Andanayya vs Deputy Chief Engineer - Land Acquisition Compensation
Summary
The Supreme Court of India granted leave to appeal in a case concerning land acquisition compensation. The appellants, landowners, are aggrieved by the High Court's rejection of their second application for re-determination of compensation, seeking parity with other landowners who received enhanced awards.
What changed
The Supreme Court of India has granted leave to appeal in the case of Andanayya and Others vs. Deputy Chief Engineer and Others, concerning land acquisition compensation. The appellants, landowners whose land was acquired for the Hubballi-Ankola Broad Gauge Line, are challenging the Karnataka High Court's decision to reject their second application for re-determination of compensation. They seek further re-determination on parity with similarly placed landowners who received an enhanced award, after their initial application based on the Reference Court's award was filed under Section 28-A of the Land Acquisition Act, 1894.
This judgment indicates a potential substantive change in how land acquisition compensation is determined, particularly for landowners who did not initially seek a reference but are now seeking parity with enhanced awards. Compliance officers in entities involved in land acquisition should monitor this case for potential implications on compensation calculations and appeals processes. The case involves the interpretation and application of the Land Acquisition Act, 1894, specifically Section 28-A, and may set a precedent for future compensation disputes.
What to do next
- Review land acquisition compensation policies and procedures.
- Monitor further developments in the Andanayya vs. Deputy Chief Engineer case.
Source document (simplified)
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Andanayya vs Deputy Chief Engineer on 25 March, 2026
2026 INSC 293
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOs. ………. OF 2026
(Arising out of SLP (C) Nos. 2587 - 2593 of 2021)
ANDANAYYA AND ORS. … APPELLANTS
VERSUS
DEPUTY CHIEF ENGINEER AND ORS. … RESPONDENTS
JUDGMENT M. M. Sundresh, J.
Leave granted.
The appellants in the present appeals are the landowners who have lost
their land in the acquisition proceedings. They are aggrieved by the impugned judgment of the Division Bench of the High Court of Karnataka, wherein the second application filed by them before the Collector, seeking re-determination of compensation, has been rejected. The appellants had earlier sought re-determination of compensation on Signature Not Verified Digitally signed by ASHA SUNDRIYAL Date: 2026.03.25 the basis of the award of the Reference Court and now seek further re-16:35:30 IST
Reason:
Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 1 of 38
determination on parity with similarly placed landowners, in whose
favor the High Court was pleased to pass an enhanced award.
3. We have heard the learned counsel appearing for the appellants and the
learned Additional Solicitor General of India (ASG), as well as the
learned Senior counsel appearing for the respondents. Documents filed,
judgments relied upon, and the written submissions have been perused
and duly taken on record.
FACTUAL BACKGROUND
Lands situated at Mavanoor Village, Hubballi Taluk, were acquired for
the construction of the Hubballi-Ankola Broad Gauge Line. On
18.04.2002, a preliminary notification was issued under Section 4(1) of
the Land Acquisition Act, 1894 (hereinafter referred to as the “Act”).
On 31.03.2003, respondent No.2, who is the Land Acquisition Officer
(hereinafter referred to as “the LAO”), passed an award under [Section
11](https://indiankanoon.org/doc/291273/) of the Act, fixing compensation at Rs. 40,000/- per acre. Being
dissatisfied with the amount awarded, some landowners sought a
reference under Section 18 of the Act. The Reference Court awarded an Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 2 of 38 enhanced sum of Rs. 2,00,000/- per acre as compensation, vide
judgment dated 17.11.2006.
The appellants, who did not seek a reference, filed an application under Section 28-A of the Act on 01.02.2007, within 90 days from the date of
the award of the Reference Court, seeking re-determination of their
compensation based upon the award of the Reference Court in LAC
Nos. 1-5/2003. During the pendency of the said application, appeals
were filed before the High Court by some of the landowners, as well as
by respondent No.2, seeking enhancement and reduction of
compensation, respectively. After the appeals filed by respondent No.2
were dismissed by the High Court, vide order dated 06.08.2012, the first
application filed by the appellants under Section 28-A of the Act was
allowed on 02.04.2013, and their compensation was re-determined on
the basis of the award of the Reference Court, even though the appeals
filed by the landowners were still pending and came to be allowed by
the High Court only on 22.07.2013, further enhancing the compensation
to Rs. 3,50,000/- per acre.
Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 3 of 38
Upon receipt of knowledge of the award passed by the High Court, the
appellants filed another application under Section 28-A of the Act on
25.11.2013, seeking re-determination of compensation on the basis of
the enhanced award passed by the High Court in MFA No. 3289/2007
and MFA No. 3291/2007 dated 22.07.2013, presumably within the
period of limitation, which is to be computed by excluding the time
requisite for obtaining a copy of the award. In any case, the issue of
limitation in filing the said application is not a matter of concern, before
us, in the present appeals.
The second application made under Section 28-A of the Act was
rejected by respondent No.2, vide order dated 30.11.2013, on the ground
that the appellants had already accepted the earlier compensation on
02.04.2013, as enhanced by the Reference Court and, that, they did not
bring the pendency of the appeals before the High Court challenging
the award of the Reference Court to the notice of the competent
authority, even though one set of appeals was filed by respondent No.2
itself. It is also observed that in the said order passed by respondent
No.2, there is no indication of any delay on the part of the appellants in Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 4 of 38 filing the second application, particularly, in light of the proviso to Section 28-A(1) of the Act.
Aggrieved, the appellants filed writ petitions before the High Court. The
learned Single Judge was pleased to find force in the submissions made
by the appellants and, accordingly, the order of rejection was quashed
with a direction to the official respondents to exercise the powers
available under Section 28-A of the Act and re-determine the market
value of the lands on the basis of the enhanced award passed by the
High Court.
Aggrieved, the official respondents filed writ appeals, which have been
allowed by the Division Bench, vide the impugned judgment, on the
premise that re-determination under Section 28-A of the Act is available
only in respect of an award passed by a Civil Court of original
jurisdiction under Part-III of the Act, and that the judgment of an
Appellate Court does not fall within the purview of Section 28-A of the
Act. The said order has been passed by placing reliance upon a decision
of this Court in Ramsingbhai Jerambhai v. State of Gujarat, (2018) Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 5 of 38 16 SCC 445. The appellants, thus aggrieved, have filed the present
appeals.
SUBMISSIONS ON BEHALF OF THE APPELLANTS
10.The learned counsel appearing for the appellants would submit that the
decision which has been relied upon by the High Court in the impugned
judgment in [Ramsingbhai Jerambhai](https://indiankanoon.org/doc/179658922/) (supra) has been taken note of
in [Banwari v. Haryana SIIDC](https://indiankanoon.org/doc/58924408/), 2024 SCC OnLine SC 3685, and
found to be per incuriam, as it did not take into consideration the earlier
decision of this Court in [Union of India v. Pradeep Kumari](https://indiankanoon.org/doc/409818/), (1995) 2
SCC 736. It is his further submission that one has to see the object of
the Act and, therefore, there cannot be any discrimination between poor
landowners and other landowners who have received higher
compensation, either from the Reference Court or the High Court.
Section 28-A has been inserted into the Act by way of an amendment
for this very purpose. In any case, respondent No.2 was well aware of
the pendency of the appeals filed by the landowners before the High
Court, at least at the time of allowing the earlier application under [Section 28-A](https://indiankanoon.org/doc/7832/) of the Act, as respondent No.2 was also a party to the said Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 6 of 38 appeals. Reliance has been placed on the decision of this Court in [Bharatsing v. State of Maharashtra](https://indiankanoon.org/doc/22209155/), (2018) 11 SCC 92, to buttress
the submission that the Collector/LAO must stay his hands in the matter
of re-determination of compensation under [Section 28-A](https://indiankanoon.org/doc/7832/) of the Act until
the appeal is disposed of by the appellate forum, and that the re-
determination must be made only on the basis of the final judgment of
the appellate forum.
SUBMISSIONS ON BEHALF OF THE RESPONDENTS
11.The learned ASG and the learned Senior counsel appearing for the
respondents would submit that the decision of this Court in the case of [Ramsingbhai Jerambhai](https://indiankanoon.org/doc/179658922/) (supra), has been rightly taken note of by the
High Court in the impugned judgment. They would further submit that
even in the case of [Pradeep Kumari](https://indiankanoon.org/doc/409818/) (supra), which has been relied
upon by the appellants, this Court was pleased to hold that only one
application under [Section 28-A](https://indiankanoon.org/doc/7832/) of the Act is maintainable and, thus, the
second application made by the appellants herein, after the judgment
rendered by the High Court, would not be maintainable. The appellants, Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 7 of 38 having already accepted the earlier compensation as enhanced by the
Reference Court, cannot seek re-determination once again.
DISCUSSION ON THE RELEVANT PROVISIONS OF THE LAND
ACQUISITION ACT, 1894 (ACT NO. 1 OF 1894)
The Act is dual in nature. It is both expropriatory and beneficial. It is
expropriatory in nature insofar as the acquisition proceedings are
concerned, and beneficial, when it comes to the payment of
compensation to the landowners. The Act contains both procedural and
substantive provisions to give effect to the objectives envisaged under
it. When it comes to the re-determination of compensation under Section 28-A of the Act, it is clearly spelt out in the Statement of Objects
and Reasons of the Land Acquisition (Amendment) Act, 1984 that an
endeavor should be made to give equal compensation to all the similarly
placed landowners, and that procedural technicalities will have to be
avoided for the same. The spirit of the enactment is encapsulated in the
following paragraph of the Statement of Objects and Reasons:
xxx xxx xxx
“(ix) Considering that the right of reference to the Civil Court under [section 18](https://indiankanoon.org/doc/1517117/) of the Act is not usually taken advantage of by inarticulate Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 8 of 38 and poor people and is usually exercised only by the comparatively
affluent land owners and that this causes considerable inequality in
the payment of compensation for the same or similar quality of land
to different interested parties, it is proposed to provide an
opportunity to all aggrieved parties whose land is covered under the
same notification to seek re-determination of compensation, once any
one of them has obtained orders for payment of higher compensation
from the reference Court under [section 18](https://indiankanoon.org/doc/1517117/) of the Act.”
xxx xxx xxx
(emphasis supplied) [Section 3(d)](https://indiankanoon.org/doc/147625098/) of the Act
“3. Definitions.—In this Act, unless there is something repugnant in the
subject or context,—
xxx xxx xxx
(d) the expression “Court” means a principal Civil Court of original
jurisdiction, unless the [appropriate Government] has appointed
(as it is hereby empowered to do) a special judicial officer within
any specified local limits to perform functions of the Court under
this Act;”
xxx xxx xxx
(emphasis supplied)
Section 3(d) of the Act defines the expression ‘Court’. It means a court
of first instance, which is otherwise a principal Civil Court of original
jurisdiction. In other words, it is the first judicial forum in the scheme
of the Act before which an adjudication takes place, to test the award
passed by the Collector under Section 11 of the Act. This provision Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 9 of 38 clearly defines the Court that will have jurisdiction to decide cases
where references are made under Section 18 of the Act. Therefore, the
jurisdiction is consciously vested with a principal Civil Court of original
jurisdiction. An exception has been carved out in cases where the
Appropriate Government has appointed a special judicial officer to
undertake the said exercise. Power is, thus, expressly conferred on the
Appropriate Government to appoint a special judicial officer in order to
perform the functions of a Court under this Act. This definition clearly
indicates the intention of the legislature for a reference made under Section 18 of the Act to be treated as an original proceeding. It has also
got no application to the Appellate Courts, namely, the High Court and
the Supreme Court.
Section 28-A of the Act
“28-A. Re-determination of the amount of compensation on the
basis of the award of the Court.—(1) Where in an award under this
Part, the Court allows to the applicant any amount of compensation in
excess of the amount awarded by the Collector under [Section 11](https://indiankanoon.org/doc/291273/), the
persons interested in all the other land covered by the same notification
under [Section 4](https://indiankanoon.org/doc/43654/), sub-section (1) and who are also aggrieved by the
award of the Collector may, notwithstanding that they had not made
an application to the Collector under [section 18](https://indiankanoon.org/doc/1517117/), by written application
to the Collector within three months from the date of the award of the
Court require that the amount of compensation payable to them may Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 10 of 38 be re-determined on the basis of the amount of compensation awarded
by the Court:
Provided that in computing the period of three months within which an
application to the Collector shall be made under this sub-section, the day
on which the award was pronounced and the time requisite for obtaining a
copy of the award shall be excluded.(2) The Collector shall, on receipt of an application under sub-section
(1), conduct an inquiry after giving notice to all the persons interested and
giving them a reasonable opportunity of being heard, and make an award
determining the amount of compensation payable to the applicants.(3) Any person who has not accepted the award under sub-section (2)
may, by written application to the Collector, require that the matter be
referred by the Collector for the determination of the Court and the
provisions of sections 18 to 28 shall, so far as may be, apply to such
reference as they apply to a reference under section 18.”
(emphasis supplied)
14. Section 28-A of the Act provides for the re-determination of
compensation in the case of landowners who have not made any
reference under [Section 18](https://indiankanoon.org/doc/1517117/) of the Act, on the basis of the award passed
under [Part III of the Act](https://indiankanoon.org/doc/7832/) alone. Now, it is pertinent to note that there can
only be one award passed by the Court under [Part III of the Act](https://indiankanoon.org/doc/7832/). In other
words, the award passed by the High Court or this Court would also be
an award under this provision, subject to the rider that the award
pertains to [Part III of the Act](https://indiankanoon.org/doc/7832/) alone. The opening words of this Section,
“where in an award under this Part, the Court allows to the applicant
any amount of compensation in excess of the amount awarded by the Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 11 of 38 Collector under [Section 11](https://indiankanoon.org/doc/291273/),” must be understood from the point of view
of finality of the said award. Thus, one cannot say that the applicability
of this provision is restricted to the award passed by the Reference Court
alone. We would only clarify that, on a conjoint reading of [Sections 3(d)](https://indiankanoon.org/doc/147625098/) and [28-A](https://indiankanoon.org/doc/7832/) of the Act, the term ‘Court’ used in Section 28-A would
include under its ambit the High Court and this Court as well. Any
interpretation to the contrary would militate against the very objective
of the Act, making [Section 28-A](https://indiankanoon.org/doc/7832/) of the Act redundant. If the object of
the Act is to ensure equality between similarly placed landowners, re-
determination cannot be done partially qua an award of the Reference
Court alone as against that of the High Court or this Court. [Section 54](https://indiankanoon.org/doc/151577964/) of the 1894 Act
“54. Appeals in proceedings before Court.—Subject to the
provisions [of the Code of Civil Procedure](https://indiankanoon.org/doc/161831507/), 1908 (5 of 1908), applicable
to appeals from original decrees, and notwithstanding anything to the
contrary in any enactment for the time being in force, an appeal shall
only lie in any proceedings under this Act to the High Court from the
award, or from any part of the award, of the Court and from any
decree of the High Court passed on such appeal as aforesaid an appeal
shall lie to [the Supreme Court] subject to the provisions contained in [section 110](https://indiankanoon.org/doc/1832764/) of the Code of Civil Procedure, 1908, and in Order XLIV
thereof.”
(emphasis supplied) Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 12 of 38
At this juncture, it is pertinent to refer to Section 54 of the Act which
speaks about appeals to the High Court and this Court. In fact, the
heading of this provision would clearly indicate that the appeals are in
proceedings before the Court. Therefore, the terms “High Court” or
“Supreme Court”, used hereinabove, are to be understood with
reference to their nomenclature and, thus, they are also Courts under
the scope of Section 28-A of the Act. Once an award is passed by the
High Court, the earlier one passed by the Reference Court ceases to
exist, and stands subsumed within the award of the High Court. The
same is the case when an award is passed by this Court. Neither the law
nor the Act recognizes the existence of two awards emanating from the
same proceedings, simultaneously. The aforesaid provision also throws
more light on the definition of ‘Court’ under Section 3(d) of the Act, as
it clearly says that the appeals are subject to the provisions [of the Code
of Civil Procedure](https://indiankanoon.org/doc/161831507/), 1908, applicable to ‘appeals from original decrees.’
Therefore, it clearly indicates that Section 3(d) of the Act concerns
itself with the Court of original jurisdiction in particular. Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 13 of 38 DOCTRINE OF MERGER
16.The principle governing the doctrine of merger already stands settled
by this Court. Once an Appellate Court renders a decision by setting
aside the judgment of the court below, the consequential decree or order
passed by the Appellate Court merges with that of the court below. This
is based on the principle that there can only be one decree or order in
operation at a given point in time. In a judicial system that has its own
hierarchy of forums, a decree or order passed by an appellate forum
would certainly become the one binding on the parties, as the earlier
decree or order passed by the forum below ceases to exist, on becoming
subsumed or merged with the one passed by the appellate forum. We do
not wish to delve much into the settled position of law except by placing
reliance on the decision of this Court in [Surinder Pal Soni v. Sohan
Lal (Dead](https://indiankanoon.org/doc/147061017/)) through Legal Representatives, (2020) 15 SCC 771. The
following paragraphs capture the essence of the aforesaid principle:
“11. Upon the decision of the appellate court, there was a merger of
the judgment of the trial court with the decision which was rendered
in appeal. Consequent upon the passing of the decree of an appellate Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 14 of 38 court, the decree of the trial court merges with that of the appellate
court. The doctrine of merger is founded on the rationale that there
cannot be more than one operative decree at a given point of time. The
doctrine of merger applies irrespective of whether the appellate court
has affirmed, modified or reversed the decree of the trial court. In Kunhayammed v. State of Kerala [(2000) 6 SCC 359], while explaining
the doctrine of merger, this Court held thus : (SCC p. 370, para 12)“12. The logic underlying the doctrine of merger is that there
cannot be more than one decree or operative orders governing the
same subject-matter at a given point of time. When a decree or
order passed by an inferior court, tribunal or authority was
subjected to a remedy available under the law before a superior
forum then, though the decree or order under challenge continues
to be effective and binding, nevertheless its finality is put in
jeopardy. Once the superior court has disposed of the lis before it
either way — whether the decree or order under appeal is set aside
or modified or simply confirmed, it is the decree or order of the
superior court, tribunal or authority which is the final, binding and
operative decree or order wherein merges the decree or order
passed by the court, tribunal or the authority below. However, the
doctrine is not of universal or unlimited application. The nature of
jurisdiction exercised by the superior forum and the content or
subject-matter of challenge laid or which could have been laid shall
have to be kept in view.”xxx xxx xxx
- More recently, the decision in [Chandi Prasad Chandi Prasad v. Jagdish Prasad, (2004) 8 SCC 724] was followed by a two-Judge Bench of this Court in Shanthi v. T.D. Vishwanathan [(2019) 11 SCC 419 : (2019) 4 SCC (Civ) 787] rendered on 24-10-2018 in the following terms:
(Shanthi case [(2019) 11 SCC 419 : (2019) 4 SCC (Civ) 787] , SCC OnLine
SC para 7)
“7. … When an appeal is prescribed under a statute and the
appellate forum is invoked and entertained, for all intents and
purposes, the suit continues. When a higher forum entertains an
appeal and passes an order on merit, the doctrine of merger would
apply. The doctrine of merger is based on the principles of the
propriety in the hierarchy of the justice delivery system. The
doctrine of merger does not make a distinction between an order Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 15 of 38 of reversal, modification or an order of confirmation passed by the
appellate authority. The said doctrine postulates that there cannot
be more than one operative decree governing the same subject-
matter at a given point of time.”
(emphasis supplied)JUDGMENTS RELIED UPON BY THE PARTIES
i. Babua Ram v. State of U.P., (1995) 2 SCC 689
“39. The next question is whether the Collector/LAO on receipt of
the application under sub-section (1) of Section 28-A is bound to
redetermine the compensation while the award and decree under Section 26 is pending consideration in the appeal in the High Court or
appellate forum. If he does so, whether award under Section 28-A(2) is
illegal? It is settled law that the decree of the trial court gets merged in
the decree of the appellate court which alone is executable. The finality
of the determination of the compensation is attained with the decree of
the appellate forum, be it the High Court or this Court. Take for instance
that ‘A’, ‘B’ and ‘C’ are interested persons in the land notified under Section
4(1) and the compensation determined in the award under Section 11. ‘A’
received the compensation without protest. ‘B’ and ‘C’ received the
compensation under Section 31 under protest and sought and secured
reference under Section 18. The court enhanced the compensation from the
Collector's award of Rs 10,000 to Rs 20,000. ‘B’ did not file appeal under Section 54 while ‘C’ filed the appeal. The High Court, suppose, further
enhances the compensation to Rs 25,000 or reduces the compensation to Rs
15,000 per acre. ‘A’ is a person aggrieved only to the extent of the excess
amount awarded either by the award and decree of the court under Section
26 but he will not get the enhancement of further sum of Rs 5000 granted
by the High Court in favour of ‘C’. The decree of the High Court is the
executable decree made in favour of ‘C’. Unless redetermination is kept
back till the appeal by the High Court is disposed of, incongruity would
emerge. Suppose the State filed appeal in this Court under Article 136 against the High Court decree and this Court confirms the award of the
Collector and sets aside the decree of civil court under Section 26 and of
the High Court under Section 54. There is nothing left for redetermination.
With a view to save ‘A’ or ‘B’ or the State from the consequences of
such incongruous situations, the Collector/LAO should stay his hands Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 16 of 38 in the matter of redetermination of compensation till the appeal is
finally disposed of and he should redetermine the compensation only
on the basis of the final judgment and decree of the appellate forum.
Adoption of such course, would not merely avoid the chance element in
the claimants getting the amounts of redetermined compensation but
also avoids needless burden on public exchequer. As soon as the award
of the civil court is carried in appeal, it becomes obligatory for the
Collector to keep the application/applications for redetermination of
compensation filed within limitation pending, awaiting decision by the
appellate forum and to redetermine the compensation on the basis of
the final judgment and decree. Normally the LAO would file the appeal
against the enhanced compensation in a decree of either the civil court
or the High Court and will know their pendency. In the case of appeal
filed by the interested persons, the latter should inform the
Collector/LAO of the pendency of appeal or otherwise comes to know
of it should keep the applications for redetermination, received under
sub-section (1) of Section 28-A within limitation pending, awaiting the
decision by the appellate court. Before proceeding with the
determination, he should obtain an affidavit from the party making the
application under Section 28-A that no appeal against the award made under Section 26 relied upon by him was filed or if had been filed was disposed
of by the appellate court and to produce the certified copy of decree and
judgment, if already disposed of.”
(emphasis supplied)
In the aforesaid decision, this Court was pleased to deal with the
doctrine of merger in the context of Section 28-A of the Act by stating
that the finality of the determination of compensation is attained only
with the decree of the appellate forum. It also dealt with a scenario
where an application under Section 28-A of the Act was being
considered by the Collector when appeals challenging the award of the
Reference Court were pending before the appellate forum. Accordingly, Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 17 of 38 it was held that the doctrine of merger shall become applicable in such
a scenario and, thus, any request for re-determination under [Section 28-
A](https://indiankanoon.org/doc/7832/) of the Act is to be kept pending, till the disposal of the pending
appeals. Incidentally, this Court also held that Section 28-A of the Act
can be invoked only on the basis of the first award passed by the
Reference Court and not subsequent awards, as the limitation period
begins to run from the date of the first award of the Reference Court.
ii. Union of India v. Pradeep Kumari, (1995) 2 SCC 736
“8. We may, at the outset, state that having regard to the Statement
of Objects and Reasons, referred to earlier, the object underlying the
enactment of Section 28-A is to remove inequality in the payment of
compensation for same or similar quality of land arising on account of
inarticulate and poor people not being able to take advantage of the
right of reference to the civil court under [Section 18](https://indiankanoon.org/doc/1517117/) of the Act. This is
sought to be achieved by providing an opportunity to all aggrieved
parties whose land is covered by the same notification to seek
redetermination once any of them has obtained orders for payment of
higher compensation from the reference court under [Section 18](https://indiankanoon.org/doc/1517117/) of the
Act. Section 28-A is, therefore, in the nature of a beneficent provision
intended to remove inequality and to give relief to the inarticulate and
poor people who are not able to take advantage of right of reference to
the civil court under [Section 18](https://indiankanoon.org/doc/1517117/) of the Act. In relation to beneficent
legislation, the law is well-settled that while construing the provisions
of such a legislation the court should adopt a construction which
advances the policy of the legislation to extend the benefit rather than
a construction which has the effect of curtailing the benefit conferred
by it. The provisions of Section 28-A should, therefore, be construed
keeping in view the object underlying the said provision.
A perusal of the provisions contained in sub-section (1) of Section 28-
A of the Act would show that after an award is made under Part III whereby Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 18 of 38 the court allows to the applicant any amount of compensation in excess of
the amount awarded by the Collector under Section 11, a right accrues to a
person interested in the other land covered by the same notification under
sub-section (1) of Section 4 who is also aggrieved by the award of the
Collector but who had not made an application to the Collector under Section 18, to move an application before the Collector for redetermination
of the amount of compensation payable to him on the basis of the amount
of compensation awarded by the court. This application for redetermination
of the compensation is required to be made within three months from the
date of the award of the court. The right to make the application under
Section 28-A arises from the award of the court on the basis of which
the person making the application is seeking redetermination of the
compensation. There is nothing in sub-section (1) of Section 28-A to
indicate that this right is confined in respect of the earliest award that
is made by the court after the coming into force of Section 28-A. By
construing the expression “where in an award under this Part” in sub-
section (1) of Section 28-A to mean “where in the first award made by
the court under this Part”, the word ‘first’, which is not found in sub-
section (1) of Section 28-A, is being read therein and thereby the
amplitude of the said provision is being curtailed so as to restrict the
benefit conferred by it. In the matter of construction of a beneficent
provision it is not permissible by judicial interpretation to read words
which are not there and thereby restrict the scope of the said provision.
(See : Jnan Ranjan Sen Gupta v. Arun Kumar Bose [(1975) 2 SCC 526,
530])It is possible to visualise a situation where in the first award that is
made by the court after the coming into force of Section 28-A the
enhancement in the amount of compensation by the said award is not very
significant for the reason that the person who sought the reference was not
able to produce adequate evidence in support of his claim and in another
reference where the award was made by the court subsequently such
evidence is produced before the court and a much higher amount is awarded
as compensation in the said award. By restricting the benefit of Section
28-A to the first award that is made by the court after the coming into
force of Section 28-A the benefit of higher amount of compensation on
the basis of the subsequent award made by the court would be denied
to the persons invoking Section 28-A and the benefit of the said
provision would be confined to redetermination of compensation on the
basis of lesser amount of compensation awarded under the first award
that is made after the coming into force of Section 28-A. There is
nothing in the wordings of Section 28-A to indicate that the legislature Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 19 of 38 intended to confer such a limited benefit under Section 28-A. Similarly,
there may be a situation, as in the present case, where the notification under Section 4(1) of the Act covers lands falling in different villages and a
number of references at the instance of persons having lands in different
villages were pending in the court on the date of coming into force of
Section 28-A and awards in those references are made by the court on
different dates. A person who is entitled to apply under Section 28-A
belonging to a particular village may come to know of the first award that
is made by the court after the coming into force of Section 28-A in a
reference at the instance of a person belonging to another village, after the
expiry of the period of three months from the date of the said award but he
may come to know of the subsequent award that is made by the court in the
reference at the instance of a person belonging to the same village before
the expiry of the period of three months from the date of the said award.
This is more likely to happen in the cases of inarticulate and poor
people who cannot be expected to keep track of all the references that
were pending in court on the date of coming into force of Section 28-A
and may not be in a position to know, in time, about the first award
that is made by the court after the coming into force of Section 28-A.
By holding that the award referred to in Section 28-A(1) is the first
award made after the coming into force of Section 28-A, such persons
would be deprived of the benefit extended by Section 28-A. Such a
construction would thus result in perpetuating the inequality in the
payment of compensation which the legislature wanted to remove by
enacting Section 28-A. The object underlying Section 28-A would be
better achieved by giving the expression “an award” in Section 28-A its
natural meaning as meaning the award that is made by the court in Part III of the Act after the coming into force of Section 28-A. If the
said expression in Section 28-A(1) is thus construed, a person would be
able to seek redetermination of the amount of compensation payable to
him provided the following conditions are satisfied:
(i) An award has been made by the court under Part III after the
coming into force of Section 28-A;(ii) By the said award the amount of compensation in excess of the
amount awarded by the Collector under Section 11 has been
allowed to the applicant in that reference;(iii) The person moving the application under Section 28-A is
interested in other land covered by the same notification under Section 4(1) to which the said award relates;
Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 20 of 38
(iv) The person moving the application did not make an application
to the Collector under Section 18;(v) The application is moved within three months from the date of
the award on the basis of which the redetermination of amount
of compensation is sought; and(vi) Only one application can be moved under Section 28-A for
redetermination of compensation by an applicant.
11. Since the cause of action for moving the application for
redetermination of compensation under Section 28-A arises from the
award on the basis of which redetermination of compensation is
sought, the principle that “once the limitation begins to run, it runs in
its full course until its running is interdicted by an order of the court”
can have no application because the limitation for moving the
application under Section 28-A will begin to run only from the date of
the award on the basis of which redetermination of compensation is
sought.
We are, therefore, unable to agree with the view expressed in
Babua Ram [(1995) 2 SCC 689 : JT (1994) 7 SC 377] and Karnail Singh
[(1995) 2 SCC 728 : (1995) 1 Scale 21] that application under Section
28-A for redetermination of compensation can only be made on the
basis of the first award that is made after the coming into force of
Section 28-A. In our opinion, the benefit of redetermination of amount
of compensation under Section 28-A can be availed of on the basis of
any one of the awards that has been made by the court after the coming
into force of Section 28-A provided the applicant seeking such benefit
makes the application under Section 28-A within the prescribed period
of three months from the making of the award on the basis of which
redetermination is sought. The first contention urged by Shri Goswamy
in support of the review petitions is, therefore, rejected.”
(emphasis supplied)In the aforesaid decision, this Court was considering the invocation of Section 28-A of the Act when multiple awards, arising out of the same
acquisition proceedings, granting different amounts, were passed by the Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 21 of 38 Reference Court. The object and legislative intent behind Section 28-A of the Act was considered in extenso. It was, accordingly, held that the
re-determination of compensation need not necessarily be sought on the
basis of the first award passed by the Reference Court alone, but can be
sought on the basis of any one of the multiple awards passed by the
Reference Court, as the limitation period begins to run from the date of
the award on the basis of which re-determination is sought and not from
the date of the first award. Thus, the views expressed by this Court in Babua Ram (supra) with respect to the invocation of Section 28-A of
the Act only on the basis of the first award of the Reference Court when
there are multiple ones, did not find acceptance in this judgment and
came to be overruled.
While the above judgment, in laying down certain conditions, held that
only one application is maintainable under Section 28-A of the Act, the
said condition is confined to cases where multiple awards have been
passed by the Reference Court. It does not apply to situation wherein, a
second or subsequent application is preferred, seeking re-determination
of compensation, based on the judgment of the Appellate Court. In other Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 22 of 38 words, the aforesaid ruling does not prohibit the filing of an application
for re-determination of compensation on the basis of the judgment of
the Appellate Court.
iii. [Jose Antonio Cruz Dos R. Rodriguese v. Land Acquisition
Collector](https://indiankanoon.org/doc/178452445/), (1996) 6 SCC 746
“4. We may now refer to the case-law. A two-Judge Bench of this Court
in [Babua Ram v. State of U.P.](https://indiankanoon.org/doc/1806862/) [(1995) 2 SCC 689] dealt with this precise
question and held that the period of limitation begins to run from the date
of the first award made on a reference under [Section 18](https://indiankanoon.org/doc/1517117/) of the Act, and
successive awards cannot save the period of limitation; vide paragraphs 19
and 20 of the reporter. This view was reiterated by the same Bench in [Union
of India v. Karnail Singh](https://indiankanoon.org/doc/166471636/) [(1995) 2 SCC 728] wherein this Court held that
the limitation of three months for an application for redetermination of
compensation must be computed from the date of the earliest award made
by a civil court, and not the judgment rendered by an appellate court. This
was followed by the decision of a three-Judge Bench in [Union of
India v. Pradeep Kumari](https://indiankanoon.org/doc/409818/) [(1995) 2 SCC 736] wherein it was held that the
benefit under Section 28-A can be had within three months from the date
of the award of the Reference Court on the basis whereof redetermination
is sought. The earlier two decisions in the case of Babua Ram [(1995) 2
SCC 689] and Karnail Singh [(1995) 2 SCC 728] were overruled on the
limited question that they sought to confine the right to seek
redetermination to the earliest award made by the Court under [Section 18](https://indiankanoon.org/doc/1517117/) of the Act after the introduction of Section 28-A into the Act. There is,
however, no doubt that the period of limitation has to be computed
from the date of the Court's award under [Section 18](https://indiankanoon.org/doc/1517117/) on the basis
whereof redetermination is sought. Admittedly, in both the cases at
hand, the applications for redetermination of compensation under
Section 28-A were made long after the expiry of three months from the
date of the award of the Court which constituted the basis for seeking
redetermination. We are, therefore, of the opinion that the High Court
was right in taking the view that both the applications were time-
barred.
Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 23 of 38
However, the counsel for the appellants drew our attention to an
order made in the present proceedings by a two-Judge Bench in Jose
Antonio Cruz Dos R. Rodrigueses v. Land Acquisition Collector [(1996)
1 SCC 88] referring two questions to a five-Judge Bench, namely: (SCC
pp. 89-90, para 4)
“1. Whether the award of the Court, i.e., civil court made under Section 26 on reference under Section 18 would also include
judgment and decree of the appellate court under Section 54? [Union of India v. Raghubir Singh, (1989) 2 SCC 754; G. Krishna
Murty v. State of Orissa, (1995) 2 SCC 733 and State of
Punjab v. Raghbir Singh, 1995 Supp (2) SCC 679 are relevant for
the point.]Whether each successive award or judgment and decree (if
answer on Question No. 1 is positive) would give cause of action to
file application under Section 28-A; if so construed, does not such
a construction violate the language used in Section 28-A when
Parliament advisedly did not use such expressions?”So far as the first question is concerned, there is no difference of
opinion on the question that the period of limitation would start to run
from the date of the Reference Court's order on the basis whereof the
redetermination is sought. In the present case, the redetermination was
sought on the basis of the Reference Court's order long after three
months even from the time the last order had elapsed and hence the
applications were clearly time-barred. We, therefore, do not see any
need to keep these matters pending for decision by a five-Judge Bench.On the second question, there was a difference of opinion as the
three-Judge Bench in Pradeep Kumari case [(1995) 2 SCC 736] had
departed from the view taken earlier in two cases by the two-Judge
Bench. If and when that question arises in an appropriate case, perhaps
a reference to a five-Judge Bench may become necessary.For the above reasons, we see no merit in these appeals and dismiss
the same but with no order as to costs.”
(emphasis supplied) Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 24 of 38
20.In the aforesaid decision, this Court was dealing with a different factual
background, wherein, the application seeking re-determination of
compensation was filed by the landowners after the expiry of the period
of limitation of three months from the date of the award of the Reference
Court. One of the questions which came to be framed by this Court
during the proceedings was whether each successive award would give
a cause of action to file an application under [Section 28-A](https://indiankanoon.org/doc/7832/) of the Act.
This Court was of the opinion that it may be necessary to refer the said
question to a five-Judge bench as and when such question arises in an
appropriate case, as the three-Judge bench in [Pradeep Kumari](https://indiankanoon.org/doc/409818/) (supra)
had departed from the view taken in the earlier decisions. We are of the
view that such a reference may not be necessary as the principle of the
doctrine of merger and the concept that an appeal constitutes only a
continuation of the proceedings were not previously brought to the
attention of this Court. Furthermore, the Statement of Objects and
Reasons of the Act, particularly, para (ix), was also not taken into due
consideration.
Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 25 of 38 iv. Bharatsing v. State of Maharashtra, (2018) 11 SCC 92
“14. In the case of the appellants, when their Section 28-A
application was decided, based on awards in LARs Nos. 123 and 129 of
1983, the very same awards were pending in appeal before the High
Court. However, the Collector proceeded to consider their application
and decided the same on 25-10-2000. Thereafter, fresh application
under Section 28-A was filed on 27-5-2009 based on the judgment of
the High Court dated 23-3-2009 [State of Maharashtra v. Sahebrao
Kishanrao Rahane, 2009 SCC OnLine Bom 2383] . It was this application
that was held to be not maintainable, being a second application.
Though there is no quarrel with the principle that only a single
application is maintainable, in the instant case, unfortunately, the High
Court omitted to take note of the fact that the appeals on the relied on
awards were pending when the Section 28-A application was decided.
That is the special and distinctive factual position in the instant case. It
must also be kept in mind that Section 28-A is a beneficial provision.The Section 28-A application dated 31-12-1992 based on the
awards in LARs Nos. 123 and 129 of 1983 was decided on 25-10-2000
when the appeals therefrom were pending. The Collector ought to have
kept the application pending till the appeals were decided on 23-3-2009.
On principle, the High Court is correct and justified in the view taken
in the impugned judgment [Bharatsing v. State of Maharashtra, 2015
SCC OnLine Bom 6306 : (2016) 5 Bom CR 450] that there cannot be
successive applications under Section 28-A in view of [Pradeep
Kumari Union of India v. Pradeep Kumari, (1995) 2 SCC 736]. But that
is not the point arising for consideration here. No doubt, the second
application dated 27-5-2009 for refixation in light of the appellate court
judgment is not maintainable. However, since the Collector is also at
fault in deciding the application when the matter was pending in
appeal, we are of the view that in the peculiar facts of the instant case,
the application dated 31-12-1992 should be considered afresh.”
(emphasis supplied)
21.In the aforesaid decision, this Court, while placing reliance upon the
decision rendered in [Babua Ram](https://indiankanoon.org/doc/1806862/) (supra), reiterated that no decision Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 26 of 38 can be made on the application filed under [Section 28-A](https://indiankanoon.org/doc/7832/) of the Act
during the pendency of any appeal. In fact, this decision would clearly
show that even though an applicant makes a claim for a particular
amount awarded by the Reference Court, there is no bar in law to seek
an enhancement of compensation on the basis of the award of an
appellate forum. In other words, the nature and extent of benefit to be
granted is irrelevant, and what is of utmost importance is maintaining
parity between similarly placed landowners.
22.We may also note that the stray observation made by this Court in Bharatsing (supra) to the effect that a second application made under Section 28-A of the Act after the judgment of the High Court is not
maintainable, by placing reliance upon the earlier decision rendered in [Pradeep Kumari](https://indiankanoon.org/doc/409818/) (supra), may not be in tune with the law laid down
as, this Court, in [Pradeep Kumari](https://indiankanoon.org/doc/409818/) (supra), was only dealing with a
scenario where multiple awards were made by the Reference Court
itself, as discussed hereinabove. Perhaps, this distinction was not
brought to the notice of this Court while rendering the decision in [Bharatsing](https://indiankanoon.org/doc/22209155/) (supra).
Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 27 of 38 iv. Ramsingbhai (Ramsangbhai) Jerambhai v. State of Gujarat,
(2018) 16 SCC 445
“3. It is clear from the opening words of the provision that the
redetermination under Section 28-A is available only in respect of an
“award” passed by the “court” under [Part III of the Act](https://indiankanoon.org/doc/7832/), comprising [Sections 18](https://indiankanoon.org/doc/1517117/) to 28-A (both inclusive). The “Court” referred to in [Section
28-A](https://indiankanoon.org/doc/7832/) of the Act is the Court as defined under [Section 3(d)](https://indiankanoon.org/doc/147625098/) to mean “…
a Principal Civil Court of Original Jurisdiction …”. Thus, the
judgment of the appellate court is not within the purview of [Section 28-](https://indiankanoon.org/doc/1945807/) A. It is also to be noted that the appellate courts under [Section 54](https://indiankanoon.org/doc/151577964/) are
under [Part VIII of the Act](https://indiankanoon.org/doc/7832/) whereas the redetermination is only in
respect of the award passed by the Reference Court under [Part III of
the Act](https://indiankanoon.org/doc/7832/). [See Jose Antonio Cruz Dos R. Rodriguese v. LAO, (1996) 6 SCC
746]. In its recent judgment in [Bharatsing v. State of Maharashtra](https://indiankanoon.org/doc/22209155/) [(2018) 11 SCC 92 : (2018) 5 SCC (Civ) 44], this Court has surveyed the
decisions on this issue and reiterated the legal principle.
- What the appellant seeks is redetermination of compensation under the Act in terms of the judgment in Ramsingbhai v. State of Gujarat of the High Court passed under Section 54 of the Act. In view of the settled legal position which we have explained above, the appellant is not entitled to such a relief; his entitlement, if any, is only in terms of Section 28-A of the Act based on the award of the Reference Court.” (emphasis supplied)
23.In the aforesaid decision, this Court held that the re-determination of
compensation under [Section 28-A](https://indiankanoon.org/doc/7832/) of the Act can be sought for only on
the basis of the award of the Reference Court and cannot be further
sought for on the basis of the award of the Appellate Court. We do not
agree with this position of law as laid down by this Court for the
following reasons. Firstly, the aforesaid decision of this Court has been Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 28 of 38 rendered without taking note of the one rendered earlier in [Pradeep
Kumari](https://indiankanoon.org/doc/409818/) (supra). Secondly, this decision has not considered the
relevant provisions in light of the object of the Act, particularly, para
(ix) of the Statement of Objects and Reasons as extracted hereinabove.
Certain other concepts such as the doctrine of merger and an appeal
being only a continuation of the proceedings, were also not placed
before it and, thus, were not given due consideration. Therefore, we are
inclined to state that the aforesaid decision, not having considered the
aforesaid material aspects, cannot be termed as a binding precedent.
v. Banwari v. Haryana SIIDC, 2024 SCC OnLine SC 3685
“7. This Court, speaking through a bench of three learned Judges, in
the case of [Ramsingbhai (Ramsangbhai) Jerambhai](https://indiankanoon.org/doc/179658922/) (supra), has
observed thus:
“3. It is clear from the opening words of the provision that the
redetermination under Section 28-A is available only in respect of
an “award” passed by the “court” under Part III of the Act,
comprising Sections 18 to 28-A (both inclusive). The “Court”
referred to in Section 28-A of the Act is the Court as defined under Section 3(d) to mean “… a Principal Civil Court of Original
Jurisdiction …”. Thus, the judgment of the appellate court is not
within the purview of Section 28-A. It is also to be noted that the
appellate courts under Section 54 are under Part VIII of the Act whereas the redetermination is only in respect of the award passed
by the Reference Court under Part III of the Act. [See Jose Antonio
Cruz Dos R. Rodriguese v. LAO [Jose Antonio Cruz Dos R.
Rodriguese v. LAO, (1996) 6 SCC 746]]. In its recent judgment
in Bharatsing v. State of Maharashtra [Bharatsing v. State of Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 29 of 38 Maharashtra, (2018) 11 SCC 92 : (2018) 5 SCC (Civ) 44], this Court
has surveyed the decisions on this issue and reiterated the legal
principle.
What the appellant seeks is redetermination of compensation
under the Act in terms of the judgment in Ramsingbhai v. State of
Gujarat [Ramsingbhai v. State of Gujarat, 2014 SCC OnLine Guj
5840 : AIR 2015 CC 1046] of the High Court passed under Section 54 of the Act. In view of the settled legal position which we have explained
above, the appellant is not entitled to such a relief; his entitlement, if
any, is only in terms of Section 28-A of the Act based on the award of
the Reference Court.”
xxx xxx xxxIt, however, appears that this Court in the case of Ramsingbhai
(Ramsangbhai) Jerambhai (supra), has not noticed an earlier judgment
rendered by this Court in Pradeep Kumari (supra).”
xxx xxx xxxIt can thus be seen that this Court has held that the object
underlying the enactment of Section 28-A of the 1894 Act is to remove
inequality in the payment of compensation for same or similar quality
of land arising on account of inarticulate and poor people not being
able to take advantage of the right of reference to the civil court under Section 18 of the 1894 Act. It was held that this is sought to be achieved
by providing an opportunity to all aggrieved parties whose land is
covered by the same notification to seek redetermination once any of
them has obtained orders for payment of higher compensation from
the Reference Court under Section 18 of the 1894 Act. It was held that
while construing the provisions of such a legislation, the Court should
adopt a construction which advances the policy of the legislation to
extend the benefit rather than a construction which has the effect of
curtailing the benefit conferred by it.It has further been held by this Court that under Section 28-A of the
1894 Act, a right accrues to a person interested in the other land covered by
the same notification under sub-section (1) of Section 4, where the Court
allows a higher compensation to the similarly circumstanced persons who
are covered by the said notification. It has been held that the application for
redetermination of the compensation is required to be made within three
months from the date of the award by the Court. It has been held that the
right to make an application under Section 28-A of the 1894 Act arises from Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 30 of 38 the award of the Court on the basis of which the person making the
application is seeking redetermination of the compensation. The Court
further held that there is nothing in sub-section (1) of Section 28-A of the
1894 Act to indicate that this right is confined in respect of the earliest
award that is made by the Court after coming into force of Section 28-A of
the 1894 Act. This Court held that Section 28-A of the 1894 Act if read in
such a manner, it will be contrary to the principles of construction of a
beneficial provision. It is further held that by judicial interpretation, the
Court could not read the words which are not there and thereby restrict the
scope of a provision.In paragraph 10 of the said case, this Court had referred to
various eventualities that may occur if such a restrictive interpretation
is given to the provision of Section 28-A of the 1894 Act. The Court
observed that it has to be seen from the point of view of inarticulate
and poor people. The Court held that the object underlying Section 28-
A of the 1894 Act would be better achieved by giving the expression
“an award” in Section 28-A of the 1894 Act, its natural meaning as
meaning the award that is made by the Court in Part III of the 1894
Act after coming into force of Section 28-A.
- This Court has laid down the conditions which are required to be satisfied for invoking the provisions of Section 28-A(1) of the 1894 Act as follows:
(i) An award has been made by the Court under Part III of the Act after
coming into force of Section 28-A;(ii) By the said Award, the amount of compensation in excess of the
amount awarded by the Collector under Section 11 has been allowed
to the applicant in that reference;(iii) The person moving the application under Section 28-A is interested
in other land covered by the same notification under Section 4(1) to
which the said award relates;(iv) The person moving the application did not move the application
under Section 18;(v) The application is moved within three months from the date of the
award on the basis of which redetermination of amount of
compensation is sought; and(vi) Only one such application can be moved under Section 28-A for
redetermination of the compensation by the applicant.
Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 31 of 38 15. In the present case, it is not in dispute that the First Appeal which
was allowed by the High Court vide judgment and order dated 2nd May
2016 was in respect of the land which was covered by the same notification
under which notification the appellants' land is also covered. It is also not
in dispute that the amount awarded by the High Court in the said First
Appeal is in excess of the amount awarded by the Collector under Section
11 of the 1894 Act in the case of the land of the appellants. It is also not in
dispute that the appellants had not made an application to the Collector
under Section 18 of the 1894 Act. It is also not in dispute that the application
made by the appellants under Section 28-A of the 1894 Act to the Collector
was within a period of three months from the date of the judgment and order
of the High Court.
From the perusal of the judgment of this Court in the case
of Pradeep Kumari (supra), it is clear that the limitation for moving the
application under Section 28-A of the 1894 Act will begin to run only from
the date of the award on the basis of which redetermination of the
compensation is sought. The appellants are seeking redetermination of the
compensation on the basis of the judgment and order of the High Court in
First Appeal No. 429 of 2023 dated 2nd May 2016. It is not disputed that the
application of the appellants under Section 28-A of the 1894 Act is within
a period of three months from 2nd May 2016.We are, therefore, of the considered view that the case of the
appellants is fully covered by the judgment of this Court in the case
of Pradeep Kumari (supra).It is further to be noted that the cases of Pradeep Kumari (supra)
and Ramsingbhai (Ramsangbhai) Jerambhai (supra), both have been
decided by a Bench strength of three learned Judges of this Court. The
case of Pradeep Kumari (supra) is decided on 10th March 1995,
whereas Ramsingbhai (Ramsangbhai) Jerambhai (supra), has been
decided on 24th April 2018.A perusal of the judgment rendered in Ramsingbhai
(Ramsangbhai) Jerambhai (supra), would reveal that the said case does
not take note of the earlier view taken by three learned judges of this
Court in the case of Pradeep Kumari (supra).In this respect, we may gainfully refer to the observations of a
Constitution Bench of this Court in the case of National Insurance
Company Limited v. Pranay Sethi [(2017) 16 SCC 680 : 2017 INSC
1068]. The relevant paragraphs of the judgment read as under: Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 32 of 38
“27. We are compelled to state here that in Munna Lal Jain, the
three-Judge Bench should have been guided by the principle stated
in Reshma Kumari which has concurred with the view expressed
in Sarla Verma or in case of disagreement, it should have been well
advised to refer the case to a larger Bench. We say so, as we have
already expressed the opinion that the dicta laid down in Reshma
Kumari being earlier in point of time would be a binding precedent and
not the decision in Rajesh.
- In this context, we may also refer to Sundeep Kumar Bafna v. State of Maharashtra [Sundeep Kumar Bafna v. State of Maharashtra, (2014) 16 SCC 623 : (2015) 3 SCC (Cri) 558] which correctly lays down the principle that discipline demanded by a precedent or the disqualification or diminution of a decision on the application of the per incuriam rule is of great importance, since without it, certainty of law, consistency of rulings and comity of courts would become a costly casualty. A decision or judgment can be per incuriam any provision in a statute, rule or regulation, which was not brought to the notice of the court. A decision or judgment can also be per incuriam if it is not possible to reconcile its ratio with that of a previously pronounced judgment of a co-equal or larger Bench. There can be no scintilla of doubt that an earlier decision of co-equal Bench binds the Bench of same strength. Though the judgment in Rajesh case was delivered on a later date, it had not apprised itself of the law stated in Reshma Kumari but had been guided by Santosh Devi. We have no hesitation that it is not a binding precedent on the co-equal Bench.”
- It can thus be seen that, this Court in unequivocal terms has held that an earlier decision of a Bench of particular strength would be binding on the subsequent Benches of this Court having the same or lesser number of judges.
While considering the rule of per incuriam, the Constitution
Bench of this Court has held that a decision or judgment can be said to
be per incuriam if it is not possible to reconcile its ratio with that of a
previously pronounced judgment of a co-equal or larger Bench.In any case, the judgment in Pradeep Kumari (supra) has been
rendered by three learned Judges of this Court after considering the
relevant provisions of the Statute and the principles of interpretation. However, the judgment in the case of Ramsingbhai (Ramsangbhai) Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 33 of 38 Jerambhai (supra) is a short judgment only referring to the text of
Section 28-A(1) of the 1894 Act.”
(emphasis supplied)
24.In the aforesaid decision, this Court took into due consideration the
earlier decisions rendered in [Pradeep Kumari](https://indiankanoon.org/doc/409818/) (supra) and [Ramsingbhai](https://indiankanoon.org/doc/179658922/) (supra). As discussed above, cogent reasons have been
given for following the decision in [Pradeep Kumari](https://indiankanoon.org/doc/409818/) (supra), while
taking note of the fact that the subsequent decision in [Ramsingbhai](https://indiankanoon.org/doc/179658922/) (supra) has been rendered without taking note of the earlier decision
and thus, the latter was held to be per incuriam. Hence, we are in
agreement with the aforesaid view.
LEGAL ANALYSIS
25.From the analysis made hereinabove on the relevant provisions of the
Act and the judgments relied upon by the parties, we are inclined to
hold that even a second application made under [Section 28-A](https://indiankanoon.org/doc/7832/) of the Act
after the award passed by the High Court is maintainable and entitled to
be considered by the Collector/LAO. We are of the view that,
entertaining an earlier application filed under [Section 28-A](https://indiankanoon.org/doc/7832/) of the Act
on the basis of the award of the Reference Court followed by the receipt Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 34 of 38 of money, shall not act as a bar for the same applicant to seek further
re-determination of compensation on the basis of the award passed by
the High Court or this Court.
It is the doctrine of merger that comes into application in such
circumstances. The benefit of an enhanced compensation received by a
landowner, consequent to the final award passed by the appellate forum,
would also extend to similarly placed landowners who seek re-
determination of compensation under Section 28-A of the Act. To put it
differently, when ‘A’ obtains an award from the Reference Court, ‘B’
can also receive the benefit of the same by invoking Section 28-A of the
Act. Similarly, when ‘A’ receives an enhancement from the High Court
or this Court, ‘B’ is also entitled to receive the same enhancement,
notwithstanding the earlier receipt of money under Section 28-A of the
Act based upon the award of the Reference Court. The decision of this
Court in Pradeep Kumari (supra) has to be understood and applied
only in a context when multiple awards come to be passed by the
Reference Court itself and not in the present context when a subsequent
award is passed by the High Court or by this Court. Ultimately, the Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 35 of 38 object of Section 28-A of the Act is to maintain parity and equality
between the similarly placed landowners in the payment of
compensation. The question of estoppel, waiver or acquiescence would
thus not arise, in view of the statutory prescriptions under Section 28-A of the Act.
FACTUAL ANALYSIS
27.Admittedly, the first application filed by the appellants under [Section
28-A](https://indiankanoon.org/doc/7832/) of the Act, seeking re-determination of compensation on the basis
of the award of the Reference Court, was pending before the competent
authority when the appeals challenging the said award were filed by the
respondents and the other landowners before the High Court.
Conveniently, the said application came to be allowed upon the
dismissal of the appeals preferred by respondent No.2, while the appeals
filed by the landowners were still pending before the High Court. This
act of the respondent No.2 is contrary to the law [laid down in](https://indiankanoon.org/doc/409818/) [Babua
Ram](https://indiankanoon.org/doc/1806862/) (supra) and [Bharatsing](https://indiankanoon.org/doc/22209155/) (supra). Even otherwise, as held
hereinabove, in the absence of any statutory prohibition, there is no bar
for the appellants to seek re-determination of compensation on the basis Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 36 of 38 of the award of the High Court, even if they had previously filed an
application after the award of the Reference Court. The fact that the
appellants received the compensation, pursuant to the order passed on
the earlier occasion, is irrelevant. The High Court, in our considered
view, erred in placing reliance upon the subsequent decision of this
Court in [Ramsingbhai Jerambhai](https://indiankanoon.org/doc/179658922/) (supra) without taking note of the
one rendered in [Pradeep Kumari](https://indiankanoon.org/doc/409818/) (supra).
28.In such view of the matter, the impugned judgment and order passed by
the Division Bench of the High Court of Karnataka stands set aside.
Consequently, the order of rejection passed by respondent No.2 dated
30.11.2013 also stands set aside with a direction to the respondents to
re-determine the compensation in favor of the appellants in light of the
judgment of the High Court dated 22.07.2013 in MFA Nos. 3289 and
3291 of 2007, within a period of eight weeks from the date of receipt of
a copy of this judgment.
29.The appeals stand allowed, accordingly.
Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 37 of 38
30.Pending application(s), if any, shall stand disposed of.
.………………………. J.
(M. M. SUNDRESH)
………………….…………………………. J.
(NONGMEIKAPAM KOTISWAR SINGH)
NEW DELHI;
MARCH 25, 2026 Civil Appeal @ SLP (C) Nos. 2587-2593 of 2021 Page 38 of 38
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