Delhi Development Authority v. Reena Suri & Ors.
Background
The Delhi Development Authority (DDA) had initiated land acquisition under the old Land Acquisition Act, 1894 and obtained awards on various dates, but in most of these cases had not taken physical possession of the land or paid compensation for five years or more before 1 January 2014, when the new 2013 Act came into force. The Delhi High Court held that, under Section 24 of the 2013 Act, all such acquisition proceedings had lapsed because of this delay. DDA appealed to the Supreme Court, arguing that once an award is passed, the land automatically vests in the government and the acquisition cannot be said to have lapsed.
Decision Breakdown
The Supreme Court rejected DDA's argument, holding that under Section 16 of the 1894 Act, land vests in the government only once the Collector has actually taken possession after the award: mere passing of an award does not by itself vest the land. Since it was undisputed that DDA had not taken possession of the land in any of these cases within five years (or more) before the 2013 Act commenced, Section 24(2) of the 2013 Act applied and the acquisition proceedings stood lapsed. The Court found no merit in any of the 58 connected appeals and dismissed all of them, with no order as to costs, while noting the government remained free to initiate fresh acquisition proceedings under the 2013 Act if it chose to.
Lesson Learnt
Passing a land acquisition award alone does not transfer ownership to the government: physical possession must actually be taken; if a government authority sits on an award without taking possession or paying compensation for five years or more, the acquisition can lapse entirely under the 2013 land acquisition law, forcing the authority to start the process over if it still wants the land.