DELHI DEVELOPMENT AUTHORITYversusASHA PRAKASH

                          [2023] 1 S.C.R. 919                            919


             DELHI DEVELOPMENT AUTHORITY                                 A
                                  v.
                         ASHA PRAKASH
                   (Civil Appeal No. 364 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) –Writ petition
was preferred by original writ petitioner-subsequent purchaser –
                                                                         C
High Court relying upon Pune Municipal Corporation & Anr. vs
Harakchand Misrimal Solanki & Ors allowed the writ petition preferred
by the respondent/original writ petitioners and held that the
acquisition proceedings in respect of land in question is deemed to
have lapsed u/s.24(2) of 2013 Act as compensation was not paid to
the original landowners – On appeal, held : The subsequent               D
purchaser has no locus to challenge the acquisition/lapse of
acquisition – Thus, High Court committed an error in entertaining
the writ petition preferred by the respondent no.1 – Also, applying
the law laid by Supreme Court in Indore Development Authority, which
has overruled the decision in Pune Municipal Corporation, to the facts
of the instant case – Impugned judgment and order of the High            E
Court unsustainable – Appeal allowed.
      Indore Development Authority vs. Manoharlal & Ors.
      (2020) 8 SCC 129 : [2020] 3 SCR 1 – followed.
      Government (NCT of Delhi) vs. Manav Dharam Trust                   F
      and Anr., (2017) 6 SCC 751– held not good law.
      Pune Municipal Corporation & Anr. vs. Harakchand
      Misrimal Solanki & ors (2014) 3 SCC 183 : [2014] 1
      SCR 783; Shiv Kumar and Anr. vs. Union of India and
      Ors., (2019) 10 SCC 229; Delhi Development Authority               G
      vs. Godfrey Philips (I) Ltd. & Ors., (Civil Appeal No.
      3073 of 2022 decided by the Supreme Court); Delhi
      Administration Thr. Secretary, Land and Building
      Department & Ors. vs. Pawan Kumar & Ors., (Civil
      Appeal No. 3646 of 2022 decided by the Supreme
      Court) – referred to.                                              H
                                919
920             SUPREME COURT REPORTS                             [2023] 1 S.C.R.


A                               Case Law Reference
      [2020] 3 SCR 1                      followed                   Para 4, 5
      [2014] 1 SCR 783                    referred to                Para 2, 4
      [2017] 4 SCR 232                    referred to                Para 2,3
B             CIVIL APPELLATE JURISDICTION : Civil Appeal No.364 of
      2023.
            From the Judgment and Order dated 04.01.2018 of the High Court
      of Delhi at New Delhi in WP (C) No.9545 of 2015.
             Atul Kumar, Ms. Sweety Singh, Ms. Archana Kumari, Rahul
C
      Pandey, Avs Kadyan, Rajiv Ranjan, Mishra Saurabh, Ms. Sujeeta
      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,
D     Ms. Astha Tyagi, Dinesh Chander Trehan, Ms. Diksha Narula, 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
E
      and order passed by the High Court of Delhi at New Delhi in Writ
      Petition(C) No. 9545 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”) with regard to the land in question is deemed to have lapsed
F     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
      (DDA) has preferred the present appeal.
             2. Having heard the learned counsel appearing on behalf of the
G     respective parties and on going through the impugned judgment and
      order passed by the High Court, it appears that a specific plea was
      raised before the High Court on the maintainability of the writ petition
      by the original writ petitioner as he was the subsequent purchaser.
      However, relying upon the decision of this Court in the case of
      Government (NCT of Delhi) Vs. Manav Dharam Trust and Anr.,
H
  DELHI DEVELOPMENT AUTHORITY v. ASHA PRAKASH                                   921
             AND ORS. [M. R. SHAH, J.]

(2017) 6 SCC 751, the High Court has overruled the said objection and           A
thereafter has entertained the writ petition preferred by the respondent
No. 1 herein – original writ petitioner – subsequent purchaser and
thereafter after following 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
                                                                                B
said writ petition and has declared that the acquisition with respect to
the land in question is deemed to have lapsed as compensation has not
been paid to the original landowners.
        3. The decision of this Court in the case of Manav Dharam Trust
and Anr. (supra), which has been relied upon by the High Court while
passing the impugned judgment and order and overruling the objection            C
raised on behalf of the appellant on the maintainability of the writ petition
at the instance of the respondent No. 1 – original writ petitioner is held
to be not a good law in view of the subsequent decision of this Court in
the case of Shiv Kumar and Anr. Vs. Union of India and Ors.,
(2019) 10 SCC 229 and thereafter in the subsequent decisions in the             D
case of Delhi Development Authority Vs. Godfrey Philips (I) Ltd.
& Ors., - Civil Appeal No. 3073 of 2022 and Delhi Administration
Thr. Secretary, Land and Building Department & Ors. Vs. Pawan
Kumar & Ors., - Civil Appeal No. 3646 of 2022. In the aforesaid
decisions, it is specifically observed and held by this Court that the
subsequent purchaser has no locus to challenge the acquisition / lapse of       E
acquisition.
       4. Under the circumstances, the High Court has committed a grave
error in entertaining the writ petition preferred by the respondent No. 1
herein, who is a subsequent purchaser praying for deemed lapse of
acquisition. Even otherwise, the decision of this Court in the case of          F
Pune Municipal Corporation and Anr. (supra) 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
                                                                                G
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
                                                                                H
922   SUPREME COURT REPORTS                         [2023] 1 S.C.R.


A     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
B
      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.
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
D     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
E     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
F     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
G     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
H     respect to majority of landholdings then all beneficiaries
DELHI DEVELOPMENT AUTHORITY v. ASHA PRAKASH                             923
           AND ORS. [M. R. SHAH, J.]

    (landowners) as on the date of notification for land acquisition    A
    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.                                                       C
            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         D
    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.
                                                                        E
          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            F
    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       G
    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       H
924              SUPREME COURT REPORTS                           [2023] 1 S.C.R.


A                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
B                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.”
C
              5. Applying the law laid down by this Court in the aforesaid three
      decisions on the locus of the respondent No. 1 – subsequent purchaser
      to file the writ petition / challenge the acquisition / lapse of acquisition
      and the decision of this Court in the case of Indore Development
      Authority (supra) to the facts of the case on hand, the impugned
D     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,
             Present appeal is accordingly allowed. No costs.
             Pending application, if any, also stands disposed of.
E
      Ankit Gyan                                                     Appeal allowed.
      (Assisted by : Abhishek Pratap Singh, LCRA)




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