Created byFuzzy Cloud

Supreme Court of India

SPECIAL DEPUTY COLLECTOR (LAND ACQUISITION) GENERAL, HYDERABADversusB. CHANDRA REDDY AND ORS.

Citation
2007 INSC 425
Decided
16 April 2007
Disposal
Dismissed

Holding

The arbitrator’s award, including solatium and interest, is valid and enforceable, and the authority must pay the amount; the appeal is dismissed.

Summary

The Special Deputy Collector (Land Acquisition) General, Hyderabad requisitioned land for defence purposes and offered compensation of Rs 4,000 per acre under the Requisitioning and Acquisition of Immovable Property Act, 1952. The claimants rejected the offer and an arbitrator was appointed, who awarded Rs 9,000 per acre plus solatium at 30% per annum and interest at 6% per annum. The authority failed to pay, prompting the claimants to obtain a writ directing payment; the High Court's order was upheld on appeal. The appellant contended that the arbitrator lacked jurisdiction to award solatium and interest and that the award was not final. The Supreme Court held that the arbitrator’s award, including solatium and interest, was valid, had attained finality, and the public authority must comply, and further ruled that the case did not merit exercise of Article 136 jurisdiction. Consequently, the appeal was dismissed.

Issues considered

  • The arbitrator under the Requisitioning and Acquisition of Immovable Property Act, 1952, had jurisdiction to award solatium and interest.
  • Whether the award passed in 1991 had attained finality and was binding on the authority.
  • Whether the High Court could direct the authority to pay the award.
  • Whether the Supreme Court could entertain the appeal under Article 136 of the Constitution.

Legislation cited

Subjects

land acquisitionrequisitionarbitration awardsolatiuminterestcompensationfinality of awardArticle 136public authority compliance

Judgment

           SPECIAL DEPUlY COLLECTOR (LAND ACQUISITION) GENERAL,                         A
-~                             HYDERABAD
                                             v.
                            B. CHANDRA REDDY AND ORS.

                                     APRIL 16, 2007
                                                                                        B
                [C.K. THAKKERANDLOKESHWARSINGHPANTA,JJ.]


 "-<
              Requisitioning and Acquisitioning of Immovable Property Act, 1952:
       Land acquisition-Authority fixing compensation.@ Rs. 4,0001- per acre-
       Non-acceptance by land owners-Appointment of an arbitrator-Awarding
                                                                                        c
       compensation @ Rs. 9,000/- per acre, solatium @ 30% per annum and
       interest @ 6% per annum-Execution of award-Held: Once an award was
       passed validity of which was never under challenge, a public authority ought
       to have acted in accordance with the directions issued in the award and
       should have made the payment-Jn the present case, since payment was not          D
       made, claimants approached the High Court for directions for payment in
       terms of the award-Single Judge directing the authorities for payment-
 J'    Appeal filed against the order was dismissed on ground of delay as well as
       on merits-Under the circumstances, it is not a fit case for this Court to
       interfere with, in exercise of discretionary power under Article 136 of the
       Constitution-Constitution of India, 1950-Article 136.                            E

             Respondents-claimants were the land owners whose land was
       requisitioned for defence purpose by the Central Government. The Competent
       Authority offered compensation to the land-owners at the rate of Rs. 4000/-
       per acre. They did not accept the amount of compensation as offered and the
                                                                                        F
       case was referred to an Arbitrator in terms of provisions under the
       Requisitioning and Acquisitioning of Immovable Property Act. The Arbitrator
       awarded compensation @Rs. 9000/- per acre to the land-owners. In addition,
       solatium @ 30% per annum and interest@ 6% per annum have also been
       awarded. The amount was not paid by the authorities. The claimants
       approached the High Court by filing Writ Petition for issuing appropriate        G
       directions to the authorities. A Single Judge of the High Court issued
       necessary directions to the authorities for payment of the amount within sixty
tJ..   days. Writ Appeal filed by the appellant was dismissed by the Division Bench
       of the High Court. Hence the present appeals.
                                            163                                         H
    164                     SUPREME COURT REPORTS                    (2007] 5 S.C.R.

A         Appellant contended that the Arbitrator had committed an error of law
                                                                                        y.
    and of jurisdiction in granting solatium and interest; that solatium and
    interest can only be granted under the Land Acquisition Act, 1894 and not
    under the Requisitioning and Acquisition of Immovable Property Act under
    which acquisition has been made by the appellant; and that neither the
    Arbitrator could have ordered payment of solatium and interest to the
B   claimants nor the High Court could have issued the direction to pay such
    amount.

           Respondents-claimants submitted that even if this Court is of the view       ,.,
    that the award passed by the Arbitrator was not strictly in accordance with
    law, it may not exercise discretionary and equitable jurisdiction under Article
c   136 of the Constitution; that considering the fact that the award was passed
    in 1991, that it was never challenged by the Land Acquisition Officer it had
    attained finality. It was, therefore, incumbent upon the Land Acquisition
    Officer to comply with the directions in the award in the award and to pay the
    amount.
D         Dismissing the appeal, the Court

           HELD: I.I. The offer of amount as compensation by the Competent
    Authority under the Requisitioning and Acquisition oflmmovable Property
    Act had not been accepted by the claimants and theY. opted for appointment of
    Arbitrator under the Requisitioning and Acquisition of Immovable Property
E   Act. An Arbitrator was appointed and Arbitration Case was registered. Award
    was made by the Arbitrator even though it was asserted by the appellant at
    one stage before this Court that the award was not final and an appeal wa~
    filed against it. Subsequently it was admitted that no such appeal had been
    filed and the award had attained finality. On the contrary, record revealed that
F   on the basis of the award in which solatium and interest was granted by the
    Arbitrator, other land-owners had also claimed the similar benefit of solatium
    and interest which was allowed. Therefore, the claimants are right in
    submitting that once an award was passed, validity of which was never under
    challenge, a public authority ought to have acted in accordance with directions
    issued in the award and should have made the payment.
G                                                [Para 24] [172-F, G, H; 173-A, BJ

          National Insurance Co. Ltd., Calcutta v. Life Insurance Corporation of
    India, AIR (1963) SC 1171 and Nagpur Improvement Trust & Anr. v. Vithal
                                                                                       ...
    Rao & Ors., [1973] l SCC 500, followed.

H         Satinder Singh v. Umrao Singh & Anr., AIR (1961) SC 908 and Union
           SPECIAL DEPUTY COLLECTOR {LAND ACQUISITION) GENERAL, HYDERABAD v. B. CHANDRA REDDY (C.K. THAKKER. JI   165

 -   ._,   of India v. Hari Krishan Khosla (dead) by Lrs., (1993] Supp 2 sec 149,                                       A
           referred to.

                   Swift & Co. v. Board of Trade, (1925) A.C. 520, (HL) and Birch v. Joy,
           (1852) 3 H.L.C. 565, referred to.

                  1.2. The claimants were constrained to approach the High Court for                                    B
           the award being executed and payment made. When the requisite diri;ctions
           were issued by the Single Judge of the High Court, the order was challenged
           by filing intra-Court appeal. There was delay in filing appeal. The Division
           Bench was not satisfied as to 'sufficient cause' for condonation of delay. Even
           on merits, the Court felt that it was not a case to interfere with the award
           passed by the Arbitrator in 1991 and accordingly, the Letters Patt!nt Appeal                                 c
           was dismissed on both the grounds, on the ground of delay as well as on merits.
                                                                     (Para 24) (173-B, CJ

               1.3. The Case in hand is not one which calls for exercise of discretionary
           power under Article 136 of the Constitution in Favour of the appellant
                                                                                                                        D
                                                                                (Para 25)

     ~
                   CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6063-6064 of
     I
           2000.

                 From the Judgment and Order dated 12.04.1999 of the High Court of
                                                                                                                        E
           Judicature of Andhra Pradesh at Hyderbad in W.A.M.P. No. 1001of1995 in
           W.A.S.R. No:38345of1995.

                Manoj Saxena, Rahul Shukla and Rajnish Singh (for T.V. George) for the
           Appellant.
                                                                                                                        F
-I,             C. Mukund, Avanish Garg, Neeraj Anand and T.V. Ratnam for the
           Respodents.

                   The Judgment of the Court was delivered by

                 C.K. THAKKER, J. I. Present appeals are filed against the judgment
                                                                                                                        G
           and order passed by the Division Bench of the High Court of Andhra Pradesh
           on April 12, 1999 in Writ Appeal M.P. No. 1001of1995 and W.A.S.R. No.
~          38345 of 1995 by which it confirmed the order passed by the learned Single
           Judge on January 27, 1995 in Writ Petition No.12016 of 1993 directing the
           appellant herein to comply with the award passed by an Arbitrator appointed
           under the Requisitioning and Acquisition of Immovable Property Act of 1952                                   H
    166                     SUPREME COURT REPORTS                    [2007] 5 S.C.R.

A (hereinafter referred to as "the Act").                                              ,_.   .



           2. The facts giving rise to the present appeals are that the respondents-
    claimants were the owners of the land bearing Survey No 83 admeasuring 12
    acres and 5 gunthas and Survey No. 86/2 admeasuring 12 acres and 30
    guntas, situated at Devarayamzal Village, Medchal Manda!, Rangareddy District
B   of Andhra Pradesh. The land was initially requisitioned for defence purpose,
    i.e. for the purpose of extension of rifle range of Hakimpet Airfield, EMC
    Centre, Secunderabad. The Competent Authority thereafter initiated
    proceedings for acquisition of land and by an award dated February 6, 1978,
    offered compensation to the respondents-land-owners at the rate of
c   Rs. 4000/- per acre. The respondents-land-owners did not accept the amount
    of compensation as offered by the Competent Authority under the Act and
    the case was referred to an Arbitrator under the Act. Arbitration Case No. 1
    of 1988 was registered. The parties were granted an opportunity to adduce
    evidence and finally by an award dated November 13, 1991, the learned
    Arbitrator awarded an amount of Rs. 9000/- per acre to the land-owners. Over
D   and above the amount of compensation., the Arbitrator also awarded solatium
    @ 30% per annum and interest @ 6% per annum. The amount was not paid
    by the appellant to the claimants. The claimants, in the circumstances, were
    constrained to approach the High Court by filing Writ Petition No. 12016 of
    1993 for issuing appropriate directions to the authorities to pay the amount
    awarded by the Arbitrator. By an order dated January 27, 1995, a Single Judge
E
    of the High Court issued necessary directions as prayed by the claimants and
    ordered the authorities to pay the amount within sixty days. Writ Appeal filed
    by the appellant before the Division Bench of the High Court was dismissed
    on the ground of delay as also on merits. The said decision has been
    challenged by the appellant in this Court.
F
          3. On February 14, 2000, when the matter was placed for admission -
    hearing, a two-Judge Bench issued notice limited to solatium and interest and
    the following order was passed-

                "Issue notice on SLP restricted to solatium and interest. Notice
G           will also issue on application for condonation of delay. Ld. counsel
            is permitted to file a copy of grounds of appeal in the CMA which
            is pending in the High Court. There is no stay in respect of the other     5-
            amount covered by the award."

          4. On October 9, 2000, leave was granted. The matter was placed for
H final hearing before us on January 23, 2007. We heard the matter for some time
               SPECIAL DEPUTY COLLECTOR (LAND ACQUISITION) GENERAL, HYDERABAD v. B. CHANDRA REDDY (C.K. TliAKKER. J.J   167

     - ,,     and passed the following order-                                                                                 A
                            We have heard learned counsel for the parties for some time. It
                        was stated by learned counsel for the appellant that aggrieved by the
                        Award passed by the Arbitrator under Section 8 of the Requisitioning
                        & Acquisition of Immovable Property Act, 1952 (hereinafter referred
                        to as 'the Act'), the appellant has preferred an appeal under Section                                 B
                        11 of the said Act and it is pending in the High Court of Andhra
                        Pradesh at Hyderabad. He prays for some time so as to enable him
       -~
                        to produce a copy of the Memorandum of Appeal as well as the latest
                        status of the said appeal. Two weeks' time is granted for the purpose.
                        List the appeals thereafter."
                                                                                                                              c
                     5. As per our direction, the Registry placed the matter on Board on
              February 13, 2007. We observed on that day that on January 23, 2007, when
              the matter was called out for final hearing, a statement was made that an
              appeal was filed against the award passed by the Arbitrator and was pending
              for final hearing. The matter was, therefore, adjourned to enable the parties
                                                                                                                              D
              to produce a copy of Memorandum of Appeal and latest status of the appeal.
              But it was stated at the date of hearing, i.e. on February 13, 2007 that on
        't
       J.     inquiry by the learned counsel for the appellant, he was informed that no such
              appeal had been filed by the appellant. The appeal was instituted by other
              claimants. Accordingly, we had proceeded with the matter and heard the
              learned counsel for the parties.                                                                                E
                     6. The only point which is pressed before us by the learned counsel for
              the appellant is that the Arbitrator had committed an error of law and of
              jurisdiction in granting solatium and interest. According to him, solatium and
              interest can only be granted under the Land Acquisition Act, 1894 and not
              under the Act under which acquisition has been made by the appellant. The                                       F
              Arbitrator has no power to grant solatium and interest and the award is,
              therefore, vulnerable. Neither the Arbitrator could have ordered payment of
              solatium and interest to the claimants nor the High Court could have issued
              the direction to pay such amount. The said direction, hence, deserves to be
,.            set aside by allowing the appeals.                                                                              G
     ..._,,          7. Though in the appeals filed before this Court, a ground was taken
              that the High Court could not have passed an order asking the appellant to
              pay to the claimants the amount awarded by the Arbitrator in view of the fact
              that the appellant had challenged the award passed by the Arbitrator under
              the Act and the appeal was pending, as stated earlier, at the time of hearing                                   H
     168                     SUPREME COURT REPORTS                      [2007] 5 S.C.R.

A of appeals, it was admitted that the award passed by the Arbitrator was never
    challenged by the Land Acquisition Officer and it had attained finality. The           >---
    question, therefore, is confined to legality or otherwise of the order of Arbitrator
    granting solatium and interest under the Act.

           8. The learned counsel for the respondents-claimants supported the
B award as also directions by the High Court asserting the award to be legal,
    valid and in consonance with law and calling for 'no interference'. It was
    alternatively argued that even if this Court is of the view that the award
    passed by the Arbitrator was not strictly in accordance with law, it may not
    exercise discretionary and equitable jurisdiction under Article 136 of the
C   Constitution considering the fact that the award was passed in 1991, it was
    never challenged by the Land Acquisition Officer and it had attained finality.
    It was, therefore, incumbent upon the Land Acquisition Officer to comply
    with the directions in the award and to pay the amount which was not done.
    Even though the claimants succeeded, they were constrained to approach the
    High Court and in 1995, a Single Judge directed the appellant to comply with
D   the Award. Even Letters Patent Appeal was dismissed. This is, therefore, not
    a fit case to grant any relief in favour of the appellant.

          9. The learned counsel for the parties invited our attention to the              i

    relevant provisions of the Act. Section 3 enables the Competent Authority                  •
    to requisition immovable property in certain cases. Section 4 empowers the
E   Authority to take possession of requisitioned property. Section 5 deals with
    rights over requisitioned property. Section 6 relates to release of property
    from requisitioning. Section 7 authorises the Government to acquire the
    requisitioned property. Section 8 Jays down principles and fixes method of
    determining compensation. Section 9 deals with payment of compensation.
F   Sections I0 and 11 provide for appeals in certain cases.

         10. Reliance was also placed by both the sides on several decisions of
  this Court. It was submitted by the learned counsel for the appellant that the
  question is no longer res integra so far as payment of solatium and interest
                                                                                  1
  under the Act of 1952 is concerned and it has been held that the provisions I
G of Land Acquisition Act cannot be invoked while deciding the cases under                         .,
  the present Act and Arbitrator has no power, authority or jurisdiction to grant
  solatium and interest.

          11. On behalf of claimants, on the other hand, it was urged that under
    the provisions of the Act of 1952, solatium and interest had been awarded
H
                 SPECIAL DEPUIT COLLECTOR (LAND ACQUISITION) GENERAL, HYDER.A.BAD"· 8. CHANDRA REDDY fC.K. TIIAKKER, J.)   169
  r
               in several cases and those orders had been upheld by this Court. One of the A
        - -(   grounds which weighed with this Court in upholding such award was equity
               in favour of claimants. We may deal with some of the decisions in this regard.

                     12. In Satinder Singh v. Umrao Singh & Anr., AIR (1961) SC 908, this
               Court was considering the case of acquisition of land under the East Punjab
               Requisition oflmmovable Property (Temporary Powers) Act, 1948. The question                                       B
               before the Court was whether the claimants would be entitled to interest on
               the amount of compensation. It was argued on behalf of the claimants that
         _,    the amount of compensation awarded must carry a reasonable rate of interest
               from the date of acquisition when the claimants lost possession of the property.
               The argument was, however, negatived by the High Court mainly on the
               ground that the Act of 1948 made no provision for payment of interest.
                                                                                                                                 c
               Omission to make such provision amounted in law to an intention not to
               award interest on compensation amount determined under the Act.

                       13. The Court then considered the question on principle and stated;
                                                                                                                                 D
                               What then is the contention raised by the claimants? They contend
                         that their immovable property has been acquired by the State and the
          ~              State has taken possession of it. Thus they have been deprived of the
         }               right to receive the income from the property and there is a time lag
                         between the taking of the possession by the State and the payment
                         of compensation by it to the claimants. During this period they have                                    E
                         been deprived of the income of the property and they have not been
                         able to ~eceive interest from the amount of compensation. Stated
                         broadly the act of taking possession of immovable property generally
 •                       implies an agreement to pay interest on the value of the property and
                         it is on this principle that a claim for interest is made against the State.
                         This question has been considered on several occasions and the
                                                                                                                                 F
        _:J
                         general principle on which the contention is raised by the claimants
                         has been upheld. (emphasis supplied)

                     14. The Court there referred to Swift & Co. v. Board of Trade, (1925)
               A.C. 520, (HL) wherein the House of Lords held that in a contract for sale and
 ":
                                                                                                                                 G
               purchase of land it is the practice of the Court of Chancery to require the
               purchaser to pay interest on his purchase money from the date when he took,
        )..    or might safely have taken, possession of the land.

.....               15. The Court also noted that the principle had been recognized since
               more than a century and referred to another English decision in Birch v. Joy,                                     H
    170                     SUPREME COURT REPORTS                    (2007] 5 S.C.R.

A (1852) 3 H.L.C. 565. In Birch, Viscount Cave, L.C. observed that this practice
    rests upon the view that the act of taking possession is an implied agreement      ...
    to pay interest. The Court also referred to a decision of the Judicial Committee
    of the Privy Council in Inglewood Pulp & Paper Co. Ltd. v. New Brunswick
    Electric Power Commission, (1928) AC 492 : AIR (1928) PC 287 wherein it was
    held that upon the expropriation of land under statutory power (whether for
B   private gain or for public good), the owner is entitled to interest upon the
    principal sum awarded from the date when possession was taken, unless the
    statute clearly shows an intention to the contrary.
                                                                                       ,,_
          16. The Court, therefore, concluded that the claim for interest proceeds
c   on the assumption that when the owner of immovable property loses possession
    of property, he can claim interest in lieu of right to retain possession.

          17. Dealing with the contention of difference between two Acts, namely,
    the East Punjab Requisition of Immovable Property (Temporary Powers) Act,
    1948 and the Land Acquisition Act, 1894, the Court observed;
D                                                                                                  I.
          The question which we have to consider is whether the application of
    this rule is intended to be excluded by the Act of 1948, and as we have
    already observed, the mere fact thats. 5(3) of the Act makes s. 23(1) of the
                                                                                        ~
    Land Acquisition Act of 1894 applicable we cannot reasonably infer that the
    Act intends to exclude the application of this general rule in the matter of the           I

E   payment of interest.

           18. A similar issue came up for consideration before a Constitution
    Bench of this Court in National Insurance Co. Ltd., Calcutta v. Life Insurance
    Corporation ofIndia, AIR (1963) SC 1171. There, the Court was considering                  •
    the question whether the Corporation under the Life Insurance Corporation                      ...
                                                                                                   I
F   Act, 1956 was or was not required to pay compensation with interest to the
    insurer. TI1e Court noted that neither the Act nor the Rules contained any          ""'
    express provision for grant of interest. Relying on English cases referred to
    earlier, however, the Court held that the insurer would be entitled to claim


G
    interest once it is proved that he was illegally deprived of the amount to
    which he was legally entitled and there was delay on the part of the Corporation
    in making payment of such amount.

           19. Strong reliance was placed by the learned counsel for the claimants     .....
                                                                                               -
    on a decision of seven-fodge Bench in Nagpur Improvement Trust & Anr. v.

H
    Vitha/Rao & Ors., [1973] l SCC 500. That was a case in which constitutional
    validity of certain provisions of the Nagpur Improvement Trust Act, 1963 was
                                                                                               "
                        SPECIAL DEPUTY COLLECTOR (LAND ACQUISITION) GENERAL HYDERABAD "- B. CHANDRA REDDY IC.K. THAKKER, J.1 )   71

         -   ·1         under challenge. The contention of the claimants was that difference in rate A
                        of payment of compensation under the Improvement Trust Act and the Land
                        Acquisition Act was arbitrary, discriminatory and violative of equality clause
                        under Article 14 of the Constitution." The High Court declared the provisions
                        unconstitutional and ultra vires infringing Article 14 of the-Constitution. This
                        Court considered the relevant provisions as also the factum of acquisition of
                        property and posed a question whether such classification could be said to B
                        be 'reasonable classification' in law.
             __,
                               This Court then stated;

                                  It would not be disputed that different principles of compensation
                                  cannot be formulated for lands acquired on the basis that the owner                                 c
,                                 is old or young, healthy or ill, tall or short, or whether the owner has
                                  inherited the property or built it with his own efforts, or whether the
                                  owner is a politician or an advocate. Why is this sort of classification
                                  not sustainable? Because the object being to compulsorily acquire for
                                  a public purpose, the object is equally achieved whether the land D
                                  belongs to one type or another type.
                  t
             -1-                  20. The Court proceeded to state;
    _.                                Can classification be made on the basis of the public purpose for
                                  the purpose of compensation for which land is acquired? In other
                                  words can the legislature lay down different principles of, compensation
                                                                                                           E
                                  for lands acquired say for a hospital or a school or a Government
    .                             building? Can the legislature say that for a hospital land will be
                                  acquired at 50% of the market value, for a school at 60% of the value.
                                  and for a Government building at 70% of the market value? All three
                  .>(             objects are public purposes and as far as the owner is concerned it F
                                  does not matter to him whether it is one public purpose or other.
                                  Article I4 confers an individual right and in order to justify a
                                  classification there should be something which justifies a different
                                  treatment to this individual right. It seems to us that ordinarily a
    <                             classification based on the public purpose is not permissible under
                                  Article 14 for the purpose of determining compensatio:J.. The position G
                                  is different when the owner of the land himself is the recipient of
              ;)..
                                  benefits from an improvement scheme, and the benefit to him is taken

    -                             into consideration in fixing compensation. Can classification be made
                                  on the basis of the authority acquiring the land? Jn other words can
                                  different principles of compensation be laid if the land is acquired for H
     172                     SUPREME COURT REPORTS                    (2007] 5 S.C.R.

A            or by an Improvement Trust or Municipal Corporation or the
             Government? It seems to us that the answer is in the negative because
                                                                                        .-
             as far as the owner is concerned it does not matter to him whether
             the land is acquired by one authority or the other.

           21. In the opinion of the Court, it was immaterial whether acquisition is
B under one Act or another and held that if the two Acts could enable the State
    to give one owner a different treatment from another equally situated, the
    owner who is discriminated against can claim the protection of Article 14. It
    was, therefore, held that the High Court was right in declaring such 'so-called'
    classification unreasonable and violative of Article 14.
c        22. The learned counsel for the appellant, however, invited our attention
  to a three-Judge Bench decision in Union of India v. Hari Krishan Khosla
  (dead) by Lrs., [1993] Supp 2 SCC 149. According to the learned counsel, the
  Court in Hari Krishan Khosla considered the scheme of both the Acts,
  referred to earlier decisions including Nagpur Improvement Trust, and held
D that the scheme of Requisitioning Acts and Acquisition Acts is totally different,
  distinct and independent and the principles applicable to Acquisition Laws
  cannot ipso facto be applied to Requisitioning Laws. The Court observed that
  if the Requisitioning Laws do not provide for payment of solatium or interest,        ·f
  such provision would not be hit by Article 14 of the Constitution. The
  claimant, therefore, would not be entitled to the benefit of solatium or interest,
E on the analogy of Acquisition Laws.
          23. The counsd also referred to subsequent cases. In some of the
    decisions, grant of solatium and inter~st under the Act in question has been
    upheld whereas in other cases, the claim had been negatived.

F        24. In view of above decisions, we would have considered the larger
  question posed before us. In our opinion, however, it is not necessary to
  enter into such question in view of the fact that to us, the alternative
  submission made by the learned counsel for the claimants deserves acceptance.
  Admittedly, the offer of amount as compensation by the Competent Authority
G under the Act had not been accepted by the claimants and they opted for
  appointment of Arbitrator under the Act. An Arbitrator was appointed as
  early as on February 8, 1988 and Arbitration Case No. 1 of 1988 was registered.
  Award was made by the Arbitrator on November 13, 1991. Even though it was
  asserted by the appellant at one stage before this Court that the award was
  not final and an appeal was filed against it, subsequently it was admitted that            '
H no such appeal had been filed and the award had attained finality. On the
           SPECIAL DEPUIT COLLECTOR (LAND ACQUISITION) GENERAL. HYDERABAD 1•. B. CHANDRA REDDY (C.K. THAKKER. J.J   l 73

          contrary, record revealed that on the basis of the award in which solatium and                                   A
-    'j
          interest was granted by the Arbitrator, other land-owners had also claimed the
          similar benefit of solatium and interest which was allowed. In ou; view,
          therefore, the claimants are right in submitting that once an award was
          passed, validity of which was never under challenge, a public authority ought
          to have acted in accordance with direction~ issued in the award and should                                       B
          have made the payment. The authorities, however, virtually ignored the award
          though it was never challenged by taking appropriate action in accordance
          with law. The claimants were constrained to approach the High Court for the
          award being executed and payment made. When the requisite directions were
          issued by the learned Single Judge, the order was challenged by filing intra-
          Court appeal. There was delay in filing appeal. The Division Bench was not                                       c
          satisfied as to 'sufficient cause' for condonation of delay. Even on merits, the
          Court felt that it was not a fit case to interfere with the award passed by the
          Arbitrator in 1991 and accordingly, the Letters Patent Appeal was dismissed
          on both the grounds, i.e. on the ground of delay as well as on merits.
                                                                                                                           D
                 25. We are of the considered view that the case in hand is not one
          which calls for exercise of discretionary power under Article 136 of the
     I    Constitution in favour of the appellant. In some cases, this Court had refused
    \"
          to interfere with the orders passed by the High Courts. Thus, in Prabhu
          Dayal & Ors. v. Union of India, [1995] Supp 4 SCC 22, it was contended on
          behalf of the Union of India that the claimants were not entitled in law to E
          solatium. But the court held that for about 22 years, no arbitrator was appointed
          by the Union to determine market value of the land acquired by the Government
          and hence, the claimants were entitled to solatium on the ground of equity.
          The Court followed an earlier decision in Harbans Singh v. Union of India,
          [1995] Supp 4 SCC 223 wherein on similar ground, such relief was granted.
          Even in Hari Krishan Khosla, equitable aspect was considered by this Court.
                                                                                            F
          [See also Girdhari & Ors. v. Union of India & Ors; [2005] 11 SCC 291.

                26. For the foregoing reasons, in our considered opinion, this is not a
          fit case to exercise discretionary jurisdiction under Article 136 of the
          Constitution. The appeals deserve to be dismissed and are accordingly G
          dismissed with costs.

-~        S.K.S.                                                                          Appeal is dimissed.


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "land acquisition"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.