On 17th November 2022, the Supreme Court in a Division Bench comprising of Justice M.R. Shah and Justice M.M. Sundresh observed that liability of statutory benefits and the interest may be available under the Land Acquisition Act, 1894 for the delayed period but in the present case this liability to pay for the delayed period of 22 years would be a financial burden upon the public body and it may increase the project cost which shall be against the public interests. (New Okhla Industrial Development Authority Vs. Rameshwar @ Ramesh Chandra Sharma (Dead) Through Legal Heir & Anr.)
Facts of the Case:
The Notification under Section 4(1) of the Land Acquisition Act, 1894 was issued on 05.01.1982. The Reference Court determined the compensation at Rs.20/- per sq. yard by impugned judgment dated 15.12.1993. After a period of 22 years the land owners preferred the present appeals before the High Court. By the impugned common judgment and order the High Court after condoning the delay of 22 years in preferring the appeals has enhanced the amount of compensation to Rs.149/- per sq. yard Feeling aggrieved and dissatisfied with the impugned common judgment and order dated 18.12.2018 passed by the High Court of Judicature at Allahabad in respective First Appeals No.657 of 2017 and other allied First Appeals by which after condoning the delay of 22 years in preferring the respective first appeals, the High Court has enhanced the amount of compensation for the lands acquired to Rs.149 per sq. yard, the New Okhla Industrial Development Authority (NOIDA) has preferred the present appeals.
Contentions of the Appellant:
The counsel for the appellant submitted that “there was a huge delay of 22 years in preferring the appeals by the land owners, which ought not to have been condoned by the High Court. in any case the acquiring body – NOIDA shall not be saddled with the liability to pay the statutory benefits and the interest for 22 years, as it would cause financial burden upon the NOIDA and it may affect the project cost.”
Contentions of the Respondents:
The counsel for the respondents submitted that “as such the land owners shall be entitled to compensation at Rs.297/- per sq. yard as determined by this Hon’ble Court in the case of Nanak (Deceased) through LRS. Vs. New OKHLA Industrial Development Authority and another. In any case when it has been found that the land owners shall be entitled to compensation at Rs.149/- per sq. yard considering the decision of this Hon’ble Court in the case of New Okhla Industrial Development Authority (NOIDA) VS. Deo Karan & Ors. and when the same was with respect to the acquisition of the year 1982 and the land owners are entitled to just compensation, no error has been committed by the High Court in entertaining the application for condoning the delay in preferring the appeals and awarding the compensation at par with other land owners whose lands came to be acquired in the year 1982.”
Observations and Judgment of the Court:
The hon’ble court observed that “It is the NOIDA who has preferred the present appeals. Under the circumstances in the appeals preferred by the NOIDA questioning the determination of the compensation at Rs.149/- per sq. yard, the land owners cannot be permitted to say that they are entitled to the enhanced amount of compensation over and above Rs.149/- per sq. yard. As the claimants are held to be entitled the enhanced amount of compensation, in the facts and circumstances of the case, the High Court can be said to be justified in condoning the delay. However, at the same time, the High Court has erred in awarding other statutory benefits and interest for the delayed period. To saddle with the liability to pay statutory benefits and interest for the delayed period upon the beneficiary/acquiring body would be a financial burden upon the public body and it may increase the project cost which shall be against the public interests. It cannot be disputed that the liability towards the statutory benefits and the interest under the Act, 1984 would be a huge liability considering the interest at the rate of 15% per annum, solatium, price rise etc. Therefore, while condoning the delay and enhancing the amount of compensation at par with other land owners, the High Court ought not to have saddled the liability upon the appellant to pay statutory benefits and the interest payable under the Land Acquisition Act, 1894 for the delayed period.”
The present appeals were partly allowed holding that claimants shall not be entitled to any statutory benefits including the interest payable under the Land Acquisition Act, 1894 on the enhanced amount of compensation for the period between 15.12.1993 till the respective first appeals after curing the defects were filed.
Case: New Okhla Industrial Development Authority Vs. Rameshwar @ Ramesh Chandra Sharma (Dead) Through Legal Heir & Anr.
Citation: Civil Appeal Nos.8331 - 8345 Of 2022
Bench: Justice M.R. Shah and Justice M.M. Sundresh
Date: November 17, 2022.
Read Judgment @Latestlaws.com
Picture Source :
