DILAWAR SINGH & ORS. ETC. versus UNION OF INDIA & ORS.
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[2010) 12 S.C.R. 1059 DILAWAR SINGH & ORS. ETC. V. UNION OF INDIA & ORS. (Civil Appeal Nos. 9198-9202 OF 2010) ' OCTOBER 26, 2010 [MARKANDEY KAT JU AND T.S. THAKUR, JJ.] Requisitioning and Acquisition of Immovable Property Act, 1952: Solatium and interest - Acquisition of land under the Act - Delay of 16 years in appointment of arbitrator- Held: Award A B c of solatium and interest is justified as there was an inordinate delay in the appointment of an arbitrator and consequent delay in determination of compensation payable to the land 0 owners. Compensation - Enhancement of - Acquisition of large extent of land situate in the outskirts of Pathankot for defence purposes under the Act - The enhancement of compensation was considered by High Court in a similar case for acquisition E of land arising out of the very same acquisition process - In that case, High Court enhanced the compensation payable to the land-owners to Rs.350/- per maria - The said order was not challenged and attained finality - The lands in question were all acquired for the very same purpose and were situated F on the outskirts of a growing town like Pathankot - The growing rion-agricu/ture potential of such lands was a/so not disputed - Therefore, there was no reason why the amount of compensation payable to the landowners m the instant case should also not be enhanced to Rs. 350/- per maria with G proportionate benefits to1•.tards solatium and interest. A large extent of land situate in the outskirts of Pathankot in the State of Punjab and underlying different 1059 H 1060 SUPREME COURT REPORTS (2010] 12 S.C.R. A survey numbers was acquired for defence purposes under the provisions of Requisitioning and Acquisition of Immovable Property Act, 1952. The parties failed to arrive at an agreement as to the amount of compensation payable to the expropriated owners of the land in B question. The land owners requested for the appointment of an arbitrator for determining the amount payable to them. The Government did not respond to the request. The land owners filed a writ petition seeking a mandamus to the Government to appoint an arbitrator. The High C Court directed the Government to appoint an arbitrator. An arbitrator was appointed 16 years after the acquisition of land. The arbitrator held that the owners were entitled to compensation that ranged between Rs.50 per maria for one batch of appeals to Rs.200 for the other batch of 0 appeals. Solatium @ 30% and interest @ 9% for the first year and 15% for the subsequent years till payment of the amount of compensation was also held payable to the landowners. Both, the Union of India and the land owners, challenged the award made by the arbitrator before the High Court. The plea of the Union of India was E that the arbitrator was not justified in awarding nor was there any provision for granting solatium and interest under the Act. The land-owners prayed for enhancement of compensation payasble to them to Rs.500/- per maria. The High Court dismissed the appeals filed by the Union F of India. The cross-objections filed by the owners were also dismissed by separate orders unsupported by any reasons for denying the enhancement prayed for by them. Relying upon the decision in Jagdish Prasad v. The Competent Authority, the High Court held that award of G compensation @ Rs.150/- per maria was justified on a uniform basis for all kinds of lands. It also held that the award of solatium and interest was justified having regard to the delay on the part of the government in H DILAWAR SINGH & ORS. ETC. v. UNION OF INDIA &1061 ORS. appointing an arbitrator. The High Court, however, opined A that instead of describing the amount as solatium and interest, the same should be described as compensation for the acquired lands. Aggrieved, the Union of India and the land owners filed the instant appeals. B Allowing the appeals, the Court HELD: 1. In lnder Singh's case, the High Court upheld the grant of solatium and interest in regard to a similar acquisition made in terms of a notification issued in January 1970. While doing so, the High Court relied upon C its decision in Shanker Singh's case. The decision in lnder Singh's case and Shanker Singh's case was not challenged by filing any appeal. In that view of the matter and having regard to the fact that there was an inordinate delay of 16 years in the appointment of an arbitrat
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