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2022 DIGILAW 1253 (GAU)

Lalthansangi Sailo, D/o Lalhmingthanga Sailo v. Northeast Frontier Railway, R/b the General Manager(Construction)

2022-11-15

NANI TAGIA

body2022
JUDGMENT : Heard Mr. Lalchhanliana Khiangte, learned counsel for the petitioners. Also heard Ms. Zairemsangpuii, learned CGC, appearing on behalf of respondents No. 1 to 5, and Mr. C. Zoramchhana, learned Addl. Advocate General, State of Mizoram, appearing on behalf of respondents No. 6 to 8. 2. The petitioners have filed this writ petition, seeking payment of interest under Sections 28 and 34 of the Land Acquisition Act, 1894, for the plots of lands that have been acquired by the respondent authorities under the following facts and circumstances. 3. The facts which are not in dispute and relevant for the purpose of adjudication of the case, briefly stated, are as under: Pursuant to a notification, dated 29.08.2011(not annexed in the writ petition) for acquisition of land for construction of a new railway line(Bairabi to Sairang); an award, dated 05.07.2012, vide Award No. 5 of 2012, was passed by the District Collector/District Commissioner, Aizawl District, Aizawl, under which award, the compensation amount of Rs. 1,54,200/-and Rs. 1,52,900/-, was determined in respect of petitioners No. 1 & 2, respectively. The aforesaid determination of the compensation amount in respect of petitioners No. 1 & 2 is stated to be the compensation amount for the crops standing on the petitioners’ land. Though in the Award, dated 05.07.2012; the plots of land measuring 69,940.00 sq. ft. and 67,788.00 sq. ft., belonging to the petitioners No. 1 & 2, respectively, were indicated to have been acquired but no compensation amount was assessed and determined by the respondent authorities in respect of the aforesaid land and the respondent authorities without, either, determining the compensation amount of the petitioners’ land and payment thereof, took possession over the land of the petitioners No. 1 & 2, along with others, vide order, M.No.F.14011/189/2008-DC(A)/250, passed on 30.08.2013, by the District Commissioner, Aizawl District, Aizawl. The petitioners, however, were paid the compensation amount determined for the crops standing on their lands as indicated in paragraph No. 3 of the writ petition. Since no compensation was either assessed or paid in respect of the land acquired from the petitioners No. 1 & 2; they, therefore, had submitted an application under Section 28(A) of the Land Acquisition Act, 1894, to the District Collector, Aizawl District, Aizawl, on 19.07.2019, praying for re-determination of the compensation payable to them. Since no compensation was either assessed or paid in respect of the land acquired from the petitioners No. 1 & 2; they, therefore, had submitted an application under Section 28(A) of the Land Acquisition Act, 1894, to the District Collector, Aizawl District, Aizawl, on 19.07.2019, praying for re-determination of the compensation payable to them. The aforesaid application was disposed of by the Deputy Commissioner, Aizawl District, Aizawl, vide order, dated 23.02.2021, issued under Memo. No. F.14011/189/2019-DC(A)/267-27, whereby, while rejecting the prayer of the petitioners No. 1 & 2 for payment of interest under Section 34 of the Land Acquisition Act, 1894; the Deputy Commissioner, Aizawl District, Aizawl, had directed that the petitioners No. 1 & 2 be paid the compensation for their plots of land at the rate of Rs. 200/-per sq.ft. along with 30% solatium as per Section 23(2) and 12% interest as per Section 23(1A) of the Land Acquisition Act, 1894. The Deputy Commissioner, Aizawl District, Aizawl, had also directed that the petitioners No. 1 & 2 should also be paid the interest under Section 28 of the Land Acquisition Act, 1894, as the same benefit has been given by the reference Court and the High Court to other similarly situated persons. Pursuant to the aforesaid directions of the Deputy Commissioner, Aizawl District, Aizawl, the compensation amount payable to the petitioners No. 1 & 2 for their land, was assessed by the Deputy Commissioner, Aizawl District, Aizawl, at Rs. 3,98,72,713/-and Rs. 3,86,45,860/-, respectively, in respect of petitioners No. 1 & 2. The aforesaid amount, inter alia, included 15% interest w.e.f. 31.08.2013, upto 09.12.2020, which is an interest under Section 28 of the Land Acquisition Act, 1894. 4. In the aforesaid backdrop of the facts; the petitioners have raised two-fold grievances in this writ petition, for adjudication, which are as under: (i). That the interest under Section 28 of the Land Acquisition Act, 1894, as directed by the Deputy Commissioner, Aizawl District, Aizawl, has been determined only upto 09.12.2020, whereas, the interest under Section 28 of the Land Acquisition Act, 1894, ought to have been determined and paid to the petitioners No. 1 & 2 till the actual payment was made which is 10.10.2022. Accordingly, the petitioners No. 1 & 2 contend that the interest under Section 28 of the Land Acquisition Act, 1894, should be paid to them for the period w.e.f. 10.12.2020 to 10.10.2022, as well; and, (ii). That the interest under Section 34 of the Land Acquisition Act, 1894, also ought to have been paid by the respondent authorities to the petitioners No. 1 & 2. 5. The respondent-Railways have filed an affidavit-in-opposition by the respondent No. 5, in which affidavit-in-opposition, in paragraph No. 10, it has been contended as under: “10. That the statement made in Para Nos. 8 & 9 of the writ petition is denied. However, the answering respondent stated that as land value was enhanced by the hon'rable court, so interest as per section 28 of LA Act is payable. Whereas section 34 of LA Act deals with payment of interest on account of delay in compensation payment. But in the instant case as per original award payment was made on time. So there was no delay, hence interest u/s 34 is not payable.” 6. The respondents No. 6 to 8 have also filed an affidavit-in-opposition on behalf of the State Respondents, wherein, in paragraphs No. 4 and 5, it has been contended, as under: “4. That with regard to the statements made in paragraph No. 8 of the writ petition, I say that though the claim for payment of interest u/s 34 of the LA Act, 1894 was rejected by the District Collector, reassessment for payment of land value at the rate of Rs. 200/-per sq.ft along with solatium and interest and also interest of 9% & 15% as per Sec 28 of LA Act, 1894 was submitted to the DEO, NF Railway vide F.14011/189/2019 -DC(A)/317 -318 Dt. 26.10.2021. 5. That with regard to the statements made in paragraph No. 9 of the writ petition, I say that calculation of interest till payment is not practicable and assessment made up to 09.12.2020 was the date of preparation of the assessment by the Deputy Commissioner's office.” 7. On the rival pleadings of the parties recorded hereinabove; what calls for determination by this Court, is, as to whether the petitioners No. 1 & 2, in the facts and circumstances of the case, would be entitled to an interest under Sections 28 and 34 of the Land Acquisition Act, 1894. 8. On the rival pleadings of the parties recorded hereinabove; what calls for determination by this Court, is, as to whether the petitioners No. 1 & 2, in the facts and circumstances of the case, would be entitled to an interest under Sections 28 and 34 of the Land Acquisition Act, 1894. 8. There is no dispute at the Bar that an award, dated 05.07.2012, being Award No. 5, was passed by the Deputy Commissioner, Aizawl District, Aizawl, pursuant to a Notification, dated 29.08.2011, for acquisition of land for construction of a new railway line(Bairabi to Sairang). It is also not in dispute that in the Award, dated 05.07.2012, though the land of the petitioners No. 1 & 2, measuring 69,940.00 sq. ft. and 67,788.00 sq. ft., respectively, was indicated to have been acquired; no compensation for the land of petitioners No. 1 & 2 that were indicated to have been acquired by the respondent authorities, was either assessed or paid to them. What was determined in the Award, dated 05.07.2012, and paid to the petitioners No. 1 & 2, was a compensation amount of Rs. 1,54,200/-and Rs. 1,52,900/-, respectively, for the crops standing on their land. The possession of the land of petitioners No. 1 & 2, along with others, was, however, taken-over by the respondent authorities on 30.08.2013, without payment of any compensation to the petitioners No. 1 & 2 for the land that was acquired from them. It is also not in dispute that pursuant to an application, dated 19.07.2019, submitted by the petitioners No. 1 & 2 under Section 28(A) of the Land Acquisition Act, 1894; an order, dated 23.02.2021, was passed by the Deputy Commissioner, Aizawl District, Aizawl, whereby the petitioners were held to be entitled to a compensation at the rate of Rs. 200/-per sq.ft. along with 30% solatium as per Section 23(2) and 12% along with the interest as per Section 23(1A) of the Land Acquisition Act, 1894. While the petitioners No. 1 & 2 have been held to be entitled to the compensation, as above; the Deputy Commissioner, Aizawl District, Aizawl, however, have rejected the prayer of the petitioners No. 1 & 2, for payment of interest under Section 34 of the Land Acquisition Act, 1894. While the petitioners No. 1 & 2 have been held to be entitled to the compensation, as above; the Deputy Commissioner, Aizawl District, Aizawl, however, have rejected the prayer of the petitioners No. 1 & 2, for payment of interest under Section 34 of the Land Acquisition Act, 1894. It is also not in dispute that pursuant thereto, the value of the land of petitioners No. 1 & 2 was assessed and determined by the Deputy Commissioner, Aizawl District, Aizawl, at Rs. 3,98,72,713/-and Rs. 3,86,45,860/-, respectively, in respect of the petitioners No. 1 & 2. The aforesaid amount determined included interest under Section 28 of the Land Acquisition Act, 1894, upto 09.12.2020. The interest under Section 34 of the Land Acquisition Act, 1894, needless to say, was not included in the aforesaid compensation amount determined by the Deputy Commissioner, Aizawl District, Aizawl, because the Deputy Commissioner, Aizawl District, Aizawl, in the order, passed on 23.02.2021, had declined the prayer of the petitioners No. 1 & 2 for payment of interest under Section 34 of the Land Acquisition Act, 1894. 9. Sections 28 and 34 of the Land Acquisition Act, 1894, which are relevant for the purpose of adjudication of this case, is quoted hereinbelow: “28. Collector may be directed to pay interest on excess compensation.-If the sum which, in the opinion of the Court, the Collector ought to have awarded as compensation is in excess of the sum which the Collector did award as compensation, the award of the Court may direct that the Collector shall pay interest on such excess at the rate of [nine per centum] per annum from the date on which he took possession of the land to the date of payment of such excess into Court: [Provided that the award of the Court may also direct that where such excess or any part thereof is paid into Court after the date of expiry of 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 such excess or part thereof which has not been paid into Court before the date of such expiry.] [28A. Re-determination of the amount of compensation on the basis of the award of the Court.-(1) Where in an award under this Part, the Court allows to the applicant any amount of compensation in excess of the amount awarded by the Collector under section 11, the persons interested in all the other land covered by the same notification under section 4, sub-section (1) and who are also aggrieved by the award of the Collector may, notwithstanding that they had not made an application to the Collector under section 18, by written application to the Collector within three months from the date of the award of the Court require that the amount of compensation payable to them may be re-determined on the basis of the amount of compensation awarded by the Court: Provided that in computing the period of three months within which an application to the Collector shall be made under this subsection, the day on which the award was pronounced and the time requisite for obtaining a copy of the award shall be excluded. (2) The Collector shall, on receipt of an application under subsection (1), conduct an inquiry after giving notice to all the persons interested and giving them a reasonable opportunity of being heard, and make an award determining the amount of compensation payable to the applicants. (3) Any person who has not accepted the award under subsection (2) may, by written application to the Collector, require that the matter be referred by the Collector for the determination of the Court and the provisions of sections 18 to 28 shall, so far as may be, apply to such reference as they apply to a reference under section 18.] 34. Payment of interest.-When the amount of such 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 [nine per centum] per annum from the time of so taking possession until it shall have been so paid or deposited: [Provided that 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.]” 10. Explaining the parameters under which Sections 28 and 34 of the Land Acquisition Act, 1894, operates; the Hon’ble Apex Court in Sunder v. Union of India, reported in (2001) 7 SCC 211 , in paragraphs No. 14 and 15, thereof; has held as under: “14. Question of payment of interest would arise only when then compensation is not paid or deposited on or before the date of taking possession of the land. It is inequitable that the person who is deprived of the possession of the land on account of acquisition proceedings is not given the amount which law demands to be paid to him; any delay thereafter would only be to his detriment. There must be a provision to buffet such iniquity. It is for the purpose of affording relief to the person who is entitled to such compensation when the payment of his money is delayed that the provision is made in Section 34 of the Act. That section is extracted below: “34. There must be a provision to buffet such iniquity. It is for the purpose of affording relief to the person who is entitled to such compensation when the payment of his money is delayed that the provision is made in Section 34 of the Act. That section is extracted below: “34. Payment of interest.—When the amount of such 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 nine per centum per annum from the time of so taking possession until it shall have been so paid or deposited: Provided that if such compensation or any part thereof is not paid of 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.” 15. When the court is of the opinion that the Collector should have awarded a larger sum as compensation the court has to direct the Collector to pay interest on such excess amount. The rate of interest is on a par with the rate indicated in Section 34. This is so provided in Section 28 of the Act which is extracted below: “28. If the sum which, in the opinion of the court, the Collector ought to have awarded as compensation is in excess of the sum which the Collector did award as compensation, the award of the court may direct that the Collector shall pay interest on such excess at the rate of nine per centum per annum from the date on which he took possession of the land to the date of payment of such excess into court. Provided that the award of the court may also direct that where such excess or any part thereof is paid into court after the date of expiry of a period of one year from the date on which possession is taken, interest al rate of fifteen per centum per annum shall be payable from the date expiry of the said period of one year on the amount of such excess or thereof which has not been paid into court before the date of such expiry.” 11. On perusal of the decision rendered by the Hon’ble Apex Court in the case of Sunder(supra); it is, thus, noted that interest has to accrue as per Sections 28 and 34 of the Land Acquisition Act, 1894, on the compensation awarded, whether it is as per the award initially passed by the Collector or by the Court later. It is also noticed therefrom, that the question of payment of interest would arise only when the compensation is not paid or not deposited on or before the date of taking possession of the land. In other words, it is the mandate of the law that the compensation is required to be paid on or before the date of taking possession of the land acquired, failing which interest as contemplated under Sections 28 and 34 of the Land Acquisition Act, 1894; would necessarily have to be paid as per the provisions thereof. 12. In the instant case, there is no dispute that the possession of the land of the petitioners No. 1 & 2 was taken-over by the respondent authorities on 30.08.2013, not only, without paying any compensation, but, also, without determining the compensation amount payable to the petitioners No. 1 & 2. 13. The determination of the compensation amount payable to the petitioners No. 1 & 2 for the land that have been acquired from them, came to be determined only on 26.10.2021, by the Deputy Commissioner, Aizawl District, Aizawl, pursuant to an order passed by the Deputy Commissioner, Aizawl District, Aizawl, on 23.02.2021, on an application submitted by the petitioners No. 1 & 2 on 19.07.2019, under Section 28(A) of the Land Acquisition Act, 1894, whereby, the amount of Rs. 3,98,72,713/-and Rs. 3,86,45,860/-, respectively, was determined to be payable in respect of the petitioners No. 1 & 2 for the land that have been acquired from them. 3,98,72,713/-and Rs. 3,86,45,860/-, respectively, was determined to be payable in respect of the petitioners No. 1 & 2 for the land that have been acquired from them. Accordingly, it is an admitted position that the petitioners No. 1 & 2 were not paid the compensation amount for the land acquired from them on 30.08.2013, which is the date when the possession of the petitioners’ land were taken-over by the respondent authorities. 14. In view of the above, since the petitioners were not paid the compensation for the lands acquired from them for lack of assessment made over the value of the petitioners’ land at the time, the award, dated 05.07.2012, was passed; the petitioners No. 1 & 2 would be entitled to be paid an interest as contemplated under Section 34 of the Land Acquisition Act, 1894, on the value of the land w.e.f. 30.08.2013 upto 10.10.2022, which are the dates of the land of the petitioners No. 1 & 2 having been taken possession by the respondent authorities and the date on which the compensation determined, was paid to them by the respondent authorities. Insofar as the claim of the petitioners under Section 28 of the Land Acquisition Act, 1894, is concerned; the assessment of the compensation made by the Deputy Commissioner, Aizawl District, Aizawl, dated 26.10.2021, and the interest awarded to the petitioners No. 1 & 2, being only upto 09.12.2020; the petitioners have claimed interest till the date on which the payment was made. Since the interest contemplated under Section 28 of the Land Acquisition Act, 1894, is required to be paid till the date of the payment of the compensation amount which, in the instant case, is 10.10.2022; the petitioners No. 1 & 2, therefore, would also be entitled to an interest as contemplated under Section 28 of the Land Acquisition Act, 1894, for the period w.e.f. 10.12.2020 to 10.10.2022. 15. Accordingly, this writ petition is hereby disposed of, with a direction to the respondent authorities to pay the petitioners No. 1 & 2, the interest under Sections 28 and 34 of the Land Acquisition Act, 1894, as highlighted hereinabove; as expeditiously as possible, and in any case, not later than 3(three) months from the date of receipt of a certified copy of this order. 16. The writ petition stands disposed of, in terms above.