TMI Blog1994 (11) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of the said Act with those of the Land Acquisition Act showed that the provision of the said Act were far harsher insofar as the land owner was concerned. Learned counsel for the respondents also submitted that the said Act did not enjoy the protection conferred by Article 31C notwithstanding the declaration in that behalf contained in Section 2 thereof 3. The said Act contains in section 2 the declaration aforementioned, namely, that it is enacted to give effect to the policy of the State towards securing the principles laid down in Part IV and, in particular, Article 46 of the Constitution. It is enacted to provide for acquisition of land for Harijan Welfare Scheme. 4. Section 3 of the said Act is the defines 'Court' to mean, in the City of Madras, the Madras City Civil Court and elsewhere, the Subordinate Judge's Court having jurisdiction, and if there is no such Subordinate Judge's Court, the District Court having jurisdiction. a Harijan Welfare Scheme is defined to mean any scheme for provision of house sites for Harijans, for constructing, extending or improving any dwelling house for Harijans, for providing any burial or burning ground for Har ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) to prefer an appeal to the Court within such period as may be prescribed. Sub-section (1) of section 10 requires the prescribed authority to determine who, in his opinion, are entitled to receive the amount where several persons claim to be interested therein and what is payable to each of them. Sub-section (2) states that where a dispute arises in this behalf the prescribed authority may refer it for the decision of the court and the court must in deciding such dispute, follow the provisions of Part III of the Land Acquisition Act, Section 11 reads thus: 11. Payment of amount (1) After the amount has been determined, the prescribed authority shall tender payment of the amount to the persons entitled thereto and shall pay it to them - (i) in a lump-sum in a case, where it does not exceed two thousand rupees, and (ii) in all other cases, in such number of equal annual instalments not exceeding five as may be determined by the prescribed authority and the amount of each such annual instalment shall not be less than two thousand rupees: Provided that where the balance of the amount due in any instalment is less than two thousand rupees, only the actual amount so due s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) Nothing contained in sub-section (1) shall apply in relation to any land unless and until after the District Collector has published a notice in the District Gazette to the effect that the said land is required for the purpose specified in sub-section (1) of section 4 of this Act. 5. It was submitted by learned counsel for the respondents that no enquiry by section 5 of the Land Acquisition Act was contemplated by the said Act. whereas it was the Government which was required to consider objections and the need for acquisition and make a declaration thereafter that the land was required for a public purpose under the Land Acquisition Act. It was, under the said Act, left to the District Collector to be satisfied that the land was required for the purpose of a Harijan Welfare Scheme. No enquiry into the value of the land was contemplated under the said Act inasmuch as a provision equivalent to section 11 of the Land Acquisition Act was not to be found in the said Act. Whereas the Land Acquisition Act set out the matters that were required to be considered for the purposes of award of compensation there was no such provision in the said Act. The said Act did not provide for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y officer authorised by him in this behalf to call upon the owner or any other person who, in the opinion of the District Collector or the officer so authorised, is interested in such land to show cause why it should not be acquired. Where the District Collector has called upon the owner or other person to show cause under subsection (2), clause (a) of sub-section (3) requires him to pass orders on the cause so shown. Where an officer authorised by the district Collector has called upon the owner or other person to show cause under sub-section (2), clause (b) of section 3 requires that officer to report to the District Collector his recommendations on the cause so shown and the District Collector is required to pass such orders as he may deem fit after considering the report. Sub section (2) of section 4, therefore, obliges the acquiring authority to serve notice upon the land owner and other persons interested in the land to shown cause why it should not be acquired. By reason of sub-section (3) of section 4, such cause has to be taken into account and orders passed in respect thereof It is only thereafter that the acquiring authority can arrive at the satisfaction that it is nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of market value prevailing on a date anterior to the date of extinction of interest is still determined on a principle specified . It is, therefore, of no great consequence that the said Act does not go on to specify what is to be taken into account in determining the amount payable as compensation for land that is acquired thereunder. 12.Sub-section (1) of section 7, as aforesaid, states that the amount payable in respect of the land that is acquired under the said Act shall be its market value on the date of publication of the notice under section 4(1). Sub-section (2) of section 7 states that, in addition to the market value of the land, the prescribed authority shall in every case award a sum of 15 per centum on such market value as solatium in consideration of the compulsory nature of the acquisition. Sub-section (3) of Section 7 states that the prescribed manner, determine by order the amount payable un- der sub-section (1) and a copy of the said order shall be communicated to the owner of such land and every person interested therein. The purport of section 7, read as a whole, is that the market value of the land is payable as compensation and subsection (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d owner or other person interested in the land has, therefore, the opportunity to establish its market value before the pre- scribed authority. Such evidence as he places before the prescribed authority becomes a part of the record of the court in appeal under section 5. The court in appeal under section 9 would also, in appropriate cases, have the right to call for additional evidence. 15. The provisions of section 13 of the Act provide for a second appeal to the High Court. The second appeal lies only if to amount as determined by the prescribed authority exceeds such sum as may be prescribed The sum prescribed appears to be the sum which is otherwise prescribed in regard to all second appeals. There is no obligation to provide for a second appeal in all cases and there is, therefore, no unreasonableness in this behalf 16.In the event that the court in appeal under section 9 or the High Court in second appeal under section 13 enhances the compensation amount the power to award interest as prescribed in section 12 is implicit. 17.Section 11 has already been quoted. By reason of sub- section (1) thereof, payment of the compensation amount can be made in a lump sum only whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n as to instalments in section 11. violative of the provisions of Article 14 of the Constitution of India, It is, therefore, unnecessary to consider whether or not the said Act has the protection of article 31-C of the Constitution. 20.The appeal is allowed in part. The judgment and order under appeal is set aside. Except for the provision of Section 11 (1) of the said Act insofar as they provide for payment of the compensation amount in instalments, the said Act is intra vires the constitution. Section 11 (1) is valid only to this extent: 11. Payment of amount- (1) After the amount has been determined, the prescribed authority shall tender payment of the amount to the person entitled there to and shall pay it them- (1) in a lump-sum. The rest of Section 11 (1) is ultra vires the Constitution. Civil Appeal 4461 of 1964 3978-4302 of 1990 2114 of 1991. 21.There civil appeals arise out of orders of the Madras High Court that, following the judgment dated 9th September, 1981, aforementioned, struck down the said Act. Having regard to the discussion set out above, we have held the said Act to be valid legislation, except in so far as the provisions of Section 11 (1) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land. 26. In the result, the appeals are allowed and the provisions of Chapter VI of the Slum Clearance Act are held to be intra vires the Constitution. Civil Appeal No. 7885 of 1994 (Arising out of L.P. (C) No. 16989 of 1991: 27. Leave granted. 28. This is an appeal by the owner of land whose land was sought to be acquired under the provisions of the Land Acquisition Act for the purpose of a Harijan Welfare Scheme after the coming into force of the said Act, that is the Tamil Nadu Acquisition of Lands for Harijan Welfare Scheme Act, 1978 the appellant filed a writ petition in the Madras High Court for a direction to the State to for bear from continuing with the proceedings under the Land Acquisition Act having regard to the provisions of Section 20 of the said Act which required that for such purpose land could be acquired only in accordance with the provisions of the said Act. The learned single Judge dismissed the writ petition and the Division Bench the appeal filed therefrom, both on the ground that said Act, had been struck down as unconstitutional. Hence this appeal. 29. We have held the provisions of the said Act to be valid legislation except in so far as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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