JOGINDFR SINGH AND ORS. versus STATE OF PUNJAB AND ANR.

Citation: [1985] 1 S.C.R. 682 · Decided: 29-08-1984 · Supreme Court of India · Bench: R.S. PATHAK · Disposal: Appeal(s) allowed

Cited by 2 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

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JOG!NDFR SINGH AND ORS. 
v. 
STATE OF PUNJAB AND AN'R. 
[R.S. PATHAK AND M.P. THAKKAR, JJ.J 
August 29, 1984 
Land Acquisition Act, 1894-Ss. 28 and 34-Amended by Haryana Art No.8 
of 1967 enhancing rate of interest payable on compensation-Compensation 
fixed by Land Acquisition Officer enhanced by Court-Enhanced rate of interest 
to be paid on amount of enhanced co1npensation from date of possession of /and 
and not from date when co1r1pensation was enhanced by Court. 
The appellants were awarded certain amount of compensation by the Land 
Acquisition Officer which was later enhanced by the District Judge and the 
High Court. On being pointed out that ss. 28 and 34 of the Land Acquisition 
Act had been amended by the Haryana Act No. 8 of 1967 which enhanced the 
rate of interest payable on the amount of compensation from 4 to 6 per cent 
per annum, the High Court awarded interest at the rate of 4 per cent per 
annum on the amount of compensation awarded by the Land Acquisition 
Officer and enhanced by the District Judge from the date possession was taken 
and 6 per cent per annum on the amount of compensation enhanced by it from 
the date of its judgment. In this appeal Hie appellants challenged the rate of 
interest as determined by the High Court. 
Allowiog the appeal, 
HELD : The right to compensation arises when the land is acquired, and 
the judgment of the High Court merely represents a stage in the process of 
quantifying the compensation. The right to compensation and the quantifica. 
tion thereof are two distinct concepts. Although the process of quantification 
may pass though several stages, the process of quantification is merely one of 
computing the value of the land, on the principles enacted in the Land 
Acquisition 
Act. All 
along, however, the right to the compensation so 
quantified refers back to the date of acquisition. The additional amount of 
compensation awarded by the District Judge or by the F.[igh Court represents 
the difference between the true value of the land on the one hand and the 
actual amount awarded on the other which fell short of the true value. The 
owner of the land is entitled to be paid the true value of the land on the date 
of taking over of possession. The fact that the true value is determined later 
does not mean that the right to the aJDount comes into existence at a later 
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JOG!NDER v. PUNJAB (Pathak, J.) 
683 
date. And if, as the High Court has held, interest at 6 per cent per annum 
from the date possession was taken in the case of co1npensation deter~ 
mined by the learned District Judge, there is no reason why the san1e rate 
should not be applied from the date possession was taken in the case of the 
enhancement effected by the High Court. [684H;685 A-DJ 
C1v1L APPEAL Jua1so1cnoN : Civil AppealNo. 2293 of 1978 
From the Order dated 21.4.77 of the Punjab and Haryana 
Higb Court in Civil Misc. No. 508-C-l/77. 
Ram/al for the Appellants. 
The Order of the Court was delivered by 
PATHAK, J. This appeal by special leave is directed against the 
order dated April 21, 1977 of the High Court of Punjab and 
Haryana determining the interest payable on the compensation 
awarded to the appellants for the acquisition of their land by the 
State Government. 
A notification under Section 4 of th" land Acquisition Act was 
made on August 31, 1961 in respect of land belonging to the appel-
lants and in the proceedings which followed the land Acquisition. 
Officer determined a sum of Rs. 27,992.84 as compensation payable 
therefor. Possession of the land was taken thereafter. On reference 
made at the instance of the appellants, the learned District Judge 
held by his judgment dated November 30, 1963 that the appellants 
were entitled to a further sum of Rs. 11,307.10 as compensation. 
Dissatisfied with that determination, the appellants proceeded in 
appeal to the High Court, and on March 8, 1977 the High Court 
held that the appellants were entitled to a furth~r amount of 
Rs. 17,919.30 as compensation. The High Court also held that the 
appellants were entitled to interest at the rate of 4 per cent per 
annum on the enhanced amount of compensation awarded by it, 
the interest to run from the date possession of the land was taken . 
The appellants then applied to the High Court for a review of its 
order in so far as it had determined the rate of interest. The appel-
lants pointed out that s. 28 and s. 34 of the Land 

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