UNION OF INDIA & ANR.versusSUBHASH CHANDER SEHGAL & ORS.

                        [2022] 7 S.C.R. 151                             151


                    UNION OF INDIA & ANR.                               A
                                 v.
            SUBHASH CHANDER SEHGAL & ORS.
                   (Civil Appeal No. 5439 of 2022)
                         AUGUST 22, 2022                                B
        [M. R. SHAH AND B. V. NAGARATHNA, JJ.]
       Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 – s. 24(2) –
Lapse of acquisition Proceedings – Claim of – Land Acquisition
                                                                        C
proceedings was challenged before the High Court – The High Court
declared that the acquisition proceedings with respect to the subject
land had lapsed in terms of s.24(2) of the Act 2013 – High Court
relied upon the decision of the Supreme Court in the case of Pune
Municipal Corporation and another v. Harakchand Misirimal Solanki and
Others – On appeal, held: A Constitution Bench of Supreme Court         D
in the case of the Indore Development Authority v. Manoharlal and
Others, has specifically overruled the decision in the case of the
Pune Municipal Corporation – In such a situation, no relief of lapse
of acquisition proceedings can be countenanced in view of the law
laid down in the case of Indore Development Authority – Once it
                                                                        E
is held that there is no lapse of acquisition proceedings u/
s. 24(2) of the 2013 Act, the land which has stood vested with the
appellant continues to do.
      Indore Development Authority v. Manoharlal and
      others, (2020) 8 SCC 129: [2020] 3 SCR 1 – followed.
                                                                        F
      Pune Municipal Corporation and Another v.
      Harakchand Misirimal Solanki and Others (2014) 3
      SCC 183 : [2014] 1 SCR 783; Sree Balaji Nagar
      Residential Association v. State of Tamil Nadu, (2015)
      3 SCC 353 – referred to.
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                       Case Law Reference
[2014] 1 SCR 783               referred to            Para 3
[2014] 7 SCR 799               referred to            Para 3
[2020] 3 SCR 1                 followed               Para 3.1
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                                151
152             SUPREME COURT REPORTS                           [2022] 7 S.C.R.


A           CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5439
      of 2022.
            From the Judgment and Order dated 01.03.2016 of the High Court
      of Delhi at New Delhi in Writ Petition (C) No. 1648 of 2015.
            Ms. Sujeeta Srivastava, Adv. for the Appellants.
B
            S. K. Rout, Prithvi Pal, Omkar Prasad, Praveen Swarup,
      Ms. Payal Swarup, Rahul Tomar, Chandra Pratap Singh, Kritgya Kumar,
      Kaushal Jeet, Advs. for the Respondents.
            The Judgment of the Court was delivered by
C           M. R. SHAH, J.
             1. Feeling aggrieved and dissatisfied with the impugned judgment
      and order dated 01.03.2016 passed by the High Court of Delhi at New
      Delhi in Writ Petition (C) No.1648 of 2015 whereby the High Court has
      declared that the acquisition proceedings with respect to the subject land
D     had lapsed in terms of Section 24(2) of the Right to Fair Compensation
      and Transparency in Land Acquisition, Rehabilitation and Resettlement
      Act, 2013 (hereinafter referred to as ‘the Act 2013’), the Union of India
      through Land Acquisition Collector and Another have preferred the present
      appeal.
E           2. We have heard Ms. Sujeeta Srivastava, learned counsel
      appearing on behalf of the appellants and Mr. S.K. Rout, learned counsel
      appearing on behalf of the respondent nos. 1 to 4.
              3. The undisputed facts are that in the present case, the possession
      of the land in question was already taken over by the appropriate authority
F     in the year 1987. It is also an admitted position that the subject land has
      been utilized way back in the year 1987 for a park by East Delhi Municipal
      Corporation. However, despite the above and relying upon the decisions
      of this Court in the case of Pune Municipal Corporation and another
      versus Harakchand Misirimal Solanki and others reported in (2014)
      3 SCC 183 and Sree Balaji Nagar Residential Association vs. State
G     of Tamil Nadu, (2015) 3 SCC 353, the High Court has declared that
      the acquisition proceedings in respect of the subject land had lapsed in
      terms of Section 24(2) of the Act, 2013.
            3.1 In a subsequent decision, a Constitution Bench of this Court
      in the case of Indore Development Authority versus Manoharlal
H
 UNION OF INDIA & ANR. v. SUBHASH CHANDER SEHGAL                              153
               & ORS. [M. R. SHAH, J.]

and others, (2020) 8 SCC 129 has specifically over- ruled the decisions       A
of this Court in the case of Pune Municipal Corporation (supra) and
Sree Balaji Nagar Residential Association (supra). In paragraph
366 it is observed and held as under:
            “366. In view of the aforesaid discussion, we answer the
      questions as under:                                                     B
             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              C
      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               D
      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                 E
      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
                                                                              F
      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       G
      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
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154      SUPREME COURT REPORTS                         [2022] 7 S.C.R.


A     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
B     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
C     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
D
      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).
E            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
F     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
G     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
H     to invalidate acquisition.”
 UNION OF INDIA & ANR. v. SUBHASH CHANDER SEHGAL                                 155
               & ORS. [M. R. SHAH, J.]

        3.2 In such a situation no relief of lapse of acquisition proceedings    A
can be countenanced in this case in view of the law laid down by this
Court in the case of Indore Development Authority (supra). Once
it is held that there is no lapse of acquisition proceedings under Section
24(2) of the 2013 Act, the land which has stood vested with the appellant
continues to do. Also, there is no question of payment of any
                                                                                 B
compensation to the writ petitioners in respect of the suit land as per the
Act, 2013.
      However, the original writ petitioners shall be entitled to
compensation under the Land Acquisition Act, 1894 as per Award No.102/
1986-87 dated 19.09.1986 as referred to by the High Court in para 3 of
the impugned judgment and order or in the event any enhancement is               C
sought by the original writ petitioners in accordance with law.
       3.3 In view of the above and for the reason stated above, the
impugned judgment and order passed by the High Court declaring that
the acquisition proceedings in respect of the subject land has lapsed in
terms of Section 24(2) of the Right to Fair Compensation and                     D
Transparency in Land Acquisition, Rehabilitation and Resettlement Act,
2013 and directing the authorities to pay the compensation to the writ
petitioners in respect of the suit land as per Act 2013 deserves to be
quashed and set aside and is accordingly quashed and set aside.
Consequently, the writ petition filed by the private respondents before          E
the High Court stands dismissed.
      Present Appeal is accordingly allowed. However, in the facts and
circumstances of the case, there shall be no order as to costs.

Ankit Gyan                                                     Appeal allowed.   F
(Assisted by : Rahul Rathi, LCRA)




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