Nabibhai Alibhai - Deceased Through Heirs v. State of Gujarat
2014-12-18
C.L.SONI, JAYANT PATEL
body2014
DigiLaw.ai
JUDGMENT : Jayant Patel, J. Rule. Mr.Rakesh Patel, learned AGP waives service of notice of Rule for respondents No.1, 2 and 3. With the consent of the learned Counsel appearing for both the sides, the petition is finally heard. 2. The short facts of the case appear to be that for the acquisition of the land in question together with the other lands, Notification under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as ‘the Act') was issued on 18.4.2005. Thereafter, Notification under Section 6 of the Act was published on 4.5.2005. Thereafter, the award was passed under Section 11 of the Act on 25.7.2007. Some of the land owners had raised the dispute under Section 18 of the Act and such disputes were referred to the Reference Court for adjudication. The Reference Court, vide judgment and award dated 29.12.2012, directed for additional compensation and on the aspect of interest under Section 28 of the Act, it was directed that the interest shall be available at the rate of 9% per annum for the first year and at the rate of 15% per annum from the subsequent year from the date of taking over of the possession until the amount is paid to the claimants/owners of the land. 3. The petitioner herein is one of the land owners, whose case was covered by the said Notification, made an application under Section 28A of the Act. The said application came to be allowed by the Special Land Acquisition Officer and as per the order dated 3.11.2014, it was mentioned that as per the order of the District Court, the interest shall be admissible at the rate of 9% per annum for the first year and at the rate of 15% per annum for the subsequent years from the date of taking over of the possession until the amount is paid. However, in the calculation-sheet of the supplementary award the interest is made restricted up to 29.12.2012, i.e. the date on which the District Court passed the award for additional compensation. Therefore, under these circumstances, the petitioner has approached this Court by the present petition. 4. We have heard Mr.Gandhi, learned Counsel appearing for the petitioner and Mr.Rakesh Patel, learned AGP for the respondents. 5.
Therefore, under these circumstances, the petitioner has approached this Court by the present petition. 4. We have heard Mr.Gandhi, learned Counsel appearing for the petitioner and Mr.Rakesh Patel, learned AGP for the respondents. 5. It is an undisputed position that the application under Section 28A of the Act was made by the petitioner and it is also an undisputed position that the application under Section 28A of the Act was allowed and the interest as mentioned in the order is until the amount is paid. However, in the calculation-sheet the interest is made restricted up to the award passed by the District Court under Section 18 of the Act. 6. As per the statutory provisions of Section 28, in land acquisition matter whenever any additional compensation is finalized, the reference Court would order interest at the rate of 9% per annum for the first year from the date of taking over of the possession and at the rate of 15% per annum for the subsequent year until the amount is paid to the land owner or is deposited with the Court, whichever is earlier. At this stage, we may refer to the decision of this Court in the case of Vyas Kiritbhai Chandrakantbha v. Special Land Acquisition Officer and Ors. Decided on 23.1.2013 in Special Civil Application No.7506 of 2012, wherein this Court had observed thus:- It is undisputed position that the application has been granted under Section 28A of the Act and the payment of compensation was to be paid is paid. It is also admitted fact that the interest has been paid as per the provision of the Act by the Competent Authority upto 1.2.2008 but it appears that the calculation of the interest has been made upto the date on which the District Court passed the award but has not been made until the amount is actually paid to the petitioner. As per the provisions of the LAQ Act, the interest is payable for the first year @ 9% per annum and for subsequent year @ 15% per annum until the amount is paid or deposited with the Court whichever is earlier.
As per the provisions of the LAQ Act, the interest is payable for the first year @ 9% per annum and for subsequent year @ 15% per annum until the amount is paid or deposited with the Court whichever is earlier. It is not in dispute that the Competent Authority has found the case of the petitioner as covered under Section 28A of the Act and the petitioner found entitled to get the benefit of the award passed by the reference Court in respect of other similarly situated claimants, whose lands were also acquired pursuant to the said acquisition. Under the circumstances, the interest on the additional compensation under Section 28A is required to be paid until the amount is actually paid or deposited with the Court whichever is earlier. It is an admitted position that in the present case, the actual compensation has been paid only on 14.5.2009 but the interest has been calculated @ 15% per annum upto 1.2.2008. The contention raised on behalf of the State Government that there is no provision under Section 28A of the Act for payment of interest can hardly be countenanced for the simple reason that, once the interest is payable under the LAQ Act, for the additional amount of compensation, the liability to pay interest would continue till the amount is actually paid and the acquiring body would be required to pay the interest upto that date. As the interest has not been paid for the said period, the appropriate directions deserves to be issued. 7. More or less similar contention has been raised by the learned AGP that there is no express provisions to pay interest under Section 28A of the Act and, therefore, this Court may not pass specific order for payment of interest at the rate of 15% per annum after the award of Reference Court. 8. In our view, the contention cannot be countenanced for the same reason as observed by this Court earlier in the above referred decision.
8. In our view, the contention cannot be countenanced for the same reason as observed by this Court earlier in the above referred decision. The entertainment of such contention would run counter to the statutory scheme of the Land Acquisition Act, inasmuch as once the additional compensation is fixed and finalised in normal circumstances the Court would award the interest at the rate of 9% per annum for the first year from the date of taking over of the possession and for subsequent year, such shall be at the rate of 15% per annum. Therefore, we do not find that the contention should detain us further. 9. In view of the aforesaid observations and discussions, the order of the authority so far as not expressly awarding or calculating interest at the rate of 15% per annum from the date of award of the District Court until the date of the award is passed and even for the subsequent period until the additional amount is paid or deposited with this Court deserves to be modified. Hence, the following order:- (a) The respondents are directed to calculate the interest at the rate of 15% per annum on the additional amount of compensation as granted vide order dated 3.11/5.11-2014 - Annexure-A from 29.12.2012 until 3.11.2014 and further interest at the same rate until the amount is actually paid to the petitioner or is deposited with the Court, whichever is earlier. The above exercise of calculation of interest shall be made within a period of three weeks from the date of receipt of the order of this Court. 10. The petition is allowed to the aforesaid extent. Considering the facts and circumstances, no order as to costs. Rule is made absolute accordingly. Direct service is permitted. Petition allowed.