Tripura High Court
Smt. Arati Nath vs Land Acquisition Collector (Adm on 3 April, 2025
Page 1 of 6
HIGH COURT OF TRIPURA
AGARTALA
CRP No.13 of 2025
Smt. Arati Nath, W/o Shri Nirod Baran Debnath, A.A. Road, Kalyani, P.O.
Agartala College: 799004, Agartala
.........Petitioner(s);
Versus
1. Land Acquisition Collector (ADM, Kailashahar) (Office of the D.M. &
Collector, Kailashahar), Unakoti Tripura
2. The Director, Secondary Education, Government of Tripura (Requiring
Deptt.), Office Lane, Agartala-799001
.........Respondent(s).
For Petitioner(s) : Mr. Sudipta Sekhar Debnath, Advocate,
Mr. Debarun Singh Kunwar, Advocate.
For Respondent(s) : Mr. Karnajit De, Addl. G.A.
HON'BLE THE CHIEF JUSTICE MR. APARESH KUMAR SINGH
Order
03/04/2025
Heard Mr. Sudipta Sekhar Debnath, learned counsel for the
petitioner and Mr. Karnajit De, learned Additional Government Advocate for
the respondents-State.
2. Brief undisputed facts as are necessary to decide the issue in
controversy and are borne out from the pleadings on record are as under:
A compensation of Rs.2,41,878/- was paid to the petitioner in lieu
of acquisition of her land measuring 0.73 acre pertaining to RS Plot
No.998/1594 of Khatian No.481 of mouja Kamrangabari under Gournagar T.K.
for construction of Kendriya Vidyalaya, Kailashahar under notification dated
10.05.2007. The awarded amount was paid to the petitioner on 17.04.2008. On
reference the Land Acquisition Judge enhanced the award to Rs.8,35,000/-
(Rs.8,24,500/- for land + Rs.10,500/- for trees) vide judgment dated
13.04.2011. The matter was taken before this Court in an appeal by the
respondent-department and a cross appeal was also filed. This Court reduced
the compensation from Rs.6.00 lakh per kani to Rs.2.49 lakh per kani vide
judgment dated 12.04.2016 [Annexure-R/4]. The operative part of the judgment
reads as under:
"18. The LA Appeal filed by the appellant is, accordingly, partly allowed. Cross
objection stands dismissed. The referring-claimant i.e. the cross objector is entitled to get
compensation towards price of land @ Rs.2,49,000/- (Two Lakh Forty Nine Thousand)
per kani for the acquired 0.73 acres of land. She will be further entitled to get solatium
and interest etc., as prescribed by law. The price of standing trees determined by the
learned LA Judge is maintained. The judgment and award passed by learned LA Judge is
interfered to the extent as indicated herein-above and the appeal accordingly stands
disposed of."
The enhanced compensation as allowed by this Court in LA appeal remained
unpaid along with interest. Therefore, petitioner had to approach the LA
Collector, Unakoti on 04.03.2022. Correspondence ensued between the LA
Collector and the Education Department. The LA Collector prepared the award
for additional amount of Rs.6,17,158/- which consists of the following amount:
1. Value of the land = Rs.4,54,425/-
2. 30% Solatium = Rs.1,36,328/-
3. 12% interest on land value from the date of Notification till preparation of the award by
the Ld. LA Collector = Rs.15,905/-
4. Value of Trees = Rs.10,500/=
Total amount = Rs.6,17,158/-
3. Since earlier Rs.2,41,878/- was already paid and the same was
deducted, the balance amount of Rs.3,75,280/- was requisitioned from the
Education Department. Meanwhile petitioner filed an execution case being
Civil Misc. (Execution) 09 of 2023 before the Additional District Judge (LA
Judge), Kailashahar on 06.10.2023. By order dated 30.07.2024, the respondent
was directed to pay balance or additional awarded amount of Rs.1,97,953/- to
the petitioner within a period of one month. That sum has been paid on
12.09.2024 by the respondent.
4. In the aforesaid factual background, the respondents have
contended that petitioner is not entitled to any further interest. It is not in
dispute that the interest has been calculated over the enhanced amount till the
date of the judgment dated 12.04.2016.
5. Law casts a statutory obligation upon the LA Collector to pay the
enhanced compensation along with interest till it is paid. The ratio laid down by
the Constitution Bench of the Apex Court in the case of Gurpreet Singh vrs.
Union of India reported in (2006) 8 SCC 457 is quoted hereinbelow:
"29. Let us now consider the scheme of the Land Acquisition Act,
1894 as amended by the Land Acquisition (Amendment) Act 68 of 1984.
After the publication of the preliminary notification under Section 4 of the Act
and after hearing of objections, a declaration has to be made under Section 6
of the Act. The Collector is then to take the order for acquisition from the
appropriate Government or the officer authorised in that behalf by the
Government. After completing the formalities contemplated and the enquiry
made in terms of Section 11 of the Act, the Collector has to make an award
indicating the true area of the land, the compensation which in his opinion
should be allowed for the land and the apportionment of the compensation
among the persons known or believed to be interested in the land. In making
the award, the Collector shall be guided by Sections 23 and 24 dealing with
matters to be considered in determining the compensation and matters to be
excluded in determining the compensation as enjoined by Section 15 of the
Act. Under Section 12 of the Act, the award becomes final as between the
Collector and the persons interested and the Collector is to give notice of his
award to persons interested. On making the award, the Collector may take
possession of the land in terms of Section 16 of the Act. Under Section 31, on
making an award under Section 11, the Collector shall tender payment of the
compensation awarded by him to the persons interested entitled thereto
according to the award, and shall pay it to them unless prevented by the
contingencies referred to in Section 31 itself. Under Section 34 of the Act,
when the amount of compensation awarded 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 cent per annum from the
time of taking possession till it shall have been paid or deposited. But if the
compensation or any part thereof is not paid within a period of one year from
the date on which possession is taken, interest is payable at the rate of fifteen
per cent per annum 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. It is relevant to notice that on
payment of the amounts thus due, the award made by the Collector stands
satisfied.
30. A person interested, who is not satisfied with the amount of
compensation awarded by the Collector is entitled to receive the amount under
protest and could apply to the Collector requiring him to refer the matter to the
court in terms of Section 18 of the Act. The Collector is then to make a
statement to the court and the court is entitled to fix the compensation subject
to Section 25 of the Act which provides that the amount of compensation
awarded by the court shall not be less than the amount awarded by the
Collector under Section 11 of the Act. In fixing the compensation, the court
shall have regard to the matters referred to in Sections 23 and 24 of the Act.
Under Section 26, every award shall be deemed to be a decree within the
meaning of Section 2(2) of the Code of Civil Procedure and every reasoned
award shall be deemed to be a judgment as defined in Section 2(9) of the
Code of Civil Procedure. Under Section 27 of the Act, every award made by
the court shall also contain directions regarding the costs incurred in the
proceedings in court, the costs of the claimant found entitled to enhancement,
normally to be borne by the Collector. Under Section 28 of the Act, the court
which has awarded compensation in excess of the sum which the Collector
did award as compensation, may direct that the Collector shall pay interest on
such excess at the rate of nine per cent per annum from the date on which he
took possession of the land to the date of payment of such excess into court.
The proviso enjoins the court to direct that where such excess or any part
thereof is paid into court after the expiry of a period of one year from the date
on which possession is taken, interest at the rate of fifteen per cent per annum,
shall be payable from the date of expiry of the said period of one year on the
amount of such excess or part thereof which has not been paid into court after
the date of such expiry. Two aspects require to be noted. One is that the
interest is payable only on the excess amount of compensation awarded by the
Reference Court and the second is that interest on the enhanced amount
awarded is payable from the date of taking possession at the rate of 9% per
annum for the first year after taking possession and thereafter at 15% per
annum till the deposit of the excess is made. This clearly indicates that there is
no scope for the reopening of the appropriation already made pursuant to the
award. The other significant factor is that the award should specify the amount
awarded as market value of the land separately and the other amount, if any,
awarded under other heads of Section 23(1).
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 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 insofar 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.
32. In the scheme of the Act, it is seen that the award of
compensation is at different stages. The first stage occurs when the award is
passed. Obviously, the award takes in all the amounts contemplated by
Section 23(1), Section 23(1-A), Section 23(2) and the interest contemplated
by Section 34 of the Act. The whole of that amount is paid or deposited by the
Collector in terms of Section 31 of the Act. At this stage, no shortfall in
deposit is contemplated, since the Collector has to pay or deposit the amount
awarded by him. If a shortfall is pointed out, it may have to be made up at that
stage and the principle of appropriation may apply, though it is difficult to
contemplate a partial deposit at that stage. On the deposit by the Collector
under Section 31 of the Act, the first stage comes to an end subject to the right
of the claimant to notice of the deposit and withdrawal or acceptance of the
amount with or without protest.
33. The second stage occurs on a reference under Section 18 of the
Act. When the Reference Court awards enhanced compensation, it has
necessarily to take note of the enhanced amounts payable under Section 23(1),
Section 23(1-A), Section 23(2) and interest on the enhanced amount as
provided in Section 28 of the Act and costs in terms of Section 27. The
Collector has the duty to deposit these amounts pursuant to the deemed decree
thus passed. This has nothing to do with the earlier deposit made or to be
made under and after the award. If the deposit made, falls short of the
enhancement decreed, there can arise the question of appropriation at that
stage, in relation to the amount enhanced on the reference.
34. The third stage occurs, when in appeal, the High Court
enhances the compensation as indicated already. That enhanced compensation
would also bear interest on the enhanced portion of the compensation, when
Section 28 is applied. The enhanced amount thus calculated will have to be
deposited in addition to the amount awarded by the Reference Court if it had
not already been deposited.
35. The fourth stage may be when the Supreme Court enhances the
compensation and at that stage too, the same rule would apply.
36. Can a claimant or decree-holder who has received the entire
amount awarded by the Reference Court or who had notice of the deposit of
the entire amount so awarded, claim interest on the amount he has already
received merely because the appellate court has enhanced the compensation
and has made payable additional compensation? We have already referred to
Order 21 and Order 24 of the Code to point out that such a blanket reopening
of the transaction is not warranted even in respect of a money decree. Section
28 of the Act indicates that the award of interest is confined to the excess
compensation awarded and it is to be paid from the date of dispossession. This
is in consonance with the position that a fresh reappropriation is not
contemplated or warranted by the scheme of the Act. But if there is any
shortfall at any stage, the claimant or decree-holder can seek to apply the rule
of appropriation in respect of that amount, first towards interest and costs and
then towards the principal, unless the decree otherwise directs.
37. In Sunder v. Union of India [(2001) 7 SCC 211 : 2001 Supp
(3) SCR 176] this Court posed the question, as to what is meant by "the
compensation" awarded. The Court concluded: (SCC p. 230, para 23)
"We make it clear that the compensation awarded would
include not only the total sum arrived at as per sub-section (1)
of Section 23 but the remaining sub-sections thereof as well. It
is thus clear from Section 34 that the expression „awarded
amount‟ would mean the amount of compensation worked out
in accordance with the provisions contained in Section 23,
including all the sub-sections thereof."
38. This shows that there is no distinction made between land
value and solatium on the one hand and the interest awardable on the other,
under Section 23(1-A) of the Act. It is on this sum that the interest under
Section 34 of the Act is awarded and if it were a reference, awarded under
Section 28 of the Act, in addition to costs, if any. Thus, the award by the
Collector and the deemed decree passed on reference contain the components
of compensation and interest in the first, and interest and costs in the second."
6. Therefore, the respondent-LA Collector should have paid the
enhanced compensation after deducting the compensation already paid under
the Award passed by the learned LA Collector along with interest on the
enhanced amount till it is paid in the manner prescribed by the decision in the
case of Gurpreet Singh (supra). The learned Executing Court has, therefore, fell
in error in directing the LA Collector to pay the balance or additional awarded
amount of Rs.1,97,953/- calculated from the date of 18.04.2008, i.e. the date of
payment made by the L.A. Collector till the date of judgment, i.e. 12.04.2016
passed in L.A. Appeal to the decree holder vide order dated 30.07.2024.
7. Upon hearing learned counsel for the parties and after taking note
of these undisputed material facts, this Court is of the view that the impugned
order suffers from errors. Accordingly, it is set aside. The respondent No.1 shall
pay the amount of enhanced compensation as directed by the learned Land
Acquisition Appellate Court vide judgment dated 12.04.2016 along with
interest till the date of payment in the manner laid down by the Apex Court in
the case of Gurpreet Singh (supra).
8. The instant petition is disposed of. Pending application(s), if any,
shall also stand disposed of.
(APARESH KUMAR SINGH), CJ
Pijush/
MUNNA SAHA Digitally signed by MUNNA SAHA
Date: 2025.04.08 11:53:37 +05'30'
