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Jharkhand High Court · body

2019 DIGILAW 1534 (JHR)

State of Jharkhand, through Executive Engineer, Public Health Department (Road Division) v. Krishna Mahto, S/o Late Lalman Mahto

2019-09-04

SUJIT NARAYAN PRASAD

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JUDGMENT : 1. This writ petition is under Article 227 of the Constitution of India, whereby and whereunder the order dated 30.05.2014 passed in Execution Case No.02 of 1995, is under challenge, whereby and whereunder, the petitioner-State of Jharkhand being aggrieved with the calculation of the awarded amount by the Executing Court, is before this Court. 2. The brief facts of the case of the petitioner as per the pleading made in this writ petition is that the land in question has been notified for acquisition of construction of Balumath Murpa-Lapra Road under Section 4 of the Land Acquisition Act, 1894, the land has been acquired in the year 1976 but the land acquisition proceeding was dropped on 03.11.1976 in view of the amendment incorporated in the Land Acquisition Act, 1894, let the sole respondent to approach before this Court for filing the C.W.J.C. No.2040 of 1990 against the respondent-State and Ors. which was disposed of on 10.01.1991 directing the respondent to file a petition under Section 48 of the Land Acquisition Act and accordingly, the petition was filed for compensation in the Court of Sub Judge-I at Daltonganj being registered as L.A. Case No.9 of 1991, which was decided by coming to the conclusive finding about the rate of compensation at the rate of Rs.6500/-per decimal, the house has been valued at the rate of Rs.17,632/-, the well and tress Rs.1000/-and loss of crop Rs.15000/-per year since 1976 till the date of order dated 31.08.1994, besides the above, the court has allowed the solatium to the tune of 30 per cent as provided under Section 23(2) of the Land Acquisition Act with interest at the rate of 12 per cent per annum out of the amount of excess compensation has been decided to be paid which comes to Rs.7,91,871.60/-. The petitioner-State of Jharkhand has preferred an appeal against the aforesaid award being First Appeal No.145 of 1995(R) which was disposed of vide judgment dated 16.01.2014 and declined to interfere with the same and during the pendency of the appeal an the execution case has been filed being Execution Case No.2 of 1995 for recovery of the awarded amount which has been objected by the petitioner-State of Jharkhand by filing rejoinder about the wrong calculation of the amount of interest but the Executing Court has rejected the said objection and proceeded with the execution proceeding vide order dated 30.05.2014 which is assailed in this writ petition, inter-alia on the ground that the Executing Court has deviated from the awarded amount as per the decree/award passed on 21.09.1994 to the effect that “a sum of Rs.10,00,000/-has already been paid as on 01.02.1999 and the total awarded amount decided to be paid by way of compensation as Rs.07,91,871.60/-along with the interest at the rate of 12 per cent per annum which comes to Rs.18,05467.20/-, grand total comes to Rs.25,97,338.80/-and according to the petitioner-State of Jharkhand, the respondent is only entitled to get the amount of interest upon the principal amount of compensation i.e., upon the amount of Rs.07,91,871.60/-, in terms of the stipulation made in the award by directing to make payment of interest at the rate of 12 per cent per annum till the date of realization but the Executing Court has not appreciated the aforesaid aspect of the matter rather calculated the over interest upon the amount accrued on the basis of 12 per cent per annum interest by calculating it to the tune of Rs.18,05467.20/-and hence, it is nothing but a case of double interest i.e., interest upon interest and hence, is not sustainable in the eye of Law, therefore, the present writ petition. 3. Mr. Arvind Kumar Lall, learned counsel appearing for the respondent has vehemently opposed the submission and ground agitated by the petitioner-State of Jharkhand in the present writ petition by submitting that there is no error committed by the Executing Court rather the Executing Court is executing the award strictly in terms of the adjudication made by the referral Court. 4. Mr. Arvind Kumar Lall, learned counsel appearing for the respondent has vehemently opposed the submission and ground agitated by the petitioner-State of Jharkhand in the present writ petition by submitting that there is no error committed by the Executing Court rather the Executing Court is executing the award strictly in terms of the adjudication made by the referral Court. 4. So far as the contention about the interest upon the interest, it has been submitted that the total amount of Rs.07,91,871.60/-has been awarded to be paid by way of compensation but as on 21.09.1994, the interest upon the said amount of Rs.07,91,871.60/-has been calculated at the rate of 12 per cent per annum which comes to Rs.18,05467.20/-and since the interest at the rate of 12 per cent per annum has been directed to be paid till the date of realization which does suggest that as on 21.09.1994, the interest would be added upon the principal amount of compensation and treating it as a principal amount and the interest at the rate of 12 per cent per annum would be calculated till the final payment as per the award, due to the specific stipulation made in that regard “the interest at the rate of 12 per cent per annum or till the date of realization” and as such the Executing Court while rejecting the rejoinder filed by the petitioner has committed no error/ illegality, hence order suffers from no infirmity and as such, the writ petition may be dismissed. 5. Having heard the learned counsel for the parties and after appreciating their rival submissions, the fact which is not in dispute in this case is that notification under Section 4 of the Land Acquisition Act 1894 was issued for acquisition of the land in question and the acquisition proceeding has been initiated but subsequently, it was dropped which prompted the petitioner-State of Jharkhand to approach before the Court by filing a writ petition which was disposed of by giving liberty to the petitioner to approach before the authority in pursuance to the provision as contained under Section 48 of the Act, 1894 and in terms thereof, an application has been filed by the respondent before the competent authority upon which, the award has been passed by the Land Acquisition Judge by taking decision in terms of the said award for making payment of Rs.07,91,871.60/-. On the basis of the rate calculated and assessed vide judgment dated 31.08.1994 and thereafter, a detailed calculation has been made at the instance of the Court, whereby and whereunder, the interest at the rate of 12 per cent per annum has been calculated till the date of realization apart from the 30 per cent solatium as provided under Section 23(2) of the Land Acquisition Act, 1894. 6. It is evident from the order passed in L.A. Case No.9 of 1991 pertaining to the rate of interest, wherein it has been ordered for making payment of the interest at the rate of 12 per cent per annum out of the amount of excess compensation from the date of possession of the land till the date of payment as required, the part of the order passed in the L.A. Case No.9 of 1991 is being referred which reads as hereunder:- “…..From the facts, circumstances and evidences of the applicants it appears that this is the most il-fated case in which the applicants have been deprived of their land more than 20 years back but still no compensation has been paid. Due to compulsory nature of acquisition of the applicants were deprived from growing vegetables, grames wheat in the land and put the financial recurring loss and harassment to a lot. The present market value of the lands so acquired as transpired in the evidence is at Rs.5000/-to 10,000/-per decimal. I therefore, value the lands so acquired at the rate of Rs.6500/-per decimal and the value of house at Rs.17,632.00 and the pucca well and trees is estimated to the tune of Rs.1000/-. The applicants are entitled to get Rs.15000/-the loss of vegetable, crops and lac per year, since 1976 on wards till the date of this order. The applicants are also entitled for 30 % solatium U/s 23(2) of the L.A. Act with interest at the rate of 12 % per annum out of the amount of excess compensation from the date of possession of the land till the date of payment as required. Let the award be prepared in the name of the applicants accordingly.” 7. The applicants are also entitled for 30 % solatium U/s 23(2) of the L.A. Act with interest at the rate of 12 % per annum out of the amount of excess compensation from the date of possession of the land till the date of payment as required. Let the award be prepared in the name of the applicants accordingly.” 7. At the instance of the Court, the calculation has been made as would appear from page no.36 to the brief which is a part of award as contained under annexure-A, whereby and whereunder, the total amount of compensation has been calculated to the tune of Rs.07,91,871.60/-and interest was calculated as on 21.09.1994 at the rate of 12 per cent per annum which comes to Rs.18,05,467.20/-and grand total comes to Rs.25,97,338.80/-. 8. The award has been questioned by the petitioner-State of Jharkhand by filing the first appeal but the first appellate Court has declined to interfere with the same as would appear from the order passed in an appeal being F.A. No.145 of 1995 (R) dated 16.01.2014 whereby and whereunder, while dismissing the appeal, the judgment and award dated 31.08.1994 and 21.09.1994 passed in L.A. Ref. Case No.9 of 1991 has been upheld with a direction to the Office to prepare the award and making it clear that the amount already paid to the respondent/applicants shall be deducted from the total amount of compensation calculated. Further, it has been directed if the awarded amount is not paid within 90 days from the date of production/receipt of copy of this order, the respondent/applicants shall be at liberty to proceed with the Execution Case No.2 of 1995 and accordingly, the stay granted by the Court has been vacated. 9. The respondent who has already filed the execution case in the year 1995 being Execution Case No.2 of 1995 has proceeded with the said execution proceeding after the order passed by the High Court in the First Appeal No.145 of 1995 (R) and at that juncture, the rejoinder has been filed for making an objection with respect to raising the question of calculation/additional of interest. The State is objecting the calculation of interest by taking the plea that there cannot be interest upon the interest as because, as per the contention of the State of Jharkhand, the interest would only be liable to be paid upon the principal amount of compensation of Rs.07,91,871.60/-and not upon the amount which has been calculated at the rate of 12 per cent per annum which comes to Rs.18,05,467.20/-. 10. This Court in order to answer the aforesaid issue, deem it fit and proper to refer the provision of Section 23(2) of the Land Acquisition Act, 1894 wherein, the provision has been made for payment of the amount of compensation at the rate of market value of the land as also award, a sum of thirty per centum on such market value, in consideration of compulsory nature of the acquisition, apart from that a separate provision as under Section 34 has been incorporated under the Act, 1894 pertaining to payment of interest, whereby and whereunder a provision has been made that if the amount of compensation after the award having been prepared, if paid within a period of one year, the interest at the rate of 9 per cent would be admissible, if the amount would be paid after expiry of the period of one year, the interest would be calculated at the rate of 15 per cent per annum. The provision of Section 23(2) as also Section 34 goes to suggest that these two provisions have been incorporated by the legislation taking into consideration the fact that the nature of acquisition which is compulsory and even if the person from whose possession, the land is being acquired and if acquired, and the land has to be transferred in favour of the State for the public cause and therefore, the provision of the acquisition Act is entirely upon the public cause and if any acquisition of the land is required, interest of individual would not come in the way of the public interest, simultaneously the legislation has taken into consideration the predicament of the land loosers and therefore, a separate provision has been made under the provision of Section 23(2) of the Act, 1894 by providing a provision of solatium at the rate of thirty per centum apart from that, the payment of interest in two different rates of interest i.e., if the amount of compensation would be paid within the period one year, the rate of interest would be nine per cent but if paid, after expiry of the period of one year, it would be at the rate of 15 per cent so that the land loosers may not suffer due to the effect of the acquisition by which the land has been acquired. 11. 11. This Court after taking into consideration the aforesaid provision of Law and considering the fact which is in hand that the adjudication has been made by virtue of the conclusion of proceeding pertaining to L.A. Case No.9 of 1991 by passing an order for making payment of amount of solatium at the rate of 30 per centum as provided under Section 23(2) of the Land Acquisition Act, 1894 with interest at the rate of 12 per cent per annum till the date of payment basis upon which, the award has been prepared on 21.09.1994 and as on 21.09.1994, the interest has been calculated from the date of acquisition of land i.e., from the year 1977-1978 which comes to Rs.18,05,467.20/-apart from the principal amount of compensation on the basis of the market value of the land which comes to Rs.07,91,871.60/-and total comes to Rs.25,97,338.80/-out of which 10 lakhs has been paid by the State of Jharkhand as on 01.02.1999, therefore, out of Rs.25,97,338.80/-, a sum of Rs.10 Lakhs would be deducted and the rest of the amount would be Rs.15,97,338.80/-is to be paid to the respondent as per the stipulation made in the order dated 31.08.1994 pertaining to rate of interest at the rate of 12 per cent per annum till the date of payment which has been affirmed by this Court under its appellate jurisdiction, therefore, the amount of Rs.15,97,338.80/-will be said to be dues as on 21.09.1994 and the respondent would be entitled to get the aforesaid amount at the rate of 12 per cent per annum till the date of realization and if that would not been done, the order passed in land acquisition case would be said to be in defiance that too after having been confirmed by the first appellate Court. 12. In these circumstances, if the rejoinder for making objection to that effect by the State of Jharkhand has been rejected by the Executing Court, it cannot be said that any error has been committed warranting any interference by this Court under Article 227 of the Constitution of India. 13. Accordingly, the writ petition fails and hence it is dismissed. 14. In consequence thereof, I.A.Nos.32 of 2018 and 3034 of 2018 stand disposed of.