Point of Law: The acquiring authority to award additional interest by way of damages @ 15% per annum from the date when respondents-claimants were dispossessed till the date of notification under Section 4 of Act.

JUDGMENT :

1. By way of instant appeal, Award dated 13.05.2011 passed by learned Presiding Officer, Fast Track Court, Mandi, District Mandi, H.P. in Reference Case No. 166 of 2003, whereby the compensation amount was enhanced at the rate of Rs.30,000/- per biswa, has been assailed by the appellant.

2. In 1962-63, 14 biswas 6 biswansi of land comprised in Khata/Khatauni No. 113/120 min Khasra No. 306, in mauza Kangu, Tehsil Sunder Nagar, District Mandi, H.P. owned by the respondents (hereinafter referred to as claimants) was utilized by the State for the construction of KanguDhar Link Road. Neither the land of the respondents was acquired nor any compensation was paid to them. However, the State Government decided to acquire the land of the claimants at much later stage and accordingly proceedings under the Land Acquisition Act, 1894 (for short ‘Act’) were initiated. Notice under section 4 of the Act (for short, ‘section 4 notification’) was issued on 20.12.1995 and was published in ‘Rajpatra’ on 10.02.1996. Notice under Section 6 of the Act was issued on 12.04.1997. The Acquisition Collector (LAC) passed the Award on 19.9.1997. The market value of of the acquired land was assessed at Rs.26,536/-. The LAC had relied upon two transactions recorded vide mutation Nos. 340 and 353 dated 25.5.1995 and 05.02.1996 for arriving at the market value of the acquired land. Accordingly, a total amount of Rs.1,56,945/- was assessed as payable to the claimants. The breakup of which is as under:

3. On application of claimants under Section 18 of the Act, the LAC referred the matter to learned District Judge, Mandi, who further assigned the same to the Presiding Officer, Fast Track Court, Mandi for disposal in accordance with law. The Reference Court passed the impugned Award whereby the market value of the acquired land was assessed at Rs.30,000/-per biswa and the respondents were held entitled to market value of Rs.30,000/-per biswa for the acquired land with 12% additional compensation under Section 23 (1A) of the Act from the date of publication of the Section 4 notification till the date of Award passed by the LAC, 30% solatium under Section 23 (2) of the Act and interest at the rate of 9% per annum for one year from the date of notification and thereafter @ 15% per annum till realization on the enhanced compensation amount.

4. Appellants have assailed the impugned Award on the grounds that the assessment of the market value at Rs. 30,000/- per biswa is without any legal evidence. The Reference Court had made a single sale transaction as basis for arriving at the market value of the acquired land whereby only two Biswas of land was sold for Rs.61,000/-. It is further submitted that the allowance of compensation at Rs.30,000/per biswa without making any deductions in accordance with law is unsustainable.

5. I have heard learned counsel for the parties and have also gone through the records of the case carefully.

6. It is more than settled that the Reference Court does not sit in appeal over the Award passed by the LAC. The Reference Court has to independently adjudge the fair and just market value of the acquired land on the basis of material placed before it.

7. The claimants had examined as many as nine witnesses in order to prove the market value of the acquired land. Needless to say, that the market value relevant at the time of issuance of section 4 notification was to be taken into consideration. The claimants examined witness Mani Ram as PW4, who proved the sale deed Ex.PW4/ A whereby the land measuring one biswa three biswansi was sold for Rs.13,000/in the year 1989. Anot