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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
R RAGHUNANDAN RAO, SUMATHI JAGADAM
National Highways Authority, Rep. by its Chairman and Managing Director – Appellant
Versus
Mallampati Sudha Kumari, W/o. Buchi Babu – Respondent
Judgment :
R. Raghunandan Rao, J.
The land of the 1st respondent, to an extent of 1105 square meters, in R.S.No.143/4A8 of Vuyyuru Village and Mandal, Krishna District, was acquired for the purpose of widening the national highway by the National Highway Authority of India.
2. A notification under Section-3(A) of the National Highway Act, 1956 [for short “the NH Act, 1956”] was issued on 30.07.2017. The notification under Section-3(D) of the NH Act, 1956, was published on 01.06.2018 and on 15.06.2018 in the newspapers. Thereafter, an award was passed, under Section-3(G) of the NH Act, 1956, on 31.08.2019. Under this award, the compensation of Rs.1,81,23,250/- was determined to be paid and the same was also paid on 01.07.2022. There was no dispute regarding these dates. However, there is a dispute as to the date on which the possession of the land was taken. According to the 1strespondent, the possession of the land was taken on 01.06.2018. This is disputed by the acquisition authority who contends that the possession of land was taken only on 21.10.2022, after the payment of compensation.
3. The 1st respondent contending that interest was payable to her on the compensation amount, on a
Interest on enhanced compensation under the National Highways Act is payable from the date of notification under Section 3-D, affirming the government's immediate vesting of land.
The liability to pay interest in land acquisition cases commences from the date of taking possession, as clarified by the Supreme Court in Gayabai Digambar Puri v. The Executive Engineer & Ors.
The main legal point established in the judgment is that interest on compensation amount should commence from the date of taking possession of the land.
Point of Law : Section 28 empowers the courts, if it was enhancing the compensation awarded by the Collector, to award interest on the sum in excess of what the Collector had awarded as compensation.
Land Acquisition Act does not provide for payment of any rental compensation and liability for rental compensation created by State Government by resolution could not be said to have its source under....
A landowner is entitled to interest for deprivation of possession of land until compensation is fully paid.
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