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)
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
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





