- (1.) RAJIV NARAIN RAINA, J. (Oral) 1. The appellant Government of Punjab acquired a large chunk of land for public purpose of industrial development under the provisions of Sections 4 and 6 of the Land Acquisition Act, 1894. After acquiring the land from the land owners, the Government floated an industrial policy dated 24.11.1992 by which a scheme called "Off the Shelf" allotment of plots was formulated and the land was offered in terms of the scheme to various companies applying for allotment on the terms and conditions set out in the industrial policy.
(2.) THE respondent company, M/s Ritesh Industries Limited made an offer which was accepted and 40 acres of land were allotted to the respondent. The sale consideration was tentatively fixed at Rs. 6.30 lacs per acre and the amount of Rs. 2.52 crores was paid to the Government on 29.3.1994 in sale consideration and thereafter, a conveyance deed dated 11.12.1996 was executed between the parties to determine right, title and interest in the property. The respondent is in possession of the land since then. In the meantime, the land owners had approached the reference Court under Section 18 of the Land Acquisition Act for enhancement of compensation. The Collector awarded compensation @ Rs. 2,48,610/ - per acre. Reference Court vide its award dated 18.12.2001 enhanced the compensation to Rs. 4.50 lacs per acre. The Collector vide demand notice dated 11.9.2002 and 10.7.2003 made demand for additional payment of Rs. 1,91,79,662.00 and Rs. 41,22,284.00 from the respondent which was resisted by it. This led to the dispute being referred by the Government of Punjab in the Department of Industries and Commerce through office order dated 10.7.2003 for resolution by arbitration under Clause 20 of the Conveyance Deed which contained the arbitration clause. The Additional Director (Small Scale Industries), Punjab was appointed as the Arbitrator by the appellant. The limited issue before the Arbitrator and thereafter in the proceedings under Section 34 of the centres around the interpretation of clause 14 of the Conveyance Deed. Clause 14 reads as follows : - "That the amount payable to the Vendor as development charges, cost of common facilities, cost of enhancement of price of the allotted land due to enhancement of compensation by the court or otherwise and all other expenses whatsoever resulting thereto including interest, shall be payable by the Transferee to the Vendor on demand and in the event of default, the Vendor shall have the right to recover the due amount as arrears of land revenue."
(3.) THOUGH the amount payable to the vendors included all the components mentioned in Clause 14 including enhancement of compensation by the Court to be payable by the transferee on demand the question remained whether the amount of enhanced compensation from Rs. 2.5 lacs per acre to Rs. 4.5 lacs per acre would constitute a valid demand. What the Government sought was to raise the demand keeping Rs. 6.3 lacs per acre as base and adding to it the difference in the compensation awarded by the Collector and the reference Court totalling Rs. 7.09 lacs. In this manner, by using the 'over and above' principle, the actual demand raised against the respondent transferee was Rs. 13 lacs and odd.;