Statutory interest under Section 80 of the Act must be recomputed at 9% for the first year and 15% thereafter, ensuring timely payment to landholders.

ORDER

SUNITA AGARWAL, C.J.

1. The original writ petition has been filed challenging the inaction on the part of the respondent acquiring body as well as the Deputy Collector and Special Land Acquisition Officer, Narmada of non-payment of statutory interest (9 % and 15 %) under Section 80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short, “the Act’ 2013).

2. Placing the award dated 02.07.2022 appended with the writ petition, it is demonstrated by the learned counsel for the petitioners that only 9% interest as rent from the date of dispossession till the date of making of the award i.e. 02.07.2022 awarded to the petitioner taking aid of the Government Resolution dated 18.09.1989.

3. The Civil Application No. 01 of 2025 has been filed with the prayer calculating the interest as per the Circular dated 02.01.2025 issued by the Deputy Secretary, Revenue Department, State of Gujarat. It is contended in the civil application that even the rent of 9% computed under the award dated 02.07.2022 was paid with the delay of more than one year, inasmuch as, payments were made to the petitioner on 05.06.2023 upon filing of the present writ petition.

4. Be that as it may, we may note that by the judgment dated 03.01.2025 passed in Special Civil Application No.16200 of 2024, the issue pertaining to grant of statutory interest under Section 80 of the Act’ 2013 has been brought to its logical end with the Government Resolution No. RD / LAQ / e-file / 15 / 2024 / 5286 / GH dated 02.01.2025 issued by the Revenue Department, Secretariat, Government of Gujarat, Gandhinagar.

5. Upon placing of the said Government Resolution before this Court in the aforesaid matter, while passing the judgment and order dated 03.01.2025, it was noted that repeated writ petitions were filed before this Court raising identical issue of denial of statutory interest under Section 80 of the Act’ 2013 and therefore, this Court required the Principal Secretary, Revenue Department, Government of Gujarat to look into the issue and take a call.

6. On these directions, this Court had received a copy of the Government Resolution No. RD / LAQ / e-file / 15 / 2024 /5286 / GH dated 02.01.2025, which was taken note in Paragraph No. ‘6’ of the said decision, wherein it was provided that:-

“6. On these directions, we have received the copy of the Government Resolution No. RD / LAQ / e-file / 15 / 2024 / 5286 /GH dated 02.01.2025, which reads as under:-

"To pay interest as per provisions of

Section-80 of the Right to Fair

Compensation and Transparency in Land

Acquisition, Rehabilitation and

Resettlement Act, 2013.

Government of Gujarat

Revenue Department

Circular No. RD/LAQ/e-file/15/2024/5286/GH

Sachivalay, Gandhinagar

Date: 02/01/2025

Preamble:-

As the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 is in force at present w.e.f. 01/01/2014, land acquisition is carried out under the said Act. Provision is made in Section-80 of this Act that from the date of possession till non-payment of compensation, interest at the rate of nine per cent shall be payable for the first year and thereafter, interest at the rate of fifteen per cent per annum shall be paid per year until the payment of compensation. Considering the fact that provision is made in the said act regarding not taking advance possession, the following instructions are circulated.

Circular:-

1. Considering the provision of Section-38 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 , the Collector/ Land Acquisition OfÏcer shall make sure that the possession of land under acquisition shall be taken only after the procedure of land acquisition is over and only after the entire amount of compensation is paid to the tenure holder.

2. Before undertaking acquisition procedure under the said Act – 2013, the Acquiring Institute shall not take possession of the