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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 11 of the Land Acquisition Act, 1894
  • Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013
  • Section 24(2), Section 11, of the 1894 Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
  • Section 24 of the 2013 Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 11 of the Land Acquisition Act, 1894
  • Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013
  • Section 24(2), Section 11, of the 1894 Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
  • Section 24 of the 2013 Act
Smart Summary

Factual and Procedural Background

Multiple civil appeals filed by various land owners were admitted prior to the enactment of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (“2013 Act”). Initially the challenges were mounted under the Land Acquisition Act, 1894. After the 2013 Act came into force, the appellants altered their stance and invoked Section 24(2) of the 2013 Act, contending that the underlying acquisition proceedings had lapsed.

The Supreme Court noted that, on the existing record, the essential factual elements required to establish a deemed lapse under Section 24(2)—namely (i) an award dated on or before 01-01-2009, and (ii) non-payment of compensation or non-taking of possession—were not unambiguously demonstrated in these appeals.

Legal Issues Presented

  1. Whether the land acquisition proceedings, originally initiated under the Land Acquisition Act, 1894, had lapsed by operation of Section 24(2) of the 2013 Act.
  2. Whether the Land Acquisition Ordinance of 31-12-2014 could retrospectively save such acquisitions from lapsing.

Arguments of the Parties

Land Owners / Appellants

  • Maintain that either physical possession of their lands remains with them or the State has not tendered compensation, thereby satisfying the conditions for lapse under Section 24(2).
  • Seek the benefit of the statutory deeming provision to have the acquisitions declared void.

The opinion does not set out detailed arguments on behalf of the Union of India or other respondents.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Pune Municipal Corporation v. Harakchand Misirimal Solanki (2014) 3 SCC 183 Interpretation of Section 24(2): acquisition lapses if award is 5+ years old and either compensation is unpaid or possession not taken. Cited to reaffirm the sequential test that must be factually proved before a lapse can be declared.
Union of India v. Shiv Raj (2014) 6 SCC 564 Same principle regarding automatic lapse under Section 24(2). Relied upon as consistent authority supporting the appellants’ interpretation.
Bimla Devi v. State of Haryana (2014) 6 SCC 583 Clarification of the circumstances that trigger deemed lapse. Referenced in support of the need for clear factual findings.
Radiance Fincap (P) Ltd. v. Union of India & Ors., Civil Appeal No.4283/2011 (12-01-2015) The 2014 Ordinance has only prospective effect and cannot take away accrued rights under Section 24(2). Adopted to reject reliance on the Ordinance for retrospectively protecting acquisitions.
Arvind Bansal v. State of Haryana, Civil Appeals Nos.417-418/2015 (13-01-2015) Reaffirmation of prospective operation of the Ordinance. Cited with approval.
Karnail Kaur v. State of Punjab, Civil Appeal No.7424/2013 (22-01-2015) Further reiteration of the Radiance Fincap principle. Cited with approval.
Rajiv Chowdhry HUF v. Union of India, Civil Appeal No.8786/2013 (06-02-2015) Held that acquisition lapsed where possession was not taken and compensation not paid. Used illustratively to show how Section 24(2) operates when facts are clear.
Rajiv Chowdhry HUF v. Union of India, Civil Appeal No.8785/2013 (10-12-2014) Earlier decision on identical facts reaching the same conclusion. Referenced to demonstrate consistency of jurisprudence.

Court's Reasoning and Analysis

The Court stressed that a declaration of lapse under Section 24(2) is strictly conditional on two threshold facts: (a) an award dated at least five years prior to 01-01-2014, and (b) either unpaid compensation or non-taking of possession. Without undisputed evidence of these facts, the statutory deeming provision cannot be invoked.

Reviewing the record, the Bench found that the requisite factual data had not been demonstrated in the present appeals. Accordingly, it declined to reach the merits. It further observed that prior Supreme Court precedents—including Pune Municipal Corporation and Radiance Fincap—mandate a strict, fact-based inquiry and confirm that the 2014 Ordinance has only prospective operation and cannot divest landowners of accrued statutory rights.

Holding and Implications

The appeals were DISPOSED OF without adjudicating the merits.

Land owners are granted liberty to file appropriate proceedings in the competent forum under Section 24 of the 2013 Act within eight weeks. Should any orders under that provision prove adverse, the parties may move to revive the present appeals within 90 days, during which any interim protection already in place will subsist.

Implications: The decision underscores the Supreme Court’s insistence on a clear factual foundation before declaring a deemed lapse and confirms that accrued statutory rights under Section 24(2) cannot be curtailed retroactively by subsequent ordinances. No new legal precedent was established; the Court primarily facilitated procedural avenues for the parties.

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    M/S. Competent Automobiles Co. Ltd. v. Union Of India & Ors. S

    Page 1

    1

    REPORTABLE

    IN THE SUPREME COURT OF INDIA

    CIVIL APPELLATE JURISDICTION

    CIVIL APPEAL No.5054 OF 2008 M/S. COMPETENT AUTOMOBILES CO. LTD. .….. APPELLANT Vs.

    UNION OF INDIA & ORS. .…..RESPONDENTS

    WITH

    CIVIL APPEAL NOs.5100,5283,5105-5124,5101-5104,5053,5050,5052 all of 2008, 3279,3280, all of 2012, ,5127-5129,5125,,5051 all of 2008 and 3278 of

    2012

    O R D E R

    VIKRAMAJIT SEN, J.

    1 All of these Appeals were admitted before the commencement of the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013. After commencement thereof, the Appellants changed the tack of their challenge - originally framed under the

    Page 2

    Land Acquisition Act, 1894 - and impugned the acquisition proceedings in toto, by evoking the deemed lapse of proceedings under Section 24(2) of the 2013 Act. Any determination under this provision must proceed sequentially. First, the factum of an Award under Section 11 of the Land Acquisition Act, 1894, must be clearly established. The said Award must predate the commencement of the Act, i.e., 01.01.2014., by at least five years (or more), ie., the Award must have been passed on or before 01.01.2009. This having been established, if possession is found to not have been taken, or compensation not paid, then the proceedings shall be deemed to have lapsed. Thereafter, the appropriate Government, if it so chooses, may reinitiate acquisition proceedings in respect of the same land, but under the 2013 Act's regime.

    2 Each and every deeming operation under Section 24(2) requires unambiguously and unvaryingly that a factual conclusion be drawn about the passing of the Award under Section 11, of the 1894 Act, on or before 01.01.2009; further, the absence of compensation having been paid or the absence of possession having been taken by the acquirer, either of these, must be a proven point of fact, as a threshold requirement attracting the lapse.

    3 From the record, these Appeals do not unambiguously answer these indispensable queries, which inarguably must precede any declaration of lapse of acquisition under Section 24(2). Each of these Appeals must factually

    Page 3

    satisfy this Court on the ingredients of Section 24(2), before this Court may pass a declaration in recognition of the statutory lapse of acquisition.

    4 This Court has in a number of decisions including Pune Municipal Corporation vs. Harakchand Misirimal Solanki (2014) 3 SCC 183, Union of India vs. Shiv Raj (2014) 6 SCC 564 and Bimla Devi vs. State of Haryana (2014) 6 SCC 583, clarified the manner in which the new provision is to be interpreted viz., that the acquisition lapses.

    5 It has been contended in other Appeals before this Court that the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Settlement Ordinance, 2014, issued on 31stDecember, 2014, clarifies that if possession of the acquired land has not been taken owing to interim Orders passed in this regard the acquisition may be protected and insulated from the purpose and intendment of Section 24 of the 2013 Act. This Court has now clarified in Radiance Fincap (P) Ltd. v. Union of India & Ors. [Civil Appeal No. 4283 of 2011 decided on 12.01.2015] that the Ordinance shall have prospective operation only. This Court therein held as under:

    "The right conferred to the land holders/owners of the acquired land under Section 24(2) of the Act is the statutory right and, therefore, the said right cannot be taken away by an Ordinance by inserting proviso to the abovesaid sub-Section without giving retrospective effect to the same."

    The legal position has been subsequently reiterated by this Court in Arvind Bansal v. State of Haryana (Civil Appeal Nos.417-418 of 2015 decided on

    Page 4

    13.01.2015) and Karnail Kaur v. State of Punjab [Civil Appeal No. 7424 of 2013 decided on 22.01.2015]. We are in respectful agreement with all these decisions. In the event that there is no ambiguity that (a) the Award is over five years old and (b) that compensation has not been paid or (c) that possession of the land has not been taken, the acquisition is liable to be quashed. In Rajiv Chowdhrie HUF v. Union of India [Civil Appeal No.8786 of 2013, decided on 06.02.2015], noting that the physical possession of the land had not been taken by the Respondents, nor compensation paid by the Respondents to the Appellant in respect whereof the Award was passed on 6.08.2007, the acquisition proceedings had been declared as having lapsed. The same position was arrived at in Rajiv Chowdhrie HUF v. Union of India in Civil Appeal No.8785 of 2013 decided on 10.12.2014 by a different Bench of this Court.

    5 In all these Appeals, the submission of the land owners is that either possession is still with them, or compensation has not been tendered by the State. Consequently, the land owners propose to initiate proceedings founded on Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as 'the 2013 Act").

    6 Having heard all the learned counsel, we are persuaded to dispose of these proceedings, without entering on the merits, by granting liberty to the land owners before us to pray for the revival of the Appeals in the event that Orders under Section 24 of the 2013 Act are adverse to their interest. We, therefore,

    Page 5

    permit the land owners to initiate appropriate proceedings in the proper forum/court, seeking the benefit of Section 24 of the 2013 Act, within eight weeks from today. We clarify that, in the event that any land owners have already approached the High Court concerned, their plea under Section 24 of the 2013 Act shall be decided on merits.

    7 It is in these circumstances that all these Appeals are disposed of with liberty to the parties to revive these Appeals in the event that the Orders under Section 24 of the 2013 Act are seen as adverse to their interest. Interim protection, if already granted, shall continue for a period of 90 days from today.

    8 It is further clarified that the parties desirous of reviving the Appeal must approach this Court within 90 days of the passing of the High Court's orders.

    9 The Appeals stand disposed of with the aforesaid observations and directions.

    ………………………J

    [VIKRAMAJIT SEN]

    ………………………J

    [PRAFULLA C. PANT]

    New Delhi;

    February 26 , 2015.

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    M/S. Competent Automobiles Co. Ltd. v. Union Of India & Ors. S
    (Feb 26, 2015)