SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2006 Supreme(SC) 1295

SUPREME CORT OF INDIA
B.P. SINGH AND ALTAMAS KABIR, JJ.
PATEL JOITARAM KALIDAS AND OTHERS Appellants;
Versus
SPL. LAND ACQUISITION OFFICER AND ANOTHER Respondents.
Civil Appeals No. 5785 of 2006 with Nos. 5786 of 2006, 5787 of 2006, 5788 of 2006, 5789 of 2006, 5790 of 2006, 5791 of 2006, 5792 of 2006, 5793 of 2006, 5794 of 2006 5795 of 2006, 5796 of 2006, 5797 of 2006, 5798 of 2006, 5799 of 2006, 5800 of 2006, 5801 of 2006, 5802 of 2006, 5803 of 2006, 5804 of 2006 and 5805 of 2006,
Decided on December 13, 2006
Advocates appeared
Sunil Gupta, Senior Advocate (Pratap Kalra and Harish J. Jhaveri, Advocates, with him) for the Appellants;
U.U. Lalit, Senior Advocate (Ramesh Singh, Rutmik Panda, Ms Shivangi, Ms Hemantika Wahi, Ashish Verma and K.R. Sasiprabhu, Advocates, with him) for the Respondents.

The main legal point established in the judgment is that the payment of interest on amounts payable under Sections 23(1-A) and 23(2) of the Land Acquisition Act is obligatory and not dependent on any formal claim by the landowners. The Court emphasized that procedural hurdles should not impede the substantive rights of citizens under the Act.

Headnote:

Land Acquisition - Entitlement to Interest - Sections 23(1-A) and 23(2) of the Land Acquisition Act - Summary

Fact of the Case:

The case involved a dispute over the entitlement to interest on amounts payable under Sections 23(1-A) and 23(2) of the Land Acquisition Act. The appellants, landowners whose lands were sought to be acquired, claimed a reference under Section 18 of the Act and demanded higher compensation. The Reference Court determined the market value of the lands but did not award interest on the amounts payable under Sections 23(1-A) and 23(2) of the Act. The High Court affirmed the Reference Court's decision, dismissing the appeals by the Special Land Acquisition Officer.

Finding of the Court:

The Supreme Court found that the appellants were entitled to interest on the amounts payable under Sections 23(1-A) and 23(2) of the Land Acquisition Act. The Court held that the appellants' claim for interest was justified, and the High Court was bound to award interest on these amounts, as it was consequential and automatic, involving only arithmetical calculation and not the application of judicial discretion.

Issues: The main issue was whether the appellants were entitled to claim interest on the amounts payable under Sections 23(1-A) and 23(2) of the Land Acquisition Act, despite not making a formal claim before the High Court.

Ratio Decidendi: The Court's decision was influenced by the conflicting decisions of coequal Benches of the Supreme Court regarding the payment of interest on solatium under the Act. The Court emphasized that the payment of interest was obligatory under the Act and not dependent on any claim by the person whose land was acquired. It also highlighted that the procedural hassle cannot come in the way of substantive rights of citizens under the Act.

Final Decision: The Court allowed the appeals preferred by the appellants, holding that they were entitled to interest on the amounts payable under Section 23(1-A) and Section 23(2) of the Land Acquisition Act. The Collector was directed to calculate the interest payable and pay the same to the appellants without further delay.

Judgment

B.P. SINGH, J. - Permission to file SLP granted.

2. Special leave granted.

3. In this batch of appeals the sole question which falls for consideration is whether the appellants herein are entitled to maintain an application for special leave before this Court impugning the judgment and order of the High b Court which affirmed the findings of the Reference Court under Section 18 of the Land Acquisition Act in appeals preferred by the Special Land Acquisition Officer, the respondent herein. The appellants contend that the High Court ought to have, even in the appeals preferred by the Special Land Acquisition Officer, awarded interest on solatium payable under Section 23(2) of the Land Acquisition Act. The respondent on the other hand, C contends that the appeals had been preferred before the High Court by the Special Land Acquisition Officer in which the appellants herein were the respondents. The appeals preferred by the Special Land Acquisition Officer having been dismissed by the High Court, the appellants cannot be said to be parties aggrieved by the judgment and order of the High Court. Before the High Court they had not even prayed for grant of interest on solatium and, d therefore, they cannot be permitted to move this Court by way of special leave claiming such relief. It is not disputed by them that if really such a claim was made either before the Collector or before the Reference Court dealing with the matter under Section 18 of the Land Acquisition Act, having regard to the law as now settled by a decision of this Court, interest on solatium was bound to be granted to the appellants.

4. The few facts which are relevant for the disposal of these appeals are as follows:

five notifications under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as "the Act") were published for acquisition of lands situated in Village Vekara, District Mehsana, Gujarat. The appellants are the f. landowners of the lands sought to be acquired by the aforesaid notifications. The Special Land Acquisition Officer offered compensation @ Rs 24,000 per ha (Rs 2.40 per sq m) for irrigated lands and Rs 16,000 per ha (Rs 1.60 per sq m) for non - irrigated lands. The appellants claimed a reference under Section 18 of the Act and demanded compensation @ Rs 30 per sq m By its judgment and order of 20 - 4 - 2000 the Reference Court under Section 18 of 9 the Land Acquisition Act determined the market value of the lands of the appellants @ Rs 22 per sq m However, it did not award interest on the amounts payable under Section 23(1 - A) and Section 23(2) of the Land Acquisition Act, namely, on the amount payable by way of additional amount and solatium. The Reference Court following the judgment of this Court in Prem Nath Kapur v. National Fertilizers Corpn. of India Ltd.1 held that no interest was payable in respect of amounts envisaged by Sections 23(1 - A) and 23(2) of the Act.

5. Aggrieved by the judgment and order of the Reference Court enhancing the compensation payable to the appellants, the Special Land Acquisition Officer preferred First Appeals Nos. 1320 to 1395 of 2001 before the High Court of Gujarat at Ahmedabad which came to be disposed of by the judgment and order of the High Court dated 19 - 9 - 2001. The High Court found no reason to interfere with the determination of compensation by the Reference Court and accordingly dismissed the appeals.

6. The instant special leave petitions have been filed by the claimants contending that the High Court ought to have awarded interest on the amounts payable under Sections 23(1 - A) and 23(2) of the Act. It is their case that the interest payable on these amounts must be incorporated in the decree of the Court even if no prayer is made for it because the Act obliges the Collector to pay such interest on the amount determined by the Collector or the Court. For awarding such interest no exercise of judicial discretion is called for. Only an arithmetical exercise has to be unde
















Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top