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2011 Supreme(SC) 221

IN THE SUPREME COURT OF INDIA
G. S. Singhvi and Asok Kumar Ganguly, JJ.
Appellants: Ivo Agnelo Santimano Fernandes and Ors.
Vs.
Respondent: Government of Goa and Anr.
Civil Appeal No. 7245 of 2003
Decided On: 23.02.2011

Advocates appeared:
For Appellant/Petitioner/Plaintiff: M.S. Ganesh, Sr. Adv., Nikhil Nayyar, K. Seshachary, Swarpnil Verma and T.V.S. Raghzavendra Sreyas, Advs.
For Respondents/Defendant: Niranjana Singh and Prema Singh, Advs.

Headnote:Land Acquisition Act, 1894-Sections 28 and 34-Acquisition of land-Compensation-Even if State does pay compensation to claimants directly, and same is not collected, State cannot then keep the money with itself and utilize it-In such cases, after a reasonable period, if claimants do not come forward to collect compensation, then it should be deposited in Court by State. (Para 19)

       Code of Civil Procedure, 1908-Order 21 Rule 1-Land Acquisition Act, 1894-Section 53-Liability to pay interest on amount of compensation continues to subsist until it is paid to owner or interested person or deposited into Court-By operation of Section 53, Order 21, Rule 1 of <a href=act:10444>CPC, being inconsistent with express provisions contained in Sections 34 and 28 of L. A. Act, stood excluded. (Paras 17 and 18)

       (1996) 2 SCC 71-Relied

JUDGMENT

Asok Kumar Ganguly, J.

1. Heard counsel for the parties.

2. A notification dated 6.09.1984 under Section 4 of the Land Acquisition Act, 1894 (hereinafter, 'the Act'), was issued for acquisition of land at Sanguem, Goa, for the construction of a sports complex. The concerned dispute relates to land in Survey Nos. 111/1 and 111/2. The Land Acquisition Collector (hereinafter, 'LAC') awarded compensation at Rs. 45/- per sq. meter.

3. Aggrieved, landowners-Appellants 1 to 3 and one Ana Conceicao Antonieta Santimano filed reference petitions against the order of the LAC under Section 18 of the Act. The District Judge, South Goa, passed an award dated 19.08.1992, wherein the rate of Rs. 45/- per sq. meter given by the LAC was upheld. Additionally, they were held entitled to severance charges @ 20% p.a. of Rs. 45/- per sq. meter in respect of the non- acquired portion of 37,731 sq. meters. They were also granted compensation in respect of a boundary wall amounting to Rs. 31,720/-, and other statutory benefits. The total sum thus awarded to them was Rs. 8,80,372/-.

4. On 7.3.1996, an order was issued by the Director of Sports and Youth Affairs, releasing funds to the extent of Rs. 8,80,372/-, placing the same at the disposal of Addl. Dy. Collector, L.A., South, Margoa, Goa, towards payment of the decretal order of the District Judge, South Goa, Margoa in the said land acquisition matter.

5. On 11.3.1996, Ana Conceicao Antonieta Santimano expired leaving behind a Will dated 19.4.1995 bequeathing the additional compensation payable by the government, to her son Herbert Santimano Fernandes (Appellant No. 2). The Appellants 4, 5 and 6 are the other legal representatives of the deceased Ana Conceicao Antonieta Santimano.

6. The death of Ana Conceicao Antonieta Santimano was not intimated to the government. Accordingly, pursuant to the award, the Respondents prepared two cheques each in the sum of Rs. 2,06,436/- (after deduction of taxes) in favour of the deceased Ana Conceicao Antonieta Santimano and Appellant 1, and two cheques each in the sum of Rs.2,06,437/- (after deduction of taxes) in the names of Appellants 2 and 3. The Government addressed a letter dated 1.4.1996 to the deceased Ana Conceicao Antonieta Santimano and Appellants 1 to 3, requesting them to collect their cheques on 8.4.1996. The Appellants 2 and 4 collected their cheques on 9.4.1996. However, the other two cheques were not collected by the respective claimants. On 13.9.1996, the Respondents thus deposited the uncollected cheques in their Revenue Deposit by way of challan and utilized the same.

7. The Appellants filed an execution application (No. 3/98) for the recovery of the balance amount along with interest accrued thereon. In the said execution application, the Appellants raised a dispute as to apportionment of compensation within the meaning of Section 31 of the Act, contending that Ana Conceicao Antonieta Santimano was entitled to Rs. 2,83,159.67/- and Ivo Agnelo Santimano Fernandes was entitled to Rs. 2,83,159.67/- as per Survey No. 111/1; and Ana Conceicao Antonieta Santimano was entitled to Rs. 1,57,026.20/- and Herbert Santimano Fernandes was entitled to Rs. 1,57,026.20/- as per Survey No. 111/2. It was contended that Appellant 3 (Nancy Fernnades Viviera Menezes) was not entitled to receive any sums as no enhancement was awarded with respect to the area belonging to her. The interested party, Ivo Agnelo Santimano Fernandes, was thus entitled to receive a difference of Rs. 58,952/-.

8. The District Judge, South Goa, by order dated 29.10.1999, directed that the amount of Rs. 2,06,436/- each for which the cheques had been drawn, be paid to the Appellants 1 and 3, leaving the question of interest to be determined subsequently. Thus, on 23.3.2000, fresh cheques for an amount of Rs. 60,000/- in the name of Ivo Agnelo Santimano Fernandes and for Rs. 3,52,873/- in the name of Herbert Santimano Fernandes were issued by the Respondents and deposited in court.

9. The Dist















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