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Delhi Development Authority vs. Anita Singh & Ors.

Civil Appeal · 2023 INSC 473Decided 1 May 2023
Civil Appeal No. 2994 of 2023
Abhay S. Oka · Rajesh Bindal

Background

Land in a Delhi village was acquired via a 2006 notification, a 2007 declaration, and a 2008 compensation award under the old Land Acquisition Act, 1894, for a major road project (UER-II) connecting national highways around Delhi. The respondent, who claimed to have purchased a small plot on this land in 2005 but was not the recorded owner, filed a writ petition in 2016 arguing the acquisition had "lapsed" under Section 24(2) of the 2013 Act because neither possession had been taken nor compensation paid to her. The Delhi High Court agreed and held the acquisition lapsed; the DDA appealed to the Supreme Court.

Decision Breakdown

The Supreme Court applied its Constitution Bench ruling in Indore Development Authority v. Manoharlal (2020), which held that satisfying either of the two conditions, taking possession OR paying/tendering compensation, is enough to save an acquisition from lapsing, and that depositing compensation in court (when ownership is disputed) counts as valid tender. Here, possession had been taken in 2012, and because the respondent's ownership was disputed (she was not the recorded owner), the compensation was validly deposited with the Reference Court in 2013. She had even admitted in a 2009 application that she knew of the acquisition and was not the recorded owner. Since at least one condition (in fact both) was satisfied, there was no lapse under Section 24(2), and once land vests in the State after acquisition, anyone continuing to hold it is legally a trespasser. The Supreme Court set aside the High Court's order and dismissed the original writ petition.

Lesson Learnt

Land acquisition does not automatically lapse just because compensation wasn't handed directly to a claimant. If the government took possession, or validly deposited disputed compensation in court because ownership was contested, the acquisition stands, and a landowner claiming a lapse must show inaction on both possession and payment.

Official source (sci.gov.in)View Judgment (PDF)

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