1997 JTR(SC) 761
1997 AIR(SC) 2981 ; 1997 AIR(SCW) 3010 ; 1997 AllLJ 1748 ; 1997 30 AllLR 618 ; 1998 1 AWC 63 ; 1997 3 CLT(SC) 47 ; 1997 2 CurCC(SC) 289 ; 1997 5 JT 522 ; 1999 90 RD 369 ; 1997 4 Scale 270 ; 1997 10 SCC 77 ; 1997 3 SCR 1096 ; 1997 KHC 1702 ; 1997 1 KLT(Online) 1063 ; 1997 5 Supreme 233
1997(5) Supreme 233
SUPREME COURT OF INDIA
K. Ramaswamy, S. Saghir Ahmad & G.B. Pattanaik, JJ.
D-Block Ashok Nagar (Sahibabad) Plot Holders Association (Regd.) -Appellant
versus
State of U.P. & Ors. -Respondents
Civil Appeal No. 3571 of 1997
(Arising out of SLP (C) No. 15282 of 1996)
Decided on 29-4-1997
Counsel for the Parties :
For the Appellant : Mr. R.K. Gupta and Mr. Sudhir Kr. Gupta, Advocates.
For the Respondents : Mr. P.K. Jain and Mr. A.K. Goel, Advocates.
Act Referred :LAND ACQUISITION ACT : S.34, S.23(2), S.23
(A) The Land Acquisition Act, 1894, sections 34 and 23(2), along with the 1984 Amendment Act, govern the notification, compensation, solatium, and interest payable in land acquisition proceedings. In this matter, notification under Section 4(1) was published in 1982, and the Special Land Acquisition Officers award under Section 11 became final in 1989, fixing compensation at specified rates. The 1984 Amendment affects entitlement to solatium and interest, and the Uttar Pradesh Awas Evam Vikas Adhiniyam prescribes additional interest terms for delayed possession. The core legal framework requires determining the balance compensation due after offsetting deposits, and interest accruing only post-possession.
(B) Key legal principles include: finality of compensation awards; interest on delayed possession only from the date of actual land delivery; balance payable after adjusting prior deposits; and strict adherence to statutory provisions over local amendments or schedules.
Facts of the case:
Notification under Section 4(1) of the Act was issued in 1982; the Section 11 award was finalized in 1989 fixing compensation at Rs. 50 and Rs. 37.50 per sq. yd., solatium, and interest as amended. The total compensation for 1157.895 acres was determined at over Rs. 52 crore, of which Rs. 42 crore was deposited, leaving a balance of approximately Rs. 3.26 crore payable. Possession was delivered for only 9.2 acres, triggering interest from the date of possession.
Findings of Court:
The Allahabad High Courts judgment was set aside. The Special Land Acquisition Officer must determine the extent of land delivered post-award; for those portions, interest is payable at the award rate from the date of possession until the deposit, to be made within six months of receiving the judgment.
Issues:
Whether members of the appellant-Association are entitled to compensation; whether they are liable for solatium under the amended Act; the rate and applicability of interest under the Act versus local law; and the balance amount payable after prior deposits.
Ratio Decidendi:
Compensation awards under Sections 34 and 23(2) of the Land Acquisition Act, read with the 1984 Amendment, govern finality and recalculation of balances. Interest arises only upon possession, and the officer must compute the extent of possession to determine the exact payable amount.
Result:
The appeal is allowed. The Commissioner must determine the area delivered and deposit the balance amount along with computed interest within six months.
(A) The Land Acquisition Act, 1894, sections 34 and 23(2), along with the 1984 Amendment Act, govern the notification, compensation, solatium, and interest payable in land acquisition proceedings. In this matter, notification under Section 4(1) was published in 1982, and the Special Land Acquisition Officers award under Section 11 became final in 1989, fixing compensation at specified rates. The 1984 Amendment affects entitlement to solatium and interest, and the Uttar Pradesh Awas Evam Vikas Adhiniyam prescribes additional interest terms for delayed possession. The core legal framework requires determining the balance compensation due after offsetting deposits, and interest accruing only post-possession.
(B) Key legal principles include: finality of compensation awards; interest on delayed possession only from the date of actual land delivery; balance payable after adjusting prior deposits; and strict adherence to statutory provisions over local amendments or schedules.
Facts of the case:
Notification under Section 4(1) of the Act was issued in 1982; the Section 11 award was finalized in 1989 fixing compensation at Rs. 50 and Rs. 37.50 per sq. yd., solatium, and interest as amended. The total compensation for 1157.895 acres was determined at over Rs. 52 crore, of which Rs. 42 crore was deposited, leaving a balance of approximately Rs. 3.26 crore payable. Possession was delivered for only 9.2 acres, triggering interest from the date of possession.
Findings of Court:
The Allahabad High Courts judgment was set aside. The Special Land Acquisition Officer must determine the extent of land delivered post-award; for those portions, interest is payable at the award rate from the date of possession until the deposit, to be made within six months of receiving the judgment.
Issues:
Whether members of the appellant-Association are entitled to compensation; whether they are liable for solatium under the amended Act; the rate and applicability of interest under the Act versus local law; and the balance amount payable after prior deposits.
Ratio Decidendi:
Compensation awards under Sections 34 and 23(2) of the Land Acquisition Act, read with the 1984 Amendment, govern finality and recalculation of balances. Interest arises only upon possession, and the officer must compute the extent of possession to determine the exact payable amount.
Result:
The appeal is allowed. The Commissioner must determine the area delivered and deposit the balance amount along with computed interest within six months.
ORDER
Leave granted.
2. This appeal by special leave arises from the judgment of the Allahabad High Court, made on 6.5.1996 in CMWP No. 13550/92.
3. Notification under Section 4(1) of the Land Acquisition Act, 1894 (for short, the Act ) acquiring a large chunk of land was published on June 26, 1982. The Special Land Acquisition Officer had given his award under Section 11 on February 27, 1989 granting compensation @ Rs. 50 and Rs. 37.50 per sq. yd. It also granted solatium and interest under the Act as amended by 1984 Amendment Act. That award was allowed to become final. The question is; whether the members of the appellant-Association are entitled to compensation? In view of the fact that the award has already become final, the stand taken by the Awas Evam Vikas Parishad that they are not liable to pay solatium under the amended Act and the claimants are entitled to get interest at 15% and 6% under the Schedule to the U.P. Awas Evam Vikas Adhiniyam, cannot be countenanced. The question is: what is the balance amount payable? The Land Acquisition Officer has filed his counter-affidavit. Therein, he has stated that for the land admeasuring 1157.895 acres, compensation in a sum of Rs. 52,05,94,187.90 was determined. Out of which Rs. 42,15,00,000/- was deposited and the balance amount was agreed to be deposited as admitted by the letter dated December 10, 1992 of the Commissioner, Shri Rajiv Kumar Singh. The balance amount of Rs. 3,26,22,583.25 is, therefore, payable to them. The liability to pay interest arises only when the Land Acquisition Officer takes possession of the land after the award comes to be made. It is stated on behalf of the Parishad that the possession of an extent of only 9.2 acres of land alone was delivered and the rest of the land has not been delivered. In view of the fact that the liability to pay the interest arises only from the date of taking possession and as it is claimed that the entire extent of the land has not been given possession, the Land Acquisition Officer is directed to determine as to what extent of the area possession of which has been given after the award; for those claimants whose lands have been taken possession, interest shall be calculated as per the award from the date of taking possession till date of deposit and interest shall accordingly be deposited within a period of six months from the date of the receipt of the judgment.
4. The appeal is accordingly allowed. No costs.
Appeal allowed.
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