Supreme Court Upholds State's Appeal in Land Acquisition Act Case; Denies Amended Benefits to Landowners as Awards Predated 30.4.1982. Section 23(1A), 23(2) and 28 of Land Acquisition Act, 1894 Held Inapplicable Where Collector's and Reference Court Awards Were Made Before 30 April 1982.

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Case Note & Summary

The dispute arose from land acquisition proceedings initiated by the State of Haryana for the public purpose of developing and utilising land in an urban estate in village Hissar. The respondents were landowners whose land was acquired pursuant to a Notification dated 30 January 1973 under Section 4 and a Notification dated 24 July 1973 under Section 6 of the Land Acquisition Act, 1894. The Land Acquisition Collector made an award on 5 September 1973, fixing compensation at Rs. 20,000 per acre for Category A land and Rs. 12,000 per acre for Category B land. Aggrieved by the Collector's award, the respondents sought a reference under Section 18 of the Act before the Additional District Judge, Hissar, who by order dated 23 January 1979 enhanced the compensation amount. The respondents then appealed to the High Court, which by order dated 9 December 1988 further enhanced the compensation and also granted the respondents the benefit of the amended provisions of Sections 23(1A), 23(2) and 28 of the Land Acquisition Act, 1894. The State of Haryana challenged the High Court order before the Supreme Court, contending that the amended provisions were not applicable because both the Collector's award and the reference court award were made before 30 April 1982. The Supreme Court considered the limited question whether the High Court was correct in granting the benefits under amended Sections 23(1A), 23(2) and 28. The Court noted that the Collector's award dated 5 September 1973 and the Additional District Judge's order dated 23 January 1979 were both prior to 30 April 1982. Relying on K.S. Paripoornan v. State of Kerala, (1994) 5 SCC 593, the Court held that the benefit of Section 23(1A) cannot be extended because that provision applies only where the Collector's or court's award is made after 30 April 1982. As regards Sections 23(2) and 28, the Court relied on Union of India v. Raghubir Singh, (1989) 3 SCR 316, and held that the amended benefits under those sections are available only in appeals arising from awards made between 30 April 1982 and 24 September 1984. Since the awards in the present case did not fall within that window, the respondents were not entitled to the amended solatium and interest. Accordingly, the Supreme Court allowed the appeals and set aside the High Court order insofar as it granted the benefit of amended Sections 23(1A), 23(2) and 28 to the respondents. No order as to costs was made.

Headnote

A) Land Acquisition - Additional Amount - Applicability of Section 23(1A) - Land Acquisition Act, 1894, Section 23(1A) - The respondents' land was acquired pursuant to notifications dated 30.1.1973 and 24.7.1973; the Collector's award was made on 5.9.1973 and the Additional District Judge's award on reference under Section 18 was made on 23.1.1979, both before 30 April 1982. The Supreme Court held that the benefit of Section 23(1A) cannot be extended to the respondents because the provision applies only where the Collector's or court's award is made after 30 April 1982, relying on K.S. Paripoornan v. State of Kerala. The High Court order granting this benefit was set aside (Paras 1-2).

B) Land Acquisition - Solatium and Interest - Applicability of Sections 23(2) and 28 - Land Acquisition Act, 1894, Sections 23(2), 28 - The Supreme Court held that the amended benefits of Sections 23(2) and 28 are available only in appeals arising from awards made between 30 April 1982 and 24 September 1984. Since neither the Collector's award nor the reference court award in the present case fell within that period, the respondents were not entitled to the enhanced solatium and interest. The appeals were allowed and the High Court order granting these benefits was set aside, relying on Union of India v. Raghubir Singh (Paras 1-2).

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Issue of Consideration

Whether the High Court erred in granting the respondents the benefit of amended Sections 23(1A), 23(2) and 28 of the Land Acquisition Act, 1894 when both the Collector's award and the reference court award were made before 30 April 1982.

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Final Decision

The appeals were allowed. The order of the High Court dated 9 December 1988, insofar as it granted the benefit of amended Sections 23(1A), 23(2) and 28 of the Land Acquisition Act, 1894 to the respondents, was set aside. No order as to costs.

Law Points

  • Prospective application of amended Land Acquisition Act provisions
  • Section 23(1A) benefits only if Collector's or court's award made after 30 April 1982
  • Sections 23(2) and 28 amended benefits only if award made between 30 April 1982 and 24 September 1984
  • awards made before cut-off dates do not attract amended provisions.
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Case Details

1995 LawText (SC) (05) 37

Civil Appeal Nos. 5654-55 of 1995 (Arising out of S.L.P. (C) Nos. 12914-14A of 1989)

1995-05-10

J.S. Verma, Sujata V. Manohar

1995 SCC (4) 532, 1995 SCALE (3) 607

Maninder Singh, Indu Malhotra, Prem Malhotra

State of Haryana

Shanti Parshad Jain & Ors.

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Nature of Litigation

Civil appeal against a High Court order that enhanced compensation and granted the benefit of amended Land Acquisition Act provisions.

Remedy Sought

The State of Haryana sought to set aside the High Court order granting the benefit of amended Sections 23(1A), 23(2) and 28 of the Land Acquisition Act, 1894 to the respondent landowners.

Filing Reason

The High Court erroneously granted benefits under amended provisions even though the Collector's award and the reference court award were both made before 30 April 1982.

Previous Decisions

Land Acquisition Collector awarded compensation on 5 September 1973; Additional District Judge, Hissar enhanced the award on 23 January 1979; High Court further enhanced the compensation and granted amended benefits on 9 December 1988.

Issues

Whether the High Court was correct in granting the benefit of amended Section 23(1A) of the Land Acquisition Act, 1894 when both the Collector's award and the reference court award were made before 30 April 1982. Whether the High Court was correct in granting the benefits of amended Sections 23(2) and 28 of the Land Acquisition Act, 1894 when the awards did not fall between 30 April 1982 and 24 September 1984.

Submissions/Arguments

The appellant contended that the High Court erred in granting benefits under amended Sections 23(1A), 23(2) and 28 because both the Collector's award and the reference court award were made before 30 April 1982, and the amended provisions were not applicable retrospectively to such awards.

Ratio Decidendi

The benefit of amended Section 23(1A) of the Land Acquisition Act, 1894 is available only where the Collector's or court's award is made after 30 April 1982. The amended benefits of Sections 23(2) and 28 are available only in appeals arising from awards made between 30 April 1982 and 24 September 1984. Since the awards in the present case were made before 30 April 1982, the respondents were not entitled to these amended benefits.

Judgment Excerpts

The only point urged before us by the appellant is in respect of the benefit granted under Sections 23(1A), 23(2) and 28 of the Land Acquisition Act to the respondents. In this case both the award of the Collector as well as the award by the court under a reference under Section 18 of the Land Acquisition Act have been made prior to 30th of April, 1982. Hence the benefit of Section 23(1A) cannot be extended to the respondents. The appeals are accordingly allowed and the order of the High Court insofar as it grants the benefit of amended Sections 23(1A), 23(2) and 28 to the respondents, is set aside.

Procedural History

Land acquisition notifications under Sections 4 and 6 of the Land Acquisition Act, 1894 were issued on 30 January 1973 and 24 July 1973 respectively. The Land Acquisition Collector made an award on 5 September 1973. The respondents sought a reference under Section 18, which was decided by the Additional District Judge, Hissar on 23 January 1979, enhancing the compensation. On appeal, the High Court by order dated 9 December 1988 further enhanced the compensation and granted the benefit of amended Sections 23(1A), 23(2) and 28. Special Leave Petitions were filed in 1989 and later converted into Civil Appeals Nos. 5654-55 of 1995. The Supreme Court decided the appeals on 10 May 1995.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 6, Section 18, Section 23(1A), Section 23(2), Section 28
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