Defence Estate Officer vs Syed Abdul Saleem & Ors

1 The Appellant has by the pulpit of this Civil Appeal assailed the Judgment and final Order dated 13.3.2007 passed by the Hon'ble High Court of Judicature, Andhra Pradesh (Hyderabad) in CMA No. 1986 of 2003, rendered in the matter of Syed Abdul Saleem v. The Government of Andhra Pradesh, wherein the appeal preferred by the Respondents herein was allowed by the High Court, which enhanced the rate of compensation from Rs.6/- per sq. yard awarded by the Learned Arbitrator, to Rs.12/- per sq. yard along with the award of 30% solatium and interest at 9% from the date of possession, i.e., 28.07.1970. The subject lands, situated at Village Ibrahimbagh District, Hyderabad, were acquired for setting up of an Artillery Centre at Golconda. The Ministry of Defence, Government of India, accorded its sanction dated 1.12.1969 for the acquisition of land admeasuring 1181.70 acres, at an estimated total cost approximating Rs.35,45,100/-. The lands of the Respondents, admeasuring 2 acres 28 guntas in Revenue Sy. No. 94, and 1 acre 27 guntas in Revenue Sy.No. 95, totaling 4 acres and 15 guntas, were acquired under the provisions of the Requisitioning and Acquisition of Immovable Property Act, 1952 by the Central Government. The Form 'J' Notification was published on 22.07.1971. The Competent Authority, viz., the Collector, Hyderabad, offered Rs.39,930/- as compensation in respect of 4 acres 15 guntas, by fixing the rate at Rs.2/- per sq. yard. Further, the Collector also granted interest at 4% p.a. from the date of publication of 'J' Notice to the date of payment; an amount of Rs.45,295.90 was deposited by SDC, LA (Defence) in the Court, vide letter dated 03.02.1975. 2 Dissatisfied with the said compensation, the Respondents thereafter requested for the appointment of a Statutory Arbitrator. The Government appointed the Arbitrator on 21.10.1980, with a direction to him to dispose of the matter within four months. As the sole Arbitrator was unable to dispose of the matter within the prescribed period, the Government once again appointed an Arbitrator on 11.11.1999 to complete the exercise. The Arbitrator enhanced the compensation from Rs.2/- per sq. yard to Rs.6/- per sq. yard along with solatium of 30% and interest at 9% p.a. from the date of taking possession of the acquired land, i.e., 28.07.1970, up till the date of payment. The Arbitrator recorded in his Award that after the failure of the first Arbitrator to dispose of the matter within a period of four months, the Government took 19 years to appoint another Arbitrator. The Arbitrator observed: "it is no doubt true that the matter was stayed by the Hon'ble High Court for some years on account of proceedings initiated by the claimants 1 and 2 herein. But, even after the above aspect is taken into consideration, it is very clear that the Government is not diligent in prosecuting the matter". The fact of undue delay in the institution of arbitral proceedings having been determined, the Arbitrator applied the principle enunciated in Union of India v. Hari Krishan Khosla (1993) Supp. 2 SCC 149, whereto we shall advert shortly, and awarded the aforesaid payment of solatium and interest.

3 Dissatisfied with the Award, the Respondents filed an appeal before the High Court; Cross Objections were preferred by the Appellant. The High Court allowed the Respondents' Appeal while dismissing the Cross Objections of the Appellant and enhanced the compensation from Rs.6/- per sq. yard to Rs.12/- per sq. yard and upheld the Arbitrator's Award granting solatium of 30% and interest at 9%. The High Court also placed reliance on this Court's judgment in Hari Krishna Khosla.

7 Appeal is dismissed. Since this Appeal stood covered on all fours, the Appellant shall pay costs to the Respondents.