DAU NIRANJAN LAL GUPTA (DEAD) THROUGH LRS. & ANR. Vs. STATE OF CHHATTISGARH & ORS.
LAWS(SC)-2016-3-129
SUPREME COURT OF INDIA
Decided on March 14,2016

Dau Niranjan Lal Gupta (Dead) through Lrs. And Anr. Appellant
VERSUS
STATE OF CHHATTISGARH AND ORS. Respondents

JUDGEMENT

A.K. Sikri,J. - (1.) Appellants herein are the legal heirs (children) of Dau Niranjan Lal Gupta who was the co-owner of land of Survey No.967, 971, 975, 990/19 and 995/1 (total area comprising of 10.50 acres) in Village Kasaridih, Tehsil and District Durg, Chhattisgarh. On the enactment of M.P. Abolition of Property Right Act, 1951, the State Government declared that the above mentioned land is vested in the State and allotted the same to the Housing Board, in the year 1974, for construction of houses for lower income groups, middle income groups and higher income groups, as well as for some other construction. This was challenged by Dau Niranjan Lal Gupta and successors of his brother (hereinafter referred to as the 'plaintiffs'). They preferred a Civil Suit No. 144-A/1976 in the Court of First Civil Judge, Class II, Durg for declaration that such an allotment was illegal and they continued to be the owners of the land. This suit was decreed in their favour on 25.07.1977. However, in appeal filed by the State Government, the aforesaid decree was set aside by the First Appellate Court vide its judgment dated 18.07.1978. Feeling aggrieved by this judgment of the First Appellate Court, the plaintiffs preferred second appeal before the High Court of Madhya Pradesh which was allowed and the judgment and decree passed by the trial court was restored. Further challenge by the State Government in the form of SLP failed as the said SLP was dismissed on 22.09.1986. In this manner, decree passed in favour of the plaintiffs attained finality. Mutual partition took place between the plaintiffs in which the father of the appellants received 3.62 acres of land out of total 10.52 acres. The dispute concerns this land in the present proceedings.
(2.) It would be pertinent to mention here that though the plaintiffs had succeeded in their suit in the manner mentioned above, the Housing Board in the meantime had constructed 82 quarters on the land which has fallen in the share of the father of the appellants and stood devolved upon the appellants after the demise of their father. Keeping in view this fact, their father had made a representation to the Housing Board to either vacate the house or pay compensation in respect of that land as it yielded no result. A writ petition No. 4388/1996 was filed in the High Court which was disposed by the High Court vide order dated 11.11.1998 directing the respondents to initiate proceedings for compensation to the predecessor in interest of the appellants by completing necessary formalities within six months and also pay compensation within that period. Ultimately, the State Government issued notification under Section 4 of the M.P. Land Acquisition Act on 28.05.1999 followed by notification under Section 6 on 30.07.1999, thereby acquiring an area in question which measured 2.81 acres. This was followed by the award passed by the Collector on 25.08.1999 fixing the compensation at Rs. 6,57,918/- as well as interest and solatium thereupon. Out of this amount, a sum of Rs. 5,92,126/- only was paid to the appellants after making some deductions towards income tax.
(3.) The appellants were not satisfied with this compensation and, therefore, sought reference under Section 18 of the Land Acquisition Act. Matter was referred to the Additional District Judge, Durg wherein the appellants claimed compensation to the tune of Rs. 3,52,82,121/- with 15% interest thereupon. The Reference Court partly allowed the claim by passing the award dated 09.05.2008 and fixing the compensation at Rs. 1,39,93,729/- along with interest @ 9% from 26.08.1999 with a default clause to the effect that if the amount is not paid within one year then interest would be admissible @ 15% from 26.08.1999. For arriving at this amount, he fixed the market value of the land @ Rs. 90/- per sq. ft.;


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