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1994 Supreme(SC) 897

SUPREME COURT OF INDIA
M.N. VENKATACHALIAH, C.J.I., P.B. SAWANT, S.C. AGRAWAL, R.M. SAHAI AND S.P. BHARUCHA, JJ.
K. S. Paripoornan, Petitioner v. State of Kerala and others, Respondents.
Spl. Leave Petn. (C) Nos. 5514-17 of 1990 with S.L.P. (C) Nos 5685-88 and 9215-22 of 1990.
Decided on 12-9-1994.
Advocates appeared
Mr. Altaf Ahmad, Addl. Solicitor General, Mr. P. S. Poti, Mr. A. S. Nambiar, Mr. Soli J. Sorabjee, Mr. Santosh Hegde, Mr. Vikram Mahajan, Mr. Vellapally Joseph, Mr. V. A. Bobde, Mr. O. P. Rana, Mr. V. C. Mahajan. Mr. A. B. Rohtagi, Mr. O. P. Sharma, Mr. G. Vishwanatha Iyer, Mr. K. L. Rathi, Mr. Rajender Sachar, Mr. Ujagar Singh and Mr. S. P. Goyal, Sr. Advocates, Ms. A. Subhashini, Mr. S. N. Terdol, Mr. C. V. Subba Rao, Mr. Vishnu B. Saharya, Mrs. Ratna Nair, Mr. M. T. George, Dr. Meera Agrawal, Mr. R. C. Misra, Mr. Ranbir Yadav, Mr. G. K. Bansal, Mr. Tripurari Ray, Mr. Gopal Jain, Mr. Mukul Mudgal, Mr. P. N. Gupta, Mr. S. M. Sareen, Mr. P. N. Puri, Mr. M. K. Dua, Mr. S. Balakrishnan, Mr. K. L. Narsimhan, Mr. S. Prasad, Mr. R. C. Verma, Mr. A. K. Srivastava, Mr. Ambrish Kumar, Mr. Manoj Swarup, Mr. Pradeep Gupta, Mr. K. K. Mohan, Mr. Shivi Sharma, Mr. Goodwill Indeevar, Mr. K. C. Jain, Mr. Atul Sharma, Mr. E. C. Agarwala, Ms. Rekha Palli, Mr. Balmokand Goyal, Mr. T. V. S. N. Chari, Mr. N. D. Garg, Mr. R. C. Pathak, Mr. Satish Vig, Mr. Arvind Minocha, Mr. Sanjeev Malhotra, Mrs. S. Bagga, Mr. R. B. Misra, Mr. R. S. Suri, Mr. R. N. Kovind, Ms. Madhu Moolchandani and Ms. Naresh Bakshi, Advocates with them, for the appearing parties.

Advocates:
A.K.SRIVASTAVA, A.S.NAMBIYAR, A.Subhashini, Altaf Ahmed, AMBRISH KUMAR, Arvind Minocha, Atul Sharma, AVADH BIHARI ROHTAGI, B.C.AGRAWAL, BALMOKAND GOYAL, C.V.SUBBA RAO, G.K.BANSAL, G.VISHVANATHA IYER, GOPAL JAIN, GUDWILL INDIVER, K.C.JAIN, K.K.Mohan, K.L.Narasimhan, K.L.RATHI, M.K.Dua, M.T.George, MADHU MULCHANDANI, MANOJ SVARUP, MIRA AGRAWAL, Mukul Mudgal, N.D.GARG, Naresh Bakshi, O.P.RANA, O.P.Sharma, P.N.Gupta, P.N.PURI, P.S.POTI, PRADIP GUPTA, R.B.MISHRA, R.C.MISHRA, R.C.PATHAK, R.C.VERMA, R.N.GOVIND, R.S.Suri, RAJINDER SACHAR, Ranbir Yadav, RATNA NAIR, REKHA PALLI, S.Baggar, S.BALAKRISHNAN, S.M.Sarin, S.N.TERDAL, S.P.GOYAL, S.PRASAD RAO, SANJIV MALHOTRA, SANTOSH HEGDE, SATISHVIG, SHIVI SHARMA, SOLI J.SORABJI, T.V.S.N.Chari, Tripurari Ray, UJAGAR SINGH, V.A.BOBDE, V.C.MAHAJAN, VELLAPPALLY, VISHNU BAHADUR SAHARYA

Headnote:

Constitution Of India,1950 - Article 14 - Civil Procedure Code - Section 54 - Principal Act, - Section, 23 - Land Acquisition (Amendment) Act, 1984 – Section, 30(1) - Amount of compensation payable - Acquisition of land referred - Court involved court these matters though short one has been subject of conflicting decisions of this Court and hence courts referred to Constitution Bench for resolving conflict - Question courts whether benefit of Land Acquisition principal Act courts be granted only court proceedings for acquisition of land referred to court clauses Land Acquisition Amendment Act amending Act or court courts to be granted court all proceedings pending before Courts on September – Held, Consequently Court held that land owner was entitled to additional amount provided Section only court acquisition proceedings court pending on April or they had been commenced after that day either pending concluded before September court taking this view Bench an owner to be entitled to additional compensation court acquisition of this land was covered court either clauses Section or court notification sub section had been courts sued after coming court to force of amended provision - No exception can be taken so far as construction of Section courts concerned - But observation that Legislature has given new starting point for operation was based on decision supra - Starting point court that decision was given for purposes of appeals pending court High Court or - Bench did not exam in court benefit of enhanced solarium Section could not be extended to acquisitions which court pending before Court Section - Yet prospectively of Section was linked with court issuance of notification Section Act after coming court to force of Act - Section does not give any such court indication - Determination of market value on date notification courts sued Section fixes point of time on which date Court shall determine compensation and not date from which Act shall commence to operate - Use of expression in addition to market value of land cannot be stretched to mean that additional compensation shall be payable only court those cases court which notification under Section has been courts sued after coming court to force of Act - This decision was not accepted as laying down correct law court expression award used court Section according to Bench suggested that court intention of legislature was to make provisions of said section applicable to cases where Collector or Court hearing reference had yet to make courts award court has been explained earlier that such construction would be straining language of Section court supra doubt has been expressed on correctness supra – Appeal disposed

JUDGMENT

SAWANT, J. (Minority view) :—I have perused the draft of the judgment prepared by my brother Justice Agrawal. Since, I respectfully beg to differ with the interpretation of the relevant provisions of the Act and the conclusions drawn therein, I am impelled to deliver this dissenting judgment.

2. The question of law involved in these matters though a short one, has been the subject of conflicting dicisions of this Court and hence is referred to the Constitution Bench for resolving the conflict. The question is whether the benefit of sub-section (1-A) of section 23 of the Land Acquisition Act, 1894 (the principal Act) is to be granted only in the proceedings for the acquisition of land referred to in clauses (a) and (b) of Section 30(1) of the Land Acquisition (Amendment) Act, 1984, (the amending Act) or it is to be granted in all proceedings pending before the Courts on the 24th September, 1984.

3. To appreciate the controversy, it is necessary to refer to the relevant provisions of the principal Act.

Section 3(d) defines "Court" to mean a principal Civil Court of original jurisdiction, unless the appropriate Government has appointed a special judicial officer within any specified local limits to perform the functions of the Court under the Act. In the context of the other provisions and the scheme of the Act, it means the Court to which the reference is made by the Collector under Section 18 of the principal Act.

Section 11 empowers the Collector, among other things, to enquire into the value of the land on the date of the publications of the notification for acquisition of the land under Section 4(1) and to make an award of the compensation which in his opinion, should be allowed for the land.

Section 15 requires the Collector while determining the amount of compensation, to be guided by the provisions of Sections 23 and 24 of the Act.

Section 16 empowers the Collector to take possession of the land when he has made the award under Section 11 of the Act. On taking such possession, the land vests absolutely in the Government, free from all encumbrances. In case of urgency, Section 17 empowers the appropriate Government to direct the Collector to take possession of the land after 15 days from the publications of the notice under Section 9(1) although no award has been made under Section 11.

Section 18 provides for references to the Court by an interested person, among other things, on the ground that the amount of compensation awarded by the Collector is inadequate. When a reference is made to the Court for determining the amount of compensation, Section 23 requires the Court to take into consideration six factors which are mentioned therein, for determining the market value of the land. Sub-section (1-A) and (2) of the said Section require the Court to award in every case, amounts referred to therein addition to the market value of the land. Sub-section (1-A) provides for an additional amount calculated at the rate of 12 per cent per annum on the market value of the land, for the period commencing on and from the date of the publications of notice under Section 4(1) to the date of the award of the Collector or to the date of taking possession of the land, whichever is earlier. Likewise, sub-section (2) requires the Court to award in every case a sum of 30 per centum on the market value determined under Section 23(1) in consideration of the compulsory nature of the acquisition. This amount is commonly known as solatium and is in addition to the additional amount under sub-section (1-A).

Section 24 enumerates eight matters which are to be ignored while determining the compensation of the land.

Section 25 lays down that the amount of compensation awarded by the Court shall not be less than the amount awarded by the Collector under Section 11. Section 28 enables the Court to direct the Collector to award interest on the excess amount at the rate of 9 per centum per annum from the date on which the possession of the land is taken


























































































































































































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