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Supreme Court of India

THE UNION OF INDIAversusSHRI SUBE RAM AND ORS.

Citation
1996 INSC 947
Decided
26 August 1996
Disposal
Appeal(s) allowed

Holding

Claimants are entitled to the enhanced solatium and interest only if proceedings were pending before the Land Acquisition Officer or a civil court, and the High Court lacked jurisdiction to grant such enhancement after the amendment, rendering its order a nullity.

Summary

The Union of India acquired land in Delhi under the Land Acquisition Act, 1894 and awarded compensation, which was subsequently enhanced by the Land Acquisition Officer and the Additional District Judge. The High Court, relying on the 1984 Amendment Act, further enhanced the compensation by granting a 30% solatium and higher interest rates, a view later reversed by the Supreme Court in Union of India v. Raghubir Singh. Respondents filed a petition under the CPC seeking review of the High Court’s order; the High Court dismissed the review. The Supreme Court examined whether claimants are entitled to the enhanced solatium and interest only when proceedings are pending before the Land Acquisition Officer or a civil court, and whether the High Court had jurisdiction to entertain such enhancement after the amendment. It held that the High Court lacked jurisdiction, rendering its order a nullity, and restored the original 1984 order. The appeals were allowed, the enhanced award set aside, and the matter remitted without costs.

Issues considered

  • Whether claimants are entitled to the enhanced solatium and interest under the 1984 Amendment Act only if proceedings were pending before the Land Acquisition Officer or a civil court.
  • Whether the High Court had jurisdiction to entertain an application for enhancement of compensation after the amendment came into force.
  • Whether the delay in filing the special leave petition and review application warrants dismissal.

Legislation cited

Subjects

land acquisitioncompensationsolatiuminterestjurisdictionAmendment Act 68 of 1984review petitionspecial leave petitionCPCSection 23(2)Section 28

Judgment

                            THE UNION OF INDIA                               A
                                     v.
                          SHRI SUBE RAM AND ORS.

                              AUGUST 26, 1996

              [K. RAMASWAMY AND G.B. PATTANAIK, JJ.)                         B

         Land Acquisition Ac4 1894:

     Sections 2(d), 23(2) and 28-Enhanced solatium and interest under the
Amendment Act 68 of 1984-Held : Claimants would be entitled to only if       C
proceedings were pending before the Land Acquisition Officer or
Cowt-Ente1taining of application by High Cowt-Order 47 Rule 1 CPC.

         Union of India v. Raghubir Singh, [1989] 2 SCC 754, relied on.

         CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 11913-14 D
of 1996.

      From the Judgment and Order dated 24.7.94 of the Delhi High Court
in R.F.A. No. 33 of 1977.

         K. Lahiri, B.K. Prasad, S.A. Meeta and S.N. Terdol for the Appel-   E
!ants.

         Pankaj Kalra and Brij Bhushan for the Respondents.

         The following Order of the Court was delivered :

         Leave granted.                                                      F

         We-have heard learned counsel for both the parties.

       Notification under Section 4(1) of the Land Acquisition Act, 1894
(for short, the "Act") was published on March 8, 1957 acquiring the land G
for planned development of Delhi city. The Land Acquisition Officer
awarded compensation on October 3, 1974 under Section 11 of the Act.
The Additional District Judge enhanced the c.ompensation on October 5,
1976. On appeal, the High Court further enhanced the compensation on
July 24, 1984 to Rs. 10 per square yard with solatium and interest at old
rates, namely, solatium at 15% under Section 23 (2) and interest at 6% H
                                      219
    220                  SUPREME COURT REPORTS [1996) SUPP. 5 S.C.R.

A   under proviso to Section 28 of the Act on the enhanced compensation.
    Consequently, the respondents filed the petition under Sections 151 and
    152 of the Code of Civil Procedure, 1908 and the High Court by the
    impugned order dated March 22, 1985 allowed the benefits under the
    Amendment Act 68 of 1984 and awarded solatium at 30% on the enhanced
    compensation and interest under the proviso to Section 28 at 9% for one
B   year from the date of taking possession for one year and @ 15% thereafter
    till date of deposit into court on the enhanced compensation. Subsequently,
    that view was reversed by this Court in Union of India v. Raglmbir Singh,
    [1989) 2 SCC 754. The application came to be filed for review of the
    judgment and the High Court in the impugned order dated December 1,
c   1993 dismissed the review application. Thus these appeals by special leave.
    Appeal also was filed against the original appellate order with a delay of
    3379 clays.

          Shri Pankaj Kalra, learned counsel for the respondents with his usual
D   vehemence, contended that the review application came to be filed eight
    years after the order was passed by the Division Bench and five years after
    the judgment of this Court in Raghubir Singh's case. The High Court,
    therefore, was right in refusing to entertain the review petition. In view of
    the Explanation to Order 47 Rule 1, CPC, he also contended that change
    of law as interpreted by Court would not be a ground for review. There is
E   an inordinate delay in filing the special leave petition against the original
    order and the delay has not been properly explained. Therefore, the orders
    of the courts below are not vitiated by any error of law. We find no force
    in the contentions.

F       It is now settled legal position that the claimants would be entitled
  to the enhanced solatium and interest only if the proceedings were pending
  either before the Land Acquisition Officer or Court. The word "Court"
  defined under section 2( d) of the Act as on the date the Amendment Bill
  was introduced and the Act made by the Parliament, was Civil Court.
  Therefore, the question that arises is: whether the High Court has jurisdic-
G tion to entertain the application for enhancement after the Amendment
  Act 68 of 1984 came into force. It is true that if it were a case of a superior
  Court having interpreted the law and the law having become final, by Order
  47 Rule 1, CPC it could not constitute a ground for review of the judgment.
  But here is the case of entertaining the application itself; in other words,
H the question of jurisdiction of the Court. Since the appellate Court has no
                           U.O.l.. v. SUBERAM                            221

power to amend the decree and grant the enhanced compensation by way A
of solatium and interest under Section 23(2) and proviso to Section 28 of
the Act, as amended by Act 68 of 1984 it is a question of jurisdiction of
the court. Since courts have no jurisdiction it is the settled legal position
that it is a nullity and it can be raised at any stage.

       The learned counsel sought to place reliance on an order passed by       B
this Court on July 31, 1995 in SLP (C) No. 22639 of 1994 dismissing the
special leave petitions in limine. In view of the settled legal position, the
order dismissing the special leave petition in limine does not constitute res
judicata; that too in a dispute which was not even between the parties in
this case. The above decision may not stand in the way of this Court's          C
exercising the power under Article 136 of the Constitution.

      The learned counsel has contended that the Court has power to grant
or to refuse to grant the relief and if having gone into the question and
decided the same on merit, it can be said that the High Court committed
no error of law. So the order is valid in law. In view of the facts and D
circumstances, we condone the delay and entertain the appeal filed against
the original order dated March 22, 1985 and also the review petition.

      The appeals are accordingly allowed. The award of the solatium @
30% under Section 23(2) of the Act and interest @ 9% for one year from
the date of taking possession and 15% thereafter till the date of deposit       E
under proviso to Section 28 stands set aside and the original order of the
High Court dated July 24, 1984 stands restored. But in the circumstances
without costs.

G.N.                                                      Appeals allowed.


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