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Supreme Court of India

DELHI DEVELOPMENT AUTHORITYversusKRISHAN LAL ARORA & ORS.

Citation
2022 INSC 1154
Decided
2 November 2022
Disposal
Appeal(s) allowed

Holding

Section 24(2) of the 2013 Act does not deem an acquisition to have lapsed where possession has been taken, even if compensation has not been paid; both possession and compensation must be pending for the lapse provision to apply.

Summary

The Delhi Development Authority (DDA) had taken possession of land in 2006 under the Land Acquisition Act, 1894, but had not yet paid compensation to the owners. The Delhi High Court held that the acquisition had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, because compensation was unpaid. DDA appealed, arguing that the High Court’s view conflicted with the Supreme Court’s decision in Indore Development Authority v. Manoharlal. The Supreme Court clarified that Section 24(2) only deems acquisition to lapse when both possession and compensation are pending for five years or more prior to the 2013 Act’s commencement; the word “or” must be read as “and”. Since possession had already been taken, the acquisition could not be deemed to have lapsed despite the unpaid compensation. Consequently, the Court set aside the High Court’s order and dismissed the original writ petition. The appeal was allowed and the acquisition proceedings continued.

Issues considered

  • Whether Section 24(2) of the 2013 Act deems a land acquisition to have lapsed when possession has been taken but compensation remains unpaid.
  • How the word ‘or’ in Section 24(2) should be interpreted – as ‘and’/‘nor’.
  • Whether non‑deposit of compensation in court triggers a lapse under Section 24(2).
  • Whether the proviso to Section 24(2) forms part of Section 24(2) or Section 24(1)(b).
  • Whether Section 24(2) can revive concluded acquisition proceedings.

Legislation cited

Subjects

land acquisitionSection 24(2)deemed lapsecompensationpossessioninterpretation of statutory languageIndore Development Authority caseRight to Fair Compensation Act 2013

Judgment

598                      [2022]REPORTS
               SUPREME COURT   16 S.C.R. 598               [2022] 16 S.C.R.


A                  DELHI DEVELOPMENT AUTHORITY
                                        v.
                       KRISHAN LAL ARORA & ORS.
                         (Civil Appeal No. 7960 of 2022)
B
                             NOVEMBER 02, 2022
                [M. R. SHAH AND M. M. SUNDRESH, JJ.]
             Right to Fair Compensation and Transparency in Land
      Acquisition, Rehabilitation and Resettlement Act, 2013: s. 24(2) –
C
      Land acquisition process under Act No. 1 of 1894 shall be deemed
      to have lapsed in certain cases – Writ petition by the landowners
      claiming that acquisition with respect to the land deemed to be lapsed
      u/s.24(2) – Allowed by the High Court – On appeal, held: Though
      the possession of the land in question was already taken over by
D     the Land Acquisition Collector / L& B Department, the acquisition
      was ordered to be lapsed by the High Court solely on the ground
      that the compensation was not paid to the landowner, and as such s
      24(2) was attracted – The view taken by the High Court was contrary
      to the Constitution Bench decision of the Court in Indore
E     Development Authority’s case – Thus, the order passed by the High
      Court is quashed and set aside.
            Indore Development Authority Vs. Manoharlal and Ors.
            (2020) 8 SCC 129 : [2020] (3) SCR 1 – followed.
                             Case Law Reference
F
      [2020] (3) SCR 1                       followed            Para 3
            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 7960
      of 2022.

G           From the Judgment and Order dated 20.07.2018 of the High Court
      of Delhi at New Delhi in W.P. (C) No.10820 of 2016.
            Mishra Saurabh, Adv. for the Appellant.
            Ms. Sujeeta Srivastava, Advs. for the Respondents.

H
                                       598
    DELHI DEVELOPMENT AUTHORITY v. KRISHAN LAL                              599
                  ARORA & ORS.

      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. 10820 of 2016 by which the High Court has allowed the
said writ petition preferred by the original landowner – original writ      B
petitioner - respondent herein, and has held and declared that the
acquisition with respect to the land in question has 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 Delhi Development Authority has            C
preferred the present appeal.
       2. From the impugned judgment and order passed by the High
Court, it is seen that though the possession of the land in question was
already taken over by the Land Acquisition Collector / L& B Department,
Government of NCT of Delhi on 02.09.2006, the acquisition is ordered        D
to be lapsed solely on the ground that the compensation has not been
paid to the landowner. According to the High Court, as the compensation
has not been paid to the original writ petitioner – original landowner,
Section 24(2) of the Act, 2013 shall be attracted and therefore the
acquisition is deemed to have been lapsed. The view taken by the High
Court is just contrary to theConstitution Bench decision of this Court in   E
the case of Indore Development Authority Vs. Manoharlal and
Ors. (2020) 8 SCC 129 and in paragraph 366, it is observed and held
by this Court as under:-
         “366. In view of the aforesaid discussion, we answer the
      questions as under:                                                   F
          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.
                                                                            G
         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.
                                                                            H
600      SUPREME COURT REPORTS                          [2022] 16 S.C.R.


A        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
B
      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)
C     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
D     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
E     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
F     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
G     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
H     as contemplated under Section 24(2) is by drawing of inquest
    DELHI DEVELOPMENT AUTHORITY v. KRISHAN LAL                                  601
             ARORA & ORS. [M. R. SHAH, J.]

        report/memorandum. Once award has been passed on taking                 A
        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       B
        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.           C

            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       D
        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. In view of the above and for the reasons stated above, present        E
appeal succeeds. The impugned judgment and order passed by the High
Court ordering lapse of the acquisition with respect to the land in question
under Section 24(2) of the Act, 2013 is hereby quashed and set aside.
Consequently, the original writ petition preferred by the original writ
petitioner stands dismissed.                                                    F
        The appeal is accordingly allowed. No costs.
        Pending application(s), if any, also stand disposed of.

Nidhi Jain                                                    Appeal allowed.
                                                                                G




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