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Supreme Court of India

URBAN IMPROVEMENT TRUST, JODHPURversusGOKUL NARAIN AND ANR.

Citation
1996 INSC 502
Decided
10 April 1996
Disposal
Appeal(s) allowed

Holding

The decree awarding solatium, interest and additional amount under the Central Land Acquisition Act was a nullity because the Rajasthan Urban Improvement Act does not provide for such benefits and the amendment applies only prospectively, and a nullity may be contested at the execution stage; substitution of legal representatives within the statutory period prevents abatement of the appeal.

Summary

The Urban Improvement Trust (Jodhpur) acquired land of Gokul Narain under Section 52 of the Rajasthan Urban Improvement Act, 1959 and paid compensation. The High Court later enhanced the compensation and, applying the Central Land Acquisition Act, 1894 (as amended), awarded solatium, interest and additional amount, which the Trust contested. The Trust raised objections in execution under Section 47 CPC, claiming the award of additional benefits was beyond the State Act’s scope and therefore a nullity, and also sought substitution of the deceased respondent’s legal representatives within 30 days of death. The Supreme Court held that the State Act does not empower solatium or additional amount, the amendment applies only prospectively, and the award of such benefits was a jurisdictional nullity that can be challenged even at the execution stage; it also held that the substitution application prevented abatement of the appeal. Consequently, the Court set aside the lower courts' orders, directed recomputation of compensation with only interest at 6% per annum, and allowed the appeal.

Issues considered

  • The death of a party and whether substitution of legal representatives within 30 days under Order 22 Rule 4 CPC averts abatement of the appeal.
  • Whether the Rajasthan Urban Improvement Act, 1959 authorises solatium, interest and additional amount, and whether the Central Land Acquisition Act, 1894 (as amended) can be applied to awards made before its amendment.
  • Whether the award of solatium, interest and additional amount under Sections 23(2), 28 and 23(1‑A) of the Central LA Act is jurisdictionally valid for land acquired under the State Act.
  • Whether a decree that is a nullity can be challenged at the execution stage under Section 47 CPC.
  • Whether the appellant may raise objections to the execution of the decree under Section 47 CPC.

Legislation cited

Subjects

land acquisitionsolatiumadditional amountnullity of decreeexecution of decreeCPC Order 47substitution of legal representativesRajasthan Urban Improvement ActCentral Land Acquisition Actamendment applicability

Judgment

A                URBAN IMPROVEMENT TRUST, JODHPUR
                                v.
                      GOKUL NARAIN AND ANR.

                                  APRIL 10, 1996

B               [K. RAMASWAMY AND G.B. PATTANAIK, JJ.]

          Rajasthan Urban Improvement Act, 1959: Sections 52 and 60.

        Acquisition of land-Solatium and additional amount-Not provided
C for-Land Acquisition Act, 1894-Provisions of-Made applicable to acquisi-
  tions under State Act-Held: Solatium and additional amount could not be
  applied to award made prior to coming into force of State Act-Such an order
  was a nullity---Could be assailed at any stage including at the execution or in
  a collateral proceedin[jDistrict Judge directed to correct decree and recom-
  pute liability to pay compensation-Land Acquisition Act, 1894, Sections
D 23(1-A), 23(2) and 28.

           Code of Civil Procedure. 1908 :

           Order 22, Rule JOA-Death of party---Legal representatives-Substitu-
    tion of-Application filed within 30 days from date of knowledge of
E
    death----Counsel appearing in executing court did not intimate death to counsel
    appearing in Supreme Court-Held : lapse of counsel could not be construed
    to be knowledge of death-Hence, Special Leave Petition did not abate.

           Order 47-Execution of decree which was a nullity and non-set-its
F   nullity could be assailed even at the execution stage or in a collateral
    proceeding.

           The land of the first respondent was acquired under Section 52 of
    Rajasthan urban Improvement Act, 1959 and comnensation was answered.
    On appeal, the High Court while enhancing the compensation also
G · awarded solatium, interest and adlditional amount under Sections 23(2),
    28 and 23(1A) of Land Acquisition Act, 1894. In the meanwhile, the
    appellant had paid a part of the compensation amount. The respondent
    filed the execution petition before the District Judge for recovery of the
    balance amount. The appellant filed objections under Section 47 of the
H Code of Civil Procedure, 1908 and claimed refund of excess amount paid
                                         148
           URBANIMPROVEMENTTRUST v. GOKULNARAIN                            149

 to the respondent. The District Judge dismissed the objections. On A
 revision, the High Court dismissed the claim. Aggrieved by the High
 Court's judgment the appellant preferred the present appeal.

        The Act was amended by reason of which the Central Land Acquisi-
 tion Act became applicable to acquisition under the Act. Section 60A of the
 Act made transitory provisions a1iplicable to the pending matters. Pending       B
 the special leave petition in this Court, the first respondent died. A notice
 was issued and when the notice was not served, the appellant was per-
 mitted to take dasti service and when the notice was taken, the appellant
 was informed that the first respondent had died. Consequently, applica-
 tion for substitution under Order 22, Rule 4, CPC was filed within 30 days       C
 of the date of knowledge of death. The legal representatives of the deceased
 first respondent were brought on record in the executing court.

        On behalf of the appellant it was contended that under the Act there
 was provision to grant interest only; that the High Court inherently lacked
 jurisdiction to apply the provisions of Central LA Act to acquisition under D
 the Act; that the order to award solatium, interest and additional amount
 under Sections 23(2), 28 and 23(1-A) of Central LA Act was a nullity; that
 nullity of the decree could be challenged even in execution; and that the
 respondent was not entitled to these additional benefits.
                                                                                  E
         On behalf of the respondent it was contended that the application
  for substitution of legal representatives was barred by limitation; that the
  special leave petition had abated and, therefore, the appeal was not main-
  tainable; that the order awarding additional benefits was allowed to be-
. come final; that though the High Court wrongly applied the Central LA
  Act, it did not lack inherent jurisdiction; that having allowed the decree to   F
  become final it would not be open to the appellant to contend that the
  decree was a nullity; that Section 47, .CPC contemplated correcting the
  errors in execution, discharge or satisfaction of the decree; and that the
  appellant was not entitled to raise objection to the execution of the decree
  which amounted to its review and did not come within the ambit of Section       G
  47, CPC.

       Allowing the appeal, this Court

       HELD : 1.1. Under Order 22, Rule lOA of the Code of Civil Proce-
 dure, 1908, whenever a pleader appearing for a party to the suit comes to H
    150                   SUPREME COURT REPORTS [1996] SUPP.1 S.C.R.

A the knowledge of the death of the party, he was to 'inform about it and the
    court thereupon gives notice of such death to the other party and for this
    purpose the contract between the pleader and the ~eceased party is deemed
    to subsist. It would, therefore, be clear that though the legal repre-
    sentatives have been brought on record in the executing Court pending
    proceedings in this Court, since the counsel for th~ appellant did not have
B   the information, on coming to know of the death after dasti service was
    taken out, immediately application under Order 22, Rule 4, CPC came to
    be filed within 30 days of the date of the knowledge. Accordingly, there is
    no abatement of the appeal. [154-E-G]

C         1.2. The State is not expected to keep watch over the survival of the
    respondent and lapse of counsel to intimate to the counsel appearing in
    this Court cannot be construed to be knowledge of death. Even if it is
    assumed that abatement was caused, since application was filed under
    Order 22, Rule 4, CPC within 30 days from the date of the knowledge there
D   is no delay in making the application to bring the legal representatives on
    record in this appeal. There is, hence, no abatement by reason of the death
    of the respondent. The application to bring the legal representatives is
    accordingly ordered. [154·G-H; 155-A]

          2.1. Rajasthan Urban Improvement Act, 1959 does not provide for
E payment of solatium and additional amount. It empowers the Court to award
    interest @ 6% on the amount awarded from the date of taking possession.
    TI1e appellant having allowed the enhanced compensation, though on wrong
    principle, to become final, it is bound by it. The only objection raised by the
    appellant is as to the executability of the decree of additional benefits under
F   Land Acquisition Act, 1894. The respondent is entitled only to the principal
    amount and interest @ 6% per annum from the date of taking possession. It
    is settled law that determination of the compensati011 under Section 23(1) of
    Central LA Act is towards market value of the land prevailing as on the date
    of the publication of the Section 4(1) notification in the Gazette. Equally, so
    under Section 52 of the Act. [155-H; 156-A-C]
G
           2.2. It is settled law that payment of additional amount is inde-
     pendent of the compensation determined for the value of the land. They
     are not part of the component of the compensation for value of the
     acquired land. They are in addition to and independent of the component
H    of the compensation under Section 23(1) of Central LA Act or Section 52
          URBAN IMPROVEMENTTRUST v. GOKULNARAIN                             151

of the Act. The payment of solatium, interest and additional amount under A
Sections 23(2), 28 and 23(1-A) is in addition to the payment of the
compensation in terms of the provisions of the Act under which the
property came to be acquired. The Act does not provide for payment of
solatiurn and additional benefit except interest @ 6o/c per annum frorn the
date of taking possession. Under the Central LA Act payment of additional
                                                                              B
amount under Section 23(1-A) and of solatium under Section 23(2) cannot
be applied to the award made prior to coming into force of the amended
Act. Section 60A of the Act provides that notwithstanding anything con-
tained in Section 52 (1) of the Act, where any matter relating to acquisition
of land is pending on the date of the commencement of the amendment
such matters being conducted or action taken, shall be subject to the C
provisions of the Central LA Act. [159-H; 160-A-E]

      Prem Nath Kapur & Anr. v. National Fe1ti/isers C01poration of India
Ltd. & Ors., [1966] 2 SCC 71; Union of India v. Raghubir Singh, [1989] 2
SCC 754; K.S. Pwipooman (II) v. State of Kera/a, [1995] 1 SCC 367 and             D
Unio11 of I11dia v. Han Kishan Klwsla, (1993] Supp. 2 SCC 149, relied on.

       State of Punjab v. Avtar Singh & Ors., [1995] 1 SCC 383; State of
Punjab &Anr. v.Babu Singh & Ors., (1995] Supp. 2 SCC 406,Major Pakhar
SinghAtwal & Ors. v. State of Punjab & Ors., [1995] Supp. 2 SCC 401; Union
of India v. Rangila Ram (Dead) by LRs., [1995] 5 SCC 585; Gurdial Singh           E
& Anr. v. State of Pu11jab, (1995] 3 SCC 333, Improvement 7iust, Patiala v.
Lwid Acquisition Tribunal & Ors., (1995] 3 SCC 724; Union of India & Ors.
v. Pratap Kaur (Smt.) (Dead) through LRs. &Anr., [1995] 3 SCC 263; State
of Maharashtra v. Maharau Srawan Hatkar, [1995] 3 SCC 316; Ishwarlal
Premchand Shah & Ors. Etc. Etc. v. State of Gujarat & Ors., [1996] 4 SCC
174 and Umed Industries and Land Development Co. & Ors. v. State of               F
Rajasthan & Ors., (1995] 2 SCC 563, referred to.

       3.1. The Central LA Act has no application to the lands acquired and
the Act. It was amended and made applicable only to the pending proceed-
ings. It would, therefore, be clear that the order awarding additional benefits   G
is clearly without jurisdiction and thereby it is a nullity. A decree passed by
such a Court is a nullity and is non-est. Its nullity can be assailed at any
stage including at the execution or in a collateral proceeding since it strikes
at the very jurisdiction and authority of the Court. [160-H; 161-H]

      3.2. In the instant case the findings of the District Judge and the High H
    152                   SUPREME COURT REPORTS [1996] SUPP. 1 S.C.R.

A   Court that the appellant is not entitled to raise objection in the execution,
    is wrong in law. It should be considered in execution only under Section 47
    CPC and not by a separate suit. The orders or th~ District Judge and the
    High Court stand set aside. The District Judge is directed to correct the
    decree accordingly and recompute the liability to' pay compensation and
    pass appropriate orders according to law. (161-H; 162-A-C]
B
          Sushi/ Kumar Mehta v. Gobind Ram Balun (Dead) through his Ll:I'.,
    [1990] 1 sec 193, followed.

          Jaipur Development Authority v. Radhey Shyam & Ors., [1994]4 SCC
    370, referred to.
c
        Hirata/ Moo/chand Doshi v. Barotraman Lal Ranchhoddas, [1993] 2
    sec 458, held inapplicable.
            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6963 of
    1996.
D
         From the Judgment and Order dated 27.5.94 of the Rajasthan High
    Court in S.B.C.R. No. 553 of 1993.

            B.D. Sharma and Piyush for the Appellant.

E        Manoj K. Das, Aruneshwar Gupta, Arvind Kumar and Mrs. Laxmi
    Arvind for the Respondents.

            The Judgment of the Court was delivered by

            K. RAMASWAMY, J. Leave granted.
F
        This appeal by special leave arises from the judgment dated May 27,
  1994 made in Civil Revision No. 553 of 1993 by a learned single Judge of
  the Rajasthan High Court at Jodhpur. The admitted facts are that under
  Section 52 of the Rajasthan Urban Improvement Act, 1959 (for short, the
  'Act') the land of Gokul Narain, the first respondent, along with other lands
G for construction of over-bridge was acquired and possession thereof was
  taken on June 22, 1965. The Additional Collector made .his award on June
  30, 1976 awarding a sum of Rs. 70,699.82 as compensation which included
  value of the building also. On appeal, the district Judge by order dated
  January 27, 1978 enhanced the compensation to Rs. 2 per square foot. The
H appellant as well and the respondents carried the matter in revision to the
       URBANIMPROVEMENTTRU5f v. GOKULNARAINIK.RAMASWAMY,J.) 153

     High Court. By order dated March 18, 1983 the High Court remanded the A
     matter to the District Judge, with certain directions, for fresh disposal
     thereof. The District Judge by order dated November 19, 1985 enhanced
     the compensation to Rs. 11.50 per square foot and on further revision and
     remand by the High Court by order dated December 18, 1989 also applied
     the provisions of the Lan.d Acquisition Act, 1894 (Central LA Act) as B
     amended by Act 68 of 1984 and awarded solatium, interest and additional
     amount under Sections 23 (2), 28 and 23 (1-A) of the Central LA Act. In
     the meanwhile, the appellant had paid the compensation amount on March
    7, 1977 in a sum of Rs. 1,18,760 and a further sum of Rs. 44,195.60 on May
     11, 1982. The respondent claimed adjustment of the said amounts towards C
    interest and filed the execution for the balance amount. The High Court
    by order dated August 4, 1988 dismissed the revision of the respondent
    claiming adjustment of the amounts paid towards interest and his entitle·
    ment to claim the balance amount observing that the respondent is not
    entitled to benefit under Act 68 of 1984. The respondent filed the execution
    for recovery of the balance amount. The appellant filed objections under D
    Section 47 of the Code of Civil Procedure, 1908 (CPC) claiming that the
    cost of the acquired land worked out @ Rs. 11.50 per square foot to Rs.
    1,19,026.22 and the cost of the building was Rs. 3,423.00. Interest payable
    @ 6% for period from June 22, 1965 upto July, 3, 1977, the date of deposi~
    worked out to Rs. 85,981.16. The total compensation payable and interest E
    worked out to Rs. 2,08,432.36. The balance excess amount as on that date
    including interest was Rs. 89,672.38. Interest on the balance principal
    compensation @ 6% from that date upto May 11, 1982 worked out to Rs.
    90,819.12. Balance compensation amount as on May 11, 1982 and interest
    thereon was Rs. 90,819.12. Rs. 44,195.60 was paid on the said date. Balance
                                                                                   F
    amount of interest after deducting the said amount was Rs. 46,623.62. The
    amount paid in compliance of the order of the High Court dated December
    12,1987 was Rs. 1,23,000. Therefore, the excess amount paid to the respon-
    dent was Rs. 76,376.38. Interest calculated @6% on the said excess amount
    for period from the date of the deposit till date of objections, viz., January
    16, 1991 to which the appellant claims to be entitled is Rs. 14,231.46. Thus G
    the appellant claims that he is entitled to receive from the respondents a
    total refund of Rs. 90,607.84 plus interest thereon @6% from January 18,
    1991 till date of decision. The District Judge by the impugned order dated
    April 25, 1984 had dismissed the objections. On revision, the High Court
    by the impugned order dismissed the claim. Thus this appeal by special H


r
    154                  SUPREME COURT REPOR1'S [1996] SUPP. 1 S.C.R.

A leave.

          The Act was amended by Rajasthan Amendment Act 29 of 1987
    which came into force w.e.f. August 1, 1987. By reason thereof, the Central
    Amendment Act 68 of 1984 become applicable lo acquisition under the
    Act from August 1, 1987. Section 60A of the Act, as inserted by the
B   Amendment Act 29 of 1987, made transitory provision applicable to the
    pending matters. Pending the special, leave petition, the first respondent
    died on February 17, 1995. A notice was issued on January 2, 1995. When
    the notice was not served, the appellant was permitted to take out dasti
    service by order dated February 5, 1996 and when the notice was taken,
C   the appellant was informed that the respondent had died. Consequently,
    application for substitution under Order 22, Rule 4, CPC was filed on
    February 12, 1996. The legal representatives received the notice as per the
    orders of this Court dated March 18, 1996. We have heard learned counsel
    on both sides.

D
         It is stated in the written arguments of the counsel for the respon-
  dents that the District Judge by order dated May 27,' 1995 brought the legal
  representatives of the first respondent on record. When application came
  to be filed in the District Court on May 5, 1995 to the knowledge of the
  counsel for the appellant, it was ordered on May 27, 1995. The application
E for substitution is barred by limitation. The special leave petition had
  abated and, therefore, appeal is not maintainable. We find no force in the
  contention. Under Order 22, Rule lOA, CPC, whenever a pleader appear-
  ing for a party to the suit comes to the knowledge of the death of the party,
  he has to inform about it and the court thereupon gives notice of such
F death   to the other party and for this purpose the contract between the
  pleader and the deceased party is deemed to subsist. It would, therefore,
  be clear that though the legal representatives have been brought on record
  in the executing Court on May 27, 1995 pending proceedings in this Court,
  since the counsel for the appellant did not have had the information, on
  coming to know of the death after dasti service was taken out, immediately
G application under Order 22, Rule 4, CPC came to he filed within 30 days
  of the date -0f the knowledge. Accordingly, there is no abatement of the
  appeal. The State is not expected to keep watch over the survival of the
   respondent and lapse of rounsel to intimate to the counsel appearing in
   this Court cannot be construed to be knowledge of death. Even if it is
H assumed that abatement was caused, since application was filed under

                                                                                  •
         URBAN IMPROVEMENfTRUST v. GOKUL NARAIN [K RAMASWAMY.J.l 155


      Order 22, Rule 4, CPC within 30 days from the date of the knowledge there      A
      is no delay in making the application to bring the legal representatives on
      record in this appeal. There is, hence, no abatement by reason of the death
      of the respondent. The application to bring the legal representatives is
      accordingly ordered.
                                                                                     B
             It is contended by Shri Badridas Sharma, learned counsel for the
      appellant that the Amendment Act 68 of 1984 was extended for the
      acquisition of the land under the Act w.e.f. August 1, 1987. Under the Act,
.>-
      there is no provision for payment of solatium, interest and additional
      amount either under the State Land Acquisition Act, 1953 or the Central
      LA Act, The Act grants interest @ 6%. The District Judge, therefore, was       c
      wrong in applying the provisions of the Central LA Act as amended by Act
      68 of 1984. The District Judge, inherently lacked jurisdiction to apply the
      provisions of Amendment Act 68 of 1984. The order dated December 18,
      1989 is a nullity to award solatium, interest and additional amount_ under
      Sections 23 (2), 28 and 23 (1-A) of the Central LA Act as amended by Act       D
      68 of 1984. Nullity of the decree can be raised even in execution. The
      objection, therefore, was accordingly raised. The respondent is not entitled
      to claim these additional benefits except the principal amount @ Rs. 11.50
      per square foot and interest @ 6%. The District Judge as well as the High
      Court, are, therefore, wrong in law in dismissing the objections.
                                                                                     E
             Shri Arvind Kumar, Learned counsel for the respondents contended
      that the order awarding additional benefits under Sections 23(2), 28 and
      23 (1-A) of the Central LA Act as amended by Act 68of1984 was allowed
      to become final. The Court, though wrongly, applied the Amendment Act,
      it did not lack inherent jurisdiction. Therefore, having allowed the decree F
      to become final, it would not be open to the respondent to contend that
      the decree is a nullity. It is further contended that Section 47, CPC
      contemplates correcting the errors in execution, discharge or satisfaction
      of the decree. The modification sought by way of objections amounts to
      review of the decree which has become final. Therefore, it does not come
      within the ambit of Section 47, CPC. The question, therefore, is : whether G
      the District Judge and the High Court were right in concluding that the
       appellant was not entitled to raise the objections to the execution of the
       decree? The admitted position is that the Act does not provide for payment
       of solatium and additional amount. It empowers the Court to award
      interest @.6% on the amount awarded from the date of taking possession. H
    156                  SUPREME COURT REPORTS [1996] SUPP. l S.C.R.

A The appellant having allowed the enhanced compensation at Rs. 11.50 per
    square foot, though on wrong principle, to bec~me final, it is bound by it.
    The only objection raised by the appellant is as to the executability of the
    decree of additional benefits under Central Amendment Act 68 of 1984.
    The respondent is entitled only to the principal amount and interest @ 6%
    per annum from the date of taking possessioh, viz., June 22, 1965. The
B
    amounts claimed and paid have already been specified and hence need no
    reiteration. It is settled law by catena of decisions of this Court that
    determination of the compensation under Sectipn 23 (1) of the Central LA
    Act is towards market value of the land prevailing as on the date of the
    publication of the Section 4(1) notification in the Gazette. Equally, so
c   under Section 52 of the Act.

        In Prem Nath Kapur&Anr. v. National Fertilisers C01poration of India
  Ltd. & Ors. , [1996] 2 SCC 71 a three-Judge Bench of this Court had
  considered the scope of power to award additional benefits under Section
D 23(2), 28 and 23(1-A) of the Central LA Act and of the jurisdiction of the
    court to decide as to when they are to be awarded; on what items interest
    and solatium is claimable and upto what date. Equally, of the power to
    adjust the amount towards interest was consiqered. The facts in that case
    were that the notification under Section 4(1) was published on February 5,
    1973. On October 5, 1975, the Collector made his award. On January 24,
E
    1980 the reference Court enhanced the compensation. The Higb Court
    dismissed the revision on May 23, 1983. When an application was made
    later, the High Court awarded damages for severance and on further
    application it awarded so!atium, interest and additional amount under the
    Amended Central LA Act. In execution, the respondent raised the objec-
F   tion as to the executability of the decree of the enhanced solatium, interest
    and additicfoal amount. The executing Court overruled the objections. The
    High Court allowed the revision. The appellant had computed the total
    liability deducting the amount paid towards interest and additional amount
    payable including interest on solatium, solatium and interest on additional
G   amount under Section 23(1-A) and interest! till the date of satisfaction
    under Order 21, Rule 1 CPC and laid execution for the balance amount
    with interest. The appellant had raised objeetions which were rejected by
    the executing Court. In the revision, the HisJi Court set aside the order
    and directed to compute the principal amount, adjust the amounts
H   deposited towards principal amount and to proceed with the execution of
       URBANIMPROVEMENTTRUST "· GOKULNARAIN[KRAMASWAMY,J.] 157

    the balance amount. When the special leave petition was filed, another A
    Bench of this Court suo motu issued notice as to why the additional
    benefits ordered under Sections 23 (2), 28 and 23 (1-A) as well-as damages
    for severance and additional benefits thereon should not be set aside.
1
    When the maller came up on reference before a three-Judge Bench, this
    Court had held that payment of solatium under Section 23(2) and addition-
                                                                                  B
    al amount under Section 23(1-A) are "in addition to" the compensation
    determined under Section 23(1). Payment of interest under Section 28 is
    on the excess amount or part thereof awarded on reference under Section
    26 or on appeal under Section 54. The award of each component is
    independent, after determination of market value under Section 23(1). The
    Court gets jurisdiction to award additional benefits under Sections 23 (2),  c
    28 and 23 (1-A) only when the Court enhances the compensation and is
    not independent of the power under section 23(1). IL was held that the
    claimants were not entitled to solatium under Section 23(2), interest under
    Section 28 and additional amount under Section 23(1-A). The liability to
    pay interest subsists till date of deposit of the amount into Court. There is D
    no liability to pay interest on solatium; or solatium and interest on addi-
    tional amount under Section 23(1-A) which cannot be calculated and
    claimed in execution. The claimant cannot adjust the amount deposited
    and received towards principal amount as against interest. The doctrine of
    Section 60 of the Contract Act is inapplicable to the execution of the award
                                                                                  E
    under the Act. Therefore, the claimant cannot appropriate the amounts
    paid for compensation towards interest.

           In Union of India v. Raghubir Singh, [1989] .2 SCC 754, a Constitution
    Bench of this Court had held that the claimant is not entitled to the benefit
    of the Amendment Act 68 of 1984 in the pending appeals to pay enhanced F
    solatium and interest covered by transitory Section 30 of the Amendment
    Act 68 of 1984. It would be applicable only when the proceedings are
    pending either before the reference Court or the Land Acquisition Officer.
    In KS. Pmipooman (II) v. State of Kera/a, [1995] 1 SCC 367 another
    Constitution Bench per majority had held that the claimant is not entitled G
    to additi9nal amount when the award was made or possession taken before
    the artlendment Act was introduced. Since both the events had occured
    prior to the introduction of Amendment Act 68 of 1984, the claimant was
    not entitled to additional amount. That ratio is being followed in catena of
    decisions of this Court subsequently including Prem Nath Kapur's case
    (supra).                                                                      H
    158                   SUPREME COURT REPORTS [199~] SUPP. 1 S.C.R.

A         In State of Punjab & Anr. v. Jagir Singh & Ors., [1995] Supp. 4 SCC
    626 the Additional District Judge had enhanced the ~ompensation on
    March 2, 1978. When the State had gone in appeal, while dismissing the
    State appeal the High Court granted benefits of the enhanced solatium,
    interest and additional amount under Section 23(2), 28 and 23 (1-A).
    Objections were raised in execution. When it was rejected, this Court had
B
    held that the High Court had no power to award the statutory benefits. It
    was, therefore, held that the award of the High Court of the additional
    benefits was without jurisdiction. This ratio is an authority for proposition
    that though the High Court has power under Section 54 to entertain
    appeal, it lacks jurisdiction to award independently additional benefits
c   under the Amendment Act, when it confirms the award of the reference
    Court. In State of Punjab v. Avtar Singh & Ors., [1995] 1 SCC 383 after the
    disposal of the appeal by the High Court on November 11, 1982, an
    application came to be made under sections 151 and 152 CPC after the
    Amendment Act 68 of 1984 came into force. Upon that the High Court on
D   July 22, 1986, had granted the benefits under Act 68 of 1984. On appeal,
    this Court had held that high Court had no power to award the additional
    benefits. The same view was reiterated in State of Punjab & Anr. v. Babu
    Singh & Ors., [1995] Supp. 2 SCC 406; Major Pakhar Singh Atwa/ & Ors. v.
    State of Punjab & Ors., [1995] Supp 2 SCC 401; Union of India v. Rangila
    Ram (Dead) by Lrs., [1995] 5 SCC 585; Gurdial Singh o;f: Anr. v. State of
E   Punjab, [1995] 3 SCC 333 and Improvement Tmst, Patiala v. Land Acquisi-
    tion Tribunal & Ors. [1995] 3 SCC 724.

        In Union of India & Ors. v. Pratap Kaur (Smt.) (Dead) through LRs.
  & Anr., (1995] 3 SCC 263, the facts were that the High Court had disposed
F of the appeals under Section 54 of the Central LA Act wpich became final.
  Thereafter, miscellaneous applications were filed before the Additional
  District Judge to redetermine the compensation. He enhanced the com-
  pensation on redetermination applying the principle of belting. When the
  order came to be questioned, the High Court dismissed the revision. On
  appeal, this Court had held that District Court had no jurisdiction under
G Section 13-A of the Central LA Act as it was neither a, clerical error nor
  an arithmetical mistake. The order was held to be without jurisdiction. The
  Court gets jurisdiction only on a valid reference made under Section 18.
  This case is an authority for the proposition that Court has no inherent or
  independent power to determine compensation except on a reference
H under Sectipn 18 and so District Judge has no inherent jurisdiction or
   URBANIMPROVEMEl>'TTRUST v. GOKULNARAIN[K.RAM'ASWAMY,J.) 159


authority to award compensation under the guise of correcting the award       A
or decree under section 13A.

       In State of Maharashtra v. Maharau Srawn Hatkar, [1995] 3 SCC 316,
after the decree of the enhanced compensation became final, on an ap-
plication filed, the Civil Judge awarded the additional benefits under the
Amendment Act 68 of 1984 and the High Court dismissed the appeal. This
                                                                              B
Court had held that the Civil Court.had no jurisdiction to amend the decree
awarding additional benefits under Amendment Act, 68 of 1984. In other
words, the award of additional benefits was held without jurisdiction and
authority of law. In Ishwaralal Premchand Shah & Ors. Etc. Etc. v. State of
Gujarat & 01~., (1996] 4 SCC 174 a contention was raised that though the      c
parties had entered into an agreement under Section 11(2) of the Central
La Act, they are entitled to the additional benefits under Sections 23(2),
28 and 23(1-A) since those components are part of the compensation. The
Land Acquisition Officer did not make an award in terms of the form
prescribed which included the additional amounts. This Court has held that    D
payment of additional amounts is not part of the compensation. They are
distinct and inqependent. On the parties having entered into an agreement
under Section 11(2), they are entitled to compensation only in terms of the
contract and not under the Act. In Union of India v. Hari Kishan Khosla,
(1993] Supp. 2 SCC 149 a three-Judge Bench of this Court had held that
payment of solatium, interest and additional amount for the properties        E
acquired under the Requisition and Acquisition of Immovable Property
Act 1952 would not be made, since the Act does not provide for such
payment. _

      In Umed Industries and Land Development Co. & Ors. v. State of          F
Rajasthan & Ors., [1995] 2 SCC 563, the question arose : whether the
Amendment Act G8 of 1984 would be available to the lands acquired under
the Act, and Rajasthan Land Acquisition Act, 1953' It was held that by
operation of Section 60A of Rajasthan Amendment Act 29 of 1987, the
Central Amendment Act would be applicable only with effect from August
1, 1987. Since the proceedings were pending for de_termination of the         G
compensation, it was held that solatium and interest under the Amendment
Act would be applicable, but the claim for additional amount under Section
23(1-A) was rejected.

      It would, thus, be settled law that payment of additional amount is     H
    160                   SUPREME COURT REPORTS [1996) SUPP.1 S.C.R.

A independent of the compensation determined for the value of the land.
    They are not part of the component of the compensation for value of the
    acquired land. They are in addition to and independent of the component
    of the compensation under Section 23(1) of Central L.A Act or Section
    52 of the Act. The payment of solatium, interest and additional amount
    under Sections 23(2), 28 and 23(1-A) is in addition to the payment of the
B
    compensation in terms of the provisions of the Act under which the
    property came to be acquired. Admittedly, the Act doe~ not provide for
    payment of solatium and additional benefits except interest @ 6% per
    annum from the date of taking possession. The Amendment Act 68 of 1984
    would be applicable prospectively from August 1, 1987 to the land acquired
c   thereafter. Act 68 of 1984 would be applicable under section 60A to the
    pending cases as on August 1, 1987 to determination compensation.

          It would be seen that under the Central Amendment Act payment
    of additional amount under Section 23(1-A) and solatium under Section 23
D   cannot be applied to the award made prior to coming into force of the
    Rajasthan Amendment Act 29 of 1987. Section 60A provides that not-
    withstanding anything contained in sub-section (1) of Section 52 of the Act,
    where any matter relating to acquisition of land is pending on the date of
    the commencement of the Amendment Ordinance, viz., August 1, 1987
    such matters being conducted or action taken, shall be subject to the
E   provisions of the Central LA Act. The District Judge was; therefore, not
    right in applying the Amendment Act on December 18, 1989 awarding
    enhanced solatium and interest and additional amount.

          The question then is : whether the objections can be raised in
F   execution? This controversy is no longer res integra. In Sushi/ Kumar Mehta
    v. Gobind Ram Bohra (Dead) through his Lrs., [1990] 1 SCC 193 a three-
    Judge Bench of this Court was to consider whether the nullity of a decree
    can be raised in execution. Under the Haryana Urban (Control) of Rent
    and Eviction) Act, 1973 the building was governed by the provisions of the
    said Act. The Civil Court granted decree of eviction. When objection was
G   raised in execution the executing Court rejected the same. On appeal, this
    Court had held that a decree passed by a Court \vilhout jurisdiction over
    the subject matter or on any other ground which goes to the root of its
    exercise of jurisdiction or inherent jurisdiction, is a nullity. A decree passed
    by such a court is a nullity and is 11011 est. Its invalidity can be set up
H   whenever it is sought to be enforced or is acted upon as a foundation for
       URBAN IMPROVEMENT TRUST v. GOKUL NARAIN [K. RAMASWAMY, J.] 161

    a right even at the stage of execution or in collateral proceedings. The A
    defect of jurisdiction strikes at the authority of the court to pass a decree
    which cannot be cured by consent or waiver of the party. If the court has
    jurisdiction but there is any defect in its exercise of jurisdiction it does not
    go to the root of its authority. Such a defect like territorial jurisdiction
    could be waived by the party which could be corrected only by way of an B
    appeal or revision. In that case it was held that since the decree was a
    nullity the validity was upheld in execution .

•           In Jaipur Development Authority v. Radhey Shayam & Ors'., [1994) 4
    SCC 370 this Court had upheld the same objection raised under Section
    47, CPC when the decree awarding allotment of land in addition to                  C
    compensation was held to be a nullity. That objection was allowed to be
    raised in execution and was upheld. Hirata/ Moo/chand Doshi v.
    Barotraman Lal Ranchhoddas, [1993) 2 SCC 458 relied on by the respon-
     dents is of no avail. In that case though nullity of a decree on the basis of
     a compromise for eviction of a tenant governed by the provisions of the           D
    Rent Act was pressed for acceptance, this Court held that the party cannot
    be permitted to lead fresh evidence as to the existence of that ground for
    eviction. On the facts in that case, it was held that the tenant impliedly
    admitted existence of statutory ground for eviction. Therefore, the decree
    was held lo be not a nullity. As regards the nullity or lack of inherent
    jurisdiction, this Court observed that the decree can be said to be a nullity      E
    if it is passed by a court having no inherent jurisdiction. Erroneous decree
    cannot be said to be a nullity; nor can a decree based on an error be a
    nullity. Nullity has to be understood in the sense that it is ultra vires the
    power of the Court passing the decree and not merely avoidable decree.
    As stated earlier, if the decree strikes at the jurisdiction of the court or the   F
    court lacks jurisdiction it strikes at the very root of the authority to pass
    the order or the decree. As seen, the Amendment Act 68 of 1984 has no
    application to the land.< acquired under the Act. It was amended only w.e.f.
    August 1, 1987 and it was made applicable only to the pending proceedings.
    It would, therefore, be clear that the order awarding additional benefits is
    clearly without jurisdiction and thereby it is a nullity. Its nullity can be       G
    assailed at any stage including at the execution or in a collateral proceed-
    ings since it strikes at the very jurisdiction and authority of the court.

         Under these circumstances, the District Judge and the High Court
    arc not right and their finding that the appellant is not entitled to raise H
    162                  SUPREME COURT REPORTS [1996] SUPP. 1 S.C.R.
                                                                                 -
A   objection in the execution, is wrong in law. It should be considered in
    execution only under Section 47 CPC and not by a separate suit. The orders
    of the District Judge and the High Court stand set aside. The executing
    Court is directed to recompute the liability of the appellant to pay the
    compensation and interest @ 6% from the date of takil)g possession i.e.,
    June 22, 1965 and order execution accordingly. In case it finds that the
B
    appellant is entitled to restitution the same would be ordered under
    Section 144, CPC as prayed for. The District Judge is directed to correct
    the decree accordingly and recompute the liability lo pay compensation in
    the light of the law declared above and pass appropriate order according
    lo law.
c         The appeal is allowed accordingly. In the circumstances, parties are
    directed to bear their own costs.

    V.S.S.                                                   Appeal allowed.


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