Interest under Section 34 of the Land Acquisition Act, 1894 is to be computed on the entire compensation amount, which comprises of the market value of the land, 30% solatium and 12% additional market value.

Headnote:
LAND ACQUISITION - INTEREST - CALCULATION - [SECTION 34 OF THE LAND ACQUISITION ACT, 1894]
Fact of the Case:

The land loser initiated execution proceedings after the Supreme Court enhanced the compensation amount for the acquired land. The land loser filed a Memo of Calculation stating that the entire amount due to him had not been paid. The State, however, disagreed with the Memo of Calculation filed by the land loser and filed its own Memo of Calculation.
Finding of the Court:

The Executing Court, after considering both the Memo of Calculations, came to the conclusion that the fresh calculation memo submitted by the land loser was correct and that the State was liable to pay the said amount.
Issues: Whether the State had paid the entire compensation amount and there was nothing due.
Ratio Decidendi: The State has not computed interest as provided under Section 34 of the 1894 Act on the entire compensation, which comprises of the aggregate of the market value, solatium and the 12% additional market value.
Final Decision: The State is directed to pay to the land loser, Rs.14,43,930/-, with further interest at 15% p.a. from 28.11.2020 till the date of payment.

IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 6^TH DAY OF JANUARY 2023 BEFORE THE HON’BLE MR.JUSTICE N.S.SANJAY GOWDA W.P.No.102245/2022 (GM-CPC)

BETWEEN:

The Special Land Acquisition Officer Upper Krishna Project Bilagi-587 116 Dist: Bagalkot … Petitioner (By Smt.K.Vidyavati, AAG for Sri.Shivaprabhu Hiremath, AGA)

AND:

Yeshvant S/o.Krishna Bakshi Dead by his LRs

1. Madhav S/o. Bhagavant Rao Bakshi Age: 62 years Occ: Agril R/o.Mudhol District- Bagalkot- 587 313 2. Balchandra R.Bakshi Age: 60 Years Occ: Agril, R/o.Mudhol Dist: Bagalkot-587 313

3. Miland S/o.Vithan Ral Bakshi Age: 56 Years Occ: Agril, R/o.Mudhol Dist: Bagalkot-587 313 … Respondents (By Sri.S.S.Patil, Advocate)

This writ petition is filed under Articles 226 & 227 of the Constitution of India praying to issue a writ in the nature of certiorari to quashing the order passed in E.P. No.44/2019 (LAC No.108/2004) on the file of Senior Civil Judge and JMFC Bilagi, Dated: 20.11.2021 vide Annexure-A and etc.

This writ petition, having been heard and reserved for orders on 16.12.2022, coming on for pronouncement of orders, this day, the Court made the following:

ORDER

1. On 25^th of January 2003, a notification under Section 4 (1) of the Land Acquisition Act, 1894 (for short, "the 1894 Act") was issued. This was followed by a declaration and ultimately an award was passed on

22^nd of July 2003.

2. By this award, the market value for the lands acquired was fixed at Rs.96,164/- per acre for irrigated lands.

3. The land loser, being dissatisfied with determination of compensation by the Land Acquisition Officer, sought for reference under Section 18 of the 1894 Act and the Civil Court after considering the matter proceeded to enhance the compensation to Rs.6,75,000/- per acre.

4. Not being satisfied with this determination also, the land loser preferred an appeal to this court and this court enhanced the compensation further to Rs.13,93,920/-.

5. The land loser, being dissatisfied with this compensation also, approached the Supreme Court and the Supreme Court, after hearing the parties, ultimately, enhanced the compensation Rs.23,13,600/- per acre.

6. As this amount awarded as compensation was not paid, the petitioner initiated execution proceedings. In the said execution proceedings, the land loser filed a Memo of Calculation stating that the entire amount due to him had not been paid. The Memo of Calculation filed by the land loser before the Executing Court reads as follows:

1	Market value fixed by the Hon'ble Supreme Court of India, Delhi at the Rate of Rs.26,13,600/- per acre total extent 0A-15Gu	Rs.9,80,100.00
2	30% Solitium	Rs.2,84,030.00
3	12% Additional Market Value from 22-02-2003 to 22-07-2003 (151 days)	48,655.00
	Total	Rs.13,22,785.00
4	Less Paid by LAO	Rs.48,670.00
	Balance	Rs.12,74,115.00
5	9% Interest Per annum from 15-09-2003 to 14-09-2004 on Rs.12,74,115.00 (365 days)	Rs.1,14,670.00
6	15% Interest from 15-09-2004 to 19-02-2013 on Rs.12,74,115.00 (3078 days)	Rs.1,14,670.00
7	High Court Costs	Rs.2,11,061.00
	TOTAL	Rs.30,00,453.00
8	Less Deposited in court including Rs.6,45,218/- + IT Paid	Rs.6,84,358.00

	Rs.39,140.00
	Balance	Rs.23,16,095.00
9	15% Interest from 20-12-2013 to 22-12-2014 on Rs.23,16,095/- (670 days)	Rs.6,37,719.00
	Total	Rs.29,53,814.00
10	Less Deposited in court including Rs.8,90,324 + IT Paid Rs.58,497/-	Rs.9,48,821.00
	Balance	Rs.20,04,993.00
11	15% Interest from on Rs.20,04,993/- from 23-12-2014 to 21-09-2016 (638 days)	Rs.52,56,926.00
	Total	Rs.72,61,919.00
12	Less amount deposited in court	Rs.2,15,398.00
	Balance	Rs.70,46,521.00
13	Interest 15% on Rs.70,46,521/- from 22-09-2016 to 30-10-2017 (4037 days)	Rs.1,16,90,467.00
	Total Balance	Rs.1,87,36,988.00
14	Less amount deposited in court including 17,36,279/- + IT 1,24,331	Rs.18,60,610.00
	Balance	Rs.1,68,76,378.00
15	Interest 15% on Rs.1,68,76,378/- from 31-10-2017 to 18-12-2020 (

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2023 Supreme(Online)(KAR) 17535

Interest under Section 34 of the Land Acquisition Act, 1894 is to be computed on the entire compensation amount, which comprises of the market value of the land, 30% solatium and 12% additional market value.

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