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PETITIONER: SA.  JAIN COLLEGE TRUST & MANAGING SOCIETY

       Vs.

RESPONDENT: THE STATE OF HARYANA & ANR.

DATE OF JUDGMENT24/02/1995

BENCH: PARIPOORNAN, K.S.(J) BENCH: PARIPOORNAN, K.S.(J) VERMA, JAGDISH SARAN (J)

CITATION:  1995 SCC  (3)  74        JT 1995 (3)   510  1995 SCALE  (2)95

ACT:

HEADNOTE:

JUDGMENT: PARIPOORNAN, J.: 1.Leave granted. 2.This   appeal   is  filed  against  the   Judgment   dated 09.05.1986,  of  the  Division Bench of the  High  Court  of Punjab & Haryana, in L.P.A. No. 139 of 1986 and C.M. No. 903 of 1986, affirming the Judg- 512 ment  of  the Single Judge rendered in R.F.A.  390/75  dated 25.10.1985  regarding the award of compensation  made  under land  Acquisition  Act.  The  appellant-Society  is  running educational  and  charitable Institutions in  the  State  of haryana.  For providing a playground to one of its colleges, the   appellant-Society  got  acquired  7  bighas  of   land belonging to the second respondent in this appeal  (original claimant  in  the land acquisition proceedings),  under  the Land Acquisition Act, 1894, hereinafter referred to as  ’the Act’.  Notifications under section 4 of the Act were  issued on  15.05,1968,  and  11.06.1968.  The  notification   under section  6  was  issued on 13.8.1969.  fly  an  award  dated 29.9.1970, compensation was awarded to the second respondent the land owner, at the rate of Rs. 12000/- per acre and  Rs. 1000/-  as  price  of well apart from 15%  solatium  and  6% interest,  from the date of Notification up to the  date  of award. 3.In the reference to court at the instance of the appellant as well as the third respondent, the Addl.  District  Judge, byjudgment   dated   30.12.1974,   awarded   the    enhanced compensation at the rate of Re. 1/per sq.yard for the entire land and further interest at the rate of 6% per annum  under section 4 of the Act from the date of Notification till  the additional  amount was paid to the claimant.  In the  appeal filed  by the claimant before the High Court of  Punjab  and Haryana in R.F.A. No.390 of 1975, a learned Single Judge  of that  court by Judgment dated 25.10,1985 enhanced  the  com- pensation  for the land acquired at the rate of  Rs.g/-  per

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sq.yard.  The learned Single Judge also awarded 30%  of  the market  value of the land acquired as solatium,  along  with 12% of such market value from the date of Notification under section  4 of the Act till the date of taking possession  of the  land and interest at the rate of 9% per annum  for  the first  year and thereafter at the rate of 15% till the  date of  payment  of compensation for the land acquired.   It  is against  the  aforesaid  Judgment  the  petitioner/appellant filed LPA No. 139 of 1986 before the Division Bench, wherein the award of compensation was not interfered with. 4.We  heard counsel for the appellant Sri.  H.M.  Singh  and also the counsel for the respondents Sri Mahabir Singh.  The main  grievance  of counsel for the appellant was  that  the Division  Bench  was in error in declining to  consider  the issue  of  enhancement  of compensation  and  the  resultant benefits awarded by the learned Single Judge.  We find  from a  close perusal of the Judgment of the District  Judge  and also  the  learned  Single Judge,  that  the  land  acquired possessed  all characteristics of a potential building  site for  both  residential  as  also  commercial  or  industrial purposes  and  it  was  near  to  other  buildings  and  es- tablishments.  Considering the totality of the circumstances and  other  relevant particulars, the learned  Single  Judge noticed that the rate of land in the locality had gone up to Rs.  9/-  per sq.yard in 1967 and has still gone up  to  Rs. 11/-  per sq.yard in 1970 and 1971.  In  the  circumstances, the learned Single Judge fixed the market value for the land acquired  at  Rs.8/- per sq.yard. We are of  the  view  that considering the importance of the locality, the potential of the land, and the user to which it can be put, the  fixation of  the  market  value of the land acquired  at  Rs.8/-  per sq.yard  is reasonable and the Division Bench in appeal  did not rightly interfere with the above determination.  We hold that  the fixation of the market value of the land  acquired at 513 Rs. 8/- per sq. yard is reasonable and proper. 5.The  Land Acquisition (Amendment) Act, 1984  (ActNo-68  of 1984) became law on 24th September, 1984.  The appeal  filed by the claimant was pending before the learned Single  Judge of  the  High Court on the day when the Amendment  Act  came into force.  The learned Single Judge delivered the Judgment on  25.10.1985., So the award of 30% solatium on the  market value  of  the land acquired is  justified.   Similarly  the award  of the interest on excess compensation fixed  by  the Court at the rate of 9% for the first year from the date  of taking  possession, and thereafter at 15% till the  date  of payment  of  the  compensation for  the  land  acquired,  is equally  justified.  But we are of the view that the  amount of  12% per annum awarded on the market value from the  date of  publication of the Notification under section 4  of  the Act till the date of taking possession of the land,  awarded as  per section 23(1A), is not legally justified.   In  this case,  the  proceedings for land acquisition  cornmenced  as early  as 15.5.1968 and the award was made by the  Collector on  29.2.1970,  and  the possession of the  land  was  taken immediately  thereafter.   All  such  events  happened  long before  the  Land Acquisition (Amendment) Act of  1984.   In such  cases  the claimants are not entitled to  the  benefit under  section 23(1-A) of the Land  Acquisition  (Amendment) Act  (Amendment Act 68 of 1984).  This view is fortified  by the decision of this Court in Union of India v. B. V. Saroja & Anr. (1995 (1) SCALE 309). 6.In  the result, we hold that the claimant is not  entitled to the benefit of section 23(1-A) of the Act --,award of  an

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amount calculated at the rate of 12% per annum on the market value from the date of publication of the notification under section  4 of the Act till the date of taking possession  of the  land.  Subject to this modification, the  decisions  of the  courts below are affirmed.  There shall be no order  as to costs in this appeal. 515