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IN THE HIGH COURT OF GAUHATI (IMPHAL BENCH)
T. Nandakumar Singh, J.
Thinkholet and Ors. - Appellants
Vs.
Collector of Land Acquisition and DC and Ors. - Respondent
WP (C) No. 1131 of 2002
Decided on : 22.09.2008
Interest - Land Acquisition - Section 34 of the Land Acquisition Act, 1894 - [34] - The court discussed the statutory requirement to pay interest under proviso to Section 34 of the Land Acquisition Act, 1894 and the principles of res judicata and waiver. The court held that the statutory direction for payment of interest on compensation cannot be overridden or defeated by a previous judgment between the parties.
Fact of the Case:
The petitioners sought a writ of mandamus to compel the respondents to pay interest on an award under Section 34 of the Land Acquisition Act, 1894. The lands of the petitioners were acquired for the construction of a state highway, and despite previous court orders, the respondents failed to pay the full compensation amount and interest. The respondents argued that the petition was barred by res judicata and that the petitioners had waived their right to claim interest.
Finding of the Court:
The court found that the petition was not barred by res judicata and that the petitioners had not waived their right to claim interest under Section 34 of the Land Acquisition Act, 1894.
Issues: The core issues were whether the petition was barred by res judicata and whether the petitioners had waived their right to claim interest on the compensation amount.
Ratio Decidendi: The court held that the statutory requirement to pay interest on compensation under Section 34 of the Land Acquisition Act, 1894 cannot be overridden or defeated by a previous judgment between the parties. The court also found that the petitioners had not waived their right to claim interest.
Final Decision: The court allowed the writ petition and directed the respondents to pay interest at the rate of 15 per cent per annum on the compensation amount for the specified period under proviso to Section 34 of the Land Acquisition Act.
T. Nandakumar Singh, J.
1. By this writ petition, the Petitioners (six in numbers) are praying for a writ in the nature of mandamus for compelling the Respondents to pay interest on Rs. 2,01,795 (award) for the period from 1.8.1991 to 31.8.2000 under proviso to Section 34 of the Land Acquisition Act, 1894 and/or any other relevant provisions of law.
2. Heard Mr. A. Bimol, learned Counsel appearing for the Petitioners and also Mr. N. Ibotombi, learned CGSC appearing for the Respondents.
3. The admitted facts are that the writ Petitioners are the owners of the lands that had been acquired by the Government of Manipur for construction of State Highway named Churachandpur-Tipaimukh Road. In August 1970, the Officers and other personnel of 81 Road Construction Company of G.R.E.F, Government of India took possession of the Petitioners' lands without paying any compensation to them for construction of the said road. On 21.5.1984 the Petitioners approached this Court by filing writ petitions, i.e., CR Nos. 125 of 1984 to 130 of 1984 for compelling the concerned authority to perform their public duty and pay the necessary compensation with interest thereon to the Petitioners. This Court by a common judgment and order dated 8.9.1987 passed in the said CR Nos. 125 of 1984 to 130 of 1984, directed the authorities concerned to complete the land acquisition proceedings, assess the compensation and pay the amount of compensation to the Petitioners in accordance with the provisions laid down in the Land Acquisition Act. It is stated that as the authorities had failed to carry out the direction of this Court in the said judgment and order dated 8.9.1987, the Petitioner No. 1 on behalf of the other Petitioners filed a petition dated 11.5.1990 for initiating proceeding for contempt against the concerned authorities for willful disobedience or the direction or this Court in the common judgment and order dated 8.9.1987. This Court again passed an order on 31.5.1990 directing the concerned officers and authorities to complete the land acquisition proceedings and award compensation in favour of the Petitioners for the acquired lands within a period of three months.
4. Later on the Deputy Commissioner/Collector of Land Acquisition, Churachandpur, after completing the necessary acquisition proceedings and the procedures as prescribed in the Land Acquisition Act, made an award being No. DC(CCP)LA/86-21 Churachandpur, dated 7.7.1991 assessing the total amount of compensation and interest thereon from 1.8.1971 to 31.7.1991 aggregating to Rs. 6,81,415.80 paise (Rupees six lakhs eighty-one thousand four hundred fifteen and eighty paise) as payable to the Petitioners. But the BRTF/GREF authorities deposited only a sum of Rs. 1,78,503.00 with the DC/Collector towards the amount of compensation and interest thereon vide Bank Draft dated 9.10.1991. The Petitioners were paid only a sum of Rs. 1,78,503.00, which was received by them on protest. The balance amount of compensation and interest thereon amounting to Rs. 5,02,912.80 paise had not then been deposited with the DC/Collector, Churachandpur.
5. The Petitioners filed a writ petition being CR No. 1422 of 1992 before this Court for issuing a writ in the nature of mandamus compelling the Respondents to pay the entire amount of the said sward. The main relief sought for in the CR No. 1422 of 1992 read as follows:
to issue a writ in the nature of Mandamus compelling the Respondents to perform their public duty of paying the entire amount of the award dated 7.7.1991 and further interest from 1.8.1991 till the said balance is paid to the Petitioners within a specific period.
The said CR No. 1422 of 1992 had been finally disposed of by passing judgment and order dated 10.12.1998 directing the Respondents to deposit the balance compensation money of Rs. 52,912.80 paise with the Collector Land Acquisition and Deputy Commissioner; Churachandpur District, Manipur within a period of two months from the date of receipt
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