IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA R.F.A. No: 318 of 2000 Date of decision: 18.9.2008 L.A.C. and another .. Appellants Versus Sher Singh and another .. Respondents Coram: The Hon’ble Mr. Justice R. B. Misra, Judge Whether approved for reporting?1 For the appellants : Mr. Ramakant Sharma, Advocate For respondent No.1: Mr. Ashok Kumar Sood, Advocate For respondent No. 2: Mr. P.M. Negi, Deputy Advocate General. ___________________________________________________________ R.B.Misra, J.(Oral) The present Regular First Appeal has been preferred by Nathpa Jhakri Project Corporation (In short NJPC) alongwith Land Acquisition Collector as appellants under Section 54 of the Land Acquisition Act, 1894 ( in short L.A. Act) against the award dated 29th July, 2000, passed by the learned District Judge, Kinnaur in Land Reference Petition No. 256 of 1993/99 whereby the reference petition moved by the respondent-claimant under Section 18 of the Act was allowed and compensation with respect to the house has been assessed at Rs. 1,00,000/-, and besides the respondent-claimant has been held entitled for 30% solatium and additional compensation under Section 23(1-A) of Land Acquisition Act, 1894 (in short called L.A. Act) at the rate of 12% per annum for the period from 5.3.1988 to 4.7.1991 and thereafter at the rate of 9% per 1 Whether reporter of local papers is allowed to see the judgment? No. 2 annum for one year w.e.f. 4.7.1991 and thereafter interest at the rate of 15% per annum till the enhanced amount of compensation was deposited or paid. Cross Objection No. 219 of 2001 in RFA No. 318 of 200 has also been preferred by respondent/claimant No.1, Sher Singh, under Order 41 Rule 22 CPC for payment of more amount than Rs. 1,00,000/- in reference to his claim for compensation of Rs. 1,90,000/- for the acquisition of two houses in question. Both, R.F.A. as well as the cross objections are being adjudicated by a common judgment as the same have been preferred in reference to the impugned order dated 29.7.2000 passed by the learned District Judge, Kinnaur in Land Reference Petition No. 256 of 1993/99. 2. For adjudication of the present appeal and cross objections, it is necessary to give the factual background as below:- The respondent-claimant No. 1 was owner of the land comprised in Khasra No. 1080/1 measuring 0-01-05 hqts. Situated in village Jhakri, Tehsil Rampur, District Shimla which was acquired for the purpose of raising construction of residential accommodation of staff of N.J.P.C. vide Notification dated 5.3.1988 issued under Section 4 of the L.A. Act published on 18.6.1988 in the official gazette. The award in question in respect of the acquisition was passed on 27.2.1991 for the compensation, as indicated below:- 1. Kiar Awal = Rs.56,278/- per bigha. 3 2. Bakhal Awal = Rs.26,500/- -do- 3. Bakhal Doem = Rs.23,500/- -do- 4. Uncultivated = Rs.20,000/- -do- 3. Being aggrieved with the compensation/award passed by the Land Acquisition Collector, the claimant- respondent No.1 preferred Land Reference Petition No. 256 of 1993/1999 under Section 18 of the L.A. Act claiming that the market value of the land is Rs.5,00,000/- per bigha and the value of the houses/property is Rs. 1,90,000/-. The said reference petition was contested amongst the parties and the learned District Judge has examined PW-1 Sher Singh as claimant, PW-2 Lalit Kumar, Civil Engineer and RW-1, K.K.Gupta as an Engineer. On appreciation of material on record and analyses of the testimonies of witnesses as well as exhibits, learned District Judge has framed three issues indicated as below:- 1. Whether the petitioner is entitled to the enhancement of compensation, if so, how much ? OPP 2. Whether the petition is time barred, as alleged ? OPR 3. Relief. 5. RW-1, K.K.Gupta, Engineer, has assessed the market value of the house property of the petitioner at Rs. 77,836/- against the claim of Rs. 1,90,000/-. After taking into consideration the potentiality and the variety of the land of Jhakri and keeping in view the exemplar, rate of sale and 4 purchase of relevant area, learned District Judge has found that Land Acquisition Collector has correctly awarded compensation in respect of four categories of land, indicated above and as such there is no dispute regarding the compensation awarded in respect of the land in question. Keeping in view the period of construction, keeping in view the payment of compensation, increase on account of rise in price index, labour material cost and the market value of the material and keeping in view the year of construction of the house in question and keeping in view the testimonies of PWs 1, 2 and RW-1 and allowing the depreciation in the value, learned District Judge, in my respectful consideration, has rightly assessed compensation of Rs. 1,00,000/- against the claim of Rs. 1,90,000/- for the house in question. 6. The only dispute is whether the payment of interest of compensation indicated to be paid by learned District Judge is to be made to the respondent/claimant as an additional compensation under Section 23(1-A) of the Act @ 12% per annum from the period of Notification under Section 4 of the Act or from the date of publication of Notification under Section 4 of L.A. Act. In my respectful consideration it is well settled that additional compensation under Section 23(1-A) of the Act @ 12% could be made from the date of publication of Notification under Section 4 of the L.A. Act and not from the date of Notification. To this extent, I find that there is apparent error and illegality committed by learned District Judge in the 5 impugned order by awarding the additional compensation from the date of Notification i.e. from 5.3.1988 to 4.7.1991, whereas the actual amount of additional compensation under Section 23(1-A) of the L.A. Act has to be made @ 12% per annum from 18.6.1988 to 4.7.1991. To this extent the order dated 27.9.2000 is modified and R.F.A. No. 318 of 2000 is partly allowed. The cross objection dated 2.9.2000 preferred by the respondent-claimant No.1 is dismissed in view of the aforesaid observations and analysis. September 18, 2008(K) ( R. B. Misra ), J.