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Rajasthan High Court - Jaipur

Chairman R H B And Anr vs Raju And Ors on 30 April, 2024

Bench: Manindra Mohan Shrivastava, Shubha Mehta

[2023:RJ-JP:41496-DB]

        HIGH COURT OF JUDICATURE FOR RAJASTHAN

                              BENCH AT JAIPUR

               D.B. Special Appeal Writ No. 1606/2017

1.       The Chairman, Rajasthan Housing Board, Awas Bhawan,

         Janpath, Jyoti Nagar, Jaipur
2.       Estate Manager Land, Rajasthan Housing Board, Awas

         Bhawan, Janpath, Jyoti Nagar, Jaipur
                                                                         ----Appellants
                                        Versus
1.       Raju S/o Sitaram, By Caste Acharya Bhramin, Resident Of

         Village Kalyan Pura Alias Khatipura, Jaipur
2.       Shankar        S/o    Sitaram,        By     Caste          Acharya   Bhramin,

         Resident Of Village Kalyan Pura Alias Khatipura, Jaipur
3.       Narbada        W/o     Sitaram,       By     Caste          Acharya   Bhramin,

         Resident Of Village Kalyan Pura Alias Khatipura, Jaipur
4.       Gopal S/o Nanga, By Caste Acharya Bhramin, Resident Of

         Village Kalyan Pura Alias Khatipura, Jaipur All 1 To 4

         Petitioners Duly Represented Through Power Of Attorney

         Holder Prashant Karnawat Son Of Shri Santosh Chandra

         Karnawat Resident Of 19-Ka-4, Jyoti Nagar, Jaipur
5.       State Of Rajasthan Through Its Principal Secretary, Urban

         Development          And      Housing,        Government          Secretariat,

         Bhagwandas Road, Jaipur
6.       Officer On Special Duty, Urban Development And Housing

         Department, Government Of Rajasthan Having P, Awas

         Bhawan, Janpath, Jyoti Nagar, Jaipur
                                                                       ----Respondents



For Appellant(s)              :     Mr. Ajay Shukla with Mr. Raghav
                                    Sharma & Mr. Pushpendra Badgati
For Respondent(s)             :     Mr. Ashutosh Bhatia




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   HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA
                   HON'BLE MRS. JUSTICE SHUBHA MEHTA
                                          (V.C.)
                                      Judgment

REPORTABLE

  PRONOUNCED ON:                                                           30.04.2024


  1.      This appeal, filed by the Chairman, Rajasthan Housing Board,

  is directed against the order dated 03.04.2017 passed by the

  learned Single Judge, whereby, the respondents' writ petition has

  been allowed declaring the acquisition as having lapsed under

  Section 24(2) of the Right to Fair Compensation and Transparency

  in Land Acquisition, Rehabilitation and Resettlement Act, 2013

  (hereinafter referred to as 'the Act of 2013' for short).

  2.      The respondents filed writ petition through the power of

  attorney holder seeking declaration that acquisition proceedings

  initiated for acquiring the petitioners' land vide notifications dated

  07.03.1992 and award dated 09.04.1996, have lapsed under

  Section 24(2) of the Act of 2013. They also prayed for directions

  to issue No Objection Certificate based on such declaration of

  lapse    of   acquisition      proceedings,          as    also     to   restrain   the

  respondents from taking any coercive measures to recover

  possession of the said lands.

  3.      The reliefs, as have been sought for, are on the pleadings,

  inter alia, that the petitioners are owners of half share in the land

  bearing Khasra No. (Old No. 125/483) New No. 242 admeasuring

  0.0300 hectares, Khasra No. (Old No. 125/484) New Khasra No.

  245 admeasuring 0.3200 hectares, Khasra No. (Old No. 129/487)

  New Khasra No. 276 admeasuring 0.0300 hectares, Khasra No.

  (Old No. 131) New Khasra No. 253 admeasuring 0.4600 hectares,


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Khasra No. (Old No. 128) New Khasra No. 250/1179 admeasuring

0.0300 hectares, Khasra No. (Old No. 129) New Khasra No. 251

admeasuring 0.4800 hectares, in all six Khasras ad-measuring

1.3500 hectares situated in village Kalyanpura/Khatipura, Tehsil

Sanganer, District Jaipur. It was further pleaded that a notification

under Section 4(1) under the Land Acquisition Act, 1894 ('the Act

of 1894' for short) was issued on 07.03.1992 which culminated in

passing of the award on 09.04.1996. It was categorically averred

in the petition that, though an award was passed way back in the

year 1996, possession was not taken from the writ petitioners in

terms of Sections 16 and 17 of the Act of 1894. The respondents,

in reply to application seeking information under the Right to

Information Act, also informed that possession has not been taken

over. While the matter stood thus, the Act of 1894 was repealed

and a new land acquisition law i.e. the Act of 2013 was enacted,

which came into effect from 01.01.2014. The writ petitioners came

out with the case that, in terms of the provisions contained under

Section 24(2) of the Act of 2013, where physical possession of the

lands are not taken under award made five years or more prior to

the commencement of the new Act of 2013 i.e. 01.01.2014, the

proceedings initiated under the old Act shall be deemed to have

lapsed. When the writ petitioners approached the development

authority    seeking      issuance        of    no     objection    certificate   for

development of their lands as per their own requirements, the

authorities asserted that the land is under acquisition and refused

to issue no objection certificate and also required the writ

petitioners to handover the possession, failing which, the same

shall be recovered.

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4.    The Housing Board as well as the State filed their respective

reply. The Housing Board, while opposing the relief sought by the

writ petitioners, came out with the case that the provisions of

Section 24(2) of the Act of 2013 are not attracted and applicable

because the compensation was tendered to the writ petitioners

and land owners but when they refused, the compensation

amount was deposited in the Court. The Housing Board also came

out with the specific pleading with regard to details of deposit

made in the Court, giving specific details of cheque number and

the amount of compensation. The Housing Board further disclosed

in the reply that even after deposit of the compensation in the

Court upon refusal on the part of the petitioners, compensation

was not received but the writ petitioners applied for allotment of

15% developed land in lieu of compensation from acquired land in

question, whereafter, meeting was held on 16.07.2007 resolving

to provide alternate piece of land as compensation to the

petitioners and letters were also issued to the writ petitioners to

submit their written consent but the writ petitioners did not

submit any consent. A camp was organized on 24.04.2014,

wherein, petitioners were again asked to submit fresh consent for

granting compensation in respect of 5 Bigha 5 Biswas land lying in

respective Khata of the writ petitioners. When no response was

received from the side of writ petitioners, again a letter was issued

on 07.07.2014 requiring the petitioners to submit their clear

consent for taking compensation but even then, no response was

received. Thus, the stand taken by the Housing Board was that

though compensation in cash was offered to the writ petitioners,

upon their refusal, the amount was deposited in the Court and as

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a subsequent development, the writ petitioners sought allotment

of developed plots in lieu of compensation, to which also, Housing

Board agreed and though offered to allot alternate piece of land,

consent was not given either for allotment of land nor any consent

was given for payment of compensation.

5.    In reply filed by the State and Acquisition Authority, similar

plea, as taken by the Housing Board, was made that though

compensation      was      offered,       upon      refusal,        the   amount    was

deposited in the Court. It was also disclosed that the writ

petitioners had submitted an agreement attested on 25.10.2007

showing their willingness to seek allotment of 15% of the

developed residential plots in lieu of cash compensation on free

surrender of entire land. When the matter was being enquired into

and verified for issuance of allotment letters, it was found that

there has been change in the revenue records and new Khasra

Nos. were allotted to various persons. It was also revealed that

there is some dispute amongst the family members/co-sharers of

the writ petitioners and certain applications have been submitted

before the Sub-Divisional Officer. It was specifically pleaded that in

November, 2011, the writ petitioners submitted application along

with records stating that disputes have now been resolved through

settlement and, therefore, allotment letters may be issued. Having

found that there was a discrepancy in the award that in the name

of Gopal, Ganesh was written, petitioner was required to submit

affidavit in this regard vide letter dated 29.10.2012 and fresh

agreement      prepared       and      signed       by     the      petitioners    dated

30.10.2012 along with indemnity bond and affidavits were

submitted. Again, to complete certain formalities, another notice

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was issued to writ petitioners on 04.12.2012 and again an

application was submitted on 25.04.2013 repeating prayer for

grant of patta. Further averment made in the return filed by the

State is that as the writ petitioners had applied for allotment of

land in lieu of compensation, applications were submitted before

the Civil Court for withdrawal of cash compensation which was

deposited earlier. All said and done, but the writ petitioners

ultimately did not submit clear consent for getting the land

allotted excluding that recorded in favour of another Khatedar,

and started insisting for allotment of land on 48 mtr/60 mtr wide

road on afterthought ground, seeking to avoid submitting consent.

The relief sought was opposed on the ground that as the writ

petitioners were interested and intended to different kind of

arrangement of seeking allotment of alternative land/plot in lieu of

compensation, they are not entitled to any relief and it was a case

of voluntary waiver of cash compensation and deemed surrender

of possession in favour of the State/Housing Board.

6.    Learned Single Judge, vide impugned order, recorded finding

that as admittedly the possession of the land, for one reason or

the other, was not handed over and the petitioners retained

possession of the land and no consent was submitted by them nor

any agreement executed between the parties, there was no

concluded contract and plea of waiver is not maintainable under

the law. Relying upon the provisions contained in Section 24(2) of

the Act of 2013, learned Single Judge recorded finding that on

account of possession having not being taken, the land acquisition

proceedings lapsed. However, liberty was reserved in favour of the

State to acquire the land, if they choose, under the Act of 2013.

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7.    When the case came up for hearing on 26.07.2023, it was

submitted by learned counsel for the appellants that in view of

authoritative pronouncement of Hon'ble Supreme Court in the

case of Indore Development Authority Vs. Manoharlal & Ors.

[2020 (8) SCC 129], even if the possession was not taken, the

proceedings would not lapse, as it is only when possession is not

taken nor compensation is tendered as provided under Section

31(1) of the Act of 1894 that the proceedings would lapse. At this

stage, learned counsel for the respondents submitted that the

petition was filed confining the issue only with regard to

possession aspect, but in view of the decision of Hon'ble Supreme

Court, the case would require examination as to whether even if

possession was not taken, compensation was tendered as required

under Section 31(1) of the Act of 1894. A prayer for amendment

in the writ petition was sought.

8.    Upon due consideration of the submission and the decision of

Hon'ble Supreme Court in Indore Development Authority (supra),

which was delivered during the pendency of the present appeal,

the Court considered just and proper to allow the writ petitioners

to amend the writ petition clearly stating whether the amount of

compensation was tendered as provided under Section 31(1) of

the Act of 1894. The appellants were also granted opportunity to

file counter affidavit/additional return by way of amendment in the

main return filed in the writ proceedings.

9.    Learned counsel for the appellants argued in extenso to

submit that the writ petitioners, while filing the writ petition,

concealed     from      the   Court      and       did    not       disclose   that   the

compensation was duly offered to each of the writ petitioners and

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on their refusal to receive the same, that amount was deposited

with the Court. The writ petitioners did not come with clean hands

and suppressed the fact they themselves had applied for allotment

of 15% developed plots in lieu of compensation and even though

it was decided to allot developed plots, later on, the writ

petitioners withheld their consent. It is, therefore, contended that

the writ petition was liable to be dismissed only on the ground of

concealment      of     material       facts     with      regard    to      tender    of

compensation      amount,         deposit       made        with    the     Court     and

subsequent willingness of the writ petitioners to seek allotment of

15% of developed lands in lieu of compensation. The next

submission of learned counsel for the appellants is that even

though specific plea was taken in the return filed by the State as

well as by the Housing Board that compensation amount was

tendered but the petitioners refused to receive, whereafter, the

amount was deposited with the Court, no rejoinder was filed to

dispute the aforesaid factual position with regard to offer of

compensation made, its refusal and deposit of compensation with

the Court. He would submit that for the first time before this

Court, by way of amended pleadings, the respondents have

sought to dispute the factum of amount of compensation having

been offered to them. He would submit that even though this

Court allowed the writ petitioners to amend their pleading,

specifically on the issue regarding tender of compensation

amount, the entire pleadings of the case, as initially made and the

amended pleadings, are required to be taken into consideration.

He would submit that the pleadings are vague, evasive and liable

to be rejected as an afterthought. He would submit that once the

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respondents, in the reply filed in the writ proceedings, clearly

came out with the case of compensation offered and refused and

thereafter deposited with the Court, if the petitioners case was

that the compensation was never offered to them, the same was

required to be clearly stated by way of rejoinder which was not

done. He would next submit that otherwise also, there is specific

plea made along with clear details with regard to offer made,

refusal on the part of the petitioners and deposit of amount with

the Court. Further specific details of the cheque amount of

compensation, which was deposited with the Court, has been

made which has also not been traversed by the writ petitioners.

Therefore, a clear case of tender of compensation in terms of the

provisions contained in Section 31(1) of the old Act of 1894 is

made out and, therefore, the land acquisition proceedings would

not lapse under Section 24(2) of the new Act of 2013. In support

of his submission, learned counsel for the appellants placed

reliance upon the decision of Hon'ble Supreme Court in the case of

Indore Development Authority (supra). It is also the submission of

learned counsel for the appellants that, in any case, on petitioners'

own request and willingness to seek allotment of alternative land

in lieu of compensation, the authorities offered allotment of land

and the petitioners submitted their agreement and consent both.

Therefore, even though it was not counter signed by the

authorities, relief for declaring lapse of proceedings is liable to be

rejected as the petitioners waived any right to seek such a

declaration, in view of their willingness to seek allotment of

developed plots in lieu of compensation.




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10.   Per   contra,     learned        counsel        for    the    respondents-writ

petitioners would submit that in view of the decision of Hon'ble

Supreme Court in Indore Development Authority (supra), in order

to save the acquisition proceedings from lapse, as provided under

Section 24(2) of the Act of 2013, the burden lies on the Land

Acquisition authorities and Housing Board to establish that tender

of compensation had taken place strictly in accordance with the

provisions contained in Section 31(1) of the Act of 1894. The writ

petitioners have clearly denied having been offered compensation.

Therefore, present is not a case where the compliance of

provisions contained in Section 31(1) of the Act of 1894 has been

made, as the possession admittedly remained with the writ

petitioners and was not taken by the appellants-Housing Board or

the State authorities, the land acquisition proceedings initiated

under the old Act of 1894, award passed therein and all

proceedings would lapse. It is also submitted that even though the

writ petitioners had initially submitted their application for

allotment of developed plots in lieu of compensation, the

authorities, for one reason or the other, did not make any

allotment and there is no material on record to show that offer of

allotment made by the authorities was ever accepted by the writ

petitioners. Therefore, the order passed by the learned Single

Judge does not call for any interference.

11.   We have carefully perused the records of the case, the

pleadings and the documents of the authorities as filed in the writ

proceedings as also amended pleadings.

12.   It is not necessary for this Court to delve deep into the

aspect with regard to possession because it has been an admitted

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position on record that even though award was passed in the year

1996 and, as on 01.01.2014 i.e. the date on which the new Act of

2013 came into force, the possession remained with the writ

petitioners. In this regard, learned Single Judge has taken into

consideration the letters issued by the appellants themselves to

the writ petitioners for surrender of the land. The impugned order

also goes to show that even appellants have admitted in their

pleadings and also revealed from various communications that

possession was not taken from the writ petitioners but the relief

sought in the writ petition was based mainly on the ground that

the writ petitioners having submitted an offer for allotment of

developed plots in lieu of compensation but later on, not accepted

offer of allotment nor claimed compensation, would result in

deemed surrender of the land in favour of the appellants.

13.   In the case of Indore Development Authority (supra), the

Constitution Bench of Hon'ble Supreme Court examined the

statutory scheme, as engrafted under Section 24(2) of the Act of

2013, as to when and under what circumstances, the land

acquisition proceedings initiated under the old Act of 1894 would

lapse upon coming into force of the new Act of 2013 w.e.f.

01.01.2014.

      The Constitution Bench, on a reference made to it, arising

out of the conflict of use with regard to interpretation on Section

24(2) of the Act of 2013, framed the following questions required

to be answered:
     "4.....
         4.1. (1) What is the meaning of the expression
         "paid"/"tender" in Section 24 of the Right to Fair
         Compensation and Transparency in Land Acquisition,
         Rehabilitation and Resettlement Act, 2013("the 2013
         Act") and Section 31 of the Land Acquisition Act, 1894

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            ("the 1894 Act")? Whether non-deposit of compensation
            in Court under Section 31(2) of the 1894 Act results into
            lapse of acquisition under Section 24(2) of the 2013 Act.
            What are the consequences of non-deposit in Court
            especially when compensation has been tendered and
            refused under Section 31(1) of the 1894 Act and Section
            24(2) of the 2013 Act? Whether such persons after
            refusal can take advantage of their wrong/conduct?
            4.1. (2) Whether the word "or" should be read as
            conjunctive or disjunctive in Section 24(2) of the 2013
            Act?
            4.1. (3) What is the true effect of the proviso, does it
            form part of sub-section (2) or main Section 24 of the
            2013 Act?
            4.1. (4) What is the mode of taking possession under
            the Land Acquisition Act and true meaning of expression
            'the physical possession of the land has not been taken'
            occurring in Section 24(2) of the 2013 Act?
            4.1 (5) Whether the period covered by an interim
            order of a court concerning land acquisition proceedings
            ought to be excluded for the purpose of applicability of
            Section 24(2) of the 2013 Act?
            4.1. (6) Whether Section 24 of the 2013 Act revives
            barred and stale claims?
            5.    In addition, question of per incuriam and other
            incidental questions also to be gone into."
      5.     Questions 1 to 3 are interconnected and concern the
      correct interpretation of Section 24(2) of the 2013 Act. The
      following questions are required to be gone into to interpret
      the provision of Section 24(2) of the 2013 Act:
           5.1.(i) Whether the word "or" in Section 24(2) of the
           2013 Act used in between possession has not been taken
           or compensation has not been paid to be read as "and"?
           5.2.(ii) Whether the proviso to Section 24(2) of the 2013
           Act has to be construed as part thereof or the proviso to
           Section 24(1)(b)?
           5.3.(iii) What meaning is to be given to the word "paid"
           used in Section 24(2) and "deposited" used in the
           proviso to Section 24(2)?
           5.4.(iv) What are the consequences of payment not
           made?
           5.5.(v) What are the consequences of the amount not
           deposited?
           5.6.(vi) What is the effect of a person refusing to accept
           the compensation?"


14.   After a detailed and deep examination of the statutory

scheme of Section 24(2) of the Act of 2013, various decisions

rendered from time to time, conflict of views on various aspects,

following conclusions were drawn:

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      "366.       In view of the aforesaid discussion, we answer
      the questions as under:
      366.1. Under the provisions of Section 24(1)(a) in case the
      award is not made as on 1.1.2014, the date of
      commencement of the 2013 Act, there is no lapse of
      proceedings. Compensation has to be determined under the
      provisions of the 2013 Act.
      366.2 In case the award has been passed within the window
      period of five years excluding the period covered by an
      interim order of the court, then proceedings shall continue
      as provided under Section 24(1)(b) of the 2013 Act under
      the 1894 Act as if it has not been repealed.
      366.3. The word "or' used in Section 24(2) between
      possession and compensation has to be read as "nor" or as
      "and",. The deemed lapse of land acquisition proceedings
      under Section 24(2) of the 2013 Act takes place where due
      to inaction of authorities for five years or more prior to
      commencement of the said Act, the possession of land has
      not been taken nor compensation has been paid. In other
      words, in case possession has been taken, compensation
      has not been paid then there is no lapse. Similarly, if
      compensation has been paid, possession has not been taken
      then there is no lapse.
      366.4. The expression "paid" in the main part of Section
      24(2) of the 2013 Act does not include a deposit of
      compensation in court. The consequence of non-deposit is
      provided in the proviso to Section 24(2) in case it has not
      been deposited with respect to majority of landholdings then
      all beneficiaries (landowners) as on the date of notification
      for land acquisition under Section 4 of the 1894 Act shall be
      entitled to compensation in accordance with the provisions
      of the 2013 Act. In case the obligation under Section 31 of
      the Land Acquisition Act, 1894 has not been fulfilled, interest
      under Section 34 of the said Act can be granted. Non-
      deposit of compensation (in court) does not result in the
      lapse of land acquisition proceedings. In case of non-deposit
      with respect to the majority of holdings for five years or
      more, compensation under the 2013 Act has to be paid to
      the "landowners" as on the date of notification for land
      acquisition under Section 4 of the 1894 Act.
      366.5. In case a person has been tendered the
      compensation as provided under Section 31(1) of the 1894
      Act, it is not open to him to claim that acquisition has lapsed
      under Section 24(2) due to non-payment or non-deposit of
      compensation in court. The obligation to pay is complete by
      tendering the amount under Section 31(1). The landowners
      who had refused to accept compensation or who sought
      reference for higher compensation, cannot claim that the
      acquisition proceedings had lapsed under Section 24(2) of
      the 2013 Act.
      366.6. The proviso to Section 24(2) of the 2013 Act is to be
      treated as part of Section 24(2), not part of Section 24(1)
      (b).

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      366.7. The mode of taking possession under the 1894 Act
      and as contemplated under Section 24(2) is by drawing of
      inquest report/memorandum. Once award has been passed
      on taking possession under Section 16 of the 1894 Act, the
      land vests in State there is no divesting provided under
      Section 24(2) of the 2013 Act, as once possession has been
      taken there is no lapse under Section 24(2).
      366.8. The provisions of Section 24(2) providing for a
      deemed lapse of proceedings are applicable in case
      authorities have failed due to their inaction to take
      possession and pay compensation for five years or more
      before the 2013 Act came into force, in a proceeding for land
      acquisition pending with the authority concerned as on
      1.1.2014. The period of subsistence of interim orders passed
      by court has to be excluded in the computation of five years.
      366.9. Section 24(2) of the 2013 Act does not give rise to
      new cause of action to question the legality of concluded
      proceedings of land acquisition. Section 24 applies to a
      proceedings pending on the date of enforcement of the 2013
      Act i.e. 1.1.2014. It does not revive stale and time-barred
      claims and does not reopen concluded proceedings nor allow
      landowners to question the legality of mode of taking
      possession to reopen proceedings or mode of deposit of
      compensation in the treasury instead of court to invalidate
      acquisition."


15.   The legal position as to when deemed lapse of land

acquisition proceedings under Section 24(2) of the Act of 2013

would take place stands authoritatively settled by the Constitution

Bench of the Hon'ble Supreme Court. One of the important

principle laid down is that the word "or" used in Section 24(2)

between possession and compensation has to be read as "nor" or

as "and". It has been settled that deemed lapse of land acquisition

proceedings under Section 24(2) of the Act of 2013 takes place

where due to inaction of the authorities for five years or more

prior to the commencement of the said Act, the possession of the

land has not been taken nor compensation has been paid. It has

also been explained that in case possession has been taken,

compensation has not been paid then there is no lapse. Similarly,




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if compensation has been paid, possession has not been taken

then also there is no lapse.

16.   The ambit of expression "paid" in the main part of Section

24(2) of the Act of 2013 has also been explained by giving an

interpretation, which now stands as a settled legal position. The

consequences       where        a     person        has      been   tendered    the

compensation in accordance with Section 31(1) of the old Land

Acquisition Act of 1894 has also been clearly explained in the

manner that where such tender has been placed as provided

under Section 31(1) of the Act of 1894, it is not open to that

person to claim that acquisition has lapsed under Section 24(2)

due to non-payment or non-deposit of compensation in Court.

Particularly, it has been clearly laid down that the obligation to pay

is complete by tendering the amount under Section 31(1) and

where landowners refused to accept the compensation or sought

reference for higher compensation cannot claim that acquisition

proceedings had lapsed under Section 24(2) of the Act of 2013.

17.   Keeping in forefront the aforesaid settled legal position, we

shall now examine as to whether in the present case, where

possession of the land was admittedly not taken, there is lapse of

proceedings by operation of provisions contained in Section 24(2)

of the Act of 2013 on the ground that neither possession was

taken nor compensation has been paid.

18.   At the time when the land acquisition proceedings in

question were initiated and concluded by passing an award, old

Act of 1894 was in force. The statutory mechanism for payment of

compensation has been engrafted in Section 31 of the Act of 1894

which is extracted herein below:

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       "31. Payment of compensation or deposit of same in
       Court. - (1) On making an award under section 11, the
       Collector shall tender payment of the compensation
       awarded by him to the persons interested entitled thereto
       according to the award and shall pay it to them unless
       prevented by some one or more of the contingencies
       mentioned in the next sub-section.
       (2) If they shall not consent to receive it, or if there be no
       person competent to alienate the land, or if there be any
       dispute as to the title to receive the compensation or as to
       the apportionment of it, the Collector shall deposit the
       amount of the compensation in the Court to which a
       reference under section 18 would be submitted:
             Provided that any person admitted to be interested
       may receive such payment under protest as to the
       sufficiency of the amount:
             Provided also that no person who has received the
       amount otherwise than under protest shall be entitled to
       make any application under section 18:
             Provided also that nothing herein contained shall affect
       the liability of any person, who may receive the whole or
       any part of any compensation awarded under this Act, to
       pay the same to the person lawfully entitled thereto.
       (3) Notwithstanding anything in this section the Collector
       may, with the sanction of the [appropriate Government]
       instead of awarding a money compensation in respect of
       any land, make any arrangement with a person having a
       limited interest in such land, either by the grant of other
       lands in exchange, the remission of land-revenue on other
       lands held under the same title, or in such other way as
       may be equitable having regard to the interests of the
       parties concerned.
       (4) Nothing in the last foregoing sub-section shall be
       construed to interfere with or limit the power of the
       Collector to enter into any arrangement with any person
       interested in the land and competent to contract in respect
       thereof."



19.   In light of the principles laid down in the case of Indore

Development Authority (supra), it has to be seen whether the

compensation was paid in accordance with the provisions of

Section 31(1) of the Act of 1894.

      If this Court reaches to the conclusion that the compensation

can be said to have been paid in terms of the aforesaid provisions,

obviously it will not be a case of lapse of proceedings under


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Section 24(2) of the Act of 2013. However, if the answer is in

negative, certainly it would be a case of lapse of proceedings

under Section 24(2) of the Act of 2013.

      If this Court reaches to the conclusion that provisions of

Section 31(1) were complied with, this case would be a case of

compensation paid. In this regard, it is apposite to refer to the

pertinent observations made by the Hon'ble Supreme Court in

Indore Development Authority (supra) as below:

      "...
      117. Payment of compensation under the Act of 1894 is
      provided for by Section 31 of the Act, which is to be after
      passing of the award under Section 11. The exception, is in
      case of urgency under Section 17, is where it has to be
      tendered before taking possession. Once an award has been
      passed, the Collector is bound to tender the payment of
      compensation to the persons interested entitled to it, as
      found in the award and shall pay it to them unless
      "prevented" by the contingencies mentioned in sub-section
      (2) of Section 31. Section 31(3) contains a non obstante
      clause which authorises the Collector with the sanction of the
      appropriate Government, in the interest of the majority, by
      the grant of other lands in exchange, the remission of land
      revenue on other lands or in such other way as may be
      equitable.
      118. Section 31(1) enacts that the Collector has to tender
      payment of the compensation awarded by him to the persons
      interested entitled thereto according to the award and shall
      pay such amount to a person interested in the land, unless
      he (the Collector) is prevented from doing so, for any of the
      three contingencies provided by sub-section (2). Section 31
      (2) provides for deposit of compensation in Court in case
      State is prevented from making payment in the event of:
      (i) refusal to receive it;
      (ii) if there be no person competent to alienate the land;
      (iii) if there is any dispute as to the title to receive the
      compensation; or
      (iv) if there is dispute as to the apportionment.
      In such exigencies, the Collector shall deposit the amount of
      the compensation in the court to which a reference under
      Section 18 would be submitted.
      ....
      226. Thus, in our opinion, the word "paid" used in Section
      24(2) does not include within its meaning the word
      "deposited", which has been used in the proviso to Section
      24(2). Section 31 of the Act of 1894, deals with the deposit

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      as envisaged in Section 31(2) on being 'prevented' from
      making the payment even if the amount has been deposited
      in the treasury under the Rules framed under Section 55 or
      under the Standing Orders, that would carry the interest as
      envisaged under Section 34, but acquisition would not lapse
      on such deposit being made in the treasury. In case amount
      has been tendered and the landowner has refused to receive
      it, it cannot be said that the liability arising from non-
      payment of the amount is that of lapse of acquisition.
      Interest would follow in such a case also due to non-deposit
      of the amount. Equally, when the landowner does not accept
      the amount, but seeks a reference for higher compensation,
      there can be no question of such individual stating that he
      was not paid the amount (he was determined to be entitled
      to by the collector). In such case, the landowner would be
      entitled to the compensation determined by the Reference
      court."



20.   The facts of the present case are required to be scrutinized

in light of the provisions contained in Section 31(1) of the old Land

Acquisition Act of 1894, applying the settled legal position as

adumbrated by the Constitution Bench of the Hon'ble Supreme

Court in the case of Indore Development Authority (supra).

21.   The writ petition was filed by the writ petitioners on the

pleadings that though an award was passed on 09.04.1996, the

possession always remained with the writ petitioners. However, in

the entire petition, except alleging that possession remained with

the   writ   petitioners,       no     specific      pleading       as    to   whether

compensation was offered, has been made. The entire case of the

petitioners is founded only on the aspect that the possession

remained with the writ petitioners and, therefore, upon coming

into force of the new Acquisition Act of 2013 w.e.f. 01.01.2014,

the proceedings would lapse.

22.   However, when the State as well as Housing Board filed their

reply, it revealed that many relevant and material facts were

completely suppressed by the writ petitioners, while filing the writ

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petition. In the reply filed by the State (respondent no. 1) it was

categorically averred that the petitioners have concealed the

material facts with regard to deposit of compensation before the

Civil Court, on not accepting the same by the petitioners. In para

no. 4, it has been clearly stated as below:
       "4.......
       the petitioners were offered compensation vide different
       notices issued in the year 2002, 2004 and 2005. As the
       petitioners did not turned up to accept the compensation, it
       was deposited through different cheques with the civil
       court, the details of which have been mentioned in reply
       filed by respondents no. 2 to 4."



23.   The Housing Board (respondents no. 2 to 4) also exposed

that the writ petitioners had not come with clean hands and have

completely suppressed material facts with regard to tender of

amount of compensation, their refusal and thereafter deposit of

the amount of compensation with the Court. Following are the

clear and specific statement on affidavit made by Housing Board:
      "1.....    the   compensation     has    been    paid   to   the
      khatedars/petitioners by way of depositing before court
      below on 08.04.2005 and 06.04.2005 and on refusal in lieu
      of notice DT.15.01.2004 and 07.11.2002. Therefore the
      provision of section 24(2) of Act of 2013 is not applicable,
      hence the writ petition deserves to be dismissed.
      ........
      4.... However the compensation was offered to the
      petitioners but on refusal by them the answering respondent
      had no alternate except to deposit it before the learned court
      below, this way the compensation vide cheque No.836667 of
      Rs.3,58,027/- on Dt.11/04/2005 referring as case no.
      2/92/144 and of case No.2/90/116 vide cheque No.836648
      Dt.23.03.2005 of Rs.2,09,185/- and of Case No.2/92/117
      vide cheque no.836649 Dt.23.03.2005 of Rs.2,20,641/- and
      of case No.2/92/69 vide cheque No.836628 Dt.23.05.2005 of
      Rs.7,74,852/- has been deposited in court on non accepting
      the compensation by the petitioners/awardees. A copy of the
      notice Dt.07/11/2002, 15/01/2004 with dispatch no.539,
      15.01.2004 with dispatch No.571, 26.04.2004 with dispatch
      No.27, 06.04.2005 with dispatch No.28 application for
      depositing the compensation Dt.06/04/2005, 08/04/2005 &



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      11/04/2005 are submitted here with and marked as
      Annexure No. R/1, R/2, R/3, R/4 & R/5, R/6, R/7 and R/8."



24.   It would thus be clear that the writ petitioners completely

suppressed the fact from the Court while filing the writ petition

through their power of attorney holder that the compensation

amount was tendered to them which they refused to take,

whereupon, the amount of compensation in respect of each of the

petitioners by way of cheque was deposited with the Court.

25.   Though, it was open for the petitioners to file rejoinder,

disputing    the   facts     with      regard       to    tender    of    amount     of

compensation and refusal as alleged, the petitioners did not file

any rejoinder but kept absolutely mum on this aspect even though

State as well as Housing Board made serious allegations with

regard to suppression of the aforesaid material facts.

26.   The statement of facts which were made on affidavit by

respondents with regard to tendering the compensation amount

and refusal on the part of the petitioners, deposits being made

with the Court, in our considered opinion, fulfills the requirement

of provisions contained in Section 31(1) of the old Acquisition Act

of 1894, both in letter as well as in spirit, as interpreted and held

by the Hon'ble Supreme Court in the case of Indore Development

Authority (supra).

27.   We also find that the writ petitioners suppressed another

material fact while filing the writ petition. It was that the writ

petitioners themselves started claiming allotment of land in lieu of

compensation whereupon, the Housing Board had proceeded to

offer developed plots and letters were sent to the writ petitioners

to submit their consent. Specific averment was made that the writ

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petitioners, though claimed allotment of developed plots in lieu of

compensation, did not give specific consent for developed plots in

their favour and at one point of time they had also submitted

agreements which were duly signed by them, may be that it was

not signed by the authorities for which the reason assigned by the

Housing Board is that there were certain disputes pending

amongst the shareholders along with the petitioners and also that

there was change in Khasra Nos. Following specific averments

were made by the State.
     "....
     2. That from the conduct of the petitioners, it seems that
     they have entered into some deal with the power of attorney
     holder with regard to which the acquisition proceedings have
     been completed way back in the year 2007 and when the
     petitioners executed documents with regard to surrender of
     land in favour of Rajasthan Housing Board and the attorney
     seems to have been executed for getting windfall gains in
     view of enactment of the provisions with regard to lapsing of
     acquisition which has no application in the instant case. The
     petition is apparently abuse of the process of this Hon'ble
     Court and deserves to be dismissed at the outset.
     3. That the petitioners have made concealment of material
     facts from this Hon'ble Court with regard to deposit of
     compensation before Civil Court on not accepting the same
     by the petitioners, submission of application and documents
     for getting 15% developed land as per Government circulars
     as compensation in lieu of free surrender of the land in
     question in favour of Rajasthan Housing Board free from all
     encumbrances and also with clause for indemnifying in case
     the Housing Board is deprived of possession of land for any
     reasons. The acceptance of request by the Land Negotiation
     Committee as well as by the State Government and fixing of
     the plots to be allotted to the petitioners and execution of
     documents for getting these plots has also been concealed
     from the Hon'ble Court. The petitioners have also concealed
     material facts with regard to change in the record of rights
     and therefore demand of the consent for accepting the
     allotment of land as per the change in the record of rights.
     All these facts have substantial bearing upon the outcome of
     the writ petition and therefore the writ petition deserves
     dismissal at the outset for concealment of material facts and
     misleading the Hon'ble Court which also amounts to abuse
     of process of the Hon'ble Court.
     ...


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      5. That on the one hand, compensation has been deposited
      with the civil court and on the other hand petitioners
      submitted application for grant of 15% developed land. The
      Land Negotiation Committee in its meeting dated 16-07-
      2007 decided to allot plot no. 12/MB/25 to 33 and 12/MB/44
      to 52 i.e. 18 plots total measuring 2338.16 sq. meters in
      Indira Gandhi Nagar residential scheme, Jagatpura in lieu of
      5 Bighas and 18 Biswas of Land under acquisition.....
      6. That the petitioners submitted an agreement attested on
      25-10-2007 which clearly states that the agreement is being
      executed for allotment of 15% developed residential plots in
      lieu of cash compensation on free surrender of entire land as
      per the circular dated 13-12-2001 and the decision of Land
      Negotiation Committee dated 16-07-2007.....
      ...
      12. That camp for allotment of land in lieu of compensation
      was held on 20-04-2014 and the petitioners were told that
      they should give clear consent for allotment excluding the
      land which has been recorded in favour of Dr. Dasot by 29-
      04-2014. However, the petitioners did not submit clear
      consent.....
      13. That the petitioners did not submit the clear consent as
      mentioned above for getting the land allotted excluding that
      recorded in favour of Dr. Dasot and therefore the allotment
      letters could not be issued to the petitioners but the
      petitioners started insisting for allotment of land on 48
      meter or 60 meter wide road which was clearly an
      afterthought. It is also pertinent to mention here that the
      petitioners on the one hand did not submit clear consent and
      on the other hand executed a power of attorney stating that
      the proposal of the Housing Board is not acceptable to
      them....."



28.   In reply of the Housing Board also, the fact regarding writ

petitioners having given up their claim for compensation and

started making applications for allotment of alternative plots was

made as below:
    "...
    5...However subsequent to the above the petitioners have
    applied for allotment of 15% developed land in lieu of
    compensation from acquired land in question.
    6. That after having receiving the application for petitioners

(in the relevant case No.2/92/69, 2/92/116, 2/92/117, 2/92/144)for the allotment of 15% developed land in lieu of compensation, the answering respondent had held a meeting on 16/07/2007 as evident from letter dt. 27/08/2007 of "land negotiation committee". However the land in negotiation committee decided to allot 2338.16 Sq.Mt. land in the form of developed land in terms of plots numbering (Downloaded on 02/05/2024 at 08:41:29 PM) [2023:RJ-JP:41496-DB] (23 of 29) [SAW-1606/2017] 12-MB-25-33 and 12-MB-44-52 (total 18 plots) for which petitioners were to give written consent prior to next Land Negotiation Committee. Further the land negotiation committee has awarded 15% developed land against 5 bhiga 18 biswa land to the petitioners for complete acquired land as per acquisition and award. More so as per new jamabandi Shri Umesh Dasot is the khatedar of khasra No.3820 and 3821 (new) and for the land bearing Khasra No. 3808 (new) is in the name of JDA.

7. That the answering respondent held a camp on 24/04/2014 in sector No. 4, Indira Gandhi Nagar in which petitioners were asked for giving fresh consent for granting compensation in terms of 5 bhiga 5 biswa land lying in respective khatedari of petitioners. However when no response was received by the answering respondent from the petitioners, the answering respondent again issued a letter on 07/07/2014 reminding the petitioners and asked for submitting their clear cut consent for taking compensation in terms of developed 15% land from their khatedari land which was acquired but no response was received by the answering respondent from the petitioners....."

29. The specific averments made by the State as well as Housing Board in their respective reply clearly make out a case of concealment of material facts both with regard to offer of compensation to the petitioners and petitioners giving up their claim for compensation, instead claiming for allotment of developed plots. The writ petitioners did not file any rejoinder to traverse those specific averments made on affidavit in the reply filed by the respondents.

30. It is only when in these appellate proceedings, on the submissions that in view of the decision of Hon'ble Supreme Court in Indore Development Authority (supra), the issue with regard payment of compensation would also require examination, petitioners were granted liberty to file additional plea on this particular aspect. The pleadings made by the writ petitioners by way of amendment in their writ petition (para 7) seek to dispute the factual position that compensation was tendered and that the (Downloaded on 02/05/2024 at 08:41:29 PM) [2023:RJ-JP:41496-DB] (24 of 29) [SAW-1606/2017] writ petitioners were informed regarding deposit of the compensation with the Civil Judge, Jaipur City, Jaipur and further that the compensation in respect of cases of the petitioners came to be withdrawn and amount of compensation deposited with the Court in relation to the cases of the petitioners came to be withdrawn in 2009 in lieu of proceedings towards issuance of patta/lease deeds of 15% of developed plots in the same vicinity to the petitioners. This averment, in our considered view, does not come to the aid of the writ petitioners. In the beginning when the writ petition was filed the aspect with regard to offer of compensation and, on refusal, deposit of the same with the Court, was not disputed. When the respondents came out with specific averments in this regard in their reply made on oath, no rejoinder was filed till conclusion of the writ proceedings. Therefore, the pleadings which have now been made are completely afterthought only to somehow wriggle out all the consequences of the authoritative pronouncement of the Hon'ble Supreme Court that where compensation has been paid in accordance with the provisions contained in Section 31(1) of the old Acquisition Act of 1894, proceedings would not lapse under Section 24(2) of the Act of 2013, even if possession has not been taken.

31. The averments made by way of amendment have been emphatically denied by the Housing Board.

32. In view of above consideration, it is clear that even though compensation was offered to the petitioners, they refused to receive the same, whereupon, the same was deposited in the Court. That fully complies with the legal requirement of Section 31(1) of the old Acquisition Act of 1894 and the case of the (Downloaded on 02/05/2024 at 08:41:29 PM) [2023:RJ-JP:41496-DB] (25 of 29) [SAW-1606/2017] petitioners falls under para 366.5 of the conclusion, referred to and extracted hereinabove.

33. The writ petition is otherwise required to be dismissed on the ground of suppression of material facts with regard to offer of compensation and petitioners' own application for allotment of plots. It is well settled that one, who seeks to invoke the equitable and extraordinary jurisdiction of the writ Court under Article 226 of the Constitution of India, has to come with clean hands. Where a party is found to have suppressed the material facts, no relief should be granted and even there is no need for the Court to examine even the merits of the case.

34. In the case of K. Jayaram and Ors. Vs. Bangalore Development Authority and Ors. [(2022) 12 SCC 815], the settled principles were reiterated by the Hon'ble Supreme Court as below:

"14. In Udyami Evam Khadi Gramodyog Welfare Sanstha and Another v. State of Uttar Pradesh and Others2, this Court has reiterated that the writ remedy is an equitable one and a person approaching a superior court must come with a pair of clean hands. Such person should not suppress any material fact but also 1 (2007) 8 SCC 449 2 (2008) 1 SCC 560 should not take recourse to legal proceedings over and over again which amounts to abuse of the process of law.
15. In K.D. Sharma v. Steel Authority of India Limited and Others 3, it was held thus:
"34. The jurisdiction of the Supreme Court under Article 32 and of the High Court under Article 226 of the Constitution is extraordinary, equitable and discretionary. Prerogative writs mentioned therein are issued for doing substantial justice. It is, therefore, of utmost necessity that the petitioner approaching the writ court must come with clean hands, put forward all the facts before the court without concealing or suppressing anything and seek an appropriate relief. If there is no candid disclosure of relevant and material facts or the petitioner is guilty of misleading the court, his petition may be dismissed at the threshold without considering the merits of the claim.

35. The underlying object has been succinctly stated by Scrutton, L.J., in the leading case of R. v. Kensington (Downloaded on 02/05/2024 at 08:41:29 PM) [2023:RJ-JP:41496-DB] (26 of 29) [SAW-1606/2017] Income Tax Commrs.- (1917) 1 KB 486 : 86 LJKB 257 :

116 LT 136 (CA) in the following words: (KB p. 514) "...

it has been for many years the rule of the court, and one which it is of the greatest importance to maintain, that when an applicant comes to the court to obtain relief on an ex parte statement he should make a full and fair disclosure of all the material facts--it says facts, not law. He must not misstate the law if he can help it-- the court is supposed to know the law. But it knows nothing about the facts, and the applicant must state fully and fairly the facts; and the penalty by which the court enforces that obligation is that if it finds out that the facts have not been 3 (2008)12 SCC 481 fully and fairly stated to it, the court will set aside any action which it has taken on the faith of the imperfect statement." (emphasis supplied)

36. A prerogative remedy is not a matter of course. While exercising extraordinary power a writ court would certainly bear in mind the conduct of the party who invokes the jurisdiction of the court. If the applicant makes a false statement or suppresses material fact or attempts to mislead the court, the court may dismiss the action on that ground alone and may refuse to enter into the merits of the case by stating, "We will not listen to your application because of what you have done." The rule has been evolved in the larger public interest to deter unscrupulous litigants from abusing the process of court by deceiving it.

37. In Kensington Income Tax Commrs.(supra), Viscount Reading, C.J. observed: (KB pp. 495-96) "... Where an ex parte application has been made to this Court for a rule nisi or other process, if the Court comes to the conclusion that the affidavit in support of the application was not candid and did not fairly state the facts, but stated them in such a way as to mislead the Court as to the true facts, the Court ought, for its own protection and to prevent an abuse of its process, to refuse to proceed any further with the examination of the merits. This is a power inherent in the Court, but one which should only be used in cases which bring conviction to the mind of the Court that it has been deceived. Before coming to this conclusion a careful examination will be made of the facts as they are and as they have been stated in the applicant's affidavit, and everything will be heard that can be urged to influence the view of the Court when it reads the affidavit and knows the true facts. But if the result of this examination and hearing is to leave no doubt that the Court has been deceived, then it will refuse to hear anything further from the applicant in a proceeding which has only been set in motion by means of a misleading affidavit." (emphasis supplied) (Downloaded on 02/05/2024 at 08:41:29 PM) [2023:RJ-JP:41496-DB] (27 of 29) [SAW-1606/2017]

38. The above principles have been accepted in our legal system also. As per settled law, the party who invokes the extraordinary jurisdiction of this Court under Article 32 or of a High Court under Article 226 of the Constitution is supposed to be truthful, frank and open. He must disclose all material facts without any reservation even if they are against him. He cannot be allowed to play "hide and seek" or to "pick and choose"

the facts he likes to disclose and to suppress (keep back) or not to disclose (conceal) other facts. The very basis of the writ jurisdiction rests in disclosure of true and complete (correct) facts. If material facts are suppressed or distorted, the very functioning of writ courts and exercise would become impossible. The petitioner must disclose all the facts having a bearing on the relief sought without any qualification. This is because "the court knows law but not facts".

39. If the primary object as highlighted in Kensington Income Tax Commrs.(supra) is kept in mind, an applicant who does not come with candid facts and "clean breast" cannot hold a writ of the court with "soiled hands". Suppression or concealment of material facts is not an advocacy. It is a jugglery, manipulation, manoeuvring or misrepresentation, which has no place in equitable and prerogative jurisdiction. If the applicant does not disclose all the material facts fairly and truly but states them in a distorted manner and misleads the court, the court has inherent power in order to protect itself and to prevent an abuse of its process to discharge the rule nisi and refuse to proceed further with the examination of the case on merits. If the court does not reject the petition on that ground, the court would be failing in its duty. In fact, such an applicant requires to be dealt with for contempt of court for abusing the process of the court."

17. In the instant case, since the appellants have not disclosed the filing of the suit and its dismissal and also the dismissal of the appeal against the judgment of the civil court, the appellants have to be non-suited on the ground of suppression of material facts. They have not come to the court with clean hands and they have also abused the process of law. Therefore, they are not entitled for the extraordinary, equitable and discretionary relief."

35. Had the petitioners disclosed the fact regarding they themselves having given up claim for compensation and started claiming developed plots which led the Housing Board to seek withdrawal of the compensation amount deposited in the Court, (Downloaded on 02/05/2024 at 08:41:29 PM) [2023:RJ-JP:41496-DB] (28 of 29) [SAW-1606/2017] certainly it would have required examination of the entire facts and circumstances, conduct of the party and whether in such circumstances it would be a case of waiver of right to receive compensation but only an enforceable right of seeking allotment of plots. However, in such a case the petitioners were not entitled to challenge acquisition proceedings by taking recourse to the provisions contained in Section 24(2) of the Act of 2013. The petitioners by their own conduct to seek allotment of plots, waived their right in respect of the land in question and, therefore, on that count also, it was not necessary for the Court to examine on merits the issue with regard to lapse of proceedings, though we have examined that issue also on merits and found no substance in the claim of the petitioners.

36. It is interesting to note that even though the writ petitioners were keen to get developed plots in lieu of compensation upon acquisition of their lands and it was on their request that the authorities had proceeded to take decision to allot developed plots and the petitioners had also submitted draft agreement duly signed by them for getting developed plots, due to reason that there was some family disputes amongst the shareholders until the petitioners submitted letter before the authority that the dispute has now been settled and developed plots may be allotted and secondly because there was some discrepancy in the name in the award and further that in the meantime there was change in the Khasra Nos. of the lands of the writ petitioners, the writ petitioners remained deprived of developed plots as also compensation and through power of attorney holder, filed writ petition suppressing many material facts with regard to offer of (Downloaded on 02/05/2024 at 08:41:29 PM) [2023:RJ-JP:41496-DB] (29 of 29) [SAW-1606/2017] compensation and requested for allotment of developed plots. Even though we find that the petitioners are guilty of suppressio veri and suggestio falsi, taking into consideration that the lands have been acquired and they had applied for allotment of developed plots in lieu of compensation and the authorities agreed and made offer for allotment of plots, we are inclined, exercising our extraordinary and equitable jurisdiction to that limited extent, to direct the appellants to allot developed plots as per the offer made to the writ petitioners within a period of three months from the date of receipt of copy of this order.

37. Accordingly, though it is held that acquisition proceedings did not lapse under Section 24(2) of the Act of 2013, the writ petitioners would be entitled to developed plots as directed above.

38. The impugned order passed by the learned Single Judge is, accordingly, set aside and the appeal is partly allowed in the manner and to the extent stated herein above.

39. No order as to costs.

(SHUBHA MEHTA),J (MANINDRA MOHAN SHRIVASTAVA),CJ Jayesh/-

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