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Civil Property & InheritanceSupreme Court of India

Rattan Singh v. Union of India

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 2851 of 2009)Decided 8 Dec 2015
Civil Appeal No. 2851 of 2009
Justice Vikramajit Sen · Justice Shiva Kirti Singh

Background

Land belonging to the appellants was acquired under the Land Acquisition Act, 1894. The notification was issued in 1959, the declaration in 1966, and the award was passed in 1968. The authorities said the owners never came forward to collect the compensation, which stayed with the Land Acquisition Collector. The appellants then relied on the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013, which provides that an acquisition lapses if the award is more than five years old and compensation has not been paid.

Decision Breakdown

The Court held that compensation is treated as "paid" only if it has actually been handed to the owner, or if it has been offered to the owner and deposited in the court, as Section 31(2) of the 1894 Act requires. Merely keeping the money in a government or revenue account, or with the Collector, does not count as payment. Since the award predated 1 January 2009 and compensation was not paid or deposited in court, Section 24(2) of the 2013 Act applied and the acquisition was deemed to have lapsed. The Court did not need to decide the disputed question of who had taken possession. The appeals were allowed, and the government was left free to start a fresh acquisition under the 2013 Act.

Lesson Learnt

If the government acquires your land and the compensation is never actually paid to you or deposited in court in your name, the acquisition may lapse under the 2013 Act. Money sitting in a government account, or an award that was never paid, does not count as compensation being paid.

Rattan Singh v. Union of India – Legal Case Shots | LegalAware