Point of Law : Provision of the LA Act which says that the land owners who have subsequently been awarded under a Supplementary Award and not under the original Award will be only entitled to a certain amount of interest.

JUDGMENT :

Heard Mr. A.R. Malhotra, the learned counsel for the petitioners and Mr. Ali Hussain, the learned Standing Counsel, NF Railways appearing for the respondent Nos. 5 to 7. Also heard Mrs. H.Lalmalsawmi, the learned Government Advocate appearing for the respondent Nos. 1, 2, 3 and 4.

2. Having regard to the issue involves, the matter is taken up for disposal at the admission stage.

3. Although the case has a checkered history, only bare essential for consideration and disposal of the writ petition is being mentioned. The petitioners by filing this writ petition has partly challenged the Order dated 11.12.2020 (Annexure 16) passed by the District Collector, Kolasib in awarding them interest under Section 34 of the Land Acquisition Act, 1894, to the extent and manner in which the calculation was made. Mr. A.R. Malhotra, learned counsel appearing for the petitioners submits that as per the proviso to Section 34 of the LA Act, the petitioners are entitled to 15% interest from the date of expiry of one year when the compensation amount was not paid to them till final payment. However, the District Collector has calculated the interest entirely @9% per annum from the date of taking possession of the land up till the final payment. He also submits that the amount already assessed by the District Collector was deposited by the NF Railways and paid to the petitioners. However, since the petitioners are entitled to further interest as per the proviso to Section 34 of the LA Act, Court may pass appropriate direction in this regard.

4. Mr. Ali Hussain, the learned Standing Counsel, NF Railways on the other hand submits that the District Collector has rightly assessed the interest payable to the petitioners under Section 34 of the LA Act. He submits that the NF Railways had merely encroached upon the land of the petitioners and the same cannot be come as taking possession of the land of the petitioners. For having encroached the land, the NF Railways has decided to acquire the land of the petitioners and therefore, the compensation amount as due to the petitioners having already been assessed and paid to them, the petitioners are not entitled to any further compensation. He therefore submits that the writ petition being without merit should be dismissed.

5. Mrs. H. Lalmalsawmi, the learned Government Advocate appearing for the State respondents submits that the affidavit of the State/respondents is ready to be filed and an advance copy of the same has been served to the learned counsels for the opposite parties. Referring to the affidavit, the learned Government Advocate submits that there can be no possible way of making payment at the time of taking possession of the land as the Award itself i.e. Supplementary Award was only made in the year 2019. Payment for the said Supplementary Award was made in February, 2020 vide Demand Draft No. 671934 dated 12.02.2020. Therefore, as payment of the said Award was made within one year from he date of approval given by the Government of Mizoram, there is no delay in making payment. As such, the question of paying further interest to the petitioners does not arise.

6. I have considered the submissions made by the learned counsels for the rival parties and also the affidavit prepared by the State respondents.

7. In order to appreciate Section 34 of the LA Act, the same is reproduced hereunder:-

“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 centum per annum shall be payable from the date of expiry of the said period of one year on the amount of