Supreme Court Allows State's Appeal in Land Acquisition Case Due to Lack of Locus Standi of Subsequent Purchasers. Acquisition Does Not Lapse Under Section 24(2) of RFCTLARR Act, 2013 as Subsequent Purchasers Cannot Claim Compensation or Challenge Proceedings After Section 4 Notification.

  • 4
Judgement Image
Font size:
Print

Case Note & Summary

The dispute arose from a land acquisition case where the State of Haryana appealed against a High Court judgment that declared the acquisition lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The private respondents, who were original writ petitioners before the High Court, claimed that compensation for the land had not been paid to them and possession remained with them, leading to a deemed lapse of acquisition. The appellants, representing the State, contested this by arguing that the private respondents were subsequent purchasers after the Section 4 notification dated 26.08.2003 and thus lacked locus standi to challenge the acquisition or seek its lapse. They also disputed the claim that possession was not taken over. The core legal issue was whether the High Court correctly applied Section 24(2) of the 2013 Act based on the claims of subsequent purchasers. The appellants contended that subsequent purchasers have no right to compensation or to pray for lapse, as they were not owners at the time of the acquisition notifications. The private respondents relied on their status as current owners and the alleged non-payment of compensation and non-taking of possession. The Supreme Court analyzed the provisions of the 2013 Act, emphasizing that for a lapse under Section 24(2), the conditions of non-payment of compensation and non-taking of possession must be established by the original landowners or those with valid standing. The court reasoned that subsequent purchasers, who acquired the land after the Section 4 notification, cannot invoke Section 24(2) to claim lapse, as their entitlement to compensation is not recognized under the acquisition law. The court found that the High Court erred in allowing the writ petition without properly addressing the locus standi issue and the factual disputes. Consequently, the Supreme Court set aside the High Court's judgment, holding that the acquisition did not lapse and that the subsequent purchasers' petition was not maintainable.

Headnote

A) Land Acquisition Law - Lapse of Acquisition - Locus Standi of Subsequent Purchasers - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - The private respondents were subsequent purchasers after the Section 4 notification dated 26.08.2003, and the appellants contended they had no locus standi to challenge the acquisition or pray for lapse. The Supreme Court held that subsequent purchasers cannot claim lapse under Section 24(2) as compensation non-payment to them is irrelevant, and the High Court erred in considering their petition. (Paras 1-2.1)

B) Land Acquisition Law - Lapse of Acquisition - Conditions for Deemed Lapse - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - The private respondents claimed compensation was not paid and possession was with them, seeking lapse under Section 24(2). The Supreme Court found the High Court failed to properly examine the factual disputes on possession and compensation, and the subsequent purchasers' claims did not satisfy the statutory conditions for lapse. Held that the acquisition did not lapse, and the High Court's order was set aside. (Paras 1-2.1)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the High Court was justified in declaring the acquisition lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 based on claims by subsequent purchasers

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Supreme Court allowed the appeal, set aside the impugned judgment and order of the High Court, and held that the acquisition did not lapse under Section 24(2) of RFCTLARR Act, 2013

Law Points

  • Subsequent purchasers after Section 4 notification lack locus standi to challenge acquisition or claim lapse under Section 24(2) of RFCTLARR Act
  • 2013
  • compensation non-payment to them is irrelevant for lapse determination
  • possession and compensation facts must be established by original landowners
Subscribe to unlock Law Points Subscribe Now

Case Details

2023 LawText (SC) (1) 38

CIVIL APPEAL NO.9205 of 2022 (@ SLP (C) No.23446 of 2022) (@ Diary No.29159 of 2021)

2023-01-13

M.R. Shah

State of Haryana

Private respondents (original writ petitioners)

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Appeal against High Court judgment declaring land acquisition lapsed under Section 24(2) of RFCTLARR Act, 2013

Remedy Sought

State of Haryana seeks reversal of High Court's order and declaration that acquisition did not lapse

Filing Reason

Aggrieved by High Court's decision allowing writ petition of private respondents

Previous Decisions

High Court allowed CWP No.15720 of 2014, declaring acquisition lapsed under Section 24(2) of RFCTLARR Act, 2013

Issues

Whether the High Court was justified in declaring the acquisition lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 based on claims by subsequent purchasers

Submissions/Arguments

Private respondents claimed compensation not paid and possession with them, leading to lapse under Section 24(2) Appellants contended private respondents were subsequent purchasers after Section 4 notification and lacked locus standi to challenge acquisition or pray for lapse

Ratio Decidendi

Subsequent purchasers after Section 4 notification lack locus standi to challenge acquisition or claim lapse under Section 24(2) of RFCTLARR Act, 2013; compensation non-payment to them is irrelevant for lapse determination

Judgment Excerpts

the High Court has allowed the said writ petition and has declared that the acquisition with respect to the land in question is deemed to have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 the original writ petitioners being the subsequent purchasers after the notification under Section 4 dated 26.08.2003 there was no question of any compensation to be paid to them the petitioners being subsequent purchasers had no locus to challenge the acquisition proceedings more particularly to pray for lapse of the acquisition proceedings

Procedural History

High Court allowed CWP No.15720 of 2014 on 05.12.2017, declaring acquisition lapsed under Section 24(2) of RFCTLARR Act, 2013; State of Haryana appealed to Supreme Court

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(2)
  • Land Acquisition Act, 1894: Section 4, Section 6
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Appeal of Accused in IPC Case Based on Juvenility Determination. Conviction Under Sections 302 and 201 IPC Quashed as Appellant Was Juvenile Under Juvenile Justice Act, 1986, Prohibiting Imprisonment and Mandating Special Home Tr...
Related Judgement
Supreme Court Supreme Court Allows State's Appeal in Land Acquisition Case Due to Lack of Locus Standi of Subsequent Purchasers. Acquisition Does Not Lapse Under Section 24(2) of RFCTLARR Act, 2013 as Subsequent Purchasers Cannot Claim Compensation or Challenge Pr...