High CourtDivision BenchReferred to Larger Bench

LILAWATI AGARWAL (DEAD) BY LRS AND ORS. v. STATE OF JHARKHAND

Case / Petition Number:Civil Appeal No. 1363 of 2007
Neutral Citation:2008 (5) SCR 1160

Case Details & Bench

Court
High Court
Hon'ble Judges
  • DR. ARIJIT PASAYAT
  • P. SATHASIVAM
Judgment Date
2008-04-04
Court Decision / Holding
Referred to larger Bench.
Final Disposition
Referred to Larger Bench

Parties to the Case

Appellants / Petitioners

  • Lilawati Agarwal (Dead) by LRS and ORS

Respondents

  • State of Jharkhand

Legal Representation & Advocates

Counsels for Petitioners

  • • Himanshu Munshi
  • • Anip Sachthey
  • • Mohit Paul
  • • Gopal Prasad
  • • Anil K. Jha
  • • 8.8. Singh
  • • Kumar Rajesh Singh

Case Synopsis & Summary

This Supreme Court matter arises from the land acqusition proceedings under the Land Acquisition Act, 1894, involving claimants represented by Lilawati Agarwal’s legal heirs and the State of Jharkhand. The core issue is entitlement to benefits under Sections 23(1-A), 23(2) and 28 of the Act, following the 1984 Amendment Act and the transitional provisions of Section 30(2). Notification under Section 4(1) was issued in 1965, followed by Section 6 notification in 1966, with the Collector’s Award in 1972. The Amendment Act of 1984, operative from 24 September 1984, introduced Section 30(2) and the enhanced solatium, while references to the reference court were decided in 1985. The High Court, relying on the Constitution Bench decision in Paripoornan v. State of Kerala (Paripoornan I), held the claimants not entitled to benefits under 23(1-A), 23(2) and 28. On appeal, the appellants argued that Raghuvir Singh (Union of India v. Raghuvir Singh) and Paripoornan II support extending 23(2) and 28, despite Paripoornan I. The respondents contended the three-judge view contradicts the Constitution Bench. The Court clarified key framework from Raghuveer Singh, observed inconsistency with Paripoornan II, and referred the matter to a larger Bench to resolve the correctness of the Paripoornan II view. The case is thus stayed awaiting a larger constitutional decision on interpretation of Section 30(2) and related provisions.

Provisions of Law Cited

Land Acquisition Act, 1894 - s.23(1-A)Land Acquisition Act, 1894 - s.23(2)Land Acquisition Act, 1894 - s.28Land Acquisition (Amendment) Act, 1984 - s.30Land Acquisition Act, 1894 - s.4(1)Land Acquisition Act, 1894 - s.6Land Acquisition (Amendment) Act, 1984 - s.30(2)Land Acquisition Act, 1894 - s.11Land Acquisition Act, 1894 - s.19

Legal Doctrines & Maxims

  • Restrictive interpretation should not be given (as stated in Paripoornan I)
  • Appeal is a continuation of the proceeding initiated by reference under Section 18 (principle cited but rejected in this judgment)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that although Paripoornan I may bar Section 23(1-A) relief, Union of India v. Raghubir Singh and Paripoornan II permit benefits under Section 23(2) and Section 28. They rely on the 1984 Amendment’s Section 30(2) and argue that safeguards apply to awards between 30-04-1982 and 24-09-1984, and to appellate orders arising from such awards. They assert that the restrictive reading urged by Paripoornan I (and three-judge benches) should be re-evaluated in light of Raghuveer Singh and later decisions. They also highlight the reference court’s 1985 decision and the subsequent transitional framework to ensure just compensation.

Contentions of Respondents

The respondents oppose the appellants’ expansive view, contending that the three-judge interpretation in Paripoornan II remains binding and that a larger constitutional bench is needed to settle the conflicting precedents. They stress fidelity to the Constitution Bench interpretation in Raghuveer Singh and caution against broad extension of 23(2) and 28 beyond the scope laid down by the earlier decisions. They emphasize the need for a clear, stable interpretation to avoid creating retroactive or inconsistent relief under the amended provisions.

Cited Precedents (6)

Case NameCitationTreatmentExplanation
K.S. Paripoornan v. State of Kerala1994(5) SCC 593DistinguishedParipoornan I’s restrictive interpretation is not accepted in light of Raghuveer Singh; the current judgment differentiates and declines to apply that narrow reading.
Union of India v. Raghubir Singh1989(2) SCC 754PositiveConstitution Bench framework (two termini) is used as the correct guiding principle for interpreting Section 30(2) and related provisions.
K.S. Paripoornan v. State of Kerala1995(1) SCC 367Partly Overruled / LimitedParipoornan II’s view is under reconsideration; the matter is referred to a larger bench to decide its correctness against Raghuveer Singh.
Panna Lal Ghosh v. Land Acquisition Collector2004(1) SCC 467PositiveThis Court adopted a view stemming from Paripoornan II, supporting extension of benefits per 23(2) and 28 as interpreted there.
State of Punjab v. Mohinder Singh1986(1) SCC 365DistinguishedJudgment in Mohinder Singh omitted key Section 30(2) provisions, at variance with the current Court’s view.
Bhag Singh v. Union Territory of Chandigarh1985(3) SCC 737DistinguishedThe present judgment declines to follow Bhag Singh’s reasoning for Section 30(2) interpretation.

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Extracted Judgment Text

Exact text extracted from official judgment records.

[2008) 5 S.C.R. 1160 A # LILAWATI AGARWAL (DEAD) BY LRS AND ORS. II. STATE OF JHARKHAND (Civil Appeal No. 1363 of 2007) B APRIL 4, 2008 **[DR. ARIJIT PASAYAT, P. SATHASIVAM, JJ.)** _Land Acquisition Act, 1894_ -- _ss.23(1-A), 23(2) and 28_ - _Claim under_ - _Entitlement_ - _s. 4 Notification issued on[s.6 Notification issued ][on ][10.11.1966 ][-Award ][of ]_ c _[21.4.1965 ]_[-] _collector made on 6.4.1972_ - _s.30 of Amendment Act, 1984 made operative w.e.f. 24.9.1984_ - _Reference court decided reference on 30. 9. 1985_ - _High Court held that in view of decision in *Paripoornan case, claimant was not entitled to benefit under ss.23(1-A), 23(2) and 28_ - _On appeal, Held:_ J _Constitution Bench in **Raghubir case fixed two terminus points i.e. Award by Collector or decision of reference court must be made between 30.4. 1982 and 24. 9. 1984_ - _The three judge Bench in Paripoornan case observed that restrictive interpretation should not be given_ - _Since three judge Bench_ E _gave an interpretation contrary to what was stated by Constitution Bench, matter referred to larger Bench to consider correctness of view expressed by three judge Bench_ - _Land Acquisition (Amendment) Act, 1984_ - _s.30._ F _K._ S. _Paripoornan v. State of Kera/a_ **1994(5) SCC 593;** _**Union of India v. Raghubir Singh_ **1989(2) SCC 754;** _*K.S. Paripoornan v. State of Kera/a_ **1995(1) SCC 367 - referred to.** T CIVIL APPELLATE JURISDICTION : Civil Appeal No. G 1363 of 2007. From 'the Judgment and final Order dated 19/2/2003 of the High Court of Jharkhand at Ranchi in Appeal from Original Decree No. 32 and 33/1986. H 1160 1161 A ~ _._ LILAWATI AGARWAL (DEAD) BY LRS AND ORS. _v._ STATE OF JHARKHAND [DR. ARIJIT PASAYAT, J.] WITH Civil Appeal Nos. 2468, 2469, 2470, and 2471/2008 Himanshu Munshi, Anip Sachthey, Mohit Paul, Gopal Prasad, Anil K. Jha, 8.8. Singh and Kumar Rajesh Singh for the appearing parties. B The Judgment of the Court was delivered by **DR. ARIJIT PASAYAT, J.** 1. Leave granted in SLP(C) Nos. ··15653, 15657, 15683 and 20741 of 2004. c 2. All these appeals involve identical questions and are therefore, taken up together for disposal. The basic issues involved in these appeals relate to entitlement of the claimants/ appellants for benefits under Sections 23(1-A), 23(2) and Section 28 of the Land Acquisition Act, 1894 (in short the 'Act'). D 3. Factual position is almost undisputed and essentially as follows: Notification under Section 4( 1) of the Act was issued on 21.4.1965, Section 6 notification was issued on 10.11.1966 and E the Land Acquisition Collector's Award was made on 6.4.1972. Section 30 of the Land Acquisition (Amendment) Act, 1984 (in short the 'Amendment Act') was introduced and made operative with effect from 24.9.1984. ~ F The reference court decided reference on 30.9.1985, the High Court held that in view of the decision of this Court in _K._ S. _Paripoornan v. State of Kera/a_ [1994(5) SCC 593] the appellant was not entitled to the benefit under Section 23(1-A), 23(2) and Section 28 of the Act. 4. Learned counsel for the appellants submitted that the[G ] benefit under Section 23(1-A) may not be available in view of what has been stated in _K.S. Paripoornan's_ case (hereinafter referred to as 'Paripuranan I') yet in view of the decision of this Court in _Union of India v. Raghubir Singh_ [1989(2) SCC 754] H 1162 SUPREME COURT REPORTS [2008] 5 S.C.R. _r·_ I A and in KS. _Paripoornan v. State of Kera/a_ [1995(1) SCC 367] (hereinafter referred to as 'Paripoornan II' )the benefit under Section 23(2) and Section 28 of the Act are available. 5. Learned counsel for the respondent-State and Bharat Coking Coal Ltd. (in short the 'BCCL') the beneficiary for whose benefit the land was acquired submitted that the view in Paripuranan II is not correct as a three judge Bench had taken a view clearly contrary to what has been stated by the Constitution Bench in Raghubir Singh's case (supra). B 6. By way of reply learned counsel for the appellant submitted that even recently in _Panna Lal Ghosh v. Land Acquisition Collector_ [2004(1) SCC 467] this Court has adopted a view taken in _Paripuranan_ /l's case (supra). c 7. In order to appreciate the rival submissions it is D necessary to take note of what has been stated in Raghuveer Singh's case (supra) which is as follows: "31. In construing Section 30(2), it is just as well to be clear that the award made by the Collector referred to here is the award made by the Collector under Section 11 of the parent Act, and the award made by the Court is the award made by the Principal Civil Court of Original Jurisdiction under Section 23 of the parent Act on a reference made to it by the Collector under Section 19 of the parent Act. There can be no doubt that the benefit of the enhanced solatium is intended by Section 30(2} in resgect of an award made by the Collector between 304-1982 and 24-9-1984. Likewise the benefit of the enhanced solatium is extended by Section 30(2) to the case of an award made by the Court between 30-4-1982 and 24-9-1984, even though it be upon reference from an award made before 30-4-1982. E G 34. Our attention was drawn to the order made in _State of Punjab_ v. _Mohinder Singh [1986(1)_ SCC _365],_ but in the absence of a statement of the reasons which persuaded H _+_ ........ _-<_ LILAWATI AGARWAL (DEAD) BY LRS AND ORS. _v._ 1163 STATE OF JHARKHAND [DR. ARIJIT PASAYAT, J.] _--:_ ' I _4_ .-4.· ' ,.__ "T· the learned Judges to take the view they did we find it A difficult to endorse that decision. It received the appro:val of the learned Judges who decided _Bhag Singh v Union Territory of Chandigarh [1985(3)_ SCC _737]_ but the judgment in _Bhag Singh's case (supra)_ as we have said earlier, has omitted to give due significance to all the B material provisions of Section 30(2), and consequently we find ourselves at variance with it. The learned Judges proceeded to apply the principle that an appeal is a continuation of the proceeding initiated before the Court by way of reference under Section 18 but, in our opinion, c the application of a general principle must yield to the limiting terms of the statutory provision itself. Learned counsel for the respondents has strenuously relied on the general principle that the appeal is a rehearing of the original matter, but we are not satisfied that he is on good D ground in invoking that principle. Learned counsel for the respondents points out that the word 'or' has been used in Section 30(2) as a disjunctive between the reference to the award made by the Collector or the Court and on an order passed by the High Court or the Supreme Court in E appeal and, he says, properly understood it must mean that the period 30-4-1982 to 24-9-1984 is as much applicable to the appellate order of the High Court or of the Supreme Court as it is to the award made by the Collector or the Court. We think that what Parliament intends to say is that the benefit of Section 30(2) will be F available to an award by the Collector or the Court made between the aforesaid two dates or to an appellate order of the High Court or of the Supreme Court which arises out of an award of the Collector or the Court made between the said two dates. The word 'or' is used with reference G to the stage at which the proceeding rests at the time when the benefit under Section 30(2) is sought to be extended. If the proceeding has terminated with the award of the Collector or of the Court made between the aforesaid two dates, the benefit of Section 30(2) will be H SUPREME COURT Rl:PORTS (2008) 5 S.C.R. 1164 ariplied to such award made between the aforesaid two dates If the proceeding has passed to the stage of appeal before the High Court or the Supreme Court, it is at that stage when the benefit of Section 30(2) will be applied. But in every case. the award of the Collector or of the Court must have been made between 30-4-1982 and 249-1984. (underlined for emphasis) A B 8. In _Raghubir Singh's_ case (supra) two terminus points were fixed i.e. Award by the Collector or decision of the reference Court must have been taken between 30.4.1982 and 24.9.1984. C :t has been clearly stated in the last line Jf para 34 that every case "must" have been decided between the ;:iforesaid terminus. In _Paripuranan /l's_ case (supra) at para 4 it was observed that restrictive i.1terpretation should not be given. With great respect we a:e undble to sJbscribe to the view As a matter of fact a D three judge Bench was trying to give an interpretation different from what was specifica!ly given by the Constitution Bench. \ 9. Therefore, we think it appropridte to refer th:~ matter to a larger bench to consider correctness of the view expressed in para 4 in _Paripurnan /l's_ case (supra) holding that a restricted E interpretation should not be given, on the face of what has been stated in para 34 of _Raghuveer Singh's_ case (supra). Records may be placed before the Hon'ble Chief Justice of India for necessary orders. F D.G. Referred to larger Bench.