SUPREME COURT HOLDS BUYER ENTITLED TO COMPENSATION FOR LAND ACQUISITION

The Two Judge Bench of the Hon’ble #SupremeCourt of India comprising of Justices Dr. D.Y. Chandrachud and M.R. Shah passed a #Judgment dated 30-04-2021 in the case of <strong><em>Sukhbir v. Ajit Singh {CIVIL APPEAL NO. 1653 OF 2021} </em></strong>and held that that a #buyer is entitled to #compensation along with interest and solatium for land acquisition under the provisions of the #LandAcquisition Act 1894 <strong>(Act)</strong>.

In the present case, an Agreement was executed with respect to a land on 9.3.2010 <strong>(#Agreement) </strong>by the Appellant- original Defendant <strong>(hereinafter referred to as the ‘Defendant’) </strong>in favour of the Respondent – original Plaintiff <strong>(hereinafter referred to as the ‘Plaintiff’) </strong>for a total sale consideration of Rs. 32 Lakhs. Out of the total sale consideration, the Plaintiff paid Rs. 31,50,000/- to the Defendant. As stipulated in the Agreement, the sale deed was supposed to be executed on 8.7.2010. But as the Sale Deed was not executed, the Plaintiff served a Legal Notice dated 13.7.2020 to the Defendant and made a request to be present at Sub-Registrar’s Office on 6.8.2010 for execution of the Sale Deed.

The Plaintiff instituted a Suit on 5.8.2010 being Civil Suit No. RBT-34/2010 in the Court of learned Civil Judge, Senior Division, Jhajjar, Haryana for specific performance of the Agreement and to handover the possession of the land in question. That after the filing of the Suit but before passing of the final decree, a Notification dated 6.7.2012 was issued under Section 6 of the Act, by virtue of which the land in question came to be acquired by the acquiring body. However, the learned Trial Court passed a Judgment and Decree dated 19.12.2012 for specific performance. The Court further directed the Defendant to execute the Sale Deed in favour of the Plaintiff by receiving the balance sale consideration of Rs. 50,000/- and handover the possession of the suit property to the Plaintiff.

The first Appellate Court affirmed the Judgment and Decree passed by the Trial Court. Aggrieved, the Defendant preferred Second Appeal before the High Court being R.S.A. No. 4848/2016.

The High Court held that the Plaintiff shall be entitled to the entire amount of compensation along with solatium and interest etc., owing to the acquisition of the land in question. While considering Section 21 of the Specific Relief Act, the High Court, by the impugned Judgment and Order modified the Judgment and Decree for specific performance and observed that the Plaintiff shall be entitled to the amount of compensation as awarded under the Act together with interest and solatium by way of compensation.

Aggrieved with the impugned Judgment and Order passed by the High Court, the original Defendant filed an Appeal in the Hon’ble Supreme Court of India. The question that arose before the Apex Court was whether the High Court was justified in modifying the Judgment and Decree passed by the Trial Court for specific performance?

After taking into consideration the arguments advanced by the Parties to the dispute, the Apex Court observed that the Plaintiff shall be entitled to the Decree for Specific Performance. The Bench, while confirming the finding of the High Court, observed that the Respondent was willing and ready to perform the Contract and the Appellant was clearly in breach. The Supreme Court held that the High Court did not commit any error in modifying the decree for specific performance. The Plaintiff shall be entitled to the entire amount of compensation, determined and awarded under the provisions of the Act together with interest and solatium.

Thus, the Hon’ble Apex Court while disposing off the Appeal held that the Plaintiff-Respondent shall be entitled to recover the entire amount of compensation along with solatium and interest awarded under the provisions of the Act which is reported to be deposited with the acquiring body.

<strong>Suchitra Upadhyay</strong>

<strong>Associate</strong>

<strong>The Indian Lawyer &amp; Allied Services</strong>