COL. SIR HARINDER SINGH BRAR BANS BAHADUR versus BIHARI LAL AND ORS. ETC.

Citation: [1994] 3 S.C.R. 87 · Decided: 18-03-1994 · Supreme Court of India · Bench: K. RAMASWAMY · Disposal: Dismissed

Judgment (excerpt)

COL. SIR HARINDER SINGH BRAR BANS BAHADUR 
A 
v. 
BIHARI LAL AND ORS. ETC. 
MARCH 18, 1994 
[K. RAMASWAMY AND N. YENKATACHALA, JJ.] 
Punjab Security of Land Tenures Act, 1953-Sections 18, 
18(4)--Tenanted lancf-lnterest of Land Owne1~Subsequent to deposit of 
purchase p1ice or first instalment by the tenant-Held: Tenant becomes 
deemed owner and the landlord ceases to have any interest in the lan~nless 
the deposit stayed by competent auth01ity or Court. 
Punjab Security of Land Tenures Act, 1953-Section 18(4)(c)-Legis-
lative intendment-Held: Not to postpone the right of the tenant to become 
the owner of the land comprised in his tenancy. 
Section 18(2)(3}-Expression market value and statutory value of the 
land-Difference between. 
Land Acquisition Act, 1894 (as existing prior to the amended Act 
1984~Sections 4(1), 17(i), II, 16, 18 and 31(2) Proviso J-Tenanted land 
worth purchase by tenant under Tenures Act-Compensation fol"-Entitlement 
of Landowner prior to tenant becoming deemed ownel"-Held: entitlement to 
claim is limited to the nature of interest in land, hence Landowner entitled 
to market value with solatium and interest thereon lilnited to the aniount vf 
purchase price and not to damages-Entitlement of Landowner subsequent 
B 
c 
D 
E 
to tenant's becoming deemed owner--Held: Landlord having no interest in 
F 
land, not entitled to any compensation-Therefore the Landowner liable to 
pay the amount of compensation to tenant. 
Respondent a tenant of 246 kanals 18 Marlas of land got right to 
purchase the tenanted land from the Landowner (Appellant) u/s 18 of G 
Punjab Security of Land Tenures Act, 1953. He made application for 
purchase. The tenant's right to purchase the land was recorgnized on 
March 3, 1963 and the tenant deposited the first instalment of the pur-
chase price within time on March 12, 1963 and thus became deemed owner. 
In the meanwhile on August 3, 1961 i.e. before the tenant becoming H 
87 
88 
SUPREME COURT REPORTS 
[1994] 3 S.C.R. 
A deemed owner, 25 kanals 2 Marlas land out of the purchased land was 
acquired under Land Acquisition Act 1894. Compensation for the acquired 
land was determined and the whole amount was paid to the tenant. 
B 
The landowner claimed the compensation amount and appealed to 
Addi. District Judge who held that landlord alone was entitled to the whole 
compensation amount because the land was acquired before the tenant 
could become its deemed owner. Against the Judgment, tenant appealed to 
the High Court. The Single Judge partly allowing the appeal, apportioned 
the compensation amount between the landowner and the tenant in the 
ratio of 3:1, relying on Section 18(3) of Tenure Act which determined 
C interest of the landowner and tenant fixed at three-fourth and one-fourth 
of the value of the land u/s 18(2). In the LPA filed by the tenant, the 
Division Bench held the entitlement of the landowner to the compensation 
amount as purchase price by the tenant. 
Subsequent to tenant's becoming the deemed owner, 151 Kanals 2 
D marlas of the land out of the purchased land was again acquired under 
L.A. Act in 1968 and compensation thereof, in its entirety was paid to the 
landowner. 
On reference for enhanced compensation and on dispute as to 
E whether the tenant or the landlord was entitled for compensation amounts, 
the Addi. District Judge, held that as the tenant had become the deemed 
owner on 12.3.1963 after payment of the first instalment, was entitled to 
the whole amount of the compensation. Landowner preferred appeal 
before the High Court which was dismissed. 
F 
C.A. No. 540/1980 is with regard to the land acquired in 1961 and 
C.A. No. 3288/1979 is regarding land acquisition in 1968. In the appeals 
questions for consideration before the court were : 
(i) Whether the landowner of the land, which could be purchased by 
G a tenant u/s 18 of Tenure Act, ceases to have any interest in the land after 
depositing of the purchase price or the first instalment thereof under 
Section 18( 4) by the tenant. 
(ii) Whether a landowner would be entitled to compensation awarded 
for a tenanted land when it is acquired under Land Acquisition Act, before 
H the tenant of such land becomes its deemed owner u/s 18(4) of Tenure Act, 
IIARINDER SINGH i·. BIHARI LAL 
89 
and if so \\'hat can be regarded as his entitlement in the amount of such 
A 
con1pensation. 
The contention of the appellant regarding the first question was that 
the tenant becomes .the deemed o

Excerpt shown. Read the full judgment & AI analysis in Lexace.