Krishi Utpadan Mandi Samiti Orai District, Jalaun Through Its Secretary vs Amar Singh And Anr.
- SCC(1996) 11 SCC 541
- Neutral1996 INSC 1093
- SCR[1996] Supp (6) SCR 629
Ratio decidendi
The rule this decision rests on
When a reference Court under the Land Acquisition Act, 1894 passes its award under Section 26 before an amendment to the Act comes into force, the High Court cannot award benefits under the amended provisions retroactively to the claimant on a reference appeal, as those provisions did not exist at the time the award was made and do not apply to awards passed prior to the amendment. The appropriate relief for a claimant in a reference proceeding under Section 18 of the Land Acquisition Act, 1894, where the award predates the 1984 amendments, is interest at 6% per annum on the enhanced compensation from the date of taking possession until the date of deposit, together with solatium at 15% on the enhanced compensation, and not the enhanced rates of interest, solatium and additional amounts introduced by the 1984 amendments. An application under Section 151, CPC for correction of a judgment of the High Court should be allowed where the High Court has granted relief under statutory provisions that did not apply ratione temporis to the award in question.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
PETITIONER: KRISHI UTPADAN MANDI SAMITI ORAI DISTRICT, JALAUN THROUGH ITS SECRETARY
RESPONDENT: AMAR SINGH AND ANR.
DATE OF JUDGMENT: 20/09/1996
BENCH: K. RAMASWAMY & G.B. PATTANAIK
JUDGMENT:
JUDGMENT
1996 Supp.(6) SCR 629
The following Order of the Court was delivered : Leave granted.
Though the notice was issued, neither the acknowledgment nor the unserved cover has been received from the second respondent. The first respondent is appearing through the counsel.
We have heard the learned counsel for the appellant and the first respondent. A notification under Section 4(1) of the Land Acquisition Act, 1894 was published on March 1, 1973. The award of the Collector was made on 15th October, 1975. On reference under Section 18, the Civil Court enhanced the compensation on January 30, 1975, On July 9, ' the appeal filed by the :State was dismissed confirming the compensation @ Rs. 10,000 per acre. Subsequently, the claimant's appeal was disposed of on August 24, 1987 with enhancement of the solatium and interest and also the additional amount under Section 23(2), proviso to Section 28 and Section 23(1-A) respectively. In March 1990, application under Section 151, CPC filed by the appellant for correction of the award granted by the High Court was dismissed on May, 1994. Thus, this appeal by special leave.
It is now well settled legal position that when the award itself under Section 26 was passed by the reference Court on January 10,1979, the High Court was obviously iii error hi awarding the additional amount under the Amendment Act 68 of 1984 as per Section 23(2), proviso to Section 28 and Section 23(1-A) enhancing solatium to 30%, interest @ 9% for one year and @ 15% thereafter from the date of taking possession on enhanced compensation and additional amount @ 12% per annum from the date of the notification till the date of taking possession or award, whichever is earlier. In these circumstances, the High Court was obviously in error in granting those additional amounts. When an application under Section 151, CPC was filed, the High Court ought to have corrected its mistake, but instead it dismissed it. Under these circumstances, we hold that the claimants are not entitled to the aforesaid benefits; instead, they are entitled to the interest @ 6% on the enhanced compensation from the date of taking possession of the land till the date of deposit and solatium at 15% on the enhanced compensation.
The appeal is accordingly allowed, but without costs.
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free