Supreme Court Allows DDA Appeal in Land Acquisition Lapse Case: Deposit of Compensation with Reference Court Constitutes Payment Under Section 24(2) of RFCTLARR Act, 2013. The Court held that where compensation is deposited with the Reference Court due to ownership disputes, it satisfies the payment requirement and prevents lapse of acquisition.

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Case Note & Summary

The case involves an appeal by the Delhi Development Authority (DDA) against a High Court order declaring that the acquisition of land had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the 2013 Act). The respondent, Anita Singh, had purchased 100 square yards of land in Village Dichaun Kalan, Delhi, which was subject to acquisition under the Land Acquisition Act, 1894 (the 1894 Act). A notification under Section 4 was issued on 07.04.2006, followed by a declaration under Section 6 on 04.04.2007, and an award under Section 11 on 30.12.2008. The respondent filed a writ petition in 2016 claiming that neither compensation had been paid nor possession taken, and thus the acquisition had lapsed. The Land Acquisition Collector contended that possession was taken on 10.02.2012 except for 3 biswas of land, and compensation was deposited with the Reference Court on 27.12.2013 due to disputes over ownership. The High Court held that since compensation was not paid to the respondent, the acquisition lapsed. The Supreme Court, relying on the Constitution Bench decision in Indore Development Authority v. Manoharlal, held that deposit of compensation with the Reference Court constitutes payment under Section 24(2) of the 2013 Act. The Court found that the compensation was deposited before the commencement of the 2013 Act, and possession was taken, so the acquisition did not lapse. The appeal was allowed, and the High Court's order was set aside.

Headnote

A) Land Acquisition - Lapse of Acquisition - Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Payment of Compensation - Deposit with Reference Court - Where compensation is deposited with the Reference Court due to dispute over ownership or non-acceptance, it constitutes 'payment of compensation' under Section 24(2) - The court held that the deposit of compensation with the Reference Court on 27.12.2013, prior to the commencement of the 2013 Act, satisfies the requirement of payment, and the acquisition does not lapse (Paras 6-10).

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Issue of Consideration

Whether deposit of compensation with the Reference Court under Section 30 of the Land Acquisition Act, 1894, constitutes 'payment of compensation' under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, thereby preventing lapse of acquisition.

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Final Decision

The Supreme Court allowed the appeal, set aside the High Court order dated 22.08.2017, and dismissed the writ petition filed by the respondent. The Court held that the deposit of compensation with the Reference Court constitutes payment under Section 24(2) of the 2013 Act, and since possession was taken, the acquisition did not lapse.

Law Points

  • Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013
  • deposit of compensation with Reference Court
  • payment of compensation
  • possession of land
  • lapse of acquisition
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Case Details

2023 LawText (SC) (5) 24

Civil Appeal No. 2994 of 2023

2023-05-01

Rajesh Bindal

Delhi Development Authority

Anita Singh & Ors.

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Nature of Litigation

Civil appeal against High Court order declaring lapse of land acquisition under Section 24(2) of the 2013 Act.

Remedy Sought

Appellant (DDA) sought setting aside of High Court order and dismissal of writ petition.

Filing Reason

Respondent no.1 filed writ petition claiming acquisition lapsed due to non-payment of compensation and non-taking of possession.

Previous Decisions

High Court allowed writ petition, holding acquisition lapsed.

Issues

Whether deposit of compensation with Reference Court constitutes payment under Section 24(2) of the 2013 Act.

Submissions/Arguments

Appellant argued that compensation was deposited with Reference Court on 27.12.2013, which constitutes payment, and possession was taken on 10.02.2012, so acquisition did not lapse. Respondent argued that compensation was not paid to her personally, and possession was not taken, so acquisition lapsed.

Ratio Decidendi

Deposit of compensation with the Reference Court under Section 30 of the 1894 Act, due to dispute over ownership or non-acceptance, constitutes 'payment of compensation' under Section 24(2) of the 2013 Act, and if possession has been taken, the acquisition does not lapse.

Judgment Excerpts

The deposit of compensation with the Reference Court constitutes payment of compensation under Section 24(2) of the 2013 Act. The acquisition does not lapse if compensation has been deposited and possession has been taken.

Procedural History

The respondent filed Writ Petition (C) No.5339/2016 before the High Court of Delhi, which was allowed on 22.08.2017. The appellant appealed to the Supreme Court by way of Civil Appeal No.2994/2023.

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, Section 11, Section 30
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