Summary
The Delhi High Court declared an acquisition lapsed under Section 24(2) of the 2013 Act on the ground that compensation had not been tendered or paid, relying on Pune Municipal Corporation, although the Land and Building Department's specific case before it was that possession of the land had been taken on 28 March 2007. A three-Judge Bench of the Supreme Court allowed the Department's appeal: Pune Municipal Corporation stands overruled by the Constitution Bench in Indore Development Authority v. Manoharlal, under which deemed lapse occurs only where neither possession was taken nor compensation paid for five years before the 2013 Act came into force, so the declaration of lapse was unsustainable.
Issues
- Whether an acquisition can be declared to have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 for non-payment of compensation where possession of the land was taken in 2007.
Provisions considered
- Section 24(2), Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013Following paragraphs 365 and 366 of Indore Development Authority, the word 'or' between possession and compensation is read as 'nor' or 'and'; where possession has been taken there is no lapse even if compensation remains unpaid, and non-deposit of compensation in court does not cause lapse. (¶¶ 3, 4)
Held
- Given the appellant's stand before the High Court that possession was taken on 28.03.2007, and applying the Constitution Bench's answers in Indore Development Authority, the High Court's declaration founded on the overruled decision in Pune Municipal Corporation cannot stand. (¶¶ 2, 3, 4)
Result
Appeal allowed without costs; Delhi High Court judgment dated 25.05.2015 in WP (C) No. 6060 of 2014 quashed and set aside; no deemed lapse under Section 24(2) of the 2013 Act; pending applications disposed of.