Summary
The Delhi High Court declared that an acquisition had lapsed under Section 24(2) of the 2013 Act solely because compensation was not paid to the landowners in the manner known to law, relying on Pune Municipal Corporation, although the Delhi Development Authority's counter affidavit stated that possession was taken and handed to the beneficiary department on 23 September 1981 and the compensation sent to the revenue deposit owing to a dispute. The Supreme Court allowed the Authority's appeal: under the Constitution Bench decision in Indore Development Authority v. Manoharlal, deemed lapse requires the twin conditions that possession was not taken and compensation was not tendered or paid, and if either is unsatisfied there is no lapse; the High Court's view was contrary to that law.
Issues
- Whether acquisition proceedings lapse under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 where possession was taken decades earlier but compensation was deposited in the revenue deposit rather than paid to the landowners.
Provisions considered
- Section 24(2), Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013Applying paragraph 366 of Indore Development Authority, the word 'or' between possession and compensation is read as 'nor' or 'and'; lapse occurs only where neither possession was taken nor compensation paid for five years before 01.01.2014, and non-deposit in court does not cause lapse. (¶¶ 3.1, 4, 5)
Held
- Possession having been taken on 23.09.1981 and handed to the beneficiary department, with compensation sent to the revenue deposit because of a dispute, one of the twin conditions for deemed lapse was absent; the declaration of lapse based on the overruled decision in Pune Municipal Corporation is unsustainable. (¶¶ 2, 3, 3.1, 4, 5)
Result
Appeal allowed without costs; Delhi High Court judgment dated 01.08.2017 in WP (C) No. 3561 of 2015 quashed and set aside; no deemed lapse of the acquisition under Section 24(2) of the 2013 Act; pending applications disposed of.