Shivaji Shamrao Patil (Since Deceased, by L.R. Ranjana Shivaji Patil) v. Special Land Acquisition Officer, Kolhapur
Background
An award for land acquisition in Kolhapur had been passed on 05.02.1988, but compensation to the landowners had still not been paid by the time the case reached the Supreme Court. The Court had earlier directed the parties to clarify when the award was passed, whether possession was taken and compensation paid, and the duration of any interim orders restraining possession.
Decision Breakdown
The Court found that although the respondents claimed the compensation amount was lying in the Revenue deposit, no compensation had actually been paid to the landowners even five years before the 2013 Land Acquisition Act came into force. Relying on its earlier ruling in Pune Municipal Corporation vs Harakchand Misirimal Solanki, (2014) 3 SCC 183, the Court held that merely depositing money in the government treasury does not prevent a lapse under Section 24(2) of the 2013 Act unless compensation is actually paid to the owners or deposited under Section 31 of the old Land Acquisition Act, 1894. It therefore held that the acquisition proceedings had lapsed, while granting the respondent authorities one year's liberty to initiate fresh acquisition under Section 24(2) if they chose to.
Lesson Learnt
Simply parking acquisition compensation in a government treasury account is not the same as "paying" it to landowners: if genuine payment or a proper Section 31 deposit is never made, long-delayed land acquisition proceedings can lapse entirely, even decades after the original award.