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Delhi Development Authority vs Beena Gupta (D) Through LRs. & Ors.

Civil Appeal · 2023 INSC 47Decided 16 Jan 2023
Civil Appeal No. 9287 of 2022
M.R. Shah · C.T. Ravikumar

Background

In 2005-2006 the Delhi authorities notified about 200 bighas of land in Village Mundaka for acquisition under the Land Acquisition Act, 1894; the award was passed on 31 May 2007 and, according to the DDA, possession was taken on 15 December 2007 by drawing a panchnama. In May 2010, well after the award, Beena Gupta bought 275 sq. yards of the acquired land through a GPA, will, agreement to sell and receipt. She then filed a writ petition in the Delhi High Court claiming the acquisition had lapsed under Section 24(2) of the 2013 Act because compensation had not been paid, and the High Court accepted this in November 2018.

Decision Breakdown

The Supreme Court allowed the DDA's appeal and dismissed the writ petition. First, following Shiv Kumar vs Union of India (2019) and later cases, it held that a person who buys land after acquisition proceedings and the award has no legal standing (locus) to challenge the acquisition or claim it has lapsed, so the High Court should not have entertained the petition at all. Second, on merits, the Constitution Bench ruling in Indore Development Authority vs Manoharlal (2020) makes clear that lapse under Section 24(2) occurs only when the authorities have neither taken possession nor paid compensation for five years or more; since possession had been taken in 2007, there could be no lapse. The High Court's declaration of lapse was therefore quashed.

Lesson Learnt

Buying land after it has already been acquired by the government gives you no right to challenge that acquisition; and an acquisition does not "lapse" under the 2013 Act merely because compensation was unpaid, if the authorities have already taken possession.

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

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