Back
IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
NELSON SAILO, J.
Union of India and Anr. – Appellants
Versus
Smt. Lalmalsawmi and 178 Ors. – Respondents
CRP/2/2023, WP(C)/19/2023
Decided on : 01-06-2023
LAND ACQUISITION - INTEREST ON COMPENSATION - Land Acquisition Act, 1894 - Sections 23(1)(A), 23(2), 34 - The court discussed the provisions of the Land Acquisition Act, particularly Sections 23 and 34, which govern the payment of interest on compensation awarded for land acquisition. It interpreted Section 34 to mean that if compensation is not paid before taking possession, interest at 9% per annum is due, increasing to 15% if not paid within a year. The court upheld the Execution Court's decision to award interest on solatium and confirmed the District Collector's authority to assess and award interest under Section 34, emphasizing that the landowners were entitled to interest from the date of possession until the Reference Court's judgment.
Fact of the Case:
The Union of India challenged orders related to the payment of interest to landowners following a land acquisition under the Land Acquisition Act, 1894. The landowners sought interest on compensation awarded for their land, which had not been paid prior to possession. The District Collector had awarded interest under Section 34 of the Act, which the petitioners contested.
Finding of the Court:
The court found that the Execution Court correctly determined the landowners' entitlement to interest on solatium and that the District Collector acted within jurisdiction in awarding interest under Section 34. The court emphasized that the landowners were entitled to interest from the date of possession until the Reference Court's judgment, as the value of the land was established by the latter.
Issues: 1. Whether the Execution Court could award interest on solatium. 2. Whether the Execution Court could direct landowners to approach the District Collector for interest under Section 34. 3. Whether the District Collector had the authority to award interest under Section 34. 4. Whether landowners were entitled to interest from the date of possession until the Reference Court's judgment.
Ratio Decidendi: The court reiterated that the Execution Court cannot go behind the decree and must adhere to the established legal principles regarding interest on solatium and compensation. It confirmed that the District Collector has the authority to assess and award interest under Section 34, and that the landowners are entitled to interest from the date of possession until the Reference Court's judgment, as the value of the land was determined thereafter.
Final Decision: The court dismissed both the writ petition and the civil revision petition, affirming the orders of the Execution Court and the District Collector regarding the payment of interest.
JUDGMENT :
NELSON SAILO, J.
[1]. Heard Mr. S.K. Medhi, learned CGC for the petitioners and Mr. Lalsawirema, learned counsel for the private respondents and Mr. C. Zoramchhana, learned Addl. Advocate General for the State respondents. This order will dispose of both CRP No. 2/2023 and WP(C) No. 19/2023.
[2]. The petitioners Union of India has filed CRP No. 2/2023 challenging the Order dated 26.10.2022 passed by the learned Judge, Fast Track Court-cum-Addl. District & Sessions Judge, Kolasib, Mizoram in CMA No. 16/2022 in connection with Execution Case No. 1/2018 arising out of LA Case No. 42/2015. The petitioners have also challenged the consequential Order dated 11.11.2022 (Annexure-F) passed by the District Collector awarding the respondents land owners interest under Section 34 of the Land Acquisition Act, 1894 (LA Act) from the date of possession of their land till the date of Judgment and Order of the Reference Court in LA Case No. 42/2015.
[3]. In WP(C) No. 19/2023, the petitioners Union of India has also challenged the Order dated 11.11.2022 passed by the District Collector, Kolasib, whereby the land owners were found to be entitled to be given statutory interest as envisaged under Section 34 of the LA Act from the date of possession i.e. 04.03.2013 till the date of Judgment and Order of the Reference Court in LA Case No. 42/2015. The petitioners have also challenged the consequential Communications dated 14.11.2022 (Annexure-H) and 24.11.2022(Annexure-I) of the District Collector, Kolasib to the NF Railway Authority asking the latter to deposit the assessment made under Section 34 of the LA Act and the assessment made towards its interest on solatium as per Section 23 (1)(A) of the LA Act.
[4]. Mr. S.K. Medhi, learned CGC submits that the District Collector, Kolasib did not award land value to the land owners while preparing the Award No. 1/2012. All that was awarded was towards crops and trees of the land owners. Although the land owners did not prefer a Reference Application under Section 18 of the LA Act, but as similarly situated land owners got the benefit of their application under Section 18 of the LA Act, the present land owners therefore approached the Collector under Section 28(A)(3) of the LA Act and the same was referred to the LA Judge by the District Collector. The case was registered as LA Case No. 42/2015. The learned LA Judge vide Judgment and Order dated 18.01.2017 disposed of the LA Case by awarding the value of the land @ Rs. 25 per square feet alongwith solatium @30% in addition to the land value alongwith interest @ 12% per annum from the date of notification under Section 4 of the LA Act up to the date of the Award No. 1/2012 in terms of Section 23(1)(A) and Section 23(2) of the LA Act. By the same Judgment and Order, the District Collector was asked to determine the compensation amount as awarded and thereafter, intimate the General Manager, NF Railway to satisfy the Award. In case, the awarded amount was not paid within the stipulated period of three months from the date of intimation made by the District Collector, the land owners would be entitled to interest applicable under Section 34 of the LA Act w.e.f. 17.01.2017 till full and final payment.
[5]. Since the awarded amount was not paid by the NF Railway, the land owners approached the learned Judge, Fast Track Court-cum-Addl. District & Session Judge, Kolasib, by filing Execution Case No. 1/2018 for execution of the Judgment and Award dated 18.01.2017 passed by the LA Judge in LA Case No. 42/2015. Against the Judgment and Award, the NF Railway had preferred RFA No. 15/2018 before this Court alongwith IA(C) No.60/2018. However, as same was dismissed by this Court vide Judgment & Order dated 29.09.2018, the NF Railway then remitted a Cheque to the District Collector, Kolasib on 04.04.2019 towards compensation for the value of the land awarded by the LA Judge, and the Execution Case was closed on 18.06.2019.
[6]. However, since the interest awarded w
Landowners are entitled to interest on compensation for land acquisition from the date of possession until the Reference Court's judgment, as per Sections 23 and 34 of the Land Acquisition Act, 1894.
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.
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 certa....
Judicial orders of civil courts are not amenable to writ jurisdiction under Article 226; appropriate recourse lies in filing appeals when statutory rights to appeal exist.
The right to compensation arises on land vesting with the State, while its quantification may occur later, with interest payable until deposited.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
