Lapse of Land Acquisition Proceedings: Court’s Legal Analysis

1 From the impugned judgment and order passed by the High Court, it appears that while passing the impugned judgment and order, the High Court has relied upon the earlier decision of this Court in the case of Pune Municipal Corporation and Anr. Therefore, even the High Court has also not disputed that the original writ petitioners – original landowners were dispossessed on specific dates mentioned in the returns / counter affidavit.

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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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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).

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 to invalidate acquisition.”

2 Even as per the law laid down by this Court in the case of Indore Development Authority (supra), for lapsing of acquisition under Section 24(2) of the Act, 2013, twin conditions, namely, possession not taken and compensation not tendered are required to be satisfied.

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In view of the above and applying the law laid down by this Court in the Constitution Bench decision in the case of Indore Development Authority (supra) to the facts of the case on hand, the impugned judgment and order passed by the High Court is unsustainable and the same deserves to be quashed and set aside and is accordingly quashed and set aside.

Case Title: GOVERNMENT OF NCT OF DELHI Vs. KHAJAN SINGH (2023 INSC 65)

Case Number: C.A. No.-000361-000361 / 2023

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