Citation : 2025 Latest Caselaw 5111 Guj
Judgement Date : 25 June, 2025
NEUTRAL CITATION
C/FA/5341/1998 JUDGMENT DATED: 25/06/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 5341 of 1998
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK
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Approved for Reporting Yes No
No
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RABARI LAKHA BHURA & ANR.
Versus
STATE OF GUJARAT & ORS.
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Appearance:
DECEASED LITIGANT THROUGH LEGAL HEIRS/
REPRESTENTATIVES for the Appellant(s) No. 1
MR HARSHIL C DATTANI(6241) for the Appellant(s) No. 1.1
MS ROSHNI PATEL AGP for the Defendant(s) No. 1,2,3
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CORAM:HONOURABLE MR. JUSTICE HEMANT M.
PRACHCHHAK
Date : 25/06/2025
ORAL JUDGMENT
1. Present first appeal is arising out of Land Reference Case No.471 of 1983 decided by the Reference Court by common award in seven Reference cases on 30.04.1998. In this matter, the notification under section 4 of the Land Acquisition Act was published on 18.12.1980 and under section 6 on 23.07.1981. The
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C/FA/5341/1998 JUDGMENT DATED: 25/06/2025
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Land Acquisition Officer published the award on 12.03.1982.
2. The main issue raised by learned Harshil Dattani, for the appellants is that the Reference Court had failed to give benefit of the amended provisions of Sections 23(2) and 28 of the Land Acquisition Act as held by the Supreme Court in the case of Panna Lal Ghosh & Ors. Vs. Land Acquisition Collector and Ors., reported in 2003 (10) SCALE 725. Mr.Dattani had also faintly sought to contend that the Reference Court had committed an error in not considering the fact that the appellants were yielding three crops in a year, and in not awarding the compensation accordingly.
3. However, learned AGP Ms.Roshni Patel submitted that the award having not been made by the Collector between 30.04.1982 to 24.09.1984 as per section 30(2) of the Amending Act, which pertained to transitory provision, the Reference Court had rightly awarded the solatium at the rate of 15% under section 23(2) and interest at the rate of 4.5% per annum under section 28 of the said Act.
4. As regards the submission of Mr.Dattani that the was yielding three crops in a year, there was no evidence produced by the claimant, and therefore rightly not considered by the Reference Court. The other issue raised by Mr.Dattani as regards the benefit to be granted under section 23(2) and section 28 of the Act, the Court is of the opinion that the said issue is no more
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C/FA/5341/1998 JUDGMENT DATED: 25/06/2025
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resintegra. The Supreme Court in the case of K.S.Paripoornan Vs. State of Kerala and Ors., (II) reported in (1995) 1 SCC 367, after considering the applicability of section 30(2) of the Amending Act held as under:
"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 Supreme Court 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
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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 Supreme Court was resolved in the Raghuvir Singh's case 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
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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 theaforesaid record."
5. The said issue was also considered by the Supreme Court in the case of Panna Lal Ghosh and Ors. (Supra), wherein it has been held as under:
"12. In Union of India v. Filip Tiago De Gama, AIR 1990 SC 981, the issue was whether the amendment would apply to an award made subsequent to 24-9-1984 even though the acquisition proceedings had commenced prior to the date. This Court looked at the intention behind giving retrospective effect to the amending Section. If the literal interpretation is taken, it was held, it will result in an anomaly. In order to avoid it, regard must be had to the purpose of Section 30(2). Consequently, this Court awarded higher solatium even though the Reference Court made the award in 1985.
13. Again in K. S. Pari-poornan's case (supra), this Court widened the restricted interpretation given in Raghubir Singh's case. It held that the enhanced solatium would apply even to a case pending at the time the Act came into force.
14. Following this train of thought, the benefit of enhanced solatium would extend to the presentcase. During the period between 30-4-1982 and 29-9-1984, the reference was pending in the Reference Court. The Court's award was passed in 1985. Following the above interpretation, the appellants are thus entitled to enhanced solatium @ 30% and interest under Section 23(2) of the Act."
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6. Yet in another case the Supreme Court in the case of Lilawati Agarwal (Dead) by Legal Representatives and Ors. Vs. State of Jharkhand reported in (2016) 6 SCC 566, clarified as under:
"10. On a perusal of the principle stated in Raghubir Singh case and what has been clarified in K.S. Paripoornan (II) case, we do not find that the three-Judge Bench decision runs counter to the authority in the Constitution Bench. It also does not give a different interpretation to Section 30(2) that what has been stated by the Constitution Bench. In fact, K.S. Paripoornan (II) clearly postulates about the awards that have been passed by the court after the Act has come into force which is in consonance with the ratio laid down in Raghubir Singh's case. The three-Judge Bench has only observed that the restricted interpretation placed by the Constitution Bench in Raghubir Singh (supra) should not convey that Section 23(2) would not apply to the awards of the civil court pending at the time when the Act came into force or thereafter. Thus, the controversy with which the three- Judge Bench was dealing with was absolutely different and the view expressed by it is absolutely in accord with the principles laid down in Raghubir Singh's case. Additionally, it is also in consonance with the provisions contained in Section 23(2) of the Act. Therefore, we do not see any reason to disagree with the view expressed in K.S. Paripoornan (II) as we are of the convinced opinion that it has appositely understood the rule exposited in Raghubir Singh's case.
7. In the instant cases, the award having been made by the Special Land Acquisition Officer in 1982 and by the Reference Court in 1998, the appellant claimant would be entitled to the benefit of the amended Section 23(2) and section 28 of the said Act. In that view of the matter, it is held that the appellant would be entitled to the sum of 30% on the market value fixed by the
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Reference Court as contemplated under section 23(2) and the interest at the rate of 9% per annum for one year from the date of taking possession on the excess amount and at the rate of 15% per annum after expiry of the one year till payment of the excess amount as contemplated under section 28 of the said Act.
8. The award made by the Reference Court stands modified accordingly. The appeals stand partly allowed.
(HEMANT M. PRACHCHHAK,J) V.R. PANCHAL
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