Case Note & Summary
The appellant, Deputy General Manager (presumably of a public sector undertaking), challenged the judgment and decree dated 16.05.2008 passed by the learned Principal Senior Civil Judge, Gandhinagar in L.A.R. Case Nos. 137 to 139 of 2004. The dispute arose from temporary acquisition of land under Section 35(3) of the Land Acquisition Act, 1894. The Special Land Acquisition Officer had passed an award on 02.06.2003 in L.A.Q. Case No. 11/2002/G, granting rental compensation at Rs.5/- per sq. mtr. The claimants sought reference, and the Reference Court, relying on Exhibit-16 (a judgment pertaining to Village Por, District Gandhinagar), awarded additional rental compensation and directed the appellant to pay increased rent with interest at 9% per annum till realization. The appellant contended that the Reference Court exceeded its jurisdiction by granting compensation beyond three years, as temporary acquisition under Section 35(3) limits compensation to three years, and claimants are not entitled to statutory benefits. The appellant relied on the Division Bench decision in Oil and Natural Gas Corporation Ltd. vs. Sankarji Hemaji & 1, which held that the Reference Court has no jurisdiction to grant rental compensation beyond three years and that claimants under temporary acquisition are not entitled to statutory benefits. The High Court allowed the appeals, set aside the impugned judgment and decree, and held that the claimants are entitled to rental compensation only for three years from the date of taking possession, without any statutory benefits or interest on additional rent.
Headnote
A) Land Acquisition - Temporary Acquisition - Section 35(3) Land Acquisition Act, 1894 - Limitation of Compensation - The Reference Court exceeded its jurisdiction by granting rental compensation beyond three years in temporary acquisition proceedings. The Division Bench in ONGC v. Sankarji Hemaji held that no compensation beyond three years is payable under Section 35(3). (Paras 3-5)
B) Land Acquisition - Statutory Benefits - Temporary Acquisition - Section 35(3) Land Acquisition Act, 1894 - Claimants under temporary acquisition are not entitled to statutory benefits such as interest on additional rent or direction to pay increased rent beyond the three-year period. (Paras 3-5)
Issue of Consideration
Whether the Reference Court has jurisdiction to grant rental compensation beyond the period of three years in temporary acquisition proceedings under Section 35(3) of the Land Acquisition Act, 1894, and whether claimants are entitled to statutory benefits and interest on additional rent.
Final Decision
The appeals are allowed. The impugned judgment and decree dated 16.05.2008 passed by the learned Principal Senior Civil Judge, Gandhinagar in L.A.R. Case Nos. 137 to 139 of 2004 are set aside. The claimants are entitled to rental compensation only for three years from the date of taking possession, without any statutory benefits or interest on additional rent.
Law Points
- Temporary acquisition under Section 35(3) of Land Acquisition Act
- 1894 limits rental compensation to three years
- claimants not entitled to statutory benefits or interest on additional rent beyond that period
Case Details
R/First Appeal No. 1100 of 2009 with R/First Appeal No. 1101 of 2009 and R/First Appeal No. 1102 of 2009
Ms. Aishwarya Reddy with Ms. Prabhdeep Kaur for M/s Trivedi and Gupta for the appellant, Mr. Chirag Upadhyay, AGP for respondent No. 2
Thakor Gandaji Somaji, Since Deceased Through His Heirs & L.Rs. & Ors.
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Nature of Litigation
First Appeal under Section 54 of the Land Acquisition Act, 1894 read with Section 96 of CPC challenging the judgment and decree of the Reference Court in land acquisition reference cases.
Remedy Sought
Appellant sought to set aside the judgment and decree of the Reference Court granting additional rental compensation beyond three years and statutory benefits.
Filing Reason
The Reference Court granted rental compensation beyond the period of three years and awarded interest at 9% per annum on additional rent, which the appellant contended was beyond jurisdiction.
Previous Decisions
The Special Land Acquisition Officer passed an award dated 02.06.2003 in L.A.Q. Case No. 11/2002/G under Section 35(3) of the Act granting rental compensation at Rs.5/- per sq. mtr. The Reference Court in L.A.R. Case Nos. 137 to 139 of 2004 enhanced the compensation.
Issues
Whether the Reference Court has jurisdiction to grant rental compensation beyond three years in temporary acquisition under Section 35(3) of the Land Acquisition Act, 1894?
Whether claimants under temporary acquisition are entitled to statutory benefits and interest on additional rent?
Submissions/Arguments
Appellant argued that the Reference Court exceeded its jurisdiction by granting compensation beyond three years, as temporary acquisition under Section 35(3) limits compensation to three years, and claimants are not entitled to statutory benefits.
Appellant relied on the Division Bench decision in ONGC vs. Sankarji Hemaji which held that no compensation beyond three years is payable and no statutory benefits are available.
Ratio Decidendi
Under Section 35(3) of the Land Acquisition Act, 1894, temporary acquisition of land limits rental compensation to a period of three years. The Reference Court has no jurisdiction to grant compensation beyond that period. Claimants under temporary acquisition are not entitled to statutory benefits such as interest on additional rent or direction to pay increased rent beyond the three-year period.
Judgment Excerpts
the learned Reference Court has exceeded its jurisdiction by granting compensation / rent beyond the period of limitation of three years.
the claimants under temporary acquisition proceedings are not entitled to any statutory benefits nor entitled to receive compensation beyond the period of three years.
the learned Reference Court has no jurisdiction to grant rental compensation beyond the period of three years.
Procedural History
The Special Land Acquisition Officer passed an award on 02.06.2003 in L.A.Q. Case No. 11/2002/G under Section 35(3) of the Act. The claimants sought reference, and the Reference Court passed judgment and decree on 16.05.2008 in L.A.R. Case Nos. 137 to 139 of 2004, enhancing compensation. The appellant filed First Appeals under Section 54 of the Act read with Section 96 of CPC, which were heard and decided on 05.01.2026.
Acts & Sections
- Land Acquisition Act, 1894: Section 35(3), Section 54
- Code of Civil Procedure, 1908: Section 96
