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PUNE MUNICIPAL CORPORATION & ANR. versus HARAKCHAND MISIRIMAL SOLANKI & ORS.

Citation: [2014] 1 S.C.R. 783 · Decided: 24-01-2014 · Supreme Court of India · Bench: RAJENDRA MAL LODHA · Disposal: Dismissed

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Judgment (excerpt)

[2014) 1 S.C.R. 783 
PLINE MUNICIPAL CORPORATION & ANR. 
V. 
HARAKCHAND MISIRIMAL SOLANKI & ORS. 
(Civil Appeal No. 877 of 2014) 
JANUARY 24, 2014. 
[R.M. LODHA, MADAN B. LOKUR AND KURIAN 
JOSEPH, JJ.] 
RIGHT 
TO 
FAIR 
COMPENSATION 
AND 
A 
8 
TRANSPARENCY 
IN 
LAND 
ACQUISITION, 
C 
REHABILITATION AND RESETTLEMENT ACT, 2013: 
s. 24(2) - Proceedings deemed to have.lapsed -Award 
made 5 years prior to coming into force of 2013 Act -
Compensation neither paid to land owners/claimants nor 0 
deposited in court -
Held: Subject land acquisition 
proceedings shall be deemed to have lapsed u/s 24(2) of the 
2013 Act -
Deposit of the amount of compensation in the 
government treasury is not equivalent to the amount of 
compensation paid to the landowners/persons interested and 
liability of State to pay interest subsists till the amount has 
E 
not been deposited in court - Land Acquisition Act, 1894 -
s. 11 - Interpretation of statute. 
s.114(2) - Repeal and savings - Held: Sub-s. (2) of s. 
114 makes s. 6 of the General Clauses Act, 1891 applicable 
F 
with regard to the effect of repeal but this is subject to the 
provisions in the 2013 Act -
Under s.24(2) land acquisition 
proceedings initiated under the 1894 Act, by legal fiction, are 
deemed to have lapsed where award has been made five 
years or more prior to the commencement of 2013 Act and G 
possession of the land is not taken or compensation has not 
been paid -
The legal fiction uls 24(2) comes into operation 
as soon as conditions stated therein are satisfied - General 
Clauses Act, 1897 - s. 6. 
783 
H 
784 
SUPREME COURT REPORTS 
[2014] 1 S.C.R. 
A 
A notification u/s 4 of the Land Acquisition Act, 1894 
in respect of the lands of the respondents was published 
on 30.09.2004. On 26.12.2005, the declaration u/s 6 was 
published in the official gazette. On 31.01.2008 the 
Special Land Acquisition Officer made the award u/s 11 
B of the 1894 Act. In the instant appeals filed by the 
Municipal Corporation, it was contended for the 
respondents-landowners that by virtue of s. 24(2) of the 
Right to Fair Compensation and Transparency in Land 
Acquisition, Rehabilitation and Resettlement Act, 2013, 
c the subject acquisition would be deemed to have lapsed 
because the award u/s 11 of the 1894 Act was made more 
than five years prior to the commencement of 2013 Act 
and no compensation was paid to the land owners nor 
the amount of compensation was deposited in the court 
0 by the Special Land Acquisition Officer. 
Dismissing the appeals, the Court 
HELD: 1.1. Section 24(2) of 2013 Act, which begins 
with non obstante clause and has overriding effect over 
E s.24(1), enacts that in relation to the land acquisition 
proceedings initiated under 1894 Act, where an award 
has been made five years or more prior to the 
commencement of the 2013 Act and either of the two 
contingencies is satisfied, viz; (i) physical possession of 
F the land has not been taken or (ii) the "compensation has 
not been paid", such acquisition proceedings shall be 
deemed to have lapsed. [Para 11) [791-A-C] 
1.2. The expression, "compensation has not been 
paid'' has to be construed in terms of s. 31 of the 1894 
G Act, which enjoins upon the Collector to tender payment 
of compensation to the person interested or deposit of 
the same in the court. The mandatory nature of the 
provision in s. 31(2) with regard to deposit of the 
compensation in the court is further fortified by the 
H provisions contained in ss. 32, 33 and 34. For the 
PUNE MUNICIPAL CORPORATION v. HARAKCHAND 785 
MISIRIMAL SOLANKI 
purposes of s. 24(2), the compensation shall be regarded 
A 
as "paid" if the compensation has been offered to the 
person interested and such compensation has been 
deposited in the court where reference uls 18 can be 
made on happening of any of the contingencies 
contemplated uls 31(2) of the 1894 Act. [Para 12, 14, 16 
B 
and 17] [791-E; 792-C; 793-A-B, F-H] 
1.3. The deposit of the amount of compensation in the 
government treasury is not equivalent to the amount of 
compensation paid to the landowners/persons interested, 
C 
as the deposit of the amount of the compensation in the 
state's revenue account is of no avail and the liability of 
the State to pay interest subsists till the amount has not 
been deposited in court. The1894 Act being an 
expropriatory legislation has to be strictly followed. The 
procedure, mode and manner for payment of D 
compensation are prescribed in Part V (ss. 3

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