{"id":99013,"date":"2009-12-03T00:00:00","date_gmt":"2009-12-02T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/union-of-india-and-another-vs-paras-ram-and-others-on-3-december-2009"},"modified":"2017-10-09T17:14:43","modified_gmt":"2017-10-09T11:44:43","slug":"union-of-india-and-another-vs-paras-ram-and-others-on-3-december-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/union-of-india-and-another-vs-paras-ram-and-others-on-3-december-2009","title":{"rendered":"Union Of India And Another vs Paras Ram And Others on 3 December, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Punjab-Haryana High Court<\/div>\n<div class=\"doc_title\">Union Of India And Another vs Paras Ram And Others on 3 December, 2009<\/div>\n<pre>FAO No. 303 of 1989                                     [1]\n\n                IN THE HIGH COURT OF PUNJAB AND HARYANA\n                         AT CHANDIGARH\n\n\n\n                                Date of decision: 3.12.2009\n\n(1)    FAO No. 303 of 1989 (O&amp;M)\n\nUnion of India and another                         .. Appellants.\n\n               v.\n\nParas Ram and others                               .. Respondents.<\/pre>\n<pre>(2)    FAO No. 304 of 1989\n       and Cross Objections No. 71-CII of 1989 (O&amp;M)\n\nUnion of India and another                         .. Appellants.\n\n               v.\n\nKaushalaya and others                              .. Respondents\n\n\n(3)    FAO No. 305 of 1989 (O&amp;M)\n\nUnion of India and another                         .. Appellants.\n\n               v.\n\nPritam and another `                               .. Respondents\n\n(4)    FAO No. 442 of 1989 (O&amp;M)\n\nPritam Dass (Deceased) through LRs                 .. Appellants\n\n               v.\n\nUnion of India and others                          .. Respondents\n\n(5)    FAO No. 443 of 1989 (O&amp;M)\n\nPritam (Deceased) through LRs                      .. Appellants\n\n               v.\n\nUnion of India and others                          .. Respondents.\n\n(6)    FAO No. 444 of 1989 (O&amp;M)\n\nParas Ram and others                               .. Appellants\n            v.\n\nUnion of India and others                          .. Respondents.\n FAO No. 303 of 1989                                           [2]\n\nCORAM:         HON'BLE MR. JUSTICE RAJESH BINDAL\n\nPresent:       Mr. Rajiv Sharma, Advocate for Union of India.\n\n               Mr. Talwinder Singh, Advocate for\n<\/pre>\n<p>               Mr. Hemant Saini, Advocate for the land owners.\n<\/p>\n<p>Rajesh Bindal J.\n<\/p>\n<p>               This order will dispose of above mentioned appeals and cross<br \/>\nobjections, as the same arise out of a common award of the Arbitrator.\n<\/p>\n<p>               FAO Nos. 303 to 305 of 1989 have been filed by Union of India<br \/>\npraying for setting aside of the award of the Arbitrator, whereby interest and<br \/>\nsolatium has been awarded to the land owners.\n<\/p>\n<p>               FAO Nos. 442 to 444 of 1989 and Cross Objections No. 71-CII of<br \/>\n1989 have been filed by the land owners claiming enhancement of compensation<br \/>\nawarded by the Arbitrator.\n<\/p>\n<p>               However, the facts have been extracted from FAO No. 303 of 1989.<br \/>\n               Briefly, the facts of the case are that total land measuring 100 kanals<br \/>\nand 10 marlas, situated in the revenue estate of Bhadroya was acquired by Union<br \/>\nof India for defence purposes vide notification dated 28.2.1970, issued under<br \/>\nSection 7(1) of the Requisitioning and Acquisition of Immoveable Property Act,<br \/>\n1952 (for short, `the Act&#8217;). Since the compensation awarded by Union of India was<br \/>\nnot acceptable to the land owners, they sought appointment of an Arbitrator under<br \/>\nSection 8 of the Act. Vide notification dated 3.3.1988, Additional District Judge,<br \/>\nGurdaspur was appointed as Arbitrator for determination of the compensation<br \/>\npayable to the land owners.         The Arbitrator, vide award dated 20.1.1989,<br \/>\ndetermined compensation to the land owners for the acquired land at uniform rate<br \/>\nof Rs. 350\/- per mala. The land owners were also held entitled to receive solatium<br \/>\n@ 30% and interest @ 9% per annum for the first year and 15% per annum for the<br \/>\nsubsequent years.\n<\/p>\n<p>               The only issue raised by learned counsel for Union of India in the<br \/>\nbunch of appeals is that for the acquisition carried under the Act, the land owners<br \/>\nare not entitled to the grant of interest and solatium, as there is no provision for the<br \/>\nsame under the Act. Reliance was placed upon a judgment of Hon&#8217;ble the Supreme<br \/>\nCourt in <a href=\"\/doc\/446973\/\">Union of India v. Parmal Singh and others<\/a>, (2009) 1 SCC 618 and this<br \/>\nCourt in <a href=\"\/doc\/172354245\/\">Smt. Lalita Pathania and others v. Randip Singh Pathania and others<\/a>,<br \/>\n(2009-3) PLR 680.\n<\/p>\n<p>               On the other hand, learned counsel for the land owners submitted<br \/>\nthat in terms of the judgment of this Court in Smt. Lalita Pathania&#8217;s case (supra),<br \/>\n FAO No. 303 of 1989                                           [3]<\/p>\n<p>the land owners herein are entitled to interest @ 6% per annum on equitable<br \/>\ngrounds, considering the fact that there is abnormal delay in conclusion of<br \/>\nproceedings for determination of compensation as the land was acquired way back<br \/>\nin the year 1970, whereas the Arbitrator was appointed in the year 1988.\n<\/p>\n<p>               Heard learned counsel for the parties and perused the paper book.<br \/>\n               As far as the legal position regarding entitlement of the land owners<br \/>\nto the payment of interest and solatium on the amount of compensation for the land<br \/>\nacquired under the Act is concerned, the issue is no more res integra. It has been<br \/>\nauthoritatively considered by Hon&#8217;ble the Supreme Court in <a href=\"\/doc\/1476587\/\">Union of India v. Hari<br \/>\nKrishan Khosla (Dead)<\/a> by LRs, 1993 Supp. (2) SCC 149 that there being no<br \/>\nprovision providing for interest and solatium on the amount of compensation in<br \/>\nthe Act, the land owners are not entitled to the same. The issue thereafter was<br \/>\nconsidered by this Court in Smt. Lalita Pathania&#8217;s case (supra), wherein after<br \/>\nconsidering the law on the subject, it was opined as under:\n<\/p>\n<blockquote><p>               &#8221; After giving my thoughtful consideration to the arguments raised<br \/>\n               by learned counsel for the parties, I am of the view that the appeals<br \/>\n               filed by the Union of India deserves to be allowed. No doubt, that at<br \/>\n               the time of passing of the order by the Arbitrator when he awarded<br \/>\n               solatium @ 15% per annum and interest @ 6% per annum, the law<br \/>\n               laid down by the Full Bench in the case of Hari Krishan Khosla<br \/>\n               (Dead) and others (supra) was holding the field as the order passed<br \/>\n               by the Arbitrator is of 29.9.1989. However, the said judgment of the<br \/>\n               Full Bench has now been over-ruled by the Supreme Court in the<br \/>\n               case of <a href=\"\/doc\/1476587\/\">Union of India v. Hari Krishan Khosla (Dead)<\/a> by LRs (supra)<br \/>\n               and the fact that there is no provisions in the statute for the award of<br \/>\n               solatium and interest, the claimants are not entitled to solatium and<br \/>\n               interest at all.&#8221;<\/p><\/blockquote>\n<p>               It was further opined in the aforesaid judgment that on equitable<br \/>\nconsideration, the land owners would be entitled to interest on the amount of<br \/>\ncompensation @ 6% per annum. Paragraph 23 of the judgment is extracted below:\n<\/p>\n<blockquote><p>               &#8220;It was also held that the property was acquired in the year 1965 and<br \/>\n               more than four decades have elapsed whereas the land owners are<br \/>\n               yet to get compensation in entirety. In these circumstances, the<br \/>\n               Supreme Court upheld the award of interest at the rate of 6% per<br \/>\n               annum on the compensation amount on equitable grounds. Thus,<br \/>\n               taking into consideration the totality of circumstances, FAO Nos.<\/p><\/blockquote>\n<p>               1319 and 1320 of 1989 filed by the claimants\/land owners against<br \/>\n FAO No. 303 of 1989                                          [4]<\/p>\n<p>               the award of the Arbitrator on issue No. 3 are allowed and the<br \/>\n               finding recorded thereunder is hereby reversed. FAO Nos. 1346 and<br \/>\n               1347 of 1989 filed by Union of India against issue No. 6 are allowed<br \/>\n               only to the extent that the appellants shall not be entitled to any<br \/>\n               solatium as it is not provided in the Statute. However, since the<br \/>\n               possession of the land in question was taken by Union of India in the<br \/>\n               year 1964 and the arbitrator was appointed in the year 1986, the<br \/>\n               claimants are held entitled to interest at the rate of 6% per annum on<br \/>\n               equitable grounds in terms of the decision of the Supreme Court in<br \/>\n               the case of <a href=\"\/doc\/446973\/\">Union of India v. Parmal Singh<\/a> (supra), from the date of<br \/>\n               acquisition till date of payment\/deposit. However, in the facts and<br \/>\n               circumstances of these cases, the parties shall bear their own costs.&#8221;<br \/>\n               However, still considering the fact that the land in question was<br \/>\nacquired way back in the year 1970. The amount of compensation, as has been<br \/>\ndetermined payable in the award by the Arbitrator is merely Rs. 350\/- per marla.<br \/>\nThe amount of compensation as well as the interest and solatium has already been<br \/>\npaid to the land owners long back, however, the same would be refundable to<br \/>\nUnion of India, if calculated in terms of the aforesaid judgment, considering the<br \/>\nfact that the land owners are not entitled to solatium and interest at the rates<br \/>\nprovided for under the Land Acquisition Act, 1894 but only at 6% per annum.<br \/>\nBut the amount if calculated in terms of individual holdings of land owners would<br \/>\nbe quite meager. Therefore, while accepting the appeals filed by Union of India<br \/>\ntechnically on the legal issues and disposing of the same in terms of the judgment<br \/>\nof this Court in Smt. Lalita Pathania&#8217;s case (supra), it is directed that the amount<br \/>\non account of interest and solatium already paid to the land owners in the present<br \/>\ncases shall not be recovered from them.\n<\/p>\n<p>               As far as the claim of the land owners in one of the appeal and the<br \/>\ncross objections filed by them for further enhancement of compensation is<br \/>\nconcerned, suffice to state that the same is totally misconceived as the<br \/>\ncompensation has been determined in terms of earlier judgment of this Court, as<br \/>\nhas been recorded in para 10 of the award. Hence, the same are rejected.\n<\/p>\n<p>               The appeals as well as cross objections stand disposed of in the<br \/>\naforesaid terms.\n<\/p>\n<p>                                                                   (Rajesh Bindal)<br \/>\n                                                                          Judge<br \/>\n3.12.2009<br \/>\nmk\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Punjab-Haryana High Court Union Of India And Another vs Paras Ram And Others on 3 December, 2009 FAO No. 303 of 1989 [1] IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of decision: 3.12.2009 (1) FAO No. 303 of 1989 (O&amp;M) Union of India and another .. Appellants. v. Paras Ram and [&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":[8,28],"tags":[],"class_list":["post-99013","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"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 And Another vs Paras Ram And Others on 3 December, 2009 - 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-and-another-vs-paras-ram-and-others-on-3-december-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Union Of India And Another vs Paras Ram And Others on 3 December, 2009 - Free Judgements of Supreme Court &amp; 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