SUPREME COURT OF INDIA
BEFORE K. RAMASWAMY AND K.S. PARIPOORNAN, JJ.
UNION OF INDIA
Versus
BUDH SINGH AND OTHERS
Civil Appeal No. 7413 of 1995{From the Judgment and Order dated 21-7-1993 of the Punjab & Haryana High Court in C.R. No. 3389 of 1990},
Decided on 27-7-1995
Advocates appeared:
A. Jayaram, Senior Advocate (P. Parameswaran and Y.P. Mahajan, Advocates, with him) for the Appellant;
Rajeev Dhavan, Senior Advocate (K.R. Nagaraja, R. Santhana Krishnan and Ms B. Rajani, Advocates, with him) for the Respondents.
Land Acquisition Act, 1894 - Section 4(1) - Section 17(4) - Section 6 - Section 9 - Section 11 - Section 5-A - Section 12(2) - Section 31 - Section 34 - Section 28 - Section 48(2) - Amendment Act, – Land - Possession Of Land - Compensation - Possession of land measuring 81 kanals 3 marlas 10 acres and 1 kanals 3 marlas was taken over by Punjab Armed Police for construction of its headquarters - Initially an amount of Rs 14,719.79 was paid to owner as compensation as determined by Revenue authorities - Later, he laid suit in Court of Additional Judge, Amritsar for recovery of its possession pleading that since land was not acquired it was illegal - Suit was decreed – Held, Notification under Section 4(1) was initially issued in 1968 and possession was taken which was struck down by Court and thereafter fresh notification was issued in 1973 and compensation was determined - Question therein was whether claimants would be entitled to payment of interest from date of taking possession pursuant to first notification - Since possession was taken in exercise of power pursuant to notification under Section 4(1), direction for payment of interest from date of taking possession is also consistent with scheme of Act - Thus considered, court is of opinion, that High Court was clearly in error in directing payment of interest at 18% per annum and that too, from date of taking possession - Respondents are entitled to interest at 9% per annum - However, since period of limitation for filing and (sic the) suit for damages for use and occupation by State is barred, though legally court cannot give any direction for payment, it is open to appropriate Government to consider same and do needful to claimants – Appeal Allowed.
ORDER
1. Leave granted.
2. This appeal by special leave arises from the order of the High Court of Punjab and Haryana dated 21-7-1993 made in Civil Revision No. 3389 of 1990. The facts are that possession of land measuring 81 kanals 3 marlas 10 acres and 1 kanals 3 marlas was taken over by the Punjab Armed Police on 15-3-1963 for construction of its headquarters at Ajnala. Initially an amount of Rs 14,719.79 was paid to the owner as compensation on 9-3-1965 as determined by the Revenue authorities. Later, he laid the suit in the Court of the Additional Judge, Amritsar for recovery of its possession pleading that since the land was not acquired under the Land Acquisition Act, 1894 (for short, the Act), it was illegal. The suit was decreed on 30-4-1969. In execution thereof, the Court passed an order directing the respondents to refund the amount of Rs 14,719.79 received on 9-3-1965. The State carried the matter in appeal which was dismissed. The second appeal also ended in dismissal. Then they initiated the proceedings for the acquisition of the said land and the notification under Section 4(1) of the Act was published on 16-11-1984 and an award there under has been passed. We are not concerned in this case regarding the legality of the award made by the reference court since, it had become final. But in execution of the decree, the High Court passed an order that in the event of default in payment within the stipulated time, payment of interest at 18% per annum from the date of taking possession be made. Since that amount has not been paid with interest, the court has proceeded with execution and the High Court in the impugned order has affirmed the same. Thus this appeal by special leave.
3. The only question that arises for decision is whether the respondents-owners of the lands are entitled to interest at 18% per annum from 15-3-1963, the date on which possession was initially taken, till 15-11-1984, preceding the date on which the notification under Section 4(1) was published. It is a jurisdictional issue and the finding in this behalf touches and trenches into the jurisdictional power of the court, acting under the Act regarding award of interest. The payment of interest under the Act is squarely covered by the provisions of the Act. The Government, while exercising its power of eminent domain, are entitled to have the notification under Section 4(1) published in the State Gazette. They are also entitled, in case of urgency, to exercise the power under Section 17(4) of the Act and thereon declaration under Section 6 published and would issue notice to the owner of the land under Section 9. On expiry of 15 days thereof, the Government is entitled to take possession from the owner. The award would be made under Section 11 thereafter. In case urgency clause under Section 17(4) was not invoked, the procedure of inquiry under Section 5-A shall be gone through and thereafter declaration under Section 6 be made. The declaration gives conclusiveness to the public purpose. After conducting an inquiry in Chapter III of the Act, the Land Acquisition Officer makes the award under Section 11 and gives notice to the owner under Section 12(2) and he is entitled to take possession from the owner of the land under Section 16 and on deposit of the compensation makes payment thereof under Section 31 of the Act. In case, after taking possession, if the amount is not paid, the provision is made for payment of interest under Section 34 of the Act which reads thus:
"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."
4. Under the proviso after the Amendment Act, if the amount is not paid before one year from the date on which possession is taken, interest at the rate of fifteen per
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