Judgment :- G. Sasidharan, J Properties belonging to the petitioners in these Original Petitions have been acquired for the Kallada Irrigation Project. Petitioners are aggrieved for the reason that interest as provided under S.34 of the Land Acquisition Act was not granted when award was passed under S.28A of the Land Acquisition Act. applications under S.28A of the Act were filed by the petitioners since enhanced compensation was granted by the reference court for the lands acquired under the very same notification. 2. R.12A(vi) of the Land Acquisition (Kerala) Rules provides that when there is redetermination of the amount of compensation under S.28A of the Land Acquisition Act on the basis of the award passed by Court in respect of property covered by the very same notification no interest shall be paid for the amount awarded under S.28A. When passing award under S.28A of the Land Acquisition Act interest was not awarded on the compensation amount in the light of the fact that there is prohibition under the above Rule in awarding interest on the amount of compensation payable under S.28A of the Act. O.P. No. 24357 of 1998 was amended by incorporating a prayer for quashing R.12A(vi) of the Land Acquisition (Kerala) Rules. In all the Original Petitions, there is a prayer for directing respondents to disburse interest as provided under S.34 of the Land Acquisition Act on the enhanced compensation awarded under S.28A of the Land Acquisition Act. 3.The contention raised by the 2nd respondent is that when awarding compensation under S.28A of the Land Acquisition Act, no interest can be awarded since there is clear provision in the Land Acquisition (Kerala) Rules which says that no interest shall be paid for the amount awarded under S.28A of the Act. It is in the light of the above contention raised by the 2nd respondent that a prayer was incorporated in O.P. No. 24357 of 1998 by way of amendment to quash the above Rule. 4. S.34 of the Land Acquisition Act provides that 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 interest thereon at the rate of 9% per annum from the time of taking possession till payment of compensation.
4. S.34 of the Land Acquisition Act provides that 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 interest thereon at the rate of 9% per annum from the time of taking possession till payment of compensation. The proviso to S.34 says that if 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 15% per annum has to be paid from the date of expiry of the period of one year on the amount of compensation or part there of which has not been paid or deposited before the date of such expiry. The petitioners would claim that S.34 is applicable to a case in which enhancement in compensation is awarded under S.28A of the Land Acquisition Act 5. S.28 A was incorporated in the statute by way of amendment for the purpose of giving benefit to those who could not claim compensation on making an application under S.18 for making a reference to Court. The above section provides that when the Court allows to the applicant any amount of compensation in excess of the amount awarded by the Collector under S.11, in spite of the fact that other persons from whom property have been acquired have not made applications to the Collector under S.18 will be entitled to get the compensation payable to them redetermined on the basis of the amount of compensation awarded by Court provided a written application to the Collector is made by them within three months from the date of award of the Court. The purpose of including S.28A in the Act is for giving equal benefit to the persons from whom properties have been acquired. A person who files an application under S.18 and gets a reference made to Court for considering the question of enhancement of compensation may be able to get enhanced compensation. At the same time, a person who did not make an application under S.18 of the Land Acquisition Act for making reference to Court will be getting compensation much less than what the other person is getting for the reason that he did not approach the acquisitioning authority by filing an application under S.18 of the Act.
At the same time, a person who did not make an application under S.18 of the Land Acquisition Act for making reference to Court will be getting compensation much less than what the other person is getting for the reason that he did not approach the acquisitioning authority by filing an application under S.18 of the Act. It is for the purpose of bringing about equality among the persons from whom properties are acquired under the same notification, in the matter of giving compensation that S.28A of the Act has been incorporated in the statute by way of amendment. So, the question to be considered here is whether when S.28A of the Act has been incorporated in the Act with the above object, can the State Government make Rules by saying that S.34 of the Act which provides for payment of interest on the amount of compensation is not applicable to cases in which redetermination of compensation is made under S.28A of the Act. A reading of S.28A would make it clear that when redetermination of compensation payable to a person from whom property has been acquired is made under S.28A on the basis of the amount of compensation awarded by Court on a reference, all the benefits that would be available to a person who gets enhancement in compensation on the basis of an award of Court have to be given to a person to whom compensation payable is redetermine under S.28A of the Act. 6. When possession of the property is taken in pursuance of me land acquisition proceedings the person to whom the property belongs is deprived of the right to be in possession of the property. So the compensation payable for acquisition becomes payable to the owner of the property at the time of taking possession of the property from him. So, the owner of the property has a right to get the value of the property at the time when he is dispossessed of the property for the purpose of acquisition. S.34 also provides that when the amount of compensation is not paid or deposited on or before taking possession of the land the Collector has to pay interest on the amount fixed by the Collector at the rate of 9% per annum from the date of taking possession until the amount is paid.
S.34 also provides that when the amount of compensation is not paid or deposited on or before taking possession of the land the Collector has to pay interest on the amount fixed by the Collector at the rate of 9% per annum from the date of taking possession until the amount is paid. It is manifest from what is said in S.34 that the owner of the property is entitled to get interest from the date of taking possession of the property from him and such a provision is made for the reason that on taking possession of the property from the owner he is deprived of enjoying the property and taking income from the property. In the case of a person whose property had been acquired and who did not file an application under S.18 of the Land Acquisition Act for making reference to Court and for that reason did not get enhancement in compensation fixed by Court, interest on the compensation redetermined under S.28A has to be paid from the date of taking possession of the property. What is redetermined under S.28 A of the Land Acquisition Act is the compensation which would have been paid to the owner of the property at the time of taking possession of the property from him. There is no difference between a person who by approaching a Court on reference made to it on his application gets enhancement in compensation and a person who gets the compensation redetermined under S.28A of the Act because what is being paid to the owner of the land on the strength of award passed by Court enhancing the compensation and what is paid to the owner on redetermining the compensation under S.28 A on the basis of an award passed by Court is the compensation the owner of the property is entitled to get for the reason that his property is acquired. That compensation is one which would have been paid at the time of taking possession of the property and hence there is no justification for denying interest on compensation redetermined under S.28A of the Act S.34 of the Act is applicable to a case in which compensation is redetermined under S.28A of the Act. 7.
That compensation is one which would have been paid at the time of taking possession of the property and hence there is no justification for denying interest on compensation redetermined under S.28A of the Act S.34 of the Act is applicable to a case in which compensation is redetermined under S.28A of the Act. 7. In Union of India v. Pradeep Kumari (AIR 1995 SC 2259) the Supreme Court in considering the question whether interest could be awarded on additional amount of compensation payable to the owner of the land on redetermining the compensation under S.28A, held that S.34 of the Land Acquisition Act would be applicable to cases in which compensation is redetermined under S.28A of the Act. 8. There is no provision in the Land Acquisition Act which says that S.34 of the Land Acquisition Act is not applicable to cases in which compensation payable to the land owner is redetermined under. S.28A of the Act. What has to be understood from the provision in the Land Acquisition Act is that S.34 of the Act which provides for payment of interest is applicable to the cases in which compensation payable to the land owner is redetermined under S.28A of the Act. The provision in R.12a(vi) of the Land Acquisition (Kerala) Rules that no interest shall be paid for the amount awarded under S.28A is against the provisions of the Land Acquisition Act and hence it has to be struck down. 8. R.12A(vi) of the Land Acquisition (Kerala) Rules, 1990, is struck down on finding that the petitioners in the Original Petitions are entitled to interest as provided in S.34 of the Land Acquisition Act on the amount of compensation redetermined under S.28A of the Land Acquisition Act. There shall be a direction to the respondents to pay interest to the petitioners on the amount of compensation redetermined as provided in S.34 of the Land Acquisition Act. Original Petitions are allowed as above.