Full Judgment Text
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PETITIONER:
MIR FAZEELATH HUSSAIN AND ORS.
Vs.
RESPONDENT:
SPECIAL DEPUTY COLLECTOR, LAND ACQUISITION HYDERABAD
DATE OF JUDGMENT15/05/1992
BENCH:
KASLIWAL, N.M. (J)
BENCH:
KASLIWAL, N.M. (J)
PUNCHHI, M.M.
CITATION:
1992 SCR (3) 394 1992 SCC (3) 239
JT 1992 (4) 339 1992 SCALE (1)1241
ACT:
Land Acquisition Act, 1894/Land Acquisition (Amendment)
Act, 1984:
Ss. 12, 18, 23, 28/18, 30-Land-Acquisition of-Award-
Compensation-To be similar for similarly circumstanced
lands.
Awards by Collector and Reference Court-Given prior to
30.4.1982-Solatium-To be given at the rate of 15%-Interest-
To be given at 6% from date of possession upto 23.9.1984.
Rate of Interest after 24.9.1984-Matter referred to
larger Bench.
High Court/Supreme Court-Appellate jurisdiction-
Correction of award-Effect of.
Words and phrases :
Expression "any such award" occurring in s. 30 (2) of
Land Acquisition (Amendment) Act, 1984-Interpretation of.
HEADNOTE:
Certain plots of land of the claimant-appellants were
acquired under the Land Acquisition Act, 1894. The Collector
gave the award on 10.6.1968 and the reference Court on
30.8.1972. The claimants filed appeal before the High Court
for enhancing the compensation. The entire land was
categorised in 6 belts according to its quality and
situation. The High Court allowed the compensation at
different rates for each of the 6 belts.
In the appeal by special leave to this Court it was
contended on behalf of the claimant-appellants that the High
Court committed an error in not awarding compensation for
the entire land under acquisition at least at the rate of
Rs. 1.75 per sq. yard as was awarded by it and affirmed by
this Court in respect of land in Survey Nos. 1033 to 1035,
because there was no distinction between the two lands which
were acquired by one and
395
the same notification. As regards the interest it was
contended that in the event of this Court enhancing the
compensation, the claimants were entitled to enhanced rate
of interest on the enhanced amount of compensation with
effect from the date of possession.
On behalf of the respondent, it was contended that the
award being given by the Collector on 10.6.1968 and by the
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reference Court on 30.8.1972 no benefit of the enhanced rate
of interest introduced by the Land Acquisition (Amendment)
Act, 1984 can be given to the claimants.
Allowing the appeal in part and referring the matter to
a larger Bench with regard to the interest, this Court,
HELD : (by the Court) :
(i) For the land falling in the four belts i.e. 1,2,3
and 4 the compensation ought to have been awarded at the
rate of Rs. 1.75 per sq. yard uniformly as they are
similarly circumstanced as Survey Nos. 1033, 1034, and 1035.
As regards the land falling in the fifth belt, reasonable
compensation should be Rs. 2,000 per acre. As regards the
land falling in sixth belt measuring 661 acres 4 guntas, it
is proved on record that the area consists of hillocks and
such the High court was correct in awarding the compensation
at the rate of Rs.500 per acre. [pp.399 EF; 405G]
(ii) The Land Acquisition (Amendment) Act, 1984
extends benefit of the enhanced solatium to cases where the
award by the Collector or by the Court is made between April
30, 1982, and September 24, 1984 or to appeals against such
awards decided by the High Court or the Supreme Court
whether the decisions of the High Court or the Supreme Court
are rendered before September 24, 1984 or after that date.
[pp. 401 F; 405 GH]
Union of India v. Raghubir Singh, [1989] 2 SCC 754,
followed.
K. Kamalajammanniavaru v. Special Land Acquisition
Officer, [1985] 1 SCC 582, referred to.
Union Territory of Chandigarh [1985] 3 SCC 737 and
State of Punjab v. Mohinder Singh & Anr., [1986] 1 SCC 365,
referred to as overruled.
(iii) Since the Collector gave the award on 10.6.1968
and the court (Chief Judge, City Civil Court) on 30.8.1972
the claimants/appellants are
396
entitled to solatium at the rate of 15 per cent only on the
enhanced amount of compensation. [pp. 401H; 402A; 405GH 406A
407F]
(iv) The claimants would be entitled to interest at the
rate of 6 per centum per annum up to 23.9.1984. [p.407 F]
Union of India v. Raghubir Singh [1989] 2 SCC 754,
followed.
(v) There being disagreement with regard to the rate of
interest to be allowed at 6 or 9 per centum per annum from
24.9.1984 till the actual payment in the Court and also in
respect of the direction that if such amount is not paid
within three months from the date of the order, the
claimants would be entitled to interest at the rate of 6 per
centum or 15 per centum per annum, the matter would be
referred to a larger Bench.
[pp. 407 F-H; 408A]
PER KASLIWAL, J.
1.1 The solatium is given on account of compulsory
acquisition while the interest is awarded to compensate the
delayed payment of the amount of compensation to which the
claimant becomes entitled as soon as possession is taken
from him till the entire amount is paid. The grant of
solatium comes into operation on the date when award is
given by the Collector or the Court and the rate of solatium
would be governed according to the rate prevailing on that
date. But so far as payment of compensation is concerned,
the grievance continues till the entire amount is paid to
the claimant. [p.404 C-E]
1.2 Harmonising the relevant provisions of the Land
Acquisition Act, keeping in view the intention of the
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legislature in enhancing the rate of interest under the Land
Acquisition (Amendment) ACt, 1984, and to do complete
justice between the parties, the claimants would be entitled
to interest on the enhanced amount of compensation at the
rate of 6 per centum per annum from 24.6.1968 the date of
taking possession up to 23.9.1984 and at 9 per centum per
annum from 24.9.1984 till the payment of such amount in the
Court. [p.405 A-D]
1.3 As the provision of granting interest at the rate
of 15 per centum per annum after the date of expiry of a
period of one year from the date on which possession is
taken cannot be applied in terms and the amount of
compensation has been enhanced by this Court and the State
had no opportunity to
397
make the payment earlier, it would be reasonable to allow
three months time to the State to make the payment and on
its failure to do so, the claimants would be entitled to
interest at 15 per centum per annum, from the date of this
order. [p.405 D-F]
PER PUNCCHI, J.
1.1. Right from 24.6.1968, the date of taking
possession, till payment of such amount is made in Court,
the claimant-appellants would be entitled to 6 per centum
per annum as interest. Neither the claimant-appellants are
entitled to 9 per centum per annum interest from 24.4.1984
till payment of such amount in Court nor is any time to be
granted to the State to pay it within three months at the
pain of being liable to pay interest at 15 per centum per
annum after three months. [p.407 C-D]
1.2 The amended Section 28 of the Land Aquisition Act,
1894 cannot be interpreted to entitle the claimant-
appellants 9 per centum interest in the first year and 15
per centum interest thereafter till payment in Court. The
interpretation of the provision or its harmonizing cannot be
so elastic or go to such length so as to violate its clear
intendment in the drive to ‘do complete justice’ or to meet
‘the ends of justice’. [p.406 A-B]
1.3 The expression "any such award" occurring in
s.30(2) of the Land Acquisition (Amendment) Act, 1984 was
interpreted by this Court* in the context to exclude the
benefit of enhanced solatium at the appellate level of the
High Court or the Supreme Court unless the appeal arose
against an award of the Collector or of the Court of a
District Judge rendered between April 30, 1982 and September
24, 1984. It can have no two meanings, one towards the
award of interest and the other towards solatium. Whatever
be the intrinsic quality of payment on account of solatium
and contrastingly that of the interest payable, claims to
both arise from the date of taking possession till the
payment is made in Court. If the governing rate of solatium
would be that as prevailing on the date of the award made by
the Collector or the Court, a fortiorari the governing rate
of interest would too be the one prevailing on the date of
he award made by the Collector or the Reference Court.
Inescapably the language of the statute and the spirit
mandates so. [p.406 C-G]
*Union of India v. Raghubir Singh [1989] 2 SCC 754,
referred to.
2. The High Court at its level and this Court as the
last appellate, are courts of correction and in the exercise
of the appellate jurisdiction
398
are empowered to correct the award of the District Judge, as
if the decision made by it would have been the award of the
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District Judge.
JUDGMENT:
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 706 of
1975 .
From the Judgment and Order dated 24.6.1974 of the
Andhra Pradesh High Court in C.C.C. Appeal No. 220 of 1972.
K. Madhava Reddy, S. Markandeya, G. Seshagiri Rao, K.
Purushottam Reddy, K. Prakash Reddy, Ms. Renu Gupta and
Ms. Chitra Markandeya for the Appellants.
C. Seetharamiah, T.V.S.N. Chari and Ms. Manjula Gupta
for the Respondent.
The Judgments of the Court were delivered by
KASLIWAL, J. This appeal by grant of special leave is
directed against the judgment of the Andhra Pradesh High
Court dated 24.6.1974. The claimants have filed this appeal
praying for raising the compensation of the acquired land at
the rate of Rs. 5 per sq. yard. The High Court has granted
compensation of the acquired land on a belt wise basis with
reference to the distance from the Hyderabad Bombay Road in
the following manner.
Survey Nos. 1057, 1058, 1061, 1062 and 1065 (land
abutting Hyderabad-Bombay Road making a total of 100 acres
4 guntas in the first belt, the compensation has been
awarded at the rate of Rs. 5,000 per acre. As regards
Survey Nos. 1056, 1059, 1060, 1063 & 1064, total extent of
96 acres 7 guntas in the second belt, compensation awarded
at the rate of Rs. 4000 per acre. Survey Nos. 1055, 1052,
1051, 1046 and 1045 - total extent of 100 acres 9 guntas in
third belt, compensation awarded at the rate of Rs. 3,000
per acre. Compensation for Survey Nos. 1044, 1047, 1050,
1053 & 1054, total extent of 99 acres 39 guntas, in the
fourth belt has been allowed at the rate of Rs. 2,000 per
acre. Compensation for Survey Nos. 1043, 1048 and 1049 to
the extent of 47.03 acres in the fifth belt awarded at the
rate of Rs. 1,000 per acre.
Lastly the land in the sixth belt forming a huge block
of 661 acres 4 guntas comprising of Survey No. 1009, the
High Court has awarded the
399
compensation at the rate of Rs 500 per acre as it was a
hillock.
It has been contended on behalf of the appellants that
in respect of land in Survey Nos. 1033, 1034 and 1035 which
was acquired by the same notification, the compensation was
awarded by the High Court at the rate of Rs. 1.75 per sq.
yard by decision dated 7.9.1973. It has been further
submitted that the said judgment of the High Court was
affirmed by this Hon’ble Court on 9.9.1974 by dismissing
the special leave petitions numbers 1689-1690/70 filed by
the State Government. It may be noted that in that case
the High Court had affirmed the compensation awarded by the
District Judge at the rate of Rs. 1.75 per sq. yard. It has
been contended on behalf of the appellants that there is no
distinction with regard to the land in dispute and the land
comprised in Survey Nos. 1033, 1034 and 1035 and the High
Court in the present case committed a mistake in not
awarding compensation at least at the rate of Rs. 1.75 per
sq. yard. We have taken into consideration the entire facts
and circumstances of the case. In our view so far as the
land comprising in Survey Nos. 1057, 1058, 1061, 1062 and
1065, 1056, 1059, 1060, 1063 and 1064, 1055, 1052, 1051,
1046 and 1045, 1044, 1047, 1050, 1053, and 1054 falling in
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the four belts i.e. 1,2,3 and 4 the compensation ought to
have been awarded at the rate of Rs. 1.75 per sq. yard
uniformly as they are similarly circumstanced as Survey
Nos. 1033, 1034 and 1035. As regards the land - Survey Nos.
1043, 1048 and 1049 falling in the fifth belt, in our view
reasonable compensation should be Rs.2,000 per acre. As
regard the land - Survey No. 1009 falling in sixth belt
measuring 661 acres 4 guntas, it is proved on record that
the area consists of hillocks and as such the High Court was
correct in awarding the compensation at the rate of Rs. 500
per acre and we do not find any valid reason to take a
different view in respect of the compensation awarded for
this land falling in the sixth belt.
After reserving our judgment we thought it necessary to
hear further arguments on the question of allowing solatium
and interest under the provisions of the Land Acquisition
(Amendment) Act, 1984 (hereinafter referred to as the
‘Amendment Act, 1984’). Learned Counsel for the parties
were heard at length.
The following question of law was referred for decision
to the Constitution Bench of this Court in Union of India v.
Raghubir Singh, [1989] 2 SCC 754.
400
"Whether under the Land Acquisition Act, 1894 as
amended by the Land Acquisition (Amendment) Act,
1984 the claimants are entitled to solatium at 30
per cent of the market value irrespective of the
dates on which the acquisition proceedings were
initiated or the dates on which the award has been
passed?"
The Constitution Bench in the above case held as under:
"The question is : What is the meaning of the words
"or to any order passed by the High Court or
Supreme Court on appeal against any such award?"
Are they limited, as contended by the appellants,
to appeals against an award of the Collector or the
Court made between April 30, 1982 and September 24,
1984, or do they include also, as contended by the
respondents, appeals disposed of between April 30,
1982 and September 24, 1984,even though arising out
of awards of the Collector or the Court made before
April 30, 1982. We are of the opinion that the
interpretation placed by the appellants should be
preferred over that suggested by the respondents.
Parliament has identified the appeal before the
High Court and the appeal before the Supreme Court
by describing it as an appeal against ‘any such
award’. The submission on behalf of the
respondents is that the words ‘any such award’ mean
the award made by the Collector or Court, and carry
no greater limiting sense; and that in this
context, upon the language of Section 30(2), the
order in appeal is an appellate order made between
April 30, 1982 and September 24, 1984 - in which
case the related award of the Collector or of the
Court may have been made before April 30, 1982. To
our mind, the words ‘any such award’ cannot bear
the broad meaning suggested by learned counsel for
the respondents. No such words of description by
way of identifying the appellant order of the High
Court or of the Supreme Court were necessary.
Plainly, having regard to the existing hierarchical
structure of fora contemplated in the parent Act
those appellate orders could only be orders arising
in appeal against the award of the Collector or of
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the Court. The words ‘any such award’ are intended
to have deeper significance, and in the context in
which those words appear in Section 30(2) it is
clear
401
that they are intended to refer to award made by
the Collector or Court between April 30, 1982 and
September 24, 1984. In other words Section 30(2)
of the Amendment Act extends the benefit of the
enhanced solatium to cases where the award by the
Collector or by the Court is made between April 30,
1982 and September 24, 1984 or to appeals against
such awards decided by the High Court and the
Supreme Court whether the decisions of the High
Court or the Supreme Court are rendered before
September 24, 1984 or after that date. All that
is material is that the award by the Collection or
by the Court should have been between April 30,
1982 and September 24, 1984. We find ourselves in
agreement with the conclusion reached by this Court
in K. Kamalajammanniavaru v. Special Land
Acquisition Officer, and find ourselves unable to
agree with the view taken in Bhag Singh v. Union
Territory of Chandigarh. The expanded meaning
given to Section 30(2) in the latter case does not,
in our opinion, flow reasonably from the language
of that sub-section. It seems to us that the
learned Judges in that case missed the significance
of the word ‘such’ in the collocation ‘any such
award’ in Section 30(2). Due significance must be
attached to that word, and to our mind it must
necessarily intend that the appeal to the High
Court or the Supreme Court, in which the benefit of
the enhanced solatium is to be given, must be
confined to an appeal against an award of the
Collector or of the Court rendered between April
30, 1982 and September 24, 1984."
Thus, it was clearly held in the above case that the
Amendment Act, 1984 extends benefit of the enhanced solatium
to cases where the award by the Collector or by the Court is
made between April 30, 1982, and September 24, 1984 or to
appeals against such awards decided by the High Court or the
Supreme Court whether the decisions of the High Court or the
Supreme Court are rendered before September 24, 1984 or
after that date. The view taken in Bhag Singh v. Union
Territory of Chandigarh, [1985] 3 SCC 737 as well as State
of Punjab v. Mohinder Singh & Anr., [1986] 1 SCC 365 was
overruled and preferred the view taken in K.
Kamalajammanniavaru v. Special Land Acquisition Officer,
[1985] 1 SCC 582.
In the case in hand before us the Collector gave the
award on
402
10.6.1968, the Court (Chief Judge, City Civil Court gave the
award on 30.8.1972, and the High Court decided the appeal
on 24.6.1974. Thus the claimants/appellants are entitled to
solatium at the rate of 15 per cent only on the enhanced
amount of compensation.
Now so far as the question of interest is concerned,
Section 28 of the Amendment Act, 1984 provides for payment
of interest on excess compensation. Section 28 as
originally stood in the Act allowed interest at the rate of
6 per centum per annum from the date of taking possession of
the land till the date of payment of excess amount into
Court. The following amendment of Section 28 was inserted
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by Section 18 of the Amendment Act, 1984:
"18. Amendment of Section 28. - In Section 28 of
the principal Act,
(a) for the words "six per centum", the words "nine
per centum" shall be substituted;
(b) the following proviso shall be inserted at the
end, namely:- "Provided that the award of the
Court may also direct that where such excess or
any part thereof is paid into Court after the
date of expiry of a period of one year from the
date on which possession is taken, interest at
the rate of fifteen per centum per annum shall
be payable from the date of expiry of the said
period of one year on the amount of such excess
or part thereof which has not been paid into
Court before the date of such expiry."
Section 30 of the Amendment Act, 1984 provided for
transitional provisions and sub-section (2) which dealt with
Section 28 of the principle Act is reproduced as under :
"(2) The provisions of sub-section (2) of Section
23 and Section 28 of the principal Act, as amended
by clause (b) of Section 15 and Section 18 of this
Act respectively, shall apply, and shall be deemed
to have applied, also to, and in relation to, any
award made by the Collector or Court or to any
other passed by the High Court or Supreme Court in
appeal against any such award under the provisions
of the principal Act after the 30th
403
day of April, 1982 [the date of introduction of the
Land Acquisition (Amendment) Bill, 1982, in the
House of the People] and before the commencement of
this Act."
It has been contended on behalf on the
claimants/appellants that they are not claiming the enhanced
rate of interest retrospectively, but they are claiming the
enhanced rate of interest on the enhanced amount of
compensation which is now allowed by this Court. Learned
Counsel submits that transitional provisions contained in
Section 30(2) of the Amendment Act, 1984 do not apply to the
enhanced amount of compensation allowed for the first time
by this Court. It has been submitted that the case Union of
India v. Raghubir Singh (supra) decided by the constitution
Bench dealt with the question of solatium only and not with
the question of interest on the enhanced amount of
compensation. It has been further argued that once this
Hon’ble Court decides that the claimants were entitled to
enhanced compensation and the possession of the land having
already been taken as back as on 24.6.1968, the claimants
are entitled to enhanced rate of interest on the enhanced
amount of compensation with effect from 24.6.1968.
On the other hand, it has been contended on behalf of
the respondent that the reasoning as given for the enhanced
solatium by the Constitution Bench in the case of Union of
India v. Raghubir Singh (supra) shall also apply to the case
of enhanced rate of interest also. It has been submitted
that legislature by introducing special provisions by the
Amendment Act of 1984 for the benefit of the claimants,
clearly laid down in Section 30 of the transitional
provisions that such benefit would be available only in case
of such awards made by the Collector or Court or to any
order passed by the High Court or Supreme Court in appeal
against any such award between the 30th day of April, 1982
and the commencement of the Act i.e. 24th September, 1984.
It is, thus contended that in the present case the award was
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given on 10.6.1968 and the reference Court gave the award
on 30.8.1972 as such no benefit of the enhanced rate of
interest introduced by the Amendment Act of 1984 can be
given to the claimants.
I have given my thoughful consideration to the
arguments advanced by Learned Counsel for the parties. So
far as the case Union of India v. Raghubir Singh (supra)
decided by the Constitution Bench is concerned, it
404
dealt with the question of enhanced solatium only and the
question of allowing enhanced rate of interest on the
enhanced compensation was not considered nor decided in that
case. However, the Constitution Bench was dealing with sub-
section (2) of Section 30 of the transitional provisions of
the Amendment Act, 1984 which dealt with the provisions of
sub-section (2) of Section 23 and Section 28 of the
principal Act as amended by clause (b) of Section 15 and
Section 18 of the Amendment Act, 1984. Sub-section (2) of
Section 23 of the principal Act after amendment enhanced the
amount of solatium from 15 to 30 per centum and the same
reasoning will apply to the provisions of Section 28 which
dealt with the provisions of enhanced rate of interest on
the amount of enhanced compensation. However, there is a
slight distinction in the case of award of solatium and the
award of interest on the amount of compensation. The
solatium is given on account of compulsory acquisition while
the interest is awarded to compensate the delayed payment of
the amount of compensation to which the claimants becomes
entitled as soon as possession is taken from him till the
payment is made in the Court. Thus, so far as the grant of
solatium for compulsory nature of the acquisition is
concerned, it comes into operation on the date when award is
given by the Collector or the Court and the rate of solatium
would be governed according to the rate prevailing on the
date of award made by the Collector or the Court. But so
far as the payment of compensation is concerned, the
grievance continues till the entire amount is paid to the
claimant. Now, if we consider the provisions of the
Amendment Act, 1984 and the decision of the Constitution
Bench in Union of India v. Raghubir Singh (supra), it
becomes clear that the benefit of enhanced rate of interest
under Section 28 cannot be given till the coming into force
of the Amendment Act, 1984, i.e. 24th September, 1984.
However, if we look to the statement of objects and reasons
of the Land Acquisition (Amendment) Act, 1984 (Act No. 68)
of 1984 it mentions that the individual and institutions who
are unavoidably be deprived of their property rights in land
need to be adequately compensated for the loss keeping in
view the sacrifice they have to make for the larger interest
of the community. The ligislature by Amendment Act, 1984
which came into force on 24th September, 1984 has clearly
enhanced the rate of interest from 6 to 9 per centum and
further given power to the Court that where such excess or
any part thereof is paid into Court after the date of expiry
of a period of one year from the date on which possession is
taken, to allow interest at the rate of 15 centum per annum
payable from the date of expiry
405
of the said period of one year. Even if the provisions of
the Amendment Act, 1984 are applied prospectively in respect
of enhanced rate of interest, I find no ground or
justification not to allow the rate of interest at 9 per
cent per centum per annum on or after 24.9.1984.
Thus, hormonising these provisions and keeping in view
the intention of the legislature in enhancing the rate of
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interest under the Amendment Act, 1984 and to do complete
justice between the parties, I consider that the following
direction would be proper to meet the ends of justice. The
claimants in the present case are not entitled to enhanced
solatium as the award by the Collector was given on
10.6.1968 and the award by the reference Court was also
given on 30.8.1972 and will only be entitled to 15 per
centum on the enhanced amount of compensation. This is in
accordance with the ratio of the decision of the
Constitution Bench in Union of India v. Raghubir Singh
(supra). Now, so far as the rate of interest is concerned,
the claimants would be entitled to interest on the enhanced
amount of compensation at the rate of 6 per centum per annum
from 24.6.1968 the date of taking possession up to 23.9.1984
and at 9 per centum per annum from 24.9.1984 till the
payment of such amount in the Court. As the provision of
granting interest at the rate of 15 per centum per annum
after the date of expiry of a period of one year from the
date on which possession is taken cannot be applied in terms
and the amount of compensation has been enhanced now by this
Court and the State had no opportunity to make the payment
earlier, I deem it proper to grant reasonable time to the
State after which it may be liable to pay interest at 15 per
centum per annum. Thus, it is directed that if such amount
is not paid within three months from the date of this order,
the claimants would be entitled to interest at the rate of
15 per centum per annum on such amount from the date of this
order.
I, therefore, allow the appeal in part and set aside
the order of the High Court and grant the enhanced
compensation to the appellants and interest as indicated
above. In the circumstances of the case, both the parties
shall bear their own costs throughout.
PUNCHHI, J. I have gone through the judgment prepared
by my learned brother N.M. Kasliwal, J. I agree to the rate
of compensation per acre to be awarded for the land
acquired. I also agree that the claimants-appellants are
entitled to a solatium at the rate of 15 per centum only on
406
the enhanced amount of compensation and not 30 per centum as
claimed. I differ, however, with respect, to the rate of
interest proposed to be given to the claimants-respondents
by my learned brother on the compensation being enhanced by
us. The amended Section 28 cannot come to the aid of the
claimants-appellants so as to entitle them 9 per centum
interest in the first year and 15 per centum interest
thereafter till payment in Court. The interpretation of the
provision or its harmonizing cannot be so elastic or go to
such length so as to violate its clear intendment in the
drive to ’do complete justice’ or to meet ’the ends of
justice’. It is true though that the Constitution Bench in
Union of India v. Raghubir Singh, [1989] 2 SCC 754 was only
required to interpret the relevant provisions of the Land
Acquisition Act as amended in the year 1984 in regard to the
rate of solatium but the expression "any such award" was
interpreted in the context to exclude the benefit of
enhanced solatium at the appellate level of the High Court
or the Supreme Court unless the appeal arose against an
award of the Collector or of the Court of a District Judge
rendered between April 30, 1982 and September 24, 1984.
Here instantly, neither the award of the Collector nor the
award of that Court came within the two crucial dates.
Rather the Reference was decided by the Court on 30th
August, 1972 much before the amendment and the appeal before
the High Court too was decided on 24.6.1974 much before the
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amendment. The High Court at its level and this Court as
the last appellate, aree courts of correction and in the
exercise of the appellate jurisdiction are empowered to
correct the award of the District Judge, as if the decision
made by it would have been the award of the District Judge.
The interpretation of the expression "any such award" can
have no two meanings, one towards the award of interest and
the other towards solatium. Whatever be the intrinsic
quality of payment on account of solatium and contrastingly
that of the interest payable, claims to both arise from the
date of taking possession till the payment is made in Court.
If the governing rate of solatium would be that as
prevailing on the date of the award made by the Collector or
the Court, a fortiorari the governing rate of interest would
too be the one prevailing on the date of the award made by
the Collector or the Reference Court. Inescapably the
language of the statute and the spirit mandates so. The
Amendment Act of 1984, with effect from September 24, 1984,
has enhanced rate of interest from 6 per centum and in the
given situation at 15 per centum but only to those
acquisitions which commence from that date and thereafter.
The only exception is with regard to those
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acquisitions which stood initiated and were pending at the
stages conceived of by the transitional provisions. I
therefore regret my inability to agree with the views of my
learned brother on this aspect. Agreeing with him on the
rate of interest proposed would mean militating against the
ratio of the Constitution Bench in Raghubir Singh’s case
(supra) and doing violence to the Statute. I would rather
order grant of 6 per centum interest on the enhanced
compensation to the claimants-appellants from the date of
taking possession of the land acquired till payment, denying
myself the exercise of ’harmonising’ these provisions and
refraining myself from discovering any hidden meaning when
the language of the statute is clear and plain and has been
interpreted in Raghubir Singh’s case (supra). Therefore, I
am of the view that right from 24-6-1968, the date of taking
possession till payment of such amount is made in Court, the
claimants-appellants are entitled to 6 per centum per annum
as interest. Sequally it is my view that neither the
claimants-appellants are entitled to 9 per centum per annum
interest from 24-4-1984 till payment of such amount in Court
nor is any time to be granted to the State to pay it within
three months at the pain of being liable to pay interest at
15 per centum per annum after three months.
Therefore, I agree that the appeal be allowed in part
and the Judgment and order of the High Court be set aside to
that extent. The enhanced compensation be granted to the
claimants-appellants with 15 per centum solatium and 6 per
centum per annum interest as indicated above. I also agree
that both the parties shall bear their own costs throughout.
In view of the separate judgments given by us and
disagreement on one point, we pass the following order in
the appeal.
The claimants-appellants would be entitled to enhanced
compensation as well as 15% solatium on the total amount of
compensation. As regards the interest we both agree that
the claimants are entitled to interest at the rate of 6 per
centum per annum up 23.9.1984. However, we are in
disagreement with regard to the rate of interest to be
allowed 6 or 9 per centum per annum from 24.9.1984 till the
actual payment in the Court and also in respect of the
direction that if such amount is not paid within three
months from the date of this order, the claimants would be
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entitled to interest at the rate of 6 per centum or 15 per
centum per annum.
We, therefore, allow this appeal in part and set aside
the judgment of the High Court to the extent of points
agreed. As regards the points in
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disagreement, we request the Hon’ble the Chief Justice to
constitute a larger Bench to resolve the conflict. In view
of the fact that the point in controversy though short one
but is likely to affect large number of cases, we request
the Hon’ble the Chief Justice to constitute a larger Bench
at the earliest.
R.P. Appeal partly allowed.
409