Supreme Court Quashes High Court Order on Land Acquisition: Subsequent Purchasers Cannot Challenge Acquisition

New Delhi, May 4, 2023: In a significant judgment, the Supreme Court of India has quashed the order passed by the High Court of Delhi declaring the deemed lapse of land acquisition. The Court held that subsequent purchasers do not have the locus standi to challenge the acquisition and pray for its deemed lapse.

The case, Civil Appeal No. 3340 of 2023, arose from the acquisition of land by the Delhi Development Authority (DDA). The High Court had allowed a writ petition challenging the acquisition on the grounds that the compensation had not been paid or tendered to the subsequent purchasers.

Supreme Court noted that the High Court had relied on the decision in the case of Govt. of NCT of Delhi vs. Manav Dharma Trust (2017) 6 SCC 751, which allowed subsequent purchasers to challenge acquisitions. However, the Supreme Court held that the Manav Dharma Trust case is no longer good law.

The Court referred to its own decisions in Shiv Kumar & Anr. vs. Union of India & Ors. (2019) 10 SCC 229 and Delhi Development Authority vs. Godfrey Philips (I) Ltd. & Ors. Civil Appeal No. 3073/2022, which clarified that subsequent purchasers have no locus standi to challenge the acquisition or pray for its deemed lapse.

The Supreme Court observed that the subsequent purchasers in this case were not recorded owners and had acquired the land after the acquisition had taken place. Therefore, they could not challenge the acquisition based on non-payment of compensation.

Consequently, the Supreme Court set aside the High Court's order, stating that it was unsustainable. The appeal was allowed, and no costs were imposed.

May 4, 2023

Delhi Development Authority vs Narendra Kumar Jain & Ors.