COL. SIR HARINDER SINGH BRAR BANS BAHADURversusBIHARI LAL AND ORS. ETC.

       COL. SIR HARINDER SINGH BRAR BANS BAHADUR                                A
                             v.
                  BIHARI LAL AND ORS. ETC.

                             MARCH 18, 1994

         [K. RAMASWAMY AND N. YENKATACHALA, JJ.]                                B

      Punjab Security of Land Tenures Act, 1953-Sections 18,
18(4)--Tenanted lancf-lnterest of Land Owne1~Subsequent to deposit of
purchase p1ice or first instalment by the tenant-Held: Tenant becomes
deemed owner and the landlord ceases to have any interest in the lan~nless      c
the deposit stayed by competent auth01ity or Court.

       Punjab Security of Land Tenures Act, 1953-Section 18(4)(c)-Legis-
lative intendment-Held: Not to postpone the right of the tenant to become
the owner of the land comprised in his tenancy.
                                                                                D
     Section 18(2)(3}-Expression market value and statutory value of the
land-Difference between.

      Land Acquisition Act, 1894 (as existing prior to the amended Act
1984~Sections 4(1),    17(i), II, 16, 18 and 31(2) Proviso J-Tenanted land
                                                                                E
worth purchase by tenant under Tenures Act-Compensation fol"-Entitlement
of Landowner prior to tenant becoming deemed ownel"-Held: entitlement to
claim is limited to the nature of interest in land, hence Landowner entitled
to market value with solatium and interest thereon lilnited to the aniount vf
purchase price and not to damages-Entitlement of Landowner subsequent
to tenant's becoming deemed owner--Held: Landlord having no interest in         F
land, not entitled to any compensation-Therefore the Landowner liable to
pay the amount of compensation to tenant.

      Respondent a tenant of 246 kanals 18 Marlas of land got right to
purchase the tenanted land from the Landowner (Appellant) u/s 18 of G
Punjab Security of Land Tenures Act, 1953. He made application for
purchase. The tenant's right to purchase the land was recorgnized on
March 3, 1963 and the tenant deposited the first instalment of the pur-
chase price within time on March 12, 1963 and thus became deemed owner.

      In the meanwhile on August 3, 1961 i.e. before the tenant becoming H
                                    87
    88                    SUPREME COURT REPORTS                 [1994] 3 S.C.R.

A deemed owner, 25 kanals 2 Marlas land out of the purchased land was
    acquired under Land Acquisition Act 1894. Compensation for the acquired
    land was determined and the whole amount was paid to the tenant.

          The landowner claimed the compensation amount and appealed to
    Addi. District Judge who held that landlord alone was entitled to the whole
B   compensation amount because the land was acquired before the tenant
    could become its deemed owner. Against the Judgment, tenant appealed to
    the High Court. The Single Judge partly allowing the appeal, apportioned
    the compensation amount between the landowner and the tenant in the
    ratio of 3:1, relying on Section 18(3) of Tenure Act which determined
C   interest of the landowner and tenant fixed at three-fourth and one-fourth
    of the value of the land u/s 18(2). In the LPA filed by the tenant, the
    Division Bench held the entitlement of the landowner to the compensation
    amount as purchase price by the tenant.

          Subsequent to tenant's becoming the deemed owner, 151 Kanals 2
D marlas of the land out of the purchased land was again acquired under
    L.A. Act in 1968 and compensation thereof, in its entirety was paid to the
    landowner.

          On reference for enhanced compensation and on dispute as to
E whether the tenant or the landlord was entitled for compensation amounts,
    the Addi. District Judge, held that as the tenant had become the deemed
    owner on 12.3.1963 after payment of the first instalment, was entitled to
    the whole amount of the compensation. Landowner preferred appeal
    before the High Court which was dismissed.

F         C.A. No. 540/1980 is with regard to the land acquired in 1961 and
    C.A. No. 3288/1979 is regarding land acquisition in 1968. In the appeals
    questions for consideration before the court were :

          (i) Whether the landowner of the land, which could be purchased by
G a tenant u/s 18 of Tenure Act, ceases to have any interest in the land after
    depositing of the purchase price or the first instalment thereof under
    Section 18(4) by the tenant.

           (ii) Whether a landowner would be entitled to compensation awarded
    for a tenanted land when it is acquired under Land Acquisition Act, before
H   the tenant of such land becomes its deemed owner u/s 18(4) of Tenure Act,
                   IIARINDER SINGH i·. BIHARI LAL                        89

and if so \\'hat can be regarded as his entitlement in the amount of such      A
con1pensation.

      The contention of the appellant regarding the first question was that
the tenant becomes .the deemed owner only when he deposits higher pur-
chase price determined in the appeal and in the revision filed by the
appellant, and not merely by depositing the purchase money or first            B
instalment thereof.

       Contention reg!lrding second question was that even if the tenant
was entitled to purchase the land under Tenure Act, the landowner is
entitled to three-fourth of compensation amount.
                                                                               c
      Dismissing the appeals, this Court

     HELD : 1.1 : A owner of land, which could be purchased by a tenant
under Section 18 of the Tenures Act ceases to be its landowner and
consequently ceases to have any interest in such land, on such tenant          D
depositing according to Sub-Section (4) thereof, its purchase price or first
instalment of its purchase price as fixed by Assistant Collector and becom-
ing its deemed owner as envisaged thereunder. If the deposit is stayed by
competent authority or ~ourt, such dejiosit could not have made the tenant
a deemed owner. (100-E-F]
                                                                               E
      1.2. The landowner has no right to claim compensation payable for
the land acquired subsequent to the tenant becoming deemed owner, under
the Land Acquisition Act, in as much as he has lost all his interest in that
land well before the acquisition proceedings for acquiring that land under
the Land Acquisition Act had commenced. [97-E]
                                                                               F
      13. The entitlement of the tenant to purchase the land comprised in
his tenancy and becoming owner should be decided according to the
relevant provisions of the Tenures Act and not with reference to pre-
emptors right of ownership for property under pre-emption decree. (99-F]
                                                                               G
      Bis/tan Singh & Ors. v. Khazan Singh & Anr., AIR (1958) SC 838 and
Deonandan Prasad Singh v. Ramdhari Chowdhri & Ors., AIR (1916) PC
1979, distinguished.

      1.4. The object oftenancy legislation is to make the tenant, the tiller of
the land, its owner. Clause (c) of Sub- Section (4) of Section 18, makes clear H
    90                     SUPREME COURT REPORTS                   [1994J 3 S.C.R.

A   that the intendent of the Act is not to postpone the right or the tenant to
    become the owner of the land comprised in his tenancy on account of non·
    payment of purchase price, even if higher purchase price is fixed hy the
    appellant or revisional authority. The beneficial provisions which are made
    thereunder to confer ownership rights on tenants, cannot received a con-
    struction which results in either postponing or defeating the right of owner·
B ship conferred on tenants in respect of their tenanted lands. [100-8-D]
                                                                                     <
         2.1. If a tenanted land which its tenant was entitled to purchase
    under Section 18 of the Tenures Act, did vest in the state by reason of its
    acquisition under the Land Acquisition Act before he becomes its deemed
C owner as envisaged under Sub-Section (4) of Section 18 of the Tenures Act,
    the land owner of that tenanted land could have made a claim for compen-
    sation awardable therefor under the Land Acquisition Act and his entitle-
    ment out of the said compensation could only be that falling in the
    component of compensation i.e. market value of that land together with
    solatium and interest limited to the amount of purchase price which he
D was entitled to get for the land under Section 18 of the Tenures Act and
    nothing more or less. (104-E-F]

          2.2. Every person entitled to obtain any or all the components of the
    compensation, becomes entitled to make a claim as regards his interest in
E the land. In case of land acquisition prior to the tenant became its deemed
    owner, land owner could claim the component of compensation or any
    portion thereof according to the nature of interest possessed by him prior
    to the acquisition and vesting. The landowner, thus is entitled to only the
    component of compensation i.e. market value with solatium and interest
    thereon. But his nature of interest is only the purchase price payable for
F purchase under the Act, not the whole component of compensation i.e.
    market value. [102-A-B]

           2.3. The market value of the land is different from the statutory value
    of the land and both cannot be regarded as the same. Sub Sections (2) & (3)
G   of Section 18 of Tenure Act shows that the value of the tenanted land could
    only be three-fourth of the average value of the neighbouring land during 10
    years preceding the date of making of the application by the tenant for
    purchase. This is the statutory measure to find out the purchase price of
    tenanted land and not the supposed market value. (103-F-H; 104-Al

H         2.4. In the facts of the case with regard to the land acquired prior to
                     HARINDER SINGH v. BIHARI LAL                       91

tenant becoming its deemed owner, the land owner has become entitled to       A
get, out of the compensation awarded for the said land under the Land
Acquisition Act, an amount equivalent to its purchase price. If that amount
is not taken by the landowner from the deposits made by the tenant, as the
purchase price of that land, under the Tenures Act, or out of the compen-
sation awarded for that land under the Land Act1uisitio11 Act, LRs of the
landowner would be entitled to get the same either from the compensation
                                                                              B
or from the tenant. [105-B-C]

     3. According to third proviso to Sub-Section (2) of Section 31 of Land
Acquisition Act, the landowner is liable to pay the amount received as
compensation for the acquisition of the land subsequent to tenant becom-      C
ing the deemed owner, to the tenant. [105-G-H]

      4. In view of the death of the landowner and his LRs prosecuting the
case, the amount liable lo be paid by the landowner, shall be regarded as
a debt owned by the land owner to the tenant and the same being payable
from the former to the latter, shall be a charge on the property of the       D
deceased, the landowner, in the hand of his LRs. This judgment is to be
regarded as decree to be got executed through appropriate Court. [106-CJ

        CIVIL APPELLATE JURISDICTION : Civil Appeal No. 540 of
1980.
                                                                              E
     From the Judgment and Order dated 20.8.79 of the Punjab &
Haryana High Court in L.P.A. No. 75 of 1977.

                                   AND

        Civil Appeal No. 3288 of 1979.
                                                                              F

     From the Judgment and Order dated 2.5.79 of the Punjab & Haryana
High Court in R.F.A. No. 345 of 1971.

     Rajinder Sachhar, S.K. Mehta, Dhruv Mehta and Aman Vachher for G
the Appellant.

     M.L. Verma, N.D. Garg, Yrs. Nisha Bagchi, Ms. Dania Pradhan, Ms.
Indu Malhotra and Ms. Laxmi Arvind for the Respondents.

        The Judgment of the Court was delivered by                            H
    92                    SUPREME COURT REPORTS                  [1994] 3 S.C.R.

A        VENKATACHALA, J. Bihari Lal was a tenant of 246 Kanals 18
    Marlas of land of the village Ballabhgarh in erstwhile Punjab State, now in
    Haryana State. He got a right to purchase that land from its landowner,
    Harinder Singh, since such right was conferred upon him by Section 18 of
    the Punjab Security of Land Tenures Act, 1953, - 'the Tenures Act' for
    short. That on March 2, 1961, he made an application for such purchase
B before the Assistant Collector of First Grade Ballabhgarh - the authority
    empowered to decide on the right to purchase and determine the purchase
    price. The Assistant Collector granted that application by his order dated
    March 3, 1963 recognising the tenant's right to purchase 224 Kanals 18
    Marlas of the said land and determining its purchase price, besides order-
c ing deposit of that purchase price, either in a lump sum or in four equal
    six monthly instalments, so that the same may be paid to the landowner.
    The tenant who chose to deposit the first instalment of that purchase price,
    deposited the same on March l2, 1963, well before the time allowed
    therefor. The said order of the Assistant Collector made, recognising the
    right of purchase of the land by the tenant, became final, when the
D
    Financial Commissioner by his order dated December 9, 1965, dismissed
    the Revision Petition of the landowner questioning the tenant's right of
    purchase, in that, that order of the Financial Commissioner was not got set
    aside by the landowner from any superior forum. However, the order of
    the Assistani Collector dated March 3, 1963, relating to purchase price,
E   which was required to be redetermined by appellate remand order of
    Collector, as .affirmed by the revisional order dated December 9, 1965 of
    the Financial Commissioner, was indeed, redetermined by the Assistant
  Collector by his order dated September 20, 1968. But, such redetermina-
  tion of the purchase price was confined to the portion of the said land
  which was not by then acquired under the Land Acquisition Act, 1894 -
F
  'the LA Act' for short. However, the Commissioner, by his order dated
  August 19, 1969, made in second appeal arising from the said order of the
  Assistant Collector, held that the rate of purchase price of portion of land
  redetermined by the Assistant Collector shall extend to the whole land, the
  purchase of which was allowed by the Assistant Collector, by his earliest
G order dated March 3, 1963.

          In the meanwhile, that on August 3, 1961 a notification under Section
    4(1) of the LA Act had come to be published in Haryana State Gazette,
    proposing acquisition of 25 Kanals 2 Marlas out of the said 224 Kanals 18
H   Marlas of land, which had been allowed to be purchased by the tenant.
               HARINDERSINGH v. BIHARILAL[VENKATACHALA,J.)                        93

        according to Assistant Collector's order dated March 3, 1963. Possession        A
        of the land proposed for acquisition was also taken by the Land Acquisition
        Collector (LA Collector) from the tenant on October 14, 1961, resulting in
        vesting of that land in the State of Haryana, in that, such possession was
        taken under Section 17(1) of the LA Act. Subsequently, on October 14,
        1961, the LA Collector, who made an award under Section 11 of the LA            B
        Act, determined the compensation payable for the acquired land of 25
        Kanals 2 Marlas as Rs. 26,271.00 and paid the whole compensation to the
        tenant. The landowner, who had claimed the whole amount of compensa-
        tion, feeling aggrieved by the award of the LA Collector and the paymeni
        of whole compensation to the tenant, made an application to the LA              C
        Collector under Section 18 of the LA Act, for making a reference to the
        Court of Additional District Judge, Gurgaon for its decision under Section
        30 of the LA Act. That Court, by its judgment and decree dated October
        29, 1965 held that the landowner alone was entitled to the whole of
        compensation awarded for the said land by the LA Collector, on its view
        that the acquired land had vested in the State Government before the            D
        tenant could become its deemed owner under sub-section (4) of Section
        18 of the Tenures Act by depositing its purchase price, as allowed by the
        Assistant Collector by his order dated March 3, 1963, while the landowner
        was still its owner. In the tenant's first appeal preferred against that
        judgment and decree before the High Court of Punjab & Haryana, a                E
        learned single Judge of that Court allowed that appeal partly, on his view
        that the compensation awarded for the acquired land was apportionable
        between the landowner and the tenant in the ratio of 3:1, thinking that the
        amount so apportionable to the landowner would be more or less the
        purchase price payable for the land by the tenant under sub-sections (2)        F
    •   and (3) of Section 18 of the Tenures Act. But in the Letters Patent Appeal
        preferred by the tenant in the same Court against the judgment and decree
        of learned single Judge, a Division Bench by its· judgment and decree dated
        August 20, 1979 rendered following its earlier judgment in a, similar matter,
        allowed that appeal partly, holding that the landowner's entitlement to         G
        compensation awarded for the said land acquired under the LA Act, had
        to be limited to the amount of compensation which was liable to be paid
        as purchase price by the tenant, as determined under sub-sections (2) and
,_ y-
        (3) of Section 18 of the Tenures Act. It is that judgment and decree of the
        Division Bench of the High Court which is the subject of present Civil
                                                                                        H
     94                   SUPREME COURT REPORTS                (1994] 3 S.C.R.

A Appeal No. 540 of 1980.

           After the said acquisition, that on September 8, 1966, another
    notification under section 4(1) of the LA Act had come to be published in
   Haryana State Gazette, proposing acquisition of 151 Kanals and 2 Marlas
B of land out of 224 Kanals 4 Marlas of land which had been allowed to be
   purchased by the tenant according to Assistant Collector's order dated
   March 3, 1963 on the purchase application made by the tenant and for the
   purchase of which the first instalment of purchase price had come to be
   deposited by the tenant on March 12, 1963. The LA Collector determined
   the compensation payable for the land so acquired in a sum of Rs.
C 3,24,133.25 by his award dat1'd April 4, 1968 made under Section J1 of the
   LA Act. Pursuant to that award, the LA Collector took possession of the
   land so acquired on April 8, 1968, on which date the acquired land vested
   absolutely in the State of Haryana by operation of Section 16 of the LA
   Act. Rs. 3,24,133.25, the amount determined as compensation for the
D acquired land by the award of the LA Collector, was also paid by him in
   its entirety to the landowner, Harinder Singh. On references received by
   the Court of the Additional District Judge, Gurgaon under Section 18 of
   the LA Act, to decide, on the enhanced compensation claimed and on the
   dispute as to whether the tenant or the landowner of the acquired land was
   entitled to get the compensation payable for that land, that Court by its
E judgment and decree dated February 15, 1971, while enhanced the com-
  pensation payable for the acquired land held that the entire amount of
  compensation payable for the acquired land was liable to be paid to the
  tenant-Bihari Lal, in that he had become the deemed owner of the acquired
  land on March 12, 1963 when he deposited the first instalment of the
F purchase price pursuant to the order dated March 3, 1963 of the Assistant
  Collector made on his purchase application. According to that court when
  once the tenant, by making the deposit of first instalment of the purchase
  price on March 12, 1963, became the deemed owner of the tenanted land
  from that day because of the legal fiction created under sub-section (4) of
  Section 18 of the Tenures Act, redetermination of purchase price of land,
G if any, made by the authorities under the Tenures Act could not bring about
  any adverse effect on the deemed ownership of land got by the tenant.
  However, the landowner, Harinder Singh, preferred Regular First Appeal,
  RFA No. 345 of 1971 against the said judgment and decree of the Court
  of Additional District Judge, Gurgaon before the High Court. But, a
H Division Bench of the High Court dismissed that appeal by its judgment
            HARINDER SINGH v. BIHARI LAL [VENKATACHALA, J.j                     95

    and decree dated May 2, 1979. It is that judgment and decree of the A
    Division Bench of the High Court, which is the subject of present Civil
    Appeal No. 3288 of 1979.

          Questions requiring our consideration in deciding the present ap-
    peals, having regard to the facts which have given rise to them, could be
    ~~~:                                                                              B

             (i)   Does a landowner of land which could be purchased by a
                   tenant under Section 18 of the Tenures Act, cease to be its
                   landowner and consequently cease to have any interest in it,
                   on such tenant depositing according to sub-section (4) there-      C
                   of, its purchase price or first instalment of its purchase price
                   fixed by the Assistant Collector, and becoming its deemed
                   owner as envisaged thereunder.

             (ii) If a land which its tenant was entitled to purchase under
                  Section 18 of the Tenures Act had come to be vested in the          D
                  State by reason of its acquisition under the LA Act before
I                 such tenant became its deemed. owner as envisaged under
J                 sub-section (4) of Section 18 of the Tenures Act, could the
                  landowner of that land have made a claim for payment of
                  compensation payable therefor under the LA Act and if such          E
                  a claim had been made, what could be regarded as his
                  entitlement in the amount of such compep.sation.

          We shall now proceed to consider the said questions in the light of
    contentions of learned counsel raised, for and against them.
                                                                                      F
          11.e : Question (i) :

          Since this question pertains to the result that flows from the exercise
    by a tenant of his right to purchase the tenanted land from its landowner
    under Section 18 of the Tenures Act, need to consider it on the basis of          G
    the provisions in that Section, arises. The provisions insofar as they bear
    on the question are, therefore, reproduced :

            "18. Rights of certain tenants to purchase land. - (1) Notwithstanding
            anything to the contrary contained in any law, usage or contract,
            a tenant of a landowner other than a small landowner --                H
    96                        SUPREME COURT REPORTS              [1994] 3 S.C.R.

A               (i) who has been in continuous occupation of the land com-
                prised in his tenancy f0r a minimum period of six years, or
                                                                                   ,.
            shall be entitled to purchase from the landowner the land so held
            by him .......................... ..
B
                Provided ............................ .

                Provided fruther ........................... .

                (2) A tenant desirous of purchasing land under sub-section (1)
c           shall make an application, in writing to an Assistant Collector of
            First Grade having jurisdiction over the land concerned, and the
            Assistant Collector, after giving notice to the land-owner and to
            all other persons interested in the land and after making such
            inquiry as he thinks fit, shall determine the value of land which
D           shall be the average of the price obtaining for similar land in the
            locality during 10 years immediately preceding the date on which
            the application is made.

               (3) The purchase price shall be three-fourths of the value of
            land as so determined.
E
                (4) (a) The tenant shall be competent to pay the purchase price
            either in a lump sum or in six monthly instalments not exceeding
            ten in the manner prescribed.

               (b) On the purchase price or the first instalment thereof, as the
F           case may be, being deposited, the tenant shall be deemed to have
            become the owner of the land, ........................ ..

                (c) If a default is committed in the payment of any of the
            instalments, the entire outstanding balance shall, on application by
            the person entitled to receive it, be recoverable as arrears of land
G
            revenue ...................................."

          The language employed in sub-section (1) of Section 18, as could be
    seen, is unequivocal as regards entitlement of a tenant to purchase land
    comprised in his tenancy from his landowner. A tenant desirous of pur-
H   chasing land, according to his entitlement under sub-section (1), if makes
           I
           I

                       HARINDERSINGH v. BIHARILAL[VENKATACHALAJ.]                        97

               an application therefor before the Assistant Collector of First Grade having A
               jurisdiction over such land as required by sub-section (2) thereof, such
               Assistant Collector is enjoined thereunder to determine the value of land
               comprised in the tenancy after notice to the landowner and others who may
               be concerned with it. Further, according to that sub-section the value to
               be determined for such laud is required to be only the average of the price
                                                                                             B
               obtaining for similar laud in the locality during ten years immediately
               preceding the date on which application for its purchase was made. When
               the value of the tenanted land is so determined as required by sub-section
'              (2) thereof, its purchase price payable by the tenant would be three-fourth
               of such value as specified in sub-section (3) thereof. Clause (a) of sub-sec-
               tion (4) thereof entitles the tenant to pay the purchase price either in a      c
               lump sum or instalments to be fixed in that behalf. Then, clause (b) of
               sub-section (4) of Section 18, declares in unequivocal terms that the tenant
               shall be deemed to become the owner of the land on the purchase price
               or the first instalment thereof, as the case may be, being deposited. When
               a tenant becomes a deemed owner of the land comprised in his tenancy by D
               deposit of either the purchase price or the first instalment thereof, because
               of the legal fiction created under clause {b) of sub-section (4) of Section
               18, it follo\VS as a necessary corollary, that such land's landowner till
               deposit can no longer be regarded as its landowner. In other words, from
               the moment the tenant deposits the purchase price or the first instalment
               thereof payable towards the purchase of the land comprised in his tenancy,      E
               the landowner of that land ceases to have the interest which he had in it
               as such landowner till then, inasmuch as, no provision is found in the
               Tenures Act which allows him to continue to have thereafter any kind of
               interest whatsoever in that land. Moreover, since sub-section (5) of Section
               18 entitles the landowner to make an application merely for recovery from       F
               the tenant of purchase money payable in instalments, as arrears of land
               revenue, it is made obvious that the instalments· of purchase money payable
               by tenant for the land comprised in his tenancy is not even made a charge
               on that land, to avoid any claim of interest' by such landowner, against such
               land.
                                                                                               G
                     That a tenant becomes a deemed owner of land comprised in his
               tenancy by deposit of either the purchase money or first instalment thereof
               as declared by clause (b) of sub-section (4) of Section 18, was not disputed
    ..--       by learned counsel for the appellant. It was, however, strenuously argued
               for the appellant that the tenant cannot become the deemed owner by H
    98                    SUPREME COURT REPORTS                   [1994) 3 S.C.R.

A   deposit of the purchase money or first instalment thereof as determined by
    the Assistant Collector, but becomes such deemed owner when he deposits
    the higher purchase price determined in appeal and revision filed by the
    appellant before the authorities. He sought to obtain support for that
    argument from the judgment of this Court in Bishan Singh & Others v.
    Khazan Singh & Another, A.i.R. (1958) SC 838 and the judgment of the
B   Privy Council in Deonandan Prashad Singh v. Ramdhari Chowdhri and
    Others, A.i.R. (1916) PC 179.

           We are unable to find any merit in the argument advanced on behalf
    of the appellant. Neither the judgment of Privy Council nor the judgment
C   of this Court from which support was sought for the argument, can furnish
    such support.

           In Deonandan Prashad Singh's case decided by the Privy Council, the
    facts were these : A sub-ordinate Judge had made a pre-emption decree
D   in respect of certain property. On the basis of that decree the pre-emptors
    were put in possession of that property from 1900 to 1904. That pre-emp-
    tion decree when was set aside by the High Court, the original purchaser
    of that property regained its possession and was in such possession between
    1905 and 1909. Thereafter, in 1908, when the Privy Council reverse the
    decree of the High Court and made a decree recognising the pre-emptor's
E   right to purchase the property at a higher purchase price than that fixed
    by the Sub-ordinate Court, the pre-emptors, paid the extra price in 1909
    and took possession of the property from the original purchaser. In this
    situation, the pre-emptor sought to get mesne profits in respect of the
    property from its original purchaser between 1904 and 1909, the period
F   during which he was in its possession. Whether the. pre-emptors were
    entitled to mesne profits for the period between 1905 and 1909, (the period
    during which the judgment of the High Court was in force), was the
    question that again came up for decision by the Privy Council. The Privy
    Council held that the pre-emptors were not entitled to get me.me profits of
    the property for the period between 1904 and 1909, on its reasoning :
G
            "It therefore follows that where a suit is brought it is on payment
            of the purchase money on the specified date that the plaintiff
            obtains possession of the property, and until that time the original
            purchaser retains possession and is entitled to the rents and profits.
H           This was so held in the case of Deokinandan v. Sri Ram, l.L.R. 12 ·
I
I

           HARINDER SINGH v. BIHARI LAL [VENKATACHALA, J.]                  99

            ALL 234 (K), and there Mahmud, J ., whose authority is well A
            recognized by all, stated that it was only when the terms of the
            decree were fulfilled and enforced that the persons having the right
            of pre-emption become owners of the property, that such owner-
            ship did not vest from the date of sale, notwithstanding success in
            the suit, and that the actual substitution of the owner of the pre-
            er11ptcd property dates with possession under the decree.n ·
                                                                                  B

            In Bishan Singh's case this Court had to decide as to when a decree-
    holder in a conditional pre-emption decree, becomes the owner of the
    property in the place of the original vendee of such property. On the
    authority of the judgment of the Privy Council in Deonandan Prashad's         c
    case, it was held by this Court that the pre-emptor is not substituted in the
    place of the original vendee till conditions laid down in the decree were
    fulfilled. We are unable to understand, how the said judgments of the Privy
    Council and this Court, which decided on the question of pre-emptors
    becoming owners of lands in the places of original vendees on the well D
    settled authority of pre-emptors becoming owners of lands in the place of
    original vendees according to pre-emption decrees, could support the
    argument of learned counsel for the appellant, that under the Tenures Act
    the tenant becomes the owner of the tenanted land when enhanced pur-
    chase price if any, is deposited or paid to landowner. The argument
    overlooks the fact that purchase price and its first instalment to be E
    deposited by the tenant under the Tenures Act is that fixed by the Assistant
    Collector, for the tenant to become its deemed owner. Question of entit-
    lement to possession of tenanted land cannot be disputed while the ques-
    tion which arises in pre-emption decrees is the time at which the
    pre-emptors become entitled lo such possession. As to when the tenant F
    who is entitled lo purchase land comprised in his tenancy becomes the
    owner has, therefore, to be decided according to what is provided for in
    the relevant provisions of the Tenures Act itself and not with reference to
    pre·emptors right of o\vnership to property under pre·emption decrees.
    Relevant provisions in the Tenures Act, to which we have already adverted
    are contained in Section 18 thereof and could be even reiterated to avoid G
    ambiguity. Clause (a) sub-section (4) of Section 18 gives the option to the
    tenant to deposit purchase price or first instalment thereof as fixed by the
    Assistant Collector. Because of the legal fiction created by clause (b) of
    sub-section (4) of that Section, when once the purchase price or the first
    instalmen~ of purchase money, as specified by th~ Assistant Collector, is H
                                                                                    )

     100                    SUPREME COURT REPORTS                 (1994] 3 S.C.R.

A deposited, such tenant becomes the deemed owner of the land comprised
   in his tenancy. Hence, there can arise no room for any doubt that a tenant
   who is in possession of the property, because of the deposit of purchase
   price he makes, becomes the absolute owner, displacing the landowner's
   interest in such land, possessed till then. Clause (c) of sub-section (4) of
   Section 18 when states that the default on the part of the tenant in making
B instalments of purchase price, will allow the person entitled to the same to
   recover it as arrears of revenue, it becomes clear that the intendment .of
   the Act is not to postpone the right of the tenant to become the owner of
   the land comprised in his tenancy on account of non-payment of purchase
   price even if a higher purchase price is fixed by Appellate or Revisional
c  Authority. Moreover, when the object of tenancy legislation, as well settled,
   is to make the tenant, the tiller of the land, its owner, the beneficial
   provisions which are made thereunder to confer ownership rights on
   tenants, cannot receive a construction which results in either postponing
   or defeating the right of ownership conferred on tenants in respect of their
D tenanted lands. As the acceptance of the argument of the learned counsel
   of the appellant is bound to have the effect of defeating the object of the
  provisions in the Tenures Act avowedly made by the legislature for confer-
  ring right of ownership of land on its tenants, we find it difficult to accept
  it. However, it is made clear that if there was a deposit of purchase price
  or first instalment thereof made by a tenant when the operation of the
E order relating to fixation of purchase price was stayed by competent
  authority or court, such deposit could not have made the tenant a deemed
  owner. Our answer to the question under consideration, therefore, is that
  a landowner of land which could be purchased by a tenant under Section
  18 of the Tenures Act ceases to be its landowner and consequently ceases
  to have any interest in such land, on such tenant depositing according to
F
  sub-section (4) thereof, its purchase price or first instalment of its purchase
  price as fixed by Assistant Collector and becoming its deemed owner as
  envisaged thereunder.

           Re : Question (ii).
G
           Since this question pertains to the landowner's entitlement of com-
    pensation awardable for tenanted land acquired under the LA Act before
    its tenant becomes its deemed owner under Section 18 of the Tenures Act,
    it requires to be answered on the basis of the relevant provisions both in
H   the LA Act and the Tenures Act. That a landowner loses every interest he
                HARINDERSINGH v. BIHARI LAL[VENKATACHALA,J.]                    101
..,,._
         had in respect of a land when its tenant becomes its deemed owner, as A
         envisaged under sub-section (4) of Section 18 of the Tenures Act, is
         J?Ointed out by us already while answering question (i). What therefore,
         requires our consideration in dealing with the present question is, whether
         a landowner would be entitled to compensation awarded for a tenanted
         land when it is acquired under LA Act before the tenant of such land
         becomes its deemed owner under sub-section ( 4) of Section 18 of the
                                                                                     B
         Tenures Act, and if so, what can ·be regarded as his entitlement in the
         amount of such compensation.

               Since we are concerned with the compensation awardable for a land
         acquired under the L.A. Act before its amendment by Central Act 68 of         C
         1984, compensation awardable for land acquired under the unamended
         L.A. Act, could be said to comprise of the following components :-

              (i) The market value of the land at the date of publication of the
                  Notification under Section 4(1) of the L.A. Act.
                                                                                       D
              (ii) The damage sustained by a person interested by reason of taking
                   of standing crops or trees which may be on the land at the time
                   of Collector's taking possession thereof.

              (iii) The damage, if any sustained by the person interested at the time E
                    of Collector's taking possession of the land by reason of severing
                    of such land from his other land.

              (iv) The damage, if any, sustained by the person interested at the
                   time of Collector's taking possession of the land, by reason of
   •               the acquisition injuriously affecting his other property, movable   F
                   or immovable, in any other manner,· or his earnings.

              (v) If in consequence of the acquisition of the land by the Collector
                  the person interested is compelled to change his residence or
                  place of business, the reasonable expenses, if any, incidental to G
                  such change) and

              (vi) The damage, if any, bona fide resulting from dimunition of the
                   profits of land between the time of the publication of the decla-
                  ration under Section 6 and the time of Collector's taking posses-
                  sion of the land.                                                    H
     102                   SUPREME COURT REPORTS                 [1994] 3 S.C.R.
                                                                                   ·~

A         We could add to the component of the market value of the land in
    item (i) above, 15% being the consideration payable for the compulsory
    nature of acquisition, that is, solatium. Since interest becomes payable for
    delayed payment of compensation after the Collector takes possession of
    the acquired land such- interest, if accrued, has to be added to each
B component of compensation. The compensation a\vardable since comprises
    of the said components every person entitled to obtain any or all the
   components of the compensation, becomes entitled to make a claim as
   regards his interest in the land and the component of compensation
   awardable thereto. There cannot be any doubt nor was it disputed that the
   landowner possesses certain interest in the acquired tenanted land, if it is
c acquired under the L.A. Act and vested in State before its tenant becomes
   its deemed owner under sub-section ( 4) of Section 18 of the Tenures Act.
   Landowner could claim the component of compensation or any portion
   thereof according to the nature of interest possessed by him prior to the
   acquisition and vesting of the land under the L.A. Act. The composition
D of each of the components of compensation adverted to by us are seen, the
   landower can make no claim for the components of compensation under
   items (ii) to (vi), in that, those components of compensation could become
   payable only to a tenant who would have suffered damages awardable
   thereunder. However, if regard is had to the nature of interest of land-
E owner comprised in the tenancy of a tenant, a claim could be made by him
  for the component of compensation of market valne in item (i) and
  solatium and interest payable thereon. The question which, then, needs our
  considention is, whether the landowner, who, as owner of the tenanted
  land before its acquisition and vesting under the L.A. Act, could claim the
F whole component of compensation in item (i) and solatium and interest
  awardable thereon. Here, comes the nature of interest which the landowner
  possessed in the tenanted land at the time of its acquisition and its vesting
  in the State under the 'L.A. Act. It cannot be gain-said, that a landowner
  of tenanted land, to the purchase of which a tenant had become entitled
G under Section 18 of the Tenures Act, could be anything other than the
  purchase price payable for purchase of it under the Act, particularly, when
  a tenant had made an application for such purchase availing the right
  conferred upon him in that regard under section 18 of the Tenures Act. If
  at the time of acquisition and vesting of the tenanted land under the L.A.
  Act, the landowner's entitlement from the tenant was such land's purchase
H
    \
               HARINDER SINGH v. BIHARI LAL [VENKATACHALA, J.]                   103

        price, his interest, having regard to its nature, could only be in the com- A
        ponent of compensation consisting of market value of the land adverted to
        in item (i) and solatium and interest payable thereon and nothing beyond
        it. Therefore, such a landowner could only lay his claim for the amount of
        the purchase price out of the component of such compensation and limited
        to the amount of purchase price. However, it was contended on behalf of B
        the appellant that the landowner would become entitled to three-fourth of
        the amount of compensation awardable for the land acquired even though
        the tenant was entitled to its purchase under the Tenures Act. In support
        of the submission, reliance was placed on the observations made by a
        learned single Judge of the High Court in his judgment- the subject-matter
        of one of the present appeals, which read, thus :-
                                                                                        c
                "! think the Punjab Security of Land Tenures Act itself appears to
                afford some guidance in the matter. Section 18(3) prescribes the
                purchase price to be paid by the tenant at three-fourths of the
                value of the land as determined by Section 18(2). It mean.s that the    D
                interest of the landowner is assessed at three-fourths and the
                interest of the tenants is assessed at one-fourth. The value of the
                land as determined under Section 18(2) may be more or less than
                the value of the land on the date of the notification of acquisition.
                But that makes no difference. What is important is that the inter-      E
                ests of the landowner and the tenant are fixed at three-fourths and
                one-fourth of the value of the land. On that basis, I direct the
                apportionment of the compensation between the appellant and the
                first respondent in the ratio of 1:3."

        The said observation of the learned single Judge, it must be said, with great   F
        respect to him, is based on misconstruction of the provisions of sub-sec-
        tions (2) and (3) of Section 18 of the Tenures Act. the value of the land
        envisaged under sub-section (2) is not the market value of the land but the

-       value of the land which should be the average price of land in the neigh-
        bourhood during 10 years preceding the date of making of the application
        by the tenant for purchase of land. What sub-section (3) says, is that the      G
        purchase price of the tenanted land must be three-fourth of the value of
        the land determined under sub-section (2), which means that the value of
        the tenanted land could only be three-fourth of the average value of the
        neighbouring land during ten years preceding the date of making of the
        application by the tenant for purchase. Here is statutory measure required      H
                                                                                   '
                                                                                  i'

    104                  SUPREME COURT REPORTS                  [1994] 3 S.C.R.

A   to be adopted to find out the purchase price of tenanted land and not the
    supposed market value of that land as on the date of making of the
    application for purchase. If that be so, we are unable to understand how
    the market value of the land which will be far different from the statutory
    value of the land could be regarded as the same, as has been done by the
    learned single Judge. Hence, the contention raised on behalf of the appel-
B   lant that the landowner would be entitled to 3/4th of the market value of
    the land, becomes unsustainable. If we have regard to the provisions under
    sub-sections (2) and (3) of Section 18 of the Tenures Act, rightly adverted
    to by the learned single Judge, the amount of compensation to which a
    landowner becomes entitled can only be the purchase price which he would
C   be entitled under the said provisions for his land, which the tenant had a
    right to purchase thereunder. If the purchase in favour of the tenant was
    over, as indicated in sub-section (5) of Section 18, the purchase price, it
    must be kept in mind, could have been recovered by the landowner as
    arrears of revenue. Therefore, in our view, the tenant could have been
D   entitled to get out of the component of compensation awardable as market
    value in item (i) referred to above and the solatium and interest payable
    thereon, only that amount of compensation which could be equivalent to
    the purchase price liable to be paid by the tenant to the landowner under
    Section 18 of the Tenures Act and nothing more or less. Hence, our answer
    to the question under consideration is, that if a tenanted land which its
E   tenant was entitled to purchase under section 18 of the Tenures Act did
    vest in the State by reason of its acquisition under the LA Act before be
    became its deemed owner as envisaged under sub-section (4) of Section 18
    of the Tenures Act, the landowner of that tenanted land could have made
    a claim for compensation awardable therefor under the L.A. Act and his
p   entitlement out of the said compensation could only be that falling in the
    component of compensation in item (i), the market value of that land
    together with solatium and interest, however, limited to the amount of
    purchase price which he was entitled to get for the land under Section 18


G
    of the Tenures Act and nothing more or less.

          We shall now turn to the facts leading to the present appeals for
    deciding them in the light of the answers given by us for the questions
                                                                                       -
    which arose for our consideration.

          The facts which have led to landowner's appeal being C.A. No.
H 540/80, show that 25 kanals 2 marlas out of 224 kanals 18 marlas of land
            1-IARINDER SINGH v_ BIHARI LAL [VENKATACHALA, J.]             105

     respecting which Beharilal, the tenant, become a deemed owner on March A
     12, 1963 under sub-section (4) of Section 18 of the Tenures Act, had come
     to be acquired and vested in the State under the LA Act on October 14,
     1961 earlier to the tenant becoming its deemed owner. If that be so, if
     regard is had to the questions answered by us, Harinder Singh, lhe land-
     owner had become entitled to get out of the compensation awarded for the
     said land under the LA Act, an amount equivalant to its purchase price.
                                                                                  B
     If that amount is not taken by Harinder Singh from the deposits made by
     Behari Lal, the tenant, as the purchase price of that land under the Tenures
     Act; or out of the compensation awarded for that land under the LA Act,
     L.R.'s of Harinder Singh would be entitled to get the same either from the
,_
     compensation, if any available, or from Bihari Lal.                         c
             Coming to the facts which have led to the landowner's appeal being
     C.A. No. 3288/79, they show that 151 Kanals 2 Marlas of land out of 224
     Kanals 18 Marlas of land respecting which the tenant, Biharilal, became
     the deemed owner on March 12, 1963 was acquired and vested in the State D
     on April 8, 1968, that is, subsequent to the tenant became its deemed
     owner. If that be so, according to the answers given by us to the questions
     considered, the landowner had no right to make a claim for compensation
     payable for that land under the LA Act, inasmuch as he had lost all his
     interest in that land well before the acquisition proceedings for acquiring
     that land under the LA Act had commenced. Unfortunately, as is disclosed E
     from the facts leading to the appeal, Harinder Singh, the landowner, had
     received the compensation of Rs. 3,24,133.25 awarded for the said land by
     the Land Acquisition Officer in his award made under Section 11 of the
     LA Act on April 4, 1968, while our answers to questions considered by us,
     make it clear that such amount of compensation to which the landowner F
     was not entitled, should not liave been received by him. Our aforesaid
     answers to questions considered by us also make it obvious that the said
     amount of compensation should have been paid in its entirety to the tenant,
     Bihari Lal, in that, it was he who was entitled to that amount of compen-
     sation having become the deemed owner of the said acquired land of 151
     Kanals 2 Marlas. No doubt the third proviso to sub- sec ion (2) of Section G
     31 of the LA Act says, that nothing contained in the section fhall affect the
     liability of any person who may receive the whole or an · part of any
     compensation under the Act, to pay the same to the person _lawfully
     entitled thereto. Therefore, it is obvious that the landowner, Harinder
     Singh, is liable to pay a sum of Rs. 3,24,133.25 received by him from the H
    106                   SUPREME COURT REPORTS                    l1994J 3 S.C.R.

A   Land Acquisition Collector under his award dated April 4, 1968, to the
    tenant, Bihari Lal. Since Harinder Singh had the benefit of that amount to
    the deprivation of its use by Bihari Lal, he has to make good that amount
    to Bihari Lal, atleast along with 6 per cent interest from the date of its
    receipt by him to the date of payment, if it is not already repaid, as urged
    by learned counsel for Bihari Lal, the respondent. Further, as seen from
B   the rec'Ord, the appellant, Harint.ler Singh, is <lead an<l his L.R's are
    prosecuting the present appeals. In this peculiar situation, we consider it
    just and appropriate to direct that the amount liable to be paid by Harinder
    Singh shall be regarded as a debt owned by Harinder Singh to Bihari Lal
    and the same being payable from the former to the latter, shall be a charge
c   on the property of the deceased, Harinder Singh, in the hands of his L.R's
    and Bihari Lal and his successors shall be entitled to realise such debt by
    sale of such properties if the same is not otherwise realised. In this regard,
    this judgment shall be regarded as a decree which could be got executed
    through the reference court, whichever is such court that may have juris-
D   diction as on date. Such course is adopted by us since we felt that there
    will be no justification for driving Bihari Lal or his successors-in-interest
    to recover the amount of compensation together with 6 percent interest,
    by resorting to separate proceedings after a lapse of about 26 years.

          Subject to what we have said as to the liability of Harinder Singh or
E   his L.R's to make good the amount of compensation received under the
    award dated April 4, 1968 of the Land Acquisition Collector, we dismiss
    the present appeals. However, in the facts and circumstances of the cases,
    we do not propose to make any order as to costs.

    K.T.                                                      Appeals dismised.