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Supreme Court of India

THE STATE OF PUNJABversusDES RAJ

Citation
1996 INSC 546
Decided
18 April 1996
Disposal
Appeal(s) allowed

Holding

The amendment provisions do not apply retroactively to compensation determined prior to their enactment, so the claimants are not entitled to the enhanced solatium, interest, or additional amount.

Summary

The State of Punjab appealed a compensation award granted to Des Raj for land acquired under the Land Acquisition Act, 1894. The original award of Rs. 4,500 per acre was enhanced by the Additional District Judge in 1982 to Rs. 25,000 per acre, and further enhanced by a Single Judge in 1988 to Rs. 43,000 per acre, applying the provisions of the 1984 Amendment Act. The issue before the Division Bench was whether the amendment provisions—Sections 23(2), 28, and 23(1‑A)—could be applied retroactively to compensation determined before the amendment came into force. The Court held that because the reference court had fixed compensation on 19 March 1982, prior to the amendment, the claimants were not entitled to the enhanced solatium, interest, or additional amount under the amended sections. Consequently, the appeal was allowed, setting aside the higher solatium and interest awards and directing that only the unamended 15% solatium under Section 23(2) and 6% interest under Section 28 apply to the enhanced compensation. No costs were awarded.

Issues considered

  • Whether the provisions of the Land Acquisition (Amendment) Act, 1984 (Sections 23(2), 28, and 23(1‑A)) apply to compensation awards determined before the amendment came into force.

Legislation cited

Subjects

Land acquisitionCompensationSolatiumInterestAmendment ActRetroactivitySection 23Section 28Appellate jurisdiction

Judgment

A                            THE STATE OF PUN.JAB
                                             v.
                                       DES RAJ

                                    APRIL 18, 1996

B                jK. RAMASWAMY AND G.B. PATTANAIK, .J.J.j

            Land Acqui.1ition Act,· 1894 :

           Amendnwll Act 6/i of 191!4-Sectivm 23(2), 28 and 23(1-Aj-Rcfer-
C   encc cou1t detcnnining cunzpensation on /\1arclz 19, 1982 prior to the An1cnd-
    111ent Act 6.8 of 1984-Hcnce clainiants not entitled to the enhanced svlatiunz,
    interest and additional a111ount under the anzended 11rovisions-Detcnnina-
    tion of compensation by High Cowt Single Judge-Appeal pending before
    Dirision Bench-Hence n1atler leji OJJen and the Division Bench tvould be
    ji·ce to decide the 11u1ttcr according to laiv.
D
            CIVIL APPELLATE JURISDICTLON : Civil Appeal No. 7673 of
    1996.

         From the .I udgment and Order dated 2.12.88 of the Punjab &
    Haryana High Court in R.F.A. No. 912 of 1982.
E
            Sanjecv Sen and Manoj Swarup for the Appellant.

            T.N. Arora, Adv. for the Respondent.

            The following Order of the Court was delivered :
F
            Delay condoned. Leave granted.

          Notification under section 4(1) of the Land Acquisition Act, 1894
    (for short, the 'Act') was published on March 11, 1978 acquiring 55 acres
    5 kanals 1 maria for construction of new Mandi at J alalabad. The Collector
G   in his award dated March 13, 1978 determined the compensation at Rs.
    4500 per acre. On reference, the Additional District Judge by his award
    and decree dated March 19, 1982 enhanced the compensation to Rs. 25,000
    per acre and Rs. 20,000 per acre on the basis of belting. The learned single
    Judge by his judgment and decree dated December 2, 1988 further en-
H   hanced the compensation to Rs. 43,000 and Rs. 34,000 per acre on belting
                                         562

                                                                                      -
                              STATE v. DES RAJ                              563

 basis, but applied the provisions of Amendment Act 68 of 1984. In this A
 appeal, we are concerned only with the applicability of Sections 23(2), 28 ••
 and 23(1-A) of the Act as amended by Act 68 of 1984. Since the reference
 Court determined the compensation on March 19, 1982, i.e .. prior to the
 introduction of the Amendment Act, the claimants are not entitled to the
 enhanced solatium and interest and also the additional amount under
 section 23(2), 28 and 23(1-A) respectively of the Act.
                                                                            B

         It is brought to our notice that dissatisfied with the enhanced com-
  pensation of Rs. 43,000 per acre, the claimant has filed Letters Patent
  Appeal and that it is pending. If that is so, we need not go into the question
  whether determination of the compensation by the learned single Judge at
                                                                                   c
  Rs 43,000 per acre is justified or not. The matter is left open. The Division
  Bench would be free to decide the matter according to law. But as regards
  the applicability of the amended provisions, in view of the above facts, the
  lear!led single Judge was clearly in error in extending the additional
· benefits under the amended provisions of the Act.
                                                                                   D
        The appeal is accordingly allowed. The order awarding 30%
 solatium, 9% interest from the date of taking possession for one year and
 thereafter 15% interest and also the additional amount of 12% per annum
 under section 23(1-A) stands set aside. Instead, the claimant is entitled to
 15% solatium under section 23(2) and 6% interest under Section 28 as              E
 unamended, on enhanced compensation from the date of taking possession
 till date of deposit into Court. No costs.

 G.N.                                                         Appeal allowed.


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