Supreme Court Quashes High Court Ruling on Land Acquisition in Delhi: Key Legal Precedents Upheld

The case of The Secretary, Land & Building Department, Govt. of NCT of Delhi & Others v. Om Prakash (Dead) Through LRs. & Others revolves around the interpretation of Section 24(2) of 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 proceedings as lapsed, setting an important precedent on land acquisition laws and property rights.

Background of the Case

The dispute pertains to land acquisition in Delhi under the Land Acquisition Act, 1894. The original notification under Section 4 was issued on January 23, 1965, and the award was declared on January 9, 1981. According to the authorities, possession of the land was taken over on September 23, 1981, and handed over to the beneficiary department.

However, decades later, in 2014, the landowners filed a writ petition before the Delhi High Court, arguing that their land acquisition had lapsed under Section 24(2) of the 2013 Act because compensation had not been fully paid. The High Court ruled in their favor, holding that the acquisition had lapsed.

The Government of NCT of Delhi and the Delhi Development Authority (DDA) challenged this ruling before the Supreme Court, contending that:

Possession of the land had been lawfully taken.
The land was handed over to the relevant government department.
Compensation issues could not be grounds for lapsing of acquisition if possession had already been taken.

Key Legal Issues

1. Interpretation of Section 24(2) of the 2013 Act

The landowners relied on the earlier judgment 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 & Others (2020).

2. Does Compensation Have 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.

3. Whether Delay in Claiming Compensation Affects Acquisition?

The Supreme Court pointed out that the landowners raised the issue of non-payment of compensation for the first time in 2014—24 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 Government of Delhi and the DDA, stating:

“The impugned judgment and order passed by the High Court in Writ Petition (C) No. 5664/2014 declaring that the acquisition with respect to the lands in question is deemed to have lapsed, is hereby quashed and set aside.”

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 The Secretary, Land & Building Department, Govt. of NCT of Delhi v. Om Prakash (Dead) Through LRs. & Others 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: The Secretary, Land & Building Department, Govt. of NCT of Delhi & Others.
Respondent Name: Om Prakash (Dead) Through LRs. & Others.
Judgment By: Justice M.R. Shah, Justice Hima Kohli.
Place Of Incident: Delhi, India.
Judgment Date: 20-01-2023.

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