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Civil Property & InheritanceSupreme Court of India

Karnail Kaur & Ors. v. State of Punjab & Ors.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 7424 of 2013)Decided 22 Jan 2015
Civil Appeal No. 7424 of 2013
Justice V. Gopala Gowda · Justice C. Nagappan

Background

The appellants, residents of village Sohana in Mohali, Punjab, owned houses and land that the State of Punjab sought to acquire in 2000 under the Land Acquisition Act, 1894, for a residential urban development project. The appellants' writ petitions challenging the acquisition were dismissed by the Punjab and Haryana High Court in 2011, and they appealed to the Supreme Court. While the appeal was pending, the new Right to Fair Compensation and Transparency in Land Acquisition Act, 2013 came into force, and the appellants applied under its Section 24(2), which deems old acquisition proceedings to have lapsed in certain circumstances (such as possession not having been taken or compensation not having been paid for five years or more).

Decision Breakdown

The Supreme Court examined whether the 2013 Act's lapse provision could apply to proceedings that were already the subject of a pending appeal, and relied on established principles that a repeal followed by fresh legislation does not retrospectively alter substantive rights unless the new law says so expressly, while procedural changes are presumed to apply to pending matters. Applying Section 24(2) of the 2013 Act, the Court found that the acquisition proceedings concerning the appellants' land had indeed lapsed since possession had not been taken and/or compensation had not been paid within the stipulated period. It accordingly allowed the applications and the connected appeals, quashing the land acquisition notification as it applied to the appellants' land, while dismissing a separate impleadment and intervention application as not maintainable.

Lesson Learnt

Landowners facing old, long-pending land acquisition proceedings can invoke the "deemed lapse" provision in the 2013 land acquisition law if the government never took possession of the land or never paid compensation within the specified period, even if their case is still pending in appeal when the new law comes into force.

Karnail Kaur & Ors. v. State of Punjab & Ors. – Legal Case Shots | LegalAware