In Brief
The Union of India challenged a High Court decision that declared land acquisition proceedings lapsed under Section 24(2) of the 2013 Act, despite possession being taken in 1987. The Supreme Court held that acquisition proceedings do not lapse merely because compensation remains unpaid—lapse occurs only when neither possession has been taken nor compensation paid for five years before the Act's commencement. Once possession is taken, the land vests in the State irreversibly. The Court relied on the Constitution Bench decision in Indore Development Authority, reversed the High Court, and allowed the appeal, holding the landowners were entitled to compensation under the 1894 Act as per the existing award.
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