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2017 Supreme(Bom) 613
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SHALINI PHANSALKAR-JOSHI, J.
The State of Maharashtra Through the Special Land Acquisition Officer, Nashik - Appellant
Versus
Gopal Kalu Udar & Ors. - Respondents
First Appeal No. 624 of 1994
Decided On : 09-05-2017
For the Appellant-State : Mr. Ameet Palkar
Important Point - The benefit of additional component under sub-section (1-A) of Section 23 is to be given if the proceedings for acquisition were pending and Award was not passed by the Collector.
Headnote:Land Acquisition Act, 1894 – Section 23(1-A) - Present Appeal challenges the order of the Reference Court thereby correcting its Award and directing the State to pay the interest @ 15% p.a. until the entire compensation amount is paid to the Respondent-Claimant or it is deposited in the Court - The amount of compensation was deposited and it was also received by the Respondents/Claimants on 19th June 1985 i.e. much after the cut-off date of 30th April 1982 - Even the impugned Judgment and Award was passed by the Trial Court on 11th September 1984 i.e. again after the cut-off date of 30th April 1982 - The amount of compensation was not paid or deposited till 30th April 1982 - The amended provisions will definitely have application to the instant case - Impugned Judgment and Order of the Trial Court, granting such benefit of the amended provisions to the Respondents-Claimants in respect of the enhanced rate of interest, has to be held as legal, correct and valid - Claimants become entitled to get enhanced rate of interest on the whole of the compensation amount.
Result - The Appeal challenging the said order holds no merit and stands dismissed.
1. The challenge in this Appeal is to the Judgment and Order dated 24th February 1992 passed by the Reference Court of Joint District Judge at Nashik, thereby correcting its Award dated 11th September 1984 in Land Reference No.18 of 1984 and directing the State to pay the interest @ 15% p.a. from 19th February 1992 until the entire compensation amount is paid to the Respondent-Claimant or it is deposited in the Court.
2. Facts leading to this Appeal may be stated, in brief, as follows :-
The Appellant - the State of Maharashtra has acquired the lands, bearing Gat No.209(p), admeasuring 0-87, situate at Village Kone, and admeasuring 0-4 p.k., situate at Waghere in Nashik, and belonging to the Respondents-Claimants, as per the Notification published on 17th July 1980, under Section 4 of the Land Acquisition Act, 1894. The Special Land Acquisition Officer made the Award. Against the Award passed by the Special Land Acquisition Officer, the Respondents-Claimants made a Reference under Section 18 of the LA Act. The Reference came to be decided by the Joint District Judge, Nashik, and the Award was passed by him on 24th February 1992, thereby enhancing the market value of the lands acquired from the Respondents-Claimants.
3. Pending this Reference before the Joint District Judge, Nashik, the Land Acquisition Act, 1894 came to be amended by the Amending Act No.68 of 1984 with effect from 24th September 1984. By the said Amending Act, certain additional benefits were given. By addition of subsection (1-A) to Section 23, additional component at the rate of 12% p.a. of the market value was provided for the first time. Similarly, by way of amendment in sub-section (2) of Section 23, the amount of solatium was increased from 15% to 30%. By making amendment in Section 34, the rate of interest was also increased from 6% to 9% for the first year after taking possession of the land, and 15% beyond the period of one year after taking possession till the payment of compensation amount.
4. In view of this Amendment Act, the Respondents-Claimants filed Miscellaneous Civil Application No.530 of 1985, seeking these additional benefits, which were not awarded in the Judgment and Award dated 11th September 1984.
5. This Miscellaneous Civil Application was opposed on behalf of the Appellant-State. However, after hearing learned counsels for both the parties, the Trial Court was pleased to pass the impugned order dated 24th February 1992, granting additional benefits to the Respondents-Claimants, as per the amended provisions of the Land Acquisition Act, 1894.
6. This order has been challenged in the present Appeal by the State of Maharashtra. The first and foremost submission advanced by learned A.G.P. is that, as the Reference was already decided, when the Award was passed by the Trial Court on 11th September 1984 itself, the Trial Court had no jurisdiction to entertain the Miscellaneous Civil Application filed by the Respondents-Claimants for grant of additional benefits. Secondly, it is submitted that the order passed by the Trial Court awarding enhanced rate of interest on whole of the compensation amount, i.e. total market value plus additional component plus solatium, cannot be called as legal and valid, as the enhanced rate of interest can be awarded only on the amount of compensation granted by the Court, which was in excess of the compensation awarded and paid by the Collector.
7. By placing reliance on the Judgment of the Single Bench of this Court, that of State of Maharashtra Vs. Shyamkant Dattatraya Patil, 2006 (5) Bom.C.R. 739, it is submitted that the Trial Court has committed an error in interpreting the provisions of the Amending Act and thereby granting enhanced rate of interest on the total amount of compensation. According to learned A.G.P., therefore, the impugned order of the learned Trial Court needs to be quashed and set aside.
8. Though the notice of this Appeal was duly served on the Respondents-Claimants, they have preferr
