Singana Srinivasulu Reddy vs The State Of Andhra Pradesh
2022 Latest Caselaw 7113 AP

Citation : 2022 Latest Caselaw 7113 AP
Judgement Date : 16 September, 2022

Andhra Pradesh High Court - Amravati

Singana Srinivasulu Reddy vs The State Of Andhra Pradesh on 16 September, 2022

             HON'BLE SRI JUSTICE D.V.S.S.SOMAYAJULU

                     WRIT PETITION No.17269 of 2018

ORDER:

1. This Writ Petition is filed for the following relief:

"....to issue a Writ, order or direction more particularly one in the nature of Writ of mandamus declaring the action of the respondents 2 to 4 in not paying interest @ 9% for the 1st year and 15% from the 2nd year onwards till the realization of the full amount from the date of Award dt.1801.1999 on the solatium and additional market value to the petitioner is arbitrary, illegal, without jurisdiction and consequently direct the respondents to pay the interest @ 95 for the 1st year and 15% from the 2nd year onwards till the realization of the full amount from the date of the Award dt.18.01.1999 on the solatium and additional market value to the petitioner and pass such other order or orders in the interest of justice."

2. The facts in this case are not strictly in dispute. Therefore, with

the consent of both the learned counsel, Writ Petition is taken up for

hearing.

3. Sri Ch.C.Krishna Reddy, learned counsel for the petitioner

submits that the land of the petitioner was acquired by the

respondents and that as the petitioner was dissatisfied with the

compensation paid, the matter was referred to the Senior Civil Judge

Court, Rajampeta Court under Section 18 of the Land Acquisition

Act. Thereafter, the L.A.O.P. No.6 of 2007, filed by the petitioner, was

referred to Lok Adalath and settled before the 3rd Additional District

Judge (Fast Track Court), Kadapa at Rajampeta, who passed an

Award dated 27.01.2012 granting compensation to petitioner. The

amount so awarded was paid to the petitioner by Cheque dated

21.11.2013. This case is, therefore, filed claiming interest on the

delayed payment with interest @ 9% p.a., for the 1st year and @ 15%

p.a., for the 2nd year, for the period between the date of the Lok

Adalath Award and the date of actual payment i.e., from 21.07.2012

to 21.11.2013. Learned counsel for the petitioner submits that even

according to the Land Acquisition Act, 2013 the petitioner is entitled

to interest as claimed for. He points out that in the counter affidavit

filed the essential issues raised by the petitioner have not been

denied and it is only said that the petitioner accepted full and final

settlement of the amount. The claim for interest is also denied on the

ground that there is no agreement. Learned counsel for the

petitioner argues that he is not dissatisfied with the amount of the

Award but he is only claiming interest for the delayed payment.

4. Learned Government Pleader for Land Acquisition, on the other

hand argues in line with what is stated in the counter affidavit.

According to him the Land Acquisition Award is a full and final

settlement and that the petitioner is not entitled to receive any

further amount. The further submission of the learned Government

Pleader is that once the Award is passed without any interest, this

Court cannot grant further interest on the amounts which were paid.

It is also submitted that although the amount was paid in 2013 a

claim for interest is made only in this Writ Petition in the year 2018.

Therefore, learned Government Pleader submits that the claims

should be dismissed.

5. After hearing both the learned counsel, this Court notices that

there is no dispute about the amounts or the dates. The date of the

Award is 21.07.2012. The Award itself stated that the Referring

Officer shall pay the amount within three months from the date of

this Award i.e., 21.07.2012. The fact remains that the amount was

only paid on 21.11.2013. No explanation is forthcoming in the

counter for this delay. Admittedly, no receipt or document was taken

to show that this amount of Rs.7,84,596/-, which was received in

November, 2013 in full and final settlement of the claim and that

consequently the claim for interest is not correct. The amount was

paid as per the learned Government Pleader by Cheque bearing

No.907245, dated 21.11.2013. At that point of time respondents did

not take any receipt or undertaking from the petitioner stating that

this amount is being received in full and final settlement of the

payment.

6. As far as the claim of interest is concerned, this Court is of the

opinion that a person who is deprived of the use of his money is

entitled to the compensation for the delayed payment. It may be

called as interest or damages. The Constitution Bench of India in the

case of Irrigation Dept., Govt. of Orissa v. G.C. Roy1 held as

follows:

"...A person deprived of the use of money to which he is legitimately entitled has a right to be compensated for the deprivation, call it by any name. It may be called interest, compensation or damages. This basic consideration is as valid for the period the dispute is pending before the arbitrator as it is for the period prior to the arbitrator entering upon the reference. This is the principle of Section 34, Civil Procedure Code and there is no reason or principle to hold otherwise in the case of arbitrator."

7. Although it is a judgment under the Arbitration and

Conciliation Act, still the ratio laid down is applicable to the facts of

this case. No reason is forthcoming for the delayed payment. Once

the land has been acquired; the petitioner is entitled to

compensation. If the matter was pending in Court he would have, in

the normal case, been entitled to interest as per the Act. Therefore,

this Court is of the opinion that there is no reason to deny the

petitioner's claim for interest. Admittedly, the Cheque was paid on

21.11.2013 and the terms of the compromise, which mandated the

payment in three months as recorded in the Lok Adalath Award, was

not followed. Therefore, this Court is of the opinion, the petitioner is

entitled to claim interest at the rate of 9% per annum for the first