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Issues: (i) whether, under the unamended law, compensation awarded in reference or appeal could exceed the amount claimed by the landowners; (ii) whether interest on enhanced compensation was payable at the amended rates of 9% and 15% or only at the pre-amendment rate of 6%; (iii) whether the review petition disclosed any error warranting reopening of the enhancement awarded by the High Court.
Issue (i): whether, under the unamended law, compensation awarded in reference or appeal could exceed the amount claimed by the landowners
Analysis: Section 25, as it stood before substitution by the 1984 amendment, restrained the Court from awarding compensation beyond the amount claimed where a claim had been made pursuant to notice under Section 9. The award and reference proceedings in the case had concluded before the amendment took effect, so the unamended provision governed the claim. That restriction applied equally when the High Court exercised appellate jurisdiction in land acquisition matters.
Conclusion: The compensation could not exceed the amount claimed, and enhancement beyond the claim was unsustainable.
Issue (ii): whether interest on enhanced compensation was payable at the amended rates of 9% and 15% or only at the pre-amendment rate of 6%
Analysis: Section 28, as amended in 1984, introduced higher interest rates and a further proviso for 15% interest after one year. The Court held that the amendment was not retrospective so as to govern awards made before the relevant cut-off date. The earlier provision was substantive in character, not merely procedural, and therefore the claimants could not receive the amended interest benefits on an award governed by the unamended regime.
Conclusion: Only 6% interest was admissible, and the award of 9% and 15% interest was set aside.
Issue (iii): whether the review petition disclosed any error warranting reopening of the enhancement awarded by the High Court
Analysis: The review challenge rested on the applicability of the amended compensation regime and on the valuation material relied upon for enhancement. The Court held that the amended provisions governed the relevant award period and removed the ceiling based on the amount claimed, and that review could not be used to reappraise evidence or reopen the valuation exercise already considered.
Conclusion: The review petition failed and was dismissed.
Final Conclusion: The appeal succeeded to the extent that the enhancement beyond the claimed amount and the grant of amended-rate interest were set aside, while the review petition was rejected.
Ratio Decidendi: In land acquisition matters, the unamended law applies to awards made before the amendment takes effect, and a substantive restriction or benefit affecting compensation or interest cannot be applied retrospectively unless the statute clearly so provides.