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1995 Supreme(SC) 289

SUPREME COURT OF INDIA
BEFORE J.S. VERMA AND K.S. PARIPOORNAN, JJ.
S.A. JAIN COLLEGE TRUST & MANAGING SOCIETY
Versus
STATE OF HARYANA AND ANOTHER
Civil Appeal No. 3078 of 1995{From the Judgment and Order dated 9-5-1986 of the Punjab and Haryana High Court in L.P.A. No. 139 of 1986}
Decided on 24-2-1995
Advocates appeared:
H.M. Singh, Advocate, for the Appellant;
Mahabir Singh, Advocate, for the Respondents.

Advocates:
H.M.SINGH, Mahabir Singh

Headnote:

Land Acquisition Act, 1894 - Section 4, 23(1-A) - Acquisition of Land – Claim of Compensation - Enhanced Compensation - Appeal against judgment - Regarding award of compensation made under Land Acquisition Act - Appellant-Society is running educational and charitable institutions in State of Haryana - For providing a playground to one of its colleges, appellant-Society got acquired 7 bighas of land belonging to second respondent in this appeal under Land Acquisition Act, hereinafter referred to as "the Act". Notifications under Section 4 of the Act were issued and notification under Section 6 was issued by an award, compensation was awarded to second respondent - landowner, at the rate of Rs 12,000 per acre and Rs 1000 as price of the well apart from 15% solatium and 6% interest, from date of notification up to date of award – Held, Amount of 12% per annum awarded on market value from the date of publication of the notification under Section 4 of Act till date of taking possession of land, awarded as per Section 23(1-A), is not legally justified - In this case, proceedings for land acquisition commenced as early as 15-5-1968 and the award was made by the Collector and the possession of the land was taken immediately thereafter - All such events happened long before - In such cases the claimants are not entitled to the benefit under Section 23(1-A) of Land Acquisition Act, 1894 as amended - This view is fortified by the decision of this Court in Union of India - Claimant is not entitled to benefit of Section 23(1-A) of Act - Award of an amount calculated at the rate of 12% per annum on the market value from the date of publication of the notification under Section 4 of Act till the date of taking possession of land - Subject to this modification, decisions of the courts below are affirmed - There shall be no order as to costs in this appeal – Order Accordingly

JUDGMENT

PARIPOORNAN, J.- Leave granted.

2. This appeal is filed against the judgment dated 9-5-1986, of the Division Bench of the High Court of Punjab & Haryana, in LPA No. 139 of 1986 and CM No. 903 of 1986, affirming the judgment of the Single Judge rendered in RFA 390/75 dated 25-10-1985 regarding the award of compensation made under the Land Acquisition Act. The appellant-Society is running educational and charitable institutions in the State of Haryana. For providing a playground to one of its colleges, the appellant-Society got acquired 7 bighas of land belonging to the second respondent in this appeal (original claimant in the land acquisition proceedings), under the Land Acquisition Act, 1894, hereinafter referred to as "the Act". Notifications under Section 4 of the Act were issued on 15-5-1968, and 11-6-1968. The notification under Section 6 was issued on 13-8-1969. By an award dated 29-9-1970, compensation was awarded to the second respondent - the landowner, at the rate of Rs 12,000 per acre and Rs 1000 as price of the well apart from 15% solatium and 6% interest, from the date of notification up to the date of award.

3. In the reference to court at the instance of the appellant as well as the third respondent, the Additional District Judge, by judgment dated 30-12-1974, awarded the enhanced compensation at the rate of Re 1 per sq. yd. for the entire land and further interest at the rate of 6% per annum under Section 4 of the Act from the date of notification till the additional amount was paid to the claimant. In the appeal filed by the claimant before the High Court of Punjab and Haryana in RFA No. 390 of 1975, a learned Single Judge of that Court by judgment dated 25-10-1985 enhanced the compensation for the land acquired at the rate of Rs 8 per sq. yd. The learned Single Judge also awarded 30% of the market value of the land acquired as solatium, along with 12% of such market value from the date of notification under Section 4 of the Act till the date of taking possession of the land and interest at the rate of 9% per annum for the first year and thereafter at the rate of 15% till the date of payment of compensation for the land acquired. It is against the aforesaid judgment the petitioner/appellant filed LPA No. 139 of 1986 before the Division Bench, wherein the award of compensation was not interfered with.

4. We heard counsel for the appellant Shri H.M. Singh and also the counsel for the respondents Shri Mahabir Singh. The main grievance of counsel for the appellant was that the Division Bench was in error in declining to consider the issue of enhancement of compensation and the resultant benefits awarded by the learned Single Judge. We find from a close perusal of the judgment of the District Judge and also the learned Single Judge, that the land acquired possessed all characteristics of a potential building site for both residential as also commercial or industrial purposes and it was near to other buildings and establishments. Considering the totality of the circumstances and other relevant particulars, the learned Single Judge noticed that the rates of land in the locality had gone up to Rs 9 per sq. yd. in 1967 and has still gone up to Rs 11 per sq. yd. in 1970 and 1971. In the circumstances, the learned Single Judge fixed the market value for the land acquired at Rs 8 per sq. yd. We are of the view that considering the importance of the locality, the potential of the land, and the user to which it can be put, the fixation of the market value of the land acquired at Rs 8 per sq. yd. is reasonable and the Division Bench in appeal did not rightly interfere with the above determination. We hold that the fixation of the market value of the land acquired at Rs 8 per sq. yd. is reasonable and proper.

5. The Land Acquisition (Amendment) Act, 1984 (Act No. 68 of 1984) became law on 24-9-1984. The appeal filed by the claimant was pending before the learned Single Judge of the High Court on the day when the Amendmen


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