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1995 Supreme(SC) 595

SUPREME COURT OF INDIA
R.M. SAHAI AND N.P. SINGH, JJ.
Mathunni Mathai, Appellant
Versus
Hindustan Organic Chemicals Limited and another, respondents.
Civil Appeal No.5117 of 1955, (arising out of S.L.P.(C, No.8802 of 1992)

Advocates:
BABY KRISHNAN, C.N.SRI KUMAR, G.VISHVANATHA IYER, M.M.KASHYAP, M.T.George, P.T.Mathur, ROY ABRAHIM, Sudhir Gopi

Headnote:

Land Acquisition (Amendment) Act, 1984 - Section 23(1A) - Amended Act, 1984 - section 23(1A), - Deposit or payment - Claims of Compensation - Land Acquisition Award passed by Court in comprised of enhanced market value solarium at and interest at additional amount - In cross appeal filed by appellant State and company enhancement of market value was affirmed but appellant was further granted solarium at entire market value additional compensation Section Land Acquisition Amendment and interest under amended Section for first year and for subsequent years - Company challenged order of High Court by way of Special Leave Petition this Court in which an order was passed to following effect – Held, Provide for interest from date of deposit or payment - But of interest takes place not by payment alone but from date of service of notice referred - It not necessary for purposes of this case to decide whether creditor was bound to appropriate amount towards principal once it was deposited in Court and intimation of deposit was served on decree-holder as it does not appear that respondent ever served any notice on appellant about deposit - It is true that amount was deposited But in absence of any intimation as required by indication of manner of appropriation payment could not be deemed to have been appropriated towards principal unless decree-holder admits - reasoning of High Court that since deposit was made in pursuance of order of this Court it would be deemed that deposit was towards principal does not appear to be correct - Factually there was no direction to deposit - Court only granted an interim order in of escalation - Therefore judgment-debtor was bound to deposit amount in accordance with law - And that is provided for by of Civil Procedure Code - But mere deposit in absence of any notice and intimation that it was being deposited towards principal it was for decree-holder to towards dues - That is what has laid down case - There yet another reason for setting aside order High Court - Once appeal was decided and it was held that amount awarded Amended Ac did not suffer from any error of law except amount section parties were relegated to same position as they were on date when interim order was granted - In other words amount due was to be paid on principal amount and it cannot be urged that since respondent had deposited amount principal stood paid and therefore no interest or could be calculated on principal amount - Appeal allowed

JUDGMENT

R. M. SAHAI, J. :—The question of law that arises for consideration in these appeals directed against the judgment and order of the High Court of Kerala is whether the decretal amount deposited by the judgment-debtor in pursuance of an order passed by this Court is to be adjusted towards the principal amount due first or against interest and other charges.

2. The amounts due under the Land Acquisition Award passed by the Court in 1985 comprised of enhanced market value, solatium at 15% and interest at 4% on the additional amount. In cross appeal filed by the appellant, the State and the company the enhancement of market value was affirmed but the appellant was further granted solatium at 30% of the entire market value, additional compensation under Section 23(1A) of the Land Acquisition (Amendment) Act, 1984 and interest under the amended Section 28 at 9% for the first year and 15% for the subsequent years. The company challenged the order of the High Court by way of Special Leave Petition in this Court in which an order was passed to the following effect :

"Issue notice confined to the question of admissibility of enhanced compensation with reference to the provisions of the Amended Act, 1984. The learned Attorney General assured us that the compensation as made in the award has either been paid or will be paid and to consider the tenability of adoption of uniform rate of compensation notwithstanding the extent of land acquired."

Later on, the Court granted the stay order which reads as under:-

"The collections of the enhanced compensation, solatium and interest payable by the Petitioner herein pursuant to the judgment and order dated the Ist August, 1986, of the High Court of Kerala at Ernakulam in L.A.A. Nos. referred to above be and is hereby stayed."

As a result of the stay order granted by this Court, the respondent did not deposit any amount. Therefore, the appellant filed an application for clarification of the order which was disposed of on 7th December, 1987 with following observations :

"Heard learned counsel for the parties. Our order does not grant any stay of claims of compensation as awarded by the Land Acquisition Officer and as enhanced by the reference Court under Section 20 of Kerala Land Acquisition Act. What has been actually stayed is disbursement of the compensation to the extent it has been escalated by referring to the Amending Act,1984 by the High Court. The entire compensation not covered by our present clarification shall be paid within six weeks without demanding any security. C.M.P. is disposed of".

After the Order was clarified on 7th December, 1987, the respondent deposited the amount on 9th January, 1988. The appeal was dismissed on 12th September, 1989. After the dismissal of appeal, the appellant put the decree in execution in October, 1989 and claimed that after deducting the amount deposited by the respondent towards amount due, they were liable to be paid the balance with interest as directed by the Court. It was objected as the respondent having deposited the decretal amount it was liable to pay only the amount which was stayed by this Court, namely, the escalations by the amending Act of 1984 and the interest thereon. Both the appellant and respondent filed statements showing calculations of the figure arrived at by them. The executing Court allowed the application on the ratio laid down by this Court in Meghraj v. Mst.Bayabai, AIR 1970 SC 161. In revision filed by the respondent the order was set aside. The High Court held that even though Order XXI Rule 1 of the Civil Procedure Code was amended in 1976, yet the principle laid down by this Court on the unamended provisions still applied where the judgment-debtor did not specify as to how the amount deposited was to be approrpriated. But that principal was held not to be available, in this case, as this Court having directed the respondent to deposit the amount as awarded by the reference Court and what was stayed was the enhancement m


















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