Raghuveer Singh v. Rajasthan Housing Board — 1990 DIGILAW 17 (RAJ)

JUDGMENT 1. 1. A limited controversy is involved in the present writ petition and is as to whether in land acquisition proceedings in respect of acquisition of land which were pending under the Rajasthan Land Acquisition Act, 1953 (for Short the State Act) on 30th day of April 1982, the day of introduction of Land Acquisition Amendment Bill in the House of People, though the award under the State Act was given before the extension of the Land Acquisition Act, 1894 (for Short, the Central Act) to this State on September 24, 1984, the person in whom the land was vested and whose land was acquired is entitled in interest Under Section 3 of the Central Act and solatium Under Section 23(2) of the Central Act, the question is also as to whether the amount of 12% p.a. on the market value as awarded Under Sub-section (1-A) of Section 23 of the Central Act is a part of compensation or interest ? If it forms part of compensation whether the claimant is entitled in interest on the aforesaid amount ? 2. The facts are simple and are not disputed and they are these. A notification Under Section 4(1) of the State Act was published on January 13, 1982, in respect of total land of 2570 beghas and 15 biswas of villages of Tehsil Sanganer, District-Jaipur for housing scheme of the Rajasthan Housing Board, respondent No.1. In the aforesaid land, agricultural land bearing khasra No. 177 measuring 50 bighas belonging to the petitioner was also included. In view of the urgency, the State Government in exercise of his powers Under Section 17(4) of the State Act dispensed with the compliance of the provisions of Section 5A of the said Act. The land was acquired under emergency powers and direction was given to take the possession, which possession was taken on May 24, 1982. Thereafter, a notice Under Section 9 of the State Act was issued on June 7, 1982 to file claim for compensation and the petitioner filed his claim for compensation along with evidence in support thereof. Ultimately, vide his award dated June 29, 1983, the Officer on Special duty awarded a total sum of Rs. 10,94,036/-to the petitioner. Thereafter, a notice Under Section 9 of the State Act was issued on June 7, 1982 to file claim for compensation and the petitioner filed his claim for compensation along with evidence in support thereof. Ultimately, vide his award dated June 29, 1983, the Officer on Special duty awarded a total sum of Rs. 10,94,036/-to the petitioner. The petitioner thought that the award was not in accordance with the then prevailing market value of the land and therefore he filed an application Under Section 18 of the Central Act before the Land Acquisition Officer for making the reference to the court and the reference is still pending in the court. The amount of Rs. 10,94,036/- was received by the petitioner from the Housing Board on July 2, 1987. 3. The Central Act was extended to the State of Rajasthan w.e.f. September 24, 1984. Section 23(1A), of the said Act provides that in addition to the market-value market-value of the land, as provided in Sub-section (1), the court shall in every case award an amount calculated at the rate of twelve per centum per annum on such market-value for the period commencing on and from the date of the publication of the notification Under Section 4(1) in respect of such land to the date of the award of the Collector or the date of taking possession of the land, whichever is earlier. Sub-section (2) of Section 23 provides that in addition to the market-value of the land, as provided in Sub-section (1) of Section 23, the court shall in every case award a sum of thirty per centum on such market-value, in consideration of the compulsory nature of the acquisition Under Section 34 of the Central Act, when the amount of compensation is not paid, or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with the interest thereon at the rate of nine per centum per annum from the time of taking possession until it shall have been so paid or deposited. Under the proviso to that section, if such compensation or any part thereof is not paid or deposited within a period of one year from the date on which possession is taken, interest at the rate of fifteen per centum per annum shall be payable from the date of expiry of the said period of one year on the amount of compensation or part thereof which has not been paid or deposited before the date of such expiry. 4. The Land Acquisition (Rajasthan Amendment) Act, 1987 (for short, the Rajasthan Amendment Act) was promulgated by the Governor of Rajasthan and Section 56 was added after Section 55 in the Central Act. Sub-sections (8) and (9) of Section 56 as added by the Rajasthan Amendment Act are reproduced here which read as under: "(8) In a proceeding where the amount of compensation has been determined before the commencement, of the Land Acquisition (Rajasthan Amendment) Act, 1987, whether by the Collector or by the Court the amounts in addition to the market value of the land as specified in Sub-section (1A) and Sub-section (2) of Section 23 shall be further paid, after adjustment of any sum paid earlier under the said Sub-section, by the Collector to the persons to whom compensation was payable or paid. These amounts shall be payable in every proceeding and in regard to every award as specified in Sub-sections (1) and (2), of Section 30 of the Land Acquisition (Amendment) Act, 1984 (68 of 1984). (9) Where, in the cases as specified in Sub-sections (2) and (3) of Section 30 of the Land Acquisition (Amendment) Act, 1984 (68 of 1984) interest is payable or has been paid under Section 28 or Section 34, the amount of such interest shall be redetermined and paid after adjustment of any sum paid earlier under the said sections by the Collector at the respective rates specified in and in accordance with the provisions of the said sections as amended by the said Act." 5. An application was filed by the petitioner after the aforesaid introduction of Sub-sections (8) and (9) in Section 56 of the Central Act by the Rajasthan Amendment Act, and the petitioner claimed a sum of Rs. 45,759/- at 12% from the date of Notification i.e. January 13, 1982 to the date of taking the possession i.e. May 24, 1982 and a further sum of Rs. 45,759/- at 12% from the date of Notification i.e. January 13, 1982 to the date of taking the possession i.e. May 24, 1982 and a further sum of Rs. 3,14,379/- being 30% of the determined market value of the land in dispute in the original award of Rs. 10,47,931.40P along with the interest of Rs. 65,233/- at the rate of 9% p.a. 24, 1982 to July 1, 1987 (the amount having been paid on July 2, 1987). The petitioner also claimed the interest for the aforesaid further period on the amount of Rs. 10,94,036/- at the rate of 15% after the expiry of one year. The Officer on Special Duty of the Rajasthan Housing Board Jaipur under his order dated August 30, 1988, awarded the following amount: (i) Interest under Sub-section (1A) of Section 23 of Central Act from 13-1-82 the date of Notification Under Section 4(1) to 24-5-82 the possession of land was taken from the petitioner. Rs. 45,132.82 (ii) 30% solatium on the amount of Rs. 3,14,379.42 Rs. 10,17,931.40 (iii) Interest at the rate of 9% p.a. on the total amount of Rs. 13,62,310.80 from 24-5-82 to 23-5-83 Rs. 1,22,607.97 (iv) Interest at the rate of 15% p.a. on the amount of Rs. 13,62,310.80 from 14.5.83 to 29.6.83 Rs. 19,594.88 Total Rs. 5,01,715.09 Because an amount of Rs. 46,105/- was paid, it was adjusted and it was ordered that the petitioner is entitled to Rs. 4,55,610.09. 6. A perusal of the aforesaid order of the Officer on Special Duty will show that it has not treated the amount of Rs. 45,132.82P, which was awarded at the rate of 12% p.a. under Sub-section (1A) of Section 23 of the Central Act as the amount of compensation, but it has treated as interest and that is why the said amount has not been included while arriving at the total amount of compensation. It would appear that Rs. 10,47,931.40P were awarded as compensation and a sum of Rs. 3,14,379.40P were awarded by the Officer on Special duty under Sub-section (2) of Section 23 of the Central Act, and, if the aforesaid amount is added in the amount of Rs. 10,47,931.40, it comes to Rs. It would appear that Rs. 10,47,931.40P were awarded as compensation and a sum of Rs. 3,14,379.40P were awarded by the Officer on Special duty under Sub-section (2) of Section 23 of the Central Act, and, if the aforesaid amount is added in the amount of Rs. 10,47,931.40, it comes to Rs. 13,62,310.82 and it is on this amount that the interest at the rate of 9% p.a. Under Section 34 and interest at the rate of 15% p.a. from the date of award till June 29, 1983, has been paid. No interest on the amount of Rs. 45,132.82 awarded under Sub-section (1A) of Section 23 of the Central Act has been awarded. 7. The question therefore is as to whether the amount awarded under Sub-section (1A) of Section 23 of the Central Act is the amount of compensation or it has been awarded as interest ? Section 23 appears in Part III of the Central Act whereas Section 34 appears in Part v. of that Act. Section 23 has no relevance with interest. It only provides the matters to be considered in determining compensation. Sub-section (1A) of Section 23 of the Central Act is reproduced here which reads as under: "(1A). In addition to the market value of the land as above, provided, the court shall in every case award an amount calculated at the rate of twelve per centum per annum on such market value for the period commencing on and from the date of the publication of the notification under Section 4, Sub-section (1), in respect of such land to the date of the award of the Collector or the date of taking possession of the land, whichever is earlier. Explanation:- In computing the period referred to in this Sub-section, any period or periods during which the proceedings for the acquisition of the land were held up on account of any stay or injunction by the order of any court shall be excluded." 8. Explanation:- In computing the period referred to in this Sub-section, any period or periods during which the proceedings for the acquisition of the land were held up on account of any stay or injunction by the order of any court shall be excluded." 8. A bare reading of the above extracted Sub-section (1A) of Section 23 of the Central Act will show that in addition to the market value of the land to be determined, the court in every case, is bound to award an amount calculated at the rate of 12% p.a. on such market-value for the period commencing on and from the date of the publication of the Notification under Section 4(1) in respect of such land to the date of the award of the Collector or the date of taking possession of the land, whichever is earlier. The amount, therefore, is paid by way of compensation and will from the total pack of compensation determined under Section 23 of the Central Act. Thus, the amount awarded under Section 23(1A) of the Central Act is a part of compensation and cannot be said to be interest. If that be so, under Section 34 of the Central Act, interest as provided therein, will have be paid on the aforesaid amount also. Thus, the officer on special duty committed an illegality when he did not award any interest under Section 34 of the Central Act on the amount of Rs. 45,132.82P which was awarded under Sub-section (1A) of Section 23 of the Central Act. 9. As already stated earlier, 15% interest under the provision to Section 34 of the Central Act shall only be awarded after the expiry of one year from the date of taking of possession of the land i.e. May 24, 1983 upto June 29, 1983 and not upto July 2, 1987 when the payment of compensation is said to have been made to the petitioner. 10. The question is as to whether the petitioner is entitled to the payment of the amount of interest under Section 34 upto the date of payment or not ? Sub-sections (8) and (9) of Section 56 of the Central Act had been added in the said Act after Section 55 by the Rajasthan Amendment Act which have already been extracted in the earlier part of this order. Sub-sections (8) and (9) of Section 56 of the Central Act had been added in the said Act after Section 55 by the Rajasthan Amendment Act which have already been extracted in the earlier part of this order. As per Sub-section (3) of Section 55 by the Rajasthan Amendment Act which have already been extracted in the earlier part of this order. As per Sub-section (3) of Section 1 of the Rajasthan Amendment Act the said Act came into force on January 3, 1987.Under Sub-section (8) of Section 56 of the Central Act in all cases where the amount of compensation has been determined before the commencement of the Rajasthan Amendment Act i.e. before January 3, 1987, whether by the Collector or by the Court, the amount in addition to the market value of the land specified in Sub-section (1A) and Sub-section (2) of Section 23 has to be further paid after adjustment of any sum paid earlier under the said Sub-sections by the Collector to the persons to whom compensation was payable or paid. These amounts shall be payable in every proceeding and in regard to every award as specified in Sub-sections (1) and (2) of Section 30 of the Land Acquisition (Amendment) Act, 1984 (68 of 1984). Therefore, even if the court would have disposed of the reference pending before it, in this case it has not been disposed of, it was the Collector who was required under Sub-sections (8) of Section 56 of the Central Act to pay the additional amount under Sub-section (1A) of Section 23 of the Central Act. Therefore, notwithstanding in this case that the award under the State Act had been made on June 29, 1983, the provisions of Sub-sections (8) and (9) of Section 56 of the Central Act will be attracted and the claimant had a right to file an application before the Collector for payment of the additional amount under the aforesaid provisions. But it could only be done. If the proceedings were pending on April 30, 1982, the date of introduction of the Amendment Bill of 1982 and it if the proceedings were not pending on the aforesaid date then the provisions of Sub-sections (8) and (9) of Section 56 of the Central Act could not have been attracted. But it could only be done. If the proceedings were pending on April 30, 1982, the date of introduction of the Amendment Bill of 1982 and it if the proceedings were not pending on the aforesaid date then the provisions of Sub-sections (8) and (9) of Section 56 of the Central Act could not have been attracted. In the instant case, as already stated earlier, a notification under Sub-section (1) of Section 4 was only issued on January 13, 1982 and possession of the land was taken on May 24, 1982. Award was made on June 29, 1983. Therefore, the proceedings under the State Act were pending on April 30, 1982 as aforesaid and the provisions of Sub-sections (8) and (9) of Section 56 of the Central Act shall be attracted. Under Sub-section (9) of Section 56 of the Central Act where in the cases as specified in Sub-sections (2) and (3) of Section 30 of the Act of 1984 (68 of 1984) interest is payable or has been paid under Section 28 or Section 34, the amount of such interest shall be re-determinated and paid after adjustment of any sum paid earlier under the said sections by the Collector at the respective rates specified in and in accordance with the provisions of the said sections as ammended by the said Act. Therefore, in all such cases in which the acquisition proceedings were pending under the State Act on April 30, 1982, though the award might not have been made before the Central Act was extended to the State of Rajasthan, which as stated earlier was extended to the State of Rajasthan on September 24, 1984, interest will have to be paid under Section 34 of the Central Act to the claimant. In the instant case it does not appear to have been disputed that the interest is payable and that is why the Officer on Special Duty on the application of the claimant, and because it was not contested on behalf of the Rajasthan Housing Board, allowed the interest under Section 34. It has already been said earlier that the interest was payable under Section 34 on the amount paid under Sub-section (1A) of Section 23 of the Central Act, but it has not been paid. It has already been said earlier that the interest was payable under Section 34 on the amount paid under Sub-section (1A) of Section 23 of the Central Act, but it has not been paid. 9% amount is therefore, payable on the amount paid under Sub-section (1A) of Section 23 of the Central Act and 15% interest has been awarded after one year from the date of taking possession, but it has been awarded upto June, 29, 1983. It appears that the date June 29, 1983 has been chosen because it was on that date the award has been made. In other words 15% interest has been made payable only upto the date of award and not upto the date of payment of amount of compensation after one year's period for which the interest at the rate of 9% is payable under Section 34 of the Central Act. A bare reading of the provision to Section 34 of the Central Act will leave no manner of doubt that if compensation or any part thereof is not paid or deposited within a period of one year from date on which possession is taken, interest at the rate of fifteen per centum per annum shall be payable from the date of expiry of the said period of one year on the amount of compensation or part thereof which has not been paid or deposited before the date of such expiry. 9% interest is payable from the date of taking of possession of the land until the amount of compensation shall have been paid or deposited. If under Section 34 of the Central Act the interest is payable at the rate of 9% from the date of taking possession until the amount shall have been paid or deposited, then after the expiry of one year, 15% interest under the provision to Section 34 of the Central Act deals with payment, Under Sub-section (1) of Section 31 on making an award under Section 11, the Collector shall tender payment of the compensation awarded by him to the persons interested entitled thereto according to the award and shall pay it to them unless prevented by come one or more of the contingencies mentioned in Sub-section (2). The contingencies mentioned under Sub-section (2) of Section 31 are (i) if the claimant does not give consent to receive it, (ii) if there is no person competent to alienate the land, or (iii) if there is any dispute as to the title to receive the compensation, or as to the apportionment of it. In case of the aforesaid contingencies the Collector has to deposit the amount of the compensation in the Court to which a reference under Section 18 would be submitted. Under the first proviso to Sub-section (2) of Section 31, any person admitted to be interested may receive such payment under protest as to the sufficiency of the amount. Under second proviso to the aforesaid Sub-section (2) no person who has received the amount otherwise than under protest shall be entitled to make any application under Section 18. Under proviso III to Sub-section (2) of Section 31 nothing contained therein shall affect the liability of any person who may receive the whole or any part of any compensation awarded under that Act to pay the same to the person lawfully entitled, thereto. Section 32 of the Central Act provides for investment of money deposited in respect of lands belonging to persons incompetent to alienate. It is the duty of the Collector under Section 31 of the Central Act for making award under Section 11 and tender payment of the compensation awarded by him to the persons interested entitled thereto according to the award and to pay them unless prevented by some one or more of the contingencies mentioned in Sub-section (2). It is not known whether any contingencies had arisen in this case and the Collector had deposited the amount of compensation in the court to which admittedly a reference under Section 18 of the Act has been made. Therefore if the amount of compensation had been deposited in the court, had been offered to the claimant, no interest under Section 34 of the Central Act would by payable. Interest under Section 34 of the Act is only payable upto the date the amount shall have been so paid or deposited as aforesaid. A question had arisen in the case of Prahladi Devi and Ors. v. State of Rajasthan, 1986 RLR-971 whether Section 34 in respect of payment of interest will apply to the proceedings under the State Act or not ? A question had arisen in the case of Prahladi Devi and Ors. v. State of Rajasthan, 1986 RLR-971 whether Section 34 in respect of payment of interest will apply to the proceedings under the State Act or not ? It was held that subsequent legislation made by the Parliament providing for higher rate of interest and solatium had the effect of repealing the repugnant State law providing lesser amount of compensation. The Court was not called upon to decide the controversy which has been raised in this case and it only said that a claimant is entitled to 15% p.a. interest under Section 34 of the Central Act from the date of expiry after the date of taking possession. It did not decided upto which date 15% interest is payable. In my opinion, under Section 34 of the Central Act interest at the rate provided therein i.e. 9% for a period of one year from the date of taking possession and 15% thereafter is only payable until the amount of compensation shall have been paid or deposited, as stated, earlier, under Section 31 of the Central Act. Under the aforesaid provisions of Section 34, interest is not payable upto the date of award as has been done in this case. Therefore, if the amount of compensation had been paid or deposited under Section 31 as aforesaid only upto the aforesaid date the interest shall be payable, or if not so deposited or paid the aforesaid interest shall be payable upto the date of payment. 11. A perusal of the writ petition will show that all that has been stated therein is that the amount was paid on July 2, 1987. It is not mentioned whether the amount was offered to the petitioner in view of contingencies mentioned in Sub-section (2) of Section 31, it was deposited in the court to which reference has now been made and if so, when it was deposited. The Officer on Special duty is directed to look into the matter and in case the amount was not paid or deposited in the court under Section 31, then the petitioner shall be entitled to payment of interest at the rate of 15% from may 24, 1983 to the date of payment. He will be entitled to the amount of interest not only on the amount of Rs. 13,62,310.80 but also on the amount of Rs. He will be entitled to the amount of interest not only on the amount of Rs. 13,62,310.80 but also on the amount of Rs. 45,132.82P which has been ordered to be paid under Sub-section (1A) of Section 23 of the Central Act. In other words, in calculating the amount of compensation instead of Rs. 13,62,310.80 the figure shall be arrived after adding Rs. 45,132.82P i.e. Rs. 14,07,443.64P But so far as the amount of compensation of Rs. 10,47,931.40P is concerned, which was ordered to be paid under the order of the Officer on Special Duty on September 30, 1988, the petitioner shall be entitled for interest on this excess amount under Section 34 of the Central Act as aforesaid upto the date of payment. 12. Consequently, the writ petition is partly allowed and it is held and directed that the petitioner is entitled to the interest under Section 34 of the Central Act even on the sum of Rs. 45,132.82P ordered to be paid to the petitioner under Sub-section (1A) of Section 23 of the Central Act. It is also held that in case the payment of amount of compensation is not made under Section 31 of the Central Act or is not deposited in the court, then the petitioner is entitled for interest at the rate of 15% after the expiry of one year from the date of taking possession i.e. May 24, 1983, to the date of payment. In case the amount was paid or had been deposited Under Section 31 of the Central Act, then the interest shall be paid only upto that date on the amount so deposited, but on the excess amount which amount shall include Rs. 45,132.82P determined Under Sub-section (1A) of Section 23 of the Central Act under order dated August 30, 1988, the petitioner is entitled to interest under Section 34 of the Central Act on the excess amount ordered to be paid and the interest shall be calculated upto the date of payment of the excess amount. The Officer on Special Duty is directed to re-determine the amount of interest in the light of the observations made above, as soon as possible but in no case later than two months. The parties are directed to present themselves before the Officer on Special Duty of the Rajasthan Housing Board on January 30, 1990.Petition partly allowed. *******