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Supreme Court of India

GOVT. OF NCT OF DELHI & ANRversusMANJEET KAUR & ANR.

Citation
2023 INSC 221
Decided
13 March 2023
Disposal
Appeal(s) allowed

Holding

The Supreme Court held that the acquisition proceedings have not lapsed under Section 24(2) and that a subsequent purchaser has no locus to claim such lapse, thereby setting aside the High Court’s order.

Summary

The Government of NCT of Delhi appealed a Delhi High Court order that declared land acquisition proceedings as deemed to have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The High Court had relied on Pune Municipal Corporation v. Harakchand Misrimal Solanki, holding that because possession was not taken and compensation not paid, the acquisition lapsed. The Supreme Court examined whether a subsequent purchaser (the original writ petitioner) has locus to claim such lapse and whether the High Court correctly applied the law. Citing Godfrey Philips (I) Ltd., Shiv Kumar, and the Constitution Bench decision in Indore Development Authority v. Manoharlal, the Court held that a subsequent purchaser cannot challenge the lapse and that the interpretation of Section 24(2) in Pune Municipal Corporation was overruled. Consequently, the acquisition did not lapse, the High Court’s order was set aside, and the appeal was allowed.

Issues considered

  • Whether the original writ petitioner or subsequent purchaser has locus standi to claim a lapse of acquisition proceedings under Section 24(2) of the 2013 Act.
  • Whether the acquisition proceedings in the present case are deemed to have lapsed under Section 24(2) when possession has not been taken and compensation not paid.
  • Interpretation of the word ‘or’ in Section 24(2) – whether it should be read as ‘nor’/‘and’ and its effect on the deemed lapse provision.
  • Whether the High Court erred in applying the decision of Pune Municipal Corporation & Anr. v. Harakchand Misrimal Solanki.

Legislation cited

Subjects

land acquisitionSection 24(2)deemed lapselocus standisubsequent purchaserRight to Fair Compensation ActcompensationpossessionSupreme Court precedentoverruled decision

Judgment

202                      [2023]REPORTS
               SUPREME COURT    2 S.C.R. 202               [2023] 2 S.C.R.


A                    GOVT. OF NCT OF DELHI & ANR.
                                        v.
                          MANJEET KAUR & ANR.
                         (Civil Appeal No. 1458 of 2023)
B                               MARCH 13, 2023
                [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) –
      It was the specific case on behalf of the appellant that the original
C
      writ petitioner or subsequent purchaser has no locus to challenge
      the acquisition – However, same was not dealt by the High Court –
      High Court relying upon Pune Municipal Corporation & Anr. Vs
      Harakchand Misrimal Solanki & ors held that the acquisition
      proceedings in respect of land in question deemed to have lapsed
D     u/s. 24(2) of 2013 Act on the ground that neither possession of the
      subject land has not been taken nor has the compensation been
      tendered/paid to the original petitioner – On appeal, held: In the
      case of Godfrey Philips (I) Ltd. it was held that subsequent purchaser
      has no locus to claim lapse of acquisition proceedings – Even
      otherwise, the decision in the case of Pune Municipal Corporation
E
      has been overruled by the Constitution Bench of the Supreme Court
      in case of Indore Development Authority v. Manoharlal and Ors. –
      Applying the law laid by the Supreme Court in cases of Godfrey
      Philips (I) Ltd, Shiv Kumar and Indore Development Authority, the
      impugned judgment and order passed by the High Court
F     unsustainable – Appeal allowed.
            Indore Development Authority v. Manoharlal & Ors.
            (2020) 8 SCC 129 : [2020] 3 SCR 1 – followed.
            Pune Municipal Corporation & Anr. v. Harakchand
            Misrimal Solanki & Ors. (2014) 3 SCC 183; Shiv Kumar
G           and Anr. v. Union of India and Ors. (2019) 10 SCC
            229; Delhi Development Authority v. Godfrey Philips
            (I) Ltd. & Ors. (Civil Appeal No. 3073 of 2022 decided
            by the Supreme Court); M. Venkatesh & Ors. v.
            Commissioner, Bangalore Development Authority (2015)
H           17 SCC 1 – referred to.
                                       202
   GOVT. OF NCT OF DELHI & ANR. v. MANJEET KAUR &                              203
                        ANR.

                         Case Law Reference                                    A
[2020] 3 SCR 1                        followed                Para 6, 7
(2014) 3 SCC 183                      referred to             Para 2, 6
(2019) 10 SCC 229                     referred to             Para 3, 4, 7
(2015) 17 SCC 1                       referred to             Para 4           B
      CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1458
of 2023.
      From the Judgment and Order dated 31.10.2017 of the High Court
of Delhi at New Delhi in WPC No. 6158 of 2016.
                                                                               C
      Ms. Astha Tyagi, Dinesh Chander Trehan, Advs. for the Appellants.
      Sumit Bansal, Ms. N. Annapoorani, Nitin Mishra, Ishaan Sharma,
Advs. for the Respondents.
      The Judgment of the Court was delivered by
                                                                               D
      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. 6158 of 2016, by which, the High Court has allowed the said
writ petition and has declared that the acquisition proceedings with respect   E
to Khasra No. 668/1 min (0- 12) and 668/2 (01-08) total admeasuring 2
bighas situated at the Revenue Estate of Village Satbari, New Delhi, are
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 & Anr. have preferred the present appeal.           F
       2. Heard learned counsel appearing on behalf of the respective
parties at length and perused the impugned judgment and order passed
by the High Court. From the impugned judgment and order passed by
the High Court, it appears that the High Court has allowed the writ
petition and has declared that the acquisition with respect to the land in     G
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 by observing that neither the possession of the
land in question has been taken nor the compensation has been tendered/
                                                                               H
204             SUPREME COURT REPORTS                            [2023] 2 S.C.R.


A     paid as per the law laid down by this Court in the case of Pune Municipal
      Corporation (supra).
             3. However, it is required to be noted that before the High Court,
      it was the specific case on behalf of the appellant(s) that original writ
      petitioner being the subsequent purchaser had no locus to challenge the
B     acquisition/deemed lapse of acquisition. Even from the averments made
      in original writ petition, the original writ petitioner claimed the ownership
      on the basis of the agreement to sell, assignment deed, receipt and
      possession letter, electricity bill and property tax bill (para 2), the word
      “sale deed” is inserted by ink. However, no sale deed is forthcoming,
      thus, the original writ petitioner claimed the ownership and in possession
C     of the agreement to sell, assignment deed, be that as it may, original writ
      petitioner or the subsequent purchaser. Though, it was the specific case
      on behalf of the appellant(s) that the original writ petitioner or the
      subsequent purchaser has no locus to challenge the acquisition/deemed
      lapse acquisition but the High Court has not dealt with the same. Whether
D     the subsequent purchaser has no locus to challenge the acquisition/deemed
      lapse acquisition is not res integra in view of the decision of this Court
      in the case of Shiv Kumar & Anr. Vs. Union of India & Ors. (2019)
      10 SCC 229 and subsequent decision of this Court in the case of Delhi
      Development Authority Vs. Godfrey Philips (I) Ltd. & Ors. Civil
      Appeal No. 3073/2022.
E
             4. In the case of Godfrey Philips (I) Ltd. (supra) after
      considering the other decisions on the locus of the subsequent purchaser
      to claim lapse of acquisition proceedings, i.e., Shiv Kumar (supra),
      Meera Sahni Vs. Lieutenant Governor of Delhi & Ors., (2008) 9
      SCC 173 and M. Venkatesh & Ors. Vs. Commissioner, Bangalore
F     Development Authority (2015) 17 SCC 1, it is specifically observed
      and held that the subsequent purchaser has no locus to claim lapse of
      acquisition proceedings. The decision of this Court in the case of Shiv
      Kumar (supra) has been subsequently followed by this Court in catena
      of decisions.
G            5. In view of the above, the High Court has seriously erred in
      declaring that the acquisition in respect of the land in question is deemed
      to have lapsed in writ petition filed by the original writ petitioner –
      subsequent purchaser.
             6. Even otherwise, it is required to be noted that in the present
H     case, the possession of the land in question could not be taken by the
   GOVT. OF NCT OF DELHI & ANR. v. MANJEET KAUR &                             205
                 ANR. [M. R. SHAH, J.]

authority due to pending litigation/stay. The decision of this Court in the   A
case of Pune Municipal Corporation (supra) 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 paragraph
366, the Constitution Bench of this Court has observed and held as under:-
            “366. In view of the aforesaid discussion, we answer the          B
      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.                  C
             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.                                     D
             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         E
      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.
                                                                              F
             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    G
      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
                                                                              H
206      SUPREME COURT REPORTS                           [2023] 2 S.C.R.


A     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
B     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,
C     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).

D            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
E     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
F     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
G     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
H
   GOVT. OF NCT OF DELHI & ANR. v. MANJEET KAUR &                              207
                 ANR. [M. R. SHAH, J.]

       mode of deposit of compensation in the treasury instead of court        A
       to invalidate acquisition.”
       7. Applying the law laid down by this Court in the cases of Shiv
Kumar (supra), Godfrey Philips (I) Ltd. (supra) and the decision of
this Court in the case of Indore Development Authority (supra), the
impugned judgment and order passed by the High Court is unsustainable          B
and the same deserves to be quashed and set aside and is accordingly
quashed and set aside. There shall be no 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. Pending                 C
applications, if any, also stand disposed of.

Ankit Gyan                                                   Appeal allowed.
(Assisted by : Abhishek Pratap Singh, LCRA)

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