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Union Of India v. Smt. Sulochna And Anothers
Factual and Procedural Background
In 1977, approximately 2000 bighas of agricultural land in the Hanumangarh area were acquired by the Union of India for defence purposes. Notifications under Sections 4 and 6 of the Rajasthan Land Acquisition Act were issued, and possession was taken on 27.5.1977. The Land Acquisition Officer passed awards on March 27/29, 1979. Most claimants made references within the limitation period under Section 18 of the Act in 1979, except for Sulochna and Jagroop Singh, whose references were delayed. Before the Civil Court, claimants produced oral and documentary evidence, while the Union of India and the State of Rajasthan did not lead any evidence. The Civil Judge, Sriganganagar, enhanced compensation from Rs. 8000/- to Rs. 9000/- per bigha, awarded interest at 15% per annum, solatium at 30% under Section 23(2), and interest at 12% per annum under Section 23(1-A) of the Act.
The appellants filed 14 regular first appeals challenging the Civil Judge's order. These appeals were dismissed by the learned Single Judge on May 20, 1994. The present special appeals challenge the dismissal of those regular first appeals.
Legal Issues Presented
- Whether the provisions of Section 23(1-A) of the Land Acquisition Act were applicable in the present cases.
- Whether the enhancement of solatium at 30% per annum under Section 23(2) of the Act was erroneous.
- Whether awarding solatium at 30% per annum and interest at 15% per annum was justified.
- Whether the enhancement of compensation from Rs. 8000/- to Rs. 9000/- per bigha was proper given the evidence.
- Whether the Civil Judge erred in entertaining the cases of Sulochna and Jagroop Singh despite delay beyond the limitation period.
- Whether claimants who accepted compensation were entitled to references under Section 18 of the Act before the Civil Court.
Arguments of the Parties
Appellants' Arguments
- The learned Civil Judge and Single Judge erred in applying Section 23(1-A) of the Act.
- The enhancement of solatium at 30% per annum under Section 23(2) was incorrect.
- The award of solatium at 30% and interest at 15% per annum was erroneous.
- The compensation enhancement from Rs. 8000/- to Rs. 9000/- per bigha was unsupported by evidence.
- The Civil Judge erred in entertaining delayed references of Sulochna and Jagroop Singh.
- Claimants who accepted compensation were not entitled to references under Section 18 before the Civil Court.
Respondents' Arguments
- Supported the judgments and orders of the Civil Judge and the learned Single Judge.
- Submitted that the provisions of the Land Acquisition Act as amended by Central Act No. 68 of 1984 applied, entitling claimants to solatium and interest.
- Argued that the judgment in Union of India v. Zora Singh and other Supreme Court precedents bind the Court to uphold the awards.
- Contended that the majority judgment in K.S Pariapooranan v. State of Kerala does not have retrospective effect and thus does not affect these cases.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Collector Land Acquisition, Anantnag v. Mst. Kati Ji | Liberal approach to limitation and "sufficient cause" for condonation of delay in references under the Land Acquisition Act. | Court rejected limitation objection for delayed references of Sulochna and Jagroop Singh, emphasizing substantial justice over technicalities. |
| Union of India v. Filip Tiago De Gama | Applicability of amended provisions (Central Act No. 68 of 1984) awarding solatium at 30% and interest at 15% for awards given after amendment. | Held that awards given by Civil Court after amendment date entitled claimants to solatium and interest as per amended Act, supporting the enhancement. |
| K.S Pariapooranan v. State of Kerala | Majority judgment on applicability and retrospective effect of amended Land Acquisition Act provisions. | Court noted that this judgment was decided later and that its retrospective effect was not established; thus, it did not affect the present cases. |
| Union of India v. Zora Singh | Binding precedent on awarding solatium and interest under amended Land Acquisition Act provisions. | Relied upon by the Court to uphold the solatium and interest awarded by the Civil and Single Judges. |
| Bhag Singh v. Union Territory of Chandigarh | Supporting precedent for awarding compensation enhancements and interest under Land Acquisition Act. | Referenced to affirm the binding nature of prior Supreme Court decisions supporting the awards. |
| Union of India v. Godfrey Philips India Limited | Principle that a Bench of equal strength should not overrule or disagree with another Bench without referring the matter to a larger Bench. | Applied to support the argument that the unanimous judgments binding on the Court should be followed rather than majority judgments overruling them. |
Court's Reasoning and Analysis
The Court first rejected the contention that claimants who accepted compensation were not entitled to references under Section 18, emphasizing that the Act does not prohibit such references and that claimants are entitled to seek enhanced compensation. Regarding the limitation objection for delayed references by Sulochna and Jagroop Singh, the Court adopted a liberal approach as endorsed by the Supreme Court in Collector Land Acquisition, Anantnag v. Mst. Kati Ji, prioritizing substantial justice over technical objections.
The Court upheld the enhancement of compensation from Rs. 8000/- to Rs. 9000/- per bigha, noting that claimants produced both oral and documentary evidence supporting the increase, and found no error in the Civil Judge's or Single Judge's decisions.
On the applicability of the amended provisions of the Land Acquisition Act (Central Act No. 68 of 1984), the Court held that the awards made by the Civil Judge after the amendment date justified awarding solatium at 30% and interest at 15% per annum, consistent with the Supreme Court's rulings in Union of India v. Filip Tiago De Gama and Union of India v. Zora Singh. The Court considered the later majority judgment in K.S Pariapooranan but found it non-retrospective and thus not applicable to the present cases.
However, the Court found merit in the appellants' contention regarding the award of interest at 12% per annum under Section 23(1-A) of the Act, which was not supported by the respondent's counsel and was deemed an error by both the Civil Judge and Single Judge.
Overall, the Court emphasized adherence to binding Supreme Court precedents, the importance of substantial justice, and the equitable treatment of claimants who had suffered loss due to land acquisition.
Holding and Implications
The appeals are partly allowed. Specifically, the Court set aside the award of interest at 12% per annum under Section 23(1-A) of the Land Acquisition Act as granted by the Civil Judge and confirmed by the Single Judge. All other aspects of the Civil Judge’s decree—including enhancement of compensation to Rs. 9000/- per bigha, awarding solatium at 30%, and interest at 15% per annum—are upheld and confirmed.
The stay on payment of compensation is vacated, and the compensation with interest and solatium, excluding the 12% interest under Section 23(1-A), shall be paid to the claimants forthwith. The parties shall bear their own costs, and no new precedent is set beyond the confirmation and clarification of existing legal principles.
B.J Shethna, J.:— These appeals are disposed of by this common judgment as the same are arising out of the common judgment and order passed by the learned Single Judge on 20.5.1994 delivered in regular first appeals filed by the appellants.
2. In the year 1977, agricultural land of about 2000 bighas of Hanumangarh area was acquired by the Union of India for the defence purpose. Notifications under Section 4 and 6 of the Rajasthan Land Acquisition Act (for short ‘the Act’) were issued and the possession of the land was taken from the owners of the land on 27.5.1997 The Land Acquisition Officer, Hanumangarh passed the awards on March 27/29, 1979. In almost all the cases references were made within the period of limitation under Section 18 of the Act at the instance of the claimants in the year 1979. However, there was delay in case of Sulochna and Jagroop Singh. Before the Civil Court the claimants produced oral as well as documentary evidence in their favour, but neither the Union of India nor the State of Rajasthan has lead any evidence. Learned Civil Judge, Sriganganagar after hearing the learned counsel for the parties enhanced the amount of compensation from Rs. 8000/- to Rs. 9000/- per bigha and also awarded interest @ 15% p.a with solatium at the rate of 30% under Section 23(2) of the Act. Learned Civil Judge also awarded the amount at the rate of 12% p.a under Section 23(1-A) of the Act.
3. Aggrieved by that the appellants filed in all 14 regular first appeals i.e F.A No. 26/91 and allied appeals before the High Court. As stated earlier, the above appeals came to be dismissed by the learned Single Judge by his common judgment and order dated May 20, 1994. The same has been challenged in these appeals.
4. Learned counsel Shri Chaudhary appearing for the appellants in all these appeals raised the following contentions before us:—
(i) That the learned Civil Judge as well as the learned Single Judge of this Court committed an error in holding that provisions of Section 23(1-A) of the Act is applicable in the present case.
(ii) That the learned Civil Judge as well as learned Single Judge of this Court committed an error in enhancing the amount @ 30% p.a u/Sec. 23(2) of the Act.
(iii) The learned Civil Judge as well as the learned Single Judge of this Court committed an error in awarding solatium @ 30% p.a and the interest at the rate of 15% p.a
(iv) The Civil Judge and the learned Single Judge committed an error in enhancing the compensation from Rs. 8000/- to Rs. 9000/- per bigha in absence of any evidence led by the claimants.
(v) The learned Civil Judge committed an error in entertaining the cases of Sulochana and Jagroop Singh after the expiry of period of limitation, and;
(vi) Having accepted the compensation, the claimants were not entitled to get the reference made under Section 18 of the Act before the Civil Court.
5. However, learned counsel Shri K.N Joshi, R.K Singhal appearing for the respondents claimants have supported the judgments and orders passed by the learned Civil Judge and learned Single Judge of this Court.
6. We will take last submission first, namely, that having accepted the compensation the claimants were not entitled to get the references made under Section 18 of the Act before the Civil Court. It must be stated that this contention was neither raised before the learned Civil Judge nor before the learned Single Judge in regular first appeal, therefore, for the first time in special appeals the appellants cannot be permitted to raise this contention. Even on merits this contention has no force because claimants are the persons who are vitally effected in the acquisition proceedings as they have lost their valuable land in the acquisition proceedings which may be for the public purpose. In these hard days the persons would be rather compelled to accept the compensation for their land and there is nothing wrong on the part of the claimants to get the references made before the Civil Court after the award is passed and compensation is accepted. It is a common phenomenon that normally compensation is awarded on a lower side. Merely because the claimants have accepted the compensation that will not preclude them from getting the references made under Section 18 of the Act before the competent authority. Section 18 of the Act nowhere put embargo or prohibit claimants from getting the references made after accepting the compensation amount. Thus, we do not find any force in this contention raised by learned counsel Shri Choudhary for the appellant and it is rejected.
7. Now we will deal with the last but one submission raised by the standing counsel Shri Chaudhary for the appellant, namely that the learned Civil Judge committed an error in entertaining the cases of Sulochna and Jagroop Singh after the expiry of period of limitation. For entertaining their references learned Civil Judge has given good reasons and the learned Civil Judge has rightly rejected this very contention which was raised before him. Infact, we are of the opinion that it does lie good in the mouth of the appellants like Union of India to raise the contention regarding limitation. In case of Collector Land Acquisition, Anantnag v. Mst. Kati Ji (1) the Apex Court has clearly held that the Court should adopt liberal approach and for adopting such approach reasons have been stated. Co-incidently it was a case filed by the Collector, Land Acquisition Anantnag under the Land Acquisition Act itself, wherein, appeal filed by the State of Jammu and Kashmir arising out of the decision of enhancing compensation in respect of acquisition proceedings raising important question as regards principle of valuation was dismissed as time barred by rejecting the application for condonation of delay. In our opinion when substantial justice and technical considerations were pitted against each other then substantial justice must be preferred. The doctrine of equality before law demands that all litigants are accorded the same treatment and the law is administered in a even handed manner. In two cases there was delay in making reference, one was of an old lady and another was of an illiterate farmer. We are of the opinion that in such cases the technical objection like limitation ought not to have been even raised by the Union of India particularly when other reference were in time. As held by the Apex Court in case of Collector Land Acquisition, Anantnag (Supra) that, “the Courts have to informed with the spirit and philosophy of the provision in the course of the interpretation of the expression “sufficient cause”. So also the same approach has to be evidenced in its application to matters at hand with the end in view to do even handed justice on merits in preference to the approach which scuttles a decision on merits. Thus, this contention regarding limitation that two references were time barred and ought not to have been entertained is rejected.
8. Another contention raised by learned counsel Shri Chaudhary that the learned Civil Judge and the learned Single Judge both committed an error in enhancing the compensation from Rs. 8000/- to Rs. 9000/- per bigha must be rejected. Though, it is argued that it was not open to the learned Civil Judge to enhance the compensation from Rs. 8000/- to Rs. 9000/- per bigha in absence of any evidence, we find that the claimants have not only led oral but also documentary evidence in favour of their contention for enhancing the compensation awarded by the Collector of Rs. 8000/- per bigha. Infact, their claim was based on the decision rendered by this Court. This very contention was raised before the learned Single Judge and in our opinion the learned Single Judge has rightly rejected the same. This being a special appeal, we cannot interfere with the order passed by the learned Single Judge of confirming the enhancement in the amount of compensation made by the learned Civil Judge. Hence, this contention raised by learned counsel Shri Chaudhary is also rejected.
9. It was next contended by learned counsel Shri Chaudhary for the appellants that the provisions of the Act as amended by the Central Act No. 68 of 1984 were no applicable in these cases as the awards were given by the Land Acquisition Officer, Hanumangarh before, April 13, 1982 and as such solatium @ 30% and interest @ 15% could not be granted. This very contention was raised by the learned counsel for the appellants before the learned Single Judge and in our opinion it was rightly rejected by the learned Single Judge. It was not in dispute before the learned Single Judge that on the basis on which the awards were given by the learned Civil Judge, Sriganganagar, the provisions of the Land Acquisition Act, 1984 as amended by the Central Act No. 68 of 1984 were applicable. The awards were given by the learned Civil Judge during the period 13.11.1990 to 20.7.1991 According to Section 23(2) and 28 of the Act, the solatium and interest have to be awarded at the rate of 30% and interest at the rate of 15% p.a Section 30(2) of the Land Acquisition Act (Amendment) Act, 1984 also provides so. In case of Union of India v. Filip Tiago De Gama (2) it has been clearly held by the Apex Court that the awards given by the Civil Court on or before coming into force of the Land Acquisition (Amendment) Act, 1984 w.e.f 24.9.1984 the provisions of Section 23(2) regarding higher rate of solatium would be applicable. In that case, the award was given by the District Judge on May 28, 1985, after the Land Acquisition (Amendment) Act, 1984 came into force w.e.f 24.9.1984 Learned Single Judge in its judgment at page 5 has quoted para 18 of the aforesaid Supreme Court Judgment in case of Filip Tiago De Gama and held that the learned Civil Judge did not commit any error in awarding solatium at the rate of 30% under Section 23(2) and interest at the rate of 15% p.a under Section 28 of the Land Acquisition Act. In our opinion, the learned Single Judge has not committed any error. Infact he was bound by the Apex Court judgment. Even, we are bound by the Apex Court Judgment and we also could not have taken any different view of the matter. However, learned counsel Shri Chaudhary relying upon the Supreme Court Judgment in case of K.S Pariapooranan v. State of Kerala (3) submitted that the view expressed by the learned Single Judge in dismissing the appeals was wrong as the learned Single Judge had no benefit of observations made by the Supreme Court in Pariapoornan's case which was decided lateron on September 12, 1994. But, our attention was drawn by the learned counsel Shri Joshi for the respondents claimants to the Judgment of Apex Court in case Union of India v. Zora Singh (4). It was submitted by learned counsel Shri Joshi that three Judges of the Constitutional Bench by majority cannot overrule the unanimous verdict given by the Bench of three Judges of the Supreme Court. It was further submitted by learned counsel Shri Joshi that in Jora Singh's case (Supra) the Bench of three Judges of Apex Court relied upon the previous judgment of the Supreme Court in Bhag Singh v. Union Territory of Chandigarh (5), which was delivered by a Bench of three Judges. He also submitted that the reference was made in Pariapoornan's case by majority judgment and the question was answered and the matters were ordered to be placed before the appropriate Benches for consideration and disposal of the appeals in the light of the order and on the other contentions, if any, raised in the appeals. But, what view was taken by the Bench is not made known to the Court. He submitted that the learned Single Judge relying upon the earlier Judgment of Supreme Court in Zora Singh's case and Filip Tiago De Gama dismissed the appeals and merely because special appeals lie in Rajasthan, therefore, these appeals were admitted and kept lying for all these years. He submitted that if it was filed before the Supreme Court then in view of the earlier judgment of the Supreme Court the matter would have come to an end. He further submitted that the present respondents-claimants cannot be denied benefit which has been given to them by the learned Civil Judge and the learned Single Judge of this Court pursuance to the earlier pronouncement of the Supreme Court.
10. In case of Union of India v. Godfrey Philips India Limited (6) the Apex Court observed in para 12 of the judgment that, “We find it difficult to understand how a Bench of two Judges in Jeet Ram's case could possibly overturn or disagree with what was said by another Bench of two Judges in Motilal Sugar Mills case. If the Bench of two Judges in Jeet Ram's case found themselves unable to agree with law laid down in Motilal Sugar Mills case, they could have referred Jeet Ram's case to a larger Bench, but we do not think it was right on their part to express their disagreement with the enunciation of the law by a co-ordinate Bench of the same Court in Motilal Sugar Mills.” On the basis of this, it was submitted before us that it was not open for the three Judges of the Constitutional Bench in Pariapoornan's case to overrule Zora Singh's case which was also of three Judges and based upon the earlier decision of the Supreme Court which was also of three Judges Bench, particularly when two Judges expressed their contrary view.
11. Learned counsel Shri Joshi, therefore, submitted that this Court is bound by the unanimous judgments of the Supreme Court rather than the majority Judgment. This type of situation is arising for the first time before the Court, therefore, we requested both the learned counsel Shri Joshi for the claimants as well as Shri Chaudhary for the appellants to show any Judgment of the Supreme Court on this point that what course should be adopted by the Court. But, both the learned counsel were unable to cite any judgment of the Supreme Court. Mr. Joshi then submitted that even assuming for the sake of arguments that this Court is bound by the majority Judgment of the Constitutional Bench then also in Pariapoornan's case to Supreme Court has not given a retrospective effect to the Judgment, therefore, he submitted that the law laid down by the Supreme Court in Pariapoornan's case would be applicable only in future and not in cases which are already decided by the Civil Court and confirmed by the learned Single Judge of the High Court on the basis of earlier pronouncement of the Supreme Court in its several Judgments.
12. We have to born in mind that this Court is hearing special appeals and not the regular first appeals. Having regard to the peculiar facts and circumstances of the case it cannot be said that the Judgment rendered by the learned Single Judge of this Court is manifestly wrong or the view taken by him is so perverse which calls for the interference by us in these special appeals. We must also state that the awards were passed way back on 27/29.3.79. The poor claimants were compelled to accept the compensation as awarded by the Collector on 29.5.1979 Though the references were made in 1979 itself unfortunately, the cases came to be decided by the Civil Judge only on 20.7.1991 i.e almost after 12 years. This is an hierarchy of system of which certainly claimants cannot be made to suffer. Though the learned Civil Judge accepted the reference and enhanced the compensation amount from Rs. 8000/- to Rs. 9000/- per bigha and also awarded interest at the rate of 15% p.a and solatium at the rate of 30% under Section 23(2) and 12% interest under Section 23(1-A) of the Act. So far, the claimants have not received the said amount because of the stay operating against them.
13. However, the submission made by the learned counsel Shri Chaudhary that the Civil Court ought not have awarded interest at the rate of 12 % p.a under Section 23(1-A) of the Act has to be accepted. Infact, learned counsel Shri Joshi and Shri Singhal, who are appearing for the respondent claimants were unable to support the finding arrived at by the Civil Judge as well as the learned Single Judge on this point. On facts, we are fully convinced that the learned Civil Judge and the learned Single Judge have committed an error in awarding interest at the rate of 12 % p.a under Section 23(1-A) of the Act to the respondent claimants.
14. In view of the above discussion, all these appeals are partly allowed only to the extent that the order passed by the learned civil Judge in all references awarding interest at the rate of 12% p.a under Section 23(1-A) of the Land Acquisition Act and confirmed in regular first appeal by the learned Single Judge is hereby set aside. Rest of the decree passed by the Civil Judge of enhancing compensation amount from Rs. 8000/- to Rs. 9000/- per bigha and awarding interest at the rate of 15% p.a and solatium at the rate of 30% and confirmed by the learned Single Judge in regular first appeals is hereby confirmed. In view of the peculiar facts and circumstances of the case, there shall be no order as to costs in all these appeals. The parties shall bear their own costs.
15. Stay, if any, granted in all these appeals stands vacated. The compensation amount with interest and solatium, if lying deposited in the court or in the Bank shall now be paid to the respondent claimants forthwith as per the order passed by the learned Single Judge except the amount of 12% interest awarded by the learned Civil Judge under Section 23(1-A) of the Act.
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