Important pointThe whole purpose of the Resettlement and Rehabilitation scheme being to ensure that families rendered landless by the acquisition of land were made available some benefits apart from the compensation payable under the provisions of the Land Acquisition Act, irrespective of the dispute between the State Government and the original owner, respondent purchaser was entitled to the benefits flowing from the Resettlement and Rehabilitation Scheme.

Judgment

Srikrishna, J.—The appellant-corporation a Government company established for the purpose of establishing hydel power projects in Himachal Pradesh, impugns the judgment of the Division Bench of the High Court of Himachal Pradesh directing it to grant certain benefits under the Resettlement and rehabilitation scheme formulated by the corporation to the first respondent.

2. The first respondent was in possession of land to the extent of 11.4 bighas in Khasra Nos. 982, 984, 989 & 990 in village Jhakri, Tehsil Rampur Bushehr, District Shimla. According to the first respondent he had purchased the said land from one Raj Kumar Rajinder Singh, who was the original owner, on 21.8.1965. There was a dispute between the said Raj Kumar Rajinder Singh and the State Government as to whether certain large tracts of land including the land in question had vested in the State Government under the provisions of the Himachal Pradesh abolition of Big Landed Estates Act and Land Reforms Act, 1953, which came into effect on 26.1.1955. During the pendency of that dispute the first respondent claimed that he had been issued a Patta and given possession on 21.8.1966. According to the first respondent, although a sale deed/Patta was executed it could not be registered since there was prohibition against registration of documents during that period. The Patta itself recited: “if for some reason the land vests in the State Government, in that eventuality the above mentioned persons i.e. Respondents herein, will pay the compensation to the Government of Himachal Pradesh. Hence this is written so that it is handy at the right time”. The issue as to whether the land in question had vested in the State Government by reason of section 27 of the Act XV of 1954 was settled by this Court by its judgment dated September 17, 1969 in Civil Appeal Nos. 1186 to 1191 of 1966, by which this Court held that the vesting under sub-section (1) of section 27 takes place immediately on the commencement of the Act, that thereafter under sub-section (3) compensation had to be paid to the land owner in accordance with provisions mentioned therein and that under sub-section (4) the State Government shall transfer the rights of ownership to a tenant in possession and cultivating the land only on payment of compensation. Since certain other questions had not been decided by the High Court, the appeals were allowed and the decision of the Judicial Commissioner was set aside and the case was remanded to the High Court for decision on the other questions which had not been decided.

3. On 5.3.1998 a Notification was issued under section 4(1) of the Land Acquisition Act by which the land in question was sought to be acquired. The Land Acquisition Collector made an award under the provisions of the said Act. The compensation calculated by the Collector was deposited by the appellant-Corporation and was disbursed to the first respondent. An amount of Rs. 6,55,718 was paid over to the first respondent pursuant to the award. It is the case of the appellant-Corporation that under the Patta dated 21.8.1965 the first respondent had to pay back the said amount to the State Government, but had failed to do so.

4. On 27.11.1991 the Board of Directors of the appellant-Corporation formulated a scheme for Resettlement and rehabilitation of persons whose land had been acquired for the benefit of the Corporation. The ­Resolution pertaining to the said scheme reads as under:

“The Board discussed at length and approved the plan for Resettlement and Rehabilitation of persons being displaced due to construction of NJPC at indicated below:

a) To allot developed agricultural land, to each family, who is rendered landless, equivalent to the area acquired or 5 bighas, whichever is less. This 5 bighas would include any land left with the family after acquisition. This would be done only after the certificate of his having become landless is submitted duly signed by Sub-Divisional Magistrate, Rampur.

b)