High Court Of Delhi
NET RAM - Appellant
Versus
UNION OF INDIA - Respondent
Civil Writ 3448 of 1997
Decided On : 07/14/2000
( 1 ) AS the dispute in these twenty two writ petitions is common, this judgment will govern each one of them. While hearing the batch of writ petitions, learned Single Judge felt that" on account of views expressed by two Division Benches and a Single Judge, to which he did not subscribe to avoid uncertainty adjudication by the Full Bench is needed.
( 2 ) THE question is whether direction for grant of interest can be given in respect of the amount of compensation from the date of award till the actual payment @ 15% or 18%, as the case may be. A brief reference to the factual aspect s would suffice. On 23. 6. 1989, notification under Section 4 of the Land Acquisition Act. 1894 (in short, the Act) was issued in respect of large tract of land in the revenue estate of village Kilokari, Nangli Razapur, Khizrabad and Behlopur Khadar for the planned development of Delhi i. e. channalisation of Yamuna river. This was followed by declarations under Sections 6 and 17 (1) of the Act issued on 22. 6. 1990. Ultimately, awards were made by the Land Acquisition Collector (ME) on 19. 6. 1992. Possession of the land was not taken over by the Collector, Land Acquisition in one go hut the same was taken over in parcels from time to time from December 1990 upto September, 1995. Compensation was paid to the petitioner in each case sometime in 1994-95. Interest has been claimed by the petitioner in each case at the rate ol 15% 18% per annum from the date of the award till the dale ol actual payment. Reliance has been placed by the petitioners in two orders passed by Division Benches of this Court in Sher Singh v. Union of India (CWP 3095/92) dated 15. 10. 1993 and Rampat v,union of India, (CW 3994/95) dated 26. 3. 1995 and the order of the Single Judge in CWP 1483/96 dated 25. 4. 1997.
( 3 ) LEARNED Single Judge noticed that there was no discussion regarding the basis on which interest has been allowed to land owners in the aforesaid three cases. Learned Single Judge was of the view that the Act is complete code covering the entire field of operation of acquisition of land by the State including its liability to pay interest to the land owners in certain contingencies. Therefore, he REFERRED TO the matter to the Larger Bench, as noted above for opinion.
( 4 ) THE Act is complete code and lays down detailed procedure for acquisition of land, payment of compensation including solatium and additional market value. It is to be noted that under Section 34 interest @ 9% from the date of taking over the possession till payment for the first year @ 15% for subsequent years is payable. Section 28 is the only other provision which deals with the award of interest. The said provision empowers the Court to award interest on the excess awarded amount over and above the amount awarded by the Collector. Sections 28 and 34 read as follows:
28. Collector may be directed to pay interest on excess compensation- If the sum which in the opinion of the Court, the Collector ought to have awarded as compensation is in excess of the sum which the Collector did award as compensation, the award ol the Court may direct that the Collector shall pay interest on such excess at the rate of [nine per centum| per annum from the date on which he took possession of the land to the date of payment of such excess into Court. " 34. Payment of interest-When the amount of such compensation is not paid or deposited on or before taking possession ol the land, the Collector shall pay the amount awarded with interest thereon at the rate of nine per centum 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 fifteen per centum per annum shall he payable from the date of expiry of the said period of one year on the amount of compensation or part thereof which has n
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