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Land Acquisition Act, 1894 : Sections 4,6,11,15,18,23,24,25,50 and 54-Land acquisition for Company (Food Corporation of India)-Award-Reference court holding company's reference barred under Section 50(2)--Reference of claimants-- Company keen contestant-Compensation enhanced-Appeals by Company-Whether maintainable. Compensation-Determination of-Factors for consideration. Constitution of India, 1950: Article 136-Land-Acquisition of-Award-Reference court enhancing compensation-High Court upholding enhancement but on different grounds-Supreme Court-When can interfere and modify compensation. The State of Punjab acquired for the Food Corporation of India (f.c.i.), land measuring a little over 50 acres situated in the revenue estate of village Danewala near Malout town in District Faridkot. Notifications under sections 4 and 6 of the Land Acquisition Act, 1894 were issued on F 20.12.1977. The District Collector awarded compensation at the rate of Rs.30,000 per acre and below, according to the quality of land. Both, the land owners and the F.C.I., moved for reference under section 18 of the Act. The reference court held the references by the F.C.I. barred under the proviso to section 50(2) of the Act. As regards the references of the land owners, the court relied on two instances of sale, Ext.A-23 dated 6.6.1979 at the rate of Rs.1.20,000 per acre and Ext.A-16 dated 30.6.1981 at the rate of Rs.2,40,000 per acre. The court considered the sale Ext.A-23 closer in time and situation to the land acquired, and fixed the compensation at the uniform rate of Rs.1,20,000 per acre. It also held that the two sale instances Exts.A-16 and A-23 revealed the average price of Rs.1,80,000 per acre and since those transactions took place after the notification under s.4, 1/3 of the average price was to be deducted towards roads and parks, and thus market value would again come to Rs.1,20,000 per acre. It also awarded 30% solatium and statutory interest. Two sets of appeals - one by the claimant for enhancement of compensation and the other by F.C.I. for reduction of compensation - were filed before the High Court. The Single Judge dismissed all the appeals and affirmed the compensation awarded by the court below. He concluded that since the land under sale instance Ext.A-24 at the rate of Rs.1,40,000 had a better access, the compensation for the land acquired was rightly fixed at the rate of Rs.1,20,000 per acre. Consequent Letters Patent Appeals by the F.C.I. and the land owners were also dismissed by the Division Bench. It relied on sale instances Ex.A-11 dated 18.12.1978 at the rate of Rs.96,800 per acre and Ext. A-23 dated 6.6.1979 at the rate of Rs.1,20,000 per acre, and upheld the compensation awarded by" the courts below. The F.C.I and the claimants further appealed to this Court by special leave. The land owners, besides challenging the judgments of the courts below on merits, also raised a preliminary objection to maintainability of the appeals by F .C.I. It was contended that in view of proviso to s.50(2) of E the Land Acquisition Act, which debars the local authority or company from demanding reference under s.18, the F.C.I. could not tile appeals against the award of the court. |
