Gujarat High Court
Judgename :ANIL R.DAVE, R.M.Doshit
PATEL GOVINDBHAI AMBARAM - Appellant
Versus
SPL.LAQ OFFICER - Respondent
First Appeal 1074 of 2003
Decided On : 11/14/2005
Temporary acquisition of land - Award of annual rent - Interest - Rate of - Admissibility - Scope of.
Head Note :
Land Acquisition Act, 1894 (Central Act 1 of 1894) - Sections 34, 35 to 37 and 35(3) - Temporary acquisition of land - Award of annual rent - Interest - Rate of - Admissibility - Scope of - The main contention of learned Counsel for claimants that they should be awarded interest at the rate specified in Section 34 of the Act has no basis and cannot be accepted - Section 34 of the Act provides rate of interest on the amount of compensation determined for acquisition of land under Part-II of the Act - The present case is of temporary acquisition under Section 35 of the Act and there is no corresponding provision for award of interest therein - In case of compensation awarded under Section 35 of the Act, the award of interest is discretionary - The Civil Judge in the case has in its discretion awarded interest @ of 9% p.a. and there is nothing on record to hold that same is inadequate - However, as to the date from which the interest should be awarded - Court held, that interest shall be payable from the date annual rent becomes payable till date of actual payment - Court accordingly modified the impugned award only to the extent.
Held :
The language of Section 34 of the Act is clear and unambiguous. It provides for payment of interest on the amount of compensation determined under the previous provision of the Act i.e. on the compensation awarded for acquisition of land under part II of the Act. Section 35 of the Act provides for acquisition for temporary occupation of land and the payment of compensation for such temporary occupation. The same, however, does not specifically provide for payment of interest on such compensation. Thus, though the Legislature in its wisdom made it mandatory for payment of interest at the specified rate over the amount of compensation for the land acquired under Part II of the Act, it did not make corresponding provision in case of temporary occupation of land. In Courts view, the provisions contained in Section 34 of the Act shall not apply to the compensation awarded under Section 35 of the Act. We are of the opinion that in case of compensation awarded under Section 35 of the Act, the award of interest shall be discretionary and shall be governed by the principles governing exercise of judicial discretion and the ordinary law for award of interest.
[Para 7]
In the present case, the Civil Judge has in its discretion awarded interest @ 9%. There is nothing on the record to show that the rate of interest awarded by the Civil Judge is inadequate. Court, therefore, did not interfere with the rate of interest awarded by the Civil Judge. As to the date from which the interest has been awarded, Court do agree that such interest shall become payable from the date on which the annual rent became payable till the date of actual payment. The impugned Awards of the Civil Judge, therefore, require to be modified to that extent. [Para 8]
Law Laid Down :
In case of compensation awarded for temporary acquisition of land award of interest is discretionary.
Conclusion :
In case of compensation awarded for temporary acquisition of land award of interest is discretionary and in the case interest awarded @ of 9% per annum is not inadequate.
Cases Referred :
Brij Behari Sahai vs. State of Uttar Pradesh AIR 1986 SC 1895;; General Manager, Oil And Natural Gas Corporation vs. Special Land Acquisition Officer First Appeal No. 3658 of 2001, Decided on 06.11.2001.
Decided in Favour of :
Appellants
Appeal Allowed to Limited Extent
( 1 ) THIS group of Appeals arise from the common judgment and awards dated 8th August, 2001 passed by the learned Joint Civil Judge [sd], Mehsana in Land Reference Nos. 129 of 1988 to 133 of 1998. The appellants are the claimants in Land Acquisition Case Nos. 512 of 1988/m.
( 2 ) THE appellants are the residents of village Adaraj, Taluka-Kadi, District Mehsana. The claimants owned pieces of land at village Adaraj. The said pieces of land were temporarily acquired under Section 35 of the Land Acquisition Act, 1894 [hereinafter referred to as, ?the Act?] for exploration by the Oil and Natural Gas Corporation Limited [hereinafter referred to as, ?the Corporation?], the acquiring body. For such temporary acquisition, by Award dated 25th August, 1989, the Land Acquisition Officer awarded annual rent of Rs. 110/= per Are. As the appellants were dissatisfied with the compensation awarded by the Land Acquisition Officer, the above referred References were made under Section 35 (3) of the Act.
( 3 ) THE said References have been decided by the impugned judgment and awards. The learned Civil Judge has determined the market value of the acquired lands considering its fertility, location and potential for future development. On the basis of such market value arrived at by the learned Civil Judge, the compensation awarded to the claimants has been enhanced to the annual rent of Rs. 350/= per Are. The learned Civil Judge has also awarded interest on the amount of enhanced compensation @ 9% per annum from the date of the Reference till the date of realization. Feeling aggrieved, the claimants have preferred the present Appeals.
( 4 ) LEARNED advocate Mr. Patel has appeared for the appellants-claimants. He has submitted that the claimants do not press for enhancement in the annual rent awarded by the learned Civil Judge but they assail the rate of interest awarded by the learned Civil Judge and the date from which such interest is made payable.
( 5 ) HE has submitted that Section 34 of the Act provides for interest @ 9% per annum for one year from the date of taking over of the possession of the land and at the rate of 15% per annum from the date of expiry of one year from the date of taking over of the possession of the acquired land. The interest, therefore, ought to have been awarded at the rate specified in Section 34 of the Act. He has also submitted that such interest shall be made payable from the date of taking over of the possession of the land and not from the date of References. In support of his claim, he has relied upon the judgment of the Honble Supreme Court in the matter of Brij Behari Sahai vs. State of Uttar Pradesh [air 1986 SC 1895] and the judgment of this Court in the matter of General Manager, Oil and Natural Gas Corporation vs. Special Land Acquisition Officer [first Appeal No. 3658 of 2001 and other matters :: Decided on 6th November, 2001]. The Appeals have been contested by learned advocates Mr. Pancholi and Mr. Mehta.
( 6 ) WE are afraid, we are unable to agree with Mr. Patel. Neither of the judgments relied upon by Mr. Patel holds that the statutory interest specified under Section 34 of the Act shall apply to the compensation payable for temporary acquisition under Section 35 of the Act. Section 34 of the Act is incorporated in Part V of the Act whereas Sections 35 to 37 provide for temporary occupation of the land and are incorporated in Part VI of the Act. Section 34 of the Act reads as under :34. Payment of interest-When the amount of such compensation is not paid or deposited on or before taking possession of 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 c
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