Case Note & Summary
The dispute arose from the forcible acquisition of land by the Agra Development Authority without following the proper procedure under the Land Acquisition Act. The appellants, landowners of Khasra No.111A and 112B, filed a civil suit seeking an injunction against the respondent's actions. The trial court granted an injunction and the respondent undertook to pay compensation, which was not deposited within the agreed timeframe. The respondent later issued a cheque, which the appellants refused to accept as it did not comply with the original undertaking. The High Court dismissed the appellants' writ petition but allowed them to withdraw the deposited amount. The Supreme Court found the High Court's dismissal of the interest claim incorrect, noting that the appellants were deprived of the beneficial use of their money due to the delay. The court awarded simple interest at 18% per annum from the date of possession until actual payment and directed the Agra Development Authority to pay the interest promptly. The appeal was disposed of with no costs.
Headnote
A) Land Acquisition - Compensation - Right to Interest - Land Acquisition Act, 1894, Section Not mentioned - The appellants were entitled to interest on the compensation amount due to the delay in payment by the Agra Development Authority, which failed to deposit the amount within the stipulated time. The court set aside the High Court's order and awarded simple interest at the rate of 18% per annum from the date of possession until actual payment (Paras 1-2).
Issue of Consideration
Whether the appellants are entitled to interest on the compensation amount due to delayed payment by the Agra Development Authority.
Final Decision
The Supreme Court set aside the High Court's order, awarded simple interest at 18% per annum on the compensation amount from the date of possession until actual payment, and directed the Agra Development Authority to pay the interest promptly.
Law Points
- Land Acquisition
- Compensation
- Interest on Delayed Payment
- Injunction
- Civil Procedure
