RFA No.300 of 1991 1 In the Punjab and Haryana High Court,at Chandigarh. RFA No. 300 of 1991 Decided on November 17,2008. The State of Punjab -- Appellant vs. Kartari and others ---Respondents. And RFA No.625 of 1991 Decided on November 17,2008. The State of Punjab -- Appellant vs. Nasiboo and others ---Respondents. Present: Mr.N.S.Pawar,Addl.A.G.Punjab, for the appellants None for the respondents. Rakesh Kumar Jain,J: This order shall dispose of two appeals filed by the State of Punjab, i.e. RFA Nos. 300 and 625 of 1991, as common questions of law and facts are involved therein. Pursuant to notification issued under Section 4 of the Land Acquisition Act,1894 (for short, 'the Act') dated 13.5.1976 published in Government Gazette dated 14.5.1976 followed by a notification of RFA No.300 of 1991 2 declaration dated 9.9.1976, land falling in village Maide Majra, Hadbast No.238, Tehsil Anandpur Sahib, District Ropar, was acquired for public purpose, namely, for setting up of Soda Ash/Ammonium Chloride and Caustic Soda project at Nangal. The Land Acquisition Collector classified the land into three categories and vide his award No.2 dated 07.6.1979, allowed the compensation as under:- Chahi: Rs.14,000/- per acre Barani: Rs.12,000/- per acre Banjar Qadim: Rs.6000/- per acre &Gair Mumkin In the reference under Section 18 of the Act, an amount of Rs. 80,000/- per acre was claimed on the ground that the land in question had great potential at the time of its acquisition and the market value should have been assessed by treating the same as urban land being fit for construction of houses and setting up industrial units. In the reply, State of Punjab pleaded that fair, adequate and reasonable compensation in accordance with the prevailing market rates has already been granted to the land-owners . Both the parties led their respective evidence and after appreciating the same, learned District Judge, Ropar, vide his judgment dated 24.7.1989 gave an enhancement of Rs. 6000/- per acre for all types of land and awarded the compensation as under:- Barani: Rs.18,000/- per acre Chahi: Rs.20,000/- per acre Banjar Qadim Rs.12,000/- per acre &Gair Mumkin” RFA No.300 of 1991 3 Mr.N.S.Pawar, learned Addl. Advocate General, Punjab, has raised only one argument that since notification under Section 4 of the Act was issued on 13.5.1976 and award was announced on 07.6.1979,therefore, the claimants are not entitled to solatium @ 30% of the market value besides additional amount @ 12% under Section 23 (1-A) of the Act. Learned counsel has referred to the two decisions of the Apex Court i.e. Improvement Trust, Sangrur v. Gurjit Singh Sandhu & Ors. JT 1996 (2) S.C.111 and Krishi Utpadan Mandi Samiti Bulandshahr etc. v. Ganga Sahai & Ors.etc. JT 1996 (7) S.C.120 in which, it was held as under:- “The claimants are not entitled to the enhanced solatium and interest and also the additional amount since the reference Court had made the award and decree on 15.9.1979 that is much earlier to the introduction of the Amendment Act 68/1984. Therefore, the enhancement of 30% solatium, interest at 9% for one year from the date of taking possession and 15% thereafter till date of deposit and also of additional amount under Section 23 (1-A) stands set aside. Instead, the claimants will be entitled to solatium at 15% and interest at 6% on enhanced compensation from the date of taking possession till date of deposit as ordered by this Court in the interim order”. In view of the settled law, the appeals filed by the State of Punjab are allowed. The award of learned District Judge, Ropar, dated July 24,1989, is modified to the extent that the claimants are not entitled to the enhanced solatium and interest and also the additional amount as envisaged under the amended Act 68/1984. Therefore, the award of solatium @ 30% on the market value, interest @ 9% per annum from the date of taking possession till the expiry of one year and thereafter 15% per RFA No.300 of 1991 4 annum till the date of deposit as also the additional amount under Section 23 (1-A) of the Act stand set aside. However, the claimants will be entitled to solatium @ 15% per annum and interest @ 6% on enhanced compensation from the date of taking possession till the date of deposit. November 17,2008 (Rakesh Kumar Jain) RR Judge