IN THE HIGH COURT OF JUDICATURE AT BOMBAY
R.D. DHANUKA, GAURI GODSE, JJ.
Roshanbi Aziz Motiwala through power of attorney holder Mr. Iliyas Aziz Motiwala – Appellant
Versus
The Competent Authority and Deputy Collector – Respondent
Writ Petition No.1910, 1911 of 2022
Decided on : 06-04-2023
National Highways Act, 1956 - Section 3(G) - National Highways (Manner of Depositing the amount by the Central Government with the Competent Authority for Acquisition of land) Rules, 1998 - Rule 2 - Constitution of India,1950 - Article 226 - Seeking directions for quashing - Returnable - equitable interest – Claim of Compensation - Competent Authority - Held, Other decisions of this Court and Hon’ble Supreme Court relied upon by Petitioners lays down principles for grant of interest on compensation awarded Acts of 1894 and said Act of 1956 - Hence same are not required to be dealt with separately - Court have perused impugned order by which Respondent Competent Authority has rejected claim of interest made on behalf of Petitioners - Respondent has held that no objection was received to compensation amount awarded - Hence in view of Section 77 of said Act of and Section 3(H)(4) of Act of there was no question of depositing amount of compensation in Court - It is held that Petitioners are not entitled to receive any interest on amount of compensation from Award till actual payment of compensation amount - Writ Petition is allowed.
JUDGMENT :
GAURI GODSE, J.
1. Rule. Mr. Gokhale waives service on behalf of Respondent Nos. 1 and 2, and Mr. Singh waives service on behalf of Respondent No. 3. Rule is made returnable forthwith. By consent of the parties, Petitions are taken up for final disposal. Since the issue involved in both Petitions is the same, both Petitions are disposed of by a common Judgment.
2. Both Petitions are filed under Article 226 of the Constitution of India, seeking directions for quashing and setting aside the order dated 20th January 2020 passed by Respondent No. 1-Competent Authority under the National Highways Act, 1956 (“said Act of 1956”). Petitioners have further prayed for 15% per annum equitable interest from the date of the Award passed under Section 3(G) of the said Act of 1956 till the date of payment. In the alternative, the Petitioners prayed for grant of statutory interest from the date of possession till the date of actual payment.
3. It is contended by the Petitioners in Writ Petition No. 1910 of 2022 that on 15th July 2017, by a supplementary award/order passed under Section 3(G) of the said Act of 1956, compensation for an amount of Rs. 1,08,92,995/- was awarded with respect to the building/structures of the Petitioners, on the acquired land. Petitioner in Writ Petition No. 1911 of 2022, contended that on 21st April 2015, by an award/order passed under Section 3(G) of the said Act of 1956, compensation for Rs 1,01,88,000/- was awarded for Petitioner’s land. It is the grievance of the Petitioners in both the Petitions that though the compensation amount was paid to the Petitioners, they had not been paid interest on the amount determined by the Competent Authority under the Award from the date of declaration of Award till the date of payment of the amount of compensation.
4. The Petitioners in Writ Petition No. 1910 of 2022 had filed Writ Petition No. 6871 of 2018, and Petitioner in Writ Petition No. 1911 of 2022 had filed Writ Petition No. 6894 of 2018. The said Petitions were decided along with other connected Petitions on 14th January 2019. This Court had granted liberty to the Petitioners to file appropriate Application to the Competent Authority for the interest claim. Accordingly, Petitioners in both the Petitions had filed their respective Applications for claiming interest. The said claim for grant of interest is rejected by the Competent Authority by an order dated 20th January 2020. Hence, the Petitioners have filed present Writ Petitions.
5. Learned counsel appearing for the Petitioners submitted that the Petitioners are entitled to interest on the amount awarded under the Award from the date of Award till the date of payment. The Petitioners have also made an alternative prayer for the grant of statutory interest from the date of possession till the date of actual payment. It is further contended that the Competent Authority was under obligation to immediately disburse the amount after passing the Award. In support of the submissions made for grant of interest, the learned Advocate for the Petitioners has relied upon the following decisions:
(i) Shivkumar Shamrao Atulkar Vs. Union of India thr. the Secretary Ministry of Shipping and Ors., Writ Petition No. 996 of 2017, decided on 23/02/2018, Bombay High Court, Nagpur Bench
(ii) Kisan (Krishnaji) Aba Kamble since deceased through Legal heir and others Vs. The State of Maharashtra through Secretary and another., Writ Petition No. 624 of 2022, decided on 04/03/2022. Bombay High Court
(iii) Shri. Uday S. Vaidya and another Vs. State of Goa and another, Supreme Today 2003 0 Supreme (Bom) 657.
(iv) Major General Kapil Mehra and others Vs. Union of India and another, (2015) 2 Supreme Court Cases 262.
(v) State of Maharashtra Vs. Kailash Shiva Rangari., 2016 (4) Bom. C.R. 1
(vi) Vasant Balkrishna Wale Vs. Vithal Mahadeo Deshmukh & Ors., 2006 (1) Bom. C.R. 669
(vii) Union of India Vs. Tarsem Singh and others., (2019) 9 Supreme Court Cases 304
(viii) Delhi Development Authority Vs.
Shri. Uday S. Vaidya and another Vs. State of Goa and another
The more beneficial provision of Section 80 of the Act, 2013 relating to interest would apply to acquisitions made under the NH Act, and the court directed the respondents to pay the calculated inter....
The court established that under the 2013 Act, the Collector must deposit compensation with the appropriate authority in case of disputes regarding entitlement, and failure to do so results in the ob....
Acquisition of land – Constitutional guarantee of just compensation cannot be rendered contingent upon magnitude of financial burden – Mere escalation in projected liability, howsoever significant, d....
when there is a dispute between rival claimants, though not they appeared before the Acquisition Officer, still, they can claim compensation awarded under the Award.
The court established that compliance with procedural requirements of the National Highways Act is essential for valid land acquisition, particularly regarding timely compensation to affected parties....
The compensation for land acquisition under the National Highways Act must include solatium and interest as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and....
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