IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH
G.S. Sandhawalia, J.
M/s Shine Buildcon Private Ltd. - Appellant
Versus
State Of Haryana - Respondent
Civil Writ Petition Nos. 3295, 3552, 3565 and 3687 of 2018
Decided On : 25-01-2019
Interest Payment - Land Acquisition - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 80, Section 77 - Summary of Acts and Sections: The court discussed the liability of respondents to pay statutory interest in terms of Section 80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. It also referred to Section 77 regarding the payment of compensation or deposit of the same in Authority. The court highlighted the provisions of Section 80 and Section 77 and their interpretations, emphasizing the obligation to pay interest on delayed compensation and the duty of the Collector to make payment as soon as possible after making the award.
Fact of the Case:
The land of the petitioners was sought to be acquired for public purpose. The petitioners claimed statutory interest under Section 80 of the 2013 Act for delayed payment of compensation. The respondents argued that there was no delay in making the payment.
Finding of the Court:
The court found that the State was liable to pay interest on the amount of compensation for the delayed period as per Section 80 of the 2013 Act. It rejected the respondents' argument of no delay in payment and directed the State to pay interest to the petitioners.
Issues: The main issue was whether the respondents were liable to pay statutory interest in terms of Section 80 of the 2013 Act on account of non-deposit of compensation. The court also addressed the delay in making the payment and the obligations of the Collector under Section 77.
Ratio Decidendi: The court held that the State was under a bounden duty to transfer the amount immediately and was liable to pay interest on the delayed compensation. It emphasized the mandatory nature of interest payment under Section 80 and the duty of the Collector to make prompt payment as per Section 77.
Final Decision: The court allowed the writ petitions and directed the State to pay interest at the rate of 9% per annum for the delayed period to the petitioners. It also ordered the State to pay penal interest at a rate of 12% if the needful was not done within the stipulated period.
JUDGMENT
G.S. Sandhawalia, J. - This order shall dispose of Civil Writ Petition Nos.3295, 3552, 3565 and 3687 of 2018 as common questions of fact and law are involved in these petitions. However, for dictating the order, the facts have been taken from Civil Writ Petition No.3295 of 2018-M/s Shine Buildcon Private Limited vs. State of Haryana and others.
2. The sole question which arises for consideration is to whether the respondents are liable to pay statutory interest in terms of Section 80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as "the 2013 Act") on account of non deposit of compensation which was due at the rate of 9% per annum for the period of first year and at the rate of 15% per annum for the period after the expiry of first year.
3. The answer has to be in affirmative for the reasons given below.
4. The facts would go on to show that the land of the petitioners was sought to be acquired and resultantly a notification under section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as "the 1894 Act") was issued on 11.12.2013 for the public purpose namely for development and utilization of 60 Mtr. wide Sector Plan Roads between Sector 68 to 74 at Gurugram. Resultantly, notice under Section 9 of the 1894 Act was issued on 21.10.2016 (Annexure P/2) that in view of declaration under Section 6 dated 10.12.2014, the award would be pronounced on 9.12.2016 qua the land measuring 25 Kanals 19 Marlas pertaining to the petitioner. The petitioner a day prior on 8.12.2016 (Annexure P/3) furnished the necessary details of the bank account to respondent no.2-Land Acquisition Collector, Gurugram. Resultantly, award was passed on 9.12.2016 (Annexure P/4) and possession was taken as per Clause 8 in which it has been mentioned that the same was done after offering the compensation. Relevant Clause 8 reads as under:-
"8. POSSESSION
After the announcement of award the possession of the land measuring 86.41 acres acquired vide this award, has been taken over after offering the compensation. The possession of land handed over to the representative of HUDA, Gurugram, vide Rapat No.277 dated 09-12-2016 entered in the Roznamcha Wakayati of Patwari Halqua Badshahpur except the land which is subject matter of CWPs wherein land owners/interested persons have taken order of stay from dispossession from the Hon'ble Punjab and Haryana High Court. The land thus acquired, of which the possession has been taken vests completely with the Haryana Urban Development Authority, free from all encumbrances from today i.e. 09-12-2016."
5. The payment of compensation however, was received by the petitioner only on 9.6.2017 (Annexure P/5) by way of RTGS transfer though the same had been sanctioned on 3.4.2017 which would be clear from communication dated 30.6.2017 which was addressed to the petitioner by respondent no.2. Resultantly, a representation dated 17.7.2017 (Annexure P/6) was filed by the petitioner that in view of Section 80 of the 2013 Act, that the petitioner is entitled to interest on the delayed period of 181 days from 9.12.2016 to 9.6.2017 and a sum of Rs. 93,82,161/- was claimed on the account of interest for the delayed payment of compensation. It is on the said basis, the present writ petitions have been filed.
6. The stance of the respondents in the written statement is that the petitioner should have furnished the bank details and other relevant documents for the disbursal of compensation and on perusal of documents it was found that petitioner company passed the resolution only on 26.12.2016 authorizing its representative to do all necessary things for the release of compensation. The affidavit had been prepared and submitted on 12.4.2017 for disbursal of compensation in the office and thus there was no delay in making the payment.
7. Section 80 of the 2013 Act which is para-materia to the provisions of Section 34 of the 1894 Act reads
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