R L JAIN Vs. DDA

JUDGEMENT

(1.) In view of conflict of opinion in two decisions of this Court, namely, Shri Vijay Cotton and Oil Mills vs. State of Gujarat, (1991) 1 SCC 262 and Union of India vs. Budh Singh and others, (1995) 9 SCC 233 , the appeal has been placed for hearing bfore this larger Bench and the question in issue is whether in a case where possession is taken before the issuance of Notification under S.4(1) of the Land Acquisition Act, the claimant (owner of land) is entitled to interest for such anterior period of accordance with S. 34 of the said Act.

(2.) The relevant facts may be noticed in brief. The Chief Commissioner, Delhi, on behalf of the Delhi Administration, issued a preliminary Notification under S. 4(1) of the Land Acquisition Act (hereinafter referred to as "the Act") on 13-11-1959 for acquisition of a large area of 34070 acres of land including 1 bigha 11 biswas area in khasra No. 223 of village Kharera for the planned development of Delhi. This was followed by a declaration under S. 6 of the Act, which was published in the Gazette on 11-10-1961. The dispute in the present appeal relates to aforesaid plot bearing Khasra No. 223. Being an evacuee property, the said plot was notified for being sold in public auction by the Ministry of Rehabilitation and it appears that in the auction notice it was mentioned that the same shall be out of the purview of the Notification issued on 13-11-1959 under S. 4(1) of the Act for acquisition of the land. The original appellant-R. L. Jain purchased the said plot in the auction held on 8-4-1960 and a sale certificate was issued in his favour on 31-8-1961. In pursuance of the Notifications issued under Ss. 4(1) and 6 of the Act, the possession of Plot No. 223 was taken over by the Collector on 10-11-1961 and was handed over to the Delhi Development Authority (for short "the DDA"). The plot was included in Award No. 1245 made by the Collector on 30-12-1961 and compensation amount was determined. R. L. Jain received the compensation amount under protest and sought reference to the Court since he was dissatisfied with the amount of the compensation offered and paid to him. The Collector thereafter made a reference to the Court under S. 18 of the Act.

(3.) After considerable period of time, R. L. Jain filed Suit No. 154 of 1965 impleading Union of India as the sole defendant seeking a declaration that the proceedings taken for acquisition of plot bearing No. 223 of village Kharera, which had been purchased by him in public auction, were llegal as it was stipulated in the auction notice that the said plot was not included in the preliminary Notification issued under S. 4(1) of the Act which was published on 13-11-1959. After contest, the Sub-Judge First Class, Delhi passed a decree on 12-4-1967 and the acquisition proceedings including Notification dated 11-10-1961 issued under S. 6 of the Act with regard to the plot in dispute are null and void. The Union of India preferred an appeal being RCA No. 59 of 1968 but the same was dismissed by Senior Subordinate Judge, Delhi (with enhanced appellate powers) on 13-1-1969 and the judgment and decree dated 12-4-1967 of the Subordinate Judge was affirmed. The matter rested there as it was not carried in second appeal before the High Court.