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2010 (12) TMI 1302 - SC - Indian LawsWhether the Delhi Development Authority (the DDA), land of the respondents and others was acquired for Planned Development of Delhi and who was asked to release ₹ 14,15,82,253/- for payment of compensation can be treated as "person interested" within the meaning of Section 3(b) of the Land Acquisition Act, 1894 (`the Act') and it was entitled to an opportunity to participate in the proceedings held before the Land Acquisition Collector and the Reference Court for determining the compensation is the question which arises for consideration in these petitions filed against the judgment of the Division Bench of the Delhi High Court whereby market value of the acquired land was fixed at ₹ 2,000/- per sq. yd. and direction was issued for payment of compensation to the contesting respondents with 15 per cent solatium and 6 per cent interest. HELD THAT:- We hold that the DDA falls within the definition of the expressions "local authority" [Section 3(aa)] and "person interested" and was entitled to participate in the proceedings held before the Land Acquisition Collector; the failure of the Land Acquisition Collector to issue notice to the DDA and give an opportunity to it to adduce evidence for the purpose of determining the amount of compensation payable to the land owners was fatal to the award passed by him; the DDA was entitled to notice and opportunity to adduce evidence before the Reference Court could enhance market value of the acquired land entitling the respondents to claim higher compensation and, as no notice or opportunity was given to the DDA by the Reference Court, the judgments rendered by it are liable to be treated as nullity; the Division Bench of the HC also committed serious error by further enhancing the amount of compensation payable to the contesting respondents without requiring them to implead the DDA as party respondent so as to enable it to contest their prayer for grant of higher compensation. In the result, the appeals are allowed. The impugned judgment of the Division Bench of the High Court as also the judgments of the Reference Court are set aside and the matters are remitted to the Reference Court for deciding the two references afresh after giving opportunity of hearing to the parties, which shall necessarily include opportunity to adduce evidence for the purpose of determining the amount of compensation. The Reference Court shall decide the matter without being influenced by the observations contained in the judgment of the High Court and this judgment. the cross-objections filed on behalf of the Union of India and the Land Acquisition Collector in C.A. Nos.6564 and 6565 of 2001 are disposed of as infructuous. However, as the judgments of the Reference Court and the High Court have been set aside and a direction has been given for fresh determination of the amount of compensation payable to the respondents, the Union of India and the Land Acquisition Collector shall be free to participate in the proceedings before the Reference Court. Since the matter is more than 32 years old, we direct the Reference Court to decide the matter as early as possible but latest within 9 months from the of date of receipt of the copy of this judgment. We further direct that if the amount of enhanced compensation determined by the Reference Court vide judgments dated 27.7.1980 and 14.5.1994 has already been paid to the respondents or their predecessors, then they shall not be required to refund the same.
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