JUDGMENT

Bharucha, J.-This appeal has been referred to a bench of three Judges by reason of the contrary views taken by two benches of two learned Judges in Special Tahsildar (LA), P.W.D. Schemes, Vijayawada vs. M.A. Jabbar (1995(2) SCC 142) on the one hand and in Asstt.Commr., Gadag Sub-Division, Gadag vs. Mathapathi Basavannewwa (1995 (6) SCC 355) on the other. (The referral order also makes a reference to State of H.P. vs. Dharam Das (1995(5) SCC 683), but no reasoning can be discerned therein.)

2. We are required to consider the provisions of Section 23 (1A) of the Land Acquisition Act, 1894 in the context of the following facts: Possession of land bearing Survey No. 311/3, admeasuring 2 acres and 16 guntas, situated at Village Hirenandi, Gokak Taluk, Belgaum District, Karnataka was taken by the respondents from the appellants, who were the owners thereof, on 1st June, 1977 for the purposes of the construction of an Irrigation channel. On 8th March, 1991, a notification was issued under Section 4(1) of the Act in relation to the said land. It was followed by a notification under Section 6. The provisions of Section 17 were thereafter applied. On 6th February, 1993, an award wa