Judgment

DUA, J. :- By means of an agreement dated August 9, 1963, the appellant-company agreed to purchase from the respondents, land measuring 264 Kanals and 12 Marlas. A sum of Rs.1,87,000/- was paid as earnest money. The sale deed was to be registered by April 30, 1964. As it was not so registered, both parties blamed each other for the breach. In May, 1966 the Government issued a notification under Section 4 of the Land Acquisition Act which was followed by a notification under Section 6 in September 1966 acquiring 104 kanals and 18 marlas of land out of the land agreed to be sold. The Collector made an award of the compensation for the acquired land, against which a reference was made to the Court of the District Judge. In May, 1968 the compensation was enhanced to a sum over Rs. 2 lakhs. In the meantime on April 15, 1967, the appellant-company instituted a suit for specific performance of the agreement dated August 9, 1963. This suit was dismissed by the Court of the Senior Subordinate Judge, Gurgaon on August 13, 1968. A Regular First Appeal (No. 216 of 1968) against the dismissal of the suit is pending in the Punjab and Haryana High Court.

2. It appears that the dispute as to apportionment of compensation under Section 30 of the Land Acquisition Act was also referred to the Court. In view of the institution of the suit for specific performance, an application was apparently made in the Court of the learned Additional District Judge dealing with the reference under the Land Acquisition Act to stay those proceedings pending the decision of the suit by the learned Senior Subordinate Judge. On February 28,1968 the learned Additional District Judge took the view that the entire matter in his Court was covered by the civil suit, it being further observed in the order that even the question of the jurisdiction of the Senior Subordinate Judge to determine the amount of compensation was to be first decided by the Civil Court. On this view, the reference proceedings were stayed pending the decision of the Civil Court.

3. After the dismissal of the suit, the respondents applied to the Court of the learned Additional District Judge for continuing the proceedings and for making an order of payment of compensation in their favour. This prayer was contested by the appellant-company on the ground that an appeal against the decree dismissing the suit had already been presented in the High Court and that the proceedings for payment of compensation should continue to remain stayed pending the disposal of the appeal. The learned Additional District Judge after hearing both sides decided on August 30, 1969 to continue the order of stay pending the decision of the appeal by the High Court. According to him, the question whether the original agreement had become frustrated or was alive and deserved to be specifically enforced, would have an important bearing on the question of apportionment of compensation.

4. The respondents preferred a revision to the High Court against this order and a learned Single Judge on March 18, 1969 reversed the order continuing stay of the proceedings under Section 30 and further directed payment of Rs. 1,78,000/- to the respondents. The order of payment of this amount was framed in the following words:-

"I do feel that in view of the fact that the suit filed by the respondent company has been dismissed, prima facie, it is reasonable that the proceedings under Section 30 of the Act should continue, but the petitioners may not be allowed actual payment of more than Rs. 1,78,000/-. The balance of the amount due in respect of the land of the petitioners shall be kept with the Government to be disbursed in accordance with the decision in the regular first appeal. This will, however, be subject to the further condition that the petitioners will file an undertaking in this Court that they shall not dispose of or otherwise transfer any interest by creating any encumbrance over the balance of the land which was the subject-m