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1996 Supreme(SC) 1485

1997(5) Supreme 254
SUPREME COURT OF INDIA
K. Ramaswamy, Faizan Uddin and G.B. Pattanaik, JJ.
Jaipur Development Authority -Appellant
versus
Mahavir Housing Co-op. Society, Jaipur etc. -Respondents
Civil Appeal No. 12662 of 1996
(Arising out of SLP (C) No. 6519 of 1994)
With
Civil Appeal No. 12663 of 1996
(Arising out of SLP (C) No. 14811 of 1994)
Decided on 18-9-1996
Counsel for the Parties :
For the Appellant : Dr. Shankar Ghose, Sr. Advocate and A.K. Goel, Advocate.
For the Respondents : Tapas Ray, S.M. Jain, Sr. Advocates, Sushil Kr. Jain, A.P. Dhamija, Mrs. Pratibha Jain and Prakash Shrivasatava, Advocates.

Headnote:(i) Land Acquisitions-Rajasthan Land Acquisition Act, 1953-Section 4(1)-Notification under-Acquisition of a large extent of 484 bighas of land for Jaipur Urban Development Scheme-Compensation claim-Determination of-Fraud and collusion between officers entrusted with prosecution on behalf of appellant and claimants-Acquisition proceedings proceeded in collusion-They were not reflected correct market value as is available-Two times more than what was granted by Land Acquisition Officer would be the just compensation is given circumstances of the case-Award of Rs. 15,000/- per bigha and Rs. 22,000/- per bigha respectively. (Para 5 & 6)

       (ii) Land Acquisition (Amendment) Act, 68 of 1984-State of Rajasthan amended the Act by Amendment Act 28 of 1987 w.e.f. August 1, 1987-Central Amendment Act 68 of 1984 would apply from August 1, 1987 to the acquisition in State of Rajasthan-Award of reference Court dated June 15, 1990-Possession delivered on May 24, 1984-Respondent Society not entitled to interest prior to May 25, 1984-Award of additional amount u/s 23 (1-A) is illegal.

       Held : It is seen that in Mahavir Housing Co-operative Society s case, possession was delivered on May 24, 1984 after the stay was vacated by the Civil Court since the civil Court granted stay of dispossession on October 23, 1983. Therefore, the respondent-Society is not entitled to the interest prior to May 25, 1984. Therefore, the decree as regards payment of interest from the date of the notification till May 24, 1984 is clearly illegal. It is seen that since the award of the reference Court is dated June 15, 1990, the claimants will be entitled to interest from May 25, 1984 at the rate of 6% per annum till August 1, 1987 and thereafter 15% per annum on the enhanced compensation till date of deposit in the Court. As regards the solatium is concerned, they are entitled to 30% solatium on the enhanced compensation. As regards the additional amount under Section 23(A-1) is concerned, the claimants are not entitled to the additional amount since the awards came to be passed by the reference Court on October 12, 1981 and July 16, 1981 in Mahavir Housing Co-operative Society and Jai Ambe Co-operative Housing Society Ltd. respectively. (Para 7)

       It is true that in a case where the proceedings were properly conducted and the order was allowed to become final, the matter may be construed to be an order of illegality. When it is one of jurisdiction, this Court has repeatedly, in plethora of precedents, had held that the courts have no jurisdiction to award additional amount under Section 23(1-A) since the Collector had already passed the award under Section 11 and the benefit of additional amount would be confined to the period between the date of the notification under Section 4(1) and the award under Section 11 when the proceedings were pending before him. In this case, since we have already recorded the finding that the award became final due to collusion by the officers and the claimants, the principle of illegality in the award does not apply since fraud unravels the entire procedure and makes the award a nullity. (Para 9)

       (iii) Land Acquisitions-Compensation claim-Claimants being subsequent purchasers-Cannot have a higher right than that the original owner himself had-They cannot set up any title to property on basis of sale deeds and consideration but may be entitled to compensation getting into the shoes of the owner. (Para 4)

       

ORDER

Leave granted.

2. Notification under Section 4(1) of the Rajasthan Land Acquisition Act, 1953 was published on August 21, 1969 acquiring a large extent of 484 bighas 11 biswas of land for Jaipur Urban Development Scheme by different notifications. An extent of 4 acres 5 biswas (9845 sq.yds.) relates to the acquisition in appeal arising out of SLP (C) No. 14811/94. In respect of the appeal arising out of SLP (c) No. 6519/94, an extent of 10 bighas 7 biswas was acquired. The Land Acquisition Officer determined the compensation by his award dated July 16, 1981 and October 12, 1981 respectively determining the compensation at the rate of Rs. 5,000/- per bigha to the respondent - Jai Ambe Co-op. Housing Society and Rs. 7,500/- per bigha to the respondent - Mahavir Housing Co-op. Society. On reference, the civil Judge enhanced the compensation at the rate of Rs. 40,000/- per bigha. As regards the award of the Civil Judge, an appeal was filed against the respondent - Jai Ambe Co-op. Society Ltd. The learned single Judge in appeal No. 142/92 has confirmed the same by judgment dated May 2, 1994. As regards the award in favour of Mahavir Housing Co-operative Society, no appeal was filed. But in execution an objection has been raised regarding additional amount awarded under Section 23 (1-A) which was negatived. On revision, the High Court in Revision No. 1059/93 dated December 20, 1993 confirmed the same. Thus, these appeals by special leave.

3. When the matter relating to Mahavir Housing Co-operative Society initially came up, notice was confined in respect of Section 23 (1-A), but later when it was brought to our notice of the fraud and collusion between the officers entrusted with the prosecution on behalf of the appellant and the claimants, we have indicated to the counsel that we would go into the question of determination of the compensation. Thus, these cases are heard together. It is seen that from the evidence adduced before the reference Court in respect of Jai Ambe Co-operative Housing Society except one claimant Mr. Garg, no documentary evidence has been adduced in support of the claimant for enhancement. Two awards under Section 26 came to be filed in which one award relating to the Mahavir Housing Co-operative Society and another award relating to the same notification but an amount of Rs. 24,000/- per bigha was awarded. As regards the claim in Mahavir Housing Co-operative Society is concerned, they relied upon a judgment of the High Court in which the High Court has granted to some lands at the rate of Rs. 12/- per sq.yd. which relates to the acquisition of 1964 and also a certificate issued by Tehsildar relating to some other village, which worked out at the rate of Rs. 44,000/- per acre and the sale deeds in support thereof. One curious fact in both the cases that cannot be lost sight of is that the claimants have purchased these properties after the notification under Section 4(1) was published and a reference came to be made at their instance to the Civil Court. Though an opportunity was given to the appellant, for well over 11 years, no counter affidavit has been filed. As a result, they were set ex-parte. Yet another curious aspect that we cannot lose sight of is that the reference Judge has merely with parrot-like but traditional consideration swallowed what with witnesses had stated that the market value is Rs. 50/- per sq.yd. without subjecting to any scrutiny as per the tests laid down by this Court. It is also to be noted that the same aspect was repeated by the learned Judge of the High Court in Jai Ambe Co-operative Housing Society s case.

4. The question, therefore, is : what would be the reasonable compensation to which the claimants are capable to get ? In view of the settled legal position that the claimants being the subsequent purchasers cannot have a higher right than that the original owner himself had. They cannot set up any title to the property on the basis of sale deeds and consid








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