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Supreme Court of India

UNION OF INDIA AND ANR.versusKARAM SINGH AND ORS.

Citation
1997 INSC 382
Decided
7 April 1997
Disposal
Leave Granted & Allowed

Holding

The Supreme Court held that the 1952 Act provides no power to award enhanced solatium or interest, the 1984 amendment does not apply, and the District Court lacks jurisdiction to amend the award under CPC §§151 and 152.

Summary

The respondents' property was acquired under the Requisitioning and Acquisition of Immovable Property Act, 1952. After the Land Acquisition Collector fixed compensation, the respondents objected and an arbitrator enhanced the award. The Single Judge set aside the arbitrator’s award and fixed a uniform enhanced compensation, which was deposited. The respondents later applied to the District Judge under CPC §§151 & 152 for enhanced solatium and interest, invoking Amendment Act 68 of 1984; the District Judge allowed it, but the High Court on revision dismissed the application. The Supreme Court held that the 1952 Act contains no provision for enhanced solatium or interest, that the 1984 amendment does not apply, and that the District Court lacks jurisdiction to amend the award under CPC §§151 & 152. Consequently, the High Court erred in not correcting the tribunal’s error, and the Supreme Court allowed the appeal, granting the respondents enhanced solatium and interest without costs.

Issues considered

  • Whether Section 7 of the Requisitioning and Acquisition of Immovable Property Act, 1952 permits payment of enhanced solatium and interest.
  • Whether Amendment Act 68 of 1984 is applicable to awards under the 1952 Act.
  • Whether a District Court can amend a compensation award and grant solatium and interest under CPC §§151 and 152.

Legislation cited

Subjects

land acquisitioncompensationsolatiuminterestjurisdictionCPC 151CPC 152Amendment Act 68 of 1984

Judgment

A                        UNION OF INDIA AND ANR.
                                    v.
                          KARAM SINGH AND ORS.

                                  APRIL 7, 1997

B               [K. RAMASWAMY AND D.P. WADHWA, JJ.)

           Requisitio11i11g and Acquisition of Immovable Prope1ty Act, 1952: Sec-
    tion 7.

C         Code of Civil Procedure, 1908: Sections 151 and 152.

         Acquisition of Propelty for public purpose-Award of compe11satio11
  f or-Responde11ts' application for grant of enhanced solatiwn and interest
  allowed i11 view of Amendment Act 68 of 198~evisio11 prefmed by State
                                                                                     ~
                                                                                     I


  dismissed by High Court-Appeal before Supreme Cowt-Held --Under the
D Requisitioning and Acquisition of Immovable Propelty Act, there is 110
  provisio11 to pay enhanced solatium a11d interest-Amendment Act 68 of 1984
  has no application-The District Cowt has 110 jurisdiction to ame11d the
  award Ulld to gram solatiwn and interest exercising the power under Sections
   151 and 152 of tlte Code of Civil Procedure-The High Cowt, therefore, has
E committed manifest e"or of jurisdiction in not removing the en-or committed       . 1
  by the Tribunal.

          CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 2942-49
    of 1997.

F        From the Judgment and Order dated 13.5.83 of the Punjab &
    Haryana High Court in C.R. Nos. 1220-27 of 1987.

         Mrs. K. Amreshwari, Wasim A. Qadri and Mrs. Anil Katiyar for the
    Appellants.

G         Mrs. S. Bagga and Tanuj Bagga for the Respondents.

          The following Order of the Court was delivered :

          Delay condoned. Substitution ordered.

H         Leave granted.
                                         686
                               U.O.I. v. KARAM SINGH                            687

            We have heard learned counsel on both sides.                                A
             Under Section 7 of the Requisitioning and Acquisition of Immovable
       Property Act, 1952, the property in question was acquired for public
       purpose. The Land Acquisition Collector determined the compensation
       which the respondents had received under protest; and on being dissatis-
       fied the respondents filed objections and arbitrator was appointed who, by       B
·" ·   his Award dated july 6, 1982, enhanced the compensation at different rates.
       On appeal, the learned Single Judge set aside the award of the arbitrator
       and awarded the enhanced compensation uniformly at the rate of Rs. 3,000
       per kanal. Letter Patent Appeal against the same was dismissed on 10th
       January, 1985. It appears that the amount awarded was deposited in court         C
       on March 14, 1986.

             However, on January 2, 1987 the respondents filed an application
       under Sections 151 & 152 of the Code of Civil Procedure before the
       District Judge for direction to grant enhanced solatium and interest in view
       of the Amendment Act, i.e., Act 68 of 1984 which was allowed. On revision        D
       the High Court by the impugned order dated 13th May, 1987, dismissed
       the same. Thus, this· appeal by special leave.

              It is now well settled legal position in law that under the Requisi-
       tioning and Acquisition of Immovable Property Act, there is no provision         E
       to pay enhanced solatium and interest; and Amendment Act, i.e. Act 68 of
       1984 has no application. It is also well settled legal position that the grant
       of solatium and interest is an integral part of the process of determination
       of compensation. The district Court has no jurisdiction to amend the award
       and to grant solatium and interest exercising the power under Sections 151
       and 152 of the Code of Civil Procedure. It is a case of inherent lack of         F
       jurisdiction. The High Court, therefore, has committed manifest error of
       jurisdiction in not removing the error committed by the Tribunal.

              Under the circumstances the appeals are allowed to the extent of
       grant of enhanced solatium and interest, but in the circumstances, without       G
       costs.

       T.N.A.                                                      Appeals allowed.



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