Statutory vesting under urgency acquisition bars withdrawal or cancellation once possession is taken and title has vested.

Once possession is taken under the urgency provisions of the Land Acquisition Act, the land vests in the Government free from all encumbrances, and that statutory vesting is not displaced by any earlier irregularity in taking possession. After vesting, the Government cannot withdraw from or cancel the acquisition under Section 48, because that power applies only before possession is taken. Nor can Section 21 of the General Clauses Act be used to undo a vested acquisition, as the special scheme of the Land Acquisition Act prevails over the general power of rescission. The acquisition therefore could not be cancelled once statutory vesting had occurred.

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Issues: (i) Whether, after possession is taken under the urgency provisions of the Land Acquisition Act, the land vests in the Government free from all encumbrances; (ii) whether, after such vesting, the Government can withdraw from or cancel the acquisition by invoking Section 48 of the Land Acquisition Act or Section 21 of the General Clauses Act.

Issue (i): Whether, after possession is taken under the urgency provisions of the Land Acquisition Act, the land vests in the Government free from all encumbrances.

Analysis: Where a notification under Section 17(1) is issued and possession is taken pursuant to the urgency procedure, possession previously obtained is to be treated as possession of the Government on expiry of the statutory period after the notice under Section 9(1). Once that stage is reached, the land stands vested in the Government free from all encumbrances. The vesting is statutory and is not displaced by the circumstance that possession may earlier have been taken in an irregular or unlawful manner.

Conclusion: The land vests in the Government free from all encumbrances once possession is taken under Section 17(1).

Issue (ii): Whether, after such vesting, the Government can withdraw from or cancel the acquisition by invoking Section 48 of the Land Acquisition Act or Section 21 of the General Clauses Act.

Analysis: Section 48 permits withdrawal only where possession has not been taken. Section 21 of the General Clauses Act may generally support cancellation of notifications, but that general power cannot be exercised after the land has vested statutorily in the Government. A vested acquisition cannot be undone by mere cancellation of the notifications, and the special scheme of the Land Acquisition Act prevails over the general power of rescission.

Conclusion: The Government cannot cancel or withdraw from the acquisition after vesting has occurred.

Final Conclusion: The appeal was liable to fail because the acquisition had progressed to the stage of statutory vesting, after which withdrawal or cancellation was impermissible.

Ratio Decidendi: Once possession is taken under the urgency provisions of the Land Acquisition Act and the land vests in the Government, the acquisition cannot be withdrawn or cancelled under a general rescinding power or under the withdrawal provision applicable only before possession.

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