IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Reserved on: 28.05.2025 Date of Pronouncement: 09.07.2025 State of Haryana and anr. ...Petitioners VERSUS Sudesh Rani and others ...Respondents CORAM: HON'BLE MR. JUSTICE HARKESH MANUJA Present : Mr. Amit Aggarwal, DAG, Haryana for the petitioners.

Mr. N.C. Manchanda, Advocate for private respondents.

Mr. Kunal Soni, Advocate for Ms.Baani Chhibber Mahajan, Advocate for proforma respondents No.11 & 12.

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HARKESH MANUJA, J. (ORAL)

By way of present revision petition, challenge has been made to an order dated 14.11.2018 passed by the Additional District Judge, Karnal, whereby the private respondents were held entitled to a sum of Rs.48,32,561/- along with interest towards compensation amount against acquisition of land owned by their predecessor Mela Ram.

2. Briefly stated, the predecessor-in-interest of the private respondents, namely, Mela Ram owned 48 kanals 6 marlas of land in Village Guda, Tehsil Indri, District Karnal, which came to be acquired vide notifications dated 23.05.2002 and 14.02.2003 issued under Sections 4 & 6 of the Land Acquisition Act, 1894, for short ‘the 1894 Act’, respectively. The acquisition was for extension of New Grain and Vegetable Market, Indri, Karnal. On 24.12.2003, i.e. before the announcement of Award by the Land Acquisition Collector, respondent No.6 filed objections to the effect that Mela Ram stood surety to one M/s Sher Singh and Company, Ram Nagar, Karnal for a sum of Rs.34,00,000/- and against the said company, there was an outstanding sum of Rs.40,47,000/-; thus it was prayed that the amount of compensation against acquisition of land of Mela Ram be released in favour of Excise and Taxation Department, Haryana.

Later, an Award regarding compensation towards acquired land was announced on 30.12.2003. As per the said Award, a sum of Rs.,29,36,787/- aong with other statutory benefits became payable to the landowner-Mela Ram. Considering the dispute between the landowner and the office of respondent No.6, the Land Acquisition Collector vide its order dated 26.02.2004 directed not to release the amount of compensation till the issue of entitlement was got decided from the competent Court and in the meanwhile, compensation amount was deposited before the concerned treasury at Karnal.

3. In a related development, respondent No.6 on 12.10.,2004 passed an order of attachment of the compensation amount while exercising powers under Section 70 of the Punjab Land Revenue Act, 1885.

In addition, respondent No.6 also filed a petition under Section 145 of the Code of Civil Procedure, 1908, before the Civil Court at Karnal for execution of guarantee/ surety furnished by Mela Ram. The said petition came to be dismissed by the Court of learned Civil Judge (Senior Division), Karnal, vide decision dated 14.10.2004. The said decision was challenged vide CR No. 6133-2004, wherein at the time of issuance of notice of motion on 16.12.2004, the Land Acquisition Collector was directed not to release the amount of compensation to the private respondents.

Later, vide decision dated 25.07.2013, CR No.6133-2004 was disposed of with the following observations:-

“The case was heard at length. At this stage, learned senior counsel for respondents after seeking instructions from respondents, out of whom respondent no.5 is stated to be present in person in the Court, has stated that the petitioners may recover the due amount upto maximum limit of `34,00,000/- being surety bond amount from the compensation amount of the acquired land left by Mela Ram, since deceased, and the balance amount may be released to the respondents.

Accordingly the instant revision petition is allowed. The petitioners shall be entitled to recover their due amount up to maximum limit of `34,00,000/- being surety bond amount from the compensation amount payable for the acquired land in question. The balance compensation amount of the acquired land shall be released to rightful persons at the earliest in a