Supreme Court Quashes High Court Ruling on Land Acquisition in Delhi
The case of Delhi Development Authority v. Beena Gupta (D) Through LRS. & Ors. is a landmark judgment concerning land acquisition under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Supreme Court overturned a Delhi High Court ruling that had declared the land acquisition as lapsed, reaffirming the principles set forth in the Indore Development Authority case.
Background of the Case
The dispute pertains to land acquisition in Village Mundaka, Delhi. The government issued a notification under Section 4 of the Land Acquisition Act, 1894 on June 17, 2005, for acquiring approximately 200 Bighas of land. A declaration under Section 6 was made on May 31, 2006, and the final award was passed on May 31, 2007.
The original landowners, Ashok Kumar and Raj Kumar Sharma, sold a portion of the land to Beena Gupta (the respondent) in 2010, three years after the award was passed. In 2018, Beena Gupta filed a writ petition before the Delhi High Court, seeking a declaration that the acquisition had lapsed under Section 24(2) of the 2013 Act on the ground that compensation had not been paid.
The Delhi High Court ruled in favor of the respondent, stating that the acquisition had lapsed due to non-payment of compensation. The Delhi Development Authority (DDA) then challenged this decision before the Supreme Court.
Key Legal Issues
1. Can a Subsequent Purchaser Challenge Land Acquisition?
The Supreme Court examined whether Beena Gupta, who purchased the land in 2010, had the right to challenge the acquisition process that had concluded in 2007.
The DDA argued that a subsequent purchaser does not have the locus standi to challenge land acquisition proceedings. The respondent, however, claimed that since compensation had not been paid, the acquisition should be deemed to have lapsed.
2. Applicability of Section 24(2) of the 2013 Act
The respondent relied on the Supreme Court’s ruling in Pune Municipal Corporation v. Harakchand Misirimal Solanki, which held that land acquisition lapses if compensation is not paid to the landowner. However, the Supreme Court noted that this precedent had been overruled by the Constitution Bench in Indore Development Authority v. Manoharlal (2020).
3. Was Compensation Required to Be Paid Directly to the Landowner?
The Supreme Court ruled that:
“If possession has been taken and compensation has been deposited in the treasury, the acquisition proceedings do not lapse.”
The Court emphasized that deposit of compensation in the treasury, rather than direct payment to the landowner, is sufficient under law.
4. Whether Delay in Claiming Compensation Affects Acquisition?
The Supreme Court pointed out that the respondent challenged the acquisition only in 2018—eleven years after the award was passed. The Court ruled that such a long delay could not be grounds to nullify legally completed acquisition proceedings.
Supreme Court’s Judgment
The Supreme Court ruled in favor of the DDA, stating:
“The impugned judgment and order passed by the High Court in Writ Petition (C) No. 3986/2018 declaring that the acquisition with respect to the lands in question is deemed to have lapsed is hereby quashed and set aside.”
It concluded that the High Court’s reliance on Pune Municipal Corporation was erroneous since that ruling had already been overruled in Indore Development Authority.
Implications of the Judgment
The Supreme Court’s ruling has significant implications for land acquisition cases in India:
- Reaffirmation of Indore Development Authority Case: This case reinforces that land acquisition does not lapse simply because compensation is deposited in the treasury instead of being handed over directly to the landowner.
- Prevention of Misuse of Section 24(2): The ruling prevents landowners from exploiting technicalities to invalidate legally completed acquisitions.
- Finality of Government Acquisitions: It strengthens the government’s ability to acquire land for public projects without prolonged litigation.
Conclusion
The Supreme Court’s decision in Delhi Development Authority v. Beena Gupta (D) Through LRS. & Ors. upholds the validity of land acquisitions where possession has been taken and compensation deposited in the treasury. This ruling ensures that Section 24(2) of the 2013 Act is not misused to challenge acquisitions that have been completed years ago. The judgment sets a crucial precedent for future land disputes, balancing landowners’ rights with the government’s need for infrastructure development.
Petitioner Name: Delhi Development Authority.Respondent Name: Beena Gupta (D) Through LRS. & Ors..Judgment By: Justice M.R. Shah, Justice C.T. Ravikumar.Place Of Incident: Delhi, India.Judgment Date: 16-01-2023.
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