Case Note & Summary
The appeals arose from land acquisition proceedings where the Land Acquisition Officer offered compensation at Rs.1.36 crore per acre. The Reference Court enhanced the compensation to approximately Rs.3.87 crores per acre. Both the acquiring authority (Greater Mohali Area Development Authority) and the landowners filed first appeals in the High Court of Punjab and Haryana. The High Court passed an interim order directing the appellant to deposit Rs.3.50 crores per acre within 3 months along with statutory benefits, allowing landowners to withdraw the same. The appellant challenged this interim order before the Supreme Court. The Supreme Court heard counsel for both sides and modified the High Court's order. It directed the appellant to deposit the entire awarded sum within 3 months. Upon deposit, landowners could withdraw 50% on furnishing solvent security, and the remaining 50% would be invested in an FDR in a nationalized bank in the name of the Registrar of the High Court. The withdrawal and deposit were subject to the final outcome of the appeals. The Court also requested the High Court to dispose of the appeals within a year. The appeals were allowed in part, modifying the impugned orders accordingly.
Headnote
A) Land Acquisition - Interim Order - Deposit and Withdrawal - The Supreme Court modified the High Court's interim order directing deposit of Rs.3.50 crores per acre, instead directing the appellant to deposit the entire awarded sum within 3 months, with landowners entitled to withdraw 50% on furnishing solvent security and remaining 50% to be invested in FDR in a nationalized bank in the name of the Registrar of the High Court, subject to result of appeals (Paras 13-16).
Issue of Consideration
Whether the High Court's interim order directing deposit of Rs.3.50 crores per acre and withdrawal by landowners was just and proper, and what interim arrangement should be made pending disposal of first appeals.
Final Decision
The Supreme Court allowed the appeals in part, modifying the High Court's interim orders. It directed the appellant to deposit the entire awarded sum within 3 months. Upon deposit, landowners could withdraw 50% on furnishing solvent security, and the remaining 50% would be invested in an FDR in a nationalized bank in the name of the Registrar of the High Court. The withdrawal and deposit were subject to the result of the appeals. The Court also requested the High Court to dispose of the appeals within a year.
Law Points
- Interim orders in land acquisition appeals
- Deposit of entire awarded sum
- Withdrawal of 50% on furnishing security
- Investment of remaining 50% in FDR
- Modification of High Court's interim order
Case Details
Civil Appeal No. 2383 of 2019 (Arising out of S.L.P.(C) No.19238 of 2018) and connected appeals
Abhay Manohar Sapre, Dinesh Maheshwari
Ms. Rachna Joshi Issar for appellant; Mr. V. Giri, Mr. V.K. Garg, Ms. Kaveeta Wadia for respondents
The Greater Mohali Area Development Authority (GMADA) Through Its Estate Officer
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Civil appeals against interim orders passed by the High Court in land acquisition compensation matters.
Remedy Sought
The appellant (GMADA) sought modification of the High Court's interim order directing deposit of Rs.3.50 crores per acre and allowing withdrawal by landowners.
Filing Reason
The appellant felt aggrieved by the High Court's interim order requiring deposit of Rs.3.50 crores per acre and allowing landowners to withdraw the same.
Previous Decisions
The Land Acquisition Officer offered compensation at Rs.1.36 crore per acre; the Reference Court enhanced it to approximately Rs.3.87 crores per acre; first appeals were pending in the High Court; the High Court passed interim orders directing deposit of Rs.3.50 crores per acre.
Issues
Whether the High Court's interim order directing deposit of Rs.3.50 crores per acre and withdrawal by landowners was just and proper.
What interim arrangement should be made pending disposal of first appeals.
Submissions/Arguments
Appellant argued that the High Court's interim order was onerous and sought modification.
Respondents (landowners) supported the High Court's order and sought its affirmation.
Ratio Decidendi
In land acquisition appeals, pending final disposal, the acquiring authority should deposit the entire awarded sum, with landowners entitled to withdraw 50% on furnishing solvent security and the remaining 50% to be invested in an FDR, balancing the interests of both parties.
Judgment Excerpts
The appellant shall deposit the entire awarded sum, which is the subject matter of these appeals in the High Court within 3 months.
On such deposit being made, the respondents (landowners) will be entitled to withdraw 50% of the awarded sum on furnishing solvent security to the satisfaction of the High Court and remaining 50% amount shall be invested in FDR Scheme in any Nationalized Bank in the name of the Registrar of the High Court.
We request the High Court to dispose of the appeals finally preferably within a year.
Procedural History
Land Acquisition Officer offered compensation at Rs.1.36 crore per acre. Reference Court enhanced compensation to approx. Rs.3.87 crores per acre. Both parties filed first appeals in the High Court. High Court passed interim orders directing deposit of Rs.3.50 crores per acre. Appellant challenged interim orders before Supreme Court by way of special leave petitions, which were converted into civil appeals.
