BHAGAT BHAI AND CO , STONE CRUSHERS Vs. STATE OF PUNJAB
LAWS(P&H)-1983-12-86
HIGH COURT OF PUNJAB AND HARYANA
Decided on December 14,1983

BHAGAT BHAI AND CO , STONE CRUSHERS Appellant
VERSUS
STATE OF PUNJAB Respondents

JUDGEMENT

- (1.) The State of Haryana vide its notification dated 24.4.1973 issued under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as the Act) acquired considerable area of land for a public purpose for utilization and development as residential and commercial areas in the Urban Estate of Panchkula.
(2.) The Land Acquisition Collector rendered his Award No. 5 for the year 1973-74 on 25.7.1973, for the land only as the assessment regarding the structure thereon furnished by P.W.D. (B&R) department were found to be defective. The learned Collector in the very award mentioned that a supplementary award regarding structure would be given later on. On 8.5.1974 the learned Collector made a supplementary Award No. 3 for the year 1974-75. Vide the supplementary award in question the Land Acquisition Collector awarded to M/s. Bhagat Bhai and Co.-appellant herein Rs. 57,927 for the building and structures which they had constructed upon the part of the acquired land which they had taken on lease for 20 years for the purpose of carrying on business of stone crushing thereon. Rs. 1,500/- were awarded on account of shifting of the machinery etc. to a new site. He awarded no amount for the loss of business. Appellant sought a reference under Section 18 of the Act wherein they claimed enhanced compensation of Rs. seven lacs, the break up of which is as follows :- JUDGEMENT_86_LAWS(P&H)12_1983_1.html
(3.) The learned District Judge while sustaining the award of the Land Acquisition Collector regarding compensation for building and structure and the shifting of the machinery etc., additionally awarded a sum of Rs. 32,000/- for loss of business for one year, besides 15 per cent solatium and 6 per cent interest per annum from the date of taking possession till the date of payment. Aggrieved by the said award the appellant preferred the present appeal in this Court which in the first instance came up for hearing before Sharma, J. Before him on the strength of The State of Kerala v. P. P. Hassan Koya, 1968 AIR(SC) 1201, compensation for the loss of business was sought on the basis of a suitable multiple of the annual income from the business. On behalf of the State reliance was placed on R.F.A. No. 2002 of 1979 arising out of the same acquisition proceedings which was decided by a learned single Judge on 19.5.1981 wherein the mode of awarding of compensation on the basis of a suitable multiple of the yearly income from the business was not accepted. Sharma, J. considering the question raised before him of some importance referred the appeal to be decided by a larger Bench. That is how the appeal is before us.;


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