State of Punjab vs Avtar Singh and Others

Leave granted.

Heard counsel for the parties.

Originally land admeasuring 54 Kanals 11 Marias was requisitioned by the Dist. Magistrate, Amritsar by a Notification published on September 9, 1946 for para-military purposes. Subsequently, notification u/s 4 of the Land Acquisition Act was published by the State Government on dated June 30, 1965. The arbitrator awarded the compensation on January 25, 1972. On reference, compensation was enhanced to Rs. 30/- per square yard by the award dated March 5, 1973 together with solatium at 15% and interest at 12% from the date of acquisition till payment was made on behalf of the State. The claimants F.A.O. No. 76/73 was disposed of by the High Court on November 17, 1982. Subsequently, an application was made under Sections 152 & 151 of C.P.C. requesting the High Court to amend the decree applying the Land Acquisition (Amendment) Act 68 of 1984. The High Court allowed CM. No. 2911-C/1986 on dated July 22, 1986 granting the benefits of 30% solatium instead of 15% solatium and also interest on 9% for one year from the date of taking possession and thereafter @ 15% after the expiry of one year till date of payment or deposit whichever is earlier. The order in First Appeal is accordingly modified. A Review Petition filed was also dismissed. Thus this appeal by special leave.

It is now settled law by this Court in Union of India (UOI) and Another Vs. Raghubir Singh (Dead) by Lrs. Etc., and K.S. Paripoornan Vs. State of Kerala and Others, , the L.A. Amendment Act 68/84 does not apply to an award made by the Civil Court prior to introduction of the L.A. Amendment Bill. Section 28 proviso and Section 23(2) as amended by Act 68/84 would apply to an award made by the Collector or Civil Court between April 30, 1982 to September 24, 1984 and have no application to pending appeals in the High Court or Supreme Court. Equally Section 23(1A) does not apply to a notification u/s 4(1) published prior to April 30, 1982. The Addl. Dist. Judge made an award in this case on March 5, 1973. The claimants are, therefore, not entitled to the payment of solatium at 30% and interest at 9% and 15% respectively u/s 23(2) of the Act and proviso to Section 18 of the Act on the enhanced compensation. Equally u/s 28, the Principal Act claimant was entitled to only 6% interest on the enhanced compensation from the date of taking possession. In this case since lands were initially requisitioned and rent was paid till date of acquisition, the claimants are entitled to interest only from the date of award by the Collector. The order of the High Court dated July 22, 1986 set aside, instead the respondents-claimants are entitled to 15% solatium on the enhanced compensation and interest at 6% on the enhanced compensation from the date of the award i.e. January 25, 1972. The appeal is accordingly allowed. No costs.