Delhi Development Authority vs. Kusham Jain: Supreme Court Rules on Lapsed Land Acquisition

The case of Delhi Development Authority vs. Kusham Jain & Another involves a dispute over land acquisition proceedings under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as the 2013 Act). The Supreme Court was called upon to determine whether the acquisition proceedings had lapsed due to non-payment of compensation under Section 24(2) of the 2013 Act.

Background of the Case

The Delhi Development Authority (DDA) challenged a decision by the Delhi High Court, which declared that the land acquisition proceedings culminating in the Award dated 19.9.1986 had lapsed due to non-payment of compensation.

The land in question, measuring 1 bigha 4 biswas in Khasra No. 89/23/2 in village Palam, New Delhi, was acquired by the government. The respondents claimed that they had not received any compensation and continued to remain in possession of the land.

Legal Issues Before the Supreme Court

Whether the land acquisition proceedings had lapsed under Section 24(2) of the 2013 Act due to non-payment of compensation.
Whether the Delhi Development Authority could escape liability for lapsing of the acquisition by arguing that the compensation had been deposited with the Land Acquisition Collector.
Whether the deposit of compensation in court in 2013 was sufficient to prevent the lapse of acquisition proceedings.

Arguments by the Appellant (Delhi Development Authority)

The DDA put forth the following arguments:

The acquisition process was duly completed, and possession of the land was taken on 4.1.2002.
The compensation amount was already deposited with the Land Acquisition Collector in 2002, and therefore, the landowners could not claim that they had not been paid.
In any case, the compensation had been deposited in court in December 2013, before the 2013 Act came into force.
The High Court erred in applying the provisions of Section 24(2) of the 2013 Act retrospectively.

Arguments by the Respondents (Kusham Jain & Another)

The landowners countered with the following arguments:

They had never received any compensation for their land.
There was no evidence that the Land Acquisition Collector had taken steps to pay them or even issued a notice to collect compensation.
The compensation was deposited in court only in 2013, nearly three decades after the award was made in 1986.
Under Section 24(2) of the 2013 Act, if either possession had not been taken or compensation had not been paid, the acquisition proceedings would lapse.

Supreme Court’s Observations

The Supreme Court made the following critical observations:

On Non-Payment of Compensation

“The High Court has correctly recorded that it is an admitted position that compensation has not been paid to the landowners.”

The Court emphasized that for acquisition proceedings to be valid under the 2013 Act, either possession must have been taken or compensation must have been paid before 1.1.2014. Since no compensation was paid, the proceedings lapsed.

On Deposit of Compensation

“The deposit of compensation in court in 2013, nearly three decades after the award, cannot be treated as payment under the Land Acquisition Act, 1894.”

The Court referred to its earlier ruling in Pune Municipal Corporation & Anr. vs. Harakchand Misirimal Solanki & Ors., where it held that unless compensation is paid to the landowners or deposited in a manner prescribed under the law, acquisition proceedings would lapse.

On the Impact of Section 24(2) of the 2013 Act

“In terms of Section 24(2), if either possession was not taken five years prior to 1.1.2014 or compensation was not paid, the acquisition shall be deemed to have lapsed.”

The Court dismissed the appellant’s argument that depositing the amount in court in 2013 was sufficient to prevent the lapse of proceedings.

Final Judgment

The Supreme Court ruled as follows:

The acquisition proceedings in respect of 1 bigha 4 biswas of land in Khasra No. 89/23/2 in village Palam, New Delhi, had lapsed under Section 24(2) of the 2013 Act.
The appeal by the Delhi Development Authority was dismissed.
The DDA was given one year to initiate fresh acquisition proceedings under the 2013 Act, failing which the landowners would retain possession.
If no fresh acquisition proceedings were initiated within one year, the DDA would have to return physical possession of the land to the original owners.

Implications of the Judgment

The Supreme Court’s ruling in this case has several important implications:

Strict Enforcement of Section 24(2): The ruling reaffirms that failure to pay compensation within the prescribed time frame results in lapsing of acquisition proceedings.
Deposit of Compensation is Not Enough: The judgment makes it clear that compensation must be paid to the landowners and not merely deposited with the court or treasury.
Protection of Landowners’ Rights: This ruling ensures that landowners are not deprived of their land without proper compensation.
Fresh Acquisition Proceedings: The judgment provides that even if an acquisition lapses, the government can initiate fresh acquisition under the 2013 Act.

Conclusion

The Supreme Court’s decision in Delhi Development Authority vs. Kusham Jain is a landmark ruling that reinforces the principles of fair compensation in land acquisition cases. By upholding the rights of landowners, the Court has ensured that the government cannot retain land without fulfilling its obligations under the law. The ruling serves as a strong precedent in cases where compensation remains unpaid, setting a clear standard for future land acquisition disputes.

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Download Judgment: Delhi Development Au vs Kusham Jain & Anothe Supreme Court of India Judgment Dated 31-08-2016-1741878621367.pdf

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