SUPREME COURT OF INDIA
ASHOK BHUSHAN, R. SUBHASH REDDY, M.R. SHAH, JJ.
NAYARA ENERGY LIMITED – APPELLANT
VERSUS
THE STATE OF GUJARAT AND OTHERS – RESPONDENTS
CIVIL APPEAL NOS. 4102-4103 OF 2020 (Arising from S.L.P.(Civil) Nos.14215-14216/2020)
Decided on : 18-12-2020
Land Acquisition Act, 1894 – Section 18 – Acquisition of land – Award of compensation – Liberty to original claimants to withdraw 50% of accrued principal interest on fixed deposit amount without furnishing any security or solvency certificate to satisfaction of Reference Court or Executing Court – Fact that lands of original claimants have been acquired in year 1996 and Reference Court has enhanced amount of compensation after a period of approximately 17 years (by now 20 years), and original claimants are not in a position to furnish any security, while permitting original claimants to withdraw amount of enhanced compensation awarded by learned Reference Court, to strike balance and to consider interest of both parties and that appellant is ready and willing to deposit entire enhanced amount of compensation awarded by Reference Court, together with interest and cost, if original claimants are permitted to withdraw 25% of enhanced amount of compensation, as awarded by Reference Court, together with proportionate interest and cost, without furnishing any security and balance 75% of enhanced amount of compensation, together with proportionate cost and interest, as awarded by Reference Court is permitted to be invested in a fixed deposit in any nationalised bank with cumulative interest, it will meet end of justice and take care of interest of both parties – Impugned order passed by High Court modified – Execution, operation and implementation of judgment and award passed by Reference Court, impugned before High Court in First Appeal, stayed on condition that appellant shall deposit entire 100% of awarded amount along with interest and cost before Reference Court, within a period of four weeks – Upon deposit of amount, Reference Court directed to deposit 75% of deposited amount together with proportionate cost and interest, in cumulative fixed deposit, in any nationalised bank, initially for a period of five years, in name of Court which shall be continued to be renewed from time to time, till final disposal of main first appeal – Fixed deposit receipt may be kept in custody of Reference Court; balance 25% of deposited amount, together with proportionate cost and interest is permitted to be withdrawn by original claimants without furnishing any security. [[Right to fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 – Section 28] (Paras 6 and 7)
Facts of the case:
Feeling aggrieved and dissatisfied with the impugned order dated 18.08.2020 passed by the High Court of Gujarat in Civil Application (For Stay) No. 1 of 2020 in First Appeal No. 1543 of 2020 and the subsequent order dated 30.09.2020 passed in Misc. Civil Application (for modification of order) No. 2 of 2020 in First Appeal No. 1543 of 2020, permitting the original claimants to withdraw 50% of the 80% of the amount, as awarded by Reference Court, without furnishing any security, appellant herein – appellant/applicant before the High Court has preferred the present appeals.
Findings of Court:
If original claimants are permitted to withdraw 25% of enhanced amount of compensation, as awarded by Reference Court, together with proportionate interest and cost, without furnishing any security and balance 75% of enhanced amount of compensation, together with proportionate cost and interest, as awarded by the learned Reference Court is permitted to be invested in a fixed deposit in any nationalised bank with cumulative interest, it will meet the end of justice and take care of the interest of both the parties.
Result : Appeals allowed.
JUDGMENT :
M.R. SHAH, J.
1. Leave granted.
2. Feeling aggrieved and dissatisfied with the impugned order dated 18.08.2020 passed by the High Court of Gujarat in Civil Application (For Stay) No. 1 of 2020 in First Appeal No. 1543 of 2020 and the subsequent order dated 30.09.2020 passed in Misc. Civil Application (for modification of order) No. 2 of 2020 in First Appeal No. 1543 of 2020, permitting the original claimants to withdraw 50% of the 80% of the amount, as awarded by the learned Reference Court, without furnishing any security, the appellant herein – the appellant/applicant before the High Court has preferred the present appeals.
3. Feeling aggrieved and dissatisfied with the judgment and award passed by the learned Reference Court enhancing the amount of compensation for the land acquired, the appellant herein has preferred the first appeal before the High Court being First Appeal No. 1543 of 2020. In the said appeal, the appellant filed Civil Application (for Stay) no. 1 of 2020 praying to stay the judgment and order passed by the learned Reference Court. By the impugned order dated 18.08.2020, the High Court has stayed the execution, implementation and operation of the judgment and award passed by the learned Reference Court, on condition that the appellant shall deposit 80% of the awarded amount along with proportionate cost and interest before the learned Reference Court. The High Court has further passed an order that upon deposit of the aforesaid amount, the learned Reference Court to deposit 50% out of the said deposited amount (80% of the amount awarded by the learned Reference Court), together with proportionate cost and interest, in the cumulative fixed deposit, in any nationalised bank, initially for a period of five years, in the names of the original claimants, which shall be continued to be renewed from time to time, till the final disposal of the main first appeal. The High Court has further passed an order that balance 50% of the 80% of the awarded amount together with proportionate cost and interest is permitted to be withdrawn by the original claimants. The High Court has further passed an order that original claimants shall be entitled to withdraw 50% of the accrued principal interest on the fixed deposit. That thereafter the appellant herein filed an application to modify the aforesaid order pointing out that in case of relied upon judgment, relied upon by the learned Reference Court, an appeal has been preferred and there is an unconditional stay granted by the High Court – Coordinate Bench, and therefore, it was prayed to modify the aforesaid interim order. By order dated 30.09.2020, the learned Single Judge of the High Court has dismissed the said application. Hence, the present appeals have been preferred by the original applicant – acquiring body.
4. Shri P.S. Narasimha, learned Senior Advocate appearing on behalf of the appellant has stated at the Bar that instead of 80% of the awarded amount, as directed by the High Court by the first impugned interim order, the appellant is ready and willing to deposit the entire 100% of the enhanced awarded amount, together with interest and cost granted by the Reference Court, as a condition for stay of the award. It is submitted that, however, the claimants may not be permitted to withdraw the amount without furnishing any security or solvency certificate to the satisfaction of the learned Reference Court or the Executing Court.
4.1 It is further submitted that if the claimants are permitted to withdraw the amount of compensation, as awarded by the learned Reference Court, without furnishing any security, in that case and ultimately if the appellant succeeds before the High Court, it will be very difficult for the appellant to recover any amount from the original claimants. It is submitted that therefore while permitting withdrawal, the High Court ought to have put some conditions for giving security for withdrawal, so that there may not be any difficulty for r
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