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Supreme Court of India

KARNAL IMPROVEMENT TRUSTversusSUMITRA DEVI (DEAD) BY LRS. AND ORS.

Citation
2008 INSC 392
Decided
24 March 2008
Disposal
Appeal(s) allowed

Holding

The respondents are not entitled to solatium under Section 23(1‑A) nor to benefits under Section 28 because the Collector’s award predates the relevant transitional date and no compensation enhancement occurred.

Summary

The Karnal Improvement Trust appealed against a High Court order dismissing writ petitions that challenged a 1972 land acquisition award. The petitioners sought solatium (30% of market value) and other benefits under Sections 23(1‑A) and 28 of the Land Acquisition Act, 1894. The Supreme Court examined the effect of Section 30(1) of the Land Acquisition (Amendment) Act, 1984, which limits the applicability of Section 23(1‑A) to acquisition proceedings pending on 30 April 1982 where the Collector had not yet made an award, or to proceedings commenced after that date. Since the Collector’s award was made before that date and there was no enhancement of compensation by any court, the Court held that the respondents were not entitled to solatium or Section 28 benefits. Consequently, the appeals were allowed, confirming that no additional statutory amounts could be awarded.

Issues considered

  • Whether the respondents are entitled to solatium under Section 23(1‑A) of the Land Acquisition Act, 1894 in view of Section 30(1) of the Land Acquisition (Amendment) Act, 1984.
  • Whether the respondents can claim benefits under Section 28 of the Land Acquisition Act, 1894 when there was no enhancement of compensation beyond the Collector’s award.

Legislation cited

Subjects

Land acquisitionSolatiumSection 23(1‑A)Section 28Compensation enhancementTransitional provisionsAmendment Act 1984Supreme Court appeal

Judgment

                                  [2008] 5 S.C.R. 313


                          KARNAL IMPROVEMENT TRUST                           A
                                           v.
                    SUMITRA DEVI (DEAD) BY LRS. AND ORS. ·
                         (Civil Appeal Nb. 5782 of 2002)
                                  MARCH 24, 2008
                                                                             B
       "'+       [DR. ARIJIT PASAYAT AND P. SATHASIVAM, JJ.]

                  Land Acquisition Act, 1894:
                   ss.23(1-A) and 28 -Award passed by Land Acquisition
             Collector in 1972 - No enhancement of compensation in           c
             excess of the award passed by Collector - Entitlement to
             solatium u/s.23(1-A) and benefits u/s.28 - Held: Not entitled
             - Land Acquisition (Amendment) Act, 1984 - s.30(1).
                  Appellant filed writ petitions challenging award of
                                                                       D
 '~   . :y   solatium at the rate of 30% of the market value and other
             amounts permissible under ss.23(1-A) and 28 of the Land
             Acquisition Act, 1894. The writ petitions were dismissed.
                   In appeal to this Court, the contention of Appellant is
             that the benefits were not available because of the specific    E
             provisions of Section 30(1) of the Land Acquisition
             (Amendment) Act, 1984; that s.23(1-A) was not applicable
             and further that since 'there was· no enhancement of
             compensation in excess of the award of the Collector, the
             benefits under Section 28 of the Act were also not              F
       ).
             applicable.
                  Allowing the appeals, the Court
.,
                  HELD: 1.1. Entitlement of additional amount provided
             under Section 23(1-A) depends upon pendency of G
             acquisition proceedings as on April 30, 1982 or
             commencement of acquisition proceedings after that
      -~     date. Section 30 sub-section (1 )(a) provides that additional
             amount provided under Section 23(1-A) shall be
                                         313                                 H
   314      SUPREME COURT REPORTS              [2008) 5 S.C.R.


A applicable to acquisition proceedings pending before the
  Collector as on April 30, 1982 in which he has not made
  the award before that date. If the Collector has made the
  award before that date then, that additional amount cannot
  be award.ed. Section 30, sub-section (1)(b) provides that
B Section 23(1-A) shall be applicable to every acquisition
  proceedings commenced after April 30, 1982 irrespective
  of the fact whether the Collector has made an award or
  not before September .24, 1984. [Para 6] (317-8, C, D, E]
        1.2. When the Civil Court on reference under Section
C 18, or the High Court or in some States District Judge
   exercising appellate power under section 54 or civil court
   under Section 26, as the case may be, awards
   compensation in excess of the amount awarded by the
   Collector, then it gets jurisdiction and power to award
D a·dditional benefits envisaged in sub-section (I-A) of
   section 23, sub-section (2) of Section 23 and Section 28           ..   _

   of the Act. In other words, enhancement of the
   compensation in excess of the award of the collector
   under Section 11 is a condition precedent to exercise the
E power to award statuto1')' additional amounts envisaged
   under the aforesaid respective provisions on the excess
  ·compensation. If the High Court dismisses the appeal
   confirming the award of the Collector or that of the civil·
   court, then it has no jurisdiction and power to award
F additional statutory amount under the respective
   provisions as amended under the Amendment Act 68 of
   1984. [Para 8] (318-G, 319-A, 8, CJ
         1.3. From a readin~J of the orders passed by the
   Reference Court it is clear that there was no enhancement
G c;>f the rates as fixed by the Land Acquisition Collector.
   That being so, benefits under Section 28 of the Act are ·
   not available to the respondents. The award was passed
 . on 7.11.1972. The Reference Court decided the case on         ..... -
   18.10.1997. That will not change the position because the
H relevant date is the date of award by the Collector under
                    KARNAL IMPROVEMENT TRUST v SUMITRA DEVI                  315
                  (DEAD) BY LRS. AND ORS. [DR. ARIJIT PASAYAT, J.]

                 the Act. The High Court, therefore, is clearly wrong in           A
                 dismissing the Writ Petition filed by the appellant. The
                 inevitable ~onclusion is that respondents are not entitled
                 to solatium under Section 23(1-A) of the Act and
                 similarly the benefits under Section 28 of the Act.
                 [Para 9] [319-D, E, F]                                            B
      ..
       .+             Union of India and Ors. v. Filip Tiago De Gama of Vedem
                 Vasco De Gama (1990) 1 SCC 277; Kashiben Bhikabai and
                 Ors. v. Special Land Acquisition Officer and Anr. (2002)2 SCC
                 605 and The State of Punjab and Anr. v. Jagir Singh etc. (JT
                 1995 (9) SC 1) - relied on.                                       c
                     CIVIL APPELLATE JURISDICTION : Civil Appeal No.
                 5782 of 2002.
                      From the final Judgment and order dated 29/1/2002 of
                 the High Court of Punjab and Haryana at Chandigarh in C.W.P. D
           -l'   No. 6035/1998.
.->
                                               WITH
                     Civil Appeal Nos. 5670, 5778, 5779, 5804 and 6566/
                 2002.                                                             E
                      Seeral Bagga and Sureshta Bagga for the Appellant.
                     Debasis Misra, G.K. Bansal and Ashu Bhatia for the
                 Respondents.
                      The Judgment of the Court was delivered by                   F

                       DR. ARIJIT PASAYAT J. 1. These appeals have an
                 identical point and are therefore disposed of by this common
                 judgment.
                      2. Challenge in each case is to the final judgment and order G
                 dated 29.1.2002 passed by a Division Bench of the Punjab and
                 Haryana High Court. Writ Petitions filed by the appellant in each
  -.._,;         case were dismissed. Challenge in the Writ Petitions was to
                 the award of solatium at the rate of 30% of the market value and
                 other amounts permissible under Sections 23(1-A) and 28 of H
     316         SUPREME COURT REPORTS                  [2008] 5 S.C.R.


A    the Land Acquisition Act, 1894 (in short the 'Act'). According to      ,.__
     the appellant the benefits were not available to the respondents
     because of the specific provisions of Section 30(1) of the Land
     Acquisition (Amendment) Act, 1984 (in short the 'Amendment
     Act'). The High Court relying on some earlier judgments
s    dismissed the writ petitions.
           3. Learned counsel for the appellant submitted that in view      -+
     of the decision of this Court in Union of India and Ors. v. Filip
     Tiago De Gama of Vedem Vasco De Gama (1990 (1) SCC
     277) and Kashiben Bhikabai and Ors. v. Special Land
C · Acquisition Officer and Anr (~002 (2) SCC 605) no amount
     was payable as provisions of under Section 23(1-A) are not
     applicable. Reference is also made to Section 30(1) of the
   · Amendment Act for the purpose which reads as follows:

o·         "30.Transitional provisions. - (1) The provisions of
           subsection (1-A) of Section 23 of the principal Act, as
           inserted by clause (a) of Section 15 of this Act, shall apply,
           and shall be deemed to have applied, also to, and in
           relation to, -
E          (a) every proceeding for the acquisition of any land under
           the principal Act pending on the 301h day of April, 1982
           [the date of introduction of the Land Acquisition
           (Amendment) Bill, 1982, in the House of the People, in
           whigh no award has been made by the Collector before
F          that date;
           (b) every proceeding for the acquisition of any land under
           the principal Act commenced after that date, whether or
           not an award has been made by the Collector .before the
           date of commencement of this Act.
G
           (2)      )()()(   )()()(   )()()(

           (3)      xxx      xxx      xxx."
      4. It is pointed out that since there was no enhancement of
H c?mpensation in excess of the award of the Collector, the
       I
       I
       I
            KARNAL IMPROVEMENT TRUST v. SUMITRA DEVI                  317
          (DEAD) BY LRS. AND ORS. [DR. ARIJIT PASAYAT, J.]
   -f     benefits under Section 28 of the Act are also not applicable. A
          Reliance is placed on The State of Punjab and Anr v. Jagir
          Singh etc. (JT 1995 (9) SC 1) .
              5. Learned counsel forthe respondents on the other hand
          supported the judgment of the High Court.
   ..          6. In Filip Tiago's case (supra) it was inter-alia observed
                                                                             B
    k
          at para 21 as follows:

               "Entitlement of additional amount provided under Section
               23(1-A) depends upon pendency of acquisition
               proceedings as on April 30, 1982 or commencement of c
               acquisition proceedings after that date. Section 30 sub-
               section (1}(a) provides that additional amount provided
               under Section 23(1-A) shall be applicable to acquisition
               proceedings pending before the Collector as on April 30,
               1982 in which he has not made the award before that D
... ...        date. If the Collector has made the award before that date
               then, that additional amount cannot be awarded. Section
               30, sub-section (1 )(b) provides that Section 23(1-A) shall
               be applicable to every acquisition proceedings
               commenced after April 30, 1982 irrespective of the fact E
               whether the Collector has made an award or not before
               September 24, 1984. The final point to note is that Section
               30 sub-section (1) does not refer to court award and the
               court award is used only in Section 30 sub-section (2)."

                7. Similarly, in Kashiben's case (supra) it was observed     F
          as follows:

               "17. Counsel appearing for the claimants contended that
               the claimants would be entitled to an additional
               compensation @ 12% as provided under Section 23(1-
                                                                            G
               A) of the Act. This contention cannot be accepted in view
               of a Bench decision of this Court in Union of India v. Filip
--.J.
               Tiago De Gama of Vedem Vasco De Gama which held
               that additional compensation under Section 23(1-A) of
               the Act would not be available to a claimant in which the
                                                                            H
    318       SUPREME COURT REPORTS                    [2008] 5 S.C.R.


A         acquisition proceedings commenced and the award was
          made by the Collector prior to 30-4-1982. If the Collector
          made the award before 30-4-1982 then the additional
          amount under Section 23(1-A) cannot be awarded. The
          pendency of the acquisition proceedings on 30-4._ 1982
B         before the Collector was essential for attracting the benefit    •
          under Section 23(1-A) of the Act. It was held: (SCC pp.
          286--87, para 21)

               '21. Entitlement of additional amount provided under
               Section 23(1-A) depends upon pendency of
c              acquisition proceedings as on 30-4-1982 or
               commencement of acquisition proceedings after that
               date. Section 30 sub-section (1 )(a) provides that
               additional amount provided under Section 23(1-A)
               shall be applicable to acquisition proceedings
D              pending before the Collector as on 30-4-1982 in
               which he has not made the award before that date.
               If the Collector has made the award before that date
                                                                               -
               then, that additional amount cannot be awarded.
               Section 30 subs,ection (1)(b) provides that Section
E              23(1-A) shall be applicable to every acquisition
               proceedings commenced after 30-4-1982
               irrespective of the fact whether the Collector has
               made an award or not before 24-9-1984. The final
                pointto note is that Section 30 sub-section (1) does
F               not refer to court award and the court award is used
               only in Section 30 sub-section (2).'
          No judgment taking a contrary view to the above-referred
          case was cited before us. Accordingly, it is held that the
          appellants would not be entitled to the additional
G         compensation provided under Section 23(1-A) of the Act."
          8. In Jagir's case (supra) it was observed as follows:
                                                                          >----
          "It would thus be seen that the legislative animation is
          clear that the Civil Court on reference under Section 18,
H         or the High Court or in some States District Judge
           KARNAL IMPROVEMENT TRUST v. SUMITRA DEVI                    319
         (DEAD) BY LRS. AND ORS. [DR. ARIJIT PASAYAT, J.]

             exercising appellate power under section 54 or civil court       A
,•
             under Section 26, as the case may be, awards
             compensation in excess of the amount awarded by the
             Collector, then it gets jurisdiction and power to award
             additional benefits envisaged in sub-section (I-A) of section
             23, sub-section (2) of Section 23 and Section 28 of the          B
             Act In other words, enhancement of the compensation in
             excess of the award of the collector under Section 11 is
             a condition precedent to exercise the power to award
             statutory additional amounts envisaged under the aforesaid
             respective provisions on the excess compensation. If the         c
             High Court dismisses t_he appeal confirming the award of
             the Collector or that of the civil court, then it has no
             jurisdiction and power to award additional statutory
             amount under the respective provisions as amended under
             the Amendment Act 68 of 1984."
                                                                              D
 • +'         9. From a reading of the orders passed by the Reference
        Court it is clear that there was no enhancement of the rates as
        fixed by the Land Acquisition Collector. That being so, benefits
        under Section 28 of the Act are not available to the respondents.
        The award was passed on 7.11.1972. The Reference Court                E
        decided the case on 18. 10. 1997. That will not change the
        position because as. noted in Filip Tiago's case (supra) the
        relevant date is the date of award by the Collector under the
        Act The High Court, therefore, is clearly wrong in dismissing
        the Writ Petition filed by the appellant. The inevitable conclusion   F
        is that respondents are not entitled to solatium under Section
        23(1-A) of the Act and similarly the benefits under Section 28 of
        the Act.
             10. The appeals are allowed but with no order as to costs.
                                                                              G
        B.B.B.                                         Appeals allowed.


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