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Supreme Court of India

JAGDISH SINGH AND ANR.versusUNION OF INDIA AND ANR.

Citation
1995 INSC 231
Decided
29 March 1995
Disposal
Dismissed

Holding

The High Court did not commit an error of law in enhancing market value, but manifestly erred in applying Sections 23(1‑A), 23(2) and 28 (as amended) to grant interest, solatium and additional compensation, which the claimants are not entitled to.

Summary

The Union acquired a large tract of land comprising seven villages for defence purposes, issuing a notification under Section 4(1) of the Land Acquisition Act, 1894 on 21‑01‑1977. The Collector awarded compensation on 11‑04‑1980, which was later enhanced by the Additional District Judge in 1980 and 1982, and further enhanced by the High Court to between Rs.57,400 and Rs.78,000 per acre. Claimants from Sher Majra, who received Rs.57,400 per acre, appealed for Rs.78,000, arguing that compensation should be determined land‑wise and that they were entitled to parity with other villages. The High Court had adopted a "municipal‑limit" and distance‑based method due to lack of land‑wise evidence, a method the claimants challenged. The Supreme Court held that the High Court did not err in enhancing market value but erred in applying Sections 23(1‑A), 23(2) and 28 (as amended by Act 68 of 1984) to grant interest, solatium and additional compensation, which the claimants were not entitled to. Consequently, the claimants' appeals were dismissed and the Union’s appeals were allowed in part to the extent of granting the statutory benefits.

Issues considered

  • The appropriateness of the High Court's method of determining compensation on a village‑wise basis versus a land‑wise basis.
  • Whether the claimants are entitled to interest, solatium and additional compensation under Sections 23(1‑A), 23(2) and 28 as amended by Act 68 of 1984.
  • Whether the High Court's enhancement of compensation can be interfered with on the ground of error of law.

Legislation cited

Subjects

Land acquisitionCompensation determinationInterest and solatiumMunicipal limitsDistance‑based valuationSections 23(1‑A), 23(2), 28Amendment Act 68 of 1984Supreme Court

Judgment

A                        JAGDISH SINGH AND ANR.
                                         v.
                         UNION OF INDIA AND ANR.

                                MARCH 29, 1995

B
                (K. RAMASWAMY AND B.L. HANSARIA, JJ.]

          Land Acquisition Act, 1894:

          Compensation-Determination of-Land of different persons-Acquisi-
C tion of-No satisfactory evidence to determine compensation land-wise of
    each claimanfo-Taking into account m~nicipal limit as the basis-Decreasing
    the compensation progressively on the basis of increasing distance-Held
    valid.

D         Sections 23( 1-A), 23(2) and 28 (As amended by 1984 Act): Benefits
    undel--Entitlement to.

           For acquisition of a large extent of land comprising of seven villages
    Notification under section 4(1) of the Land Acquisition Act, 1894 was
    published on 21.1.1977 and the Collector made his award under section 11
E   on April 11, 1980. The Reference Court enhanced the compensation on
    February 9, 1982. On further appeals, the High Court enhanced the
    compensation between Rs. 57,400 and Rs. 78,000 per acre. As there was no
    satisfactory evidence to determine the compensation land-wise of each
    claimant, the High Court took into account the municipal limits as the
F   basis and decreased the rate of compensation progressively on the basis
    of increasing distance. The appellants who were awarded Rs. 57 ,400 for
    their 'lands filed appeals in this Court claiming higher compensation of
    Rs. 78,000 per acre on the ground that (i) the High Court has committed
    grievous error In adopting each village as a measure to determine the
    compensation and that it should have determined compensation land wise;
G   and (ii) for the acquisition of land in other village which was away from
    Municipality comp~sation of Rs. 78,000 per acre was awarded and the
    appellants were entitled to parity in compensation because their lands
    were situated very 11ear to abadl and were therefore possessed of more
    potential value than the land in other villages. On the other hand the State
H   did not question enhancement .of compensation on merits.
                                         72
                               JAGDISH SINGH v. U.0.1.                          73

             Dismissing the appeals of the claimants and allowing the State           A
        appeals in part, this Court

               HELD : The High Court has not committed any error of law war·
        ranting interference for further enhancing the market value. However, it
        has committed manifest error of law in applying Sections 23(l·A), 23(2)
        and 28 as ame11ded by Act 68 of the 1984 giving enhanced interest and         B
        solatium and additional compensation at U%·per annum from the date of
        the notification till the date of Award or the date of taking possession,
        whichever is earlier. In cases of present nature, the claimants are not
w -.;   entitled to such benefits. [74·F·GJ

             CiviL APPELLATE JURISDICTION : Civil Appeal No. 4341 of
                                                                                      c
        1995 Etc. Etc.

             From the Judgment and Order dated 17.9.1987 of the Punjab and
        Haryarta High Court in L.PANo. 634 of 1984.
                                                                                      D
              S.K. Bagga, Muni Lal Varma; Mrs. S. Bagga, Seeraj Bagga, Y.P.
        Mahajan for P. Parmeswaran (Ms. Shasbi Kiran) (NP), Ranbir Yadav and
        G .K. Bansal for the appearing parties.

             The following Order of the Court was delivered:
                                                                                      E
               Delay in filing the Special Leave Petition and substitution applica·
        lions is condoned. All the substitution applications are allowed.

              Leave granted in all the matters.

              Notification under s.4(1) of the Land Acquisition Act was published     F
        in the Gazette on 21.1.1977 acquiring a large extent of land comprising of
        seven villages, including Kheri Gujran, Bir Kheri Gujran, Haji Majra,
        Pasiana and Sher Majra in Tehsil and District Patiala for defence pur·
        poses. The Collector made his award under s.11 on April 11, 1980. On
        reference under s.18, the Additional District Judge, Patiala, enhanced the    G
        compensation on September 4, 1980 and on February 9, 1982. On further
        appeals, the High Court enhanced the compensation between Rs. 57,400
        to 78,000 per acre. The lands in question relate to Sher Majra. For these
        lands Rs. 57,400 per acre was awarded. Still not being satisfied, the
        claimants have filed these appeals claiming compensation at Rs. 78,000 as     H
    74                    SUPREME COURT REPORTS                  (1995) 3 S.C.R.

A allowed in respect of village Malo Majra.

          Learned counsel for the appellants contends that the High Court
    has committed grievous error in adopting each village as a measure to
    determine the compensation. On the other hand, the court should have
B adopted land wise and should have determined compensation accord-
    ingly. It is further contended that the lands of the appellants are situated
    very near to residential abadi and that, therefore, their lands are possessed
    of more potential value than the lands in other villages. Having granted @
    Rs. 78,000 for lands in Malo Majra which is also a way from the Patiala
    Municipality, the appellants are also entitled to compensation on the same
C   parity. We find no force in the contentions. The State did not file appeals
    questioning enhancement of compensation on merits. So, we are obviated
    to go into the correctness of the enhancement ordered by the High Court.

          The High Court has adopted a rough and ready evaluation in deter-
D mination of the compensation. It has taken fato account the municipal
  limits as the basis and decreased the rate of compeiisatioo...progressively
  as the distance increases. Here· is a case where there is no salbfatltory
  evidence to determine the compensation land-wise of each claimant.
  Therefore, the High Court, instead of remitting the cases and directing the
E District Judge to determine the compensation in respect of each of the
  claimants, has adopted, as stated earlier, a rough and ready method.

        On the totality of the facts and circumstances, we are of the con-
  sidered view that the High Court has not committed any error of law
  warranting interference for further enhancing the market value. Section
F 4(1) notification was published on January 21, 1977, award of the Collector
  is dated April 11, 1980 and that of the Additional District Judge on
  February 9, 1982, therefore, it has committed manifest error of law in
  applying Sections 23(1-A), 23(2) and 28 as amended by Act 68 of 1984
  giving enhanced interest and solatium and additional compensation at
G 12% per annum from the date of the notification till the date of Award or
  the date of taking possession, whichever is earlier. It is now settled law that
  in cases of present nature, the claimants are not entitled for the benefits
  under Sections 32(1-A), 23(2) and 28.

H         Accordingly, the appeals of the claimants are dismissed and the
                      JAGDISH SINGH v. U.0.1.                        75

appeals filed by the Union of India are allowed only to the above extent   A
of granting the benefits under the Amended Act 68 of 1984. In the
circumstances, parties are directed to bear their own costs throughout.

T.N.A.                                     Claimants Appeals dismissed.
                                                 State Appeals allowed.


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