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Collector, Cuttack v. Bhima Sahu And Others
Factual and Procedural Background
Ac. 0.64 decimals of land in village Pandara were acquired by a notification dated 20-5-1964 under Section 4(1) of the Land Acquisition Act for construction of an Engineering Research Institute. Awards were made by the Land Acquisition Collector on 1-9-1970 and 26-8-1971 in favour of the opposite parties, providing compensation that included 6% interest and 15% solatium over market value. On reference under Section 18, the Subordinate Judge on 25-4-1977 enhanced the market value of the land to Rs. 43,000 per acre. The Collector filed appeals; during pendency of a First Appeal the opposite parties filed an execution (Execution Case No. 147 of 1977) and the Collector deposited Rs. 42,846 on 16-12-1977.
After remand proceedings and further litigation, this Court on 26-2-1982 rendered a common judgment that revised market values (operative portion set compensation at Rs. 40,000 per acre in context) and directed revision of decrees with statutory solatium of 15% and interest of 6% on any enhanced amount from date of dispossession until payment, with prior payments to be deducted.
Following disposal of appeals, opposite parties filed Execution Case No. 191 of 1983 claiming a further sum of Rs. 6,610 and subsequently amended to claim additional amounts (interest and solatium) under the Land Acquisition (Amendment) Act, 1984. The Collector (judgment-debtor) deposited Rs. 6,610 but contested further liability. The Subordinate Judge by order dated 19-6-1989 dismissed the Collector's Misc. Case No. 262 of 1989 and held the Collector liable to pay Rs. 1,09,741.50. The Collector filed the present civil revision challenging that order.
Legal Issues Presented
- Whether the decree-holder (opposite parties) are entitled to a sum of Rs. 1,09,741.50 claimed in Execution Case No. 191 of 1983.
- Whether the decree-holders are entitled to the benefit of enhanced solatium and interest under the Land Acquisition (Amendment) Act, 68 of 1984, where the original awards and court awards were passed prior to the period identified by the Amendment (the statutory window identified in the cited authorities as between 30-4-1982 and 24-9-1984).
- Whether, given the prior deposit of Rs. 6,610 by the Collector, the execution should be dismissed on the ground of full satisfaction.
Arguments of the Parties
Petitioner's (Collector's) Arguments
- The awards passed by the Land Acquisition Officer and the Subordinate Judge were prior to 30-4-1982, and therefore the decree-holders are not entitled to the higher rates of solatium and interest introduced by the Land Acquisition (Amendment) Act, 68 of 1984.
- A sum of Rs. 6,610 (the amount originally claimed) has already been deposited in the execution case, and consequently the execution should be dismissed on the basis of full satisfaction and no further liability should be fastened on the Collector.
Opposite Parties' Arguments
- The Subordinate Judge correctly rejected the petitioner's plea for dismissal and correctly held that the additional sum of Rs. 1,09,741.50 is payable by the judgment-debtor under the provisions of the Amendment Act.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Union of India v. Raghubir Singh, AIR 1989 SC 1933 (Five Judge Bench) | Held that the benefit of enhanced solatium under S.30(2) of the Amendment Act is confined to awards by the Collector or the Court made between 30-4-1982 and 24-9-1984; appeals qualifying for benefit must be against such awards. | The court relied on this ruling to interpret the temporal limitation in S.30(2) and applied it to find that decree-holders are not entitled to enhanced solatium where awards were made prior to the specified period. |
| K. Kamalajammanniavaru (dead) by L.Rs v. The Special Land Acquisition Officer, AIR 1985 SC 576 | Interpreted scope of S.30(2); held the benefit is confined to awards made in the specified period (as described in the Union of India v. Raghubir Singh discussion). | The court indicated agreement with the conclusion reached in this decision and relied on its reasoning supporting limited retrospectivity. |
| State of Punjab v. Mohinder Singh, AIR 1987 SC 768 | Referenced as an earlier decision that was overruled by the Five Judge Bench in Union of India v. Raghubir Singh (context: interpretation of S.30(2)). | The court noted the overruling and followed the narrower interpretation of S.30(2) adopted by the Five Judge Bench. |
| Bhag Singh v. Union Territory of Chandigarh, AIR 1985 SC 1576 | Presented an expanded meaning of S.30(2) that the Five Judge Bench rejected as not flowing reasonably from the sub-section. | The court aligned with the Five Judge Bench's rejection of Bhag Singh's expanded interpretation and treated that expanded meaning as incorrect. |
| Collector, Cuttack v. Saraswati Jena, (1991) 72 Cut LT 21 : AIR 1991 Orissa 274 (Full Bench) | Held that the Legislature identified awards to which higher solatium applies by reference to those passed during 30-4-1982 to 24-9-1984 and that awards made on remand (i.e., awards re-drawn following remand of older awards) should not be treated as within that period for purposes of enhanced solatium. | The court relied on this Full Bench decision to reinforce that enhanced compensation cannot be made applicable merely because an award was re-drawn on remand during the specified period; it applied this reasoning to conclude the decree-holders were not entitled to enhanced benefits. |
| Collector, Cuttack v. Uchhab Pati, (1990) 2 Orissa LR 31 | Expressed a similar view to Saraswati Jena regarding limited retrospectivity and ineligibility of enhanced solatium where original awards were made prior to the specified period. | The court noted this decision as supporting its conclusion that the decree-holders are not entitled to enhanced solatium and interest under the Amendment Act in the present facts. |
Court's Reasoning and Analysis
The court framed the central question as whether the decree-holders were entitled to enhanced solatium and interest under the Land Acquisition (Amendment) Act, 1984, in respect of awards and judicial decrees that were passed prior to the time-window identified by the Amendment and interpreted by higher courts.
The court reviewed authoritative pronouncements, principally the Five Judge Bench decision in Union of India v. Raghubir Singh (AIR 1989 SC 1933), which interpreted Section 30(2) of the Amendment Act to mean that the benefits of enhanced solatium apply only where the award by the Collector or Court was made between 30-4-1982 and 24-9-1984, and any appeal qualifying for the benefit must be an appeal against such an award. The Five Judge Bench rejected a broader construction (as in Bhag Singh) that would allow appellate orders disposed of in that period to attract benefits even if the original awards were made before 30-4-1982.
The court also relied on the Full Bench of this Court in Collector, Cuttack v. Saraswati Jena which emphasized the Legislature's intention to limit retrospectivity by specifying the period during which awards must have been passed, and warned that treating remand awards as falling within the period would frustrate that limited retrospectivity and lead to unworkability and equality concerns.
Applying these principles to the facts, the court noted that the awards by the Land Acquisition Collector and the Subordinate Judge were passed prior to the relevant statutory window (the opinion records that the awards were passed prior to the specified period), and this factual position was not disputed by the decree-holders. Given that the prerequisite temporal condition for applying enhanced solatium and interest under the Amendment Act was absent, the court concluded that the decree-holders could not claim the additional amounts under the Amendment Act.
The court further observed that the petitioner had already deposited Rs. 6,610 as claimed, and on the combined legal and factual basis concluded that no further liability could lawfully be imposed on the judgment-debtor. Consequently, the Subordinate Judge's order imposing further liability (Rs. 1,09,741.50) was erroneous.
Holding and Implications
CIVIL REVISION ALLOWED; ORDER DATED 19-6-1989 SET ASIDE.
Direct effects and orders:
- The civil revision filed by the Collector is allowed and the Subordinate Judge's order (19-6-1989) dismissing the Collector's Misc. Case and imposing additional liability of Rs. 1,09,741.50 is set aside.
- Misc. Case No. 262 of 1989 (as raised in the revision) is allowed; the Subordinate Judge (1st Court, Cuttack) is directed to pass appropriate orders in the execution (Execution Case No. 191 of 1983) consistent with this judgment.
- There will be no order as to costs.
- The court's decision is based on existing Supreme Court and this Court precedents interpreting the temporal scope of the Amendment Act; the judgment applies those precedents to the facts and does not purport to create a new legal precedent beyond following the established interpretations.
Petition allowed.
1. The short question that arises for consideration in this case is whether the decree-holder-opposite parties are entitled to a sum of Rs. 1,00,741.50 in Execution Case No. 191 of 1983 pending in the court of Subordinate Judge, 1st Court, Cuttack (Civil Judge, Sr. Division, Cuttack). The Collector, Cuttack, the judgment-debtor has filed this revision petition assailing the order dated 19-6-89 dismissing the Misc. Case No. 262 of 1989, filed by the Collector, Cuttack under Section 47 of the Code of Civil Procedure. The learned Subordinate Judge held that the petitioner is liable to pay a sum of Rs. 1,09,741.50 as claimed by the opposite parties towards higher rate of solatium interest and additional market value under the amended provisions of the Land Acquisition Act (for short ‘L.A Act’).
2. The relevant facts of the case leading to the present proceeding may be stated thus:
Ac. 0.64 decimals of land in village Pandara was acquired by the notification dated 20-5-1964 issued under Section 4(1) of the L.A Act for the purpose of construction of Engineering Research Institute at Pandara. On 1-9-70 and 26-8-71 the Land Acquisition Collector, Civil, Cuttack made two separate awards in L.A Misc. Case No. 151 of 1965-1966 for Rs. 7,360.00 and Rs. 2,288.95 in favour of the opposite parties. The amount under the awards included 6% interest and 15% solatium over and above the market value of the acquired land. On a reference under Section 18 of the L.A Act the learned Subordinate Judge by his judgment dated 25-4-77 in L.A Case No. 55 of 1977 enhanced the market value of the acquired land from Rs. 10,000/- to Rs. 43,000/- per acre. Against the said judgment the Collector, Cuttack filed First Appeal No. 261 of 1977 in this Court which was disposed of on 2-4-79 by an order of remand. During the pendency of the aforesaid First Appeal the opposite parties filed Execution Case No. 147 of 1977 for execution of the award. In pursuance of the order passed by this Court in the First Appeal, the petitioner deposited the entire claim amount of Rs. 42,846.00 in the said execution case vide Treasury Challan No. 306 dated 16-12-77. After remand the Subordinate Judge again awarded compensation and the First Appeal No. 357/1980 filed by the Collector, Cuttack against the said award was disposed of by this Court along with a batch of similar cases by a common judgment rendered on 26-2-1982 in which the market value of the acquired land was reduced. The operative portion of the judgment reads as follows:
“Keeping the pattern of the evidence in view and the several aspects taken note of above, we are inclined to think that the valuation of Rs. 45,000/- and Rs. 50,000/- per acre for the two classifications of land made by the learned Subordinate Judge should be set aside and as against Rs. 43,000/- per acre the value of Rs. 40,000/- per acre should be fixed and in respect of other lands for which compensation has been fixed at Rs. 50,000/- per acre, the earlier determination of Rs. 40,000/- per acre should be adequate. Over and above this amount, the claimants should be entitled to statutory solatium of 15% and interest of 6% on the enhanced amount of compensation from the date of dispossession till payment. In many cases, a part of the compensation amount has already been paid. The said payment should be deducted. The learned Subordinate Judge is directed to revise his decree on the aforesaid principle.”
After disposal of first appeal on 25-2-1982, opposite parties filed Execution Case No. 191 of 1983 claiming a further sum of Rs. 6610/- and by a subsequent amendment added further a claim of interest and solatium at the enhanced rate as provided in L.A Act as amended by Act 68 of 1984. The petitioner has already deposited a sum of Rs. 6610/- in the said execution case.
3. In the Execution Case No. 191 of 1982, the petitioner judgment-debtor filed an application contending inter alia that since First Appeal No. 357 of 1980 was finally decided on 25-2-1982, i.e prior to the introduction of the Land Acquisition (Amendment) Bill, 1982 in the Parliament and since the amount under execution has already been paid the execution case is liable to be dismissed on full satisfaction. The said application was rejected by the order dated 19-6-1989 and liability for additional further amount of Rs. 1,09,741.50 was saddled on the petitioner. Hence the grievance.
4. The thrust of submission of the learned Govt. Advocate appearing for the petitioner was that in this case the award passed by the Land Acquisition Officer as well as by the Subordinate Judge was prior to 30-4-1982 and therefore the claimant decree-holders were not entitled to the benefit of extra higher rate of solatium and interest under the provisions of L.A (Amendment) Act, 68 of 1984. Even so, submitted the learned Govt. Advocate, a sum of Rs. 6610/- claimed by the decree-holders has already been deposited in the execution case. In the circumstances, the petitioner is not liable to pay any further sum to the opposite parties and the execution case should have been dismissed on full satisfaction.
Sri D.K Das, appearing for the opposite parties on the other hand submitted that the learned Subordinate Judge rightly negatived the plea of the petitioner for dismissal of the execution case and rightly held that further sum of Rs. 1,09,741.50 should be paid by the judgment-debtor to the decree-holders under the provision of the Amendment Act.
5. On the rival submissions made by the learned Counsel for the parties the question formulated earlier arises for determination. The Five Judge Bench of the Apex Court in the case of Union of India v. Raghubir Singh (dead) by L.Rs, reported in AIR 1989 SC 1933 ruled that the appeal to the High Court or the Supreme Court, in which the benefit of the enhanced solatium is to be given, is confined to an appeal against an award of the Collector or of the Court rendered between 30 April, 1982 (date of introduction of Bill) and 24 September, 1984 (date of its passing). The Five Judge Bench while overruling its earlier decisions of the Court reported in AIR 1985 SC 576 (K. Kamalajammanniavaru (dead) by L.Rs v. The Special Land Acquisition Officer) and AIR 1987 SC 768, State of Punjab v. Mohinder Singh ruled (at pp. 1947-48 of AIR):
“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 30 April, 1982 and 24 September, 1984, or do they include also, as contended by the respondents, appeals disposed of between 30 April, 1982 and 24 September, 1984 even though arising out of awards of the Collector or the Court made before 30 April, 1982. We are of 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 S. 20(2), the order in appeal is an appellate order made between 30 April, 1982 and 24 September, 1984 — in which case the related award of the Collector or of the Court may have been made before 30 April, 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 appellate order of the High Court or of the Supreme Court were necessary. Plainly, having regard to the existing hierarchical structure of fora (forum?) contemplated in the parent. At these appellate orders could only be orders arising in appeal against the award of the Collector or of the Court. The words ‘any such award’ are intended to have deeper significance, and in the context in which those words appear in S. 30(2) it is clear that they are intended to refer to awards made by the Collector or Court between 30 April, 1982 and 24 September, 1984. In other words S. 30(2) of the Amendment Act extends the benefits of the enhanced solatium to cases where the award by the Collector or by the Court is made between 30 April, 1982 and 24 September, 1984 or to appeals against such award decided by the High Court and the Supreme Court whether the decisions of the High Court or the Supreme Court are rendered before 24 September, 1984 or after that date. All that is material is that the award by the Collector or by the Court should have been made between 30 April, 1982 and 24 September, 1984. We find ourselves in agreements with the conclusion reached by this Court in K. Kavalajammannivaru (dead) by L.Rs v. Special Land Acquisition Officer, AIR 1985 SC 576 (supra), and find ourselves unable to agree with the view taken in Bhag Singh v. Union Territory of Chandigarh, AIR 1985 SC 1576 (supra). The expanded meaning given to S. 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 S. 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 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 30 April, 1982 and 24 September, 1984……………….. We think that what Parliament intends to say is that the benefit of S. 30(2) will be available to an award by the Collector or the Court made between the aforesaid two dates or to an appellate order of the High Court or of the Supreme Court which arises out of an award of the Collector or the Court made between the said two dates. The word ‘or’ is used with reference to the stage at which the proceeding rests at the time when the benefit under S. 30(2) is sought to be extended. If the proceeding has terminated with the award of the Collector or of the Court made between the aforesaid two dates, the benefit of Section 30(2) will be applied to such award made between the aforesaid two dates, if the proceeding has passed to the stage of appeal before the High Court or the Supreme Court, it is at that stage when the benefit of S. 30(2) will be applied. But in every case, the award of the Collector or of the Court must have been made between 30 April, 1982 and 24 September, 1984.”
A Full Bench of this Court in the case of Collector, Cuttack v. Saraswati Jena, reported in (1991) 72 Cut LT 21 : (AIR 1991 Orissa 274), held inter alia that the Legislature expressly identified the awards to which the benefit of higher solatium would apply by stating that the awards must have been passed during the period 30-4-1982 to 24-9-1984; if it had meant that the words would apply not only to the awards as were originally passed during that period but also to awards which were passed on remand from the higher Courts, nothing prevented it to specifically say so; on the contrary such an interpretation would frustrate the very intention of the limited retrospectivity and would otherwise lead to unworkability as also violation of the constitutional guarantee of equality before the law. Elucidating the point this Court overserved that an order of remand may be passed by the High Court after lapse of many number of years and hence if the argument as advanced by the learned Counsel appearing for the opposite parties is accepted, it would mean that an award which had been passed twenty years back but is taken up by the appellate Court at a belated period and sent on remand and on such remand the matter fortuitously falls to be decided by the Civil Court during the period 30-4-1982 to 24-9-1984, the enhanced compensation becomes payable. The Court held that this could not be the intention of the legislature. After giving other instances to explain the weakness of the argument advanced on behalf of the claimant-opposite parties it was observed (at p. 278 of AIR):
“I have hence no hesitation to hold that the claimants in each of the revisions were not entitled to higher solatium merely because the Subordinate Judge drew up awards in accordance with the direction of this Court on 25-2-1982.”
A similar view was taken by me in the case of Collector, Cuttack v. Uchhab Pati, reported in (1990) 2 Orissa LR 31.
6. Considering the case at hand in the light of the principles laid down by the Supreme Court and this Court in the decisions noted above, the position is manifest that the decree-holders are not entitled to the benefit of higher solatium interest and additional market value under the provisions of Land Acquisition (Amendment) Act, 1984. Since the award by the Land Acquisition Collector and the Subordinate Judge was passed prior to the specified period, 25-2-82 to 30-4-82. This factual position has not been disputed by the decree-holders as appears from the order of the learned Subordinate Judge, even then the petitioner-judgment-debtor has deposited the sum of Rs. 6610/- as claimed by the judgment-debtor. In the circumstances, no further liability can be saddled on the judgment-debtor under law. The learned Subordinate Judge erred in holding that further sum of Rs. 1,09,741.50 is to be paid by the judgment-debtor to the decree-holder.
7. Accordingly the Civil Revision is allowed. The order dated 19-6-1989 in Misc. Case No. 252 of 1989 is set aside. The said Misc. Case is allowed. The learned Subordinate Judge 1st Court, Cuttack (Civil Judge, Sr. Division, Cuttack) is directed to pass appropriate order in the Execution Case. There will be however no order for cost.
Petition allowed.
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