Union of India v. Filip Tiago De Gama of Vedem Vasco De Gama

GOLDEN RULE (Purposive Application to Retrospective Effect)

INTRODUCTION

The Golden Rule is a modified principle of literal interpretation. The words of a statute must be given their ordinary meaning, but this meaning should not be departed from unless the legal context requires a different meaning or the literal meaning leads to an absurdity or manifest injustice. The paramount object in statutory interpretation is to discover what the legislature intended.

As Justice Holmes rightly said, “Words are certainly not crystals, transparent and unchanged.”

{1.7 Rule of Literal Construction, by Avatar Singh}

FACTS

The State Government issued a notification under Section 4 of the Land Acquisition Act, 1894 in October 1967 to acquire land for a Naval Air Station. The Land Acquisition Officer made an award in 1969. The claimant sought reference, and the Civil Court awarded higher compensation in May 1985. The claimant then appealed to the High Court, seeking further enhancement, and specifically demanding the higher solatium at 30% and additional compensation introduced by the Land Acquisition (Amendment) Act, 1984. The High Court granted these enhanced benefits.

ISSUE

a) Whether Section 23(2) (providing for 30% solatium) applies proprio vigore (of its own force) to awards made after September 24, 1984, even though the acquisition commenced prior to that date. b) Whether Section 23(1-A) (providing additional compensation) applies to awards made in such acquisition proceedings.

RULE

• Section 23(2) (Post-1984 Amendment): "the court shall in every case award a sum of 30 percent on such market value, in consideration of the compulsory nature of the acquisition.” (Raised from 15% before 1984).

• Section 30(2) (Transitional Provision): Makes the amended Section 23(2) apply, and be deemed to have applied, to any award made by the Collector or Court, or order passed by the High Court/Supreme Court in appeal, after April 30, 1982 and before the commencement of the Act (September 24, 1984).

JUDGEMENT AND ANALYSIS

1. On Higher Solatium (Section 23(2) and 30(2)):

• The court observed that Section 23(2) itself has no general retrospective operation. Its retrospective application is governed solely by the Transitional Provision, Section 30(2), whose purpose is to clarify how the operative parts of the amendment take effect during the transition period.

• The court referenced Bhag Singh v. Union Territory of Chandigarh which established that the benefit of higher solatium (30%) must be granted if the award was made during the interregnum period (April 30, 1982 to September 24, 1984), or if an appeal against such an award was pending as of April 30, 1982, or filed thereafter.

• The Supreme Court held that to avoid a construction of Section 30(2) that would be vulnerable to attack under Article 14 (if it only applied to the very first award but not subsequent awards in the same proceedings), and to give effect to the remedial purpose of the provision, the amended Section 23(2) must be applied.

• Conclusion for Issue (a): The benefit of 30% solatium is applicable as the case falls within the retrospective effect created by Section 30(2).

2. On Additional Compensation (Section 23(1-A) and 30(1)):

• The court examined the retrospective clause for additional compensation (Section 30(1)).

• Section 30(1)(a) applied the benefit to proceedings pending before the Collector as of April 30, 1982, in which no award had been made before that date.

• Section 30(1)(b) applied the benefit to proceedings commenced after April 30, 1982.

• In the present case, the acquisition proceedings began in 1967, and the Collector's award was made in 1969. Therefore, the proceedings were not pending before the Collector as of April 30, 1982, and they did not commence after that date.

• Conclusion for Issue (b): Since the proceedings had already concluded before the Collector by the relevant date (April 30, 1982), the claimant is not entitled to additional compensation provided under Section 23(1-A).