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Council Of Scientific And Industrial … vs State Of H. P. & Ors on 28 February, 2026

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Himachal Pradesh High Court

Council Of Scientific And Industrial … vs State Of H. P. & Ors on 28 February, 2026

                                                              2026:HHC:5868-DB




         IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA.

                             LPA No. 197 of 2016 a/w LPA Nos. 198




                                                               .
                             to 206 of 2016





                             Date of decision: 28.02.2026

    1. LPA No. 197 of 2016





    Council of Scientific and Industrial Research (CSIR) & Anr.
                                                              ...Appellants.




                                       of
                                Versus
    State of H. P. & Ors.                                ...Respondents
    2. LPA No. 198 of 2016
                     rt
    Council of Scientific and Industrial Research (CSIR) & Anr.
                                                              ...Appellants.
                                Versus

    State of H. P. & Ors.                                ...Respondents
    3. LPA No. 199 of 2016
    Council of Scientific and Industrial Research (CSIR) & Anr.



                                                              ...Appellants.
                                Versus
    State of H. P. & Ors.                                ...Respondents




    4. LPA No. 200 of 2016





    Council of Scientific and Industrial Research (CSIR) & Anr.
                                                              ...Appellants.
                                Versus





    State of H. P. & Ors.                                ...Respondents
    5. LPA No. 201 of 2016
    Council of Scientific and Industrial Research (CSIR) & Anr.
                                                              ...Appellants.
                                Versus
    State of H. P. & Ors.                                ...Respondents
    6. LPA No. 202 of 2016
    Council of Scientific and Industrial Research (CSIR) & Anr.
                                                              ...Appellants.
                                Versus
    State of H. P. & Ors.                                ...Respondents




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    7. LPA No. 203 of 2016
    Council of Scientific and Industrial Research (CSIR) & Anr.
                                                              ...Appellants.




                                                               .
                                Versus





    State of H. P. & Ors.                                ...Respondents
    8. LPA No. 204 of 2016
    Council of Scientific and Industrial Research (CSIR) & Anr.





                                                              ...Appellants.
                                Versus
    State of H. P. & Ors.                                ...Respondents




                                       of
    9. LPA No. 205 of 2016
    Council of Scientific and Industrial Research (CSIR) & Anr.
                                                              ...Appellants.
                                Versus
                     rt
    State of H. P. & Ors.                                ...Respondents

    10. LPA No. 206 of 2016
    Council of Scientific and Industrial Research (CSIR) & Anr.
                                                              ...Appellants.
                                Versus


    State of H. P. & Ors.                                ...Respondents


    Coram




    The Hon'ble Mr. Justice G. S. Sandhawalia, Chief Justice.
    The Hon'ble Mr. Bipin C. Negi, Judge.





    Whether approved for reporting? Yes.
    For the Appellants:         Mr. Het Ram Thakur, Advocate, for the
                                appellants, in all the appeals.





    For the Respondents:        Mr. Rakesh Dhaulta, Additional Advocate
                                General, for respondents-State in all the
                                appeals.

                                Mr. N. K. Sood, Senior Advocate with Mr.
                                Karan Sharma, Advocate, for respondent
                                No. 3 in LPA Nos. 197 & 201 of 2016,
                                respondent No. 3(a) in LPA No. 202 of
                                2016, respondents No. 4 to 6 and 16(f) in
                                LPA Nos. 203 & 205 of 2016 and for
                                respondent Nos. 4 to 6 in LPA No. 206 of
                                2016




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                                Mr. Sumit Sharma, Advocate, for Mr.
                                Pradeep Verma, Advocate for respondents




                                                               .
                                No. 3, 4 and 8 in LPA No. 198 of 2016,





                                respondent No. 3 in LPA No. 199 of 2016,
                                respondent No. 3, 5 and 8 in LPA No. 200
                                of 2016, respondents No. 9(a) to 9(f), 10,
                                12 to 15, 17, 19 to 21 in LPA Nos. 203 &





                                205 of 2016 and for respondents No. 9(a)
                                to 9(f) and 10 to 15 in LPA No. 206 of 2016.




                                       of
                                Mr. K. R. Thakur, Advocate, for proposed
                                LRs No. 22(a) to 22(e) in LPA Nos. 203 &
                                205 of 2016 and for respondent No. 17 (e)
                                in LPA No. 206 of 2016.
                    rt
    G. S. Sandhawalia, Chief Justice (Oral)

The present set of appeals are directed against the

common order of the learned Single Judge whereby 10 writ petitions

SPONSORED

lead case whereof was CWP No. 85 of 2008, titled as Council of

Scientific and Industrial Research (CSIR) & Anr. vs. State of

Himachal Pradesh & Ors., filed by the present appellants, were

dismissed on 22.09.2016.

2. The learned Single Judge dismissed the writ petitions by

placing reliance upon Section 24 of The Right to Fair Compensation

and Transparency in Land Acquisition, Rehabilitation and Resettlement

Act, 2013, which came into force on 01.01.2014, by holding that since

the award had been passed on 08.07.1966 under the Land Acquisition

Act, 1894, but the possession had not been taken, therefore, by virtue

of Section 24(2) of the Land Acquisition Act, 2013 the proceedings as

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such had lapsed by application of law as one of the conditions in the

said proviso had not been fulfilled.

.

3. Reliance was placed upon the judgments of the Apex

Court in Velaxan Kumar vs. Union of India & Ors., (2015) 4 SCC

325; The Working Friends Cooperative House Building Society

Ltd. vs. The State of Punjab & Ors. JT 2015 (9) SC 357; Pawan

of
Kumar Aggarwal vs. State of Punjab & Ors. JT 2016 (4) SC 178;

DDA vs. Raman Grover & Ors. JT 2016(5) SC 196; Shashi Gupta &
rt
Anr. vs. State of Haryana & Ors. JT 2016 (5) SC 196 and Delhi

Development Authority vs. Reena Suri & Ors. JT 2016 (5) SC 291,

and it was accordingly held that once the Apex Court as such had

decided the legal issue and the Land Acquisition Act, 1894 was

replaced with Right to Fair Compensation and Transparency in Land

Acquisition, Rehabilitation and Resettlement Act, 2013, the provisions

of Section 24(2) of the Act came to the rescue of the private

respondents and resultantly interference was not done in the orders

passed by the Collector on 28.05.2007, 18.06.2007 and 16.11.2010.

4. Counsel for the appellants has argued on the strength of

the judgment of the Constitution Bench of the Apex Court in Indore

Development Authority vs. Manohar Lal & Ors., (2020) 8 SCC 129,

that subsequently the judgment in Velaxan Kumar‘s case (supra) was

specifically over-ruled and it has been held that compensation if has

been deposited, then there is no lapse of proceedings and both the

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conditions have to be satisfied and the word ‘or’ has to be read as ‘and’

and not ‘or’ and the twin requirements are cumulative and conjunctive

.

in nature.

5. Reliance can be placed upon paragraph 366.3, wherein it

has been specifically held that if compensation has been paid and the

possession has not been taken, then there is no lapse. The said

of
paragraph reads as under:-

“366.3 The word ‘or’ used in Section 24(2) between possession
and compensation has to be read as ‘nor’ or as ‘and’. The
rt
deemed lapse of land acquisition proceedings under Section

24(2) of the Act of 2013 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.”

6. In such circumstances, we are of the considered opinion

that the view taken by the learned Single Judge as such is not liable to

be sustained since the law declared by the Apex Court is to the

contrary now and the judgment in Indore Development Authority

(supra) was passed subsequent to the passing of the judgment by the

learned Single Judge.

7. The issue now remains as to whether the orders passed

by the Collector on 28.05.2007, 18.06.2007 and 16.11.2010, are liable

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to be sustained, which was subject matter of challenge in the civil writ

petitions filed.

.

8. Keeping in view the background as such of the litigation,

we are of the considered opinion that the land owners-respondents had

perfected their title by way of adverse possession and the present

appellants had failed to institute the proceedings within the prescribed

of
period to take possession in accordance with law despite knowing the

fact that having the benefit of acquisition of land in their favour and the
rt
award dated 08.07.1966, which was on the basis of the notification

issued on 04.01.1966. Once they had not taken possession as per the

terms of the award, which was to be within six weeks from the date of

the award and took steps after 30 years, the respondents had acquired

the right to the title on the basis of adverse possession. The relevant

portion of the award reads as under:-

“The ownership of some buildings occupied by the tenants is

disputed by the land owners and the tenants. Necessary
apportionment in this respect has been made by me after

necessary enquiries at the spot. The compensation due to
tenants and interested persons will be paid out of the allocation
of the land owners who contest the ownership.
Compensation for fruit trees, standing crops and change of
residence as well as loss of business will be paid to the tenants
out of the allocation of the land owners under whom the tenants
work.

There are 18 buildings occupied by the land owners and 70
buildings occupied by the tenants for which compensation is to
be paid to the interested persons. The possession of these

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buildings will be given after 6 weeks of the announcement of
the award. It can be a possibility that the owners or occupiers

.

remove material of the building within this gap of six weeks. In

order to ensure that the buildings are intact, till the taking over
of their possession, compensation of the buildings will be paid
to the interested persons on the date when the acquiring

department is quite in a position to look after these acquired
buildings and this date will be within six weeks of the

of
announcing of the award. If it is found by the acquiring
department that the material of any building is removed before
taking over possession, the value of this building will be re-
assessed by the P.W.D. and the deficiency found in the value
rt
of the buildings already assessed will be made good out of the
allocation of the person interested who is paid compensation of

that building and he will be paid less amount after deducting the
value of the material.

Date of possession

The possession of waste, arable and land under tea bushes will
be given immediately after making payment of compensation.

Building will be got vacated after six weeks of the
announcement of the award. The land owners are allowed 4

months to pull out the tea factory machine from the date of
announcement of award whereafter the possession of factory
premises will vest with the acquiring department.”

9. It is not disputed that the first proactive steps as such after

the passing of the award dated 08.07.1966 was only taken by filing a

suit for possession of the land and the house in question and also

seeking permanent injunction against the defendants on 29.04.1989,

who are the private respondents herein, for restraining other from

raising any construction on the suit land.

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10. In the plaint itself, the plea taken was that the present

appellants is a Society registered under the Societies Registration Act

.

and the owners of the land, the details of which were given, the

acquisition had been of the year 1966 for establishment of National

Biological Research Institute at Palampur. The compensation had been

duly deposited and disbursed to the owners and other occupants

of
including the predecessor-in-interests of the defendants and the

scheme of establishing the research institute was dropped. In the year
rt
1978, the property was handed over to the Regional Research

Laboratory, Jammu, another constituent unit of CSIR for its research

work etc. and the Laboratory was using only a part of the property. It

was further averred that the defendants in the year 1984 had been

orally asked to vacate the suit land, but they had not done so and then

the suit was filed as they had not vacated the property and were further

wanting to raise constructions. The cause of action was stated to be of

the year, 1984 and it was admitted that there was house also. One of

the plaint reads as under:-

“The plaintiff submits as under:-

1. The plaintiff is a society registered under the societies
registration Act and is the owner of the land incorporated in the
Jamabandi 1983-84, Khata No. 7 Min Khatoni No. 21 Khasra
Nos. 225-256 & 258 qita-3 measuring 0-07-13 hectares situated
in Mohal Holta, Mauza Holta, Tehsil Palampur alongwith the
structure specified in site plan attached Annexure ‘A’. The

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National Biological Research Institute was to be a constituent of
Council of Scientific & Industrial Research, Plaintiff Council.

.

2. That earlier this land and house mentioned above in para-I of

the plaint to be further termed as suit property was a part of the
Holta Tea Estate, Palampur alongwith other land and buildings.

3. That in the year 1966, the plaintiff wanted to establish

National Biological Research Institute at Palampur and had
asked the Punjab Government to acquire the land in Holta Tea

of
Estate, as Distt. Kangra formed a part of State of Punjab at that
time.

4. That compensation was awarded to the owners and other
occupants of any part of the acquired property by Revenue
rt
Asstt. Kangra at Dharamshala, exercising the powers of
Collector, Kangra under the Land Acquisition Act, 1894 which

was duly deposited in the Treasury and all the owners and the
occupants received their payments of the compensation for all
the rights whatever they had in the Holta Tea Estate.

5. That regarding the suit land, the compensation was given to
Smt. Waziro predecessor in interest of the present defendants.

Sh. Nathu s/o Smt. Waziro whose name is recorded in the
revenue papers as occupants, had already died.

6. That as the scheme of establishing the National Biological
Research Institute was later dropped and later in the year 1978.
The part of the property was temporarily handed over to

Regional Research Laboratory, Jammu of CSIR for its work and
the laboratory was using only a part of the whole property.

7. That as the plaintiff wanted to establish a Laboratory with its
wider objects and research programme, it established its
Complex at Palampur in 1983. the plaintiff asked the
defendants in 1984 orally to vacate the suit property as all the
land and property were required for the purposes of the plaintiff
Council. Although the defendants orally promised to vacate the
property but they wanted to be given some time as they wanted

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to make some alternate arrangements in the meantime. But
uptill now they have failed to vacate the possession of the suit

.

property. Hence this suit.

8. That as the plaintiff Council needs the suit property for its
work and the defendants have not vacated the property rather
they are planning to further raise construction for which the

defendants have no right at all. The plaintiff Council is left with
no other alternative but to initiate the legal proceedings against

of
them.

9. That the cause of action has accrued to the plaintiff in 1984
and now in June, 1988 at Mohal Holta, Tehsil Palampur Distt.
Kangra within the territorial jurisdiction of this Court.

rt

10. That the value of the suit for the purpose of court fee and
jurisdiction as as follows:-

                Court fee                                      Jurisdiction
                Prayer(a) Rs. 7=80                             Rs.23=00
                Prayer (b) Rs. 2000=00                         Rs. 2000=00



                Prayer (c) Rs. 190=00                          Rs. 190=00

The value of the house has been fixed as Rs. 2000=00 as it is a

very old and in dilapidated condition.

It is therefore, prayed that a decree as prayed for in the heading

of the plaint may kindly be granted in favour of the plaintiff and
against the defendants with costs.”

11. Thus, in the plaint itself, the present appellants had

admitted the factum that the possession had continued from the year

1966 onwards and they had not taken any proactive steps and they

were aware that defendants and predecessor-in-interest now

represented by as respondents continued to be in a possession which

was apparently adverse and hostile as contention was being raised and

there was categorical admission by the present appellants.

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12. The suit, however, was dismissed on 30.04.1996 by the

Sub Judge First Class, Palampur, Kangra after framing the issue

.

whether the defendants had become owners of the suit property by

way of adverse possession on the ground of maintainability keeping in

view the provisions of the Land Acquisition Act and the judgment of the

Apex Court in Special Land Acquisition Officer, Bombay versus

of
M/s Godrej and Boyce AIR 1987 SC 2421, that the land shall be

deemed to be vested in the government in view of Section 16 and
rt
therefore the Land Acquisition Act was a complete code in itself.

13. No appeal as such was filed against the said decision and

belatedly after three years, the application under Section 16 of the

Land Acquisition Act was preferred before the Collector. The Collector

while passing its first order dated 28.05.2007 (Annexure P-1) came to

the conclusion that person in possession can validly claim possessory

title as against the title of the present appellants and since they had

failed to take possession at the time when the award had been passed,

the application was not maintainable at the belated stage and

dismissed the same. The relevant portion of the order reads as under:-

“From the above discussion and perusal of the arguments put
forth by the Counsel for the parties and record so placed on the
file, the Court has come to the conclusion that the application
has been moved by the party/applicant for taking over the
possession after long for more than 30 years. The applicant
was asked to produce evidence with regard to the actual
possession by the defendant at the time of handing over the

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said possession of the ground as per letter and spirit of Section
16
of the Land Acquisition Act, but in spite of giving of many

.

opportunities to do so, the applicant failed to do so. No credible

evidence whatsoever or written has been placed on record
which can support their claim. It is therefore, clear that until and
unless the defendant takes possession of the land after the

acquisition, no title possess to it. In such a case, the person in
possession can validly claim possessory title as against the

of
title.

It was for the applicant to take over the actual possession at the
time of handing over the possession by the acquiring authority
and in case had their been some resistance to do, it would have
rt
been appropriate for the applicant party to move under Section
16
of Land Acquisition Act to obtain the actual possession on

the ground at that point of time. Since that remedy has not been
availed by the party at that point of time, therefore, this
application is not maintainable under Section 16 of Land

Acquisition Act, now and hence dismissed. File be consigned to
the General Record Room after the completion.
Announced in the open court on today 28th May, 2007.”

14. Similar order came to be passed on 18.06.2007 that the

matter was of civil nature and had already been decided by the Trial

Court. The relevant portion of the said order reads as under:-

“Case called. Counsel for both the parties present. The
arguments in this case have already been heard. From the
perusal of arguments and record so placed on the file, it reveals
that a case between the parties have already been decided in
the Court of Sub Judge Ist Class Palampur on 3.4.1981 vide
civil suit No. 214/1976 titled as Smt. Chirago Devi versus Union
of India etc. wherein the respondents (petitioners in the present
petition) have been restrained to make any interference in the

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land in question. In such circumstances, this Court has nothing
to do in this case in view of the being of civil nature. Hence the

.

petition is dismissed and the parties are directed to seek

remedy in the competent court of law. The file be consigned to
the GRR after due formalities.”

15. Another order was passed by the Collector on 16.11.2010,

the relevant portion whereof reads as under:-

of
“I have heard the Ld. Counsels for the parties and perused the
material on record very carefully and it is obvious that the
instant application has been filed by the applicant on
rt
21.06.2003 after a lapse of more than 36 years.

It is well settled law that the law of limitation cannot be

extended on equitable grounds. The Hon’ble Supreme Court in
P. K. Ramachandaran vs. State of Kerala has held that the law
of limitation may harshly affect a particular party but it has to be

applied with all its rigour when the statute so prescribed and the
court has no power to extend the period of limitation on
equitable grounds (AIR 1998 SC 2276). The proposition of law

is that if a case is barred by limitation it must be dismissed by
the court not withstanding that no such plea was taken by the

either of the parties (AIR 1964 SC 1336).

It is obvious from the perusal of the case file and the discussion

held here in above that it was for the applicant to take
possession at the time of handing over of the possession by the
acquiring authority and the appropriate action u/s 16 and other
provisions of the Land Acquisition Act could have been taken
by the said acquiring authority at that point of time. Moreover
there is colossal delay in filing the application and the
application is badly barred by limitation and the same is
dismissed.”

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16. Resultantly, the present writ petitions came to be filed,

which as noticed, were dismissed on account of lapsing of proceedings

.

on account of possession not having been taken, which view cannot be

sustained as noticed above in view of the judgment of the Apex Court

in Indore Development Authority’s case (supra).

17. The right as such to claim the possession of the

of
immovable property or any interest would become time barred in view

of Article 65 of the Limitation Act, which is 12 years when the
rt
possession of the defendants become adverse to the plaintiffs.

18. As noticed, in the plaint itself, there was an admission that

the possession of the present respondents was apparently open and

hostile in as much as even construction was being raised in front of the

eyes of the present appellants and, therefore, they were constrained to

file the civil suit for possession. The delay at the hands as such of the

appellants of a period of over 30 years from 1966 to 29.04.1989, thus,

cannot be countenanced.

19. In such circumstances, once the factual matrix is clear, it

would be a travesty of justice as such at this point of time to enforce the

award by way of writ of mandamus on the ground that the appellants as

such had deposited the compensation and, therefore, having become

owners of the land by virtue of Section 16 of the Land Acquisition Act

and are entitled for possession. The specific plea had been taken by

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the respondents in the civil suit, had the same been not adjudicated

upon solely on the ground that the suit was not maintainable.

.

20. Having not acted promptly at that point of time and letting

the private respondents to continue the possession for a long period of

over 30 years before even filing the suit, we would grant the benefit as

such of adverse possession to the respondents.

of

21. The earlier view of the Apex Court was that the principle

of adverse possession can be only used as shield to protect the settled
rt
possession. Now the view has veered around to the extent that on the

basis of long possession, person is also entitled to suit for declaration

that they are owners by virtue of adverse possession.

22. Reliance can be placed upon the judgment of the Hon’ble

Supreme Court in Ravinder Kaur Grewal & Ors. vs. Manjit Kaur &

Ors. (2019) 8 SCC 729, wherein it has been held as under:-

“62. We hold that a person in possession cannot be ousted by

another person except by due procedure of law and once 12
years’ period of adverse possession is over, even owner’s right

to eject him is lost and the possessory owner acquires right,
title and interest possessed by the outgoing person/owner as
the case may be against whom he has prescribed. In our
opinion, consequence is that once the right, title or interest is
acquired it can be used as a sword by the plaintiff as well as a
shield by the defendant within ken of Article 65 of the Act and
any person who has perfected title by way of adverse
possession, can file a suit for restoration of possession in case
of dispossession. In case of dispossession by another person
by taking law in his hand a possessory suit can be maintained

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under Article 64, even before the ripening of title by way of
adverse possession. By perfection of title on extinguishment of

.

the owner’s title, a person cannot be remediless. In case he has

been dispossessed by the owner after having lost the right by
adverse possession, he can be evicted by the plaintiff by taking
the plea of adverse possession. Similarly, any other person

who might have dispossessed the plaintiff having perfected title
by way of adverse possession can also be evicted until and

of
unless such other person has perfected title against such a
plaintiff by adverse possession. Similarly, under other Articles
also in case of infringement of any of his rights, a plaintiff who
has perfected the title by adverse possession, can sue and
rt
maintain a suit.”

23. Though the Apex Court in B. Leelavathi vs. Honnamma

& Anr. 2005 (2) CCC 663 has held that plea of adverse possession is a

question of fact and has to be specifically pleaded but in this case, as

noticed, it is the case of the appellants themselves by way of admission

on their part of long adverse possession and therefore once the fact as

such is admitted by them, we deem it appropriate to adjudicate on the

issue rather than relegating the parties to another round of litigation to

prove that their title has got perfected on the basis of long possession.

24. In such circumstances, we are of the considered opinion

that the present appeals are not liable to be allowed by setting aside

the orders of the Collector though the reasoning of the learned Single

Judge for different reasons cannot as such sustain. Resultantly, the

view cannot be sustained and to that extent the appeals are disposed

off but the writ petitions continue to remain dismissed.

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25. Accordingly, we dismiss the present set of appeals.

.

(G. S. Sandhawalia)
Chief Justice

(Bipin C. Negi)
th
28 February, 2026 Judge
(sanjeev)

of
rt

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