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Supreme Court of India

THE IMPROVEMENT TRUST, PATIALAversusTHE LAND ACQUISITION TRIBUNAL AND ORS.

Citation
1995 INSC 239
Decided
31 March 1995
Disposal
Appeal(s) allowed

Holding

The respondents are not entitled to the benefits under Section 23(1‑A) of the Land Acquisition Act, 1894.

Summary

The Improvement Trust, Patiala appealed against an award of the Land Acquisition Tribunal that granted the owner‑share certain benefits under Section 23(1‑A) of the Land Acquisition Act, 1894 as amended by the 1984 amendment. The respondents claimed entitlement to a 12% per annum interest on the enhanced compensation from the date of notification until the award or possession, arguing that this right was independent of the escalated solatium and interest under Section 23(2) and Section 28. The Supreme Court examined the earlier judgments (Civil Appeals No.174 and 602‑605/82) and held that the benefit under Section 23(1‑A) was a separate claim, but the question of its applicability was still pending before the Court. Consequently, the Court concluded that the respondents were not entitled to the Section 23(1‑A) benefit and ordered its deletion from the award. The appeal was allowed and the respondents were directed to pay the balance amount as previously ordered.

Issues considered

  • Whether the owner‑share is entitled to the benefits provided under Section 23(1‑A) of the Land Acquisition Act, 1894 as amended by the 1984 amendment.

Legislation cited

Subjects

Land acquisitionCompensationSection 23(1-A)InterestEscalationAmendment Act 68 of 1984Supreme CourtAppeal

Judgment

-
-                      THE IMPROVEMENT TRUST, PATIALA
                                              v.
                                                                                   A

                 THE LAND ACQUISITION TRIBUNAL AND ORS.

                                     MARCH 31,1995

                  [K. RAMASWAMY AND N. VENKATACHALA, JJ.)                          B

               Land Acquisition Act, 1894 :

_,-.         Section 23( 1-A) (As amended by 1984 Act)-iJenefits under Section
       23( 1-A)-Applicability of                                                   C
                                                             .
             Relying on orders passed by this Court on October 29, 1987 in C.A.
       No.174 and 602-605/82 it was contended in this appeal that the respon-
       dents-ownershare entitled to the benefits provided under section 23 (l·A)
       of the Land Acquisition Act, 1894.
                                                                                   D
               Allowing the appeal of Improvement Trust, the Court

              HELD: Section 23 (1-A) of the Land Acquisition Act, 1894 provides
       that in addition to the compensation the owner is entitled to the payment
       of 12% per annum of the enhanced compensation from the date of the
       notification under Section 4(1) till date of passing award by the Collector E
       or taking possession, whichever is earlier. This is independent of the
       escalation of the solatium and interest provided under sub-s.(2) of Section
       23, and Section 28 respectively. Therefore, what this Court meant in its
       quoted order was escalation but not independent of the claims available
       under section 23(1-A) since by then that question was pending adjudica- F
       lion before this Court. Therefore, the respondents are not entitled to the
       benefits under section 23(1-A). (114-E-F]

               CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4695 of

-      1995.

            From the Judgment and Order dated 13.2.95 of the Punjab &
                                                                                   G
       Haryana High Court in C.W.P. No. 2231 of 1995.

               H.L. Srivastava, S.M.Rai and T.N.Singh for the Appellant.

               Gopal Subramaniam, V. Ramswaroop, Vineet Maheshwari and R.K.        H
                                              113
    114                    SUPREME COURT REPORTS                 [1995] 3 S.C.R.

A Maheshwari Advs. for the Respondents.

          The following Order of the Court was delivered:

          Mr. Maheshwari, Advocate, accepts notice for the respondents.

B         Leave granted.

         We have heard learned counsel for the appellant and Mr. Gopal
  Subramaniam, learned senior counsel for the respondents, placed reliance
  on the order passed by this Court in CA No.174 and 602- 605/82 dated
  October 29,1987, wherein the counsel appearing for the appellant had
C conceded in those appeals that "the respondents have agreed that the
  provisions of the amending Act shall apply and escalated rates provided
  therein would be available." Based thereon, it is contended by Sri Gopal
  Subramaniam that it is no longer open to the appellant to contend that
  the respondents are not entitled to the benefits provided under section
D 23(1-A) of the Land Acquisition Act as amended under Act 68/1984.
  Section 23(1-A) provides that in addition to the compensation the owner
  is entitled to the payment of 12% per annum of the enhanced compensa-
  tion from the date of the notification under Section 4(1) till date of passing
  award by the Collector or taking possession, whichever is earlier. This is
E independent of the escalation of the solatium and interest provided under
  sub-s (2) of Section 23, and Section 28 of the Land Acquisition Act as
  amended under Act 68 of 1984, respectively. Therefore, what was meant
  by this Court in the above quoted direction is escalation but not inde-
  pendent of the claims available under section 23(1-A) since by then that
  question was pending adjudication before this Court.
F
           Under these circumstances, the respondents are not entitled to the
    benefits under section 23(1-A) of Land Acquisition Act. It should accord-
    ingly be deleted from the award. It is needless to mention that the
    respondents shall pay the balance amount as directed by this Court in the
G   earlier order within a period of one month from today. The appeal is
    allowed accordingly. No costs.

    T.N.A.                                                    Appeal Allowed.


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