Payment of compensation in instalments for land acquisition, especially from a farmer holding land below the ceiling limit and personally cultivating them, is violative of constitutional provisions and fundamental rights.

K. MADHAVA REDDY, ACTG. C. J.

( 1 ) THE claim of the petitioner is that he holds land less than the ceiling area to which he is entitled under the Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973. But a part of his holding has been acquired under the provisions of the Land Acquisition Act read with the Andhra Pradesh Amendment Act, 1976, whereby compensation payable for the land acquired is permitted to be paid in instalments. That provision was challenged as unconstitutional in a batch of writ petitions. A Full Bench of this court in W. P. No. 3353 of 1976 and batch, by judgment dated 26/09/1978, held section 3 (4) of the Amendment Act which provides for payment of compensation in instalments to be violative of fundamental rights. The Full Bench held that"payment of compensation in instalments works out to payment of compensation which is less than the market value. Section 3 (4) of the impugned Act of 1976 is unconstitutional to the extent of acquisition of lands which come within the purview of article 31a (1) of the Constitution of India. That is to say, compensation cannot be paid in instalments for lands acquired from a farmer who holds lands below the ceiling limit and personally cultivates them. For acquisition of other lands, however, this inhibition and vice do not exist in section 3 (4 ). "

( 2 ) WHEN the matter came up before our learned brother, Kodandaramayya J. , he felt a doubt whether, having regard to the fact that the judgment of the Full Bench is the subject-matter of an appeal before the Supreme Court and the operation of the said judgment is suspended, the dicta laid down by the Full Bench would be binding on this court and have to be followed, and referred the matter to the Bench. We are of the view that when a judgment of the High Court is the subject-matter of an appeal and the said judgment is suspended, the only effect of such suspension is that that judgment cannot be executed or implemented. But so long as the Full Bench judgment stands, the dicta laid down therein are binding on all courts including single judges and Division Benches of this court. The dicta laid down therein cannot be ignored unless the court after hearing a particular case doubts the correctness of the dicta and thinks it appropriate that it should be reconsidered. We, however, do not feel any such doubt that in so far as the acquisition of the land of a person, whose holding is less than the ceiling area and who is personally cultivating the same, is concerned, he is entitled to the payment of market value in lump sum. Payment of compensation in instalments is violative of the provisions of article 31a (1) of the Constitution.

( 3 ) FOLLOWING the aforesaid Full Bench decision, we allow the writ petition and direct payment of compensation in lump sum. No costs. Advocates fee Rs. 150. The compensation shall be paid within three months from the date of the receipt of the order.

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