UNION OF INDIA v. RANDHIR SINGH — 1992 DIGILAW 513 (DEL)

Mr. D. P. Wadhwa, J. ( 1 ) ALL these appeals have been filed by the Unionof India. The challenge is not to the award of compensation but to the applicability ofsections23 (l-A), 23 (2) and 28 of the Land Acquisition Act,1894 (for short the Act ) as introduced in the Act by the Land Acquisition (Amendment) Act, 1984 (for short the Amending Act ) which came intoforce on 24/09/1984 but the provisions aforesaid were neverthelessmade applicable from 30/04/1982 when the bill of the Amending Act wasintroduced in the Parliament. ( 2 ) IN R. F. A. 854/89 notifications under Sections 4, 6 and 17 were all issued on 19/04/1979 and it was stated that possession was taken perhapssome time in May 1979. The record does not show as to on which date thepossession was taken. The award by the Collector was made on 18/08/1980 and judgment by the Additional District Judge on reference made undersection 18 of the Act was given on 29/10/1987. The learned Additional ^district Judge said that since the matter retarding interpretation of the threeprovisions of the Act as amended by the Amending Act was pending in thesupreme Court, the claimants should be entitled to further amount interms of the judgment of the Supreme Court as and when delivered. ( 3 ) IN R. F. As. 407/90, 527/90, 528/90, 529/90 and 589/90 theimpugned order of the learned Additional District Judge is on anapplication filed under Section 28 of the Act as amended seekingenhancement of the amount of interest, solatium, etc. under Sections 23 (1-A), 23 (2) and 28 of the Act. In all these five appeals the awardof the Collector and/or the judgment of the learned Additional Districtjudge on a reference made under Section 18 of the Act, was given in 1983or in 1984 during the period 30/04/1982 and 24/09/1984. Thelearned Additional District Judge, therefore, modified the judgment deliveredearlier and awarded additional amount under Section 23 (1-A) at the rate of 12% per annum, solatium at the rate of 30/o on the market value undersection 23 (2) and further awarded interest under Section 28 of the Act at therate of 9/o perannum for one year from the date of taking possession andthereafter at the rate of 15/o per annum on the enhanced amount till payment. ( 4 ) THUS, in all these appeals the questions involved are about thepayment of additional amount to the land owners in terms of Sections 23 (1-A), 23 (2) and 28 of the Act. These Sections are as under : "sec. 23 (1-A) In addition to the market-value of the land, asabove provided, the Court shall in every case award an amountcalculated at the rate of twelve per centum per annum on suchmarket-value for the period commencing on and from the date ofthe publication of the notification under Section 4, Sub-section (1),in respect of such land to the date of the award of the Collector orthe date of taking possession of the land, whichever is earlier. ( 5 ) EXPLANATION-IN computing the period referred to in this Subsection, any period or periods during which the proceedings for the acquisition of the land were held up on account of any stay or injunction by theorder of any Court shall be excluded. " SEC. 23 (2): "in addition to the market-value of the land, as aboveprovided, the Court shall in every case award a sum of thirty per centum onsuch market-value, in consideration of the compulsory nature of theacquisition. "sec. 28. Collector may be directed to pay interest on excess compensation:- If the sum which, in the opinion of the Court, the Collector ought tohave awarded as compensation is in excess of the sum which the Collectordid award as compensation, the award of the Court may direct that thecollector shall pay interest on such excess at the rate of nine per centum perannum from the date on which he took possession of the land to the date ofpayment of such excess into Court;provided that the award of the Court may also direct thatwhere such excess or any part thereof is paid into Court after thedate of expiry of a period of one year from the date on whichpossession is taken, interest at the rate of fifteen per centum perannum shall be payable from the date of expiry of the said periodof one year on the amount of such excess or part thereof which hasnot been paid into Court before the date of such expiry. "section 30 of the Amending Act deals with transitional provisions andis as under :- (1) The provisions of Sub-section (1-A) of Section 23 of the principal Act, as inserted by Clause (a) of Section 15 of this Act,shall apply, and shall be deemed to have applied, also to, andin relation to, (a) every proceeding for the acquisition of any land under theprincipal Act pending on the 30th day of April, 1982 [thedate of introduction of the Land Acquisition (Amendment)Bill, 1982, in the House of the People], in which no awardhas been made by the Collector before that date; (b) every proceeding for that acquisition of any land under theprincipal Act commenced after that date, whether or notan award has been made by the Collector befor the date ofcommencement of this Act. (2) The provisions of Sub-section (2) of Section 23 and Section 28of the Principal Act, as amended by Clause (b) of Section 15and Section 18 of this Act respectively, shall apply, and shallband deemed to have applied, also to, and in relation to, anyaward made by the Collector or Court or to any order passedby the High Court or Supreme Court in appeal against any suchaward under the. provisions of the Principal Act after the 30thday of April, 1982, [the date of introduction of the Landacquisition (Amendment) Bill, 1982, in the House of thepeople] and before the commencement of this Act. (3) The provisions of Section 34 of the Principal Act, as amendedby Section 20 of this Act, shall apply, and shall be deemed tohave applied, also to, and in relation to,- (a) every case in which possession of any land acquired underthe Principal Act had been taken before the 30th day of- April, 1982 [the date of introduction of the Land Acquisition (Amendment) Bill, 1982, in the House of the People]. and the amount of compensation for such acquisition hadnot been paid or deposited under Section 31 of the principal Act until such date, with effect on and from that date;and (b) every case in which such possession has been taken on orafter that date but before the commencement of this Actwithout the amount of compensation having been paid ordeposited under the said Section 31, with effect on andfrom the date of taking such possession. " ( 6 ) ALL these provisions have been the subject-matter of decision byvarious judgments of the Supreme Court and one question arising out of theinterpretation of these provisions has been referred by two Judges Bench ofthe Supreme Court to a larger Bench. That judgment referring to largerbench is Mir Fazeelath Husssain and Others v. Special Deputy Collector, Landacquisition. Hyderabad, (1992) 3 S. C. C. 239. In this case the possession ofthe land was taken on 24/06/1968 and one Judge took the view that theclaimant would be entitled to interest on the enhanced amount of compensation at the rate of 6% per annum from 24/06/1968 upto 23/09/1984 and at 9% per annum from 24/09/1984 (the date when theamending Act came into force) till the payment of such amount in thecourt The other Judge, however, took the view that right from 24/06/1968, the date of taking possession, till payment of such amount was madein Court, the claimant would be entitled to interest at the rate of 6% perannum. In this case neither the award nor the reference under Section 18 ofthe Act was decided between 30/04/1982 and 24/09/1984. Ratherthe reference was decided by the Court on 30/08/1972 much before theamendment. The High Court decided the appeal on 24-6-1974 also beforethe amendment and decision of the Supreme Court referring the question tolarger Bench is dated 15/05/1992. ( 7 ) IN Union of India and Another v. Raghubir Singh (dead) by L. Rs. etc. , AIR 1989 Supreme Court 1933, a Constitution Bench of the Supremecourt held that Section 30 (2) of the Amending Act extended the benefit ofthe enhanced solatium (Section 23 (2) of the Act) to cases where the award bythe Collector or by the Court, on reference under Section 18 of the Act, wasmade between 30/04/1982 and 24/09/1984 or to appeals againstsuch awards decided by the High Court and the Supreme Court whether thedecisions of the High Court or the Supreme Court were rendered before 24/09/1984 or after that date. ( 8 ) AS we have seen above. Section 30 (2) of the Amending Act appliesto the provisions of Sub-section (2) of Section 23 and Section 28 of the Act. Section 23 (2) deals with award of solatium and Section 28 with payment ofinterest on excess compensation. ( 8 ) AS we have seen above. Section 30 (2) of the Amending Act appliesto the provisions of Sub-section (2) of Section 23 and Section 28 of the Act. Section 23 (2) deals with award of solatium and Section 28 with payment ofinterest on excess compensation. ( 9 ) PROVISIONS of Section 28 of the Act were subject-matter of consideration of this Court in Raghbir Singh (deceased by L. Rs) and Others v. Unionof India etc. , AIR 1985 Delhi 228, against which the appeal was heard by theconstitution Bench of the Supreme Court. The Supreme Court, however, inappeal before it dealt only with award of solatium under Section 23 (2) of theact. This Court had observed as under : THE wordings of the Section are clear. The theory of Sec. 28 isthat the excess compensation awarded by the District Court or thehigh Court or the Supreme Court is in fact a sum which thecollector "ought to have awarded as compensation" and as suchwas payable at the date of the taking of the possession. Thoughdetermined in future by the Courts the "excess compensation" relates back to the date of taking possession of the owner s land. And it ought to be so. The Government cannot take the land aswell as keep compensation with it. The taker of the land must payinterest on compensation for the delay. Therefore, the legislaturehas gone to the aid of the landowner and has made its intentionquite clear by opening the Section with the words : "if the sumwhich in the opinion of the Court the Collector ought to haveawarded as compensation is in excess of the sum which the Collector did award as compensation . Therefore if there is an excessbetween the amount awarded by the Collector and as determinedby the Court on reference under Section 18 or on appeal by thehigh Court or on a further appeal by the Supreme Court, thensuch excess compensation shall carry interest not from the datewhen the excess is determined but from the date the Collector tookpossession of the owner s land. That interest is 9 percent for thefirst year. After the expiry of the first year it is 15 per cent till thedate of payment. " ( 10 ) IT was stated that since judgment was reversed by the Supremecourt these observations cannot be relied upon by the claimants. That interest is 9 percent for thefirst year. After the expiry of the first year it is 15 per cent till thedate of payment. " ( 10 ) IT was stated that since judgment was reversed by the Supremecourt these observations cannot be relied upon by the claimants. We do notthink that would be the correct approach and as we have noticed above thesupreme Court in Union of India and Another v. Raghubir Singh (dead) byl. Rs. etc. , was concerned only with the award of solatium under Sec. 23 (2)and the question of interest under Section 28 of the Act was left untouched. Even otherwise we see no reasons to differ with the observations aforesaid bya Bench of this Court. ( 11 ) IN Union of India and Another etc. etc. v. Zora Singh etc. etc. , JT1991 (4) S. C. 538, the Supreme Court was concerned with the provisions ofsection 23 (1-A) of the Act read with Section 30 (1) (a) of the Amending Act. The Court overruled its earlier decision in Union of India and Others v. Filiptiago De Gama of Vedem Vasco De Gama, JT 1989 (4) S. C. 529, andobserved as under :- "we find that on the plain language of Section 23 (1-A) itself,which we have set out earlier, the duty was cast on the Court toaward an additional amount calculated as prescribed therein whichwould mean that it is directed to be awarded by the Court, namely,thr Reference Court, in all cases which are pending before thatcourt on 1/09/1984. Sub-section (l) (a) of Section 30undoubtedly lays down that the provisions of Section 23 (1-A) of theact are also mad - applicable to all proceedings for the acquisitionof any land under the said Act pending on 30/04/1982, whereno award had been made by the Collector before that date. At firstglance this would appear to suggest that the additional amountreferred to in Section 23 (1-A) could not be awarded before 30/04/1982. But this provision cannot be allowed to cut down the benefitsavailable to the claimants on a plain reading of Section 23 (1-A ). This is clear from the use of the word "also" in the openingpart of Section 3011 ). But this provision cannot be allowed to cut down the benefitsavailable to the claimants on a plain reading of Section 23 (1-A ). This is clear from the use of the word "also" in the openingpart of Section 3011 ). In our opinion, the view taken by the Benchcomprising two learned Judges of this Court in that case cannot beaccepted as correct as it is too narrow and unduly cuts down theoperation of the benefit conferred under the plain language ofsection 23 (1-A) of the said Act. " ( 12 ) CONSIDERING the provisions of the Act as amended by the Amending Act and the law as propounded by the Supreme Court as well as thiscourt we are of the opinion that in all these matters claimants are entitledto in addition to market value of the land (1) an amount calculated at therate of 12% per annum on such market value for the period commencing onand from the date of publication of the notification under Section 4 (1) inrespect of such land to the date of the award of the Collector or the date oftaking possession of the land whichever is earlier [section 23 (1-A); (2) inaddition to the market value of the land as above provided, 30% on suchmarket value in consideration of compulsory nature of acquisition [section23 (2)]; and (3) interest at the rate of 9/o per annum from the date on whichthe Collector took possession of the land to the date of payment of suchexcess amount as might have been awarded by the Additional District Judgeon a reference under Section 18 of the Act over and above that given bythe Collector in his award under Section 11 of the Act. Further to this, ifsuch excess or any part thereof is paid into Court after the date of expiryof period of one year from the date on which possession is taken, interestat the rate of 15% per annum from the date of expiry of the said period ofone year on the amount of such excess or part thereof which had notbeen paid into Court before the date of such expiry [sec-28]. Under thissection, however, payment is to be made if so directed by the Court of thedistrict Judge (or the Additional District Judge as the case may be ). ( 13 ) IN this view of the matter all these appeals fail and are dismissed. Under thissection, however, payment is to be made if so directed by the Court of thedistrict Judge (or the Additional District Judge as the case may be ). ( 13 ) IN this view of the matter all these appeals fail and are dismissed. There will be, however no order as to Costs.