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1987 Supreme(P&H) 343

PUNJAB & HARYANA HIGH COURT
H.N.Seth, S.P.Goyal and M.S.Liberhan JJ.
State Of Punjab
Versus
Krishan Lal
Civil MISCELLANEOUS No. 1001 of 1986,
Letter Patent Appeal No. 773 of 1982,
Decided On : MAY 4, 1987

Section 23(1A) of the Land Acquisition Act, 1894, as amended by the Land Acquisition (Amendment) Act, 1984, has limited retrospective operation as specified in Section 30 of the Amendment Act, and it cannot be applied to proceedings concluded before September 24, 1984, except in the cases specified in Section 30(1).

Headnote:

LAND ACQUISITION - SECTION 23(1A), 23(2), 28 - APPLICABILITY - RETROSPECTIVE OPERATION - AMENDMENT ACT, 1984 - SECTION 30 - INTERPRETATION - APPLICABILITY TO PROCEEDINGS CONCLUDED BEFORE SEPTEMBER 24, 1984.

Fact of the Case:

The applicant's land was acquired under the Land Acquisition Act, and he sought to modify a previous judgment to receive benefits under amended Sections 23(1A), 23(2), and 28 of the Act, introduced by the Land Acquisition (Amendment) Act, 1984.

Finding of the Court:

The court held that the applicant was entitled to the benefits of amended Sections 23(2) and 28, which increased the solatium for compulsory acquisition and the interest rate on the compensation amount, respectively. However, the court denied the applicant's claim for the benefit of Section 23(1A), which provided for an additional 12% per annum enhancement on the compensation amount from the date of notification to the date of the award.

Issues: 1. Whether Section 23(1A) of the Land Acquisition Act, 1894, as amended by the Land Acquisition (Amendment) Act, 1984, can be applied retrospectively to proceedings concluded before September 24, 1984, the date of commencement of the Amendment Act. 2. Whether the applicant is entitled to the benefits of amended Sections 23(2) and 28 of the Act.

Ratio Decidendi: 1. Section 23(1A) of the Land Acquisition Act, 1894, as amended by the Land Acquisition (Amendment) Act, 1984, has limited retrospective operation as specified in Section 30 of the Amendment Act. 2. Section 30(1) of the Amendment Act permits the application of Section 23(1A) only to proceedings pending on April 30, 1982, where no award had been made by the Collector, and to proceedings commenced after April 30, 1982, irrespective of the date of the award. 3. The applicant's case, where the award was made prior to April 30, 1982, and the proceedings were concluded between April 30, 1982, and September 24, 1984, does not fall within the ambit of Section 30(1) and, therefore, Section 23(1A) cannot be applied retrospectively.

Final Decision: The application was partially allowed. The applicant was granted the benefits of amended Sections 23(2) and 28 of the Act, but his claim for the benefit of Section 23(1A) was rejected.

Judgment

H.N.SETH, J.

1. By this application, the applicant Krishan Lal, whose land had been acquired under the provisions of the Land Acquisition Act, prays that judgement rendered by this Court in L.P.A. No. 773 of 1982, State of Punjab V/s. Krishan Lal, on July 22, 1983, be modified and he be given the benefits of Sections 23(1A), 23(2) and 28, as introduced and amended by the Land Acquisition (Amendment) Act, 1984. He accordingly prays for :-

(1) 12 per cent per annum enhancement of the amount of compensation from the date of notification under Section 4 of the Act till the date of the award of the Collector or the date of taking possession of the land, whichever was earlier (benefit under Section 23(1A) of the Act).

(2) 30 per cent addition to the market value of the land in consideration of compulsory acquisition (as per amended Section 23(2) of the Act).

(3) 9 per cent interest from the date of taking possession of the land up to a period of one year and thereafter at the rate of 15 per cent per annum for the subsequent period till payment is made (as per amended Section 28 of the Act).

2. Briefly stated, the facts giving rise to this application are that the land of the petitioner had been acquired under the Land Acquisition Act. After the Collector had made his award, the applicant took the matter up in reference under Section 18 of the Act before the Additional District Judge, Bhatinda, who, vide his order dated February 29, 1980, enhanced the compensation and directed that the same be calculated at the rate of Rs. 17/- per square yard. Aggrieved, the State of Punjab came up in appeal (R.F.A. No. 1752 of 1980) before this Court. The applicant also filed a cross-objection and claimed that the amount of compensation awarded by the Additional District Judge deserved to be enhanced. The learned single Judge, before whom the appeal and the cross-objection came up for hearing, enhanced the compensation payable to the applicant vide his judgement dated November 9, 1981, and directed that the same be calculated at the rate of Rs. 20/- per square yard. However, the said judgement of the learned single Judge was set aside by a Division Bench in L.P.A. 773 of 1982, on July 22, 1983, with the result that the order of the Additional District Judge dated February 29, 1980, awarding compensation to the applicant calculating the same at the rate of Rs. 17/- per square yard was restored. The parties submitted to the judgement dated July 22, 1983, and the matter rested there.

3. The acquisition of land under the Land Acquisition Act for public purposes became more numerous after independence. It was often found that poor people s land which was the only source of their livelihood became an inescapable necessity for the larger interest of the community, and compensation awarded to them under the provisions of the Act was, in the context, not adequate. The Government, therefore, introduced the Bill for making amendments in the Land Acquisition Act, 1894 , on April 30, 1982, and eventually enacted the Land Acquisition (Amendment) Act, 1984 (hereinafter referred to as the Act and the Amending Act) which came into force on September 24, 1984. In order to achieve its objective, the Amending Act introduced Sub-Section (1A) in Section 23 of the Act providing for awarding of extra amount of 12 per cent of the market value of the land per annum for the entire period beginning from the issue of preliminary notification up to the award of the Collector or taking of possession of the land, whichever be earlier. It also amended Sub-Section (2) of Section 23 and increased the amount of solatium for compulsory acquisition from 15 per cent to 30 per cent. The amendment made in Section 28 of the Act had the effect of increasing the rate of interest payable on the amount awarded by a Court in excess of that awarded by the Collector from 6 per cent to 9 per cent for the first year and thereafter to 15 per cent per annum for the subsequent years till the p

























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