Govt. of NCT of Delhi & Anr. vs Rati Ram & Anr.
Background
Land in village Garhi Mendu, Delhi, was notified for acquisition in 1989-90 for the planned development of Delhi, an award was passed in 1992, and the government said it took physical possession in January 2000 and handed the land to the DDA. Years later, Rati Ram, claiming to be a successor of a bhoomidar (the recorded owner was actually the Gaon Sabha), filed a writ petition in the Delhi High Court saying the acquisition had lapsed because compensation had not been paid. Relying on the Supreme Court's 2014 ruling in Pune Municipal Corporation vs Harakchand Solanki, the High Court declared the acquisition lapsed under Section 24(2) of the 2013 Act. The Delhi Government appealed.
Decision Breakdown
The Supreme Court allowed the appeal and set aside the High Court's order. It pointed out that the Pune Municipal Corporation ruling the High Court relied on had been expressly overruled by a five-judge Constitution Bench in Indore Development Authority vs Manoharlal (2020), which held that an acquisition lapses under Section 24(2) only when the authorities have neither taken possession nor paid compensation for five years or more before 1 January 2014. If possession has been taken, there is no lapse even if compensation is unpaid. Since the government's specific case was that possession had been taken in 2000 by drawing up possession proceedings on the spot, the acquisition could not have lapsed. The Court also held that the High Court seriously erred in even entertaining the petition, because the petitioner had not shown title to the land: the recorded owner was the Gaon Sabha, which was not even made a party. The writ petition was dismissed, with no order as to costs.
Lesson Learnt
A landowner cannot claim that an old acquisition has "lapsed" merely because compensation was not paid. If the government has already taken possession, the acquisition stands. Also, only a person who can show a genuine title to the land can challenge its acquisition in court.