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Smart Summary

Factual and Procedural Background

Considerable land in village Masoodpur was notified for acquisition for the public purpose of "Planned Development of Delhi" by a notification under Section 4 of the Land Acquisition Act, 1894 on 24.10.1961. A later notification under Section 4 was issued on 23.1.1965 notifying further land for the same public purpose. Declarations under Section 6 were made at different times for parts of the lands notified under both notifications, and the Collector made several awards: Award No. 1944 (25.2.1967), Award No. 2040 (2.12.1967), Award No. 2225 (26.3.1969) and Award No. 90/80-81 (22.12.1980).

On the Collector offering compensation under these awards, claimants sought references to the Reference Court; those references were answered at various times. Both claimants and the Union of India preferred appeals under Section 54 of the Act — claimants seeking enhancement of compensation and the Union seeking reduction. Some claimants also filed cross-objections in appeals by the Union. Four references arising out of Awards Nos. 2040 and 2225 were answered by Reference Courts and were the subject of four appeals heard along with the present matters. Related appeals in this Court and further appeals in the Supreme Court arising from earlier answers have been disposed of.

Legal Issues Presented

  1. What is the fair market value (and hence the appropriate amount of compensation) payable to claimants for lands in village Masoodpur acquired under the Section 4 notifications dated 24.10.1961 and 23.1.1965?
  2. Whether compensation awarded by the Collector should be enhanced (as claimed by the claimants) or reduced (as claimed by the Union of India), having regard to comparable determinations rendered in RFA 83/87 (Union Of India… v. Rajiv Gupta & Ors.).

Arguments of the Parties

Claimants' Arguments

  • Claimants sought further enhancement of the amounts of compensation awarded by the Collector.
  • They urged entitlement to compensation at the same rates as those determined in RFA 83/87 (Union Of India… v. Rajiv Gupta & Ors.), on the basis that lands acquired under the two notifications were similarly situated and had similar potentiality, topography and situation.

Union of India’s Arguments

  • Union of India filed appeals claiming reduction in the amount of compensation awarded by the Collector.
  • As noted in the opinion, Union of India did not bring to the Court's notice any circumstance that claimants should be entitled to market value less than that determined in RFA 83/87.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
RFA 83/87 Union Of India… v. Rajiv Gupta & Ors.… Determination of fair market value for land acquired through notifications dated 24.10.1961 and 23.1.1965 (rates for lands with and without china clay). The Court applied the rates and reasoning in this judgment and disposed of the present appeals in terms of Rajiv Gupta's case, holding that the lands in the present appeals were similarly situated and deserved the same market rates as fixed in RFA 83/87.
Civil Appeal No. 6271/98 (Sunder v. Union of India) The principle that interest is payable on solatium. The Court ordered that interest be paid on solatium in view of the decision in Sunder v. Union of India and other connected appeals decided on 19.9.2001.

Court's Reasoning and Analysis

The Court observed that the lands acquired under the notifications dated 24.10.1961 and 23.1.1965 were situate within the same revenue estate of Masoodpur and found their topography, situation and potentiality to be similar. The Court relied on its common judgment in RFA 83/87 (Union Of India… v. Rajiv Gupta & Ors.) delivered the same day, wherein fair market values for lands acquired under the respective notifications had been fixed (distinct rates for land with and without china clay). Following an established practice of awarding at least the same market rate to claimants whose land is acquired through the same notification for the same public purpose and situate in the same village — absent any special factor to justify deviation — the Court found no circumstance in these appeals to warrant a departure from the rates fixed in Rajiv Gupta's case.

On ancillary reliefs, the Court applied differential solatium and interest rules depending on the date the Reference Court answered the reference:

  • Where the Reference Court answered the reference prior to 30.4.1982: solatium at 15% on the enhanced market value and interest at 6% p.a. from the date of Collector taking possession until payment of compensation.
  • Where the Reference Court answered the reference after 30.4.1982: solatium at 30% on the enhanced market value; interest at 9% p.a. for one year from the date of Collector taking possession and thereafter at 15% p.a. until payment.

The Court further ordered payment of 6% interest under Section 4(3) of the Land Acquisition (Amendment and Validation) Act, 1967 on the market value as determined by the Court, from the date of expiry of three years from the date of notification under Section 4(1) to the date of tender of compensation by the Collector. The Court also ordered interest to be paid on solatium in view of the Supreme Court decision in Civil Appeal No. 6271/98 (Sunder v. Union of India) and connected appeals decided on 19.9.2001.

Holding and Implications

DISPOSED OF: The Court disposed of these 37 appeals in terms of the decision in Rajiv Gupta's case.

Final determinations and orders:

  • The appeals filed by Union of India are dismissed.
  • The appeals of the claimants and the claimants' cross-objections are allowed with proportionate costs.
  • For lands acquired through the notification dated 24.10.1961 and subject matter of Award Nos. 1944 (25.2.1967) and 2040 (2.12.1967): claimants are entitled to compensation at Rs. 30/- per sq. yard for land without china clay and Rs. 58/- per sq. yard for land with china clay.
  • For lands acquired through the notification dated 23.1.1965 and subject matter of Award No. 2225 (26.3.1969) and Award No. 90/80-81 (22.12.1980): claimants are entitled to compensation at Rs. 98/- per sq. yard for land with china clay and Rs. 72/- per sq. yard for land without china clay.
  • Solatium and interest orders as specified in the Court's reasoning (15%/30% solatium and corresponding interest rates depending on date of Reference Court's answer) shall apply.
  • Claimants will be paid 6% interest under Section 4(3) of the Land Acquisition (Amendment and Validation) Act, 1967 on the market value from the expiry of three years after notification under Section 4(1) until tender of compensation by the Collector.
  • Interest on solatium is payable in accordance with the Supreme Court decision in Civil Appeal No. 6271/98 (Sunder v. Union of India) and connected appeals decided on 19.9.2001.
  • Decree will be drawn to the extent of the amount of court-fee paid.

Implications: The decision applies the Court's contemporaneous determination in RFA 83/87 to the present appeals and provides specific enhanced compensation, solatium and interest directions as to these parties. The opinion does not purport to lay down a novel precedent beyond applying the rates and principles adopted in the Rajiv Gupta judgment and the referenced Supreme Court decision on interest on solatium.

Ordered accordingly.

    Bhooria & Ors. v. Union Of India .

    Devinder Gupta, J.— These 37 appeals have been preferred by the claimants as well as by Union of India under Section 54 of the Land Acquisition Act, 1894 (hereinafter referred to as the Act). Claimants have sought further enhancement in the amount of compensation whereas Union of India in the appeals filed by it is claiming reduction in the amount of compensation. Some of the claimants have filed cross-objections also in the appeals filed by Union of India seeking further enhancement in the amount of compensation.

    2. Considerable land situate in village Masoodpur was notified for being acquired for public purpose, namely, Planned Development of Delhi on the basis of notification issued under Section 4 of the Act on 24.10.1961 Declaration had not yet been made under Section 6 of the Act with respect to the land which was notified for being acquired on 24.10.1961 when another notification under Section 4 of the Act was issued on 23.1.1965 notifying further land for being acquired for public purpose at public expense, namely, Planned Development of Delhi.

    3. For part of the land notified on 24.10.1961 declaration under Section 6 was made on 5.5.1966 for which the Collector made his Award No. 1944 on 25.2.1967 For the remaining land declaration under Section 6 was made on 6.8.1966 and the Collector, Land Acquisition made his Award No. 2040 on 2.12.1967 Under the second notification issued under Section 4 of the Act on 23.1.1965 part of the land was included in notification issued on 6.9.1966 under Section 6 of the Act and for that land Award No. 2225 was made by the Collector on 26.3.1969 For the remaining land declaration under Section 6 of the Act was issued on 26.12.1968 and the Collector on 22.12.1980 made his Award No. 90/80-81.

    4. On the Collector offering amount of compensation under various awards claimants felt aggrieved and sought references, which were forwarded to the Reference Court. Some of the references were answered earlier against which appeals were filed in this Court and even further appeals were filed in Supreme Court, which stand disposed of.

    5. Out of the Collector's Award No. 2040 dated 2.12.1967 and Award No. 2225 dated 26.3.1969 four references were answered by the Reference Courts by separate awards which were also challenged by Union in four appeals which were heard by us alongwith these appeals. In the four appeals and these appeals the precise question was about the determination of the amount of compensation payable to the claimants for their lands acquired through notifications dated 24.10.1961 and 23.1.1965

    6. By a common judgment delivered by us in RFA 83/87 Union Of India… v. Rajiv Gupta & Ors.… the said fur appeals have been decided to-day holding the fair market value of the land acquired through notification issued under Section 4 of the Act on 24.10.1961 at Rs. 30/- per sq. yard and Rs. 58/- per sq. yard respectively for land without china clay and land with china clay. Fair market value for the land acquired through subsequent notification dated 23.1.1965 has also been determined in the said judgment for the land with china clay and land without china clay at Rs. 98/- per sq. yard and Rs. 72/- per sq. yard respectively. In these cases also learned Counsel for the claimants had urged that the claimants will be entitled to compensation at the same rate as would be determined in RFA 83/87, since the lands acquired through the two notifications were similarly situated having similar potentiality. Topography, situation and potentiality of the land acquired through the two notifications situate within the same revenue estate of Masoodpur has been noticed by us in the decision rendered by us today and for that reason no separate determination deserves to be made in these appeals. This Court consistently following the practice of allowing compensation at least at the same market rate to all the claimants whose land is acquired through the same notification for the same public purpose and situate in the same village unless it is shown that there is any other special factor to deviate from the practice of not allowing similar market value. No circumstance has been brought to our notice in these appeals that the claimants lands were not similarly situated. There is also no other circumstance brought to our notice even by the claimants that they will be entitled to higher amount of compensation. Union of India has also not brought to our notice that claimants would be entitled to market value less than the one determined in RFA 83/87. In this view of the matter these appeals deserve to be disposed of in terms of the decision in Rajiv Gupta's case (supra).

    7. Consequently the appeals filed by Union of India are dismissed. The appeals of the claimants and the cross-objections of the claimant/respondents are allowed with proportionate costs holding the claimants entitled to compensation @ Rs. 30/- per sq. yard and Rs. 58/- per sq. yard respectively for lands without china clay and with china clay which were acquired through notification dated 24.10.1961 and which are subject matter of Award Nos. 1944 and 2040 dated 25.2.1967 and 2.12.1967 respectively. The claimants whose lands were acquired through notification dated 23.1.1965 and are subject matter of Award No. 2225 dated 26.3.1969 and Award No. 90/80-81 dated 22.12.1980 are held entitled to compensation @ Rs. 98/- per sq. yard and Rs. 72/- per sq. yard respectively for lands with china and lands without china clay. Over and above the amount of compensation the claimants in such cases where the Reference Court answered the reference prior to 30.4.1982 will be paid solatium @ 15% on the enhanced market value and interest @ 6% p.a from the date of Collector taking possession till payment of the compensation. In all cases where the Reference Court answered the reference after 30.4.1982 claimants will be paid solatium at 30% on the enhanced market value and interest @ 9% p.a for a period of one year of the Collector taking possession and thereafter @ 15% p.a till the date of payment. The claimants in all cases will also be paid 6% interest under Section 4(3) of the Land Acquisition (Amendment and Validation) Act, 1967 on the market value of the land, as determined by this Court from the date of expiry of period of three years of the date of notification under Section 4(1) of the Act to the date of tender of compensation awarded by the Collector.

    8. Interest will also be paid to the claimants on solatium in view of the decision of Supreme Court in Civil Appeal No. 6271/98 (Sunder v. Union of India) and other connected appeals decided on 19.9.2001

    9. Decree will be drawn to the extent of the amount of Court-fee paid.

    Ordered accordingly.
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    Comments

    Bhooria & Ors. v. Union Of India .
    (Oct 5, 2001)