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AMICUS AI
Citation Codes
Neutral Citations
2010 INSC 181
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 23(1-A) of the Land Acquisition Act, 1894
  • Section 23(1-A) read with Section 30(1)(b) of the Act
  • Order 6 Rule 17 read with Section 151 of the Code of Civil Procedure
  • The Land Acquisition Act dated 27-9-1978
  • The Land Acquisition Act dated 22-3-1978
  • The Land Acquisition Act dated 19-8-1976
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Cites
Cited by
Citation Codes
Neutral Citations
2010 INSC 181
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 23(1-A) of the Land Acquisition Act, 1894
  • Section 23(1-A) read with Section 30(1)(b) of the Act
  • Order 6 Rule 17 read with Section 151 of the Code of Civil Procedure
  • The Land Acquisition Act dated 27-9-1978
  • The Land Acquisition Act dated 22-3-1978
  • The Land Acquisition Act dated 19-8-1976
Smart Summary

Factual and Procedural Background

The appeal arises from a judgment of the High Court fixing land acquisition compensation for lands in Village Dallupura at Rs 39,300 per bigha. The lands were acquired under a Notification issued on 22-3-1978 pursuant to Section 4 of the Land Acquisition Act, 1894, which culminated in a Section 6 Notification dated 27-9-1978. The High Court relied on an earlier, uncited decision where compensation had been set at Rs 34,150 per bigha (for a 19-8-1976 Notification) and, adding 10% per annum for the 1½-year gap, arrived at Rs 39,300 per bigha. It further ruled that the claimants were not entitled to additional compensation under Section 23(1-A). The claimants appealed to the Supreme Court.

Legal Issues Presented

  1. Whether the claimants are entitled to additional compensation under Section 23(1-A) read with Section 30(1) of the Land Acquisition Act, 1894.
  2. What is the appropriate market rate of compensation per bigha for the acquired land in Village Dallupura, having regard to parity with awards for similarly situated villages and the relevant notification dates.

Arguments of the Parties

Appellants/Claimants

  • The award dated 25-2-1983 was pending on 24-9-1984; hence, under the Constitution Bench ruling in K.S. Paripoornan v. State of Kerala, Section 23(1-A) is attracted.
  • The High Court erred in fixing compensation at Rs 39,300 per bigha. By an amended pleading they had claimed Rs 350 per sq. yd. (≈ Rs 3.45 lakh per bigha).
  • Relying on DDA v. Bali Ram Sharma (2004 6 SCC 533) and Karan Singh v. Union of India (1997 8 SCC 186), lands in Dallupura, Kondli and Gharoli are identically circumstanced, and compensation of at least Rs 76,550 per bigha (as ultimately fixed by this Court for a 17-11-1980 Notification) should be awarded.
  • Further parity was urged on the strength of Union of India v. Harpat Singh (2009 14 SCC 375) which approved the Bali Ram Sharma figure.

Respondent – Union of India

  • Supported the High Court’s figure of Rs 39,300 per bigha.
  • Contended that the Rs 76,550 rate in Bali Ram Sharma pertained to a later Notification dated 17-11-1980; therefore a downward adjustment is necessary for the earlier 22-3-1978 Notification in the present case.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
K.S. Paripoornan v. State of Kerala (1994 5 SCC 593) Section 23(1-A) applies where reference was pending on 24-9-1984 or where award was not made before 30-4-1982 (para 110). Used to overturn the High Court and grant appellants additional compensation under Section 23(1-A).
DDA v. Bali Ram Sharma (2004 6 SCC 533) Fixed compensation at Rs 76,550/bigha for lands in Kondli, Gharoli and Dallupura (Notification 17-11-1980). Provided the benchmark rate; Court applied parity but made a temporal deduction (10%).
Karan Singh v. Union of India (1997 8 SCC 186) Recognised identical circumstances of lands in Kondli, Gharoli, Dallupura. Reinforced the parity rationale adopted from Bali Ram Sharma.
Union of India v. Harpat Singh (2009 14 SCC 375) Affirmed Bali Ram Sharma and Karan Singh on compensation for the three villages. Cited to support parity argument; Court acknowledged approval of Rs 76,550 figure.

Court's Reasoning and Analysis

1. Section 23(1-A) entitlement: Relying squarely on the Constitution Bench ruling in Paripoornan, the Court noted that the Collector’s award had not been made before 30-4-1982 and the reference was pending on 24-9-1984. Under para 110(3) & (4) of that judgment, the appellants were entitled to the statutory additional compensation. The High Court’s contrary direction, issued without reasons, was set aside.

2. Market rate of land: (a) The Court accepted that lands in Kondli, Gharoli and Dallupura are “identically circumstanced.”
(b) The Bali Ram Sharma precedent fixed Rs 76,550 per bigha for a Notification dated 17-11-1980. The present acquisition preceded that date by roughly two years (22-3-1978).
(c) A time-gap deduction was therefore warranted. While a 20% reduction would ordinarily follow, the Court observed that evidence showed the appellants’ lands had already been converted into plots, indicating higher development than usual.
(d) Balancing these considerations, the Court chose a 10% reduction, leading to Rs 69,550 per bigha.

Holding and Implications

Appeal ALLOWED IN PART. Compensation enhanced to Rs 69,550 per bigha, together with additional compensation under Section 23(1-A) read with Section 30(1)(b) of the Land Acquisition Act, 1894.

Implications: The appellants receive a substantially higher award and the statutory additional compensation denied by the High Court. While the judgment maintains parity with earlier decisions, it introduces a calibrated reduction for earlier notification dates, but does not lay down a new rule of general application.

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    Prem Chand And Others v. Union Of India .

    V.S Sirpurkar, J.— Leave granted. This is an appeal against the judgment of the High Court wherein the High Court has awarded the land acquisition compensation @ Rs 39,300 per bigha. The High Court relied on its earlier judgment without citing the same wherein it had fixed the land acquisition compensation @ Rs 34,150 per bigha in respect of the Notification under Section 4 of the Land Acquisition Act dated 19-8-1976. On that basis, the High Court, considering the difference of 1½ years, enhanced the amount at the rate of 10% per year and thus granted compensation @ Rs 39,300 per bigha.

    2. The lands concerned are from Village Dallupura which have been acquired by the Notification under Section 4 of the Land Acquisition Act dated 22-3-1978 which ripened into the Notification under Section 6 dated 27-9-1978. The High Court, however, specifically ordered that the appellants would not be entitled to the benefit under Section 23(1-A) of the Land Acquisition Act, 1894 (hereafter “the Act”).

    3. Shri P.H Parekh, learned Senior Counsel pointed out firstly that the claimants in this case could not have been deprived of the benefit under Section 23(1-A) of the Act since the award was passed on 25-2-1983 and it was pending on 24-9-1984. He invited our attention to the Constitution Bench decision of this Court in K.S Paripoornan v. State of Kerala (1994) 5 SCC 593 wherein this Court had culled out the ratio in para 110 as follows:

    “110. For all these reasons the questions raised in these petitions are answered as below:
    (1) Section 23(1-A) providing for additional compensation is attracted in every case where reference was pending under Section 18 before the Court [Section 23(1-A)].
    (2) No additional compensation is payable in appeals pending on or after 24-9-1984 either in the High Court or this Court.
    (3) Additional compensation under Section 23(1-A) is also payable in all those cases where the proceedings were pending and the award had not been made by the Collector on or before 30-4-1982 [Section 30(1)(a)].
    (4) Similarly every landowner is entitled to additional compensation where the land acquisition proceedings started after 30-4-1982 whether the award by the Collector was made before 24-9-1984 or not [Section 30(1)(b)].”

    Accordingly as per sub-para (3) of para 110, it is clear that the claimants would be entitled to the compensation under Section 23(1-A) read with Section 30(1)(b) since the award had not been made on or before 30-4-1982. The claimants would, therefore, be entitled to that benefit though the benefit seems to have been rejected by the High Court without giving any reasons. That direction of the High Court is, therefore, set aside and it is held that the claimants would be entitled to the benefit under Section 23(1-A) of the Act.

    4. However, Shri P.H Parekh argued that the High Court had erred in fixing the compensation @ Rs 39,300 per bigha. He further pointed out that the claimants herein had moved an application under Order 6 Rule 17 read with Section 151 of the Code of Civil Procedure, enhancing their claim before the High Court to Rs 350 per square yard. He pointed out that in DDA v. Bali Ram Sharma (2004) 6 SCC 533 in respect of Villages Kondli, Gharoli and Dallupura, this Court had awarded compensation @ Rs 76,550 per bigha. In that case, this Court, relying on Karan Singh v. Union of India (1997) 8 SCC 186, had scaled down the compensation to Rs 76,550 per bigha from the one awarded by the High Court @ Rs 3.45 lakh per bigha. Shri Parekh, therefore, suggests that even the claimants in this case whose lands have been acquired in Dallupura would be entitled at least to the compensation @ Rs 76,550 per bigha. The lands at Dallupura, Kondli and Gharoli have been held to be identically circumstanced.

    5. In fact, in Bali Ram Sharma case (2004) 6 SCC 533 the Court was dealing with the lands at Gharoli, Kondli and Dallupura where the High Court had awarded the compensation @ Rs 3.45 lakhs. This Court did not agree with that and scaled it down to Rs 76,550. It is, therefore, the learned Senior Counsel claims the compensation at least at that rate. It is to be noted that even in this case, the claimants had claimed the compensation @ Rs 350 per bigha by way of an amendment.

    6. Shri Parekh pointed out that the Notification in Bali Ram Sharma case (2004) 6 SCC 533 was dated 17-11-1980 which is comparable to the Notification in the present case which is dated 22-3-1978. He further pointed out that there is evidence that the lands at Dallupura, compensation of which is in question in the present appeal, were actually converted into plots. He, therefore, claims compensation @ Rs 76,550.

    7. On the other hand, Shri P.P Malhotra, learned counsel appearing for the Union of India disputes this and claims that the High Court was right in fixing the compensation @ Rs 39,300 per bigha.

    8. On the question of parity, there can be no dispute that the lands at Kondli, Dallupura and Gharoli are identically circumstanced, as held by this Court in Bali Ram Sharma case (2004) 6 SCC 533. It would, therefore, be not proper to grant the compensation at much lesser rate of Rs 39,300 per bigha.

    9. The learned counsel also pointed out a decision of this Court to which one of us (Cyriac Joseph, J.) was a party, reported as Union of India v. Harpat Singh (2009) 14 SCC 375, (2009) 8 Scale 201. This Court followed the judgments in Karan Singh case (1997) 8 SCC 186 and Bali Ram Sharma case (2004) 6 SCC 533 and approved them. These judgments were in respect of Gharoli, Kondli and Dallupura, where the compensation was paid @ Rs 76,550. He, therefore, urged to maintain the parity in this case also.

    10. However, it is pointed out by Shri Malhotra that the rate of Rs 76,550 is in respect of the Notification dated 17-11-1980 and the Notification in the present case was published only on 22-3-1978 and, therefore, some allowance would have to be given for that. Shri Malhotra is undoubtedly right.

    11. We, therefore, scale down the compensation by deducting 10% of the rate of Rs 76,550. Ordinarily, we would have scaled down by 20% but considering the fact that the lands in this case have been found to be already developed into plots, we would choose to scale down the compensation by 10% to the round figure of Rs 69,550. The compensation shall be paid @ Rs 69,550 plus the benefit under Section 23(1-A) read with Section 30(1)(b) of the Act. With these directions, the appeal is allowed in part.

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    Comments

    Prem Chand And Others v. Union Of India .
    (Mar 30, 2010)