IN THE GAUHATI HIGH COURT(THE HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) AIZAWL BENCH
NANI TAGIA, J.
Lalthansangi Sailo, D/o Lalhmingthanga Sailo – Appellant
Versus
Northeast Frontier Railway, R/b the General Manager(Construction) – Respondent
WP(c) No. 119 of 2021
Decided on : 15-11-2022
Constitution of India, 1950 – Article, 226 – Land Acquisition Act, 1894 – Sections 28, 34 – Power of High Courts to issue certain writs – Petitioners have filed this writ petition, seeking payment of interest under Sections of Land Acquisition Act, for plots of lands that have been acquired by respondent authorities under following facts and circumstances – Held, In view of above, since petitioners were not paid compensation for lands acquired from them for lack of assessment made over value of petitioners’ land at time, award, was passed; petitioners would be entitled to be paid an interest as contemplated under Section of Land Acquisition Act, on value of land which are dates of land of petitioners having been taken possession by respondent authorities and date on which compensation determined, was paid to them by respondent authorities – Petition disposed.
JUDGMENT :
Heard Mr. Lalchhanliana Khiangte, learned counsel for the petitioners. Also heard Ms. Zairemsangpuii, learned CGC, appearing on behalf of respondents No. 1 to 5, and Mr. C. Zoramchhana, learned Addl. Advocate General, State of Mizoram, appearing on behalf of respondents No. 6 to 8.
2. The petitioners have filed this writ petition, seeking payment of interest under Sections 28 and 34 of the Land Acquisition Act, 1894, for the plots of lands that have been acquired by the respondent authorities under the following facts and circumstances.
3. The facts which are not in dispute and relevant for the purpose of adjudication of the case, briefly stated, are as under:
Pursuant to a notification, dated 29.08.2011(not annexed in the writ petition) for acquisition of land for construction of a new railway line(Bairabi to Sairang); an award, dated 05.07.2012, vide Award No. 5 of 2012, was passed by the District Collector/District Commissioner, Aizawl District, Aizawl, under which award, the compensation amount of Rs. 1,54,200/-and Rs. 1,52,900/-, was determined in respect of petitioners No. 1 & 2, respectively. The aforesaid determination of the compensation amount in respect of petitioners No. 1 & 2 is stated to be the compensation amount for the crops standing on the petitioners’ land.
Though in the Award, dated 05.07.2012; the plots of land measuring 69,940.00 sq. ft. and 67,788.00 sq. ft., belonging to the petitioners No. 1 & 2, respectively, were indicated to have been acquired but no compensation amount was assessed and determined by the respondent authorities in respect of the aforesaid land and the respondent authorities without, either, determining the compensation amount of the petitioners’ land and payment thereof, took possession over the land of the petitioners No. 1 & 2, along with others, vide order, M.No.F.14011/189/2008-DC(A)/250, passed on 30.08.2013, by the District Commissioner, Aizawl District, Aizawl. The petitioners, however, were paid the compensation amount determined for the crops standing on their lands as indicated in paragraph No. 3 of the writ petition.
Since no compensation was either assessed or paid in respect of the land acquired from the petitioners No. 1 & 2; they, therefore, had submitted an application under Section 28(A) of the Land Acquisition Act, 1894, to the District Collector, Aizawl District, Aizawl, on 19.07.2019, praying for re-determination of the compensation payable to them. The aforesaid application was disposed of by the Deputy Commissioner, Aizawl District, Aizawl, vide order, dated 23.02.2021, issued under Memo. No. F.14011/189/2019-DC(A)/267-27, whereby, while rejecting the prayer of the petitioners No. 1 & 2 for payment of interest under Section 34 of the Land Acquisition Act, 1894; the Deputy Commissioner, Aizawl District, Aizawl, had directed that the petitioners No. 1 & 2 be paid the compensation for their plots of land at the rate of Rs. 200/-per sq.ft. along with 30% solatium as per Section 23(2) and 12% interest as per Section 23(1A) of the Land Acquisition Act, 1894. The Deputy Commissioner, Aizawl District, Aizawl, had also directed that the petitioners No. 1 & 2 should also be paid the interest under Section 28 of the Land Acquisition Act, 1894, as the same benefit has been given by the reference Court and the High Court to other similarly situated persons. Pursuant to the aforesaid directions of the Deputy Commissioner, Aizawl District, Aizawl, the compensation amount payable to the petitioners No. 1 & 2 for their land, was assessed by the Deputy Commissioner, Aizawl District, Aizawl, at Rs. 3,98,72,713/-and Rs. 3,86,45,860/-, respectively, in respect of petitioners No. 1 & 2. The aforesaid amount, inter alia, included 15% interest w.e.f. 31.08.2013, upto 09.12.2020, which is an interest under Section 28 of the Land Acquisition Act, 1894.
4. In the aforesaid backdrop of the facts; the petitioners have raised two-fold grievances in this writ petition, for adjudication, w
Point of Law : Section 28 empowers the courts, if it was enhancing the compensation awarded by the Collector, to award interest on the sum in excess of what the Collector had awarded as compensation.
The court established that compensation for land acquisition must be based on market value evidenced by comparable sales, and interest must be calculated per statutory provisions.
Point of Law : Apex Court has held that the party who invokes the extraordinary jurisdiction of the Supreme Court under Article 32 or of a High Court under Article 226 of the Constitution is supposed....
Entitlement to interest under Sections 28 and 34 of the Land Acquisition Act and rectification of miscalculation of the affected land area for compensation calculation.
Statutory interest paid under S. 34 of the Land Acquisition Act is interest paid for the delayed payment of the compensation amount and, therefore, is a revenue receipt liable to tax under the Income....
The right to compensation arises on land vesting with the State, while its quantification may occur later, with interest payable until deposited.
The main legal point established in the judgment is the entitlement of the petitioners to interest, rent charges/damages, and the application of the provisions of the LARR Act, 2013.
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