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PANNA LAL GHOSH AND ORS. versus LAND ACQUISITION COLLECTOR AND ORS.

Citation: [2003] SUPP. 6 S.C.R. 740 · Decided: 12-12-2003 · Supreme Court of India · Bench: S. RAJENDRA BABU · Disposal: Case Partly allowed

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Judgment (excerpt)

A 
PANNA LAL GHOSH AND ORS. 
v. 
LAND ACQUISITION COLLECTOR AND ORS. 
DECEMBER 12, 2003 
B 
[RAJENDRA BABU AND RUMA PAL, JJ.] 
Land Acquisition : 
Land Acquisition Ai:t, 1894 · 
C 
Sections 23(2) and 28-Solatium-Enhanced Rate-Claim for ben-
efits under the Amendment Act of 1984-Award-made by Land Acquisition 
Collector in 1974-Reference pending in the Reference Court between 
301411982 and 29/9/84~Award passed by Reference Court in 1985-
Claim for enhanced· rate-Held, Supreme Court having widened the 
D restricted interpretation given to the Amending Act, the appellants are 
entitled to enhanced solatium @ 30% and interest under Section 23(2) of 
the Act. 
Solatum-Held, is mandatory and cannot be done away with-
Contention that Section 8(2) of the West Bengal Land Development and 
E Planning Act, 1948 excludes compensation by way of solatium, does not 
hold good-Deprivation of solatium by the Act having been held by Courts 
to be invalid and violative of Article 14 of the Constitution of India-West 
Bengal Land Development and Planning Act, 1948-Section 8(2)-Con-
stitution of India, 1950-Article 14. 
F 
Compensation-Enhancement of-Claim based on an award in an-
other acquisition proceedings in respect of land situate near the lands of 
appellants-High Court dismissing the claim holding the two lands not 
being proved to be comparable in nature and potentiality-Held, High 
Court was right in not relying on the said document and disallowing the 
G claim for enhancement for compensation. 
Certain lands of the claimants-appellants were acquired under 
the Land Acquisition Act, 1894. The Land Acquisition Collector made 
his award in 1974 awarding Rs. 12,000 per acre for 'nal land,. and Rs. 
9000 per acre for 'chara' land. The reference court by its award passed 
H in 1985 enhanced the compensation to Rs. 36,00D per acre and also 
740 
P.L. GHOSH v. LAND ACQUISITION COLLECTOR 
741 
granted 15% solatium and interest under Section 23(2} of the Act. The A 
land owners filed appeal before High Court claiming benefits under 
Section 23(2) of the Act as also for· further enhancement of comp.en-
sation, and in support of their claim for enhancement; they produced 
certified copy of an· award in another acquisition proceedings in 
respect of land, which was 150 ft. away from their lands a.nd wherein B 
Rs. 1 lakh per acre had been awarded as compensation. The High 
Court did not rely on this document and ·the claim for enhancement· 
was dismissed and appellants were also denied the benefits under 
Section 23(2) of the Act. Hence the present appeal. 
On behalf of the respondents, it was co.ntended that solatium was C 
not applicable because the West Bengal Land Development and 
Planning Act; 1948, under which the area in question fell, did not 
contemplate it. 
Allowing the appeal in part, the Court 
D 
HELD : 1.1. The compensation @36,000 per acre as awarded by 
the L.A. Judge is upheld. The appellants are entitled to enhanced 
solatium @30% under Section 23(2) of the Land Acquisition Act, 1894 
and an interest@ 9% per annum under Section 28 of the Act. The High 
Court in considering the case under Section 23(1-A) of the Act has E 
committed an error. The reference by the High Court to Section 23(1· 
A) is irrelevant in the present case. The main aspect that arises for 
consideration is the rate of solatium. By an amendment in 1984, the 
rate was increased to 30% from the original 15% by virtue of Section · 
30(2) of the Amending Act. This increase was given· a limited• F 
retrospectivity, in the sense that, the Amending Act, under Section· 
30(2) provided that the increased solatium is applicable to those 
awards passed by the Collector or the Court between 30.4.1982 and. 
29.9.1984. The award was made by the L.A. Collector in 1974. 
However; during the period between 30.4.1982 and 29.9.1984t the 
reference was pending in the Reference Court which passed its award G 
in 1985. Therefore, the issue is whether the amendmentwould apply 
to a case pending during the period of 2 years from 30.4.1982 to 
29.9.1984. It has been held by this Court that the enhanced solatium 
would apply even to a case pending at the time the Act came into force. 
Thus, the benefit of enhanced solatium would extend to the present H 
742 
SUJ;>REME COURT REPORTS [2003] SUPP. 6 S.C.R. 
A case. (746-E, 746-B-C; 744-G; 745-A-B; 745-G-HI 
B 
K.S. Paripoornan v. State of Kera/a, AIR (1995) SC 1012; Union 
of Indian v. Raghubir Singh, (1989) 2SCC 754 and Union of

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