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High Court Of Rajasthan
Judgename : G.M. Lodha
State of Rajasthan - Appellant
Versus
Maharaja Rao Bhim Singh - Respondent
Civil Revision No. 472 of 1976
Decided On : 08/09/1979
LAND ACQUISITION - INTEREST ON COMPENSATION - REFERENCE UNDER SECTION 18 OF THE RAJASTHAN LAND ACQUISITION ACT, 1953 - WHETHER MAINTAINABLE - COMPENSATION AND INTEREST - DISTINCTION - SECTION 34 OF THE ACT.
Fact of the Case:
The State of Rajasthan and the Superintending Engineer filed a revision application against the order of the Land Acquisition Officer refusing to make a reference against an award granting interest on compensation for land acquired for the construction of Kota barrage. The land belonged to Maharaja Shri Bhim Singh and was acquired in 1965. The initial award was given in 1973 and did not include interest. In 1975, the Land Acquisition Officer granted interest from 1958, the date of taking possession, to 1975, the date of payment of compensation.
Finding of the Court:
The court held that a reference under Section 18 of the Rajasthan Land Acquisition Act, 1953, can only be made in relation to four matters: measurement of land, amount of compensation, amount of cost, and person to whom it is payable. Interest is not one of these four points and therefore a reference cannot be made for the consideration of interest. The court further held that compensation and interest are two distinct concepts with different meanings, applicable in different situations and based on different considerations. Compensation is based on the market value of the land at the time of notification and is provided for in Chapters 2 and 3 of the Act, while interest is provided for the purpose of providing relief to the person from whose possession the land is acquired but compensation is paid after taking possession. Interest is granted for the time lag between the deposit of compensation and the taking of possession and is provided under Chapter V, Section 34 of the Act.
Issues: 1. Whether a reference under Section 18 of the Rajasthan Land Acquisition Act, 1953, can be made for the consideration of interest on compensation. 2. Whether compensation and interest are the same or distinct concepts.
Ratio Decidendi: 1. The court held that a reference under Section 18 of the Rajasthan Land Acquisition Act, 1953, can only be made in relation to four matters: measurement of land, amount of compensation, amount of cost, and person to whom it is payable. Interest is not one of these four points and therefore a reference cannot be made for the consideration of interest. 2. The court held that compensation and interest are two distinct concepts with different meanings, applicable in different situations and based on different considerations. Compensation is based on the market value of the land at the time of notification and is provided for in Chapters 2 and 3 of the Act, while interest is provided for the purpose of providing relief to the person from whose possession the land is acquired but compensation is paid after taking possession. Interest is granted for the time lag between the deposit of compensation and the taking of possession and is provided under Chapter V, Section 34 of the Act.
Final Decision: The court dismissed the revision application, holding that it was not maintainable.
G.M. Lodha, J.-The State of Rajasthan us well as the Superintending Engineer, R. P. 5. Jawahar Sagar Dams, Chambal Project, Rawatbhata have filed this revision application under Section 115 CPC and Section 18 (3) of the Land Aquisition Act, against the order dated 22-7-76 passed by the Land Acquisition Officer, Chambal Project Kota in case No. 20493/1973 refusing to make a reference against award dated 25-10-75 in that case.
2. After integration of the States in Rajasthan, some important irrigation schemes were taken up and dams were constructed for providing irrigation to the vast areas of uncultivated land. In the Kota area taking benefit of the Chambal river a barrage was constructed at Kota which was known as ‘Kota barrage’. It is common ground between the parties that this barrage was inaugurated in the year 1959-60 by the then Prime Minister Pt. Jawahar Lal Nehru.
3. The dispute between the parties relates to the acquisition of the land of the then ruler of Kota, Maharaja Shri Bhim Singh.
4. According to the award of the Land Acquisition Officer, Chambal Pro-Sect, Kota in case No. 20493/1965 the land belonging to Khasra No. 1/943 etc. of village Raipur/Ladpura district Kota was acquired from His Highness Maharaja Rao Bhim Singh for construction of Kota barrage. The area of the land has been shown 29 Bighas 7 Biswaa and the measurement of the building acquired has been shown 1245 Sq. ft 10875 Cft. 850000 Cft. 33160 Cft. and 3000 Cft. The compensation of Rupees 4.95,379.70 p. and after adding compulsory acquisition charges, total amount of Rs. 5,44,917.67 was awarded.
5. The above award is not in dispute and was not challenged by either of the parties by way of an application for making reference under section 18 of the Rajasthan Land Acquisition Act or otherwise. This award was given on 4-5-73. On 26-8 75 an application was moved on behalf of Maharao Bhim-singhji mentioning that the possession of this land was taken on 1-3-54 and the amount of compensation has been deposited and paid on 7-3-75, and, therefore, he is entitled to interest @ 4% according to Section 34 of the Land Acquisition Act.
6. This application was considered by the Land Acquisition Officer, and as the record now reveals a note was prepared and acting on the basis of the office note contained at page 32 of the record of land acquisition officer, produced before me, it was mentioned that the amount of compensation was neither deposited nor paid at the time of taking over of the possession but it has been paid on 7-3-75 whereas possession has been taken in year 195 8-59 when the construction of the barrage started as per letter of the Executive Engineer RMC dated 1 80/M dated 24-2-67. Note on page 32 of file No. 20493 is as under: (Matter being in Hindi omitted in this report-Ed.)
7. Onthis, an order was passed that interest for the period from the date of possession to the date of payment ‘be paid and award be given. This order is dated 25th Oct. 1975. In pursuance of this, a supplementary award
or a second award, was given, by which interest has been allowed to the respondent Maharaj Bhim Singh to the extent of Rs. 3,69,051.08.
8. TheIrrigation Department filed an application and prayed that a reference be made under section 18 of the Rajasthan Land Acquisition Act, against the Award of this interest, by a supplementary award or a second award. This application of the Supdt. Engineer was rejected on 27-2-76. It was held that the objection of the Irrigation Department that once award was given on 4-5-73, the land acquisition officer became ‘functus officio’, and there exists no jurisdiction to grant second award or supplementary award, is without any substance. The Land Acquisition Officer, by a detailed judgment held that whereas the compensation is given in part II or III of the Act, the interest is allowed only when the possession is taken before the amount of compensation is deposited. The plea of the Department, that amount of interest, sho
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