SUPREME COURT OF INDIA
STATE OF GUJARAT
Vs.
DAYA SHAMJI BHAI
Decided on August 25, 1995
Land Acquisition Act, 1894 – Section 4 (1), 18 – Compensation Claim – Special leave – Respondent sought for Assistant Judge – Land owners had given their cosent in writing agreeing to accept the compensation determined by the Land Acquisition Officer and 25 per cent more thereof and also agreed not to seek any reference – Market value was determined by the Collector in addition thereto was awarded – Respondents were paid in terms of the consent agreements signed by the respondents and sanctioned by the Superintending Engineer, Rajkot – Subsequent thereto, the respondent sought for Assistant Judge, Rajkot by his award and decree enhanced compensation to the rate acre for Bagayat land and acre for Jirayat land – Feeling aggrieved, when the appellants filed appeals, the Gujarat High Court confirmed the same by the impugned judgment and decree –Thus these appeals by special leave –Held, Question of awarding interest and statutory benefits when the Civil Court finds that the amount of compensation awarded to the land owner by the Collector is not adequate and the prevailing market value is higher than the market value determine by the Land Acquisition Officer under Section 23 (1 ). For entitlement to solatium under Section 23 (2), "in addition to" market value the Court shall award solatium – Under Section 28, if the Court gets power to award interest, when Court opines that the Collector "ought to have awarded compensation in excess of the sum which collector did award the compensation" – In other words, valid reference under Section 18 confers jurisdiction on the Civil Court to consider whether the compensation awarded by the Collector is just and fair – Thereafter, when it finds that the Collector ought to have awarded higher compention, the Civil Court gets jurisdiction to award statutory benefits on higher compensation from the date of taking possession only – Appeals are accordingaly allowed.
( 1 ) DELAY condoned. Leave granted.
( 2 ) THOUGH notice has been served on all the respondents, none appears either in person or through counsel in all appeals.
( 3 ) NOTIFICATION under Section 4 (1) of the Land Acquisition Act, 1894 (for short, the Act) was published on 18/12/1980 acquiring large extent of lands for the prupose of irrigation dam No. 2 Project. The land owners had given their cosent in writing on 11/03/1983 agreeing to accept the compensation determined by the Land Acquisition Officer and 25 per cent more thereof and also agreed not to seek any reference under Section 18. The market value was determined by the Collector on 25/03/1983, and 25 per cent in addition thereto was awarded. Respondents were paid in terms of the consent agreements signed by the respondents and sanctioned by the Superintending Engineer, Rajkot. Subsequent thereto, the respondent sought for reference under Section 1 8/04/1986. The Assistant Judge, Rajkot by his award and decree dated 29/06/1991 enhanced compensation to the rate of Rs. 200. 00 per acre for Bagayat land and Rs. 140. 00 per acre for Jirayat land. Feeling aggrieved, when the appellants filed appeals, the Gujarat High Court confirmed the same by the impugned judgment and decree dated 3/07/1992. Thus these appeals by special leave.
( 4 ) THE only question is whether the claimants of the land are entitled to seek referance under Section 18 and the Civil Court can determine higher compensation. Section 11 (2) of the Act empowers the parties to enter into an agreement and an award in terms thereof is permissible. In the agreement they had specifically accepted that owners would receive compensation and 25 per cent of the compensation in addition and had agreed to forgo their right to seek reference under Section 18 of the Act. The owners and the Special Land Acquisition Officer had agreed under Section 11 (2) of the Act that the Land Acquisition Officer would make the award in terms of the contract. Clause 14 of the agreement reads thus :
"the land owners will not go to any Court under Section 18 of the Act. "
( 5 ) IN the award, it is seen that the Land Acquisition Officer while awarding the compensation, had also worked out the addition of 25 Per Cent and awarded total compensation to the land owners. It is not in dispute that they had been paid accordingly. In the award, the Land Acquisition Officer has specifically stated that :
" As discissed in para 9-A and as mentioned in para 9-B, I fix value of the lands, under acquisition in this case, for Bagayat Lands at Rs. 110. 00. per acre, for Jirayat Lands at Rs. 80. 00 and for waste lands at Rs. 10. 00 per acre and further order to pay as such. Moreover, in this case, the persons interested has demanded for 25 Per Cent consent more. The consent rate is sanctioned by the Superintending Engineer, Rajkot Irrigation Circle, Rajkot wide his letter No. PB/4/general /lao/1519, rated 25-3-1983 and accordingly I also order to pay the amount of 25 Per Cent consequent (sic) consent rate. "
( 6 ) IN view of the above agreement and in view of the discussion made by the Land Acquisition Officer in the award and working details given in the annexures made therein, it is clear that the parties having contracted to receive compensation the question emerges whether they are entitled to seek a reference. On making an award under Section 11 and issuance of the notice under Section 12 of the Act. the Collector is enjoined under Section 31 (1) to tender payment of the compensation awarded by him to the interested persons entited thereto to receive the compensation according to the terms of the award. Under the second proviso to sub-section (2) of Section 31 "no person who has received the amount otherwise than under protest shall be entitled to make any application under Section 18". The entitlement to make reference to Civil Court under Section. 18 (1) and within the period prescribed under sub-section (2) is conditioned upon non-acceptance of the awar
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