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High Court Of Delhi
LIFE INSURANCE CORPORATION OF INDIA - Appellant
Versus
UNION OF INDIA - Respondent
Decided On : 08/13/1998
Held:
tender appearing in Section 31 of the Act expresses not merely the readiness and ability to pay or perform at the time and place but also the actual production of the things to be paid or delivered either. In that case, it was further held that if the Collector fails to tender the amount of compensation awarded to the plaintiff on or before taking possession of the land or if he fails to deposit the same in the court after the award was made then, there is clear violation of the provisions, of Section 31 of the Act.
In view of failure on the part of the defendants to lead any evidence to show that the requirements were followed there appears to be a violation of the provisions of Section 31 of the Act in the present case also.
In the present case the plaintiff claims interest on account of delayed payments from 14th March, 1968, the date of dispossession from the acquired land up to 26th April, 1982. The award was made and published on 13th January, 1969 and possession of the land was taken by the Collector on 14th March, 1968. Thus, it is established that possession of the land in this case1 was taken by the Collector before publication of the award. No evidence has been adduced by the defendants nor there is any other evidence to show that the Collector tendered the amount of compensation to the plaintiff or deposited the same with the court, till 26th April, 1982. thereforee, in my considered opinion, there is a violation of the statutory provisions on the part of the defendants in not tendering the compensation amount and thus the plaintiff shall be entitled to payment of interest in terms of the provisions of Section 34 of the Land Acquisition Act.
( 1 ). The present suit was instituted by the Life Insurance Corporation of India, plaintiff against the defendants for recovery of Rs. 2,34,555. 00 ,detailed calculations and heads of which have been given in paragraph No. 22 of the plaint. The aforesaid claim of the plaintiff against the defendant as set out in the plaint is set out below:- a) Interest u/s. 34 of L. A. Act,, 1894 @ 6% per annum on the awarded compensation amount of Rs. 1,22,130. 00 from 14. 3. 68 (the date of dispossession from the acquired land) upto 26. 4. 1982 (the date on which the payment was made to the plaintiff/corporation) viz. for 14 years and 44 days:, 1,03,472. 55, Less such interest u/s. 34 of the L. A. Act already awarded by the L. A. C. for the period w. e. f. 14. 3. 68 to 12. 1. 1969:, 6,123. 62, 97,348. 93 b) Interest u/s. 4 (3) of the Land Acquisition (Amendment and Validation) Act,, 1967 @ 6% per annum on the assessed market value of Rs. 1,06,200. 00 from 13. 11. 1962 upto 26. 4. 1982 (the date when the compensation was offered to the plaintiff/corporation) viz. for 19 years and 155 days:, 1,23,773. 92, Less such interest u/s. 4 (3) of the Amendment Act,, 1967 awarded by the LAC for the period 13. 11. 1962 to 12. 1. 1969:, 39,296. 90, c) Interest by way of damages @ 18% per annum on 1,81,825. 95 w. e. f. 26. 4. 82 till 15. 12. 1983: 52,729. 05
( 2 ) THE lands of Sunlight of India Insurance Company Ltd. situtated in Village Jhilmil Tahirpur, Delhi in Khasra Nos. 1181/1118/10 etc. alongwith their parts were acquired by the defendants under award No. 2193 which is Ex. PW1/7 dated 13th January, 1969. By virtue of Section 7 of the Life Insurance Act, 1956 all rights, assets and liabilities of all the insurance companies including that of the Sunlight of India Insurance Company Ltd. stood transferred and vested in the Life Insurance Corporation of India, the plaintiff w. e. f. 1st September, 1956. In respect of land measuring 280 bighas and 7 biswas pertaining to the Sunlight of India Insurance Company Ltd. notification under Section 4 was issued on 13th November, 1959. In respect of the aforesaid land a notification under Section 6 was also issued on 7th December, 1966. Possession of the aforesaid land was taken by the Collector on 14th march, 1968 and an award being award No. 2193 was made and announced on 13th January, 1969. It is stated in the plaint that the amount of compensation in terms of the aforesaid award, which is exhibited as Ex. PW1/7 was neither tendered for payment to the plaintiff nor deposited in court by the defendants as required and contemplated under Section 31 of the Land Acquisition Act. The plaintiff, however, filed a reference under Section 18 of the Land Acquisition Act which is registered as Land Acquisition Case No. 643/69 and titled as LIC Vs. Union of India; wherein the reference court enhanced the market value from Rs. 4500. 00 to Rs. 8000. 00 per bigha. Against the aforesaid award passed by the reference court both the plaintiff as well as the defendants filed appeals in this court which were registered as RFA 7/81 by Union of India and RFA 476/79 by the plaintiff.
( 3 ) THE appeal filed by the plaintiff was allowed and the market value of the land was further enhanced to Rs. 10,000. 00 per bigha; whereas the appeal filed by the Union of India, one of the defendants, was dismissed on 12th March, 1981. Compensation of the acquired land was paid to the plaintiff on 24th April, 1982.
( 4 ) IN the light of the aforesaid facts the present suit has been instituted by the plaintiff against the defendants claiming only the amount towards interest as detailed above.
( 5 ) THE defendants filed their written statement and , therefore, on the pleadings of the parties the following issues were framed on 18th October, 1985:-
1. Whether the suit has been instituted and the plaint has been signed and verified by a duly authorised person? OPP 2. Whether the notice dated July 11, 1983 under Section 80 of the Code o
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