Supreme Court Allows Appeals in Land Acquisition Case Due to Lack of Locus Standi of Subsequent Purchaser. Subsequent Purchaser Cannot Challenge Acquisition or Pray for Lapsing Under Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, as Established by Precedents.

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Case Note & Summary

The dispute arose from a land acquisition matter where the Delhi High Court allowed a writ petition, declaring that the acquisition had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The appellants, Delhi Development Authority and Government of NCT of Delhi, challenged this decision before the Supreme Court, arguing that the original writ petitioner was a subsequent purchaser who had no locus standi to challenge the acquisition or pray for its lapsing. The respondent admitted to being a subsequent purchaser but contended that certain precedents were inapplicable due to differences in title claims. The core legal issue was whether a subsequent purchaser, who purchased land after acquisition proceedings commenced and the award was declared, had the standing to seek lapsing of the acquisition under Section 24(2). The appellants relied on Supreme Court decisions in Shiv Kumar & Anr. v. Union of India & Ors. and Delhi Development Authority v. Godfrey Phillips (I) Ltd. & Ors., which established that subsequent purchasers lack locus standi. The respondent argued that Shiv Kumar was distinguishable because it involved title based on a general power of attorney, whereas here, the purchase was via registered sale deed, and relied on Government (NCT of Delhi) v. Manav Dharam Trust and Anr. The Supreme Court analyzed the precedents, holding that the principle from Shiv Kumar and Godfrey Phillips applies regardless of the mode of purchase, as the law clearly states that subsequent purchasers have no locus standi. It further noted that the Manav Dharam Trust decision had been held per incuriam in later cases. The Court found that the High Court failed to address the maintainability objection regarding the subsequent purchaser's locus standi, making its order unsustainable. Consequently, the Supreme Court allowed the appeals, quashed the High Court's judgment, and set aside the declaration of deemed lapse, with no order as to costs.

Headnote

A) Land Acquisition Law - Locus Standi - Subsequent Purchaser - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - The Supreme Court considered whether a subsequent purchaser, who bought land after acquisition proceedings commenced and award was declared, could challenge the acquisition or pray for its lapsing under Section 24(2). Held that a subsequent purchaser has no locus standi to challenge the acquisition or pray for its lapsing, as per established precedents, and the High Court's failure to address this maintainability issue rendered its order unsustainable. (Paras 1-6)

B) Land Acquisition Law - Judicial Precedent - Per Incuriam Decision - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The Court addressed reliance on an earlier decision that was held to be per incuriam in subsequent rulings. Held that the decision in Government (NCT of Delhi) v. Manav Dharam Trust and Anr. was per incuriam and could not be relied upon, reinforcing the principle that subsequent purchasers lack locus standi. (Paras 3-5)

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Issue of Consideration

Whether a subsequent purchaser of land, who purchased after acquisition proceedings commenced and award was declared, has locus standi to challenge the acquisition or pray for its lapsing under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

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Final Decision

Supreme Court allowed appeals, quashed and set aside High Court judgment, held no deemed lapse of acquisition, with no order as to costs

Law Points

  • Subsequent purchaser has no locus standi to challenge land acquisition or pray for its lapsing under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013
  • as established by Supreme Court precedents
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Case Details

2023 LawText (SC) (2) 67

CIVIL APPEAL NO. 944 OF 2023 (@ SLP (C) No. 18982 of 2022) WITH CIVIL APPEAL NO. 947 OF 2023 (@ SLP (C) No. 3167 of 2023) (@ Diary No. 1203 of 2023)

2023-02-17

M.R. Shah

Delhi Development Authority, Government of NCT of Delhi

MGS (India) Private Limited & Ors.

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Nature of Litigation

Appeal against High Court judgment allowing writ petition and declaring land acquisition lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

Remedy Sought

Appellants sought to quash High Court order and set aside declaration of deemed lapse of acquisition

Filing Reason

Appellants aggrieved by High Court's decision that acquisition lapsed, based on subsequent purchaser's writ petition

Previous Decisions

High Court allowed writ petition, declaring acquisition lapsed under Section 24(2); appellants challenged this in Supreme Court

Issues

Whether a subsequent purchaser has locus standi to challenge land acquisition or pray for its lapsing under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

Submissions/Arguments

Appellants argued subsequent purchaser had no locus standi to challenge acquisition or pray for lapsing, citing precedents Respondent admitted being subsequent purchaser but argued precedents were inapplicable due to differences in title claims and relied on earlier decision

Ratio Decidendi

A subsequent purchaser of land, who purchased after acquisition proceedings commenced and award was declared, has no locus standi to challenge the acquisition or pray for its lapsing under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, as per established Supreme Court precedents

Judgment Excerpts

subsequent purchaser has no locus to challenge the lapsing of the acquisition High Court ought to have dealt with the said aspect impugned judgment and order passed by the High Court is unsustainable

Procedural History

High Court allowed writ petition declaring acquisition lapsed under Section 24(2); appellants filed appeals to Supreme Court; Supreme Court heard arguments and allowed appeals, quashing High Court order

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(2)
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