AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Rajasthan Urban Improvement Act, 1959 (for short 'the Act')
  • Land Acquisition (Amendment) Act 68 of 1984
  • Section 52 of the Rajasthan Urban Improvement Act, 1959
  • Section 53, Sub-section (6) of the Land Acquisition Act
  • The Land Acquisition Act, 1894 (Central Act 1 of 1894)
  • Section 55 or Section 59 of the Land Acquisition Act
  • Section 60-A of the Act
  • Central Act 68 of 1984
  • Section 54 of the Act
  • Rajasthan Land Acquisition Act, 1953
  • Section 54 or Section 56 of the Land Acquisition Act
  • Section 60-A of the Land Acquisition Act
  • the principal Land Acquisition Act 1 of 1894
  • State Amendment Act 29 of 1987
  • Central Amendment Act, Section 23(1-A)
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Rajasthan Urban Improvement Act, 1959 (for short 'the Act')
  • Land Acquisition (Amendment) Act 68 of 1984
  • Section 52 of the Rajasthan Urban Improvement Act, 1959
  • Section 53, Sub-section (6) of the Land Acquisition Act
  • The Land Acquisition Act, 1894 (Central Act 1 of 1894)
  • Section 55 or Section 59 of the Land Acquisition Act
  • Section 60-A of the Act
  • Central Act 68 of 1984
  • Section 54 of the Act
  • Rajasthan Land Acquisition Act, 1953
  • Section 54 or Section 56 of the Land Acquisition Act
  • Section 60-A of the Land Acquisition Act
  • the principal Land Acquisition Act 1 of 1894
  • State Amendment Act 29 of 1987
  • Central Amendment Act, Section 23(1-A)
Smart Summary

Factual and Procedural Background

A notification under Section 52 of the Rajasthan Urban Improvement Act, 1959 (“the Act”) was published on 10-10-1974 to acquire 39,875 acres for urban development. Possession was taken the same day. The Additional Collector’s award dated 18-4-1980 fixed market value at Rs 13.50 per sq. yd. with 10 % interest.

The landowners (appellants) appealed under Section 54 of the Act seeking higher compensation, solatium and increased interest, while the State challenged the interest rate. By award dated 9-2-1983, the District Judge enhanced compensation to Rs 49.50 per sq. yd. but reduced interest to 6 % from 10-10-1974.

Unsatisfied, the appellants filed Revision No. 498 of 1983 (heard with connected matters) before the Rajasthan High Court, which dismissed all revisions on 22-7-1987. The present appeal to the Supreme Court was brought by special leave.

Legal Issues Presented

  1. Whether Sections 52(2) and 53(6)(a) of the Rajasthan Urban Improvement Act, 1959 became void after the Land Acquisition (Amendment) Act 68 of 1984 because of inconsistency regarding solatium and interest.
  2. If not void, what quantum of solatium, interest, and additional amount (if any) are payable to the claimants in light of subsequent State Amendment Act 29 of 1987 introducing Section 60-A (transitory provisions).

Arguments of the Parties

Appellants' Arguments

  • Sections 52(2) (interest at 6 %) and 53(6)(a) (no solatium) of the Act are inconsistent with the Central Land Acquisition (Amendment) Act 68 of 1984; hence they are void.

The opinion does not contain a detailed account of the respondents’ arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Union of India v. Raghubir Singh, (1989) 2 SCC 754 Enhanced solatium under the Central Amendment Act is payable only when proceedings were pending on the relevant commencement date. The Court held that because the District Judge’s award was dated 9-2-1983 (before Central Amendment Act 68/1984), the claimants were not entitled to 30 % solatium; only 15 % from 1-8-1987 (date of State amendment) was allowed.
K.S. Paripoornan v. State of Kerala, (1994) 5 SCC 593; (1989) 3 SCR 316 No additional amount under Section 23(1-A) is payable if civil-court proceedings were not pending on the commencement date of the Central Amendment Act. Following this ruling, the Court denied the claimants the additional amount under Section 23(1-A) because their proceedings were not pending before the civil court on 1-8-1987.

Court's Reasoning and Analysis

The Court refused to entertain for the first time in Supreme Court the constitutional challenge to Sections 52(2) and 53(6)(a) because it had not been pursued in the High Court or by an independent proceeding.

It noted that the Rajasthan Legislature enacted Amendment Act 29 of 1987, inserting Section 60-A, which expressly protected actions taken under the pre-1984 regime while directing that future steps in pending matters follow the Central Land Acquisition Act, 1894.

Interpreting Section 60-A, the Court concluded:

  • Compensation, solatium and interest prior to 1-8-1987 remain governed by the original Act (no solatium; 6 % interest).
  • For the period after 1-8-1987, the Central Act applies to pending matters.

Applying Raghubir Singh, the enhanced solatium rate of 30 % was denied because the District Judge’s award pre-dated the Central Amendment Act. However, since the matter was still pending on 1-8-1987, 15 % solatium became payable from that date on the enhanced compensation.

Relying on Paripoornan, the Court rejected the claim for the additional amount under Section 23(1-A) because the civil-court proceedings had concluded before 1-8-1987.

Interest was recalculated: 9 % per annum on the enhanced compensation for one year from 1-8-1987, and 15 % thereafter until payment or deposit.

Holding and Implications

Appeal allowed in part. The claimants are awarded:

  • Solatium @ 15 % on the enhanced compensation from 1-8-1987 until payment.
  • Interest @ 9 % on the enhanced compensation for one year from 1-8-1987, and @ 15 % thereafter until payment/deposit.
  • No additional amount under Section 23(1-A).

The decision clarifies the transitional application of State Amendment Act 29 of 1987 to pending land-acquisition matters, but it does not announce a new precedent beyond interpreting Section 60-A’s reach. Parties were directed to bear their own costs.

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    Umed Industries And Land Development Co. And Others v. State Of Rajasthan And Others

    Order

    1. This appeal, by special leave, arises from the judgment of the learned Single Judge of the High Court of Rajasthan, dated 22-7-1987 made in Revision No. 265 of 1983 and batch.

    2. The notification under Section 52 of the Rajasthan Urban Improvement Act, 1959 for short ‘the Act’, was published in the State Gazette on 10-10-1974 acquiring an extent of 39,875 acres of land for urban development. Possession of the land was taken on 10-10-1974. Though the appellant had claimed larger amount, the Additional Collector in his Award dated 18-4-1980 determined the market value @ Rs 13.50 per sq. yd. Feeling aggrieved, the appellants carried the matter in appeal under Section 54 of the Act claiming additional amount of compensation and also solatium and interest. The Government also filed appeals against the order of the Collector awarding 10% interest. The District Judge by his common award and decree dated 9-2-1983 determined the compensation @ Rs 49.50 per sq. yd. and reduced the interest from 10% to 6% from 10-10-1974. Still further aggrieved, the appellants carried the matter in revision to the High Court. The appellants' revision is 498 of 1983, the High Court by a common judgment dismissed the revision petitions as stated earlier on 22-7-1984. Thus this appeal.

    3. The only contention raised by the learned counsel for the appellants is that the provisions of Sections 52(2) and 53(6)(a) are inconsistent with the provisions of the Land Acquisition (Amendment) Act 68 of 1984 amending the principal Land Acquisition Act 1 of 1894 and that therefore the provisions of Sections 52(2) and 53(6)(a) are void. Unfortunately, this contention, though was raised before the District Judge, was not pursued before the High Court nor any independent proceedings have been taken challenging the constitutionality of the provisions referred to hereinbefore. Therefore, we cannot permit the appellants to agitate this question for the first time in this appeal. However, the State Legislature, after the Central Act 68 of 1984 has come into force, has taken care to amend the provisions of the Act and the relevant provisions in the Rajasthan Land Acquisition Act, 1953 as applicable to the State by appropriate amendments. As regards the Act is concerned, the Legislature amended the same by State Amendment Act 29 of 1987 which came into force w.e.f 1-8-1987. Therein the Act has taken care of transitory provision in Section 60-A of the Act which reads thus:

    “60-A. Transitory provisions for pending matters relating to acquisition of land.— (1) Notwithstanding anything otherwise contained in sub-section (1) of Section 52, where in any matter relating to the acquisition of land pending on the date of commencement of the Rajasthan Urban Improvement (Amendment) Ordinance, 1987 (hereinafter in this section referred to as the date of commencement), an action, thing or order has been taken, done or made under and in accordance with the provisions of this Act as it stood before the date of commencement such action, thing or order shall not be reopened or reviewed or be liable to be challenged on the ground that such action, thing or order was at variance with that provided in the Land Acquisition Act, 1894 (Central Act 1 of 1894) (hereinafter in this section referred to as the Land Acquisition Act) subject, however, that any further proceeding, action or order in such matter conducted, taken or made on or after the date of commencement shall subject to the other provisions of this section, be made under and in accordance with the Land Acquisition Act.
    (2) The amount of compensation or interest or that payable for any other reason shall, in a matter pending on the date of commencement, be payable under and in accordance with the provisions of the Land Acquisition Act and the money paid prior to the date of commencement shall be deducted from or adjusted against the said amount.
    (3) & (4)***
    (5) In determining the amount of compensation to be awarded in a matter pending on the date of commencement, the market value of the land at the date on which the notice was published in the Official Gazette under clause (b) of sub-section (6) of Section 53, as it stood before the date of commencement, shall be taken into consideration.
    (6) An appeal filed under Section 54 or Section 56 or a dispute referred under Section 55 or Section 59 and pending on the date of commencement shall be decided having regard to the provisions of the Land Acquisition Act.”

    A reading thereof would make the legislative intention clear that any action taken, done or made under and in accordance with the provisions of the Act as it stood before the date of commencement of the Central Amendment Act 68 of 1984, such action, thing or order shall not be reopened or reviewed or be liable to be challenged on the ground that such action, thing or order was at variance with that provided in the Land Acquisition Act, 1894 (Central Act 1 of 1894) subject, however, that any further proceeding, action or order in such matter conducted, taken or made on or after the date of commencement shall subject to the other provisions of this section, namely, Section 60-A, be made under and in accordance with the LA Act. Sub-section (2) also makes the matter very clear, namely, the amount of compensation or interest or that payable for any other reason shall, in a matter pending on the date of commencement, be payable under and in accordance with the provisions of the LA Act (Central Act) and the money paid prior to the date of commencement shall be deducted from or adjusted against the said amount. It was applied to pending appeals. Thereby, it is amply clear that the amount of compensation or interest or that payable for any other reason (solatium under the Central Act) shall be in accordance with the provisions of the LA Act. But their entitlement will be only from the date of commencement of the Act but, not anterior thereto.

    4. Section 52(2) provides payment of simple interest at 6% per annum on the amount of compensation determined under Section 53. Section 53(6)(a) specifically omits to pay solatium for compulsory acquisition. Thereby, prior to the commencement of the Central Act 68 of 1984, namely, 24-9-1984, the claimants are not entitled to solatium.

    5. In Union of India v. Raghubir Singh (1989) 2 SCC 754 a Constitution Bench of this Court has held that in proceedings pending before the date of the introduction of the Amendment Act and the date of the commencement of the Amendment Act either before the Land Acquisition Officer or before the reference court enhanced solatium would be payable. In view of the fact that the award was made by the District Court on 9-2-1983 i.e prior to the commencement of the Amendment Act, the claimants are not entitled to solatium @ 30%. However, since the proceedings are pending, they are entitled to payment of solatium at 15% from the date of commencement of the Act, namely, 1-8-1987 till date of payment on the enhanced compensation awarded by the District Court. As regards interest is concerned, till the State Amendment Act has been operating i.e till 1-1-1987 the claimants are entitled to interest under the Central Amendment Act only on and from 1-9-1987 on the enhanced compensation at 9% per annum on the enhanced market value for one year from 1-8-1987. Therefore, after expiry of one year till date of payment or deposit, the claimants are entitled to interest at 15% on the enhanced compensation. With regard to additional amount under Section 23(1-A) this Court in K.S Paripoornan v. State of Kerala (1994) 5 SCC 593, (1989) 3 SCR 316 held that the claimants would not be entitled to the additional amount, if the proceedings were not pending before the civil court as on the date of the commencement of Central Amendment Act. Since the Amendment Act was made applicable only on 1-8-1987, the claimants also are not entitled to the additional amount under Section 23(1-A).

    6. The appeal is allowed only to the above extent. But in the circumstances, the parties are directed to bear their own costs.

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    Umed Industries And Land Development Co. And Others v. State Of Rajasthan And Others
    (Jan 17, 1995)