Bombay High Court
Mahadeo Waghuji Parkhi vs General Manager Yvt on 2 May, 2016
Bench: Ravi K. Deshpande
fa13.05 +.J.odt 1/11
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR
FIRST APPEAL NO.13 OF 2005
FIRST APPEAL NO.30 OF 2005
FIRST APPEAL NO.31 OF 2005
FIRST APPEAL NO.32 OF 2005
FIRST APPEAL NO.33 OF 2005
FIRST APPEAL NO.34 OF 2005
FIRST APPEAL NO.35 OF 2005
AND
FIRST APPEAL NO.36 OF 2005
FIRST APPEAL NO.13 OF 2005
Ramkrishna Uddhao Dhawas
Aged about 33 years,
Occ: Cultivation,
R/o Borgaon, Tah. Wani,
Dist. Yavatmal. ....... APPELLANT
...V E R S U S...
Western Coalfields Limited,
A Company Regd. Under Companies
Act, 1956 having its Head Office at
Coal Estate, Civil Lines, Nagpur.
(to be served through: Chief General
Manager, Wani North Area at and
Post Ukani, Tah. Wani,
Dist. Yavatmal (Mah.). ....... RESPONDENT
----------------------------------------------------------------------------------------------------
Shri M.P. Khajanchi, Advocate for Appellant.
None for Respondent.
----------------------------------------------------------------------------------------------------
::: Uploaded on - 30/05/2016 ::: Downloaded on - 30/07/2016 00:37:35 :::
fa13.05 +.J.odt 2/11
FIRST APPEAL NO.30 OF 2005
1] Smt. Parvatabai wd/o Vishwanath Gowardipe.
2] Mahadeo Vishwanath Gowardipe.
3] Smt. Anusuya w/o Wasudeo Aswale.
4] Sau. Kalawati w/o Gajanan Borde.
5] Sau. Rekha Parasram There.
6] Sau. Nanibai w/o Vitthal Thakre.
All Major, Occ: Agriculturist,
R/o Borgaon, Tah. Wani,
Dist. Yavatmal. ....... APPELLANTS
...V E R S U S...
Western Coalfields Ltd,
Through its' General Manager,
Wani North Area, At & Post Ukani,
Tah. Wani, Dist. Yavatmal. ....... RESPONDENT
----------------------------------------------------------------------------------------------------
Shri N.G. Solao, Advocate for Appellant.
None for Respondent.
----------------------------------------------------------------------------------------------------
FIRST APPEAL NO.31 OF 2005
Amol Mahadeo Parkhi,
Aged Major, Agriculturist,
R/o Borgaon, Tah. Wani,
Dist. Yavatmal. ....... APPELLANT
...V E R S U S...
General Manager,
Western Coalfields Ltd.,
Wani North Area,
At & Post: Ukani, Tah. Wani,
Dist. Yavatmal. ....... RESPONDENT
::: Uploaded on - 30/05/2016 ::: Downloaded on - 30/07/2016 00:37:35 :::
fa13.05 +.J.odt 3/11
----------------------------------------------------------------------------------------------------
Shri N.G. Solao, Advocate for Appellant.
None for Respondent.
----------------------------------------------------------------------------------------------------
FIRST APPEAL NO.33 OF 2005
Mahadeo Viswanath Govardipe,
Aged Major, Agriculturist,
R/o Borgaon, Tah. Wani,
Dist. Yavatmal. ....... APPELLANT
...V E R S U S...
General Manager,
Western Coalfields Ltd.,
Wani North Area,
At & Post: Ukani, Tah. Wani,
Dist. Yavatmal. ....... RESPONDENT
----------------------------------------------------------------------------------------------------
Shri N.G. Solao, Advocate for Appellant.
None for Respondent.
----------------------------------------------------------------------------------------------------
FIRST APPEAL NO.32 OF 2005
Mahadeo Waghuji Parkhi,
Aged Major, Agriculturist,
R/o Borgaon, Tah. Wani,
Dist. Yavatmal. ....... APPELLANT
...V E R S U S...
General Manager,
Western Coalfields Ltd.,
Wani North Area,
At & Post: Ukani, Tah. Wani,
Dist. Yavatmal. ....... RESPONDENT
----------------------------------------------------------------------------------------------------
Shri N.G. Solao, Advocate for Appellant.
None for Respondent.
----------------------------------------------------------------------------------------------------
::: Uploaded on - 30/05/2016 ::: Downloaded on - 30/07/2016 00:37:35 :::
fa13.05 +.J.odt 4/11
FIRST APPEAL NO.34 OF 2005
Giridhar s/o Undru Gowardipe,
Aged Major, Agriculturist,
R/o Borgaon, Tah. Wani,
Dist. Yavatmal. ....... APPELLANT
...V E R S U S...
General Manager,
Western Coalfields Ltd.,
Wani North Area,
At & Post: Ukani, Tah. Wani,
Dist. Yavatmal. ig ....... RESPONDENT
----------------------------------------------------------------------------------------------------
Shri N.G. Solao, Advocate for Appellant.
None for Respondent.
----------------------------------------------------------------------------------------------------
FIRST APPEAL NO.35 OF 2005
Dayanand Mahadeo Parkhi,
Aged Major, Agriculturist,
R/o Borgaon, Tah. Wani,
Dist. Yavatmal. ....... APPELLANT
...V E R S U S...
General Manager,
Western Coalfields Ltd.,
Wani North Area,
At & Post: Ukani, Tah. Wani,
Dist. Yavatmal. ....... RESPONDENT
----------------------------------------------------------------------------------------------------
Shri N.G. Solao, Advocate for Appellant.
None for Respondent.
----------------------------------------------------------------------------------------------------
FIRST APPEAL NO.36 OF 2005
Nilkanth s/o Undru Gowardipe
::: Uploaded on - 30/05/2016 ::: Downloaded on - 30/07/2016 00:37:35 :::
fa13.05 +.J.odt 5/11
Aged Major, Agriculturist,
R/o Borgaon, Tah. Wani,
Dist. Yavatmal. ....... APPELLANT
...V E R S U S...
General Manager,
Western Coalfields Ltd.,
Wani North Area,
At & Post: Ukani, Tah. Wani,
Dist. Yavatmal. ....... RESPONDENT
----------------------------------------------------------------------------------------------------
Shri N.G. Solao, Advocate for Appellant.
None for Respondent.
----------------------------------------------------------------------------------------------------
CORAM: R.K. DESHPANDE, J.
nd MAY, 2016.
DATE: 2
COMMON JUDGMENT :
1] In all these appeals preferred under Section 20 of the Coal
Bearing Areas (Acquisition and Development) Act, 1957 ("said Act" for
short) the challenge is to the award passed by the Special Tribunal
constituted under Section 14(2) of the said Act to determine the question
of enhancement of compensation as provided under Section 73 of the
said Act, to the extent it refuses to grant interest as contemplated by
Section 34 of the Land Acquisition Act, which according to the appellants
is made applicable by Circular dated 12 th February, 1986 issued by the
Government of India, Ministry of Energy, Department of Coal. In all
these matters the claim is for the interest at the rate of nine per cent per
annum for a initial period of one year from the date of taking possession
fa13.05 +.J.odt 6/11
of the land and at the rate of fifteen per cent per annum after expiry of
period of one year till the amount of compensation is paid or deposited
by the acquiring body.
2] The point for determination in all these appeals is as under:
Whether the appellant - claimants are entitled to
interest at the rate of nine percent per annum from the
date of taking possession for a period of one year and
at the rate of fifteen percent per annum for subsequent
years, till the payment or deposit of the amount of
compensation by the acquiring body, in terms of
Section 34 of the Land Acquisition Act, 1894?
3] All these cases arise out of the acquisition under the Coal
Bearing Areas (Acquisition and Development) Act, 1957 and not under
the provisions of the Land Acquisition Act, 1894. The provisions of the
Coal Bearing Areas (Acquisition and Development) Act, 1957 will have
to be considered. Section 14 of the said Act deals with determining
compensation and sub-section (5) therein being relevant is reproduced
below:
14. Method of determining compensation.--
(1) ---
fa13.05 +.J.odt 7/11
(2) ---
(3) ---
(4) ---
(5) The Tribunal shall, after hearing the dispute,
make an award determining the amount of compensation
which appears to it to be just and specify the person or
persons to whom the compensation shall be paid; and in
making the award the Tribunal shall have regard to the
circumstances of each case and to the foregoing provisions
of this Act with respect to the manner in which the amount
of compensation shall be determined insofar as the said
provisions or any of them may be applicable.
The aforesaid provision operates only in cases where the compensation is
not fixed by agreement between the parties. It is the Tribunal constituted
under Section 14(2) which is required to determine the compensation
payable for the acquisition of land. In the present case, there was no
agreement between the parties, and hence, the compensation in all these
cases has been determined by the Tribunal constituted under Section
14(2) of the said Act. The Tribunal rejected the claim for enhancement
of compensation and that has not been challenged in all these cases.
4] The Tribunal has directed payment of interest in terms of
Section 17(3) of the said Act. Section 17(3) of the said Act, which is
reproduced below:
17. Payment of compensation .--
(1) ---
(2) ---
fa13.05 +.J.odt 8/11
(3) When the amount of compensation is not paid
or deposited as required by this section, the Central
Government shall be liable to pay interest thereon at the
rate of five per centum per annum from the time the
compensation became due until it shall have so paid or
deposited.
In terms of the aforesaid provision, when the amount of compensation is
not paid or deposited as required by the said provision, the Central
Government is made liable to pay interest thereon at the rate of five per
centum per annum from the time, the compensation became due until it
shall have been so paid or deposited. In the present case, the Tribunal
has awarded interest at the rate of five per centum per annum in terms
of Section 17(3) of the said Act.
5] In the present appeal, the claim is for payment of interest as
contemplated under Section 34 of the Land Acquisition Act on the basis
of the Circular dated 12th February, 1986 issued by the Government of
India, Ministry of Energy, Department of Coal. The relevant provision is
contained in para 3 of the said circular, which is reproduced below:
3) Compensation :- The land acquisition authorities should
streamline the procedure for payment of compensation in the
light of the provisions of the recently amended Land
Acquisition Act. It should be ensured that the compensation
amount is disbursed to the real beneficiaries within a
reasonable time. The Department of Rural Development will
separately undertake case studies on the procedure being
followed in regard to land acquisition, payment of
compensation to affected persons, the time taken to complete
fa13.05 +.J.odt 9/11
the formalities etc. and suggest measures for further
improvement in the system. It will be the responsibility of the
concerned state governments to remove any encroachments
noticed on land notified under the Land Acquisition Act.
In terms of the aforesaid provision the claimants are made entitled for
payment of compensation in the light of the provisions of the recently
amended Land Acquisition Act.
6]
Prior to issuance of this circular, the relevant amendments
introduced under the provisions of the Land Acquisition Act are
contained in Section 23 (1-A), 28 and 34 of the said Act.
Sub-section (1-A) has been introduced under Section 23, whereas
provisos are added below Section 28 and 34. By virtue of the circular
dated 12th February, 1986, the provisions of Section 23(1-A) and 28 of
the Land Acquisition Act become applicable to the acquisition made
under the provisions of the Coal Bearing Areas Act and the learned
Single Judge of this Court has taken such a view in case of Chinnubai
wd/o Durgaji Kamble and others vs. Western Coalfields Ltd., Chandrapur
reported in 2008(2) Mh.L.J. 706. The question is therefore, no longer res
integra.
7] The claim in this case is not for the benefit under Sections
23(1-A) and 28, but it is for interest in terms of amended provisions of
fa13.05 +.J.odt 10/11
Section 34 of the land Acquisition Act, which is reproduced below:
34. Payment of interest.--
When the amount of such compensation is not paid or
deposited on or before taking possession of the land, the
Collector shall pay the amount awarded with interest thereon
at the rate of [nine per centum] per annum from the time of
so taking possession until it shall have been so paid or
deposited:
[Provided that if such compensation or any part thereof
is not paid or deposited within a period of one year from the
date on which possession is taken, interest at the rate of fifteen
per centum per annum shall be payable from the date of
expiry of the said period of one year on the amount of
compensation or part thereof which has not been paid or
deposited before the date of such expiry.]
Section 17(3) of the Coal Bearing Areas Act covers the
period which is also covered by Section 34 of the Land Acquisition.
Sub-section (3) of Section 17 makes entitlement to interest only at the
rate of five per centum per annum from the time the compensation
becomes due, until it shall have been so paid or deposited. If the
provision of the Circular dated 12th February, 1986 is to be construed as
making applicable the amended provision of Section 34 of the Land
Acquisition Act to the cases of acquisition under the Coal Bearing Areas
Act, it shall clearly run contrary to the provisions of sub-section (3) of
Section 17 of the said Act. The field is already occupied and unless the
provision of Section 17 of the said Act is amended, the circular would
not confer the benefit of nine per cent and fifteen per cent interest, as
fa13.05 +.J.odt 11/11
contemplated by Section 34 of the Land Acquisition Act. The claimants
are therefore, not entitled to interest in terms of Section 34 of the Land
Acquisition Act.
8] So far as the decision of the learned Single Judge of this
Court in Chinnubai wd/o Durgaji Kamble cited supra is concerned, the
basic facts giving rise to the entitlement of the claimants to interest
under Section 34 are absent. It seems that this Court, in the said decision
was concerned only with the grant of benefits under Section 23(1-A) and
Section 28 of the Land Acquisition Act. There is no independent
discussion on the applicability of Section 34 of the Land Acquisition Act.
In view of this, the simple direction by the Court for payment of interest
at the rate of nine percent for the first year and fifteen percent interest
per annum for the subsequent years cannot be construed to be the ratio
of the decision on the interpretation or applicability. The decision is,
therefore, not applicable to the facts of this case.
9] In the result, all these appeals are dismissed. No order as to
costs.
JUDGE
NSN
