Pakunga S/o Kapthuama, (L) v. State of Mizoram represented by the Chief Secretary to the Govt. of Mizoram, Aizawl
2022-03-25
NELSON SAILO
body2022
DigiLaw.ai
JUDGMENT : Heard Mr. A.R. Malhotra, the learned counsel for the petitioners and Mr. Ali Hussain, the learned Standing Counsel, NF Railways appearing for the respondent Nos. 5 to 7. Also heard Mrs. H.Lalmalsawmi, the learned Government Advocate appearing for the respondent Nos. 1, 2, 3 and 4. 2. Having regard to the issue involves, the matter is taken up for disposal at the admission stage. 3. Although the case has a checkered history, only bare essential for consideration and disposal of the writ petition is being mentioned. The petitioners by filing this writ petition has partly challenged the Order dated 11.12.2020 (Annexure 16) passed by the District Collector, Kolasib in awarding them interest under Section 34 of the Land Acquisition Act, 1894, to the extent and manner in which the calculation was made. Mr. A.R. Malhotra, learned counsel appearing for the petitioners submits that as per the proviso to Section 34 of the LA Act, the petitioners are entitled to 15% interest from the date of expiry of one year when the compensation amount was not paid to them till final payment. However, the District Collector has calculated the interest entirely @9% per annum from the date of taking possession of the land up till the final payment. He also submits that the amount already assessed by the District Collector was deposited by the NF Railways and paid to the petitioners. However, since the petitioners are entitled to further interest as per the proviso to Section 34 of the LA Act, Court may pass appropriate direction in this regard. 4. Mr. Ali Hussain, the learned Standing Counsel, NF Railways on the other hand submits that the District Collector has rightly assessed the interest payable to the petitioners under Section 34 of the LA Act. He submits that the NF Railways had merely encroached upon the land of the petitioners and the same cannot be come as taking possession of the land of the petitioners. For having encroached the land, the NF Railways has decided to acquire the land of the petitioners and therefore, the compensation amount as due to the petitioners having already been assessed and paid to them, the petitioners are not entitled to any further compensation. He therefore submits that the writ petition being without merit should be dismissed. 5. Mrs.
For having encroached the land, the NF Railways has decided to acquire the land of the petitioners and therefore, the compensation amount as due to the petitioners having already been assessed and paid to them, the petitioners are not entitled to any further compensation. He therefore submits that the writ petition being without merit should be dismissed. 5. Mrs. H. Lalmalsawmi, the learned Government Advocate appearing for the State respondents submits that the affidavit of the State/respondents is ready to be filed and an advance copy of the same has been served to the learned counsels for the opposite parties. Referring to the affidavit, the learned Government Advocate submits that there can be no possible way of making payment at the time of taking possession of the land as the Award itself i.e. Supplementary Award was only made in the year 2019. Payment for the said Supplementary Award was made in February, 2020 vide Demand Draft No. 671934 dated 12.02.2020. Therefore, as payment of the said Award was made within one year from he date of approval given by the Government of Mizoram, there is no delay in making payment. As such, the question of paying further interest to the petitioners does not arise. 6. I have considered the submissions made by the learned counsels for the rival parties and also the affidavit prepared by the State respondents. 7. In order to appreciate Section 34 of the LA Act, the same is reproduced hereunder:- “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.]” 8.
From the above abstract, it may be seen that when the amount of compensation is not paid or deposited before taking possession of the land, the Collector is required to make an assessment of the interest payable to the land owners @9% per annum from the time of taking possession of the land till the payment is made or the amount deposited. Further, the proviso to Section 34 provides that if the compensation or any part thereof is not paid or deposited within a period of one year from the date of possession, the interest amount payable would be @ 15% per annum from the date of expiry of one year till the amount or part thereof is finally paid or deposited. 9. Now coming to the order passed by the District Collector, it may be seen that there is no dispute to the fact that 08.05.2015 is the date of taking possession of the land in question and 12.02.2020 is the date on which payment of the compensation has been made. The District Collector however was of the view that since approval of the Supplementary Award was given by the State Government in the Revenue Department on 08.07.2019 and that the deposit and payment of the compensation amount was made within one year from that date, the petitioners will therefore be not entitled to interest @ 15% in terms of the proviso of Section 34 of the LA Act. As such interest was awarded @ 9% from the date of possession of the land till final payment of the Award i.e. 12.02.2020. However, having regard to Section 34 of the LA Act and the proviso provided therein, when there is no dispute with regard to the date of taking of possession and also the date on which the amount awarded was deposited or paid, the said provision cannot be ignored. Admittedly, compensation amount was not deposited or paid within a period of one year from the date when possession was taken over the land i.e. 08.05.2015. Therefore, the petitioners would be entitled to be paid interest @ 15% per annum w.e.f. 09.05.2016 upto 12.02.2020. Although, Mr. Ali Hussain, the learned Standing Counsel, NF Railway has tried to convince the Court that possession was not taken over the land of the petitioners and that it was only encroachment, the same in my considered view cannot be accepted.
Therefore, the petitioners would be entitled to be paid interest @ 15% per annum w.e.f. 09.05.2016 upto 12.02.2020. Although, Mr. Ali Hussain, the learned Standing Counsel, NF Railway has tried to convince the Court that possession was not taken over the land of the petitioners and that it was only encroachment, the same in my considered view cannot be accepted. There is no dispute to the fact that it was due to the erection of pillars within the land of the petitioners that the NF Railway was ultimately led to acquire the land of the petitioners. Moreover, they have not disputed the date on which the possession of land was taken as reflected in the order of the Collector dated 11.12.2020. The NF Railways have not only not disputed the date of taking possession of land and the interest awarded to the petitioners but they have in fact satisfied the Award as can be seen from the Communication dated 20.08.2021 annexed at Annexure 15 to the writ petition. 10. As regard to the stand taken by the State respondents, it may be seen that although the original Award was passed in the year 2012 and the Supplementary Award later on in the year 2019, no distinction can be drawn between the two inasmuch as the land of the petitioners were affected even as the Award of 2012 was passed which led them to filing of series of litigations before this Court. There is also nothing in the provision of the LA Act which says that the land owners who have subsequently been awarded under a Supplementary Award and not under the original Award will be only entitled to a certain amount of interest. Therefore, this Court finds the stand of the State respondents to be unacceptable. 11. Thus, upon due consideration of the materials available on record and the provisions of the LA Act, this Court finds merit in the writ petition. Accordingly, the Order dated 11.12.2020 (Annexure 16) is interfered with to the extent that the District Collector shall now make an assessment for the interest amount payable to the petitioners @15% per annum w.e.f. 09.05.2016 upto 12.02.2020 within a period of four weeks from the date of receipt of a certified copy of this order. The interest amount already calculated and paid be adjusted as may be required.
The interest amount already calculated and paid be adjusted as may be required. Once the assessment is ready, the same shall be forwarded to the NF Railways who shall within a period of three months from the date of receipt of the assessment deposit the assessed amount before the District Collector, Kolasib. The District Collector upon receiving the assessed amount shall disburse the same to the petitioner without delay. 12. The writ petition accordingly stands disposed of. 13. The affidavit of the State respondents which has been taken into consideration hereinabove shall be filed by the learned Government Advocate by 28.03.2022.