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K.S. P ARIPOORNAN versus STATE OF KERALA AND OTHERS

Citation: [1994] SUPP. 3 S.C.R. 405 · Decided: 12-09-1994 · Supreme Court of India · Bench: M.N. VENKATACHALIAH · Disposal: Disposed off

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Judgment (excerpt)

K.S. P ARIPOORNAN 
v. 
STATE OF KERALA AND OTHERS 
SEPTEMBER 12, 1994 
[M.N. VENKATACHALIAH C.J., P.B. SAWANT, S.C. AGRAWAL, 
R.M. SAHAI AND S.P. BHARUCHA, JJ.] 
A 
B 
Land Acquisition Act, 1894 (as amended in 1984)-S.23( 1-A)-Land 
Acquisition (Amendment) Act, 1984-S.30(1)-Award of additional amount 
payable under s.23( 1-A) in pending proceedings before the reference C 
court--H eld, (per majority) S.23 ( 1-A) confers substantive right to additional 
amount, and is prospective-Reference court may not award additional 
amount in pending proceedings except to the extent provided in S.30( 1) of the 
amending Act-Transitional provisions in amending Act, held, is integral part 
of amended provisions-Zora Singh, held, reversed-Transitional Provisions--: D 
Prospectivity. 
Interpretation of Statutes:-Retrospectivity-Land Acquisition Act, 
1894-S.23(1-A)-Land Acquisition (Amendment) Act, 1984-S.30(1)-
Held, (per majority) statute is retrospective if it operates on cases or facts 
coming into existence before its commencement, and affects, even if for future E 
only, past transactions or other conduct-Held further, statute dealing with 
substantive rights is prima facie prospective unless it expressly or by necessary 
implication has retrospective effect-S.23(1-A), held, is prospective, and does 
not apply to pending proceedings except to extent provided by the statute. 
Interpretation of Statutes-Extrinsic aids-Statement of Objects and F 
Reasons and speeches in Parliament-Held, (per majority) cannot be used as 
aids to constrnction of statute. 
Constitution of India-Article 14-Land Acquisition Act, 1894-S.23( 1-
A)-Land Acquisition (Amendment) Act, 1984-S.30(1)-Limited retrospec-
G 
tivity--Provisions having effect from date of-original Bill being introduced in 
Lok Sabha-Held, not arbitrary-Constitutionality upheld-Interpretation of 
Statutes. 
Constitution of India-Article 31A(1) Proviso-Land Acquisition Act, 
1894 (as amended in 1984)-S.23 (1-A)-Land Acquisition (Amendment) H 
405 
406 
/ 
SUPREME COURT REPORTS [1994) SUPP. 3 S.C.R. 
A Act, 1984-S.30(1)-Held, (per majority) object of Article 31 A is to facilitate 
agrarian reforms-l'rincipal law not relating to agrarian reform, Article 31A 
has no bearing on· the provisions of the Land Acquisition Act, 1894 and the 
Land Acquisition (Amendment) Act, 1984. 
In Union of India v.Zora Singh, [1992) 1 SCC 673 decided by a three 
B Judge Bench, it was held that the payment of additional amount @12% per 
annum on the market value under s.23(1·A) of the Land Acquisition Act 
1894 ('Act'); inserted by the Land Acquisition (Amendment) Act 1984 
('amending Act') is to be ordered in every case where reference was pending 
before the reference court on the date of commencement of the amending 
C Act even· though the award of the Collector was made prior to April 30, 
1982. The correctness of this view was doubted by a two Judge bench and 
the matter was referred to a larger bench, for considering the correctness 
of the decision in Zora Singh Case.The question referred for examination 
by the larger bench was whether the additional amount payable @12% per 
D annum on the market value under s.23(1·A) is restricted to matters 
referred to in s.30(1)(a) and (b) of the amending Act or is to be awarded 
in every case where the reference .was pending before the reference court • 
on September 24, 1984 (the date of commencement of the amending Act) 
irrespective of the date on which the award was made by the Collector. 
E 
While urging that Zora Singh lays down the correct law, it was inter 
alia contended for the claimants that S.23(1~A) does not involve giving 
retrospective effect only because a part of the requisites for its action is 
drawn from events antecedent to its passing; that the language used in 
S.23(1·A) being clear, its scope cannot be limited by the Transitional 
F 
Provisions in s.30(1) of the amending Act; that where a reference has been 
made under the Act, the acquisition proceedings do not terminate with 
the making of the award by the Collector; and the object of the amending 
Act shows that it was Parliament's intention to remove the hardship 
caused by pendency of acquisition proceedings for long periods rendering 
~e scale of compensation to be unrealistic. 
G 
For the Union of India and the States it was contended that since 
the insertion of S.23(1·A) imposes an ad«!itional amount by way of com· 
pensation, it can only apply to proceedings for acquisition init

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