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The Nilgiris District ... vs Ahmed Sait
2022 Latest Caselaw 623 Mad

Citation : 2022 Latest Caselaw 623 Mad
Judgement Date : 11 January, 2022

Madras High Court
The Nilgiris District ... vs Ahmed Sait on 11 January, 2022
                                                                   C.R.P.(NPD).No.860 of 2011

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                               DATED: 11.01.2022

                                                    CORAM:

                                  THE HONOURABLE MS.JUSTICE V.M.VELUMANI

                                            C.R.P.(NPD)No.860 of 2011
                                            and M.P.Nos.1 & 2 of 2011

                     The Nilgiris District Co-Operative Milk
                            Producers Union,
                     Rep. By its General Manager,
                     Udhagamandalam.
                     (Impleaded as per order in E.A.No.60/09
                     dated 07.12.2009)                                           ..
                     Petitioner
                                                         Vs.

                     Cassim sait (Since deceased)
                     1.Ahmed Sait
                     Ali Sait (Since deceased)
                     2.Zulaika Alias Sherein
                     3.Hanifa Zaveed alias Yasmin
                     4.Sarah Oomer @ Shamima
                     5.Amina Faisel Patel @ Parveen
                     6.Zainab Gaya @ Nasreen
                     7.Tahseen Zaffar
                     8.Abdul Rahaman Cassim Said
                     9.Rashida
                     10.Fakeer Mohammed @ Junaid
                     11.Humairae Ayub
                     12.The Land Acquisition Officer
                           and Sub-Collector,


                     1/17

https://www.mhc.tn.gov.in/judis
                                                                           C.R.P.(NPD).No.860 of 2011

                        Coonoor.                                                   .. Respondents
                     (respondents 9 to 11 - LRs of Ali Sait
                     impleaded as per order in
                     E.A.No.17/2009 dated 08.06.2009)


                     Prayer: Civil Revision Petition filed under Article 227 of the Constitution

                     of India, against the order and decree dated 08.02.2011 made in

                     E.P.R.No.17 of 2008 in L.A.O.P.No.13 of 1989 on the file of the District

                     Court, the Nilgiris, Ootacmund.


                                        For Petitioner    : Mr.G.Muniratnam

                                        For Respondents : No appearance (For R1, 8 & 10)

                                                           No appearance (For R2 to 7, 9 & 11)

                                                           Mr.D.Gopal (For R12)
                                                           Government Advocate (CS)


                                                           ORDER

(The matter is heard through 'video conferencing/hybrid mode')

This Civil Revision Petition is filed against the order and decree

dated 08.02.2011 made in E.P.R.No.17 of 2008 in L.A.O.P.No.13 of

1989 on the file of the District Court, the Nilgiris, Ootacmund.

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

2.The petitioner is 2nd respondent in E.P.R.No.17 of 2008 on the

file of the District Court, the Nilgiris, Ootacmund, filed by the

respondents 1 to 11 herein, along with the deceased Cassim Sait. The 12 th

respondent is Land Acquisition Officer. At the request of the petitioner,

the 12th respondent, after following the procedure, acquired 11.32 acres

for the purpose of putting up newly proposed Diary Complex consisting

of Milk Reception and processing wing, milk by-products wing, including

cheese plant, cold storage, dairy stores and cattle feed stores, boiler room,

etc. The 12th respondent passed an award dated 26.08.1981, fixing the

value of the land at Rs.50,000/- per acre and fixed Rs.150/- for trees

standing in Survey No.1106/4a3 and Rs.1552.50/- for crops standing in

the land acquired, together with interest at the rate of 4% from the date of

possession, till the date of deposit. The 12th respondent also awarded 15%

solatium for the amount fixed. The petitioner calculated the amounts

payable as per the award and deposited a sum of Rs.6,69,599.70/- on

26.08.1981. The respondents 1 to 11/the land owners withdrew the

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

amount deposited, on 29.08.1981. The land owners filed O.P.No.38 of

1981 before the Sub Court, Uthagamandalam, for enhancement of

compensation. The learned Sub Judge fixed the value of the land at

Rs.5,00,000/- per acre, Rs.1702.50/- for crops and trees, 15% for

solatium together with interest at the rate of 4% from the date of

possession i.e., 05.01.1981 to till the date of award i.e., 26.08.1981. The

12th respondent filed First Appeal in A.S.No.388 of 1984 before this

Court. This Court, in C.M.P.No.7917 of 1984 in A.S.No.388 of 1984,

granted stay on condition to deposit entire enhanced amount. Challenging

the said order made in C.M.P.No.7917 of 1984, the 12th respondent filed

L.P.A.No.71 of 1984. The Division Bench of this Court, by order dated

17.09.1984 in C.M.P.No.12781 of 1984 in L.P.A.No.71 of 1984, directed

the petitioner to deposit Rs.15,00,000/-. As per the said order, the

petitioner deposited a sum of Rs.15,00,000/- on 18.10.1984. The

respondents 1 to 11/land owners withdrew the said amount. Again, this

Court, by the order dated 19.12.1985, directed the petitioner to deposit

further sum of Rs.15,00,000/-. Aggrieved by the said order dated

19.12.1985, S.L.P.No.3797 of 1986 was filed by the petitioner and the

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

same was dismissed. Subsequent to dismissal of S.L.P., the petitioner

deposited another sum of Rs.15,00,000/- on 15.04.1986. The respondents

1 to 11/land owners withdrew the said amount.

3.This Court, by the judgment and decree dated 11.08.1988,

allowed the First Appeal in A.S.No.388 of 1984, setting aside the award

of the learned Sub Judge in O.P.No.38 of 1981 dated 26.09.1983 and

remanded back the O.P. to the learned District Judge and the said

O.P.No.38 of 1981 was renumbered as L.A.O.P.No.13 of 1989.

Aggrieved by the judgment in the First Appeal, the respondents 1 to

11/land owners filed S.L.P.No.10133/1988 and the same was dismissed

on 30.09.1988, directing the learned District Judge to dispose the

L.A.O.P.No.13 of 1989 within a period of four months from the date of

copy of that order. The learned District Judge, by the order dated

09.05.1996, fixed the land value at Rs.2,40,000/- per acre together with

interest at 12% for the value fixed and granted 30% solatium and

confirmed the value fixed for trees and crops. Aggrieved by the said order,

the 12th respondent filed First Appeal in A.S.No.237 of 1997 and the same

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

was dismissed on 11.08.2006. The respondents 1 to 11 filed E.P.R.No.17

of 2008 in L.A.O.P.No.13 of 1989. Pending E.P.R, the petitioner

deposited further sum of Rs.9,36,286.40/- on 06.05.2010 and the same is

pending in the deposit to the credit of E.P. The learned District Judge

directed the petitioner to deposit Rs.25,26,996.30/- on or before

08.03.2011.

4.Challenging the said order dated 08.02.2011 made in

E.P.R.No.17 of 2008 in L.A.O.P.No.13 of 1989, the present Civil

Revision Petition is filed.

5.The learned counsel appearing for the petitioner reiterated the

above averments and contended that the learned Judge failed to consider

that the petitioner deposited Rs.36,69,599.70/- and the said amount was

already withdrawn by the land owners in the year 1986 itself. The order

of the learned District Judge made in L.A.O.P.No.13 of 1989 is passed

only on 09.05.1996, after 10 years of withdrawal of entire amount

deposited by the petitioner. The learned District Judge, in L.A.O.P.,

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

ordered 12% interest only on the land value fixed and no interest was

ordered on solatium. The learned Judge, in the E.P., calculated interest on

solatium also and directed the petitioner to deposit the said amount. The

compensation amount has been deposited by the petitioner to the tune of

Rs.36,66,599.70/- and the same was withdrawn by the land owners on

11.05.1981, 28.08.1981, 17.10.1984 and 15.04.1986. The learned Judge

without taking note of the said fact, committed an error in calculating the

interest for compensation and solatium, as if the petitioner has deposited

the award amount subsequent to the order dated 09.05.1996 in

L.A.O.P.No.13 of 1989. The learned Judge has committed an error in

calculating interest at the rate of 12% for the entire period from

11.05.1981 to till the date of realization. The petitioner had already

deposited the compensation amount and the entire amount was

withdrawn by the land owners as early as in the year 1986 itself. The

petitioner deposited the amount without waiting for the order passed in

L.A.O.P.No.13 of 1989. The learned Judge ought to have held that the

land owners have already withdrawn the entire amount with interest and

hence, they are not entitled to claim anything in the E.P.R.No.17 of 2008.

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

Pending E.P., the petitioner has also made erroneous calculation and

deposited further sum of Rs.9,36,286/- over and above the amount of

Rs.36,69,599.70/- on 20.04.2010. After remand, the learned Judge

passed the order in L.A.O.P.No.13 of 1989 only on 09.05.1996. Before

the said order, the petitioner deposited more than the amount awarded.

The land owners are entitled to interest at the rate of 12% only on the

land value, if entire amount is not deposited. The learned Judge, without

considering the fact that entire amount was deposited as early as in the

year 1986 itself, committed an error in awarding interest on solatium,

cost for trees and crops, etc. The judgments relied on by the learned

Judge are totally different from the facts and circumstances of the present

case. The learned counsel appearing for the petitioner contended that the

petitioner is liable to pay interest only on Rs.1,90,000/-, after deducting

Rs.50,000/- fixed by the Land Acquisition Officer and not on

Rs.2,40,000/-. The learned counsel for the petitioner relied on para nos.27

and 31 of the judgment of the Hon'ble Apex Court reported in (2006) 8

SCC 457 [Gurpreet Singh Vs. Union of India], which reads as follows:

“27.As an illustration, we can take the following

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

situation. Suppose, a decree is passed for a sum of Rs.5,000/- by the trial court along with interest and costs and the judgment debtor deposits the same and gives notice to the decree holder either by approaching the executing court under Order XXI Rule 2 of the Code or by making the deposit in the execution taken out by the decree-holder under Order XXI Rule 1 of the Code. The decree holder is not satisfied with the decree of the trial court. He goes up in appeal and the appellate court enhances the decree amount to Rs.10,000/- with interest and costs. The rule in terms of Order XXI Rule 1, as it now stands, in the background of Order XXIV would clearly be, that the further obligation of the judgment debtor is only to deposit the additional amount of Rs. 5,000/- decreed by the appellate court with interest thereon from the date the interest is held due and the costs of the appeal. The decree holder would not be entitled to say that he can get further interest even on the sum of Rs.5,000/- decreed by the trial court and deposited by the judgment debtor even before the enhancement of the amount by the appellate court or that he can re-open the transaction and make a re-appropriation of interest first on Rs.10,000/-, costs and then the principal and claim interest on the whole of the balance sum again. Certainly, at both stages, if there is short-fall in deposit, the decree holder may be entitled to apply the deposit first towards interest, then towards costs and the balance towards the principal. But that is different from saying that in spite of his deposit of the amounts decreed by the trial court, the judgment debtor would still be liable for interest on the whole of the principal amount in case the

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

appellate court enhances the same and awards interest on the enhanced amount. This position regarding execution of money decrees has now become clear in the light of the amendments to Order XXI Rule 1 by Act 104 of 1976. The argument that what is awarded by the appellate court is the amount that should have been awarded by the trial court and so looked at, until the entire principal is paid, the decree holder would be entitled to interest on the amount awarded by the appellate court and therefore he can seek to make a re-appropriation by first crediting the amount deposited by the judgment debtor pursuant to the decree of the trial court towards the cost in both the courts, towards the interest due on the entire amount and only thereafter towards the principal, is not justified on the scheme of Order XXI Rule 1 understood in the context of Order XXIV Rules 1 to 4 of the Code. The principle appears to be that if a part of the principal has been paid along with interest due thereon, as on the date of issuance of notice of deposit, interest on that part of the principal sum will cease to run thereafter. In other words, there is no obligation on the judgment debtor to pay interest on that part of the principal which he has already paid or deposited.

.................

31.Under Section 54 of the Act, a person, still not satisfied with the decree of enhancement in his favour on the reference under Section 18 of the Act, has a right to file an appeal to the High Court and from the decision of the High Court in such an appeal, an appeal to the Supreme Court. If one were to go by the definition of 'Court' occurring in Section

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

3(d) of the Act, Section 28 providing for payment of interest on excess compensation may not apply to an appeal under Section 54 of the Act on the excess, if any awarded by the High Court or in subsequent appeal by the Supreme Court. But when in an appeal under Section 54 of the Act, the appellate court further enhances the compensation, it awards the compensation that the reference court ought to have awarded and so understood, Section 28 of the Act may be applied at the appellate stage. If the expression 'Court' used in Section 28 of the Act is understood in the generic sense, (on the basis that the context otherwise requires it), the result would be the same. The other provision relevant to be noted is Section 53 of the Act which makes the Code of Civil Procedure applicable to all proceedings before the Court under the Act save in so far as the provisions of the Code are found to be inconsistent with anything contained in the Act. Section 54 also does not keep out the Code, but makes the appeal under it subject to the provisions of the Code

applicable to appeals from original decrees. ”

The learned counsel appearing for the petitioner further contended

that the petitioner is entitled to counter interest on the amounts already

deposited pending appeal. The petitioner, due to erroneous calculation,

has already deposited excess amount of Rs.6,26,918.37/-. The learned

counsel for the petitioner filed memo of calculation and submitted that the

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

order of the learned District Judge dated 08.02.2011 made in E.P.R.No.17

of 2008 in L.A.O.P.No.13 of 1989 is erroneous and prayed to set aside

the said order.

6.Though the respondents 1, 8 and 10 entered appearance, on

06.12.2021, there was no representation for them. Today also none

appeared on behalf of them.

7.Though notice has been served on the respondents 2 to 7, 9 and

11 and their names are printed in the cause list, there is no representation

for them either in person or through counsel.

8.Heard the learned counsel appearing for the petitioner as well as

Mr.D.Gopal, learned Government Advocate (CS) appearing for the 12 th

respondent and perused the entire materials available on record.

9.In the present Civil Revision Petition, the only issue to be decided

is whether the calculation made by the learned Judge in the E.P. is correct

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

or the amounts payable by the petitioner is only as per the calculation

filed by the petitioner.

10.From the materials on record, it is seen the cost of land acquired

was finally determined by the order dated 09.05.1996 by the learned

District Judge in L.A.O.P.No.13 of 1989. The said order has become final

as the appeal filed by the 12th respondent was dismissed. The operative

portion of the said order reads as follows:

“16/ ,Wjpahf 21 Kjy; 23 tiua[s;s nfhhpf;ifahsh;fSf;F ghj;jpag;gl;l murhy; ifafg;gLj;jg;gl;l epyj;jpw;F Vf;fh; xd;Wf;F U:/2.40.000 tpiy eph;zak; bra;J nkw;go bjhiff;F 30 rjtPjk; Mwjy; bjhifa[k; kw;Wk; eph;zak; bra;ag;gl;l bjhiff;F epyj;ij RthjPdk; vLj;J njjpahf 5/1/1981 Kjy; 12# tl;oa[k; ifafg;gLj;jg;gl;l epyj;jpypUe;J ku';fSf;F U:/150 tPjk;

,Hg;gPlhft[k; epy';fspy; ,Ue;j gaph;fspd; kjpg;g[fF ; U:/1552/50 ,Hg;gPlhft[k; tH';fg;gl ntz;Lbkd;Wk; jPh;tk; tH';fg;gLfpwJ/ ,t;tHf;fpd; NH;epiyapy; bryt[j;bjhif tH';fg;gltpy;iy/ muR tH';Fiu"hpd; Cjpak; U:/500 vd eph;zak; bra;ag;gLfpwJ/”

11.From the said order, it is seen that the learned District Judge

granted 12% interest only for the land value fixed. No interest was

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

granted on solatium and value of trees and crops. The learned District

Judge, in the E.P., calculated interest on solatium. The same is liable to be

set aside and is hereby set aside.

12.Originally, the 12th respondent/Land Acquisition Officer passed

an award on 26.08.1981, fixing the value of the land at Rs.50,000/- per

acre together with 4% interest and 15% solatium and Rs.1702.50/- for

crops and trees standing in the land. The petitioner calculated the

amounts as per the award dated 26.08.1981 and deposited a sum of

Rs.6,69,599.70/- and the same was withdrawn by the land owners on

29.08.1981. As per the final order dated 09.05.1996 made in

L.A.O.P.No.13 of 1989, determining the value of the land, 12% interest

was awarded for the period from the date of taking possession i.e.,

05.01.1981, for the value of the land fixed. The petitioner has taken

possession of the land on 05.01.1981. The contention of the learned

counsel appearing for the petitioner is that the petitioner has deposited the

amount calculated at Rs.50,000/- per acre together with interest at the

rate of 4% and solatium 15% and Rs.1702.50/- for trees and crops on

26.08.1981. Therefore, the petitioner has to pay Rs.1,90,000/- for 11.32

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

acres and 12% interest only on Rs.1,90,000/- per acre for the land

acquired. The said contention has considerable force and is acceptable, as

per the judgment of the Hon'ble Apex Court reported in (2006) 8 SCC

457 (cited supra). The petitioner is liable to pay compensation only at the

rate of Rs.1,90,000/- for 11.32 acres, after deducting Rs.50,000/- from

Rs.2,40,000/- being the amount already fixed by the Land Acquisition

Officer. The petitioner is liable to pay interest at the rate of 12% per

annum on the sum of Rs.21,50,800/- (Rs.1,90,000/- x 11.32), from

05.01.1981, the date of possession, till 2010, when the petitioner lastly

deposited Rs.9,36,286/- in E.P.No.17 of 2008, to the credit of

L.A.O.P.No.13 of 1989. The learned Judge has erroneously calculated

interest on Rs.2,40,000/-, solatium and calculated value of trees and

crops, contrary to the ratio laid down by the Hon'ble Apex Court in the

judgment reported in 2006 (8) SCC 457 (cited supra). The learned Judge

has also not properly considered the amount deposited by the petitioner

and amount withdrawn by the land owners.

13.In view of the above error committed by the learned Judge, the

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

impugned order dated 08.02.2011 made in E.P.R.No.17 of 2008 in

L.A.O.P.No.13 of 1989 is liable to be set aside and is hereby set aside.

E.P.R.No.17 of 2008 in L.A.O.P.No.13 of 1989 is remitted to E.P. Court

for fresh calculation as per the judgment of the Hon'ble Apex Court,

referred to above. It is open to the petitioner and respondents to file their

respective memos of calculation for consideration of the learned Judge.

With the above direction, the Civil Revision Petition is allowed. No

costs. Consequently, connected Miscellaneous Petitions are closed.

11.01.2022 Index :: Yes/No gsa

To

The District Judge, The Nilgiris, Ootacmund.

https://www.mhc.tn.gov.in/judis C.R.P.(NPD).No.860 of 2011

V.M.VELUMANI, J.

gsa

C.R.P.(NPD)No.860 of 2011

11.01.2022

https://www.mhc.tn.gov.in/judis

 
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