SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1962 Supreme(Online)(Gau) 8

ASSAM HIGH COURT
S. K. Dutta, J
All India Tea and Trading Co. Ltd v. Sub-divisional Officer of Mangaldai
Application under Art.226



Advocates:
For the Appellants/Petitioners: Not listed
For the Respondents: Not listed

A landowner is entitled to interest for deprivation of possession of land until compensation is fully paid.

Headnote:The petitioner sought interest on compensation for land acquired under the Assam Land (Requisition and Acquisition) Act, 1948. The High Court ruled that the petitioner was entitled to interest for deprivation of possession, rejecting the respondent's claim of no provision for interest in the Act. The Court reiterated principles on compensation interest derived from prior judgments, establishing that interest must be paid from dispossession to compensation receipt. The Collector was directed to consider the petitioner's application for interest. Issues related to the applicability and interpretation of the Assam Act and Land Acquisition Act were examined, where the Court emphasized the rights arising from dispossession necessitating interest beyond just compensation amounts. The ruling concluded with directions for the Collector to consider interest on the determined compensation amount, affirming the petition's claims and establishing the rights of land owners deprived of possession.

Table of Content
1. constitutional application for compensation interest. (Para 1 , 2)
2. eligibility for interest based on deprivation. (Para 3 , 4 , 5 , 6)
3. court validates mandamus for interest claims. (Para 7 , 8)
4. collector's obligation to grant interest. (Para 9 , 10)

1. This rule arises out of an application under Art.226 of the Constitution of India.

2. The facts which are not disputed and which have led to the present petition are that the petitioner, who is the owner of a tea garden known as Singrimari Tea Estate, filed an application on the 21st June 1960 before the Sub-divisional Officer of Mangaldai, acting as the Collector, for payment of a sum of Rs.6,255.67 Np. as interest payable to the petitioner on the amount of compensation. The land of the petitioner measuring 511 Bighas 2 Kathas 9 Lessas situate in village Kawadanga, Mouza Syamabari, District Dorrang, was requisitioned by the State Government under the provisions of the Assam Land (Requisition and Acquisition) Act, 1948 , hereinafter called 'the Act.' Since the date of requisition the land had been in possession of the State. By notification dated 7th January 1959 the aforesaid land was acquired by the State Government with effect from the 14th January, 1959 under the provisions of S.4(1) of the Act.
Under the said Act the possession of the said land already being with the Government from the date of the requisition, the land vested absolutely with the Government on or from the 14th day of January 1959. By a fiction of law, therefore, the possession by the Government on acquisition will be deemed to have been taken from the 14th day of January, 1959. By an award dated the 26th November 1959 passed under S.7 of the Act, the Sub-divisional Officer, Mangaldai, awarded a sum of Rs.76,723.50 Np. as compensation for compulsory acquisition of the land. There is no dispute with regard to the amount of compensation awarded by the Land Acquisition Officer. No such objection was ever raised by the petitioner and consequently no reference was made to the Civil Court with regard to the amount which had been awarded by the Land Acquisition Officer.
The petitioner's managing director was informed by a letter dated the 5th December, 1959, about the amount of compensation determined by the Land Acquisition Officer. The Collector, however, in spite of the determination of the amount of compensation by his award dated the 26th November, 1959, did not deposit the amount till the 25th of May, 1960. On that date the amount was withdrawn by the petitioner under protest, as alleged by him in paragraph 5 of his application. This fact has not been denied by the respondent. The petitioner claims interest from the 14th January 1959, the date on which he was dispossessed and the date on which the possession will be deemed to have been taken by the State Government, till the 25th May, 1960 when the petitioner actually received the amount. He has calculated the interest at the rate of six per cent per annum on that amount and has claimed Rs.6,255.67 Np.
This petition was rejected by the Sub-divisional Officer, Mangaldai, on the 24th June, 1960, on the ground that there is no provision in the Act for payment of interest. The Sub-divisional Officer further held that the acquisition of the land not being under the Land Acquisition Act, the provisions of S.34 of the Land Acquisition Act were not attracted. Thereafter notices were sent by the petitioner to the Chief Secretary to the Government of Assam, Shillong, and the Secretary in the Revenue Department, Government of Assam, Shillong, on the 30th July, 1960, to the effect that the provisions of S.7(2) of the Act as amended excluding the operation of S.23(2) of the Land Acquisition Act, 1894 in the award are repugnant and void. We are, however, not concerned with that part of the case. The petitioner was, however, not paid any interest for the period mentioned above. By means of this petition, the petitioner has claimed interest on the amoun
















Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

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

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top