LILAWATI AGARWAL ETC.versusTHE STATE OF JHARKHAND ETC.
- Citation
- 2016 INSC 294
- Decided
- 1 April 2016
- Disposal
- Appeal(s) allowed
- Bench
- DIPAK MISRA
Holding
Section 30(2) extends the benefit of the enhanced 30% solatium to awards made between 30 April 1982 and 24 September 1984 and to appeals of such awards, and the interpretation in K.S. Paripoornan (II) is in harmony with Raghubir Singh, entitling the appellants to the enhanced solatium.
Summary
The appeal concerned the interpretation of Section 30(2) of the Land Acquisition (Amendment) Act, 1984, which provides for an enhanced solatium of 30% of market value. The award in the present case was passed on 30 September 1985, after the amendment came into force. The High Court had held that the principle laid down in K.S. Paripoornan (II) did not apply, thereby denying the enhanced solatium. The Supreme Court examined whether the decision in K.S. Paripoornan (II) was consistent with the earlier Constitution Bench ruling in Raghubir Singh, which limited the benefit of Section 30(2) to awards made between 30 April 1982 and 24 September 1984. The Court held that the three‑Judge Bench decision in K.S. Paripoornan (II) correctly interpreted the provision and that the enhanced solatium is available to the appellants. Consequently, the Court ordered the respondents to compute and pay the solatium with interest as per Sunder v. Union of India and directed payment within six weeks. The appeal was allowed.
Issues considered
- Whether Section 30(2) of the Land Acquisition (Amendment) Act, 1984 applies to awards made after 24 September 1984 and to appeals thereof.
- Whether the interpretation in K.S. Paripoornan (II) is consistent with the Constitution Bench decision in Raghubir Singh.
- How the enhanced solatium and interest under Section 34 should be computed.
Legislation cited
- Land Acquisition Act, 1894s. 23(1), s. 23(1A), s. 23(2), s. 34
- Land Acquisition (Amendment) Act, 1984s. 15, s. 30(2)
Subjects
Judgment
[2016] 2 S.C.R. 292
A LILAWATI AGARWAL ETC.
v.
THE STATE OF JHARKHAND ETC.
(Civil Appeal No. 1363 of2007)
B APRILOl,2016
[DIPAK MISRA, V. GOPALA GOWDA AND KURIAN
JOSEPH, JJ.]
Land Acquisition Act, 1894 - s. 23 (2) [as amended by Land
Acquisition (Amendment) Act, 1894} -Land Acquisition (Amendment)
c Act, 1984 - s. 30(2) - Enhanced solatium - Benefit of-- As extended
by s. 30(2) of Amendment Act - Interpretation of s. 30(2) of
Amendment Act given by Constitution Bench in Raghubir Singh case
- Clarification in K.S. Paripoornan (II) case by Three Judge Bench
- Jn the present case Division Bench expressed doubt with regard
D to correctness of decision in Paripoornan (II) case in view of the
;udgment in Raghubir Singh 's case and hence referred the 111a1ter to
Larger Bench - Held: The decision in Raghubir Singh 's case was
confined only to grant of solatium in re~pect of award passed
between the two dates i.e. 30.04.1982 and 24.09.1984 and it was
1101 relatable to any award as such passed after the amended date -
E
Par.ipoornan (I.I) case postulates about the awards passed after the
Amendment Act came into force - The decision is in consonance
with Raghub!r Singh 's case - Decision in Paripooranan (II) case does
not run counter to the authority in Constitution Bench - The award
in the present case was passed after e1iforcement of Amendment Act
F - Therefore principles stated in Paripoornan (II) cuse would be
squarely applicable - Amount of solatium directed to be computed
qfier taking into consideration Sunder's case passed by Constitution
Bench of Supreme Court.
Allowing the appeal, the Court
G HELD: 1. The decision in *Raghubir Singh 's case was only
concerned with the grant of solatium in respect of the award
passed between two dates, namely, April 30, 1982 and September
24, 1984. The issue before the Constitution Bench was not
relatable to any award as such passed after the amended date. In
H view of the principle stated in Constitution Bench judgment in
292
LILAWATI AGARWAL ETC. v. THE STATE OF Jl-IARKHAND 293
ETC.
*R"gh"bir Singh case and what has been clarified in three Judge A
Bench judgment in **K.S. Paripoortum (II) C(lse, it cannot be said
that the three-Judge Bench decision runs counter to the authority
in the Constitution Bench. It also does not give a different
interpretation to Section 30(2) that what has been st~ted by the
Constitution Bench. In fact, ** K.S. Paripoortutn (JI) clearly
B
postulates about the awards that have been passed by the court
after the Amendement Act has come into force which is in
consonance with the ratio laid down in * R"gh ubir Singh 's case.
The three-Judge Bench has only observed that the restricted
interpretation placed by the Constitution Bench in * R"ghubir
Singh case should not convey that Section 23(2) would not apply c
to the awards of the civil court pending at the time when the Act
came into force or thereafter. Thus, the controversy with which
the three-Judge Bench was dealing with was absolutely different
and the view expressed by it is absolutely in accord with the
principles laid down in *R"g/111bir Sing/i's case. Additionally, it
D
is also in consonance with the provisions contained in Section
23(2) of the Act. Therefore, there is no reason to disagree with
the view expressed in ** K.S. P"ripoomt111 (II) case, as it has
appositely understood the rule exposited in *R"ghubir Sillgfl's
case. [Paras_8 and 10] [301-E-F; 302-D-G]
*Union of India and Another vs. Raghubir Singh (Dead) E
By Lrs. Etc. (1989) 2 SCC 754:1989 (3) SCR 316;
** K.S. Paripoornan (II} vs. State of Kera/a and
Others (1995) 1 SCC 367: 1994 (4) Suppl. SCR 696 -
explained.
Lilawati Aganva/ (Dead) By Lrs. and Others vs. State F
of Jharkhand (2008) 15 SCC 464: 2008 (5) SCR 1160;
K. Kamalajammanniavaru v. Special Land Acquisition
Officer (1985) 1 SCC 582:1985 (2) SCR 914; Bhag
Singh V, Union Territory of Chandigarh (1985) 3 sec
737: 1985 (2) Suppl. SCR 949; State of Punjab v. G
Mohinder Singh 2008 (15) SCC 464: 2008 (5) SCR
1160 - referred to.
2. The award in the present case had been passed by the
reference court on 30th September, 1985. Therefore, there cannot
be any trace of donbt that principle stated in **K.S. Paripoornan H
294 SUPREME COURT REPORTS (2016] 2 S.C.R.
A (II) case would squarely be applicable. The High Court by the
impugned judgment has wrongly opined that the principle stated
in the ** K.S. Paripoormm (fl) case would not be applicable. The
appellant shall be entitled to the benefits as per the law laid down
in ** K.S. Paripoornrm (II) case. It is not disputed that the
appellants are not entitled to the benefits under Section 23(1A)
B
in view of the decision in ***K.S. Paripoornmt (/) vs. State of
Kera/a. The respondent while computing the amount shall take
judgment in 'S111lller's case into consideration. In case the
respondent do not comply with the judgment, execution can be
levied and at that juncture this aspect can also be taken note of
c as it forms a part of the decree. The respondents are directed to
deposit the amount before the executing court within six weeks
hence. If any amount has already been deposited, that shall be
taken into consideration while computing the amount. [Paras 12,
14 and lS] [302-H; 303-A-D; 304-B-C]
D **K.S. Paripoornan (II) 1·s. Stale of Kera/a and Others
(199S) l SCC 367:1994 (4) Suppl. SCR 696 - relied
on.
'Sunder vs. Union of India (2001) 7 SCC 211: 2001
(3) Suppl. SCR 176 - followed.
E ***K.S. Paripoornan (/) vs. Stale of Kera/a (1994) S
SCC S93: 1994 (3) Suppl. SCR 40S - referred to.
Case Law Reference
2008 (S) SCR 1160 referred to Para I
F 1989 (3) SCR 316 explained Para l
1994 (4) Suppl. SCR 696 explained Para 1
relied on. Para 12
198S (2) SCR 914 refereed to. Paras
G 198S (2) Suppl. SCR 949 referred to. Paras
2008 (S) SCR 1160 referred to. Para6
1994 (3) Suppl. SCR 405 referred to. Para 12
2001 (3) Suppl. SCR 176 followed. Para 13
H
LILAWATI AGARWAL ETC. v. THE STATE OF .IHARKHAND 295
ETC.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1363 A
of2007
From the Judgment and Order dated 19.02.2003 of the High Court
of Jharkhand at Ranchi in Appeal from Original Decree No. 32 and 33
of1986
1-limanshu Munshi, Dr. Gajendra Prasad Singh, Durga Dutta, B
Mani sh Garani, Advs., for the Appellants.
Ajit Kumar Sinha, Sr. Adv, Gopal Prasad, Shashank Singh, Anip
Sachthey, Ms. Anjali Chauhan, Himanshu Munshi, Advs., with him for
the Respondent.
c
The Judgment of the Cou1t was delivered by
DIPAK MISRA, J. A two-Judge Bench of this Cou1t in Lilmvati
Agarwal (Dead) By Lrs. <t11d Others vs. State of J/wrklwnd', after
refe11"ing to the paragraphs 31 and 34 of the pronouncement in Union of
illdia and Another vs. Raghuhir Singh (Dead) By Lrs. Etc.'. D
expressed doubt with regard to the correctness of the decision in K.S.
Paripoonum (JI) vs. State {)(Kera/a am/ Others' and eventually
expressed thus:-
"In Raghubir Singh case two terminus points were fixed i.e.
award by the Collector or decision of the Reference Court must
E
have been taken between 3-4-1982 and 24-9-1984. It has been
clearly stated in the last line of para 34 that every case "must"
have been decided between the aforesaid terminus. In
Paripoornan JI case at para 4 it was observed that restrictive
interpretation should not be given. With great respect we are
unable to subscribe to the view. As a matter of fact a three- F
Judge Bench was trying to give an interpretation different from
what was specifically given by the Constitution Bench.
Therefore, we think it appropriate to refer the matter to a larger
Bench to consider correctness of the view expressed in para 4 in
Paripoornan II case holding that a restricted interpretation should G
not be given, on the face of what has been stated in para 34 of
Raghubir Singh case. Records may be placed before the 1-lon'ble
Chief Justice of India for necessary details."
1
\2008 15 sec 464
\1989) 2 sec 754
\1995) 1sec367 H
296 SUPREME COURT REPORTS [2016] 2 S.C.R.
A On the basis of the aforesaid order, the matter has been placed
before us.
2. As we perceive, it is necessary to express an opinion whether
the correctness of the decision in KS. P"ripoormm (II) deserves to be
considered by a Constitution Bench as the pronouncement in the said
B case is binding on us.
3. To appreciate the controversy, we think it appropriate to
reproduce paragraphs 30, 31 and 34 from R"gftubir Si11gft (supra):-
'·30. We now come to the merits of the reference. The reference
is limited to the interpretation of Section 30(2) of the Land
c Acquisition (Amendment) Act of 1984. Before the enactment of
the Amendment Act, solatium was provided under Section 23(2)
of the Land Acquisition Act (shortly, "the parent Act") at 15% on
the market value of the Land computed in accordance with Section
23( I) of the Act, the solatium being provided in consideration of
D the compulsory nature of the acquisition. The Land Acquisition
Amendment Bill, 1982 was introduced in the House of the People
on 30 April, 1982 and upon enactment the Land Acquisition
Amendment Act 1984 commenced operation with effect from 24
September. 1984. Section 15 of the Amendment Act amended
Section 23(2) of the parent Act and substituted the words '30 per
E centum' in place of the words' 15 percentum'. Parliament intended
that the benefit of the enhanced solatium should be made available
albeit to a limited degree, even in respect ofacquisition proceedings
taken before that date. It sought to effectuate that intention by
enacting Section 30(2) in the Amendment Act. Section 30(2) of
the Amendment Act provides:
F
"(2) the provisions of sub-Section (2) of Section 23 ...... of the
principal Act, as amended by clause (b) of Section 15 ........ ofthis
Act ....... shall apply and shall be deemed to have applied, also to,
and in relation to, any award made by the Collector or Court or to
any order passed by the High Court or Supreme Court in appeal
G against any such award under the provisions of the principal Act
after the 30th day of April, 1982 [the date of introduction of the
Land Acquisition (Amendment) Bill, 1982, in the House of the
People] and before the commencement of this Act."
31. In construing Section 30(2), it is just as well to be clear that
H the award made by the Collector referred to here is the award
LILAWATI AGARWAL ETC. v. THE STATE OF JHARKHAND 297
ETC. [DIPAK MISRA, J.]
made by the Collector under Section 11 of the parent Act, and the A
award made by the Court is the award made by the Principal
Civil Court of Original Jurisdiction under Section 23 of the parent
Act on a reference made to it by the Collector under Section 19
of the parent Act. There can be no doubt that the benefit of the
enhanced solatium is intended by Section 30(2) in respect of an
B
award made by the Collector between 30 April 1982 and 24
September, 1984. Likewise the benefit of the enhanced solatium
is extended by Section 30(2) to the case of an award made by the
Court between 30 April 1982 and .24 September 1984, even though
it be upon reference from an award made before 30 April, 1982.
xxxxx xxxxx c
34. Our attention was drawn to the order made in State of Punjab
v. Mohinder Singh', but in the absence of a statement of the
reasons which persuaded the learned Judges to take the view
they did we find it difficult to endorse that decision. It received
the approval of the learned Judges who decided Bhag Singh', D
but the judgment in Bhag Singh, (supra) as we have said earlier,
has omitted to give due significance to all the material provisions
of Section 30(2), and consequently we find ourselves at variance
with it. The learned Judges proceeded to apply the principle that
an appeal is a continuation.ofthe proceeding initiated before the
Court by way of reference under-Section 18 but, in our opinion, E
the application of a general principle must yield to the limiting
terms of the statutory provision itself. Learned counsel for the
respondents has strenuously relied on the general principle that
the appeal is a re-hearing of the original matter, but we are not
satisfied that he is on good ground in invoking that principle. F
Learned counsel for the respondents points out that the word 'or'
has been used in Section 30(2), as a disjunctive between the
reference to the award made by the Collector or the Court and an
order passed by the High Court or the Supreme Court in appeal
and, he says, properly understood it must mean that the period 30
April, 1982 to 24 September, 1984 is as much applicable to the G
appellate order of the High Court or of the Supreme Court as it is
to the award made by the Collector or the Court. We think that
what Parliament intends ~o say is that the benefit of Section 30(2)
' (1986) 1 sec 365
' ( 1985) 3 sec 73 7 H
298 SUPREME COURT REPORTS [2016] 2 S.C.R.
A will be available to an award by the Collector orthe Court made
between the aforesaid two dates or to an appellate.order of the
High Court or of the Supreme Court which arises out of an award
of the Collector or the Cou11 made between the said two dates.
The word ·or· is used with reference to the stage at which the
proceeding rests at the time when the benefit under-Section 30(2)
B
is sought to be extended. If the proceeding has terminated with
the award of the Collector or of the Court made between the
aforesaid two dates. the benefit of Section 30(2) wil I be applied to
such award made between the aforesaid two dates. If the
proceeding has passed to the stage of appeal before the High
C Colll1 or the Supreme Cou11. it is at that stage when the benefit of
Section 30(2) will be applied. But in every case, the award of the
Collector or of the Court must have been made between 30 April.
1982 and 24 September. 1984.'"
[Emphasis supplied]
D 4. In Ragl111bir Singh (supra). the question of law referred to the
Constitution Bench was:-
.. Whether under the Land Acquisition Act, 1894 as amended by
the Land Acquisition (Amendment) Act, 1984 the claimants are
entitled to solatium at 30 per cent of the market value irrespective
E of the dates on which the acquisition proceedings were initiated
or the dates on which the award had been passed?"
5. In the said case. the award with regard to compensation was
passed by the Collector in March, 1963 and the reference under Section
18 of the Act was disposed of by the Additional District Judge on June
F I 0, 1968. The reference cou11 had enhanced the compensation granted
by the Collector under the Land Acquisition Act, 1894 (for brevity, •the
Act'). The claimant had preferred an appeal to the High Cou11 claiming
fu11her compensation. During the pendency of the appeal, the Land
Acquisition (Amendment) Bill. 1982 was introduced in the Parliament
on April 30. 1982 and became law as the Land Acquisition (Amendment)
G
Act, 1984 when it received the assent of the President on September 24.
1984. The High Court disposed of the appeal by its judgment and order
dated December 6, 1984. While it raised the rate of compensation it
also raised the rate of interest payable on the compensation and taking
into account the amendment Act. awarded solatium at 30%. The
H judgment and order of the High Court was under assail before this Court
LILAWATI AGARWAL ETC. v. THE STATE OF JHARKHAND 299
ETC. [DIPAK MISRA, J.]
and a two-Judge Bench keeping in view the decisions in K. A
Kanwlaja111111a1111it1var11 v. Special Land Acquisition Officer'. and
Bhag Singh v. Union Territory of C/iall{/igarh 7 thought it apt to refer
the matter to a larger Bench which ultimately resulted in the verdict in
Rag/111bir Si11glr (supra).
6. To understand the dictum in Raghubir Singh (supra), it is B
necessary to understand what was stated in Bhag Singh (supra) and
what has been overruled in Rag/111bir Singh (supra). In Blwg Singh
(supra) a three-Judge Bench was dealing with the question of\ aw relating
to interpretation of Section 30(2) of the Amendment Act. In the said
case, the award was passed by the land acquisition collector on October
9, 1975 and the reference court had passed the award on July 31, 1979.
c
The award passed by the reference court was assailed in appeal before
the High Court. The three-Judge Bench considered the decisions in
State of P1111jab v. Mohi11tler Si11glt' and K. Ka111a/aja11111um11iavar11
(supra) and agreed with the view expressed in Mohi11tler Si11g/1is case
and recorded therein disagreement with the view taken in K. D
Kamalaja111111a1111iavam (supra). Be it stated, the three-Judge Bench
in Blwg Si11gft (supra) while agreeing with the earlier three-Judge Bench
decision has opined thus:-
"We may first consider what would be the position if Section 30
sub-section (2) were not enacted and the amendments in Section E
23 subsection (2) and Section 28 were effective only from the
date on which they were made, namely, September 24. 1984 when
the Amending Act received the assent of the President and was
brought into force. If at the date of the commencement of the
Amending Act, any proceedings for determination of compensation
were pending before the Collector under Section 11 of the Act or F
before the court on a reference under Section 18 of the Act, the
·amended Section 23 sub-section (2) and Section 28 would
admittedly be applicable to such proceedings. This much indeed
was conceded by the learned counsel appearing on behalf of the
respondents and even in Kamalaja111111C11111iamru case (supra) it G
was accepted to be the con-ect position. Chinnappa Reddy, J.
speaking on behalf of the Court in Ka111a/ajam111a1111iamn1 case
(supra) observed (SCC p. 584): "The new Section 23(2), of course,
'· ( t 985) 1 sec 5s2
1
t t985J 3 sec 737
" Civil Appeal· No. 3267of1979 decided on May I. 1985 H
300 SUPREME COURT REPORTS [2016] 2 S.C.R.
A necessarily applies to awards made by the Collector or court after
the commencement" of the Amending Act .... "
7. Regard being had to the both the aspects, it is imperative to
understand the issue that was referred to the Constitution Bench. As is
noticeable, the larger Bench observed that the reference was limited to
B the interpretation of Section 30(2) of the Amendment Act. The
Constitution Bench noted the intention of the Parliament, referred to
Section 30(2) of the Amendment Act and in that context opined that:-
"32. The question is: What is the meaning of the words "or to any
order passed by the High Court or Supreme Court on appeal
c against any such award?" Are they limited, as contended by the
appellants, to appeals against an award of the Collector or the
Court made between 30-4-1982 and 24-9-1984, or do they include
also, as contended by the respondents, appeals disposed of between
30-4-1982 and 24-9-1984 even though arising out of awards of
the Collector or the Court made before 30-4-1982. We are of
D opinion that the interpretation placed by the appellants should be
preferred over that suggested by the respondents. Parliament has
identified the appeal before the High Court and the appeal before
the Supreme Court by describing it as an appeal against "any
such award". The submission on behalfofthe respondents is that
E the words "any such award" mean the award made by the Collector
or Court, and carry no greater limiting sense; and that in this context,
upon the language of Section 30(2), the order in appeal is an
appellate order made between 30-4-1982 and 24-9-1984 - in
which case the related award of the Collector or of the Court
may have been made before 30-4-1982. To our mind, the words
F "any such award" cannot bear the broad meaning suggested by
learned counsel for the respondents. No such words of description
by way of identifying the appellate order of the High Court or of
the Supreme Court were necessary. Plainly, having regard to the
existing hierarchical structure of fora contemplated in the parent
G Act those appellate orders could only be orders arising in appeal
against the award of the Collector or of the Court. The words
"any such award" are intended to have deeper significance, and
in the context in which those words appear in Section 30(2) it is
clear that they are intended to refer to awards made by the
Collector or Court between 30-4-1982 and 24-9-1984. In other
H
LILAWATI AGARWAL ETC. v. THE STATE OF JHARKHAND 301
ETC. [DIPAK MISRA, J.]
words Section 30(2) of the Amendment Act extends the benefit A
of the enhanced solatium to cases where the award by the
Collector or by the Court is made between 30-4-1982 and 24-9-
1984 or to appeals against such awards decided by the High Cowt
and the Supreme Court whether the decisions of the High Cowt
or the Supreme Court are rendered before 24-9-1984 or after
B
that date. All that is niaterial is that the award by the Collector or
by the Comt should have been made between 30-4-1982 and 24-
9-1984. We find ourselves in agreement with the conclusion
reached by this Court in K. Ka111alaja111111a1111iavaru v. Special
Land Acquisition Officerl, and find ourselves unable to agree
with the view taken in Bhag Singh v. Union Territo1y of c
Chandigarh-;,_, The expanded meaning given to Section 30(2) in
the latter case does not, in our opinion, flow reasonably from the
language of that sub-section. It seems to us that the learned Judges
in that case missed the significance of the word "such" in the
collocation "any such award" in Section 30(2). Due significance
D
must be attached to that word, and to our mind it must necessarily
intend that the appeal to the High Comt or the Supreme Court, in
which the b".nefit of the enhanced solatium is to be given, must be
confined to an appeal agaii1st an award of the Collector or of the
Cou1t rendered between 30-4-1982 and 24-9-1984".
8. The aforesaid larger Bench decision. as we find, was only E
. concerned with the grant of solatium in respect of the award passed
between two dates, namely, April 30, 1982 and !')eptember 24, 1984.
The issue before the Constitution Bench was not relatable to any award
as such passed after the amended date.
9. In K.S. Paripooma11 (II) (supra), the three-Judge Bench F
appreciated the law laid down in Raglmbir Singlt 's case and referred
to Section 30(2) of the Land Acquisition (Amendment) Act, 1984 (68 of
1984) which was a transitory provision and reproduced paragraph 31 of
the Constitution Bench judgment and then proceeded to state thus:-
"This Court thereby clearly held that even in the pending reference G
made before 30-4-1982, if the civil court makes an award between
30-4-1982 and 24-9-1984, Section 30(2) gets attracted and thereby
the enhanced solatium was available to the claimants. Since Section
30(2) deals with both the amendments to Section 23(2) and Section
28 of the Principal Act by Section I 5(b) and Section 18,
H
302 SUPREME COURT REPORTS [2016] 2 S.C.R.
A respectively, of the Amendment Act by parity of the reasoning
the same ratio applies to the awards made by the civil court between
those dates. The conflict of decisions as to whether Section 23(2)
as amended by Section I 5(b) of the Amendment Act through
Section 30(2) of the transitory provisions would be applicable to
the pending appeals in the High Court and the Supreme Court
B
was resolved in Raghubir Singh case I by the Constitution Bench
holding that the award of the Collector or the court made between
13-4-1982 and 24-9-1984 would alone get attracted to Section
30(2) of the transitory provision. The restricted interpretation should
not be understood to mean that Section 23(2) would not apply to
c the award of the civil court pending at the time when the Act
came into force or thereafter. In this case, admittedly the award
of the civil court was made after the Act had come Into force,
namely, 28-2-1985."
I 0. On a perusal of the principle stated in Raghubir Si11gh case
D and what has been clarified in K.S. Paripoorna11 (II) case, we do not
find that the three-Judge Bench decision runs counter to the authority in
the Constitution Bench. It also does not give a different interpretation to
Section 30(2) that wnat has been stated by the Constitution Bench. In
fact, K.S. Paripoorna11 (II) clearly postulates about the awards that
have been passed by the court after' the Act has come into force which
& is in consonance with the ratio laid down in Raghubir Si11gh 's case.
The three-Judge Bench has only observed that the restricted
interpretation placed by the Constitution Bench in Raghubir Singh
(supra) should not convey that Section 23(2) would not apply to the
awards of the civil court pending at the time when the Act came into
F force or thereafter: Thus, the cont;pversy with which the three-Judge
Bench was dealing with was absolutely different and the view expressed
by it is absolutely in accord with the principles laid down in Raghubir
Singh's case. Additionally, it is also in consonance with the provisions
contained in Section 23(2) of the Act. Therefore, we do not see any
reason to disagree with the view expressed in K.S. Paripoornan (II) as
G we are of the convinced opinion that it has appositely understood the
rule exposited in Raghubir Singh 's case.
11. Having so stated, ordinarily we would have directed the matter
to be placed before a two-Judge Bench, but it is not necessary to do so.
We have been apprised at the Bar that the award in this case had been
H passed by the reference court on 30'h September, 19.85. Therefore,
LILAWATI AGARWAL ETC. v. THE STATE OF JHARKHA \:rJ 303
ETC. (DIPAK MISRA, J.]
there cannot be any trace of doubt that principle stated in K.S. A
Paripooma11 (II) would squarely be applicable.
12. The High Comt by the impugned judgment has opined that
the principle stated in the K.S. Paripoorna11 (II) (supra) would not be
applicable. The said view is perceptibly erroneous. We are of the
considered opinion that the appellant shall be entitled to the benefits as B
per the law laid down in K.S. Paripoorna11 (II). It is not disputed at the
Bar that the appellants are not entitled t-0 the benefits under Section
23( IA) in view of the decision in K.S. Paripoonw11 (I} vs. State of
Kera/a'.
I 3. We will be failing in our duty if we do not take note ofanother c
aspect. A Constitution Bench of this Court in St111(/er vs. U11io11 of
India'° has opined that:-
"24. The proviso to Section 34 of the Act makes the position
further clear. The proviso says that "if such compensation" is not
paid within one year from the date of taking possession of the o
land, interest shall stand escalated to I 5% per annum from the
date of expiry of the said period of one year "on the amount of
compensation or part thereof which has not been paid or deposited
before the date of such expiry". !tis inconceivable that the solatium
amount would attract only the escalated rate of interest from the
expiry of one year.and that there w_ould be no interest on solatium E
during the precedin.g period. What tlie legislature intended was to
make the aggregate amount under Section 23 of the Act to reach
the hands of the person as and when the award is passed, at any
rate as soon as he is deprived of the possession of his land. Any
delay in making payment of the said sum should enable the party F
to have interest on the said sum until he receives the payment.
Splitting up the compensation into different components for the
purpose of payment of interest under Section 34 was not in the
contemplation of the legis'lature when that section was fra1ned or
enacted.
xxx G
xxx
27. In our view the aforesaid statement of law·-is in accord with -
the sound principle of interpretation. Hence the person emit led to
the compensation awarded is also entitled to get interest on the
' (1994) s sec 593
'°(2001)7SCC211 H
304 SUPREME COURT REPORTS [2016] 2 S.C.R.
A aggregate amount including solatium. The reference is answered
accordingly."
14. We have referred to the aforesaid authority by abundant caution
so that the respondent while computing the amount shall take the same
into consideration. Needless to say, in case the respondent do not comply
B with the judgment, execution can be levied and at that juncture this aspect
can also be taken note of as it forms a part of the decree.
15. Resultantly, the appeal is allowed and it is directed that the
appellants shall be entitled to the benefits as stated herein-above. The
judgment and the decree passed by the High Court stands modified. The
c respondents are directed to deposit the amount before the executing
court within six weeks hence. If any amount has already been deposited,
that shall be taken into consideration while computing the amount. In
the fact and circumstances of the case, there shall be no order as to
costs.
D Kalpana K. Tripathy Appeal allowed.
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