The Punjab Land Reforms Act,1972
Section 10. Amount payable for the surplus area
(1) The Collector or the officer authorised by the State Government in this behalf shall determine the amount to be paid for the land which has vested in the State Government under section 8, in accordance with the priciples hereinafter set out, that is to say
(i) for the first three hectares of land, twelve times the fair rent, subject to a maximum of five thousand rupees per hectare;
(ii)for the next three hectares of land, nine times the fair rent subject to a maximum of three thousand seven hundred and fifty rupees; per hectare; and
(iii) for the reamining land, six times the fair rent, subject to a maximum of two thousand and five hundred rupees per hectare.
Explanation ” For the purposes of this sub-section, `fair-rent shall mean the value of one fifth of the gross produce of the land determined in the prescribed manner by the Collector or the officer authorised in this behalf by the State Government.
(2) For the purposes of sub-section (1), the Collector or the officer authorised by the State Government shall prepare a statement in such form and manner as may be prescribed and shall, after following the prescribed procedure, apportion the amount amongst the persons, including tenants, having interests in the land.
(3) where in the surplus area of any person mortgagee rights have vested in the State Government, the amount payable to the mortgagee shall be the mortgage money due to the mortgagee, or the amount payable under this section, whichever is less.
(4) The amount shall be payable either in lump sum or in half-yearly instalments not exceeding fifteen in the manner prescribed.
Provided that the amount shall be applied firstly to discharge Government dues, secondly to meet the claims of secured creditors and then to pay dues of other claimants.
The writ petition in this case has acquired the constitutional validity of the provisions of the Act authorizing the declaration, utilization and taking possession of the land declared surplus without making any provision for payment of compensation for structural improvements, cemented khals, valuable standing timber, garden and crops and the amount provided for the land declared surplus and taken possession under Section 10 is illusory and the provisions are illegal, void and utlra vires Articles 300-A of the Constitution and the inherent right of the petitioner to be paid just compensation. However, what is contended by the learned counsel is that Section 10 of the Act, in effect, does not provide for payment of compensation for structural improvements, cemented khals, valuable under timber, garden and crops and that therefore, that provision is ultra vires of Articles 300-A of the Constitution and the inherent right of the petitioner to be paid just compensation Bal Raj ahuja vs. State of Punjab and another,1988 PLJ 423