JUDGMENT :

RAVI KRISHAN KAPUR, J.

1. The appellant challenges an order dated 19 December 2022 passed by the Additional District Judge Andaman & Nicobar Islands, Port Blair determining compensation under section 18 of the Land Acquisition Act 1894.

2. Briefly, the respondent, Andaman Timber Industries Ltd had sought for compensation in respect of 3.64 hectares of land, situated at Survey No. 22/3 & 23 at Shore Point Village, Ferrargunj, Tehsil Andaman and Nicobar Islands.

3. Originally, one Shri Sheoram had been granted an area of 56 acres, 1 kanal and 3 marlas situated at Shore Point under section 4(1) of the Andaman and Nicobar Islands (Land Tenure) Regulations, 1926, for a period of 30 years commencing from 1 January 1934 inter-alia for carrying on business of coconut plantations. The grant was subsequently transferred to Subhas Dweep Co-operative. Multipurpose Society and thereafter to Krishi Gopalan Silpa Sikshalaya. Ultimately, Krishi Gopalan Silpa Sikshalaya executed a lease deed in favour of the respondent.

4. In 1966, the Andaman and Nicobar Islands (Land Tenure) Regulations, 1926 was repealed by introducing the Andaman and Nicobar Land Revenue and Land Reforms Regulations 1966, whereby in view of Regulation 38, all land in the Union Territory of the Andaman and Nicobar Islands vested absolutely in the Government. For convenience, Regulation 38 reads as follows:

"38. (1) All land in the Union territory of the Andaman and Nicobar Islands, is vested absolutely in the Government, and, save as provided by or under this Regulation, no person shall be deemed to have acquired any property therein or any right to or over the same by occupation, prescription or conveyance or in any other manner what so ever except by a conveyance executed by, or under the authority of, the Government."

5. In 1990, a portion of the above land, bearing Survey No 22/3 & 23 measuring about 8.86 hects., at Shore Point Village was allotted to the respondent by issuance of a license meant for commercial purposes with retrospective effect from April 1964 for a sum of Rs.2,16,690/- (inclusive of interest). Pursuant to the above, the respondent set up a wood based industry which was ultimately directed to be closed in the year 2000 following the decision of the Supreme Court in T.N. Godavarman Thirumulkpad vs. Union of India & Ors.  1997 (2) SCC 267.

6. Upon being approached by the Port Management Board (PMB), for acquisition of 12.37 hectares of land at Shore Point village, Bambooflat for relocating the Port facilities and creating Foreshore Port facilities, the Collector notified the respondent about the acquisition of the above land of 8.86 hectares (Survey No. 22/3 and 3) and 3.51 hectares (Survey No.37) meant for public purposes under the Act. The land was proposed to be acquired in two phases. In Phase I, an area of 6.63 hectares was to be acquired at an estimated cost Rs.14,20,97,426. Thereafter, an area of 3.64 hectares is the subject matter of this proceeding and was to be acquired under Phase II. The remaining area of 2.23 hectares has been in the occupation of the employees of the respondent and does not form the subject matter of these proceedings.

7. Though an award was passed based on the proposal made by PMB for acquisition of the remaining portion of land of 3.64 hectares for an amount of Rs.3.03 crores, the same was deferred due to paucity of funds. Subsequently, pursuant to a challenge made against the said award by the claimant, an order was passed in W.P. No 197 of 2004, wherein this proceeding was directed to be completed within a prescribed time period.

8. In view of the above acquisition proceedings, three separate awards have been passed dated 26 September 2022, 15 March 2017 and 5 May 2018 respectively of which the award dated 15 March 2017 had been unconditionally accepted by the respondent and the respondent has also been paid the entire compensation.

9. Pursuant to the above, the respondent filed an application under section 18 of the Ac