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2024 Supreme(Gau) 543

THE GAUHATI HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
Nelson Sailo, J.
Sh John Zoremsiama and Ors. S/o Jerome Lalbiaktluanga(L) - Appellant
Vs.
Northern Frontier Railway r/b the Deputy Chief Engineer, CON/III/SCL and Ors. Silchar, Assam - Respondent
WP(C) No. 23 of 2023
Decided On : 02-05-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. L.H. Lianhrima, Sr.Adv., Ms. Ruth Lalruatfeli
For the Respondent: Ms Zairemsangpuii, CGC, Ms. H. Lalmalsawmi, G.A

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.

Headnote:

Land Acquisition Act - Compensation - Sections 28, 34 - The court directed the District Collector to assess and calculate the interest payable to the petitioners under Section 28 and Section 34 of the Land Acquisition Act. The District Collector was also directed to calculate the compensation payable to petitioner No. 6 as per the correct conversion of the affected land area.

Fact of the Case:

The petitioners, owners of land in Bairabi, Mizoram, sought compensation for their land acquired by the N.F. Railway. They claimed interest under Sections 28 and 34 of the Land Acquisition Act as possession was taken in 2013 but compensation was paid in 2022.

Finding of the Court:

The court found that the petitioners were entitled to the relief claimed for and directed the District Collector to assess and calculate the interest payable to the petitioners under Sections 28 and 34 of the Land Acquisition Act. The District Collector was also directed to calculate the compensation payable to petitioner No. 6 as per the correct conversion of the affected land area.

Issues: Entitlement to interest under Sections 28 and 34 of the Land Acquisition Act, miscalculation of the affected land area for petitioner No. 6, and the delay in compensation payment.

Ratio Decidendi: The court relied on the provisions of Sections 28 and 34 of the Land Acquisition Act and previous case law to support the petitioners' entitlement to interest and directed the District Collector to rectify the miscalculation of the affected land area for petitioner No. 6.

Final Decision: The court directed the District Collector to assess and calculate the interest payable to the petitioners under Sections 28 and 34 of the Land Acquisition Act. The District Collector was also directed to calculate the compensation payable to petitioner No. 6 as per the correct conversion of the affected land area.

Heard Mr. L.H. Lianhrima, learned Senior Counsel assisted by Ms. Ruth Lalruatfeli, learned counsel for the petitioners and Ms. Zairemsangpuii, learned CGC for the respondent No. 1 and Mrs. H. Lalmalsawmi, learned Govt. Advocate for the respondent Nos. 2 & 3.

2. Having regard to the nature of the case and the projection made by the petitioners and also the response made by the respondent Nos. 2 & 3, the writ petition is taken up for disposal at this stage. The case of the writ petitioners is that they are the owners of their respective plots of land situated at Bairabi in the district of Kolasib, Mizoram and they possess their respective Periodic Pattas, issued by the competent authority. The N.F. Railway in order to construct the railway line required certain area of land and accordingly, the District Collector initiated the land acquisition process. Consequently, the District Collector came up with Draft Award No. 1/2012, which was approved by the competent authority. Although the petitioners received their share of compensation towards crops and other plantations, they did not receive any compensation towards the value of their land and therefore, they approached the Reference Court under Section 18 of the Land Acquisition Act, 1894 (LA Act). Their application was registered as L.A Case No. 15 of 2012. The Reference Court consequently upon considering the case projected by the parties came to the conclusion that the petitioners were entitled to the value of their land and direct assessment of compensation of their land @ Rs. 60/- per Sq.ft. The amount that was assessed consequent upon the direction of the Reference Court was paid to the petitioners only on 16.06.2022. It is therefore the case of the petitioners that possession of their land was taken over by the Railway authorities on 03.04.2013 whereas, payment was made only on 16.06.2022 and therefore, they are entitled to be paid the interest entitled to them in terms of Section 28 and 34 of the LA Act.

3. Mr. L.H. Lianhrima, learned Senior Counsel referring to Section 28 of the LA Act submits that as per the said provision, the Collector may direct payment of interest on the excess compensation at the rates provided under the said Section i.e., @ 9% per annum from the date of possession was taken till payment of the excess amount to the Court. He submits that as per the proviso to the said Section, the Court may also direct that where such excess or any part thereof is paid to the Court after the date of the expiry of a period of one (1) year from the date on which possession is taken, interest at the rate of 15% per annum shall be payable from the date of expiry of the said period of one (1) year on the amount of such excess or part thereof which has not been paid in the Court before the date of such expiry. He submits that since the original Award of the Collector did not award any compensation towards land value and it was subsequently awarded by the Reference Court, the petitioners are entitled to be paid interest as per Section 28 of the LA Act.

4. The learned Senior Counsel by further referring to Section 34 of the LA Act submits that when the amount of compensation is not paid or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon @ 9% per annum from the time of taking possession until the same is paid or deposited. Further, if such compensation or any part thereof is not paid or deposited within a period of one (1) year from the date on which possession is taken, interest @ 15% per annum shall be payable from the date of expiry of the said period of one (1) year on the amount of compensation or part thereof which has not been paid or deposited before the date of such expiry. The learned Senior Counsel submits that since possession was taken on 03.04.2013 and payment made only on 16.06.2022, the petitioners are entitled to compensation as per Section 34 of the LA Act as well.

5. The learned Senior Coun

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