Exact text extracted from official judgment records.

46 SUPREME COURT REPORTS[2023] 4 S.C.R. 46 [2023] 4 S.C.R. A ## LAND ACQUISITION COLLECTOR (SOUTH) v. ## HARI CHAND AND ANR. (Civil Appeal No. 2926 of 2023) B APRIL 19, 2023 ## **[M. R. SHAH AND AHSANUDDIN AMANULLAH, JJ.]** - _Right to Fair Compensation and Transparency in Land_ - _Acquisition, Rehabilitation and Resettlement Act, 2013 – s.24(2) – High Court relying on the decision of Supreme Court in_ Pune - C Municipal Corporation and Anr. v. Harakchand Misirimal Solanki and Ors. _reported as_ [2014] 1 SCR 783 _declared that the acquisition proceeding initiated w.r.t the land in question is deemed to have lapsed u/s.24(2) – On appeal, held: Decision in_ Pune Municipal Corporation _case has been overruled by the Constitution Bench in_ - D Indore Development Authority v. Manoharlal and Ors. _reported as_ [2020] 3 SCR 1 _– Applying the law laid down therein to the present case and the fact that the possession of the land in question was taken over, there shall not be any deemed lapse of acquisition – Impugned judgment set aside._ - _Indore Development Authority vs. Manoharlal and Ors._ - E **(2020) 8 SCC 129: [2020] 3 SCR 1 –followed.** _Pune Municipal Corporation and Anr. Vs. Harakchand Misirimal Solanki and Ors._ **(2014) 3 SCC 183 : [2014] 1 SCR 783 – referred to.** |F<br>**[2014] 1 SCR 783**<br>**[2020] 3 SCR 1**|**Case Law Reference**<br>**referred to**<br>**Para 2**<br>**followed**<br>**Para 2.1**| |---|---| CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2926 of 2023. G From the Judgment and Order dated 13.11.2017 of the High Court of Delhi at New Delhi in WPC No. 3435 of 2016. Chandra Prakash, C. P. Rajwar, Vivek Singh, Ms. Somi Sharma, Advs. for the Appellant. - H Nitin Mishra, Ishaan Sharma, Advs. for the Respondents. 46 LAND ACQUISITION COLLECTOR (SOUTH) v. HARI CHAND 47 AND ANR. The Judgment of the Court was delivered by A ## **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. 3435 of 2016 by which the High Court has allowed the said writ petition and has declared that the acquisition 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 Land Acquisition Collector (South), New Delhi has preferred the present appeal. 2. From the impugned judgment and order passed by the High Court and even as per the counter affidavit filed on behalf of the Land Acquisition Collector before the High Court, it was the case on behalf of the appellant that the physical possession of the subject land was taken over and handed over to the beneficiary department on 14.07.1987. However, thereafter and relying upon the decision of this Court in the case of **Pune Municipal Corporation and Anr. Vs. Harakchand Misirimal Solanki and Ors., (2014) 3 SCC 183** , 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 on the ground that the compensation with respect to the land in question had not been paid. 2.1 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., (2020) 8 SCC 129** . In paragraphs 365 and 366, the Constitution Bench of 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 B C D E F G H 48 SUPREME COURT REPORTS [2023] 4 S.C.R. A B 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: C **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 D 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 E 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, F 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. G H **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 LAND ACQUISITION COLLECTOR (SOUTH) v. HARI CHAND 49 AND ANR. [M. R. SHAH, J.] 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 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 A B C D E F G H 50 SUPREME COURT REPORTS [2023] 4 S.C.R. - A 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.” 3. Applying the law laid down by this Court in the case of **Indore** B **Development Authority (supra)** to the facts of the case on hand and the fact that the possession of the land in question was taken over on 14.07.1987, there shall not be any deemed lapse of acquisition as observed and held by the High Court. Under the circumstances, the impugned judgment and order passed by the High Court is unsustainable. - C 4. In view of the above and for the reasons stated above, present appeal succeeds. The impugned judgment and order passed by the High Court is hereby quashed and set aside. There shall not be any deemed lapse of acquisition with respect to the land in question. Present appeal is accordingly allowed. No costs. - D Pending applications, if any, also stand disposed of. Divya Pandey Appeal allowed. (Assisted by : Abhishek Agnihotri and Shevali Monga, LCRAs) E F G H