Important Point – Amount of compensation can be released against indemnity bond.

AKIL KURESHI, J.:— Case of the petitioners is that they had purchased agriculture lands in the year 1999 and 2004. These lands came under acquisition for the National Highway Authority. Award under Section 1 of he Land Acquisition Act was passed on 11.10.2013 The possession of the land was also taken over. However, compensation amount of Rs. 9,31,300/- has not been released in favour of the petitioners since in the revenue records, names of erstwhile owners continue. Case of the petitioners is that the erstwhile owners have not raised any claim towards compensation. Under such circumstances, Counsel for the petitioner stated that the petitioners have been in position to produce affidavits of erstwhile owners declaring that they are not interested in claiming any part of the compensation. The petitioners have also shown willingness to give indemnity to the disbursing authority in case of any claim in future at any point of time is raised with respect to such amount of compensation.

2. Under the circumstances, the petitioners shall take following steps:-

I. Produce before the disbursing authority indemnity duly declaring on affidavit that the petitioners shall indemnify the authority and repay the entire amount or part thereof with interest at the rate of 12% per annum in case in future claim is lodged with respect to such compensation or part thereof.

II. Shall produce affidavits of the erstwhile owners with the proof their identity before the said authority. In such affidavits, the erstwhile owners shall clearly state that they forgo and relinquish any claim over the compensation amount in favour of the petitioners.

3. Upon such steps being taken by the petitioners, the disbursing authority shall release said amount of Rs.9,31,300/- after being satisfied that the petitioners have taken appropriate steps as directed. If the petitioners produce necessary documents latest by 01.03.2016, the amount may be released latest by 31.03.2016

4. Petition disposed of accordingly. Direct service is permitted.