INDORE DEVELOPMENT AUTHORITY versus SHAILENDRA (DEAD) THROUGH LRS. & ORS.

INDORE DEVELOPMENT AUTHORITY versus SHAILENDRA (DEAD) THROUGH LRS. & ORS.

Deposit of compensation in Treasury suffices for purposes of Section 24(2) of Land Acquisition Act, 2013 and does not lead to lapse of acquisition; only interest is attracted if not deposited in court. Periods where authorities are disabled due to interim court orders are excluded from the five-year period under Section 24(2). The distinction between ‘paid’ and ‘deposit’ in statute must be maintained; vested rights are not divested by operation of Section 24 unless possession is not taken or compensation not paid.

Parties
Appellant: Indore Development Authority; Respondent: Shailendra (Dead) through LRs. & Ors.
Jurisdiction
India
Judgment Date
08 February 2018
Procedural Posture
Civil Appeal / Reference Answered
Outcome
Questions posed by reference answered as per majority view; Sree Balaji case overruled; Pune Municipal Corporation v. Harakchand Misirimal Solanki declared per incuriam by majority.
Legal Topics
Right to Fair Compensation and Transparency in Land Acquisition, Section 24 of Land Acquisition Act, 2013, Interpretation of 'paid', 'deposit', Exclusion of Litigation Period, Vesting and Accrued Rights, Casus Omissus

Case Brief

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Parties

Indore Development Authority

Appellant

Shailendra (Dead) through LRs. & Ors.

Respondent

Procedural Posture

Civil Appeal / Reference Answered

  1. 1 Interpretation of Section 24(1) and 24(2) of the Land Acquisition Act, 2013
  2. 2 Distinction between 'paid' and 'deposit' in the context of compensation
  3. 3 Consequences of non-deposit of compensation

Ratio Decidendi

Deposit of compensation in Treasury suffices for purposes of Section 24(2) of Land Acquisition Act, 2013 and does not lead to lapse of acquisition; only interest is attracted if not deposited in court. Periods where authorities are disabled due to interim court orders are excluded from the five-year period under Section 24(2). The distinction between ‘paid’ and ‘deposit’ in statute must be maintained; vested rights are not divested by operation of Section 24 unless possession is not taken or compensation not paid.

Court Disposition

Questions posed by reference answered as per majority view; Sree Balaji case overruled; Pune Municipal Corporation v. Harakchand Misirimal Solanki declared per incuriam by majority.

Orders

  • Questions referred answered in terms of majority judgment.
  • Registry directed to place papers before Hon’ble Chief Justice of India for appropriate orders.