Supreme Court Sets Aside High Court Order, Land Acquisition Proceedings Deemed Not Lapsed under Section 24(2) of the Act, 2013

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Land Acquisition compensation Land Acquisition Act

In a significant judgment, the Supreme Court of India has quashed a decision by the High Court of Delhi, declaring the acquisition proceedings as lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Act, 2013). The apex court, in its ruling, stated that the High Court’s interpretation was erroneous, as it relied on a previous decision that had been overruled by a Constitution Bench.

The Court, comprising Justices M.R. Shah and C.T. Ravikumar, observed, “The decision rendered in Pune Municipal Corporation is hereby overruled and all other decisions in which Pune Municipal Corporation has been followed are also overruled.” The Court clarified that the provisions of Section 24(2) are applicable only when authorities fail to take possession and pay compensation for five years or more before the 2013 Act came into force. The Court emphasized that non-deposit of compensation in court does not result in the lapse of land acquisition proceedings.

The case pertained to the acquisition of lands in the revenue estate of village Wazirabad, with the Land Acquisition Collector, New Delhi, as the appellant and Jai Prakash Tyagi and others as respondents. The High Court had allowed a writ petition challenging the acquisition proceedings, deeming them to have lapsed under Section 24(2) of the Act, 2013. The Court’s decision was primarily based on the now-overruled judgment in the Pune Municipal Corporation case.

By setting aside the High Court’s order, the Supreme Court has upheld the validity of the acquisition proceedings. However, the Court emphasized that if the original landowners or interested parties have not been paid compensation, they should be provided compensation in accordance with the provisions of the Land Acquisition Act, 1894. The Court ordered that their claims be considered on their own merits.

Date of Decision: February 24, 2023

Land Acquisition Collector vs Jai Prakash Tyagi & Ors.                                      

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