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Supreme Court of India

KRISHI UTPADAN MANDI SAMITI ORAI DISTRICT, JALAUN THROUGH ITS SECRETARYversusAMAR SINGH AND ANR.

Citation
1996 INSC 1093
Decided
20 September 1996
Disposal
Appeal(s) allowed

Holding

The High Court’s award of additional amounts under Section 23(2), the proviso to Section 28 and Section 23(1‑A) is erroneous; claimants are entitled only to interest at 6% on the enhanced compensation from possession to deposit and solatium at 15% on the enhanced compensation.

Summary

The Supreme Court examined an appeal by Krishi Utpadan Mandi Samiti challenging the award of additional compensation, enhanced solatium and interest granted by the Allahabad High Court to the respondents under the Land Acquisition Act, 1894. The High Court had applied provisions of the 1984 amendment (Section 23(2), proviso to Section 28, Section 23(1‑A)) and set solatium at 30% and interest at 9% for one year and 15% thereafter. The Supreme Court held that the award was passed before the amendment came into force and therefore the High Court could not grant those enhanced benefits. It clarified that only interest at 6% on the enhanced compensation from the date of possession to deposit and solatium at 15% on the enhanced compensation are payable. Consequently, the appeal was allowed and the High Court’s order was set aside, without costs.

Issues considered

  • When the original compensation award was made before the 1984 amendment, can the High Court award additional amounts under Section 23(2), the proviso to Section 28 and Section 23(1‑A) of the Land Acquisition Act, 1894?
  • Are the claimants entitled to the higher solatium (30%) and interest rates (9%/15%) awarded by the High Court?
  • Should an application under Section 151 of the CPC for correction of the award have been entertained?

Legislation cited

Subjects

Land acquisitionCompensation awardSolatiumInterest rateSection 23Section 26Section 28Amendment Act 68 of 1984Section 151 CPCSupreme Court appeal

Judgment

            KRISHI UTPADAN MANDI SAMITI ORAi DISTRICT,                            A
                  JALAUN THROUGH ITS SECRETARY
                                v.
                       AMAR SINGH AND ANR.

                              SEPTEMBER 20, 1996
                                                                                   B
                [K. RAMASWAMY AND G.B. PA'ITANAIK, JJ.]

            Land Acquisition Act, 1894 :

           Sections 23(1-A), 23(2), 26 and 28-Compensation Award passed by C
    the Reference Cowt-On appeal High Court awarding additional amount,
    enhancing solatium and also awarding interest-Held : High Court was in
    en-or in granting the additional amounts to which the claimants not en-
    titled-17iey are entitled to interest @ 6% on the enhanced compensation
    from date of taking of possession of the land till date of deposit and solatiwn
    at 15% on the enhanced compensation.                                            D
            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 13090 of
    1996.

         From the Judgment and Order dated 19.5.94 of the Allahabad High
    Court in C.M.A. No. 3684/90 in P.A. No. 4 of 1981.                             E
            O.P. Rana, T. Mahipal ~nd Pradeep Misra for the Appellant.

            V.K.. Choudhary and A.S. Pundir for the Respondents.

            The following Order of the Court was delivered :                       F
            Leave granted.

         Though the notice was issued, neither the acknowledgment nor the
    unserved cover has been received from the second respondent. The first
    respondent is appearing through the counsel.                           G
         We have heard the learned counsel for the appellant and the first
    respondent. A notification under Section 4(1) of the Land Acquisition Act,
    1894 was published on March 1, 1973. The award of the Collector was
    made on 15th October, 1975. On reference under Section 18, the Civil
    Court enhanced the compensation on January 30, 1975. On July 9, 1981,         H
-                                          629
    630                   SUPREME COURT REPORTS (1996) SUPP. 6 S.C.R.

A the appeal filed by the State was dismissed confirming the compensation
    @ Rs. 10,000 per acre. Subsequently, the claimant's appeal was disposed
           1


    of on August 24, 1987 with enhancement of the solatium and interest and
    also the additional amount under Section 23(2), proviso to Section 28 and
    Section 23(1-A) respectively. In March 1990, application under Section
    151, CPC filed by the appellant for correction of the award granted by 'the
B   High Court was dismissed on May, 1994. Th~s, this appeal by special leave.

         It is now well settled legal position that when the award itself under
  Section 26 was passed by the reference Court on January 10, 1979, the High
  Court was obviously in error in awarding the additional amount under the
C Amendment Act 68 of 1984 as per Section 23(2), proviso to Section 28 and
  Section 23(1-A) enhancing solatium to 30%, interest @ 9% for one year
  and @ 15% thereafter from the date of taking possession on enhanced
  compensation and additional amount @ 12% per annum from the date of
  the notification till the date of taking possession or award, whichever is
  earlier. In these circumstances, the High Court was obviously in error in
D granting those additional amounts. When an application under Section
  151, CPC was filed, the High Court ought to have corrected its misrake,
  but instead it dismissed it. Under these circumstances, we hold that the
  claimants are not entitled to the aforesaid benefits; instead, they are
  entitled to the interest @ 6% on the enhanced compensation from the date
E of taking possession of the land till the date of deposit and solatium at 15%
  on the enhanced compensation.

           The appeal is accordingly allowed, but without' costs.

    G.N.                                                       Appeal allowed.
F
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