Smt. Samudrabai Wd/O Sudhakarrao ... vs State Of Maharashtra, Thr. ...
2022 Latest Caselaw 7062 Bom

1-J-WP-5544-17                                                           1/7


          IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                    NAGPUR BENCH, NAGPUR.

                     WRIT PETITION NO.5544 OF 2017


Samudrabai wd/o Sudhakarrao Thokal,
through Power of Attorney Holder
Omprakash S/o Sudhakarrao Thokal,
aged about 45 years, Occ. Agriculturist,
r/o At Post Kamatwada (Channi),
Tq. Darwha, Dist. Yavatmal                               .. Petitioner

-vs-

1. State of Maharashtra,
   Through Secretary,
   Irrigation Department,
   Mantralaya, Mumbai

2. The Executive Engineer,
   Zilla Parishad, Irrigation Department,
   Yavatmal, District Yavatmal

3. The Land Acquisition Officer,
   Road Project, Z.P. Yavatmal
   District Yavatmal                                     ... Respondents

Shri P. S. Gawai, Advocate for petitioner.
Ms N. P. Mehta, Assistant Government Pleader for respondents.

                 CORAM : A. S. CHANDURKAR AND URMILA JOSHI-PHALKE, JJ.

DATE : July 22, 2022.

Oral Judgment : (Per : Urmila Joshi-Phalke, J.)

By this petition the petitioner has claimed interest under

Section 34 of the Land Acquisition Act, 1894 (for short, the said Act) at

the rate of 9% per annum for the first year and thereafter at the rate of

15% per annum till deposit of the amount of compensation.

It is submitted by the petitioner that respondent No.3-

1-J-WP-5544-17 2/7

Acquiring Body made a proposal for construction of percolation tank

(Pazar talao), Warjai and the petitioner's lands from Survey No.9/1

admeasuring 3H 90R and from Survey No.10 admeasuring 1H 55 R

were ought to be acquired. Notice under Section 4(1) of the said Act

was issued on 08/12/1991. Subsequent notice under Section 9(1) and

(2) of the said Act in respect of acquisition of the said lands was issued.

It is submitted that possession of the lands of the petitioner was taken

on 15/01/1992. The respondent No.3 granted compensation of

Rs.50,497/- for field Survey No.9/1 admeasuring 3H 90R and

Rs.20,069/- for field Survey No.10/1 admeasuring 1H 55R. The copy

of the award passed by respondent No.3 is annexed to the petition.

The dispute of apportionment under Section 30 of the said Act was

referred to the Civil Judge (Senior Division) Darwha for deciding the

title in respect of Survey No.9/1. The Old Land Acquisition Case

No.275/1997 was renumbered as Land Acquisition Case

No.2122/2004 filed before the Civil Judge (S.D.) Darwha. The said

case was decided in favour of the petitioner in respect of title of filed

Survey No.9/1 which was acquired in Land Acquisition

No.08/47/1988-89 vide order dated 10/09/2014. It is the further

contention of the petitioner that one Narmadabai Vasantrao Lohakare

raised an objection on the title of the petitioner in respect of Survey

No.10. In that dispute before the Civil Judge (SD) Darwha 1-J-WP-5544-17 3/7

Narmadabai was defendant No.3. She settled the said dispute by filing

pursis of settlement dated 23/10/2008. It is further contention of the

petitioner that possession of both the lands were taken by the

respondents in the year 1992. On 15/01/1992 the possession

certificate was also issued by the Land Acquisition Officer. As dispute

of title between the petitioner and Narayanrao Thokal was in respect of

field Survey No.9/1 admeasuring 3H 90R and the respondents failed to

give compensation in respect of field Survey No.10/1 to the petitioner

in respect of which there was no dispute of title, the petitioner moved

an application with the respondent No.3 for getting compensation in

respect of field Survey No.10/1. He also made a representation dated

23/12/2015 to the respondent No.3 to determine compensation of the

land acquired. The petitioner also moved an application on

15/04/2017 to the Deputy Registrar and Public Information Officer

Bombay High Court, Nagpur under Right to Information Act, 2005 for

seeking information as to whether any dispute is pending in respect of

the fields of the petitioner which were acquired. He also moved an

application on 07/02/2017 to respondent No.3 under the Act of 2005

seeking information in respect of the amount deposited by the

respondents which was replied by the respondent No.3.

1-J-WP-5544-17 4/7

2. The respondent No.3 took possession of the acquired land

of the petitioner bearing Survey Nos.9/1 and 10 on 15/01/1992 and

the award was passed on 21/03/1995. It is submitted that prior to

passing of award, possession of lands of the petitioner was taken.

However, the respondents have not paid interest in view of Section 34

of the said Act to the petitioner and therefore the petitioner has

claimed the interest on the amount of compensation.

3. State Government has raised strong objection about the

same and submitted that the petitioner is not entitled for interest as

per Section 34 of the said Act and hence the writ petition deserves to

be dismissed.

4. Heard the learned counsel for the petitioner and the learned

Assistant Government Pleader for the State. The learned counsel for

the petitioner submitted that in view of Section 34 of the said Act the

petitioner is entitled for interest at the rate of 9% per annum for the

first year after taking possession of land and thereafter at the rate of

15% per annum till deposit of the amount of compensation. He

submitted that respondent No.2-Executive Engineer, Zilla Parishad,

Irrigation Department, Yavatmal moved a proposal dated 31/08/1988.

Accordingly land bearing Survey Nos.9/1 and 10/1 were acquired for 1-J-WP-5544-17 5/7

construction of percolation tank (Pazar Talao), Warjai. Notification

under Section 4 of the said Act was issued on 08/12/1991. Thereafter

notice under Section 9 of the said Act was issued and possession of the

acquired land bearing Survey Nos.9/1 admeasuring 3H 90R and 10/1

admeasuring 1H 55 R was taken on 15/01/1992. Award was passed

on 21/03/1995. Compensation of Rs.50,497/- was awarded for

Survey No.9/1 and Rs.20,069/- was awarded for Survey No.10/1.

Thus total compensation of Rs.70,566/- was awarded for the acquired

lands. Civil Court decided the dispute in respect of Survey No.9/1 on

10/09/2014. Compensation amount was deposited on 09/03/2020.

The petitioner is entitled for interest 9% per annum for the first year

and thereafter 15% per annum for rest of the years till deposit of the

awarded amount. He also referred to Section 34 of the said Act which

reads thus :

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 takin 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 1-J-WP-5544-17 6/7

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.

5. Learned counsel for the petitioner also placed reliance on

the decisions in Indore Development Authority vs. Manoharlal and ors.

(2020) 8 SCC 129 and Vasant Balkrishna Wale vs. Vithal Mahadeo

Deshmukh and ors. 2005(4) Mh.L.J. 957 wherein this Court has held

that statutory provision comprised under Section 34 of the Land

Acquisition Act, 1894 makes it clear that it is the duty of the Collector

to deposit the interest amount along with the amount awarded under

Section 11 when the matter is referred for adjudication in terms of the

provisions of Section 30 of the said Act. In case such amount is

deposited within a period of one year from the date of taking over the

possession of the land, the interest rate would be 9% per annum. It is

further held by this Court that the Collector's duty to pay interest on

the awarded amount relates to statutory obligation of the public

authority and failure to perform such obligation and consequently the

right of the petitioner in that regard being affected. Despite

availability of alternate remedy of appeal, the Court has held the writ

petition to be maintainable.

6. On the basis of aforesaid judgment and the provisions of 1-J-WP-5544-17 7/7

Section 34 of the said Act, the petitioner has established his right of

entitlement of interest on the amount of compensation at the rate of

9% per annum for the first year and at the rate of 15% per annum

thereafter till depositing the amount that is till 04/03/2020. Hence

we proceed to pass the following order :

(a) The petitioner is entitled for interest at the rate of 9% per annum from 15/01/1992 to 14/01/1993.

(b) The petitioner is entitled for interest at the rate of 15% per annum from 15/01/1993 to 04/03/2020.

(c) The petitioner is also entitled for accrued interest on the aforesaid interest amount as per interest rate on fixed deposit in Nationalized Bank.

(d) The amount towards interest as per calculations shall be deposited within period of four weeks from the date of receipt of copy of this judgment.

Rule is made absolute in aforesaid terms with no order as to costs.

(Urmila Joshi-Phalke, J.) (A. S. Chandurkar, J.)

Asmita Digitally signed byASMITA ADWAIT BHANDAKKAR Signing Date:26.07.2022 18:41:46