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Civil Property & InheritanceSupreme Court of India

Working Friends Coop. House Building Society Ltd. v. State of Punjab

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 8468 of 2015)Decided 12 Oct 2015
Civil Appeal No. 8468 of 2015
Justice Madan B. Lokur · Justice R.K. Agrawal

Background

The State acquired about 14.90 acres of the society's land under the old Land Acquisition Act, 1894, with an award made in February 1995 fixing compensation at about Rs. 35.5 lakh. That amount was never paid to the landowner and was instead deposited in the Government Treasury. While the society's challenge was pending in the Supreme Court, the 2013 Act came into force on 1 January 2014, and the society asked the Court to declare the acquisition lapsed.

Decision Breakdown

The Court held that under Section 24(2) of the 2013 Act, acquisition proceedings lapse where the award was made more than five years before the Act and the compensation has neither been paid to the landowner nor deposited in court. Depositing money in the Government Treasury does not count as payment or as deposit in court, and a later deposit in the Reference Court made after the Act came into force also could not be treated as "deemed payment". Following Pune Municipal Corporation, Union of India v. Shiv Raj and Karnail Kaur, the Court set aside the High Court's judgment and held the acquisition lapsed as far as the appellant's land is concerned. It did not need to decide the disputed question of who was in physical possession.

Lesson Learnt

If the government acquired private land many years ago but never paid the compensation to the owner or deposited it in court, the acquisition can lapse under the 2013 law. Parking the money in a government treasury account is not enough.

Working Friends Coop. House Building Society Ltd. v. State of Punjab – Legal Case Shots | LegalAware