Statutory interest under Section 80 of the Act must be included in compensation calculations, covering total compensation from the date of possession until payment.

ORAL ORDER

(PER : HONOURABLE THE CHIEF JUSTICE MRS.

JUSTICE SUNITA AGARWAL)

[1] The written instructions supplied by Ms. Hetal Patel, Assistant Government Pleader appearing for the State – Respondents, wherein it is admitted that compensation determined under the Award dated 16.03.2023 does not include statutory interest under Section 80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 .

[2] The present petition has been filed seeking a direction in the nature of mandamus commanding the respondent authorities to award statutory interest over the awarded amount as per Section 80 of the Right To Fair Compensation And Transparency In Land Acquisition, Rehabilitation and Resettlement Act, 2013 [“Act of 2013” for short] effectively from the date of possession of the land in question till the date of its realization.

[3] It is argued by the learned counsel for the petitioners that statutory interest of 9% & 15% from the date of taking possession until the awarded amount is paid or deposited, is necessarily to be included in the land acquisition award which has been prepared under Section 23 of the Act of 2013. The contention is that this element of interest for deprivation of the right of the petitioners to enjoy the land till the awarded amount is deposited, cannot be denied by the award making authority.

[4] On the said submission made by the learned counsel for the petitioners when we have gone through the award dated 16.03.2023, it is evident that apart from all other elements of compensation, an amount at the rate of 9% from the date of taking possession has been awarded. The contention of the learned counsel for the petitioners is that 9% over the compensation amount, which is indicated in the award is computed as rent of the land in question and it is not the interest on the compensation amount within the meaning of Section 80 of the Act of 2013. A perusal of the award indicates that an amount of Rs.1,87,50,305/- was paid to the land owners at the time of taking possession, after issuance of Notifications for acquisition under Sections 11(1) and 19(1) of the Land Acquisition Act, 1894 . The award indicates that Section 11(1) Notification was published on 25.02.2022 whereas, Section 19(1) Notification was issued on 04.06.2022. The date of taking possession of the land in question, however, has not been disclosed in the award nor any determination of interest at the rate of 9% from the date of taking possession and at the rate of 15% after one year from the date of taking possession has been computed under the award. It is evident that the petitioners have been forcibly dispossessed of the land in property after issuance of Notifications under Sections 11(1) and 19(1) of the Land Acquisition Act, 1894 on payment of advance compensation without declaration of the award. The award though has been declared only on 16.03.2023, but as against the mandate of the Act of, 2013. Insofar as amended award is concerned, the same pertains to implementation of Factor-2, as determined by the State Government with regard to the land pertaining to the rural area.

[5] A perusal of the award indicates that though all other elements of compensation under the Act of 2013 have been included in the award but while determining the statutory interest under Section 80 of the Act of 2013, 9% interest has been computed from the date of taking possession of the land in question till the date of issuance of acquisition notifications under Sections 11(1) and 19(1) of the Land Acquisition Act, 1894 .

[6] It is submitted by the learned Assistant Government Pleader appearing for the State respondents that,