Government of NCT of Delhi vs. Karampal: Supreme Court Rules on Land Acquisition Lapse

The Supreme Court of India, in its judgment dated December 2, 2022, in the case of Government of NCT of Delhi vs. Karampal & Another, overturned the Delhi High Court’s ruling that had declared land acquisition proceedings lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013.

The Supreme Court held that a subsequent purchaser cannot claim the lapsing of acquisition proceedings and that non-payment of compensation alone does not lead to an automatic lapse of land acquisition. The Court reaffirmed the interpretation provided by the Constitution Bench in Indore Development Authority vs. Manoharlal.

Background of the Case

The dispute arose from land acquisition proceedings initiated under the Land Acquisition Act, 1894. The Government of NCT of Delhi had acquired the land, took possession on September 17, 2008, and mutated the government’s name in revenue records. However, a subsequent purchaser of the land filed a writ petition in the Delhi High Court, claiming that the acquisition had lapsed due to non-payment of compensation.

The Delhi High Court ruled in favor of the respondent, declaring that the acquisition had lapsed solely because the compensation was not paid in accordance with the law. The Government of NCT of Delhi challenged this decision before the Supreme Court.

Arguments Presented

Petitioners’ (Government of NCT of Delhi) Arguments

The Government of NCT of Delhi, represented by its counsel, argued:

The High Court should not have entertained the writ petition since the original writ petitioner was a subsequent purchaser who had no right to challenge the acquisition proceedings.
The Supreme Court had already ruled in Indore Development Authority that for acquisition to lapse, both conditions—failure to take possession and non-payment of compensation—must be met.
Since possession was taken and recorded in 2008, the acquisition could not be deemed lapsed.
The High Court erroneously relied on the decision in Pune Municipal Corporation vs. Harakchand Misirimal Solanki, which had already been overruled by the Constitution Bench in Indore Development Authority.

Respondents’ (Karampal) Arguments

The respondents, represented by their counsel, countered with the following points:

Compensation had not been paid to the landowners, and non-payment of compensation should result in the lapse of acquisition.
The Delhi High Court correctly ruled in favor of the landowners based on earlier Supreme Court judgments emphasizing the importance of payment of compensation.
Even if possession had been taken, the failure to compensate the landowners rendered the acquisition invalid under Section 24(2) of the 2013 Act.

Supreme Court’s Observations

The Supreme Court reviewed the case and observed:

“A subsequent purchaser has no locus to challenge land acquisition proceedings. The High Court erred in entertaining the writ petition filed by the respondent.”
“Possession of the land was taken on 17.09.2008, and once possession is taken, the land vests in the state. The acquisition, therefore, cannot lapse under Section 24(2) of the 2013 Act.”
“The Constitution Bench in Indore Development Authority ruled that for an acquisition to lapse, both possession must not have been taken, and compensation must not have been paid. If either condition is met, the acquisition remains valid.”
“The High Court relied on Pune Municipal Corporation, which was overruled in Indore Development Authority, rendering the decision legally unsustainable.”

Legal Interpretation of Section 24(2) of the 2013 Act

The Supreme Court, in Indore Development Authority, provided clarity on how Section 24(2) should be interpreted:

The lapse of land acquisition proceedings requires both non-payment of compensation and failure to take possession.
Depositing compensation in court is sufficient compliance with the legal requirement of payment.
Landowners who refuse to accept compensation or seek higher compensation through legal proceedings cannot claim that acquisition has lapsed.
Once possession is taken, land vests in the state, and acquisition cannot be reversed under Section 24(2).

Judgment and Ruling

The Supreme Court ruled in favor of the Government of NCT of Delhi and held:

The Delhi High Court’s judgment was quashed and set aside.
The land acquisition proceedings were upheld as valid and not deemed to have lapsed.
The ruling in Indore Development Authority was reaffirmed as the authoritative interpretation of Section 24(2) of the 2013 Act.

Implications of the Judgment

This ruling has wide-ranging implications for land acquisition cases in India:

The Supreme Court has reaffirmed that a subsequent purchaser cannot challenge land acquisition proceedings.
Government authorities can rely on the clarity provided by the Court regarding Section 24(2) of the 2013 Act.
Public infrastructure projects that were stalled due to legal challenges from subsequent purchasers may now proceed without unnecessary delays.

Conclusion

The Supreme Court’s decision in Government of NCT of Delhi vs. Karampal & Another reinforces the legal position that once possession of land has been taken, the acquisition cannot lapse. By upholding the acquisition and quashing the Delhi High Court’s ruling, the Court has ensured that landowners and subsequent purchasers do not unfairly benefit from procedural delays and that public projects can continue without legal hurdles. This judgment sets a crucial precedent for future land acquisition cases and provides clarity on the application of Section 24(2) of the 2013 Act.

Petitioner Name: Government of NCT of Delhi.
Respondent Name: Karampal & Another.
Judgment By: Justice M.R. Shah, Justice C.T. Ravikumar.
Place Of Incident: Delhi.
Judgment Date: 02-12-2022.

Don’t miss out on the full details! Download the complete judgment in PDF format below and gain valuable insights instantly!

Download Judgment: government-of-nct-of-vs-karampal-&-another-supreme-court-of-india-judgment-dated-02-12-2022.pdf

Directly Download Judgment: Directly download this Judgment

See all petitions in Property Disputes
See all petitions in Landlord-Tenant Disputes
See all petitions in Specific Performance
See all petitions in Judgment by Mukeshkumar Rasikbhai Shah
See all petitions in Judgment by C.T. Ravikumar
See all petitions in allowed
See all petitions in Quashed
See all petitions in supreme court of India judgments December 2022
See all petitions in 2022 judgments

See all posts in Civil Cases Category
See all allowed petitions in Civil Cases Category
See all Dismissed petitions in Civil Cases Category
See all partially allowed petitions in Civil Cases Category