Full Judgment Text
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 739 OF 2023
(@ SLP (C) NO. 2491 OF 2023)
(@ DIARY NO. 9638 OF 2021)
Government of NCT of Delhi & Anr. …Appellant(s)
Versus
Shakeel Ahmed & Ors. …Respondent(s)
J U D G M E N T
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. 3539 of 2015 by which the High Court has allowed the said writ
petition preferred by the respondent No. 1 herein – original writ petitioner
and has declared that the land acquisition proceedings initiated under
the Land Acquisition Act, 1894 (hereinafter referred to as “Act, 1894”)
Signature Not Verified
Digitally signed by
Neetu Sachdeva
Date: 2023.02.10
14:58:00 IST
Reason:
with regard to the land in question is deemed to have lapsed under
1
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 Government of NCT of Delhi and Anr.
have preferred the present appeal.
2. From the impugned judgment and order passed by the High Court
and even from the counter affidavit filed before the High Court, it
appears that it was the specific case on behalf of the appellant and
original respondents that the possession of the land in question was
taken on 04.03.1983 and even before the High Court, there was an
ownership dispute insofar as the subject land is concerned between the
original writ petitioner and the original respondent No. 5. However,
despite the above and without going into the controversy of the physical
possession, 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 land acquisition proceedings initiated
under the Act, 1894 of the subject land is deemed to have lapsed under
Section 24(2) of the Act, 2013.
3. At the outset, it is required to be noted that as such the High Court
ought to have first decided the ownership dispute and thereafter ought to
2
have considered the locus of the original writ petitioner. Be that it may,
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 decision 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 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, 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.
4
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
5
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 applying the law laid down by this Court
in the case of Indore Development Authority (supra) and when it was
the specific case on behalf of the appellant and original respondents that
the possession of the land in question was taken on 04.03.1983, the
impugned judgment and order passed by the High Court declaring that
the land acquisition proceedings initiated under the Act, 1894 with
respect to land in question is deemed to have lapsed under Section
24(2) of the Act, 2013 is unsustainable and deserves to be quashed and
set aside and is accordingly quashed and set aside.
Present appeal is accordingly allowed. No costs.
Pending applications, if any, also stand disposed of.
………………………………….J.
[M.R. SHAH]
NEW DELHI; ………………………………….J.
FEBRUARY 09, 2023. [C.T. RAVIKUMAR]
6
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 738 OF 2023
(@ SLP (C) NO. 2490 OF 2023)
(@ DIARY NO. 10604 OF 2021)
Government of NCT of Delhi & Anr. …Appellant(s)
Versus
Sh. Manish & Anr. …Respondent(s)
J U D G M E N T
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. 2846 of 2015 by which the High Court
has allowed the said writ petition preferred by the respondent No.
1 herein – original writ petitioner and has declared that the land
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,
7
Rehabilitation and Resettlement Act, 2013 (hereinafter referred to
as “Act, 2013”), the Government of NCT of Delhi and Anr. have
preferred the present appeal.
2. From the impugned judgment and order passed by the High
Court and even from the counter affidavit filed before the High
Court, it appears that it was the specific case on behalf of the
appellant and original respondents that the possession of the land
in question was taken on 23.02.2007. However, despite the
above, 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 land acquisition
proceedings initiated under the Act, 1894 of the subject land is
deemed to have lapsed under Section 24(2) of the Act, 2013.
3. However, 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 decision of this Court in the
case of Indore Development Authority Vs. Manoharlal and
8
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 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
9
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.
10
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 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 applying the law laid down by this
Court in the case of Indore Development Authority (supra) and
11
when it was the specific case on behalf of the appellant and
original respondents that the possession of the land in question
was taken on 23.02.2007, the impugned judgment and order
passed by the High Court declaring that the land acquisition
proceedings initiated under the Act, 1894 with respect to land in
question is deemed to have lapsed under Section 24(2) of the Act,
2013 is unsustainable and deserves to be quashed and set aside
and is accordingly quashed and set aside.
Present appeal is accordingly allowed. No costs.
Pending applications, if any, also stand disposed of.
………………………………….J.
[M.R. SHAH]
NEW DELHI; ………………………………….J.
FEBRUARY 09, 2023. [C.T. RAVIKUMAR]
12
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 737 OF 2023
(@ SLP (C) NO. 2489 OF 2023)
(@ DIARY NO. 11120 OF 2021)
Government of NCT of Delhi …Appellant(s)
Versus
Subhash Gupta & Ors. …Respondent(s)
J U D G M E N T
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. 2458 of 2015 by which the High Court
has allowed the said writ petition preferred by the respondent No.
1 herein – original writ petitioner and has declared that the land
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
13
Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013 (hereinafter referred to
as “Act, 2013”), the Govt. of NCT of Delhi has preferred the
present appeal.
2. From the impugned judgment and order passed by the High
Court and even so stated in the counter affidavit filed before the
High Court, it appears that the possession of the land in question
could not be taken because of the operation of the stay order in
Writ Petition (C) No. 14129 of 2005 and the same came to be
continued by this Court till 11.02.2015. Therefore, there was a stay
operating against the taking over of the possession even on the
day on which the Act, 2013 came into force. However, despite the
above and relying upon its earlier decision in the case of Jagjit
Singh and Ors. Vs. Union of India and Ors., Writ Petition (C)
No. 2806 of 2004 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 land
acquisition proceedings initiated under the Act, 1894 with respect
to the land in question is deemed to have lapsed under Section
14
24(2) of the Act, 2013 as the physical possession of the subject
land was not taken and the compensation has not been paid.
3. 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 and
the decision of the High Court in the case of Jagjeet Singh and
Ors. (supra) , which has also been relied upon by the High Court
are just contrary to the Constitution Bench decision 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 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.
15
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.
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
16
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
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
17
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. As per the law laid down by this Court in the case of Indore
Development Authority (supra) , the period of stay of taking over
the possession has to be excluded for the purpose of Section
24(2) of Act, 2013. Even otherwise, once having obtained the stay
of possession, thereafter, it will not be open for the landowners to
contend that as the possession (which is not taken due to stay)
has not been taken therefore, there would be lapse under Section
24(2) of the Act, 2013.
5. In view of the above and applying the law laid down by this
Court in the case of Indore Development Authority (supra) , the
18
impugned judgment and order passed by the High Court declaring
that the land acquisition proceedings initiated under the Act, 1894
with respect to land in question is deemed to have lapsed under
Section 24(2) of the Act, 2013 is unsustainable and the same
deserves to be quashed and set aside and is accordingly quashed
and set aside.
Present appeal is accordingly allowed. No costs.
Pending applications, if any, also stand disposed of.
………………………………….J.
[M.R. SHAH]
NEW DELHI; ………………………………….J.
FEBRUARY 09, 2023. [C.T. RAVIKUMAR]
19
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 740 OF 2023
(@ SLP (C) NO. 2493 OF 2023)
(@ DIARY NO. 10609 OF 2021)
Govt. of NCT of Delhi & Anr. …Appellant(s)
Versus
Sh. Narender & Anr. …Respondent(s)
J U D G M E N T
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. 10670 of 2015 by which the High
Court has allowed the said writ petition preferred by the
respondent No. 1 herein – original writ petitioner and has declared
that the land 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
20
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. of NCT of Delhi
and Anr. have preferred the present appeal.
2. From the impugned judgment and order passed by the High
Court and even from the counter affidavit filed before the High
Court, it appears that it was the specific case on behalf of the
appellant and original respondents that the possession of the land
in question was taken on 14.09.2007. However, despite the
above, 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 land acquisition
proceedings initiated under the Act, 1894 of the subject land is
deemed to have lapsed under Section 24(2) of the Act, 2013.
3. However, 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 decision of this Court in the
21
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 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.
22
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
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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 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.”
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4. In view of the above and applying the law laid down by this
Court in the case of Indore Development Authority (supra) and
when it was the specific case on behalf of the appellant and
original respondents that the possession of the land in question
was taken on 14.09.2007, the impugned judgment and order
passed by the High Court declaring that the land acquisition
proceedings initiated under the Act, 1894 with respect to land in
question is deemed to have lapsed under Section 24(2) of the Act,
2013 is unsustainable and deserves to be quashed and set aside
and is accordingly quashed and set aside.
Present appeal is accordingly allowed. No costs.
Pending applications, if any, also stand disposed of.
………………………………….J.
[M.R. SHAH]
NEW DELHI; ………………………………….J.
FEBRUARY 09, 2023. [C.T. RAVIKUMAR]
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