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MADISHETTI BALA RAMUL (D) BY LRS. versus THE LAND ACQUISITION OFFICER

Citation: [2007] 7 S.C.R. 222 · Decided: 17-05-2007 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Case Partly allowed

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Judgment (excerpt)

A 
MADISHETTI BALA RAMUL (D) BY LRS. 
v. 
THE LAND ACQUISITION OFFICER 
MAY 17,2007 
B 
[S.B. SINHA AND MARKANDEY KA TIU, JJ.] 
Land Acquisition Act, 1894: 
ss. 23 and 34-Compensatio"n-Additional market value-Grant of-
C Notification published on l 6-3-1979 for_ acquisition of land-Possession 
taken on 18-5-1979-However, notification not given effect-Another 
notification published on 23-12-1991-Award by Land Acquisition Officer-
All statutory benefits granted except additional market value-Reference 
Court awarded compensation, also granted additional market value and 
D interest w.ej 18-5-1979-However, High Court granted additional market 
value and interest w.ej 23-12-1991-Held: High Court may be correct in its ยท 
interpretation, but same would not mean that Appellants-land owners would 
not get anything for being out of possession from I 979 to I 99 I-In interest 
of justice, Appellants granted additional interest @ l 5% p.a. on the amount 
awarded for the period 16-3-1979 to 22-12-1991. 
E 
s.25-Applicability of-Discussed. 
Notification was published under Section 4 of the Land Acquisition Act, 
1894 on 16-03-1979 for acquisition of 4 acres 10 guntas of land. Possession 
of the said land was taken over on 18-05-1979. Respondent-Land Acquisition 
F Officer passed award, which however, was confined to 1 acre? guntas only as 
the balance 3 acres 5 guntas of land was held to be belonging to the State 
Government. However, later on, it was found by the Respondent that the entire 
4 acres 10 guntas of land belonged to the Appellants .. 
G 
In respect of the said 3 acres 5 guntas of land, another notification was 
issued on 23-12-1991 for which another award was passed by the Land 
Acquisition Officer with all the statutory benefits except additional market 
value. Appellants approached the Reference Court in terms of Section 18 of 
the Act which vide its judgment dated 2-1-1999 awarded compensation and 
also granted additional market value and interest from the date of taking 
H 
222 
MADISHEITI BALA RAMUL (D) BY LRS. ,._ LAND ACQUISmON OFFICER 
223 
possession till the date of award. High Court however held that Appellants A 
__,,,, 
are not entitled to additional market value and interest from the date of taking 
of the possession till the date of the award. 
In appeal to this Court it is contended that the Appellants were entitled 
to grant of additional market value with effect from the date of taking 
B 
possession i.e. 18-5-1979. A further question arose as to whether Section 25 
of the Act had any application in the facts and circumstances of the present 
case . 
... 
Partly allowing the appeal, the Court 
HELD: 1.1. Two notifications were issued separately. The second c 
notification was issued as the first notification did not survive. Valuation of 
the market rate for the acquired land, thus, was required to be determined on 
the basis of the notification dated 23.12.1991. The earlier notification dated 
16.03.1979 lost its force. As the said market value has been determined having 
regard to the notification issued on 23.12.1991, possession taken over by D 
Respondent in respect of 3 acres 5 guntas of land, pursuant to the said 
notification dated 16.03.1979 was in the eye of law, therefore, illegal. The 
" 
High Court evidently directed grant of additional market value@ 12% per 
.... 
annum on the enhanced market value from the date of the publication of the 
notification dated 23.12.1991 as also interest thereupon from the said date 
instead and place of the date of taking possession i.e. 18.05.1979. This Court E 
generally agrees therewith. The findings of the High Court cannot be faulted 
in strict sense of the law. [Paras 9 and 10) (227-B-E] 
1.2. However, Appellants were dispossessed pursuant to a notification 
which for one reason or other could not be given effect to. The Land 
F' 
Acquisition Officer took possession of the land on the basis ofa notification 
-/._ 
which did not survive. Respo~dent could not have continued to hold possession 
of land despite abatement of the proceeding under the Act. The State itself 
realized that its stand in regard to the ownership of 3 acres and 5 guntas of 
land was not correct. It, therefore, had to issue another notification having 
regard to the provisions contained in the Land Acquisition (Amendment) Act, G 
1984. Whereas the High Court may be correct in its interpretation, but the 
same would not mean that Appellants would not get anything for being out of

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