Delhi Development Authority v. Ishwar Singh and Ors.
Background
The Delhi Development Authority (DDA) had acquired land from the respondent landowner but had admittedly never paid the compensation due. The High Court held that, as a result, the acquisition proceedings had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and the DDA appealed that finding to the Supreme Court.
Decision Breakdown
The Supreme Court agreed with the High Court, holding that since compensation had admittedly not been paid to the landowner, the proceedings had indeed lapsed, and dismissed DDA's appeal. However, in light of the specific facts, the Court granted DDA liberty under Section 24(2) of the 2013 Act to initiate fresh acquisition proceedings within a stated period (by issuing a Section 11 notification), failing which, if DDA remained in possession, it was directed to return physical possession of the land to the original owner.
Lesson Learnt
A government authority that acquires land but fails to actually pay compensation to the owner risks having the entire acquisition declared lapsed under the 2013 Act, and if it does not promptly restart the acquisition process properly, it can be compelled to hand the land back.