The Supreme Court has ruled that land acquisition proceedings lapses if the government fails to make the award within the stipulated two years from the date of declaration.

The court said a reading of the relevant provision makes it clear that the Collector is obliged to make an award within a period of two years from the date of the publication of the declaration. A bench comprising justices G.S. Singhvi and S.J. Mukhopadhaya said that the time consumed by court litigations should be excluded.

The apex court passed the ruling while allowing an appeal filed by land owners R Indira Saratchandra and others challenging the acquisition of their land by the Tamil Nadu Housing Development Corporation.

In this case, the acquisition was challenged by the land owners on the ground that the government chose to pass the award beyond the stipulated two years after the Madras High Court had upheld the acquisition of land by its judgement of August 29, 1996.

Subsequently, a single judge of the high court on a fresh petition filed by the aggrieved land owners quashed the acquisition as the award was passed two years after the declaration made by the government. A division bench however, reversed the decision and upheld the government's decision following which they moved the apex court.

The state defended the delay on the ground that there was a delay in receiving a copy of the high court judgement.

Rejecting the State's claim, the apex court said, there is nothing in the Section 11A from which it can be inferred that the stay order passed by the court remains operative till the delivery of copy of the order.