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Supreme Court of India

UNION OF INDIAversusKISHAN CHAND AND ORS.

Citation
1996 INSC 1195
Decided
11 October 1996
Disposal
Appeal(s) allowed

Holding

The amendment benefits are not applicable retroactively; claimants are entitled only to 6% interest on the enhanced compensation and a 15% solatium.

Summary

The Union of India acquired land and initially awarded compensation of Rs.2,500 per bigha under the Land Acquisition Act, 1894. The Additional District Judge enhanced the compensation to Rs.5,000 per bigha in December 1973. On further appeal, the Delhi High Court raised the compensation to Rs.12,000 per bigha and granted the enhanced solatium, interest and additional benefits under the 1984 Amendment Act. The Supreme Court examined whether these benefits could be applied since the reference court had already decided the matter in 1973, before the amendment. It held that the amendment benefits could not be granted retroactively; the claimants are only entitled to interest at 6% on the enhanced compensation and a solatium of 15%. Consequently, the High Court’s order was modified and the appeal was allowed.

Issues considered

  • Whether the benefits of the Land Acquisition (Amendment) Act, 1984—enhanced solatium, interest and additional amounts—are applicable to a case where the reference court decided the matter before the amendment came into force.

Legislation cited

Subjects

Land acquisitionCompensationSolatiumInterestAmendment Act 1984Section 23Section 28Retroactive application

Judgment

                             UNION OF INDIA                                    A
                                   v.
                         KISHAN CHAND AND ORS.

                            OCTOBER 11, 1996.

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

        Land Acquisition Act, 1894 :

       Sections 23(1-A), 23(2) and 28--Enhanced solatium interest and ad-
ditional benefits-Held : Since the Reference Coult had decided the matter in   C
December, 1973, claimants not entitled to the said benefits-Instead they are
entitled to interest at 6% on enhanced compensation and solatium at 15%.

        CIVIL APPELLATE JURISDICTION : Civil Appeal No. 13264 of
1996.

      From the Judgment and Order dated 30.7.86 of the Delhi High Court        D
in R.F.A.No. 82/85 in C.M.P. No. 245 of 1985.

      N.N. Goswami, Ms. Sushma Suri and Ms. Padma Priya for the
appellant.

        The following Order of the Court was delivered :
                                                                               E

        Delay condoned.

        Leave granted.

      Notice on respondents 2, 3 and 4 to 20 has been returned with postal F
remarks "Address Incomplete". Notice on respondent No.22 has been
served. Under these circumstances, notice must be deemed to have been
served on them. They are not appearing either in person or through
counsel. Notice was limited only to the issue of applicability of the
provisions of Amendment Act 68 of 1984.                                    G
      Notification under Section 4[1] of the Land Acquisition Act, 1894
was published on October 24, 1961. The Land Acquisition Officer by his
award had granted compensation @ Rs.2,500 per bigha. On reference, the
Additional District Judge by his award and decree dated December 19,
1973 enhanced the compensation @ Rs.5,000 per bigha. The High Court H
                                   619
    620                  SUPREME COURT REPORTS [1996] SUPP. 7 S.C.R.
A on appeal while enhancing the compensation to Rs.12000 per bigha has
    given the benefits of the Amendment Act 68 of 1984 by enhancing the
    solatium and interest and additional amount. In view of the fact that the
    reference Court had decided the matter in December 1973 the respondents
    are not entitled to the benefits of the enhanced solatium and interest and
B   additional benefit under Sections 23 [2], 28 and 23 [1-A].

          The appeal is accordingly allowed to the above extent. Instead, the
    claimants are entitled to interest @ 6% on the enhanced compensation and
    solatium at 15%. The judgment of the High Court is accordingly modified.
    No costs.

C G.N.                                                       Appeal allowed.


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