Col. Sir Harinder Singh Brar Bans Bahadur v. Bihari Lal and Ors. Etc.
VENKATACHALA, J. Bihari Lal was a tenant of 246 Kanals 18
Marlas of land of the village Ballabhgarh in erstwhile Punjab State, now in
Haryana State. He got a right to purchase that land from its landowner,
Harinder Singh, since such right was conferred upon him by Section 18 of
the Punjab Security of Land Tenures Act, 1953, - 'the Tenures Act' for
short. That on March 2, 1961, he made an application for such purchase
before the Assistant Collector of First Grade Ballabhgarh - the authority
empowered to decide on the right to purchase and determine the purchase
price. The Assistant Collector granted that application by his order dated
March 3, 1963 recognising the tenant's right to purchase 224 Kanals 18
Marlas of the said land and determining its purchase price, besides order
ing deposit of that purchase price, either in a lump sum or in four equal
six monthly instalments, so that the same may be paid to the landowner.
The tenant who chose to deposit the first instalment of that purchase price,
deposited the same on March l2, 1963, well before the time allowed
therefor. The said order of the Assistant Collector made, recognising the
right of purchase of the land by the tenant, became final, when the
Financial Commissioner by his order dated December 9, 1965, dismissed
the Revision Petition of the landowner questioning the tenant's right of
purchase, in that, that order of the Financial Commissioner was not got set
aside by the landowner from any superior forum. However, the order of
the Assistani Collector dated March 3, 1963, relating to purchase price,
which was required to be redetermined by appellate remand order of
Collector, as .affirmed by the revisional order dated December 9, 1965 of
the Financial Commissioner, was indeed, redetermined by the Assistant
Collector by his order dated September 20, 1968. But, such redetermina
tion of the purchase price was confined to the portion of the said land
which was not by then acquired under the Land Acquisition Act, 1894 -
'the LA Act' for short. However, the Commissioner, by his order dated
August 19, 1969, made in second appeal arising from the said order of the
Assistant Collector, held that the rate of purchase price of portion of land
redetermined by the Assistant Collector shall extend to the whole land, the
purchase of which was allowed by the Assistant Collector, by his earliest
G order dated March 3, 1963.
In the meanwhile, that on August 3, 1961 a notification under Section
4(1) of the LA Act had come to be published in Haryana State Gazette,
proposing acquisition of 25 Kanals 2 Marlas out of the said 224 Kanals 18
H Marlas of land, which had been allowed to be purchased by the tenant.
,_ y-
HARINDERSINGH v. BIHARILAL[VENKATACHALA,J.) 93
according to Assistant Collector's order dated March 3, 1963. Possession A
of the land proposed for acquisition was also taken by the Land Acquisition
Collector (LA Collector) from the tenant on October 14, 1961, resulting in
vesting of that land in the State of Haryana, in that, such possession was
taken under Section 17(1) of the LA Act. Subsequently, on October 14,
1961, the LA Collector, who made an award under Section 11 of the LA B
Act, determined the compensation payable for the acquired land of 25
Kanals 2 Marlas as Rs. 26,271.00 and paid the whole compensation to the
tenant. The landowner, who had claimed the whole amount of compensa
tion, feeling aggrieved by the award of the LA Collector and the paymeni
of whole compensation to the tenant, made an application to the LA C
Collector under Section 18 of the LA Act, for making a reference to the
Court of Additional District Judge, Gurgaon for its decision under Section
30 of the LA Act. That Court, by its judgment and decree dated October
29, 1965 held that the landowner alone was entitled to the whole of
compensation awarded for the said land by the LA Collector, on its view
that the acquired land had vested in the State Government before the D
tenant could become its deemed owner under sub-section ( 4) of Section
18 of the Tenures Act by depositing its purchase price, as allowed by the
Assistant Collector by his order dated March 3, 1963, while the landowner
was still its owner. In the tenant's first appeal preferred against that
judgment and decree before the High Court of Punjab & Haryana, a E
learned single Judge of that Court allowed that appeal partly, on his view
that the compensation awarded for the acquired land was apportionable
between the landowner and the tenant in the ratio of 3:1, thinking that the
amount so apportionable to the landowner would be more or less the
purchase price payable for the land by the tenant under sub-sections (2) F
and (3) of Section 18 of the Tenures Act. But in the Letters Patent Appeal
preferred by the tenant in the same Court against the judgment and decree
of learned single Judge, a Division Bench by its· judgment and decree dated
August 20, 1979 rendered following its earlier judgment in a, similar matter,
allowed that appeal partly, holding that the landowner's entitlement to G
compensation awarded for the said land acquired under the LA Act, had
to be limited to the amount of compensation which was liable to be paid
as purchase price by the tenant, as determined under sub-sections (2) and
(3) of Section 18 of the Tenures Act. It is that judgment and decree of the
Division Bench of the High Court which is the subject of present Civil
94 SUPREME COURT REPORTS (1994] 3 S.C.R.
A Appeal No. 540 of 1980.
After the said acquisition, that on September 8, 1966, another
notification under section 4(1) of the LA Act had come to be published in
Haryana State Gazette, proposing acquisition of 151 Kanals and 2 Marlas
of land out of 224 Kanals 4 Marlas of land which had been allowed to be
purchased by the tenant according to Assistant Collector's order dated
March 3, 1963 on the purchase application made by the tenant and for the
purchase of which the first instalment of purchase price had come to be
deposited by the tenant on March 12, 1963. The LA Collector determined
the compensation payable for the land so acquired in a sum of Rs.
C 3,24,133.25 by his award dat1'd April 4, 1968 made under Section J 1 of the
LA Act. Pursuant to that award, the LA Collector took possession of the
land so acquired on April 8, 1968, on which date the acquired land vested
absolutely in the State of Haryana by operation of Section 16 of the LA
Act. Rs. 3,24,133.25, the amount determined as compensation for the
D acquired land by the award of the LA Collector, was also paid by him in
its entirety to the landowner, Harinder Singh. On references received by
the Court of the Additional District Judge, Gurgaon under Section 18 of
the LA Act, to decide, on the enhanced compensation claimed and on the
dispute as to whether the tenant or the landowner of the acquired land was
entitled to get the compensation payable for that land, that Court by its
E judgment and decree dated February 15, 1971, while enhanced the com
pensation payable for the acquired land held that the entire amount of
compensation payable for the acquired land was liable to be paid to the
tenant-Bihari Lal, in that he had become the deemed owner of the acquired
land on March 12, 1963 when he deposited the first instalment of the
purchase price pursuant to the order dated March 3, 1963 of the Assistant
Collector made on his purchase application. According to that court when
once the tenant, by making the deposit of first instalment of the purchase
price on March 12, 1963, became the deemed owner of the tenanted land
from that day because of the legal fiction created under sub-section ( 4) of
Section 18 of the Tenures Act, redetermination of purchase price of land,
G if any, made by the authorities under the Tenures Act could not bring about
any adverse effect on the deemed ownership of land got by the tenant.
However, the landowner, Harinder Singh, preferred Regular First Appeal,
RFA No. 345 of 1971 against the said judgment and decree of the Court
of Additional District Judge, Gurgaon before the High Court. But, a
H Division Bench of the High Court dismissed that appeal by its judgment
I
J
HARINDER SINGH v. BIHARI LAL [VENKATACHALA, J.j 95
and decree dated May 2, 1979. It is that judgment and decree of the A
Division Bench of the High Court, which is the subject of present Civil
Appeal No. 3288 of 1979.
Questions requiring our consideration in deciding the present ap
peals, having regard to the facts which have given rise to them, could be
~~~: B
(i) Does a landowner of land which could be purchased by a
tenant under Section 18 of the Tenures Act, cease to be its
landowner and consequently cease to have any interest in it,
on such tenant depositing according to sub-section ( 4) there- C
of, its purchase price or first instalment of its purchase price
fixed by the Assistant Collector, and becoming its deemed
owner as envisaged thereunder.
(ii) If a land which its tenant was entitled to purchase under
Section 18 of the Tenures Act had come to be vested in the D
State by reason of its acquisition under the LA Act before
such tenant became its deemed. owner as envisaged under
sub-section ( 4) of Section 18 of the Tenures Act, could the
landowner of that land have made a claim for payment of
compensation payable therefor under the LA Act and if such E
a claim had been made, what could be regarded as his
entitlement in the amount of such compep.sation.
We shall now proceed to consider the said questions in the light of
contentions of learned counsel raised, for and against them.
11.e : Question (i) :
Since this question pertains to the result that flows from the exercise
by a tenant of his right to purchase the tenanted land from its landowner
under Section 18 of the Tenures Act, need to consider it on the basis of G
the provisions in that Section, arises. The provisions insofar as they bear
on the question are, therefore, reproduced :
"18. Rights of certain tenants to purchase land. - (1) Notwithstanding
anything to the contrary contained in any law, usage or contract,
a tenant of a landowner other than a small landowner -- H
96
(i) who has been in continuous occupation of the land com
prised in his tenancy f0r a minimum period of six years, or
shall be entitled to purchase from the landowner the land so held
by him .......................... ..
Provided ............................ .
Provided fruther ........................... .
(2) A tenant desirous of purchasing land under sub-section (1)
shall make an application, in writing to an Assistant Collector of
First Grade having jurisdiction over the land concerned, and the
Assistant Collector, after giving notice to the land-owner and to
all other persons interested in the land and after making such
inquiry as he thinks fit, shall determine the value of land which
shall be the average of the price obtaining for similar land in the
locality during 10 years immediately preceding the date on which
the application is made.
(3) The purchase price shall be three-fourths of the value of
land as so determined.
( 4) (a) The tenant shall be competent to pay the purchase price
either in a lump sum or in six monthly instalments not exceeding
ten in the manner prescribed.
(b) On the purchase price or the first instalment thereof, as the
case may be, being deposited, the tenant shall be deemed to have
become the owner of the land, ........................ ..
( c) If a default is committed in the payment of any of the
instalments, the entire outstanding balance shall, on application by
the person entitled to receive it, be recoverable as arrears of land
revenue .................................... "
The language employed in sub-section (1) of Section 18, as could be
seen, is unequivocal as regards entitlement of a tenant to purchase land
comprised in his tenancy from his landowner. A tenant desirous of pur
H chasing land, according to his entitlement under sub-section (1), if makes
,.
'
I
I
HARINDERSINGH v. BIHARILAL[VENKATACHALAJ.] 97
an application therefor before the Assistant Collector of First Grade having A
jurisdiction over such land as required by sub-section (2) thereof, such
Assistant Collector is enjoined thereunder to determine the value of land
comprised in the tenancy after notice to the landowner and others who may
be concerned with it. Further, according to that sub-section the value to
be determined for such laud is required to be only the average of the price
obtaining for similar laud in the locality during ten years immediately
preceding the date on which application for its purchase was made. When
the value of the tenanted land is so determined as required by sub-section
(2) thereof, its purchase price payable by the tenant would be three-fourth
of such value as specified in sub-section (3) thereof. Clause (a) of sub-sec
tion ( 4) thereof entitles the tenant to pay the purchase price either in a
lump sum or instalments to be fixed in that behalf. Then, clause (b) of
sub-section ( 4) of Section 18, declares in unequivocal terms that the tenant
shall be deemed to become the owner of the land on the purchase price
or the first instalment thereof, as the case may be, being deposited. When
a tenant becomes a deemed owner of the land comprised in his tenancy by D
deposit of either the purchase price or the first instalment thereof, because
of the legal fiction created under clause {b) of sub-section ( 4) of Section
18, it follo\VS as a necessary corollary, that such land's landowner till
deposit can no longer be regarded as its landowner. In other words, from
the moment the tenant deposits the purchase price or the first instalment
thereof payable towards the purchase of the land comprised in his tenancy,
the landowner of that land ceases to have the interest which he had in it
as such landowner till then, inasmuch as, no provision is found in the
Tenures Act which allows him to continue to have thereafter any kind of
interest whatsoever in that land. Moreover, since sub-section (5) of Section
18 entitles the landowner to make an application merely for recovery from F
the tenant of purchase money payable in instalments, as arrears of land
revenue, it is made obvious that the instalments· of purchase money payable
by tenant for the land comprised in his tenancy is not even made a charge
on that land, to avoid any claim of interest' by such landowner, against such
land.
That a tenant becomes a deemed owner of land comprised in his
tenancy by deposit of either the purchase money or first instalment thereof
as declared by clause (b) of sub-section ( 4) of Section 18, was not disputed
..-- by learned counsel for the appellant. It was, however, strenuously argued
for the appellant that the tenant cannot become the deemed owner by H
98 SUPREME COURT REPORTS [1994) 3 S.C.R.
A deposit of the purchase money or first instalment thereof as determined by
the Assistant Collector, but becomes such deemed owner when he deposits
the higher purchase price determined in appeal and revision filed by the
appellant before the authorities. He sought to obtain support for that
argument from the judgment of this Court in Bishan Singh & Others v.
B Khazan Singh & Another, A.i.R. (1958) SC 838 and the judgment of the
Privy Council in Deonandan Prashad Singh v. Ramdhari Chowdhri and
Others, A.i.R. (1916) PC 179.
We are unable to find any merit in the argument advanced on behalf
of the appellant. Neither the judgment of Privy Council nor the judgment
C of this Court from which support was sought for the argument, can furnish
such support.
In Deonandan Prashad Singh's case decided by the Privy Council, the
facts were these : A sub-ordinate Judge had made a pre-emption decree
D in respect of certain property. On the basis of that decree the pre-emptors
were put in possession of that property from 1900 to 1904. That pre-emp
tion decree when was set aside by the High Court, the original purchaser
of that property regained its possession and was in such possession between
1905 and 1909. Thereafter, in 1908, when the Privy Council reverse the
decree of the High Court and made a decree recognising the pre-emptor's
E right to purchase the property at a higher purchase price than that fixed
by the Sub-ordinate Court, the pre-emptors, paid the extra price in 1909
and took possession of the property from the original purchaser. In this
situation, the pre-emptor sought to get mesne profits in respect of the
property from its original purchaser between 1904 and 1909, the period
F during which he was in its possession. Whether the. pre-emptors were
entitled to mesne profits for the period between 1905 and 1909, (the period
during which the judgment of the High Court was in force), was the
question that again came up for decision by the Privy Council. The Privy
Council held that the pre-emptors were not entitled to get me.me profits of
the property for the period between 1904 and 1909, on its reasoning :
"It therefore follows that where a suit is brought it is on payment
of the purchase money on the specified date that the plaintiff
obtains possession of the property, and until that time the original
purchaser retains possession and is entitled to the rents and profits.
H This was so held in the case of Deokinandan v. Sri Ram, l.L.R. 12 ·
I
I
HARINDER SINGH v. BIHARI LAL [VENKATACHALA, J.] 99
ALL 234 (K), and there Mahmud, J ., whose authority is well A
recognized by all, stated that it was only when the terms of the
decree were fulfilled and enforced that the persons having the right
of pre-emption become owners of the property, that such owner-
ship did not vest from the date of sale, notwithstanding success in
the suit, and that the actual substitution of the owner of the pre
er11ptcd property dates with possession under the decree.n · B
In Bishan Singh's case this Court had to decide as to when a decree
holder in a conditional pre-emption decree, becomes the owner of the
property in the place of the original vendee of such property. On the
authority of the judgment of the Privy Council in Deonandan Prashad's
case, it was held by this Court that the pre-emptor is not substituted in the
place of the original vendee till conditions laid down in the decree were
fulfilled. We are unable to understand, how the said judgments of the Privy
Council and this Court, which decided on the question of pre-emptors
becoming owners of lands in the places of original vendees on the well D
settled authority of pre-emptors becoming owners of lands in the place of
original vendees according to pre-emption decrees, could support the
argument of learned counsel for the appellant, that under the Tenures Act
the tenant becomes the owner of the tenanted land when enhanced pur
chase price if any, is deposited or paid to landowner. The argument
overlooks the fact that purchase price and its first instalment to be
deposited by the tenant under the Tenures Act is that fixed by the Assistant
Collector, for the tenant to become its deemed owner. Question of entit
lement to possession of tenanted land cannot be disputed while the ques-
tion which arises in pre-emption decrees is the time at which the
pre-emptors become entitled lo such possession. As to when the tenant F
who is entitled lo purchase land comprised in his tenancy becomes the
owner has, therefore, to be decided according to what is provided for in
the relevant provisions of the Tenures Act itself and not with reference to
pre·emptors right of o\vnership to property under pre·emption decrees.
Relevant provisions in the Tenures Act, to which we have already adverted
are contained in Section 18 thereof and could be even reiterated to avoid G
ambiguity. Clause (a) sub-section (4) of Section 18 gives the option to the
tenant to deposit purchase price or first instalment thereof as fixed by the
Assistant Collector. Because of the legal fiction created by clause (b) of
sub-section ( 4) of that Section, when once the purchase price or the first
instalmen~ of purchase money, as specified by th~ Assistant Collector, is H
100 SUPREME COURT REPORTS (1994] 3 S.C.R.
A deposited, such tenant becomes the deemed owner of the land comprised
in his tenancy. Hence, there can arise no room for any doubt that a tenant
who is in possession of the property, because of the deposit of purchase
price he makes, becomes the absolute owner, displacing the landowner's
interest in such land, possessed till then. Clause (c) of sub-section (4) of
Section 18 when states that the default on the part of the tenant in making
instalments of purchase price, will allow the person entitled to the same to
recover it as arrears of revenue, it becomes clear that the intendment . of
the Act is not to postpone the right of the tenant to become the owner of
the land comprised in his tenancy on account of non-payment of purchase
price even if a higher purchase price is fixed by Appellate or Revisional
Authority. Moreover, when the object of tenancy legislation, as well settled,
is to make the tenant, the tiller of the land, its owner, the beneficial
provisions which are made thereunder to confer ownership rights on
tenants, cannot receive a construction which results in either postponing
or defeating the right of ownership conferred on tenants in respect of their
D tenanted lands. As the acceptance of the argument of the learned counsel
of the appellant is bound to have the effect of defeating the object of the
provisions in the Tenures Act avowedly made by the legislature for confer
ring right of ownership of land on its tenants, we find it difficult to accept
it. However, it is made clear that if there was a deposit of purchase price
or first instalment thereof made by a tenant when the operation of the
order relating to fixation of purchase price was stayed by competent
authority or court, such deposit could not have made the tenant a deemed
owner. Our answer to the question under consideration, therefore, is that
a landowner of land which could be purchased by a tenant under Section
18 of the Tenures Act ceases to be its landowner and consequently ceases
to have any interest in such land, on such tenant depositing according to
sub-section ( 4) thereof, its purchase price or first instalment of its purchase
price as fixed by Assistant Collector and becoming its deemed owner as
envisaged thereunder.
Re : Question (ii).
Since this question pertains to the landowner's entitlement of com
pensation awardable for tenanted land acquired under the LA Act before
its tenant becomes its deemed owner under Section 18 of the Tenures Act,
it requires to be answered on the basis of the relevant provisions both in
H the LA Act and the Tenures Act. That a landowner loses every interest he
)
..,,._
HARINDERSINGH v. BIHARI LAL[VENKATACHALA,J.] 101
had in respect of a land when its tenant becomes its deemed owner, as A
envisaged under sub-section (4) of Section 18 of the Tenures Act, is
J?Ointed out by us already while answering question (i). What therefore,
requires our consideration in dealing with the present question is, whether
a landowner would be entitled to compensation awarded for a tenanted
land when it is acquired under LA Act before the tenant of such land
becomes its deemed owner under sub-section ( 4) of Section 18 of the
Tenures Act, and if so, what can ·be regarded as his entitlement in the
amount of such compensation.
Since we are concerned with the compensation awardable for a land
acquired under the L.A. Act before its amendment by Central Act 68 of C
1984, compensation awardable for land acquired under the unamended
L.A. Act, could be said to comprise of the following components :-
(i) The market value of the land at the date of publication of the
Notification under Section 4(1) of the L.A. Act.
(ii) The damage sustained by a person interested by reason of taking
of standing crops or trees which may be on the land at the time
of Collector's taking possession thereof.
(iii) The damage, if any sustained by the person interested at the time E
of Collector's taking possession of the land by reason of severing
of such land from his other land.
(iv) The damage, if any, sustained by the person interested at the
time of Collector's taking possession of the land, by reason of
the acquisition injuriously affecting his other property, movable F
or immovable, in any other manner,· or his earnings.
(v) If in consequence of the acquisition of the land by the Collector
the person interested is compelled to change his residence or
place of business, the reasonable expenses, if any, incidental to G
such change) and
(vi) The damage, if any, bona fide resulting from dimunition of the
profits of land between the time of the publication of the decla
ration under Section 6 and the time of Collector's taking posses-
sion of the land. H
A We could add to the component of the market value of the land in
item (i) above, 15% being the consideration payable for the compulsory
nature of acquisition, that is, solatium. Since interest becomes payable for
delayed payment of compensation after the Collector takes possession of
the acquired land such- interest, if accrued, has to be added to each
component of compensation. The compensation a\vardable since comprises
of the said components every person entitled to obtain any or all the
components of the compensation, becomes entitled to make a claim as
regards his interest in the land and the component of compensation
awardable thereto. There cannot be any doubt nor was it disputed that the
landowner possesses certain interest in the acquired tenanted land, if it is
acquired under the L.A. Act and vested in State before its tenant becomes
its deemed owner under sub-section ( 4) of Section 18 of the Tenures Act.
Landowner could claim the component of compensation or any portion
thereof according to the nature of interest possessed by him prior to the
acquisition and vesting of the land under the L.A. Act. The composition
D of each of the components of compensation adverted to by us are seen, the
landower can make no claim for the components of compensation under
items (ii) to (vi), in that, those components of compensation could become
payable only to a tenant who would have suffered damages awardable
thereunder. However, if regard is had to the nature of interest of land
owner comprised in the tenancy of a tenant, a claim could be made by him
for the component of compensation of market valne in item (i) and
solatium and interest payable thereon. The question which, then, needs our
considention is, whether the landowner, who, as owner of the tenanted
land before its acquisition and vesting under the L.A. Act, could claim the
F whole component of compensation in item (i) and solatium and interest
awardable thereon. Here, comes the nature of interest which the landowner
possessed in the tenanted land at the time of its acquisition and its vesting
in the State under the 'L.A. Act. It cannot be gain-said, that a landowner
of tenanted land, to the purchase of which a tenant had become entitled
G under Section 18 of the Tenures Act, could be anything other than the
purchase price payable for purchase of it under the Act, particularly, when
a tenant had made an application for such purchase availing the right
conferred upon him in that regard under section 18 of the Tenures Act. If
at the time of acquisition and vesting of the tenanted land under the L.A.
Act, the landowner's entitlement from the tenant was such land's purchase
·~
\
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HARINDER SINGH v. BIHARI LAL [VENKATACHALA, J.] 103
price, his interest, having regard to its nature, could only be in the com- A
ponent of compensation consisting of market value of the land adverted to
in item (i) and solatium and interest payable thereon and nothing beyond
it. Therefore, such a landowner could only lay his claim for the amount of
the purchase price out of the component of such compensation and limited
to the amount of purchase price. However, it was contended on behalf of B
the appellant that the landowner would become entitled to three-fourth of
the amount of compensation awardable for the land acquired even though
the tenant was entitled to its purchase under the Tenures Act. In support
of the submission, reliance was placed on the observations made by a
learned single Judge of the High Court in his judgment- the subject-matter
of one of the present appeals, which read, thus :- c
"! think the Punjab Security of Land Tenures Act itself appears to
afford some guidance in the matter. Section 18(3) prescribes the
purchase price to be paid by the tenant at three-fourths of the
value of the land as determined by Section 18(2). It mean.s that the D
interest of the landowner is assessed at three-fourths and the
interest of the tenants is assessed at one-fourth. The value of the
land as determined under Section 18(2) may be more or less than
the value of the land on the date of the notification of acquisition.
But that makes no difference. What is important is that the inter- E
ests of the landowner and the tenant are fixed at three-fourths and
one-fourth of the value of the land. On that basis, I direct the
apportionment of the compensation between the appellant and the
first respondent in the ratio of 1:3."
The said observation of the learned single Judge, it must be said, with great F
respect to him, is based on misconstruction of the provisions of sub-sec
tions (2) and (3) of Section 18 of the Tenures Act. the value of the land
envisaged under sub-section (2) is not the market value of the land but the
value of the land which should be the average price of land in the neigh
bourhood during 10 years preceding the date of making of the application
by the tenant for purchase of land. What sub-section (3) says, is that the G
purchase price of the tenanted land must be three-fourth of the value of
the land determined under sub-section (2), which means that the value of
the tenanted land could only be three-fourth of the average value of the
neighbouring land during ten years preceding the date of making of the
application by the tenant for purchase. Here is statutory measure required H
A to be adopted to find out the purchase price of tenanted land and not the
supposed market value of that land as on the date of making of the
application for purchase. If that be so, we are unable to understand how
the market value of the land which will be far different from the statutory
value of the land could be regarded as the same, as has been done by the
B learned single Judge. Hence, the contention raised on behalf of the appel
lant that the landowner would be entitled to 3/4th of the market value of
the land, becomes unsustainable. If we have regard to the provisions under
sub-sections (2) and (3) of Section 18 of the Tenures Act, rightly adverted
to by the learned single Judge, the amount of compensation to which a
landowner becomes entitled can only be the purchase price which he would
C be entitled under the said provisions for his land, which the tenant had a
right to purchase thereunder. If the purchase in favour of the tenant was
over, as indicated in sub-section (5) of Section 18, the purchase price, it
must be kept in mind, could have been recovered by the landowner as
arrears of revenue. Therefore, in our view, the tenant could have been
D entitled to get out of the component of compensation awardable as market
value in item (i) referred to above and the solatium and interest payable
thereon, only that amount of compensation which could be equivalent to
the purchase price liable to be paid by the tenant to the landowner under
Section 18 of the Tenures Act and nothing more or less. Hence, our answer
to the question under consideration is, that if a tenanted land which its
E tenant was entitled to purchase under section 18 of the Tenures Act did
vest in the State by reason of its acquisition under the LA Act before be
became its deemed owner as envisaged under sub-section ( 4) of Section 18
of the Tenures Act, the landowner of that tenanted land could have made
a claim for compensation awardable therefor under the L.A. Act and his
p entitlement out of the said compensation could only be that falling in the
component of compensation in item (i), the market value of that land
together with solatium and interest, however, limited to the amount of
purchase price which he was entitled to get for the land under Section 18
of the Tenures Act and nothing more or less.
G We shall now turn to the facts leading to the present appeals for
deciding them in the light of the answers given by us for the questions
which arose for our consideration.
The facts which have led to landowner's appeal being C.A. No.
H 540/80, show that 25 kanals 2 marlas out of 224 kanals 18 marlas of land
'
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1-IARINDER SINGH v_ BIHARI LAL [VENKATACHALA, J.] 105
respecting which Beharilal, the tenant, become a deemed owner on March A
12, 1963 under sub-section (4) of Section 18 of the Tenures Act, had come
to be acquired and vested in the State under the LA Act on October 14,
1961 earlier to the tenant becoming its deemed owner. If that be so, if
regard is had to the questions answered by us, Harinder Singh, lhe land
owner had become entitled to get out of the compensation awarded for the
said land under the LA Act, an amount equivalant to its purchase price.
If that amount is not taken by Harinder Singh from the deposits made by
Behari Lal, the tenant, as the purchase price of that land under the Tenures
Act; or out of the compensation awarded for that land under the LA Act,
L.R.'s of Harinder Singh would be entitled to get the same either from the
compensation, if any available, or from Bihari Lal.
Coming to the facts which have led to the landowner's appeal being
C.A. No. 3288/79, they show that 151 Kanals 2 Marlas of land out of 224
Kanals 18 Marlas of land respecting which the tenant, Biharilal, became
the deemed owner on March 12, 1963 was acquired and vested in the State D
on April 8, 1968, that is, subsequent to the tenant became its deemed
owner. If that be so, according to the answers given by us to the questions
considered, the landowner had no right to make a claim for compensation
payable for that land under the LA Act, inasmuch as he had lost all his
interest in that land well before the acquisition proceedings for acquiring
that land under the LA Act had commenced. Unfortunately, as is disclosed E
from the facts leading to the appeal, Harinder Singh, the landowner, had
received the compensation of Rs. 3,24,133.25 awarded for the said land by
the Land Acquisition Officer in his award made under Section 11 of the
LA Act on April 4, 1968, while our answers to questions considered by us,
make it clear that such amount of compensation to which the landowner F
was not entitled, should not liave been received by him. Our aforesaid
answers to questions considered by us also make it obvious that the said
amount of compensation should have been paid in its entirety to the tenant,
Bihari Lal, in that, it was he who was entitled to that amount of compen
sation having become the deemed owner of the said acquired land of 151
Kanals 2 Marlas. No doubt the third proviso to sub- sec ion (2) of Section G
31 of the LA Act says, that nothing contained in the section fhall affect the
liability of any person who may receive the whole or an · part of any
compensation under the Act, to pay the same to the person _lawfully
entitled thereto. Therefore, it is obvious that the landowner, Harinder
Singh, is liable to pay a sum of Rs. 3,24,133.25 received by him from the H
106 SUPREME COURT REPORTS l1994J 3 S.C.R.
Land Acquisition Collector under his award dated April 4, 1968, to the
tenant, Bihari Lal. Since Harinder Singh had the benefit of that amount to
the deprivation of its use by Bihari Lal, he has to make good that amount
to Bihari Lal, atleast along with 6 per cent interest from the date of its
receipt by him to the date of payment, if it is not already repaid, as urged
by learned counsel for Bihari Lal, the respondent. Further, as seen from
the rec'Ord, the appellant, Harint.ler Singh, is <lead an<l his L.R's are
prosecuting the present appeals. In this peculiar situation, we consider it
just and appropriate to direct that the amount liable to be paid by Harinder
Singh shall be regarded as a debt owned by Harinder Singh to Bihari Lal
and the same being payable from the former to the latter, shall be a charge
on the property of the deceased, Harinder Singh, in the hands of his L.R's
and Bihari Lal and his successors shall be entitled to realise such debt by
sale of such properties if the same is not otherwise realised. In this regard,
this judgment shall be regarded as a decree which could be got executed
through the reference court, whichever is such court that may have juris-
D diction as on date. Such course is adopted by us since we felt that there
will be no justification for driving Bihari Lal or his successors-in-interest
to recover the amount of compensation together with 6 percent interest,
by resorting to separate proceedings after a lapse of about 26 years.
Subject to what we have said as to the liability of Harinder Singh or
E his L.R's to make good the amount of compensation received under the
award dated April 4, 1968 of the Land Acquisition Collector, we dismiss
the present appeals. However, in the facts and circumstances of the cases,
we do not propose to make any order as to costs.
K.T. Appeals dismised.