1994 JTR(SC) 1050
1995 AIR(SC) 581 ; 1994 AIR(SCW) 4861 ; 1995 1 AndhWR(SC) 5 ; 1995 1 APLJ 38 ; 1994 3 CurCC(SC) 540 ; 1994 4 Scale 951 ; 1995 1 SCC 367 ; 1994 Supp4 SCR 696 ; 1995 KHC 752
SUPREME COURT OF INDIA
K. RAMASWAMY, S.P. BHARUCHA AND M.K. MUKHERJEE, JJ.
K. S. Paripoornan, Appellant
Versus
State of Kerala and others, Respondents.
Civil Appeal Nos. 7375-78 of 1994 in (SLP (Civil) Nos. 5514-17 of 1990)
Decided on 20-10-1994.
Advocates appeared
Mr. P. S. Poti, Sr. Advocate and Mr. V. B. Saharya Advocate, with him, for Appellant; Mr. A. S. Nambiar, Sr. Advocate and Mr. M. T. George, Advocate, with him, for Respondents.
* L.A.A. Nos. 119, 120, 125 and 134 of 1986, D/- 4 and 5-10-1986 (Ker.)
(A) The Kerala Land Acquisition Act, 1961 (Act 21 of 1962), as amended by the Land Acquisition (Amendment) Act, 1984 (68 of 1984), and the Central Land Acquisition Act, 1894 (1 of 1894), as amended, govern compensation and interest in land acquisition disputes. Notification under Section 3(1) of the Kerala Act was published on March 21, 1979, and awards were made by the Collector and the Civil Court between 1980 and 1986. The Amendment Act, effective September 24, 1984, repealed the Kerala Act and reactivated the Central Act, with its Sections 15(b) and 18 amending Sections 28 and 23(2) of the Principal Act. Section 30(2) of the Amendment Act operated as a transitory provision, deeming its enhanced interest and solatium provisions applicable to awards made after April 30, 1982 and before September 24, 1984, including awards by the Collector or Court and those on reference from earlier awards. The court applied these statutory frameworks to determine interest rates and compensation enhancements.
(B) Key legal principles include: (i) the applicability of enhanced solatium under Section 30(2) of the transitory provisions to awards made after April 30, 1982 and before September 24, 1984; (ii) the distinction between awards made before and after the commencement of the Amendment Act and their impact on interest rates; (iii) interest on excess compensation under Section 5(5) of the Amendment Act at 9% for one year and 15% thereafter; and (iv) the exclusion of 12% additional compensation under Section 23(1A) where the award predates the Amendment Act.
Facts of the case:
Notification under Section 3(1) of the Kerala Land Acquisition Act was published on March 21, 1979. The Collector passed an award on December 30, 1980, took possession of land on January 15, 1991 and March 13, 1981, and deposited compensation on August 10, 1981. The Civil Court enhanced compensation by Rs. 5,000 per cent in its decree dated February 28, 1965, and the enhanced amount was deposited on October 20, 1986 and December 3, 1986. The High Court, on appeal, confirmed the enhanced compensation but disallowed interest under Sections 28 and 23(1-A) of the Amendment Act. The central issue concerned the entitlement to enhanced interest under the amended Section 28.
Findings of Court:
The court found that although the award was made after the Amendment Act came into force, Section 30(2) of the transitory provisions attracted enhanced interest under Section 28 as amended by Section 18 of the Amendment Act for the period up to April 30, 1984. For the excess compensation deposited after one year, interest was payable at 9% per annum from the dates of possession (January 15, 1981 and March 11, 1981) for one year, and thereafter at 15% per annum until the deposit of the enhanced compensation. The appellant was not entitled to 12% additional compensation under Section 23(1A) as the award predated the Amendment Act.
Issues:
(i) Whether the appellant is entitled to enhanced interest under Section 28 as amended by the Amendment Act when the award was made after the commencement of the Amendment Act. (ii) The applicable rate and timeline for interest on excess compensation under the Amendment Act. (iii) Whether the 12% additional compensation under Section 23(1A) applies to awards made before the Amendment Act.
Ratio Decidendi:
The court held that Section 30(2) of the transitory provisions applies to awards made between April 30, 1982 and September 24, 1984, including awards by the Civil Court, thereby entitling the claimant to enhanced interest under Section 28 as amended. Interest on excess compensation is to be calculated at 9% for one year from the dates of possession and 15% thereafter until deposit, while 12% additional compensation is excluded as the relevant award predates the Amendment Act.
Result:
The appeals are allowed in part. The appellant is entitled to enhanced interest @ 9% per annum for one year from the dates of taking possession and 15% per annum thereafter on the excess compensation until deposit. The claim for 12% additional compensation under Section 23(1A) is not applicable. Costs are borne by the respective parties.
(A) The Kerala Land Acquisition Act, 1961 (Act 21 of 1962), as amended by the Land Acquisition (Amendment) Act, 1984 (68 of 1984), and the Central Land Acquisition Act, 1894 (1 of 1894), as amended, govern compensation and interest in land acquisition disputes. Notification under Section 3(1) of the Kerala Act was published on March 21, 1979, and awards were made by the Collector and the Civil Court between 1980 and 1986. The Amendment Act, effective September 24, 1984, repealed the Kerala Act and reactivated the Central Act, with its Sections 15(b) and 18 amending Sections 28 and 23(2) of the Principal Act. Section 30(2) of the Amendment Act operated as a transitory provision, deeming its enhanced interest and solatium provisions applicable to awards made after April 30, 1982 and before September 24, 1984, including awards by the Collector or Court and those on reference from earlier awards. The court applied these statutory frameworks to determine interest rates and compensation enhancements.
(B) Key legal principles include: (i) the applicability of enhanced solatium under Section 30(2) of the transitory provisions to awards made after April 30, 1982 and before September 24, 1984; (ii) the distinction between awards made before and after the commencement of the Amendment Act and their impact on interest rates; (iii) interest on excess compensation under Section 5(5) of the Amendment Act at 9% for one year and 15% thereafter; and (iv) the exclusion of 12% additional compensation under Section 23(1A) where the award predates the Amendment Act.
Facts of the case:
Notification under Section 3(1) of the Kerala Land Acquisition Act was published on March 21, 1979. The Collector passed an award on December 30, 1980, took possession of land on January 15, 1991 and March 13, 1981, and deposited compensation on August 10, 1981. The Civil Court enhanced compensation by Rs. 5,000 per cent in its decree dated February 28, 1965, and the enhanced amount was deposited on October 20, 1986 and December 3, 1986. The High Court, on appeal, confirmed the enhanced compensation but disallowed interest under Sections 28 and 23(1-A) of the Amendment Act. The central issue concerned the entitlement to enhanced interest under the amended Section 28.
Findings of Court:
The court found that although the award was made after the Amendment Act came into force, Section 30(2) of the transitory provisions attracted enhanced interest under Section 28 as amended by Section 18 of the Amendment Act for the period up to April 30, 1984. For the excess compensation deposited after one year, interest was payable at 9% per annum from the dates of possession (January 15, 1981 and March 11, 1981) for one year, and thereafter at 15% per annum until the deposit of the enhanced compensation. The appellant was not entitled to 12% additional compensation under Section 23(1A) as the award predated the Amendment Act.
Issues:
(i) Whether the appellant is entitled to enhanced interest under Section 28 as amended by the Amendment Act when the award was made after the commencement of the Amendment Act. (ii) The applicable rate and timeline for interest on excess compensation under the Amendment Act. (iii) Whether the 12% additional compensation under Section 23(1A) applies to awards made before the Amendment Act.
Ratio Decidendi:
The court held that Section 30(2) of the transitory provisions applies to awards made between April 30, 1982 and September 24, 1984, including awards by the Civil Court, thereby entitling the claimant to enhanced interest under Section 28 as amended. Interest on excess compensation is to be calculated at 9% for one year from the dates of possession and 15% thereafter until deposit, while 12% additional compensation is excluded as the relevant award predates the Amendment Act.
Result:
The appeals are allowed in part. The appellant is entitled to enhanced interest @ 9% per annum for one year from the dates of taking possession and 15% per annum thereafter on the excess compensation until deposit. The claim for 12% additional compensation under Section 23(1A) is not applicable. Costs are borne by the respective parties.
A.S.NAMBIYAR, M.T.George, P.S.POTI, V.B.SAHARYA
JUDGMENT
Leave granted.
2. Notification under Section 3(1) of the Kerala Land Acquisition Act, 1961 Act 21 of 1962 was published in the State Gazette on March 21, 1979. The Collector under Section 11 thereof passed his award on December 30, 1980. Thereafter, possession of some land was taken on January 15, 1991 and the balance land on March 13, 1981. The compensation was deposited on August 10, 1981. On a reference u/s. 18 the Civil Court enhanced the compensation at Rs. 5,000/- per cent in its award and decree dated February 28, 1965. The enhanced compensation was deposited on October 20, 1986 and December 3, 1986 respectively. The High Court on appeal, while confirming the enhanced compensation granted by the Civil Court disallowed interest under Sections 28 and 23 (1-A) of the Land Acquisition (Amendment) Act 68 of 1984, for short the Amendment Act. By operation of the Amendment Act which has come into force on September 24, 1984 repealed the Kerala Act and thereby Central Act 1 of 1894 became applicable as amended by the Amendment Act. Section 15(b) and Section 18 of the Amendment Act amended Section 28 and Section 23(2) of the Central Act 1 of 1894. The High Court, relying upon sub-section (2) of Section 30 of the transitory provision of the amendment Act was held that since the Award was made prior to the Amendment Act had come into force, the appellant is entitled to the interest under Section 30 of the Kerala Act at the rate of 4%. The question, therefore, is whether the appellant is entitled to the enhanced interest as envisaged under Section 28 as amended under Section 18 of the Amendment Act.
3. It is contended for the State by Shri A. S. Nambiar, the learned senior counsel that in Union of India v. Raghubir Singh (dead) by LRs., (1989) 2 SCC 754 : (AIR 1989 SC 1933) this Court had given restricted interpretation to Section 30(2) of the transitory provision holding that if the award has been made between April 30, 1982 and September 24, 1984, the claimant would be entitled to the benefit of the enhanced solatium under Section 23(2) of the Principal Act. On the parity of the ratio therein by operation of sub-section (2) of Section 30 of the transitory provision of the Amendment which includes Section 28 also, the ratio therein equally be applicable to the facts of these cases. Since the award was made by the Court after the Act has come into force the, appellant is not entitled to the enhanced interest under the amended Section 28 of the Principal Act. We are unable to agree with the learned counsel. Sec. 30(2) :
"30(2) - The provisions of sub-section (2) of S. 23 and S. 28 of the Principal Act, as amended by clause (b) of S. 15 and S. 18 of this Act respectively, shall apply, and shall be deemed to have applied, also to, and in relation to, any award made by the Collector or Court or to any order passed by the High Court or SC in appeal against any such award under the provisions of the Principal Act after the 30th day of April, 1982 (the date of introduction of the Land Acquisition (Amendment) Bill 1982, in the House of the People) and before the commencement of this Act."
This Court while noticing the effect of the amendment in sub-sec. (2) of Sec. 30 in paragraph 31 considered the effect thereof thus :
"31. In construing Sec. 30(2), it is just as well to be clear that the award made by the Collector referred to here is the award made by the Collector under Section 11 of the Parent Act, and the award made by the Court is the award made by the Principal Civil Court of Original jurisdiction under Section 23 (1) of the Parent Act on a reference made to it by the Collector under Sec. 19(18) of the Parent Act. There can be no doubt that the benefit of the enhanced solatium is intended by Sec. 30(2) in respect of an award made by the Collector between April 30, 1982 and September 24, 1984. Likewise the benefit of the enhanced solatium is extended by Sec. 30(2) to the case of an award made by the Court between April 30, 1982 and September 24, 1984, even though it be upon reference from an award made before April 30, 1982."
4. This Court thereby clearly held that even in the pending reference made before April 30, 1982, if the Civil Court makes an award between April 30, 1982 and September 24, 1984, Section 30(2) gets attracted and thereby the enhanced solatium was available to the claimants. Since Sec. 30(2) deals with both the amendment under Sec. 23(2) and the amendment to Sec. 28 of the principal Act by Section 15(b) and Sec. 18 respectively by parity of the reasoning the same ratio applies to the awards made by the Civil Court between those dates. The conflict of decisions as to whether Sec. 23 (2) as amended by Sec. 15(b) of the Amendment Act through Sec. 30(2) of the transitory provisions would be applicable to the pending appeals in the High Court and the SC was resolved in the Raghuvir Singhs case (AIR 1989 SC 1933) by the Constitution Bench holding that the award of the Collector or the Court made between April 30, 1982 and September 24, 1984 would alone get attracted to Sec. 30(2) of the transitory provision. The restricted interpretation would not be understood to mean that Sec. 23(2) would not apply to the awarded decree of the Civil Court pending at the time when the Act has come into force or thereafter. In this case, admittedly the award of the civil Court was after the Act has come into force, namely, February 28, 1985.
5. Therefore, if the sum which, in the opinion of the Court, the Collector ought to have awarded as compensation, is in excess of the sum which the Collector did award as compensation, the Court shall direct to pay interest on such excess at the rate of 9% per annum from the date on which the Collector took possession of the land to the date of payment of such excess into the Court. By operation of the proviso, if such excess or any part thereof is paid into the Court after the date of expiry of a period of one year from the date on which compensation is taken, interest at the rate of 15% per annum shall be payable from the date of expiry of the said period of one year on the amount of such excess or part thereof which has not been paid into the Court before the date of such expiry. Accordingly, the appellant is entitled to the enhanced interest @ 9% from the date of taking possession, namely, January 15, 1981 and March 11, 1981 respectively for one year @ 9% and thereafter @ 15% till the date of the deposit made by the Collector. Admittedly, the deposit of the enhanced compensation was made on October 20, 1986 and December 3, 1986, therefore, the interest shall be calculated at the enhanced rates for the aforesaid record.
6. The question relating to the payment of 12% additional compensation under Section 23(1A) over the excess compensation has already been covered by the Constitution Bench Judgment of this Court in K. S. Paripoornan v. State of Kerala, ((1994) 6 JT (SC) 182). Therefore, the appellant is not entitled to this benefit as the Collector made the award prior to the date of the Amendment Act came into force.
7. The appeals are accordingly allowed in part but in the circumstances, the parties are directed to bear their own costs.
Appeals partly allowed.
For Citation: AIR 1995 SC 581