SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(Chh) 336

IN THE HIGH COURT OF CHHATTISGARH, BILASPUR
RAKESH MOHAN PANDEY, J.
Talaipalli Coal Mining Project of NTPC Ltd. - Petitioner
Versus
Hariram, S/o. Ramprasad Nageshiya & Ors. - Respondents
WPC Nos. 1897, 1899, 1904, 1907 of 2023
Decided On : 12-03-2024

Advocates Appeared:
For the Petitioner:Mr. Prafull N. Bharat, Senior Advocate along with Mr. Anand Shukla & Mr. Parth Shrivastava.
For the Respondents:Mr. T.K. Jha, Advocate along with Mr. Amir Khan.

IMPORTANT POINT
Section 17(2) of the Coal Bearing Areas (Acquisition and Development) Act, 1957 only empowers the tribunal to receive compensation from the Central Government and does not provide for imposing interest on the amount of compensation.

Headnote:

Coal Bearing Areas (Acquisition and Development) Act, 1957 - Compensation - Interest - Section 17(2)

Fact of the Case:

The petitioner, a power-generating company, sought to acquire land for a Coal Mining Project. After completing the land acquisition proceedings, the petitioner issued multiple notices to the beneficiaries for payment of compensation. The respondents did not come forward to collect the compensation despite repeated notices, leading to an application under Section 17(2) of the Act, 1957 before the District Judge – cum – Part Time Tribunal.

Finding of the Court:

The court found that the tribunal had exceeded its jurisdiction by awarding interest on the amount of compensation, as Section 17(2) only empowers the tribunal to receive compensation from the Central Government and does not provide for imposing interest. The court set aside the part of the orders awarding interest but allowed the rest of the orders to remain intact.

Issues: The main issue was whether the tribunal had the authority to impose interest on the amount of compensation under Section 17(2) of the Act, 1957.

Ratio Decidendi: The court held that Section 17(2) of the Act, 1957 only empowers the tribunal to receive compensation from the Central Government and does not provide for imposing interest. The court also noted that the respondents had already moved applications for enhancement of compensation and interest, indicating that the tribunal's award of interest was unsustainable.

Final Decision: The petitions were allowed, and the part of the orders awarding interest of 5% was set aside, while the rest of the orders remained intact. The respondents were granted liberty to approach the authority concerned for early disposal of their cases.

ORDER :

1. Since the common questions of law and facts are involved in the present matters, therefore, they are clubbed together, heard together, and decided finally by this common order.

2. The petitioner has challenged the orders passed in P.T.T. Case Nos. 01/2022, 2/2022, 3/2022, and 04/2022 dated 17.02.2023, whereby the applications moved by the petitioner under Section 17(2) of the Coal Bearing Areas (Acquisition and Development) Act, 1957 (hereinafter referred to as ‘the Act, 1957’) seeking permission to deposit the amount of compensation with the tribunal were allowed, but at the same time, the learned tribunal in the concluding paragraph observed that the amount, which would be deposited shall carry interest @ 5% per annum from the date of the notification i.e. 27.11.2009 till the date of deposit.

3. The facts of the present case are that the petitioner is a power-generating company. The petitioner company in order to establish a Coal Mining Project expressed its desire to acquire the land and the Ministry of Coal, Government of India, in the exercise of the power conferred by Section 4(1) of the Act, 1957 issued a public notice. Thereafter, the Central Government vide notification dated 03.06.2009 issued another notice under Section 7(1) of the Act, 1957 showing its intention to acquire the land area ad-measuring 2094.89 hectares. Notice under Section 9 of the Act, 1957 was issued on 05.12.2009 by the Central Government. After completion of the proceedings of land acquisition, notices were issued to the beneficiaries by the petitioner on 15.07.2011, 06.08.2011 and 09.08.2011 respectively in different cases, whereby the beneficiaries were informed to submit relevant documents within 10 days for payment of compensation. The notice was published in the local newspaper on 10.03.2016. Another notice was issued on 19.02.2021 and beneficiaries were granted 15 days’ time to submit relevant documents and to collect the compensation. On 31.07.2021 and 20.10.2021 final notice was published. The respondents did not come forward to collect the compensation amount despite repeated notices; therefore, an application under Section 17(2) of the Act, 1957 was moved before the District Judge – cum – Part Time Tribunal.

4. Notices were issued to the respondents, thereafter, the learned tribunal vide order dated 17.02.2023 allowed the applications moved by the petitioner and permitted the petitioner to deposit the amount of compensation. The tribunal in the concluding paragraph held that the amount, which would be deposited by the petitioner shall carry an interest component of 5% from the date of notification i.e. 27.11.2009 till the date of deposit.

5. The petitioner in these petitions has challenged the concluding part, whereby the petitioner has been directed to deposit compensation along with 5% interest.

6. The learned Senior Counsel would submit that in compliance with the order passed by the learned tribunal dated 17.02.2023, the petitioner has already deposited the compensation amount, but the interest part has not been deposited. He would further submit that there is no provision in Section 17(2) of the Act, 1957 conferring power with the tribunal to pass any order with regard to payment of interest on the amount of compensation, and thus, the learned tribunal has exceeded its jurisdiction. He would also submit that Section 17 of the Act, 1957 is ministerial in nature and the concerned tribunal ought to have accepted the amount of compensation. It is also contended that for enhancement of the compensation and interest part, the private respondents have already moved applications before the tribunal according to the provisions of Section 14 of the Act, 1957 and the same are pending consideration.

7. On the other hand, Mr. T.K. Jha, learned counsel appearing for respondents would oppose the submissions made by Mr. Bharat. Mr. Jha would submit that the petition in the present form particularly under Article 226 of the Constitution of Indi

      Click Here to Read the rest of this document
      1
      2
      3
      4
      5
      6
      7
      8
      9
      10
      11
      SupremeToday Portrait Ad
      supreme today icon
      logo-black

      An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

      Please visit our Training & Support
      Center or Contact Us for assistance

      qr

      Scan Me!

      India’s Legal research and Law Firm App, Download now!

      For Daily Legal Updates, Join us on :

      whatsapp-icon Back to top