TEJUMAL BHOJWANI (DEAD) THROUGH LRS. AND ORS.versusSTATE OF U.P.

A          TEJUMAL BHOJWANI (DEAD) THROUGH LRS. AND ORS.
                                v.
                           STATE OF U.P.

                                  AUGUST 26,2003

B                     [V.N. KHARE, CJ, AND S.B. SINHA, J.]


           land Acquisition:

            U.P. Awas Evam Vikas Parishad Adhiniyam, I 965: ss.28 and 32-
C    Acquisition of large tract of land alongwith structures· and tubewe/1-
     Compensation-Solatium-Interest-Additional compensation-'-Deduction
     towards development of land-land Acquisition Officer offering compensation
     at the rate of Rs. 2 and Rs. 3 per sq. ft. -Separate compensation for structure
     and Tubewell-Civil Court enhancing compensation to Rs. I 2 and Rs. 15 per
D    sq. ft.-Also enhancing compensation for structure and Tubewell-High Court
     modifying compensation to Rs. I 0 per sq. ft.-Dec/ined separate compensation
     for structure and Tubewe/1-0rdered deduction @ I 0% towards development
     of /and-Held, claimants are entitled. to 30% so/atium, as also interest and
     additional compensation as the proceedings were pending in the year 1984-
     Separate compensation for structure and Tubewell wolfId. be given as there
E    was no capitalization of value of land and structure-It would be appropriate
     to deduct development charges @25'Yo-land Acquisition Act, 1894-ss.4,6, /8
     and 23(/-A).

           Savitri Cairae v. U.P. Avas Evam Vikas Parishad and Anr., 120031 6
F sec 255, relied on.
           Ratan Kumar Tandon and Ors. v. State of U.P., 119971 2 SCC 161
     distinguished.

           Shim/a Development Authority and Ors. v. Smt. Santosh Sharma and
G Anr., AIR (1997) SC 1791, referred to.
          U.P. Avas Evam Vikas Parishadv. Jainul Islam and Anr., (199812 SCC,
     467 cited.

           CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 6365-6382.
fl                                        1044
                      TEJUMAL BHOJW ANI v. · STATE                       1045

of 1999.                                                                          A
     From the Judgment and Order dated 5.12.97 of the Allahabad High
Court in F.A. Nos. 134, 129, 130, 131, 135, 136/87, 97/89, 199/90, 20/91 97/
90, 14/94, 200, 178, 91, 205, 64, and 184 of 1990.
                                   WITH
                                                                                  B
      C.A. Nos. 6383-6398 of 1999.

      S. Ganesh, R.K. Jain, Manoj Malhotra, Ganesh Bhojwani, Sanjiv Sen,
S. Sukumaran for C.N. Sree Kumar, P.K. Jain, Shirish Kumar Misra, A.K.
Srivastava, Mis. J.B.D. & Co., and Ramesh Babu M.R. for the Appearing             C
parites.

      The following Order of the Court was delivered

      The appellants herein (in C.A. Nos. 6365-6382of1999) were the owners
of large tract of land situate in village Chhauni Gora Barik and/or Chhauni       D
Qadim, Pargana Khairabad, Tehsil and District Sitapur in the State of Uttar
Pradesh. The respondent herein (in C.A. Nos. 6365-6382 of 1999) is the
State of U.P., through the Collector, [Land Acquisition Officer, Avas Evam
Vikas Parishad (hereinafter referred to as "the Parishad')], established and
constituted under the provisions of U .P. A vas Evam Vikas Parish ad Adhiniyam,
1965 (for short 'the Adhiniyam'). Under the Adhiniyam, the Parishad is            E
entrusted with certain functions and duties for preparing and executing housing
schemes. For the aforesaid purpose in mind, the Parishad issued a notification
dated !st of November, 1974 under Section 28 of the Adhiniyam, which is
equivalent to Section 4 of the Land Acquisition Act, 1894. By the aforesaid
Notification a large tract of land was sought to be acquired pursuant to a        F
Housing Scheme for construction of houses for the public. The said notification
was followed by a Notification dated 11th November, 1978, under Section 32
of the Adhiniyam, which is equivalent to Section 6 of the Notification.

      The Land Acquisition Officer gave three different Awards on three
different dates. In the case of appellants herein, the Land Acquisition Officer   G
offered compensation for the acquired land @ Rs. 2 per square foot in first
two Awards and Rs. 3 per square foot in the last Award. It is pertinent to
mention here that the Land Acquisition Officer offered separate compensation
for the structure standing on the land as well as to the existing Tube Well.
The claimants were not satisfied by the compensation and, therefore, they
sought compensation. before the Civil Court. The Civil Court enhanced the         H
    1046                      SUPREME COURT REPORTS [2003] SUPP. 2 S.C.R.

A   compensation to Rs. 7.75, Rs. 12 and Rs. 15 per square foot respectively and
    also enhanced the compensation awarded for the Tube Well as well as the
    structure standing on the land. Aggrieved, the parties preferred appeals and
    cross appeals before the High Court.

           The High Court after considering the matters, modified the judgment of
B   the Reference Court awarding compensation @ Rs. I 0 per square foot.
    However, it declined to award separate compensation for the Tube Well and
    the structure standing on the Land. The High Court, however, held that there
    would be further deduction@ 10% towards the development of the land. The
    claimants, (appellants in C.A. Nos. 6365-6382 of 1999 and the U.P. Avas
C   Evam Vikas Parishad and appellants in C.A. Nos. 6383-6398 of 1999) not
    satisfied, preferred separate appeals by way of special leave petition.

          This Court, while entertaining the special leave petitions; restricted the
    notice on the following three questions:

           (I) Whether solatium and interest should have been awarded as per           ~.
D              the Land Acquisition (Amendment) Act, 1984 as laid down by
               this Court in UP. Avas Evam Vikas Parishad v. Jainul Islam
               and ~nr., [1998] 2 sec 467;
           (2) Whether appropriate compensation should have been awarded
               for structures and tube wells situated on the land concerned; and
E
           (3) Whether the offer regarding payment of compensation for trees
               given by the Land Acquisition Officer could be withdrawn in
               Section 18 proceedings.

          So far Civil Appeal Nos. 6365-6382 of 1999 are concerned, the grounds
F   challenged were limited as indicated above.

          Mr.· S Ganesh, learned senior counsel appearing for the appellants,
    urged that in view of the latest decision of this Court in the case of Savitri
    Cairae v. UP. Avas Evam Vikas Parishad and Anr., reported in [2003] 6
    SCC 255, the claimants whose land were acquired by the Parishad and whose
G   proceedings are pending in the year 1984, are entitled to solatium as provided
    under the Land Acquisition (Amendment) Act, 1984. We find merit in the
    submission. In view of the decision in Savitri Cairae's case supra, itmust be
    held that each of the appellants are entitled to solatium @ 30% interest and
    additional compensation.

H
                           TEJUMAL BHOJW ANI v. STATE                         1047
           Next submission of learned senior counsel is that the claimants were        A
    entitled to separate compensation for the Tube Well as well as for the structure
    standing on the land and the High Court committed error while denying
    compensation for the above items, although the land Acquisition Officer has
    granted compensation for those items. We find substance in the argument.
    However, learned counsel appearing for the Parishad argued that the claimants      B
    were not entitled to compensation for value of Land and building separately
    and for that purpose cited a decision of this Court in Ratan Kumar Tandon
    and Ors. v. State of UP., reported in [1997] 2 SCC 161. We find that the said
    decision is distinguishable. In that case we find that there was capitalisation
    of the value of land and structure and, therefore, the claimants were not given
    separate compensation for land and building. Here we find that there was no        C
    capitalisation of value of land and structure by the Land Acquisition Officer
    in his award. On the other hand, Land Acquisition Officer has given
    compensation separately for the land, building and Tube Well. In that view
    of the matter claimants are entitled to separate compensation for land, Tube
)   Well and structure.
                                                                                       D
          Learned counsel appearing in C.A. Nos. 6383-6398 of 1999 urged that
    the High Court, while deducting the development charges @ I0% from
    compensation, acted erroneously, and in fact the deduction ought to have
    been between 30 to 40% and for that purpose he relied on the decision in
    Shim/a Development Authority and Ors. v. Smt. Santosh Sharma and Anr.,             E
    reported in AIR (1997) SC 1791. It is true that the deduction for development
    charges ought to be adequately provided for, but it varies from place to place,
    area to area and amount of developments which are required to be carried out
    and thus there cannot be any fixed amount of deduction towards development
    charges. In the present case, we find that the total land acquired was about
    27 acres. We are, therefore, of the view that it would be appropriate if the       F
    development charges @ 25% is deducted from the compensation awarded to
    the claimants.

         For the aforesaid reasons, the orders and judgment under challenge are
    modified and the appeals are disposed of in the aforesaid terms. No costs.
                                                                                       G
    R.P.                                                     Appeals disposed of.