Holding

The amendment Act 68 of 1984 cannot be applied to grant statutory benefits in this case; the High Court’s order granting such benefits is set aside.

Summary

The State of Kerala appealed a Kerala High Court order that had granted statutory benefits under the Land Acquisition (Amendment) Act, 1984 to respondents whose land was acquired. The land was notified for acquisition in 1974, possession taken in 1977, and compensation enhanced by a subordinate judge in 1980. The High Court, relying on the 1984 amendment, awarded benefits under sections 23(1‑A), 23(2) and 28 of the Land Acquisition Act, 1894. The Supreme Court held that the amendment could be applied only if the court had enhanced compensation or if the proceedings were pending before the amendment was introduced (30 April 1982) or came into force (24 September 1984). Since possession was taken before the amendment and the compensation was not yet paid, the amendment’s benefits could not be granted to the respondents. Consequently, the High Court’s order was set aside and the respondents were entitled only to the solatium and interest provided under the Kerala Act. The appeal was allowed.

Issues considered

Whether the statutory benefits under the Land Acquisition (Amendment) Act, 1984 are applicable to a land acquisition where possession was taken before the amendment came into force and compensation had not been paid.
Whether the High Court had jurisdiction to apply the amendment when it had not enhanced compensation and the proceedings were not pending before the amendment’s introduction.

Legislation cited

Kerala Land Acquisition Act, 1961s. 3
Land Acquisition Act, 1894s. 23(1), s. 23(1-A), s. 23(2), s. 28, s. 31, s. 34
Land Acquisition (Amendment) Act, 1984s. 23(1-A), s. 23(2), s. 28, s. 34

Subjects

land acquisitionamendment actstatutory benefitscompensation enhancementinterestjurisdictionpossession before amendmentKerala

Judgment

...
~
-.
STATE OF KERALA AND ANR.
v.
BETTY W/O L.J. MANI AND ANR.
A

JANUARY 17, 1995

[K. RAMASWAMY AND SUJATA V. MANOHAR, JJ.] B

."' Land Acquisition Act,"1894-Possession of the land not taken before
30th Apri~ 1984-No entitlement or benefit under Section 28 or Section 31 of
Amendment Act 68 of 1984.

A notification under Section 3 of the Kerala Land Acquisition Act,
c
1961, equivalent to Section 4(1) of the Land Acquisition Act, 1894 was
published on September 10, 1974. Possession of respondent's land was
taken on March 20, 1977. Subordinate Judge enhanced the compensation
by an award and decree dated March 21, 1980. While dismissing the appeal
of the State, the High Court by its judgment and decree dated 14.01.88 D
applied the Amendment Act 68 of 1984 and granted the statutory benefits
under Sections 23(1-A), 23(2) and 28 of the Land Acquisition Act, 1894 to
the respondents.

Applicability of the statutory benefits under Act 68 of 1984 was called
in question in this appeal. E

Allowing the appeal, this Court
. ,.,,_ HELD : 1. The High Court would get jurisdiction to apply the
amended Act 68 of 1984 only when it has enhanced the compensation or
only if the proceedings are pending either b~fore the Land Acquisition
F
Officer or Civil Court before the introduction of the Act on 24.09.84.
[359-G]
2. If the possession of the land has been taken before 30th, 1984, i.e.
when Act 68 came into force and the amount of compensation for such
acquisition had not been paid or deposited under Section 31, the claimant G
,. -~.
would be entitled to interest as contemplated under Section 34 of the 1984
Act. Since the Land Acquisition Act was not applicable to the State of
Kerala, the Amending Act would be applicable only from the date on which
the Amending Act came into force, namely, September 24, 1984. Therefore,
the respondents were not entitled to the benefits under Section 31 or 28 as H
357

-L
358 SUPREME COURT REPORTS (1995] 1 S.C.R.

A amended by Act 6~ of 1984. [359-C-D]
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 1421-22
of 1991.

From the Judgment and. Order dated 14.1.88 of the Kerala High
B Court in L.A.A. Nos. 242-43 of 1980.

M.T. George for the Appellants.

G. Vishwanath Iyer, P. Kesava Pilli and T.G.N. Nair for the Respon-
dents.
c
The following Order of the Court was delivered :

A notification under s.3 of the Kerala Land Acquisition Act, 1961,
equivalent to s.4(1) of the Central Act was published on September 10,
1974. The possession of the land was taken on March 20, 1977, obviously
U :tfter making the award. On reference, the Subordinate Judge enhanced
the -compensation by his award and decree dated March 21, 1980. While
dismissing the appeal of the State, the High Court by its judgment and
decree dated January 14, 1988 applied the Amendment Act 68 of 1984
and granted that ·statutory benefits under s.23(1-A), 23(2) and 28 of the
E Land Acquisition Act, 1894 as amended in Act 68 of 1984. Thus this appeal
by special leave confining to the 1uestion of applicability of the statutory
benefits under Act 68 of 1984.

It would be seen that the court under s.23(1) while enhancing the
compensation has been given power under s.23(1-A) or 23(2), on an
F application, to award the statutory benefits, in addition to the enhanced
compensation. So, on the application made by the claimant, the court
would not get jurisdiction to apply the amended Act 68/1984 except when
it has enhanced the compensation. Even otherwise, it would apply only if
proceedings were pending either before the Land Acquisition Officer or
G before the civil court before the date when the Bill was introduced on
30.4.82 or the Act came into force, i.e. 24.9.84. Then only the statutory
benefits would be given on the enhanced compensation and not otherwise.

Sri. G. Vishvanath Iyer, learned senior counsel for the claimants
relied upon sub-s. (3) of s.30 of the Act and contended that since the
H amount was not paid before possession was taken, the claimants are
j STATEOFKERALAv. BETTY 359

entitled to the payment of interest under clause (a) of sub-s (3) of s.30 A
, ~-
reads thus :

"(a) every case in which possession of any land acquired under the
principal Act had been taken before the 30th day of April, 198:2
[the date of Introduction of the Land Acquisition (Amendment~
Bill, 1982, in the House of the People], and the amount of com- B
pensation for such acquisition had not been paid or deposited

"
.. under Section 31 of the principal Act until such date, with effect
on and from that date;"

It would, therefore, clearly indicate that if possession of the land ha$
been taken before 30th April, 1982, i.e. before the introduction of the Land c
Acquisition (Amendment) Bill 1982, and the amount of compensation for
such acquisition has not been paid or deposited under s.31, the claimant
would be entitled to the payment of interest as contemplated under s.34 of
the Principal Act. . Since the Land Acquisition Act 1 of 1984 was not
applicable to the State of Kerala, this Amending Act would be applicable D
only from the date on which the Amending Act has come into force,
namely, September 24, 1984. Therefore, the claimants are not entitled to
the benefits either under s.34 or s.28 as amended under Act 68 of 1984.
The appeals are accordingly allowed. The statutory benefits granted by the
High Court are set aside. The claimants are entitled only for 15% solatium
E
and 4% interest under the Kerala Act. No costs.

A.G. Appeal allowed.