A 5-judge bench of the Supreme Court on Friday held that proceedings under the Land Acquisition Act 1894, will not lapse if the compensation has been tendered by deposit in the treasury. The Court said, that land owners cannot insist that the amount be deposited in Court. Justice Arun Mishra said, land owners cannot insist that the proceedings have lapsed if the government has tendered the amount by deposit in treasury.
The case involved the interpretation of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013. The 5-judge bench also held that the word "or" in Section 24(2) should be read as "and". This means that the proceedings under old act will lapse only if if there is failure to take possession "and" failure to pay compensation. If possession taken but compensation not paid, there is no lapse. If compensation paid but possession not taken, then also no lapse of proceedings will occur.