Supreme Court Allows Review Applications in Land Acquisition Cases Based on Overruled Precedent. Court held review maintainable under Article 137 of Constitution of India as subsequent Constitution Bench decision in Indore Development Authority overruled earlier Pune Municipal Corporation decision, altering law and providing sufficient reason for review, with matters restored for fresh consideration on merits.

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Case Note & Summary

The Supreme Court dealt with a group of review applications filed by the Government of NCT of Delhi and Delhi Development Authority under Article 137 of the Constitution of India read with Section 47 of the Code of Civil Procedure, 1908. The applicants sought to review and recall orders passed in civil appeals that had dismissed their cases, holding that land acquisitions had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, based on the precedent set in Pune Municipal Corporation v. Harakchand Misirimal Solanki. The core legal issue was whether review applications were maintainable given that the Pune Municipal Corporation decision had been specifically overruled by a Constitution Bench in Indore Development Authority v. Manohar Lal & others. The applicants argued that the overruling constituted a change in law, providing sufficient reason for review under Article 137, and that res judicata did not apply as the law had been altered. They relied on precedents such as Mathura Prasad Bajoo Jaiswal & Others v. Dossibai N.B. Jeejeebhoy and Assistant Commissioner, Income Tax, Rajkot v. Saurashtra Kutch Stock Exchange Limited to support that judicial decisions have retrospective effect. The respondents opposed, contending that a subsequent change in law cannot be a ground for review and that the matters had attained finality. The court analyzed the arguments, noting that the Constitution Bench had overruled Pune Municipal Corporation and clarified the correct legal position regarding land acquisition lapse. It held that the overruling represented a mistake on the part of the court, invoking the doctrine actus curiae neminem gravabit, and constituted sufficient reason for review. The court condoned the delay in filing the applications and allowed the review, restoring the civil appeals to their original files for fresh consideration on merits in light of the Indore Development Authority decision, ensuring no prejudice to the landowners who would be heard afresh.

Headnote

A) Constitutional Law - Review Jurisdiction - Article 137 of Constitution of India - Review applications filed by Government of NCT of Delhi and Delhi Development Authority seeking review of orders dismissing civil appeals based on Pune Municipal Corporation decision - Court held review maintainable as subsequent Constitution Bench decision in Indore Development Authority overruled Pune Municipal Corporation, altering law and providing sufficient reason for review under Article 137 - Delay in filing review applications condoned (Paras 1-3).

B) Civil Procedure - Review and Recall - Section 47 Code of Civil Procedure, 1908 - Applications to review and recall orders passed in civil appeals declaring land acquisition lapsed under Section 24(2) of 2013 Act - Court allowed review as earlier decisions based on overruled precedent constitute mistake calling for review, invoking doctrine actus curiae neminem gravabit - Orders restored to original files for fresh consideration on merits (Paras 3-4.7).

C) Land Acquisition - Lapse of Acquisition - Section 24(2) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Civil appeals dismissed holding acquisition lapsed based on Pune Municipal Corporation interpretation - Review granted as Constitution Bench in Indore Development Authority clarified correct legal position, specifically overruling Pune Municipal Corporation and holding no lapse under 2013 Act provisions - Matters to be heard afresh in light of subsequent decision (Paras 4-4.8).

D) Precedent - Overruling and Retrospectivity - Judicial decisions altering earlier law - Applicants contended Pune Municipal Corporation decision overruled by Constitution Bench in Indore Development Authority, with overruling having retrospective effect clarifying correct principle of law - Court accepted that subsequent decision alters earlier one and operates retrospectively, making review appropriate as law changed since earlier decision (Paras 4.1-4.6).

E) Res Judicata - Exception for Changed Law - Principle not applicable on question of law when law altered since earlier decision - Court held that where law is laid down by Constitution Bench overruling earlier decision which was basis for dismissing appeals, res judicata shall not apply, allowing review of settled position inter parties (Paras 4.2-4.3).

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Issue of Consideration

Whether review applications under Article 137 of Constitution of India read with Section 47 of CPC are maintainable to review and recall orders dismissing civil appeals based on Pune Municipal Corporation decision which was subsequently overruled by Constitution Bench in Indore Development Authority case

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Final Decision

Court allowed review applications, condoned delay, reviewed and recalled earlier orders dismissing civil appeals, restored matters to original files for fresh consideration on merits in light of Indore Development Authority decision

Law Points

  • Review under Article 137 of Constitution of India and Section 47 of Code of Civil Procedure
  • 1908 (CPC) permissible when earlier decision based on overruled precedent
  • subsequent alteration in law by Constitution Bench decision not barred by res judicata
  • doctrine of actus curiae neminem gravabit applies to court mistakes
  • judicial decisions have retrospective effect clarifying correct legal position
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Case Details

2023 LawText (SC) (3) 106

MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 32257/2021) IN CIVIL APPEAL NO. 11857 OF 2016 WITH MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 29713/2018) IN CIVIL APPEAL NO. 11857 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 23353/2019) IN CIVIL APPEAL NO. 8909 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 14614/2018) IN CIVIL APPEAL NO. 8529 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 36340/2018) IN CIVIL APPEAL NO. 11857 OF 2016  MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 41755/2018) IN CIVIL APPEAL NO. 8899 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 42234/2018) IN CIVIL APPEAL NO. 8527 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 44917/2018) IN CIVIL APPEAL NO. 8547 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 46131/2018) IN CIVIL APPEAL NO. 8952 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 2230/2019) IN CIVIL APPEAL NO. 12111 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 6119/2019) IN CIVIL APPEAL NO. 8935 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 6120/2019) IN CIVIL APPEAL NO. 8954 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 6131/2019) IN CIVIL APPEAL NO. 9049 OF 2016  MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 7653/2019) IN CIVIL APPEAL NO. 8559 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 7922/2019) IN CIVIL APPEAL NO. 8511 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 8510/2019) IN CIVIL APPEAL NO. 8925 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 8554/2019) IN CIVIL APPEAL NO. 9214 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 9317/2019) IN CIVIL APPEAL NO. 12114 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 20589/2019) IN CIVIL APPEAL NO. 9595 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 21094/2019) IN CIVIL APPEAL NO. 8898 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 21378/2019) IN  CIVIL APPEAL NO. 11853 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 22637/2019) IN CIVIL APPEAL NO. 4599 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 23912/2019) IN CIVIL APPEAL NO. 8921 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 24543/2019) IN CIVIL APPEAL NO. 8505 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 24209/2019) IN CIVIL APPEAL NO. 10206 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 24544/2019) IN CIVIL APPEAL NO. 8904 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 25574/2019) IN CIVIL APPEAL NO. 9719 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 26034/2019) IN CIVIL APPEAL NO. 12046 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 26476/2019) IN  CIVIL APPEAL NO. 8957 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 27950/2019) IN CIVIL APPEAL NO. 8922 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 28432/2019) IN CIVIL APPEAL NO. 8929 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 29785/2019) IN SPECIAL LEAVE PETITION(CIVIL) NO. 17316 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 31560/2019) IN CIVIL APPEAL NO. 8545 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 31822/2019) IN CIVIL APPEAL NO. 9598 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 37443/2019) IN CIVIL APPEAL NO. 11256 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 37444/2019) IN CIVIL APPEAL NO. 11854 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 44515/2019) IN  CIVIL APPEAL NO. 9597 OF 2016 CONTEMPT PETITION(CIVIL) NO.735/2018 IN CIVIL APPEAL NO. 11857/2016 MISCELLANEOUS APPLICATION NO. 159/2018 IN CIVIL APPEAL NO. 11857 OF 2016 MISCELLANEOUS APPLICATION NO. OF 2022 (Diary No. 5715/2022) IN CIVIL APPEAL NO. 11841 OF 2016 REVIEW PETITION(CIVIL) NO. 882/2017 IN CIVIL APPEAL NO. 11846 OF 2016

2023-03-17

M.R. Shah

Shri Sanjay Poddar, Shri Shyam Divan, Sri V. Giri, Shri Neeraj Kumar Jain, Shri Vivek Chib

Government of NCT of Delhi, Delhi Development Authority

M/s. K.L. Rathi Steels Limited and others

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Nature of Litigation

Review applications under Article 137 of Constitution of India read with Section 47 of CPC

Remedy Sought

Government of NCT of Delhi and Delhi Development Authority seeking review and recall of orders passed in civil appeals dismissing/disposing of them, to restore to original files for consideration on merits

Filing Reason

Earlier orders dismissed civil appeals based on Pune Municipal Corporation decision which was subsequently overruled by Constitution Bench in Indore Development Authority case

Previous Decisions

Civil appeals dismissed/disposed of holding land acquisitions lapsed under Section 24(2) of 2013 Act based on Pune Municipal Corporation decision

Issues

Whether review applications under Article 137 of Constitution of India read with Section 47 of CPC are maintainable to review orders based on overruled precedent

Submissions/Arguments

Applicants submitted that Pune Municipal Corporation decision overruled by Constitution Bench in Indore Development Authority, providing ground for review as law changed, res judicata not applicable, judicial decisions have retrospective effect Respondents opposed that change in law cannot be ground for review, matters attained finality, overruling only affects precedential value not decrees

Ratio Decidendi

Review under Article 137 of Constitution of India is permissible when earlier decision based on precedent subsequently overruled by Constitution Bench, as alteration in law provides sufficient reason for review, res judicata does not apply to changed question of law, and judicial decisions have retrospective effect clarifying correct legal position

Judgment Excerpts

All these applications under Article 137 of the Constitution of India r/w Section 47 of the Civil Procedure Code (CPC) have been preferred by the Government of NCT of Delhi and Delhi Development Authority to review and recall the orders passed in the respective Civil Appeals the decision of this Court in the case of Pune Municipal Corporation (supra) , which was relied upon while dismissing/disposing off all the respective appeals has been specifically overruled by a Constitution Bench of this Court in the case of Indore Development Authority v. Manohar Lal & others power to review flows from Article 137 of the Constitution of India the principle of res judicata shall not be applicable on the question of law a mistake on the part of the Court may also call for a review of the order

Procedural History

Civil appeals dismissed/disposed of by Supreme Court based on Pune Municipal Corporation decision; review applications filed under Article 137 of Constitution read with Section 47 of CPC; delay condoned; review allowed and matters restored for fresh consideration

Acts & Sections

  • Constitution of India: Article 137
  • Code of Civil Procedure, 1908 (CPC): Section 47
  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24(2)
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