Gujarat High Court
N. G. SHELAT,AKBAR S. SARELA
Patel Maganbhai Chaturbhai - Appellant
Versus
Collector, Mehsana - Respondent
First Appeals Nos. 821 and 822 of 1960
Decided On : 08/04/1966
Baroda Land Acquisition Act - Section 18 - Extra-Provincial Jurisdiction Act, 1947 – Section 32(3) - Land Acquisition Act, 1894 - Sections 1, 2 and 36 to 45 – Acquisition of Land – Award of compensation - Whether claimants are entitled to get interest on amount awarded to them by way of solarium at rate per cent on amount of compensation awarded for lands under acquisition - Section 23 Sub-Section (1) of Land Acquisition Act provides a mode for determining amount of compensation to be awarded for land acquired Act - While determining amount of compensation Court has to take into consideration sonic factors set out - First being on basis market value land at date of publication notification under Section 4Sub-Section (1) of the Act. Then Sub-Section (2) of Section 23 says that In addition to the market value of the land as above provided, the Court shall in every case award a sum of fifteen per centum on such market value, in consideration of the compulsory nature of the acquisition." In other words by reason of Sub-Section (2) of Section 23 of the Act, on the market value arrived at by the Court, it has to award a sum of 15 per cent on such market value. Such a statutory liability as created in consideration of compulsory nature of the acquisition of the property of any person – Held, it commences three months after the date of possession he handed over. Till then there is no question of his right to claim interest at a particular rate specified in S. 32(3)(k) and, therefore, the liability on the part of the Collector to pay interest at the rate of six per cent per annum would only arise three months after 16-5-49 apart from the question as to when the excess amount was determined by the lower Court. It is also clear that the right of a party and the obligation or the liability arising on the part of the opponent would be simultaneous and that can be said to have accrued or arisen in any view of the case not on 16-5-49 but from 16-8-49. Before that date, as already said above, all the enactments in force in the State of Baroda had come to be repealed on 30-7-49 and the Land Acquisition Act, 1894 was made applicable with effect from 30-7-49. Thu on that basis claimants would not be entitled to interest at rate of six per cent per annum as urged by Mr. Patel and that part of order stands as it was in force in State of Bombay, to the State of Baroda except in relation to the amount of solatium - Dismissed.
SHELAT, J. :- These two appeals arise out of the judgment passed on 31st December 1959 by Mr. H.M. Kadri, Civil Judge (Senior Division). Mehsana, in Land Acquisition Reference No. 1 of 1954. Along, with that Reference two other References Nos. 2 and 3 of 1954 from which these two appeals Nos. 821 of 1960 and 822 of 1960 arise, were heard together and a common judgement was recorded.
2. Land Acquisition Reference No. 2 was in respect of compensation claimed for the land admeasuring 1 bigha 6 vasas out of S. No. 12 situated within the limits of Visnagar, District Mehsana. Land Acquisition Reference No. 3 of 1954 was in respect of land admeasuring 2 bighas 14 vasas of S. No. 8 situated in Visnagar. Both the lands were notified for acquisition under Section 4, Sub-Section (1) of the Land Acquisition Act, on 30th April 1949. The possession thereof was obtained on 16-5-1949. The Land Acquisition Officer allowed compensation in respect of both the lands at the rate of Rs. 3,000 per bigha of land and solatium at the rate of 15 per cent thereon as contemplated under Section 23(2) of the Act. The total amount that way came to Rs. 4,485 in respect of land comprised in Land Acquisition Reference No. 2 of 1954 and Rs. 9,315 in respect of land comprised in Land Acquisition Reference No. 3 of 1954. The references were made to the District Court of Mehsana at the instance of the claimants under Sec. 18 of the Act. On a consideration of the effect of the evidence, the learned Judge awarded compensation for those lands at the rate of Rs. 4,500 per bigha of land. Adding solatium on the amount of additional compensation, the total amount that came to was Rs. 6,727-55 nP. in Land Acquisition Reference No. 2/54 and Rs. 13,972-50 nP in Land Acquisition Reference No. 3/54. Thus, the excess amount awarded to the claimants came to Rs. 2,342-50 nP. in the first case and Rs. 4,857-50 nP in the other. While awarding additional compensation, the learned Judge has not passed any order with regard to the interest on the amount of solatium awarded to the claimants. It is in respect of that claim that the claimants in both the cases have come in appeal. The appellants have also claimed interest at the rate of 6 per cent instead of 4 per cent awarded by the trial Court on the amount of compensation awarded to them.
3. Two questions arise for determination in these two appeals : The first is as to whether the claimants are entitled to get interest on the amount awarded to them by way of solatium at the rate of 15 per cent on the amount of compensation awarded for the lands under acquisition. Section 23, Sub-Section (1) of the Land Acquisition Act provides a mode for determining the amount of compensation to be awarded for the land acquired under the Act. While determining the amount of compensation the Court has to take into consideration sonic of the factors set out therein - the first being on the basis of the market value of the land at the date of publication of the notification under Section 4. Sub-Section (1) of the Act. Then Sub-Section (2) of Section 23 says that 'In addition to the market value of the land as above provided, the Court shall in every case award a sum of fifteen per centum on such market value, in consideration of the compulsory nature of the acquisition." In other words by reason of Sub-Section (2) of Section 23 of the Act, on the market value arrived at by the Court, it has to award a sum of 15 per cent on such market value. Such a statutory liability as created in consideration of compulsory nature of the acquisition of the property of any person. Section 34 of the Act relates to the payment of interest on the amount of compensation awarded for the land acquired tinder the provisions of the Act. It says "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 six per centum per annum from the time of
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