Ranjit Kumar Paul v. State of Tripura — 1996 DIGILAW 170 (GAU)

This appeal is directed against the judgment and award dated 18.6.1987 of the Land Acquisition Judge, West Tripura, Agartala in Misc LA Case No.62 of 1984 by which the learned Land Acquisition Judge granted the application under section 18 of the Land Acquisition Act (hereinafter referred to as the Act) filed by the appellant and allowed him to get a further sum of Rs.70,660.45 with interest at the rate of 9% per annum with effect from 30.3.81 till realisation of the amount. 2. I have heard Mr. S. Deb. the learned senior counsel appearing on behalf of the appellant and Mr. UB Saha, learned Government Advocate appearing on behalf of the respondents. 3. A detailed narration of the facts in this case is not necessary as the only question which is involved in this appeal is whether the appellant is entitled to get compensation at the rate of 15% per annum for the period interventing between expiry of one year from the date of taking over possession and till the payment of compensation. 4. It is an admitted fact that although the land under reference was acquired by a notification dated 18.3.82 published in the Extra Ordinary issue of Tripura Gazette on 9.4.82, the possession of the acquired land was taken over by the respondents on 3 0.3.81. Thereafter the Land Acquisition Collector made the award on 28.9.82 and by this award he assessed the compensation of the acquired land at Rs.50,827.87 which included solatium at the rate of 15% and interest at the rate of 6% per annum. Even though the Land Acquisition Collector made the award on 28.9.82, it was stated by the appellant that he received the compensation money awarded by the Land Acquisition Collector on 5.7.87 i.e. long after expiry of one year from the date of taking over possession of the acquired land. 5. As the matter came to learned Land Acquisition Judge under section 18 of the Act, the Land Acquisition Judge considered the evidence adduced by the parties and held that the appellant was entitled to get a further sum of Rs.70,660.45 along with interest at the rate of 9% per annum with effect from 30.3.81 i.e. from the date of taking over possession of the acquired land till realisation of the amount. The grievance of the appellant is that he was entitled to get interest at the rate of 15 % per annum on compensation for the period intervening between the expiry of one year from the date of taking over possession and till the payment of compensation. 6. It is not disputed that the learned Land Acquisition Judge granted interest at the rate of 9% per annum for the entire period i.e. from the date of taking over possession till the payment or deposit is made. Mr. S. Deb, the learned senior counsel appearing on behalf of the appellant has contended that this finding of the learned Land Acquisition Judge is erroneous in view of the provisions laid down under sections 28 and 34 of the Act. Section 28 of the Act envisages that the awardee will be entitled to get interest at the rate of 9% per annum on the excess amount from the date of taking over possession. But proviso to section 28 of the Act envisages that the awardee will be entitled to get interest at the rate of 15% per annum from the date of expiry of the said period of one year on the excess amount until it is paid. Proviso to section 34 of the Act envisages that the awardee will be entitled to get interest at the rate of 15 % per annum 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. 7. A careful reading of this section 34 of the Act makes it clear that this section contemplates two periods. According to this section, for the first year from the date of possession the awardee will be entitled to get interest at the rate of 9% per annum on the amount of compensation till payment. The second period starts after expiry of the first period and if payment is not made by the first year from the date of taking over possession then the awardee will be entitled to get interest at the rate of 15% per annum on the compensation for the intervening period between the expiry of one year from the date of taking over possession and till the payment or deposit of compensation is made. 8. 8. In the instant case it would appear from the judgment of the learned Land Acquisition Judge that interest at the rate of 9% per annum for the entire period has been granted although it is a fact that the Land Acquisition Collector made the payment of the compensation money long after expiry of one year from the date of taking over possession of the acquired land. Therefore, in view of the provisions of law discussed above the appellant is entitled to get interest at the rate of 9% per annum from the date of taking over possession for one year thereafter he is entitled to get interest at the rate of 15% on the compensation amount till the date of deposit made by the Land Acquisition Collector. 9. In course of his arguments Mr. S. Deb dealt with the question as to whether interest visualised under section 28 of the Act is a part of the compensation or not. In view of the decision of the Supreme Court rendered in the case of Shree Vijay Cotton and Oil Mills Ltd vs. State of Gujrat, reported in (1991) 1 SCC 262 interest as visualised under section 28 of the Act is not a part of the compensation. 10. For the foregoing discussion, I hold that the appellant is entitled to get interest at the rate of 9% per annum on compensation from the date of taking over possession of the acquired land for one year and thereafter at the rate of 15% per aunum all the date of deposit made by the Land Acquisition Collector. The amount already paid shall, however, be deducted from the total amount. 11. The judgment/award of the learned trial Court is accordingly modified to the extent as indicated above but in the circumstances the parties are directed to bear their own costs. The appeal is allowed.