Deemed Lapse of Land Acquisition Proceedings: A Legal Analysis

From the impugned judgment and order passed by the High Court and from the counter affidavit filed on behalf of the LAC (Land Acquisition Collector) before the High Court, it appears that it was the specific case on behalf of the LAC that the possession of Khasra No 35/2/2 measuring 6 bighas 04 biswa was taken over on 22.09.1997; as regards Khasra The decision of this Court in the case of Pune Municipal Corporation (supra) which has been heavily relied upon by the High Court while passing the impugned judgment and order has been specifically overruled by the Constitution Bench of this Court in the case of Indore Development Authority Vs.

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Harakchand Misirimal Solanki, (2014) 3 SCC 183] is hereby overruled and all other decisions in which Pune Municipal Corpn.

Harakchand Misirimal Solanki, (2014) 3 SCC 183] has been followed, are also overruled.

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 compensation has been paid. 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 provisions of the 2013 Act.

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In case a person has been tendered the 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 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 authority concerned as on 1-1-2014.

Applying the law laid down by this Court in the case of Indore Development Authority (supra) to the facts of the case on hand, the High Court has materially erred in declaring that the acquisition proceedings with respect to the entire land i.e., 15 bigha 18 biswa are deemed to have lapsed is unsustainable.

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Pending applications, if any, also stand disposed of.

Case Title: LAND ACQUISITION COLLECTOR Vs. JAI PRAKASH TYAGI (2023 INSC 166)

Case Number: C.A. No.-001300-001300 / 2023

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