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2005 Supreme(Bom) 1240

Bombay High Court
Vasant Balkrishna Wale
Versus
Vithal Mahadeo Deshmukh and Ors.
Appellants : Vasant Balkrishna Wale
Respondents: Vithal Mahadeo Deshmukh and Ors.
Judgment Date: 14, September, 2005
Citations:
Judges:R.M.S. Khandeparkar and V.M. Khandeparkar, JJ.

Headnote:Land Acquisition Act, 1894 - Section 34 - Award of compensation with interest. - Nonpayment of interest by Collector would continue till date Collector fails to deposit amount.

       Land Acquisition Act, 1894 - Sections 30 and 34 - Constitution of India, Article 226 - Demand for interest. - When matter is referred to Collector for adjudication in terms of Section 30 of Act, Collector is duty bound to deposit interest alongwith awarded amount under Section 11 of Act. - The statutory provisions comprised under Section 34 of Land Acquisition Act, makes it abundantly clear that it is the duty of the Collector to deposit the interest amount along with the amount awarded under Section 11 when the matter is referred for adjudication in terms of the provisions of Section 30 of the said Act. In case such amount is deposited within a period of one year from the date of taking over of the pos session of the land, the interest rate would be 9% per annum. The Collector’s duty to pay interest on the awarded amount relates to statutory obligation of the public authority and failure to perform such obligation and consequently the right of the petitioner in that regard being affected. Besides, it is not in dispute that at one point of time there was specific demand in that regard. Being so, once the petitioner has been able to show that he had made a specific demand for performance of statutory obligation by the public authority for the benefit of the petitioner and such public authority had failed to perform such obligation, certainly the petition for issuance of writ of mandamus would be maintainable and particularly when the matter does not involve any disputed questions of fact. The availability of alternate remedy of appeal would not debar the claimant from approaching writ Court.

       Land Acquisition Act, 1894 - Section 34 - Dem - Demand for interest by claimants, beyond amount of compensation awarded is tenable.

JUDGMENT

R.M.S. Khandeparkar, J.

1. Heard. The petitioner by the present petition seeks direction for payment of interest over the amount deposited after a period of about 9 years from the date of the award in the proceedings under Section 30 of the Land Acquisition Act, 1894, hereinafter referred to as "the said Act".

2. The undisputed facts in the case in hand are that the award under Section 11 of the said Act was passed on 15-11-1978 and the possession of the land was taken on 16-12-1978. While the amount awarded under the said award to the tune of Rs.96,648.88 ps. was deposited in the Court while making reference under Section 30 of the said Act only on 8-10-1987, no amount of interest over and above the sum awarded under the award dated 15-11-1978 was deposited in the reference Court while depositing the awarded amount of Rs.96,648.88 ps.

3. The learned Advocate appearing for the petitioner, while drawing attention to Section 34 of the said Act submitted that it was the duty of the Collector to deposit the awarded amount along with the interest at the rate of 9% for the first year from the date of the award and for the remaining period at the rate of 15% per annum till the date of deposit of the amount. The learned Asst. Government Pleader submitted that the petitioner had enough opportunity of filing appeal against the final award passed by the reference Court under Section 30, besides that the petitioner had failed to demand such interest till April, 1992 and for the first time claimed the interest as late as on 29-4-1992 and that was much beyond the period of 3 years from the date of deposit of the amount and therefore the claim for interest was already barred by the law of limitation.

4. Upon hearing the learned Advocates for the parties, three points arise for consideration:- (i) Whether it was obligatory for the Land Acquisition Officer to deposit the awarded amount along with the interest accrued thereon, while referring the matter under Section 30 of the said Act? (ii) Whether the claim for interest is barred by the law of limitation? (iii) Whether the petitioner could claim such amount by way of writ petition?

5. The Section 34 of the said Act clearly provides that when the amount of the compensation fixed under Section 11 of the said Act is not paid or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of 9% per annum from the time of so taking possession until it shall have been so paid or deposited, provided that if such compensation or any part thereof is not paid or deposited within a period of one year from the date on which possession is taken, interest at the rate of 15% per annum shall be payable from the date of expiry of the said period of one year on the amount of compensation or part thereof which has not been paid or deposited before the date of such expiry.

6. The statutory provisions comprised under Section 34, therefore, makes it abundantly clear that it is the duty of the Collector to deposit the interest amount along with the amount awarded under Section 11 when the matter is referred for adjudication in terms of the provisions of Section 30 of the said Act. In case such amount is deposited within a period of one year from the date of taking over of the possession of the land, the interest rate would be 9% per annum. However, in case the Collector fails to deposit the amount within such period of one year, then the interest to be paid for the period after the expiry of one year would be at the rate of 15% per annum.

7. In the case in hand, it is not in dispute that the possession was taken as long back as on 16-12-1978 while the amount awarded under Section 11 of the said Act was deposited as late as on 8-10-1987 and, that too, without any interest being added to the said amount. Evidently, therefore, the Collector had not complied with his obligation under Section 34 of the said Act. Once it is clear that it was the

















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