Holding

The claimant is entitled to the additional amount at 12% per annum on the enhanced market value, but only from the date of publication of the notification under s.4(1) up to the date of award, not retrospectively from the date of possession.

Summary

The Supreme Court examined whether a landowner, whose possession was taken in 1965, was entitled to the additional amount under section 23(1‑A) of the Land Acquisition Act, 1894 as amended by Amendment Act 68 of 1984. The notification under section 4(1) was published in 1980 and the award was made in 1983. The State argued that because possession preceded the amendment, no additional amount was payable, while the claimant contended it should be calculated from the date of possession. The Court held that the amendment was prospective and could not be given retrospective effect; therefore the additional amount is payable only from the date of notification (6 March 1980) to the date of award (30 September 1983) at 12% per annum on the enhanced market value. Both the State's appeal and the claimant's cross‑appeal were dismissed.

Issues considered

Whether the claimant is entitled to the additional amount under s.23(1‑A) of the Land Acquisition Act, 1894 as amended by Amendment Act 68 of 1984 when possession was taken before the amendment came into force.
From which date the additional amount should be calculated – the date of taking possession or the date of publication of the notification under s.4(1).

Legislation cited

Amendment Act 68 of 1984
Land Acquisition Act, 1894s. 11, s. 23(1-A), s. 23(2), s. 28, s. 4(1)

Subjects

Land acquisitionAdditional compensationSection 23(1‑A)Amendment Act 68 of 1984Retrospective effectNotification datePossession dateSolatiumInterest

Judgment

A THE SPECIAL TEHSILDAR (LA) P.W.D. SCHEMES,
VIJAYAWADA
v.
M.A. JABBAR

JANUARY 11, 1995
B
[K. RAMASWAMY AND SUJATA V. MANOHAR, JJ.]

Land Acquisition Act, 1894-Amendment Act 68/84 :

C S.23(1-A)'.--Additional amount-Claimant entitled from date of publi-
cation of notification under s. 4(1) till date of award since possession taken
before the Amending Act.

A notification under s.4(1) of the Land Acquisition Act was publish-
ed on March 6, 1980, though possession of the land was taken on February
D 15, 1965. The award was made by the Collector on September 30, 1983. On -+- -
appeal, the High Court determined the compensation at Rs. 120 per sq.
yard and awarded solatium @ 30% on enhanced compensation.

Jn this appeal, the State contended that since possession had already
been taken prior to the Amending Act 68 of 1984 came into force, the
E claimant was not entitled to additional amount.

In tbe cross-appeal, the respondent-claimant contended that since
possession was already taken and the owner was deprived of the enjoy-
ment of the land, additional amount should be paid from the date of taking -r·
possession since s. 23(1A) stipulated that the amount shall be payable
F
from the date of the award or taking possession whichever is earlier.

Dismissing the appeals, this Court

HELD : 1. The claimants would be entitled to additional amount of
G the enhanced market value at 12% per annum from the date of the
publication of the notification under s.4(1) of the Land Acquisition Act till
the date of the award, since possession had already been taken before the
Amending Act has come into force. [183-D]

2. In interpreting (sub-s.lA) of S.23, the High Court is right in
H concluding that the claimants are entitled to the additional amount at the
180
TEHSILDAR (L.A) P.W.D. SCHEMES v. M.A JABBAR 181

rate of U% per annum from March 6, 1980, the date of publication of the A
> notification till the date of award, namely, September 30,1983. The owner
of the land who has deprived of the enjoyment of the land by having been
parted with possession, the Act intended that the owner be compensated
by awarding an additional amount calculated at the rate of 12% per annum
on the enhanced market value for the period between the date of notifica-
tion and the date of award or date of taking possession of the land
B
--.,.:
whichever is earlier. Admittedly, possession having already been taken on
February 15, 1965, before publication of the notification under s.4(1) on
March 6, 1980 the award of additional amount for the period from March
6, 1980 to September 30, 1983, i.e., the date of making the award under s:U
is perfectly correct. In addition to other statutory benefits the owner alsoc
is entitled to the additional amount but to give it from February 15, 1965,
i.e. from the date of taking possession, though apparently earlier in point
of time mentioned ins. 23 (l·A), in effect amounts to giving retrospective
effect to Sub-s. (l·A) to s. 23 under the Amendment Act 68/84, though the
Amendment Act was prospective and the transitory provision had only
~ ~
D
retro limited activity. (182-F -H, 183-A-C]

CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 1891-92
of 1989.

From the Judgment and Order dated 8.9.88 of the Andhra Pradesh E
High Court in A No. 95 of 1987.

G. Prabhakar for the Appellant.
,,..
K.R. Nagaraja for the Respondent.
F
The following Order of the Court was delivered :

The short point that arises for consideration in these appeals is
whether the claimant-respondent in C.A. No. 1891/89 would be entitled to
the additional amount in terms of s. 23(1) of the Land Acquisition Act of
1894 (for short 'the Act') from the date of taking possession, namely, G
/ February 15, 1965. Indisputably, facts are that the notification under s. 4(1)

- of the Act was published on March 6, 1980, though possession of the land
was taken on February 15, 1965. The award under s.11 was made by the
Collector on September 30, 1983. The High Court of AP. in AS. No. 95
of 1987 while determining the compensation at Rs. 120 per sq. yard H
182 SUPREME COURT REPORTS (1995] 1 S.C.R.

A awarded solatium @ 30% on enhanced compensation. The additional
amount @ 12% per annum on the market value from the date of the
notification from March 6, 1983 till the date of award, namely, September
30, 1983 and interest @ 9% after taking possession from 15.2.1965 till
14.2.1966 and thereafter @ 15% till the date of payment.
B This court while granting leave confined the question of entitlement
of the benefits under Amending Act 68/1984. In view of the fact that the
award itself was made after the Amending Act came into force, the
claimant entitled to the benefits under sub- s.(2) of S.23, solatium on the
enhanced marked value at 30% and also interest under s.28. The only area
C of dispute is whether the claimant is entitled to additional 'amount under
s.23(1A), and if so from what date. It is contended for the State that since
possession had alrt?ady been taken prior to the Amending Act 68 of 1984
has come into force, the claimant is not entitled to the additional amount.
On the other hand it is contended for the claimant that since possession
was already taken and the owner was deprived of the enjoyment· of the
land, additional amount should be paid from the date of taking possession
since it was stated under s.23(1A) that the amount shall be payable from
the date of the award or taking possession which ever is earlier. Since
possession was taken earlier, the claimants are entitled to the additional
amount @ 12% per annum from the date of taking possession, namely,
E February 15, 1965.

On a true interpretation of sub-s. (1-A) of s.23, we are of the
considered view that the High Court is right in concluding that the
claimants are entitled to the additional amount at the rate of 12% per
F annum from March 6, 1980, the date of publication of the notification till
the date of award, namely, September 30, 1983. Sub-s. (1-A) of s.23
adumbrates that "in addition to the market value of the land, the Court
shall in every case award an amount calculated at the rate of twelve per
centum per annum on such market-value for the period commencing on
G and from the date of the publication of the notification under s.4(1), in
respect of such land to the date of the award of the Collector or the date
of taking possession of the land, whichever is earlier". In other words, the
owner of the land who has been deprived of the enjoyment of the land by
having been parted with possession, the Act intended that the owner be
compensated by awarding an additional amount calculated at the rate of
-
H 12 per centum per annum on the enhanced market value for the period
TEHSILDAR (L.A.) P.W.D. SCHEMES v. M.A. JABBAR 183

between the date of notification and the date of award or date of taking A
possession of the land whichever is earlier. Admittedly, possession having
already been taken on February 15, 1965, before publication of the notifica-
tion under s.4(1) on March 6, 1980, the award of additional amount for the
period from March 6, 1980 to September 30, 1983, i.e. the date of making
the award under s.11 is perfectly correct. In addition to other statutory B
benefits, the owner also is entitled to the additional amount but to given
award additional amount from February 15, 1965, i.e. from the date of
taking possession, though apparently earlier in point of time mentioned in
s.23 (1-A), in effect it amount to giving retrospective effect to Sub-s. (1-A)
to s.23 under the Amendment Act 68/84. Even though the Amendment Act
was prospective and the transitory provision had only retro limited activity. C

Therefore, we hold that the claimants would be entitled to additional
amount of the enhanced market value at 12% per annum from the date of
the publication of the notification under s.4(1) till the date of the award,
since possession had already been taken before the Amendment Act has
come into force. Both the appeal by the State and cross appeal by the D
claimant are accordingly dismissed. No costs.

G.N. Appeals dismissed.

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