Delhi Development Authority vs. Jagan Singh & Ors.
Background
DDA had acquired the respondent's land in 1989-92 for a public purpose and took possession in 2006; the land was later used by the Delhi Metro Rail Corporation for a car depot. In 2015, the landowner filed a writ petition arguing that under Section 24(2) of the 2013 land acquisition law, the acquisition should be deemed to have lapsed because compensation had never been paid, relying on the Supreme Court's then-prevailing Pune Municipal Corporation judgment. The Delhi High Court agreed in 2016 and ordered DDA to pay fresh compensation under the 2013 Act. Before DDA's appeal could be heard, a Constitution Bench in Indore Development Authority v. Manoharlal (2020) expressly overruled Pune Municipal Corporation, holding that both non-payment of compensation and non-possession are required together for a lapse, either alone is not enough.
Decision Breakdown
The Supreme Court first addressed DDA's over three-year delay in filing the appeal, condoning it because the disputed land had genuinely been put to important public use (a metro depot) and a liberal, justice-oriented approach to delay was warranted in such circumstances. On the merits, applying Indore Development Authority, since it was undisputed that DDA had already taken possession of the land in 2006, Section 24(2) simply did not apply merely because compensation remained unpaid, so there was no lapse of acquisition. The High Court's judgment was set aside and the landowner's writ petition was dismissed, though DDA was directed to pay the compensation originally determined under the 1894 Act (if not already paid) and was saddled with Rs. 50,000 in costs for its conduct. The Court separately flagged, from photographs on record, that part of the pavement on the acquired land had been encroached upon by vendors and directed the authorities to take action.
Lesson Learnt
Under Section 24(2) of the 2013 land acquisition law, an acquisition lapses only if BOTH possession was not taken AND compensation was not paid: non-payment of compensation alone, where possession has already been taken, is not enough to revive an old acquisition.