Land Acquisition Lapses Under 2013 Act: Supreme Court Rules in Favor of Kailash Chand Gupta

The case of Govt. of NCT of Delhi vs. Kailash Chand Gupta & Ors. revolved around a dispute concerning land acquisition under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act). The Supreme Court had to determine whether the acquisition process had lapsed under Section 24(2) of the Act and if the government could reclaim the land.

Background of the Case

The Government of NCT of Delhi, through its Land and Building Department, had acquired land from Kailash Chand Gupta & Ors. The respondents argued that the acquisition process had lapsed because the government had failed to either take possession of the land or pay compensation within the stipulated time.

Legal Challenge

• The respondents contended that under Section 24(2) of the LARR Act, if compensation is not paid or possession is not taken within five years before the commencement of the 2013 Act, the acquisition process is deemed to have lapsed.
• The Delhi High Court ruled in favor of the landowners, holding that the acquisition had lapsed due to non-compliance with the law.
• The Government of NCT of Delhi challenged this ruling before the Supreme Court.

Supreme Court’s Judgment

The Supreme Court, in a bench comprising Justice Kurian Joseph and Justice Rohinton Fali Nariman, delivered the final ruling on September 22, 2016. The key points from the judgment were:

Key Observations by the Supreme Court

• The Court referenced a similar case, Govt. of NCT of Delhi vs. Mahender Singh & Ors. (Civil Appeal No. 9596/2016), where it ruled that if compensation had not been paid and possession had not been taken, the acquisition process automatically lapsed under Section 24(2).
• The Supreme Court upheld the Delhi High Court’s ruling, affirming that the acquisition had lapsed.
• However, the Court granted the Government of NCT of Delhi the liberty to initiate fresh acquisition proceedings under the 2013 Act within one year.

Final Ruling

• The Supreme Court dismissed the appeal filed by the Government of NCT of Delhi.
• The government was given one year to initiate fresh acquisition proceedings.
• If the government fails to do so, the land will remain with the original owners.
• No order was made regarding costs.

Impact of the Judgment

• This ruling reaffirmed landowners’ rights under Section 24(2) of the LARR Act, ensuring that the government cannot hold land indefinitely without paying compensation.
• The judgment sets a precedent for other land acquisition cases where authorities fail to fulfill their legal obligations.
• The ruling ensures that fresh acquisition proceedings, if initiated, must comply with the provisions of the 2013 Act, including fair compensation and rehabilitation for landowners.

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Download Judgment: Govt. of NCT of Delh vs Kailash Chand Gupta Supreme Court of India Judgment Dated 22-09-2016-1741883969946.pdf