{"id":179266,"date":"1995-11-09T00:00:00","date_gmt":"1995-11-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/union-of-india-ors-vs-munsha-ors-on-9-november-1995"},"modified":"2015-07-26T14:04:53","modified_gmt":"2015-07-26T08:34:53","slug":"union-of-india-ors-vs-munsha-ors-on-9-november-1995","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/union-of-india-ors-vs-munsha-ors-on-9-november-1995","title":{"rendered":"Union Of India &amp; Ors vs Munsha &amp; Ors on 9 November, 1995"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Union Of India &amp; Ors vs Munsha &amp; Ors on 9 November, 1995<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1995 SCC,   Supl.  (4) 660 JT 1995 (8)\t289<\/div>\n<div class=\"doc_author\">Author: K Ramaswamy<\/div>\n<div class=\"doc_bench\">Bench: Ramaswamy, K.<\/div>\n<pre>           PETITIONER:\nUNION OF INDIA &amp; ORS.\n\n\tVs.\n\nRESPONDENT:\nMUNSHA &amp; ORS.\n\nDATE OF JUDGMENT09\/11\/1995\n\nBENCH:\nRAMASWAMY, K.\nBENCH:\nRAMASWAMY, K.\nHANSARIA B.L. (J)\n\nCITATION:\n 1995 SCC  Supl.  (4) 660 JT 1995 (8)\t289\n 1995 SCALE  (6)353\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<br \/>\nRamaswamay, J.\n<\/p>\n<p>     Leave granted.\n<\/p>\n<p>     This appeal  by special  leave arises from the judgment<br \/>\nand order  dated March\t5, 1993\t passed in  C.W.P. No.316 of<br \/>\n1993 by\t the High  Court of  Punjab &amp; Haryana at Chandigarh.<br \/>\nThe competent  authority, viz., the Special Land Acquisition<br \/>\nCollector made\tan award  under Section 8 of the Requisition<br \/>\nand Acquisition\t of Immovable Property Act, 1952 [for short,<br \/>\n&#8220;the Act&#8221;]  and awarded\t compensation @\t Rs.375\/- per kanal.<br \/>\nThis was  done as  early as  in 1970.  In 1986,\t Civil\tWrit<br \/>\nPetition No.2391  of 1986  was filed  by the respondents for<br \/>\nappointment of\tan arbitrator.\tThe High  Court allowed\t the<br \/>\nwrite petition\ton July 28, 1986 and directed the appellants<br \/>\nto appoint  an arbitrator. The arbitrator thus appointed, by<br \/>\nhis award  dated December 12, 1991 determined compensation @<br \/>\nRs.150\/- per  marla. He\t also awarded  solatium\t @  30%\t and<br \/>\ninterest @ 9% per annum for one year and on expiry thereof @<br \/>\n15% on\tthe enhanced  compensation. Aggrieved  by  the\tsaid<br \/>\nawarded, the  appellants filed\tan appeal  in the High Court<br \/>\nwhich was  dismissed on\t May  20,  1992.  A  Letters  Patent<br \/>\nAppeal, viz.,  392 of 1992, was filed against the said order<br \/>\nof the\tlearned single\tJudge and the same is pending in the<br \/>\nHigh Court.  Since the\trespondents challenged\tthe award in<br \/>\nquestion, the  appellants sought  for stay  and the stay was<br \/>\nrefused. The High Court directed by the impugned order dated<br \/>\nMarch 5,  1993 to  release the\tpayment of  the compensation<br \/>\nforthwith in  lieu  of\tthe  land  acquired  by\t it  in\t any<br \/>\nappropriate proceedings.  Feeling  aggrieved  thereby,\tthis<br \/>\nappeal by special leave has been filed.\n<\/p>\n<p>     It is  contended for the respondents that on failure to<br \/>\naccept the  offer of  payment of  compensation determined by<br \/>\nthe competent  authority, viz., the Special Land Acquisition<br \/>\nCollector, though  the respondents  had not  communicated in<br \/>\nwriting their  refusal to accept the award, on expiry of the<br \/>\nprescribed  period,   a\t duty  was  cast  on  the  competent<br \/>\nauthority  and\t the  Central\tGovernment  to\t appoint  an<br \/>\narbitrator. Since  arbitrator was not appointed for no fault<br \/>\non their  part, the appellants are enjoined to make good the<br \/>\nloss by\t paying interest.  Therefore, the appellants are not<br \/>\nrelieved from  paying interest,\t as this  Court in  <a href=\"\/doc\/187998380\/\">Union of<br \/>\nIndia v.  Hari Krishan\tKhosla<\/a> [(1993)\tSupp.  2  SCC  149],<br \/>\ndespite holding\t that law  has conferred  no  power  on\t the<br \/>\narbitrator to  award solatium  and interest on the amount of<br \/>\ncompensation determined\t under Section\t8 of  the  Act,\t had<br \/>\nupheld in  paragraph 79\t [page 172]  on the  facts  of\tsome<br \/>\nappeals, award\tof solatium and interest, as there was delay<br \/>\nin appointment of arbitrator, which was of 16 years in those<br \/>\nappeals. The dely here also was of 16 years.\n<\/p>\n<p>     The question,  therefore, is whether the appellants are<br \/>\nliable to  pay interest\t to the respondents for the delay in<br \/>\nappointment  of\t  arbitrator.  Section\t8  [1]\tof  the\t Act<br \/>\nenvisages  that\t where\tany  property  is  requisitioned  or<br \/>\nacquired under the Act, there shall be paid compensation the<br \/>\namount of  which shall\tbe  determined\tin  the\t manner\t and<br \/>\naccording to the principles set out thereunder. Manners laid<br \/>\ndown  are   two:  (i)\tfixation  by   agreement;  and\t(ii)<br \/>\ndetermination by  arbitrator to\t be appointed by the Central<br \/>\nGovernment where  no agreement\tcan be reached. Section 9 of<br \/>\nthe Act\t enjoins payment of amount of compensation under the<br \/>\naward subject to any rules made under the Act. The competent<br \/>\nauthority is,  therefor,  enjoined  to\tpay  the  amount  of<br \/>\ncompensation to\t the person  or persons\t entitled thereto in<br \/>\nsuch manner  and within such time as may be specified in the<br \/>\naward.\tUnder\tsub-rule  [3]\tof  Rule  9,  the  competent<br \/>\nauthority, viz.,  the Land  Acquisition officer is enjoined,<br \/>\nas soon\t as may\t be  practicable,  to  communicate  to\teach<br \/>\ninterest person\t an offer,  which is fair in his opinion, of<br \/>\namount of  compensation payable to such person in respect of<br \/>\nthe acquired property. Under sub-rule [5] (i), when an offer<br \/>\nis made\t to such  person, he  shall within  15 days  of\t the<br \/>\nreceipt\t of   the  offer,  communicate\tin  writing  to\t the<br \/>\ncompetent authority  his  acceptance  or  otherwise  of\t the<br \/>\noffer. If  he accepts  the offer,  the\tcompetent  authority<br \/>\nshould enter  into an  agreement with  him on  behalf of the<br \/>\nCentral Government in Form K. Clause (ii) of sub-rule [5] is<br \/>\nnot material  and hence\t omitted. Under sub-rule [6], if the<br \/>\nperson to  whom an  offer is made, does not accept the offer<br \/>\nor does not communicate within 15 days of the receipt of the<br \/>\noffer, in  writing to the competent authority his acceptance<br \/>\nor otherwise  of the  offer, the competent authority should,<br \/>\nas soon as may be, submit to the Central Government a report<br \/>\nsetting forth  the full\t facts of  the case, particularly as<br \/>\nregards the  nature and\t extent of  the disagreement between<br \/>\nhimself on  the one  hand and  the interested  person on the<br \/>\nother, and  he should  forward with the report all connected<br \/>\npapers. The  competent authority  should at  the  same\ttime<br \/>\ndeposit in  court the  amount offered  by him  to  the\tsaid<br \/>\nperson under sub-rule [3].\n<\/p>\n<p>     Reading of\t these rules do indicate that after an award<br \/>\nhas been  made,\t the  competent\t authority  is\tenjoined  to<br \/>\ncommunicate its\t offer in  writing to the person interested.<br \/>\nSuch interested\t person is  also enjoined, emphasised by the<br \/>\nuse of\tthe word  `shall&#8217;, to communicate, within 15 days of<br \/>\nthe receipt  of the  offer,  in\t writing  to  the  competent<br \/>\nauthority &#8220;his\tacceptance or otherwise of the offer&#8221;. If he<br \/>\naccepts\t the  offer,  the  competent  authority\t is  further<br \/>\nenjoined to  enter into\t an  agreement,\t on  behalf  of\t the<br \/>\nCentral Government,  with him  in Form\tK  and\tto  pay\t the<br \/>\ncompensation awarded  by him.  If the interested person does<br \/>\nnot accept the offer, nor communicates within 15 days of the<br \/>\nreceipt of  the offer, in writing to the competent authority<br \/>\nhis acceptance\tor otherwise  of the  offer,  the  competent<br \/>\nauthority is  enjoined to submit to the Central Government a<br \/>\nreport setting\tforth the  full\t facts,\t in  particular\t the<br \/>\nnature and  extent of  the disagreement\t between himself and<br \/>\nthe interested\tperson, and  should forward  with the report<br \/>\nall connected  papers to  the Central  Govenment. He is also<br \/>\nenjoined to  deposit in\t the court the amount offered by him<br \/>\nto the interested person.\n<\/p>\n<p>     Thus, it  may be  seen that  the interested  person  is<br \/>\nenjoined to  communicate within 15 days from the date of the<br \/>\nreceipt of  the acceptance  or otherwise  in writing  of the<br \/>\noffer made  by the  competent authority.  The ratio  in Smt.<br \/>\nSeeto Devi  &amp; Ors.  etc. etc. v. Union of India &amp; Ors. [C.A.<br \/>\narising out of S.L.P. Nos. 7411 of 1995 etc. decided on July<br \/>\n28, 1995]  on which  reliance was  placed by the counsel for<br \/>\nthe respondents\t has no\t application to\t the facts  of\tthis<br \/>\ncase. Therein, it was found by this Court that &#8220;in fact. the<br \/>\ncase of\t the appellants is that they had accepted the amount<br \/>\nsent to\t them under  protest to which there is no demur and,<br \/>\ntherefore, they\t did not  sign the agreement in Form K which<br \/>\nwas sent  to them.&#8221;  In those  circumstances, this Court had<br \/>\nheld that the competent authority and the Central Government<br \/>\nought  to   have  appointed  arbitrataor  to  determine\t the<br \/>\ncompensation  payable\tto  the\t claimants.  In\t this  case,<br \/>\nhowever,   since   admittedly\tthe   appellants   had\t not<br \/>\ncommunicated their acceptance or otherwise of the offer made<br \/>\nby the\tcompetent authority, there was no duty cast on it to<br \/>\nappoint\t arbitrator  under  s.\t8(1)  (b)  of  the  Act.  In<br \/>\nparagrapah 79  of the decision in Hari Krishan Khosla&#8217;s case<br \/>\n[supra], this  Court considered\t the  observations  made  in<br \/>\n<a href=\"\/doc\/561342\/\">Harbans Singh  Shanni Devi v. Union of India<\/a> [C.A. Nos. 470-<br \/>\n71 of 1985 decided on February 11, 1985].\n<\/p>\n<p>     What was  stated in  Hari Krishan\tKhosla&#8217;s case cannot<br \/>\nassist the  respondents because\t the general  ratio laid  in<br \/>\nthat case,  viz., the  provisions of the Land Acquistion Act<br \/>\nhave no application to the acquisition under the Act and the<br \/>\npayment of  solatium and  interest cannot  be fastened since<br \/>\nthe Act\t did  not  provided  for  payment  of  interest\t and<br \/>\nsolatium, squarely  applies to\tthe facts  in this case, for<br \/>\nthe reason  that there\twas no\tlaches on  the part  of\t the<br \/>\nappellants in  appointing arbitrator,  which was  assumed in<br \/>\nHari Krishan  Khosla&#8217;s case.  We have said about there being<br \/>\nno laches  in appointment  of arbitrator in the case at hand<br \/>\nas the\tobligation to  appoint arbitrator  arises where\t the<br \/>\ninterested person  communicates his  non-acceptance  of\t the<br \/>\noffer  enjoined\t  by  sub-rule\t (5)  (i)  of  Rule  9.\t The<br \/>\nrequirement of\tsub-rule (6)  to  submit  a  report  to\t the<br \/>\nCentral Government  where the  person to whom offer has been<br \/>\nmade does not communicate within 15 days, cannot be regarded<br \/>\nas requiring the Central Government to appoint arbitrator on<br \/>\nknowing about the fact of noncommunication of the interested<br \/>\nperson. According to us, something more is needed to require<br \/>\nappointment of\tarbitrator  &#8211;  the  interested\tperson\tmust<br \/>\ncommunicate about  his nonacceptance of the offer, which was<br \/>\nnot done  here in  the case at hand. In Hari Shankar Kosla&#8217;s<br \/>\ncase this  Court had  assumed laches  on  the  part  of\t the<br \/>\nCentral Government  due to  delay of 16 years in appointment<br \/>\nof arbitrator. We would not draw such a presumption here.\n<\/p>\n<p>     Since the\tdetermination of  the  compensation  by\t the<br \/>\narbitrator is  subject matter  of the Letters Patent Appeal,<br \/>\nwe decline  to go into the merits. However, the award of the<br \/>\narbitrator awarding solatium @ 30% and interest @ 9% for one<br \/>\nyear  from   the  dated\t of  taking  possession\t and  @\t 15%<br \/>\nthereafter till\t the date  of deposit,\tstands set aside. In<br \/>\nother respects, we express no opinion.\n<\/p>\n<p>     The  appeal   is  accordingly   allowed  but,   in\t the<br \/>\ncircumstances, with no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Union Of India &amp; Ors vs Munsha &amp; Ors on 9 November, 1995 Equivalent citations: 1995 SCC, Supl. (4) 660 JT 1995 (8) 289 Author: K Ramaswamy Bench: Ramaswamy, K. PETITIONER: UNION OF INDIA &amp; ORS. Vs. RESPONDENT: MUNSHA &amp; ORS. DATE OF JUDGMENT09\/11\/1995 BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. HANSARIA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-179266","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Union Of India &amp; Ors vs Munsha &amp; Ors on 9 November, 1995 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/union-of-india-ors-vs-munsha-ors-on-9-november-1995\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Union Of India &amp; 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