Supreme Court Allows Government Appeal in Land Acquisition Case Due to Lack of Locus Standi and Overruled Precedent. High Court's Order Declaring Acquisition Lapsed Under Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 Quashed as Petitioner Was Not Recorded Owner and Relied on Overruled Pune Municipal Corporation Decision.

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Case Note & Summary

The Supreme Court heard an appeal by the Government of NCT of Delhi against a High Court judgment that had allowed a writ petition declaring land acquisition lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The High Court had relied on the Pune Municipal Corporation decision, finding that possession of the subject land could not be taken. Before the Supreme Court, the appellant contended that the land belonged to Gram Sabha, and thus the original writ petitioner lacked locus standi to seek declaration of lapse. The respondent's counsel did not dispute this ownership claim. The Supreme Court noted that the High Court had entertained the writ petition without deciding the ownership question, keeping it open, despite the petitioner's admission regarding Gram Sabha ownership. The Court emphasized that only recorded owners or persons with title could challenge acquisition or claim compensation. Furthermore, the Court observed that the Pune Municipal Corporation decision, relied upon by the High Court, had been specifically overruled by the Constitution Bench in Indore Development Authority v. Manoharlal. The Constitution Bench had held that for deemed lapse under Section 24(2), both possession must not have been taken AND compensation must not have been paid, interpreting 'or' as 'nor' or 'and'. Applying this law and considering the locus standi issue, the Supreme Court found the High Court's judgment unsustainable. It quashed and set aside the impugned order, allowing the appeal with no costs.

Headnote

A) Land Acquisition - Locus Standi - Right to Challenge Acquisition - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Writ petition challenging land acquisition can only be entertained at the instance of recorded owner or person with title - High Court erred in entertaining petition when petitioner admitted land belonged to Gram Sabha and was not recorded owner - Held that question of compensation arises only in favour of recorded owner/title holder (Paras 1-2.1).

B) Land Acquisition - Deemed Lapse - Section 24(2) Interpretation - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24(2) - Deemed lapse under Section 24(2) requires both non-taking of possession AND non-payment of compensation - Word 'or' in Section 24(2) must be read as 'nor' or 'and' following Constitution Bench ruling - Pune Municipal Corporation decision overruled by Indore Development Authority - Held that High Court's reliance on overruled precedent was erroneous (Paras 2-3).

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Issue of Consideration

Whether the High Court erred in entertaining a writ petition and declaring land acquisition lapsed under Section 24(2) of the 2013 Act when the petitioner lacked locus standi as the land belonged to Gram Sabha and the relied-upon precedent had been overruled

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Final Decision

Supreme Court allowed the appeal, quashed and set aside the impugned High Court judgment and order, with no costs

Law Points

  • Locus standi requires person to be recorded owner or have title to challenge land acquisition
  • deemed lapse under Section 24(2) of Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013 requires both non-taking of possession and non-payment of compensation
  • Pune Municipal Corporation decision overruled by Indore Development Authority Constitution Bench
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Case Details

2023 LawText (SC) (2) 77

CIVIL APPEAL NO.942 OF 2023 (@ SLP (C) NO.3116 of 2023) (@ DIARY NO.28432 OF 2022)

2023-02-17

M.R. Shah

Government of NCT of Delhi

Dhannu & Anr.

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Nature of Litigation

Appeal against High Court judgment allowing writ petition declaring land acquisition lapsed

Remedy Sought

Appellant sought quashing of High Court order; respondent sought declaration that acquisition lapsed under Section 24(2) of 2013 Act

Filing Reason

Appellant aggrieved by High Court's decision based on overruled precedent and petitioner's lack of locus standi

Previous Decisions

High Court allowed writ petition declaring acquisition lapsed under Section 24(2) of 2013 Act, relying on Pune Municipal Corporation decision

Issues

Whether High Court erred in entertaining writ petition when petitioner lacked locus standi as land belonged to Gram Sabha Whether High Court erred in relying on overruled Pune Municipal Corporation decision regarding Section 24(2) of 2013 Act

Submissions/Arguments

Appellant argued land belonged to Gram Sabha so petitioner had no locus standi Respondent did not dispute land belonged to Gram Sabha

Ratio Decidendi

Only recorded owners or persons with title have locus standi to challenge land acquisition or claim compensation; deemed lapse under Section 24(2) of 2013 Act requires both non-taking of possession and non-payment of compensation, as per Constitution Bench ruling in Indore Development Authority overruling Pune Municipal Corporation

Judgment Excerpts

the High Court 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 land belongs to Gram Sabha and therefore the original writ petitioner had no locus to pray for declaration the decision of this Court in the case of Pune Municipal Corporation and Anr. (supra) , which has been relied upon by the High Court has been specifically overruled by the Constitution Bench of this Court in the case of Indore Development Authority versus Manoharlal and others

Procedural History

High Court allowed writ petition declaring acquisition lapsed under Section 24(2) of 2013 Act on 16.11.2017; Supreme Court heard appeal and quashed High Court order

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: 24(2)
  • Land Acquisition Act, 1894: 4, 16, 31, 34
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