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Supreme Court of India

THE STATE OF PUNJABversusAVTAR SINGH AND ORS.

Citation
1994 INSC 593
Decided
9 December 1994
Disposal
Appeal(s) allowed

Holding

The 1984 Amendment Act does not apply to awards made before its commencement nor to pending appeals, so the claimants are entitled only to the original 15% solatium and 6% interest from the date of the 1972 award.

Summary

The State of Punjab acquired land in 1946 and 1965 for paramilitary purposes. An arbitrator awarded compensation in 1972, which was enhanced by the Additional District Judge in 1973 with a 15% solatium and 12% interest. The High Court modified the decree in 1986, applying the Land Acquisition (Amendment) Act, 1984, to grant a 30% solatium and higher interest rates. The State appealed, and the Supreme Court held that the 1984 Amendment Act does not apply to awards made before its commencement nor to pending appeals, and that Section 23(1A) is inapplicable to notifications issued before 30 April 1982. Consequently, the claimants were entitled only to the original 15% solatium and 6% interest from the date of the 1972 award. The Supreme Court set aside the High Court order and allowed the appeal.

Issues considered

  • Whether the Land Acquisition (Amendment) Act, 1984 applies to compensation awards made before its enactment.
  • Whether the amendment provisions apply to pending appeals in the High Court or Supreme Court.
  • Whether Section 23(1A) of the Land Acquisition Act applies to notifications issued prior to 30 April 1982.
  • Entitlement of the claimants to solatium and interest under the amended provisions.

Legislation cited

Subjects

Land acquisitionCompensationSolatiumInterestAmendment Act applicabilityRetrospective effectCivil appeal

Judgment

                           THE STATE OF PUNJAB
A
                                          v.
                                                                                .
                           AVTAR SINGH AND ORS.

                              DECEMBER 9, 1'994--

B             [K. RAMASWAMY ANDN. VENKATACHALA, JJ.]

        Land Acquisition Act, 1894: Sections 23 (1-A), 23(2) and 28-Proviso
    (As amended by Land Acquistion (Amendment) Act 68 of 1984)-
    Applicability of
c        In a land acquistion case the arbitrator awarded compensation on
    January 25, 1972. On reference the Additional District Judge, by his
    award dated 5th March, 1973 granted enhanced compensation with
    solatium and interest. The High Court disposed of the case on
    November 17, 1982 but subsequently, on claimant's application,
D   .modified the decree, applied the Land Acquistion (Amendment) Act,
    1984 and granted benefit of higher solatium and interest. State of
    Punjab preferred appeal to this Court. ·

       Allowing the appeal and setting asidflhe order of High Court, this
    Court
E
         HELD: The Land Acquistion Amendment Act 68/84 does not apply
    to an award made by the Civil Court prior to introduction of the Land
    Acquistion Amendment Bill. Section 28 proviso and Section 23 (2) as
    amended by Act 68/84 would apply to an award made by the Collector
F   or Civil Court between April 30, 1982 to September 24, 1984 and have
    no application to pending appeals in the High Court or Supreme Court.
    Equally section 23(1A) does not apply to a notification under section
    4(1) published prior to April 30, 1982. The claimants are, therefore, not
    entitled to the payment of solatium at 30% and interest at 9% and 15%
    respectively under section 23(2) of the Act and proviso to section 28 of
G   the Act on the enhanced compensation. Equally under section 28, of the
    Principal Act, claimant was entitled to only 6% interest on the
    enhanced compensation from the date of taking possession. In this case
    since lands were initially requisitioned and rent was paid till date of
    acquisition, the claimants are entitled to interest only from the date of
H   award by the Collector. [451H,452 A to CJ

                                    450
                       STATE OF PB. v. AVTAR SINGH                      451

    Union of India v. Raghubir Singh, [1989] 2 SCC 754 and K.S.                A
Paripoornan v. State ofKera/a, [1994] 5 SCC 593, relied on.

    CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9462 of
1994.

    From the Judgment and Order dated 20.7.87 of the Punjab and Haryana B
High Court in R.A. No. 23.-Cil/87 D-B.

    Ranbir Yadav and G.K. Bansal for the Appellant.

    A.T.M. Sampath and Mrs. S. Bagga for the Respondents.

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

    Heard counsel for the parties.

     Originally land admeasuring 54 Kanals 11 Marlas was requistioned by       D
the Dist. Magistrate Amritsar by a Notification published on September 9,
1946 for para-military purposes. Subsequently notification under S. 4 of the
Land Acquistion Act was published by the State Government on dated June
30, 1965. The arbitrator awarded the compensation on Janurary 25, 1972.
On reference, compensation was enhanced to Rs. 30 per square yard by the
award dated March 5, 1973 together with solatium at 15% and interest at        E
12% from the date of acquistion till payment was made on behalf of the
State. The claimants F.A.O. No. 76/73 was disposed of by the High Court
on November 17, 1982. Subsequently, an application was made under
sections 152 and 15 l of C. P. C. requesting the High Court to amend the
decree applying the Land Acquistion (Amendment) Act 68 of 1984. The            F
High Court allowed C.M. No. 2911-C/1986 on dated July 22, 1986 granting
the benefits of 30% solatium instead of 15% solatium and also interest on
9% for one. year from the date of taking possession and thereafter @ 15%
after the expiry of one year till date of payment or deposit whichever is
earlier. The order in First Appeal is accordingly modified. A Review
Petition filed was also dismissed. Thus this appeal by special leave.          G

    It is now settled law by this court in Union of India v. Raghubir Singh,
[1989] 2 SCC 754 and K.S. Paripoornan v. State of Kera/a, [1994] 5 SCC
593, the L.A. Amendment Act 68/84 does not apply to an award made by
the Civil Court prior to introduction of the L.A. Amendment Bill. Section
28 proviso and section 23 (2) as amended by Act 68/84 would apply to an H
    452                   SUPREME COURT REPORTS              [1994] SUPP. 6 S.C.R

A   award made by the Collector or Civil Court between April 30, 1982 to
    September 24, 1984 and have no application to pending appeals in the High
    Court or Supreme Court. Equally section 23(1A) does not apply to a
    notification under section 4(1) published prior to April 30, 1982. The Addi.
    Dist. Judge made an award in this case on March 5, 1973. The claimants
    are, therefore, not entitled to the payment of solatium at 39% and interest at
B   9% and 15% respectively under section 23(2) of the Act and proviso to
    section 18 of the Act on the enhanced compensation. Equally under section
    28, the Principal Act claimant was entitled to only 6% int~rest on the
    ~nhanced compensation from the date of taking possession. In this case
    since lands were initially requistioned and rent was paid till date of
    acquistion, the claimants are entiteld to interest only from the date of award
c   by the Collector. The order of the High Court dated July 22, 1986 is set
    aside, instead the respondents-claimants are entitled to 15% solatium on the
    enhanced compensation and interest at 6% on the enhanced compensation
    from the date of the award i.e. January 25, 1972. The appeal is accordingly
    allowed. No costs.

D   T.N.A.                                                      Appeal allowed.


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