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1995 Supreme(SC) 1479
SUPREME COURT OF INDIA
K. Ramaswamy and. K.S. Paripoornan, JJ.
Mir Fazeelath Hussain (Dead) & Ors. - Appellants
Versus
SPL, Deputy Collector, Land Acquisition, Hyderabad - Respondent
C.A. No. 706 of 1975.
Decided On : 25-7-1995
The main legal point established in the judgment is the determination of the entitlement and rate of interest under Section-28 in land acquisition cases.
Headnote:
Interest - Land Acquisition - The court held that the claimants are entitled to only interest under unamended Section-28 at the rate of 6% per annum on the enhanced compensation from the date of taking possession, till the date of payment.
Fact of the Case:
The court appreciated the evidence and upheld the belting principle and compensation awarded to various lands at different rates. However, there was a difference of opinion on the entitlement for payment of interest, leading to the matter being referred to a three Judges' Bench.
Finding of the Court:
The court held that the claimants are entitled to only interest under unamended Section-28 at the rate of 6% per annum on the enhanced compensation from the date of taking possession, till the date of payment. The appeal was dismissed without costs.
Issues: The main issue was the entitlement for payment of interest in a land acquisition case.
Ratio Decidendi: The court's decision was based on the interpretation of Section-28 and the determination of the applicable interest rate for enhanced compensation in land acquisition cases.
Final Decision: The appeal was dismissed, and the claimants were held entitled to only interest under unamended Section-28 at the rate of 6% per annum on the enhanced compensation from the date of taking possession, till the date of payment.
JUDGMENT :
1. This Court appreciating the evidence for further enhancement by the judgment reported in 1992(3) SCC 239 Mir Fazeelath Hussain & Ors. v. Special Deputy 'Collector, Land Acquisition, Hyderabad upheld the belting principle and also the compensation awarded to various lands at different rates for various cetegories enumerated by the High Court. But on the question of entitlement for payment of interest the learned Judges differed. Consequently the matter came to be referred to three Judges' Bench. A Notification under Section 4(1) was published on August 25, 1963 and the award of the Collector under Section-11 made on June 6, 1968. The reference was answered by the Civil Court by its award and decree dated August 30, 1972. Consequently, the three Judges' Bench in its order reported in Judgment Today 1995(3) S.C.410 held that the claimants are entitled to only interest under. unamended Section-28 at the rate of 6% per annum on the enhanced compensation from the date of taking possession, till the date of payment. After answering, the matter has been referred for disposal.
2. Having regard to the fact that even the award of the Reference Court was in August 30, 1972 the claimants are not entitled to the payment of interest at the rate of 9% as answered by the three Judges' Bench. Accordingly the appeal is dismissed but in the circumstances without costs.
