MEHTAB SINGH AND ORS. ETC. ETC.

v.

STATE OF HARYANA

AUGUST 30. 1994

(MAOAN MOHAN PUNCHHI AND K. JAYACHANDRA

REDDY, JJ.]

Land Acquisition Act, 1894-Section ~A large chunk of land acquired

A

B

for public purpose-Award made speedily~ule of adoption of 12% yearly C

increase in price due to inflationary trends deduced by the Punjab & Haryana

High Court in another case-Applicability of-Universal application of Rule

disapproved.

Land Acquisition Act, 189~Section ~A large chunk of land ac­

quired for public purpose-Acquired land classified in two cutegories-No D

marked disparity between rates-Appeaf-High Court resurrected classifica-

tion on a large dispari(JWhether orders of High Court sustainable.

A large chunk of land measuring 267.91 acres abutting the Delhi

Rohtak Road was acquired for the public purpose of development 'IJld

utilisation as industrial area. A notification under Section 4 of the Land E

Acquisition Act was issued on 0~.01.1977. On 18.02.1977 the Land Acquisi-

tion Collector gave award fixing

two rates of compensation. However, the

price difference amongst the

two

classification was barely Rs. 560 per acre.

On reference under Section 18 to the District Judge, Rohtak, landowners

obtained compensation

at the flat rate of Rs. 7 per square yard doing away F

with the

classification.

On appeal, the learned Single Judge of the Punjab and Haryana

High Court granted Rs. 10 per square yard but reviving the classification

gave a higher compensation of Rs. 15 per square yard for the land abutting G

on both sid.es of the Delhi Rohtak Road l'pto a depth of Rs. 200 ft. Some

of the dissatisfied land owners took their cases in Letters Patent Appeal

before a Division Bench of

that High Court but were unsuccessful. They

preferred the present appeals. Their

claim was to award of 12% price rise

every year due to the inflationary trends, on the basis of a decesion

by

the·

same High Court in another case. H

• 793

794 SUPREME COURT REPORTS (1994] SUPP. 2 S.C.R.

A Partly allowing the appeall, this court

B

HELD : 1.1. The principle of 12% annual increase deduced by High

Court of Punjab & Haryana in Maya Devi's case has no bearing to the

instant case because it was within a mat~r of days from the date of

notification

that the award was made. No occasion arose to take judicial

notice of the inflation

and high rise of prices. From the date of award,

interest becomes due to the claimant

land owner, for henceforth the land

ceases to be his and while so the question of price rise does not arise when

he is compensated for the deprival by payment of interest. The amendment

Act of 1984

is explicit in terms.

'11te limited retrospectivity provided in the

C amending provisions do not pe1rmit adoption of 12% increase in price in

· each and every acquisition. If it was so intended the legislature would have

expressly provided so. This

court would decry that rule and express its

disapproval for its universal application

or for all acquisitions.

(797-C-F]

Maya Devi and Ors. v. State of Haryana and Ors., Regular First

D Appeal No. 150 of 1982. decided on 18.05.90 (P & H) and Inder Singh v.

E

F

State of Punjab, (1988) 2 Vol. 94

PLR 190, distinguished.

1.2. "lten classification of two sets of land right from the beginning

was marginal

and not appreciable, there was no occasion for the High Court to have restored the classification on a large disparity and thus a

uniform

rate of Rs. 15 per

square yard would now inevitably have to be

given as the correct compensation

and not Rs.

18.60 on the basis of Maya

Devi's case. Since there was no basis for classification, there was no

premise for different rates of compensation. [798-D-F]

Sher Singh and Ors. v. State of Haryana, Regular First Appeal No. 488

of 1975, decided on 16.11.1979 (P & H) (unreported), referred to.

'

CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 5743-48

of 1994 etc. etc.

G From the Judgment and

Order dated 30.3.83 of the Punjab &

Haryana High Court in R.F.A. No. 729, 700, 711, 715, 725 & 913 of 1982.

Mahabir Singh and S. Srinivasan for the Appellants in C.A. Nos.

5743-48

& 5753/94.

H

Uma Dutta for the Appellant in C.A. Nos. 5749, 5750, 5751, 5752,

•

MEHTAB SINGH v. STATE [PUNCHHI, J.]

5754 & 5755 of 1994.

K.C. Bajaj and Ms. !ndu Malhotra for the Respondent.

The Judgment of the Court

was delivered, by PUNCHHI, J. Special leave granted in all these matters.

795

A

B

These appeals artificially are divided in two groups but their aim is

common, as is their foundation. A large chunk of land measuring 267.91

acres abutting the Delhi-Rohtak Road near the town of Bahadurgarh,

District Rohtak

was acquired for the public purpose of development and C

utilisation as industrial area. A notification under section 4 of the Land

Acquisition Act for the purpose

was issued on 6.1.1977. The acquisition

. proceeded speedily because within a matter of days, i.e., on

18.2.1977, the

Land Acquisition Collector

gave award fixing two rates of compensation.

The land abutting Delhi-Rohtak Road upto a deeth of

36 Karams (198 ft)

on either side of the road

was to fetch compensation at the rate of Rs. D

20,560 and the remaining land on either side of the road at the rate of Rs.

20,000 per acre. Approximately the compen~tion worked out to about Rs.

4 per square yard. Noticeably the price difference amongst the

two

clas­

sifications was barely Rs. 560 per acre. The dissatisfied land owners on

reference under section

18 of the Land Acquisition Act to the District E

Judge, Rohtak were successful in obtaining on 27.2.1982 compensation at

the flat rate of Rs. 7 per square yard, i.e. at the rate of Rs.

33,880 per acre

doing

away with the classification. The acquisition was thus complete at

the District Judge's level under the

law as it stood prior to the Land

Acquisition (Amendment) Act,

1984. The Land Acquisition Collector was

thus ordered to pay solatium

@ 15% and interest @ 6% payable under the F

law then existing.

Some dissatisfied land-owners, including the appellants, moved the

Punjab and Haryana High Court in first appeals claiming a higher rate of

compensation. A learned Single Judge of that Court on considering the G

evidence and material on the record viewed that since several industries

had come up before the acquisition in the locality where the acquired land

was situated, the price, therefore, would have to be determined on that

potential.

As correctly suggested, the Learned

Single Judge placed no

reliance on instances where rates related to small pieces of land. The

learned Single Judge relied rather upon another decision of that Court in H

A

B

c

796 SUPREME COURT REPORTS [1994) SUPP. 2 S.C.R.

Regular first Appeal No. 1060 of 1981, decided on February 15, 1982,

where with regard to the same acquisition Rs. 10 per square yard had been

granted and thus instantly granted Rs. 10 per square yard for the land

acquired but reviving the classification gave a higher compensa~ion of Rs.

15 per square yard for the land abutting on both sides of the Delhi-Rohtak

Road upto a depth of 200 ft, (almost equal to 36 Karams). Some of the

dissatisfied land owners took their cases

in Letters

Patent Appeal before

a Division Bench of that High Court but unsuccessfully. They stand·granted

special leave to appeal against the judgment and order of the Letters

Patent Bench. They form one group. Some other land owners have directly

obtained leave against the decision of the learned Single ; udge. They for~

the other group. Both seek enhancement of compensatio~.

The basis of foe claim or the appellants is somewhat chain reacted

and circuitous. It has been traced that the decision of the District Judge,

Rohtak dated 27-2-1982

in the instant cases, awarding a uniform rate of

D Rs. 7 per square yard, was followed by an Additional District Judge,

Rohtak

on 27-7-1982 in L.A.

Case No. 145/4 of 1982 who had made in

award on 27-7-1982 relating

to the same acquisition, adopting the rate of

Rs. 7 per square yard. And when the dissatisfied land owners of that case

approached the High

Court in Appeal, ano.ther learned Single Judge on

May 18, 1990, in Maya Devi and another v. Stafe of Haryana & Others,

E Regular ·First Appeal No. 150 of 1982, made an award gran6ng compen­

sation at the rate of Rs~ 18.60 per square yard. To arrive at such figure the.

decision of that Court in Regular First Appeal No. 488 of 1975, (Sher Singh

& Another v. State of Haryana & Others, decided on 16.11.1979 was pressed

into service wherein some lands in contiguous villages Hasanpur, Pamala

F and Bahadurgarh were acquirnd under notification under section 4 issued

on 17.10.1969, i.e. about 7 years and 2 months prior to the instant acquisi­

tion, where rate of Rs. 10 per square yard was granted. Taking that as a

foundation another Single Judge's decision of that Court in Inder Singh v.

State of Punjab, (1988) 2 Vol. 94 Punjab Law Reporter 190, was pressed

into service as a reaction to opine that the Amendment Act of 1984 bad

G brought out the vision of the

11,gislature in giving 12% price rise every year

due to the inflationary trends and applying that ratio to the rate awarded

in

Sher Singh's case, the price rise came to Rs.

8.60 per square yard

totalling the market value of the land at Rs. 18.60 per square yard. The

rate so derived in

Maya Devi's case is now being claimed by the present

H appellants on the assertion that when for part of the acquired land this rate

'

MEHT AB SINGH v. STA TE [PUNCHH!. J. J 797

·has been given by the High Court itself, they arc now entitled to the said A

rate. In Mara Deri's case the learned Single Judge had even granted the

post-amendment statutory benefits of sections 23(2) and

28 of the Act.

but

these benefits the present appellants have not claimed and thus these are

out of our consideralion.

B

The abo\'c narration discloses i:he mess existing and the inept han­

dling of these matters affecting the ceffers of the State and its transferee·s

interests. The Hon'ble Single Judge deciding Maya Deri's case, for

whatever reason,

was not apprised of the decision rendered by the learned Sing!e Judge under appeal in the instant cases wherein, for the same

acquisition,

in the year 1982, compensation had been fixed at the rate of C

Rs. 15 and Rs.

10 respectively. In the normal circumstances, the learned

Single Judge,

if apprised, in Maya Devi's case too would have awarded the

rate

as given instantly by the learned Single Judge. Even the principle of

12% annual increase deduced in Maya Devi's case and lnder Singh's case

has no beaming to the instant .case because it was within a matter of days D

from the date of notification that the award was made. No occasion arose

·to take judicial notice of the inflation and high rise of prices. It must be

borne in mind that from the date of award, interest becomes due to the

claimant land owner, for thenceforth the land ceases to be

his and while

so the question of price rise does not arise when he

is compensated for the

deprival

by payment of interest. That apart we have our strongest

reserva" E

tions to the rule evolved by the Court in Maya Devi's case as also in lnder

Singh's case afore-quoted. The Amendment Act of 1984 is explicit in terms.

The limited retrospectivity provided in the amending provisions do not

permit adoption of 12% increase in price in each and every acquisition.

If

it was so intended the Legislature would have expressly provided so. We F

would decry that

rllle and express our disapproval for its universal applica-

tion or for all acquisitions.

We have had the advantage of reading the judgment in

Sher Singh's

case (supra) since at our asking its copy was placed before us. The High

Court had

foced Rs. 10 per square yard for an acquisition of October 17, G

1969 on the finding that during the year 1968-69 the value of the land in

the vicinity of the land acquired

was between Rs.

5.90 to 8.33 per square

yard and so it was appropriate to

fix the market value of the acquired land

at the rate of Rs.

10 per square yard. There the Land Acquisition Collector

had himself awarded the rate at Rs. 9 per square yard and the High Court

H

798 SUPREME COURT REPORTS [1994] SUPP. 2 S.C.R.

A enhanced it just by a rupee. No classification was resorted to. The present

acquired land

is in the \icinity of that land. Sher

SinRh 's case helps the

appellants

in a limited way to suggest uniformity of price.

B

c

As hinted earlier, the Land Acquisition Collection

even though

classifying

the

aCEJUired land in two categories had not made any marked

disparity between the rates. The difference barely

was of Rs.

560 per acre

-a few paise per square yard. The learned District Judge, in our \iew,

rightly wiped out the classification

in giving a flat rate of Rs. 7 per square

yard. The learned Single Judge

in appeal resurrected the classification and

put it at

Rs. 15 per square

yard on the land abutting the Delhi-Rohtak

Road upto a depth of

200 ft. on either side of the road and remaining land

at

Rs.

10 per square yard. The State of Haryana seemingly submitted to

the rate

as given by the learned Single Judge for the land abutting

Delhi­

Rohtak Road, for it did not carry the matter further in appeal. Thus as a

sequator

we are of the view that when classification of two sets of land right

from the beginning

was marginal and not appreciable,

there was no oc-

D casion for the High Court to have restored the classification on a large

disparity and thus a uniform rate of

Rs. 15 per square yard would now

inevitably

have to be given as the correct compensation awardable to the

claimant-land owners and

not Rs. 18.60 on the basis of Maya Devi's case

E

F

(supra). The enhancement due to the claimants-land owners is on the basis

of uniformity of rate as

for part of the land acquired Rs. 15 has been

awarded and since there

was no basis for clasification, there was no

premise for different rates of compensation. For this reason alone;

we allow

these appeals, modify the orders of the

High· Court and award to the

appellants a flat rate of Rs.

15 per square yard for their lands acquired.

They shall,

in additional to the enhancement of compensation, be

entitled

to 15% solatium on the enhanced amount and interest at the rate of 6%

on the unpaid amount from the date of award till actual payment.

The appeals are thus allowed to the extent and manner above­

mentioned with costs.

A.G. Appeals partly allowed.