214 [2023]REPORTS

SUPREME COURT 2 S.C.R. 214 [2023] 2 S.C.R.

A GOVERNMENT OF NCT DELHI & ORS.

v.
JAI PAL
(Civil Appeal No. 1616 of 2023)
B MARCH 13, 2023
[M. R. SHAH AND MANOJ MISHRA, JJ.]
Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 – s.24(2) –
It was specific case on behalf of the appellants-Government of NCT
C
Delhi that possession of the land was taken – High Court relying
upon Pune Municipal Corporation & Anr. v. Harakchand Misrimal Solanki
& ors allowed the writ petition preferred by the respondent/original
writ petitioner – High Court held that the acquisition proceedings
in respect of land in question deemed to have lapsed u/s. 24(2) of
D 2013 Act on the ground that the compensation has not been paid to
the original petitioner – On appeal, held: The decision in the case
Pune Municipal Corporation has been overruled by the Constitution
Bench in the case of Indore Development Authority v. Manoharlal and
Ors. – Applying the law laid down in Indore Development Authority
to the facts of the case, as the possession of the land in question
E
was taken, there shall not be any deemed lapse u/s. 24(2) of Act,
2013 – Order of the High Court is set aside – Appeal allowed.
Indore Development Authority v. Manoharlal & Ors.
(2020) 8 SCC 129 : [2020] 3 SCR 1 – followed.
F Pune Municipal Corporation & Anr. v. Harakchand
Misrimal Solanki & Ors. (2014) 3 SCC 183 – referred
to.
Case Law Reference
[2020] 3 SCR 1 followed Para 2.1, 3
G
(2014) 3 SCC 183 referred to Para 2, 2.1
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1616
of 2023.

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214
 GOVERNMENT OF NCT DELHI & ORS. v. JAI PAL 215

From the Judgment and Order dated 13.02.2017 of the High Court A
of Delhi at New Delhi in Writ Petition (C) No. 4776 of 2015.
Ms. Sujeeta Srivastava, Adv. for the Appellants.
The Judgment of the Court was delivered by
M. R. SHAH, J. B
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. 4776 of 2015 by which the High Court has allowed the said writ
petition and has declared that the acquisition proceedings initiated under
the Land Acquisition Act, 1894 (hereinafter referred to as “Act, 1894”) C
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 Government of NCT of Delhi and Ors.
have preferred the present appeal.
D
2. From the impugned judgment and order passed by the High
Court, it appears that it was the specific case on behalf of the appellants
herein – original respondents that the possession of the land in question
was taken on 11.07.2008. However, thereafter without going into the
controversy of physical possession, the High Court has allowed the writ
petition and has declared that the acquisition with respect to the land in E
question is deemed to have lapsed under Section 24(2) of the Act, 2013
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 and on the ground that the compensation has not
been paid. F
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, has been 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
G
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.
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216 SUPREME COURT REPORTS [2023] 2 S.C.R.

A 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
B
[(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.
C 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
D 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
E 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
F 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
G 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
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GOVERNMENT OF NCT DELHI & ORS. v. JAI PAL 217
[M. R. SHAH, J.]

majority of landholdings then all beneficiaries (landowners) as on A

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
B
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 C
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 D
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). E
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 F
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 G
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.
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218 SUPREME COURT REPORTS [2023] 2 S.C.R.

A 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
B
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
Development Authority (supra) to the facts of the case on hand and
C more particularly, when the appellants herein – original respondents
claimed that the possession of the land in question was taken on
11.07.2008, there shall not be any deemed lapse under Section 24(2) of
the Act, 2013. Under the circumstances, the impugned judgment and
order passed by the High Court is unsustainable and the same deserves
D to be quashed and set aside and is accordingly quashed and set aside.
There shall not be any deemed lapse of the acquisition with respect to
the land in question. The original writ petition before the High Court
stands dismissed.
Present appeal is accordingly allowed. No costs.
E Pending application, if any, also stands disposed of.

Ankit Gyan Appeal allowed.

(Assisted by : Abhishek Pratap Singh, LCRA)