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Government of NCT of Delhi vs. Krishna Saini & Ors.

Civil Appeal · 2022 INSC 1246Decided 2 Dec 2022
Civil Appeal No. 8933 of 2022
M.R. Shah · C.T. Ravikumar

Background

The Delhi High Court had declared that land acquisition proceedings under the Land Acquisition Act, 1894 for the subject land had lapsed under Section 24(2) of the 2013 Act, relying on the earlier Supreme Court ruling in Pune Municipal Corporation v. Harakchand Misirimal Solanki. The Government of NCT of Delhi's case had been that possession of the land was taken on 05.09.2002, which the original writ petitioners disputed. The Government appealed the High Court's lapse finding to the Supreme Court.

Decision Breakdown

The Supreme Court noted that the Pune Municipal Corporation decision relied on by the High Court had since been specifically overruled by a five-judge Constitution Bench in Indore Development Authority v. Manoharlal (2020) 8 SCC 129. That Constitution Bench clarified that a "lapse" under Section 24(2) occurs only where BOTH possession has not been taken AND compensation has not been paid for five years or more before the 2013 Act commenced, not either one alone. Since the High Court's finding of lapse rested solely on the overruled precedent, the Supreme Court quashed the High Court's judgment and allowed the Government's appeal, with no order as to costs.

Lesson Learnt

A land acquisition cannot be declared "lapsed" merely because compensation wasn't paid. If possession was already taken by the government, that alone defeats a lapse claim under the current, authoritative interpretation of the law (Indore Development Authority), which superseded the earlier, more landowner-favorable Pune Municipal Corporation ruling.

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

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