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Delhi Development Authority vs. Shakuntla Devi and Ors.

Civil Appeal · 2023 INSC 62Decided 20 Jan 2023
Civil Appeal No. 342 of 2023
M.R. Shah · C.T. Ravikumar

Background

Land in Delhi (Khasra No. 759) was notified for acquisition on 27 June 1996 and the compensation award was passed on 22 June 1999. The Land Acquisition Collector's affidavit before the High Court stated that actual vacant peaceful possession of the land, in which the writ petitioner held a one-fourth joint share of about 1 bigha, was taken on 31 December 2013 by preparing possession proceedings on the spot and handed over to the requisitioning agency. The writ petitioner went to the Delhi High Court in 2016 and obtained a declaration that the acquisition had lapsed under Section 24(2) of the 2013 Act on the ground that compensation had not been paid or tendered to her; the High Court did not deal with the taking of possession at all.

Decision Breakdown

The Supreme Court allowed the DDA's appeal and set aside the High Court's order. It noted that the High Court had neither disputed nor considered the Collector's case that possession was taken by panchnama on 31 December 2013: one day before the 2013 Act came into force. Under the Constitution Bench ruling in Indore Development Authority vs. Manoharlal (2020), acquisition lapses only where the authorities have failed both to take possession and to pay compensation for five years or more before 1 January 2014; if possession has been taken, non-payment of compensation alone does not cause a lapse. Drawing up a possession memorandum/panchnama is the recognised mode of taking possession, after which the land vests in the State and cannot be divested under Section 24(2). The High Court's declaration of lapse was therefore unsustainable, and the appeal was allowed with no order as to costs.

Lesson Learnt

Once the government has formally taken possession of acquired land, the acquisition stands even if compensation remains unpaid: the landowner's remedy is to claim the compensation (with interest), not to have the acquisition undone. Courts must examine the possession record before declaring an acquisition lapsed.

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

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