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Union of India & Anr. vs Subhash Chander Sehgal & Ors.

Civil Appeal · 2022 INSC 849Decided 22 Aug 2022
Civil Appeal No. 5439 of 2022
M.R. Shah · B.V. Nagarathna

Background

Land had been acquired and possession taken over by the government way back in 1987, and the land was used for a public park. Decades later, relying on two Supreme Court decisions that were then in force, the Delhi High Court held in 2016 that the acquisition had "lapsed" under Section 24(2) of the 2013 land acquisition law (because compensation had allegedly not been paid), and ordered fresh compensation to be paid under the more generous 2013 Act. The Union of India appealed against this High Court ruling.

Decision Breakdown

By the time this appeal reached the Supreme Court, a five-judge Constitution Bench in Indore Development Authority v. Manoharlal (2020) had already overruled the very precedents the High Court had relied upon, clarifying that once possession of land has genuinely been taken by the authorities, there is no "lapse" of acquisition under Section 24(2) even if compensation issues remain, and that Section 24(2) cannot be used to reopen decades-old, concluded acquisitions. Applying this settled law, the Court held the High Court's 2016 judgment could not stand, since possession here was undisputedly taken in 1987. The Court set aside the High Court's order and dismissed the original writ petition, while clarifying that the landowners remain entitled to whatever compensation is due under the old 1986-87 Award (and any lawful enhancement of it), just not a fresh assessment under the 2013 Act.

Lesson Learnt

Once the government has actually taken possession of acquired land, the acquisition does not "lapse" merely over compensation disputes; landowners in such situations can still pursue enhanced compensation, but not a declaration voiding the acquisition itself.

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

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