IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH F.A.O. No.834 of 1985 Date of Decision : December 17, 2008 Balwant Singh and another .....Appellants Versus Union of India and others .....Respondents CORAM : HON'BLE MR JUSTICE T.P.S. MANN Present : Mr. R.S. Manhas, Advocate for legal representatives of Balwant Singh-appellant. Mr. M.S. Rakkar, Senior Advocate with Mr. P.S. Baath, Advocate for legal representatives of Vir Karan Singh-appellant. Mr. Rajiv Sharma, Senior Central Government Standing Counsel for the respondents. T.P.S. MANN, J. Alongwith the present appeal, the Court also intends to dispose of F.A.O. Nos. 801, 802, 803, 804, 805, 835, 1188, 1189 and 1190 of 1985 as all of them have arisen out of a consolidated award dated 6.3.1985 in five arbitration cases delivered by Additional District Judge, Gurdaspur while exercising the powers of Arbitrator under Section 8(i) of the Punjab Requisitioning and Acquisition of Immovable Property Act, 1952 (hereinafter referred to as 'the Act'). Land situated in Ladho Chak and Dhaki villages in tehsil F.A.O. No.834 of 1985 -2- Pathankot, was acquired under Section 7 of the Act by the Union of India for defence purposes. Special Land Acquisition Collector awarded compensation to the land owners but according to the land owners the compensation awarded was low and inadequate. Accordingly, the land owners moved the Union of India for the appointment of an Arbitrator for determining the amount of compensation awardable to them which should be reasonable, just, adequate and commensurate with the market value of the land acquired. Vide notification No. 26/20/78-5Judl./24459 dated 28.11.1984, the Punjab Government appointed Additional District Judge, Gurdaspur as an Arbitrator so as to determine the amount of compensation awardable to them for the acquisition of their land. In their applications under Section 8 of the Act, the land owners had alleged that the land acquired was situated just adjoining the municipal limits of Pathankot Town and commercial establishments were also there in existence at the time of acquisition. The acquired land was suitable for being converted into use for commercial purposes. The acquired land adjoined the abadi of the aforementioned villages and due to the extension of municipal limits, the acquired land was suitable for being converted into residential plots and could be sold at the rate of Rs.500/- per marla. Accordingly, they claimed compensation at the rate of Rs.500/- per marla. In addition, they claimed solatium and interest at the usual rates. F.A.O. No.834 of 1985 -3- The applications were opposed by the Union of India and others on the ground that the Special Land Acquisition Collector awarded reasonable, fair and adequate compensation for the land acquired. The land acquired was situated outside the municipal limits and one kilometer away from the national highway. The acquired land could not have been used for residential and commercial purposes at the time of acquisition. The acquired land was situated away from the abadi of village Dhaki. The abadi of village Dhaki fell outside the municipal limits. All the relevant factors were taken into account by the Special Land Acquisition Collector for determining the amount of compensation for the land acquired. As the acquisition of land in the five arbitration cases was under the same scheme and the acquisition related to adjoining villages, learned Arbitrator vide order dated 4.1.1985 consolidated them. Evidence was recorded only in Arbitration Case No. 23 of 1984 which was also to be read in the remaining arbitration cases. Vide consolidated award delivered on 6.3.1985, learned Arbitrator awarded Rs.250/- per marla for the land acquired in village Dhaki and Rs.175/- per marla for the land acquired in village Ladho Chak. In addition, solatium at the rate of 30% and interest at the rate of 9% per annum on the enhanced amount of compensation from the date of acquisition till realisation were also awarded. F.A.O. No.834 of 1985 -4- Aggrieved of the aforementioned award, the land owners have filed F.A.O. Nos.834, 835, 1188, 1189 and 1190 of 1985 wherein they have prayed for enhancing the market value of acquired land to Rs.500/- per marla, besides solatium at the rate of 30% and interest at the rate of 9% per annum on the said enhanced amount. On the other hand, the Union of India and others have filed F.A.O. Nos. 801, 802, 803, 804 and 805 of 1985 for setting aside the impugned award. I have heard learned counsel for the parties, perused the impugned award and the evidence available on the record. AW1 Rup Lal, Building Inspector-cum-Surveyor, Municipal Committee, Pathankot had deposed on the basis of certified copy of the plan Ex.A1 that village Dhaki was within municipal limits in the year 1962 also. In the said year, some area of Air Force Station fell within municipal limits while some fell outside the municipal limits. The area which fell within municipal limits was in possession of Air Force Station. From the abadi of village Dhaki, S.D. College, Pathankot and Industrial Training Institute, Pathankot were at a distance of 200/300 yards. Jammu-Jalandhar bye-pass, which was a national highway, adjoined the abadi of villages Ladho Chak, Tajpur and Dhaki. Tri-junction point adjoined the municipal limits of Pathankot. There were many shops in Dhaki chowk. F.A.O. No.834 of 1985 -5- AW2 Madan Lal, Patwari deposed that he had prepared Aks Shajra Ex.A2 from Aks Latha. He had shown the acquired land in Aks Shajra in dots in blue colour while the roads in red colour. The acquired land adjoined municipal limits of Pathankot. Adjoining the acquired land was Rest House of Himachal Pradesh Government, which he had shown in green colour. The land belonging to Shamsher Singh, shown in black colour, was also acquired by Union of India. Similarly, area encircled by brown lines had been acquired by the Union of India. Abadi of village Dhaki adjoined the acquired land. Mutations No.312, 317, 329, 348, shown in blue colour in Aks Shajra Ex.A2 were at a distance of 600 feet, 300 feet, 300 feet and 300 feet, respectively from the acquired land. The boundary lines of villages Ladho Chak and Dhaki adjoined each other. AW3 Rattan Chand, Patwari of village Ladho Chak, testified that he had prepared Aks Shajra Ex.A3 from Aks Latha. He had shown the acquired land in black colour in Aks Shajra Ex.A3, whereas Deriwala-Pathankot Road in red colour. The said road was at a distance of 4 killas from the acquired land. The land belonging to Chajju Ram and acquired by the Union of India earlier had been shown in blue colour. Boundaries of villages Ladho Chak and Dhaki adjoined. There were a biscuit factory and two saw mills near the acquired land and the land underneath them had also been acquired. F.A.O. No.834 of 1985 -6- Vir Karan Singh, who was one of the land owners also appeared as AW4 and stated that the acquired land was situated in villages Dhaki and Ladho Chak. The abadi of Dhaki fell within municipal limits. The acquired land was at a distance of 100/150 feet from the abadi of Dhaki. There were 200/300 shops, Rest House, petrol pump and cold storage in Dhaki chowk. There were a biscuit factory and two saw mills in the acquired land prior to acquisition. The S.D. College, Pathankot and I.T.I., Panthakot were at a distance of 100/150 yards from the acquired land. Land of Shamsher Singh adjoined the acquired land. At the time of acquisition, the acquired land was of the value of Rs.700/- per marla. Before closing their evidence, the claimants tendered in evidence copy of award dated 23.10.1981 Ex.A4 and copies of mutations Exs.A5 to A8. On the other hand, the Union of India examined two witnesses. RW1 Shri B.L. Chhabra, SDO, Defence Estate Office, Pathankot testified that the acquired land was not entirely situated within the municipal limits. Out of the acquired land, some land of village Dhaki fell within the municipal limits for which the Military Land Acquisition Collector had awarded Rs.3,500/- per kanal or Rs.175/- per marla and for some land of village Dhaki Rs.2,500/- per kanal had been awarded. For land of village Ladho Chak, Rs.2,500/- F.A.O. No.834 of 1985 -7- per kanal had been awarded and for Nehri land of vilalge Dhaki, Rs.2,000/- per kanal had been awarded, whereas Rs.1,000/- per kanal had been awarded for Barani land of village Ladho Chak. The rates were awarded as per classification of lands. Ex.R1 was the copy of award delivered by the Military Land Acquisition Collector. The land had no potential value. There was no industry near the acquired land. However, during cross-examination, he stated that S.D. College, Pathankot and I.T.I., Pathankot were at a distance of 300 karams from the acquired land. Main Dhaki chowk was at a distance of few yards from the acquired land. Lands of Shamsher Singh and Sowarn Singh were also acquired in the same scheme and notification. However, he denied knowledge as to whether in the year 1981 learned Additional District Judge, Gurdaspur awarded Rs.400/- per marla for the land acquired belonging to Sowarn Singh and Shamsher Singh situated in village Dhaki. RW2 Gurminder Singh, Patwari, Land Acquisition Collector's Office, Pathankot stated that he had prepared the Aks Shajra Ex.R10 from Shajra Kishtwar showing the acquired land as well as mutations Exs.R3 to R9. In cross-examination he admitted that the boundaries of Dhaki chowk touched the boundaries of acquired land and the site plan Ex.R10 pertained to the land of village Dhaki only. It is clear from the award Ex.A4 delivered by Additional F.A.O. No.834 of 1985 -8- District Juge, Gurdaspur exercising powers of Arbitrator under Section 8 of the Act that Shamsher Singh son of Chajju Ram, whose land was also acquired under the same scheme in which the land of the claimants in the present appeals had been acquired, was awarded compensation at the rate of 400/- per marla, apart from solatium and interest. Vide mutation Ex.A5, 16 marlas of land situated in village Dhaki was sold for Rs.8,000/- on 6.1.1970. Similarly, land measuring 4 kanals 13 marlas in village Dhaki was sold on 1.4.1970 for Rs.22,400/-, 5 marlas situated in village Dhaki on 15.1.1971 for Rs.2,000/- and 8 marlas situated in village Dhaki on 28.6.1965 for Rs.3,000/- vide mutations Exs.A6, A7 and A8, respectively. The lands covered by mutation Ex.A5 was at a distance of 600 feet from the acquired land while those in mutations Exs.A6 to A8 at a distance of 300 feet. The Union of India relied upon mutations Exs.R3 to R9 so as to apprise the learned Arbitrator about the price of the lands situated in villages Dhaki and Ladho Chak and sold soon, before and after the scheme in question. 4 kanals 13 marlas of land situated in village Dhaki was sold on 1.4.1970 for Rs.22,400/-, 4 marlas situated in village Dhaki sold on 10.10.1969 for Rs.1,000/-, 15 marlas situated in village Dhaki sold on 19.7.1972 for Rs.2,000/-, 5 marlas in village Dhaki sold on 27.12.1972 for Rs.500/-, 29 kalals 5 marlas in village Ladho Chak sold on 6.8.1970 for Rs.42,000/-, 19 kanals 9 marlas in village Ladho Chak sold on 24.1.1970 for Rs.37,000/- and 3 kanals 8 marlas in village F.A.O. No.834 of 1985 -9- Ladho Chak sold on 28.10.1971 for Rs.1,700/- vide mutations Exs.R3, R4, R5, R6, R7, R8 and R9, respectively. However, none of these can be considered for determining the compensation for the acquired land as the price per marla in the same was below the rates awarded by the Special Land Acquisition Collector. There is sufficient evidence on the file to establish that the acquired land was at a distance of 100/150 feet from the abadi of village Dhaki. Some part of village Dhaki, which had earlier been acquired for Air Force Station, had come within municipal limits of Pathankot Town. S.D. College, Pathankot and I.T.I., Pathankot were at a distance of 200/300 yards from the abadi of village Dhaki. It has also come in evidence that the boundary lines of village Dhaki adjoined that of village Ladho Chak and the tri-junction of these two villages with village Tajpur adjoined the municipal limits of Pathankot. Therefore, the acquired land had potential for being used for commercial purposes as well. In that situation, no distinction could be drawn so as to determine higher price for the land acquired which was situated in village Dhaki as compared to the one situated in village Ladho Chak which also stood acquired vide same scheme dated 14.2.1971. Learned Arbitrator did notice the fact that Shamsher Singh and his father Chajju Ram of village Dhaki were awarded compensation for their land which stood acquired in the year 1972 at the rate of F.A.O. No.834 of 1985 -10- Rs.400/- per marla. However, the said rate was not made the sole basis for awarding compensation to the land owners in the arbitration cases in hand. Instead, learned Arbitrator took into account the average of the price covered by mutations Exs. A5 to A8, besides award Ex. A4. Taking into consideration the totality of the circumstances, this Court is of the view that the maximum amount awarded to the land owners vide award Ex.A4 ought to be made the basis for granting compensation to the claimants in the present case at the rate of Rs.400/- per marla as the land forming subject matter of award Ex.A4 fell within the revenue limits of village Dhaki whereas under the scheme in question, out of which the 5 arbitration cases in hand arose, the acquired land fell within the revenue limits of villages Dhaki and Ladho Chak, besides the fact that the land of village Ladho Chak was contiguous to that of Dhaki. In respect of the objection raised by the Union of India regarding granting of solatium to the land owners at the rate of 30% and interest at the rate of 9% per annum by the learned Arbitrator on the enhanced amount of compensation in view of the decision of Hon'ble Supreme Court in Union of India v. Hari Krishan Khosla (dead) by LRs, 1993 Supp.(2) Supreme Court Cases 149, wherein it was held that failure to provide solatium and interest under Section 8 (3)(a) of the Act did not make it discriminatory, it would be worthwhile to refer to para 79 of the said judgment, wherein it was found just and proper to apply the principle laid down in Harbans Singh Shanni Devi v. Union of F.A.O. No.834 of 1985 -11- India disposed of by the Hon'ble Supreme Court on February 11, 1985. The said para reads as under :- “79. This is a case in which for 16 years no arbitrator was appointed. We think it is just and proper to apply the principle laid down in Harbans Singh Shanni Devi v. Union of India (Civil Appeal Nos. 470 and 471 of 1985, disposed of by this Court on February 11, 1985). The Court held as under :- “Having regard to the peculiar facts and circumstances of the present case and particularly in view of the fact that the appointment of the arbitrator was not made by the Union of India for a period of 16 years, we think this is a fit case in which solatium at the rate of 30 per cent of the amount of compensation and interest at the rate of 9 per cent per annum should be awarded to the appellants. We are making this order having regard to the fact that the law has in the meanwhile been amended with a view to providing solatium at the rate of 30 per cent and interest at the rate of 9 per cent per annum.” ” The facts of the present case are para materia to that of Harbans Singh Shanni Devi (supra) and applied in principle in the case F.A.O. No.834 of 1985 -12- of Hari Krishan Khosla (supra) so as to provide solatium at the rate of 30% and interest at the rate of 9% per annum. In the present case also, the scheme was issued on 14.2.1971. Learned Special Land Acquisition Collector, Pathankot delivered the award on 8.1.1973 while making assessment of compensation payable to the land owners for their land. The appointment of the Arbitrator was made by the Government of Punjab vide notification No.26/20/78-5 Judl./24459 dated November 28, 1984. Therefore, the claimants in the present case were also entitled to solatium at the rate of 30% and interest at the rate of 9% per annum on the enhanced amount of compensation. Resultantly, the claimants are held entitled to compensation for the acquired land at the rate of Rs.400/- per marla irrespective of the fact whether the acquired land was situated in village Dhaki or village Ladho Chak subject to the Court fee affixed by them. In addition, they are also entitled to solatium at the rate of 30% and interest at the rate of 9% per annum on the enhanced amount of compensation. The interest on the enhanced amount of compensation shall be payable from the date of acquisition till realisation. F.A.O. Nos. 801, 802, 803, 804 and 805 of 1985 are, therefore, dismissed, whereas F.A.O. Nos. 834, 835, 1188, 1189 and 1190 of 1985 are allowed to the extent indicated above. ( T.P.S. MANN ) December 17, 2008 JUDGE satish F.A.O. No.834 of 1985 -13-