Case Note & Summary
The judgment concerns a batch of writ petitions filed by landowners whose lands were acquired by the State of Maharashtra for the Nanded-Waghala Municipal Corporation. The common issue was the delay in payment of compensation after possession of the lands was taken. The petitioners' lands were acquired under the Land Acquisition Act, 1894, and possession was taken on 30.03.2012. However, the compensation was paid only on 31.03.2016, after a delay of about four years. The petitioners sought interest under Section 28 of the Act for the period of delay. The respondents argued that the delay was due to administrative reasons and that the petitioners had already received compensation. The court, after hearing the parties, held that the landowners are entitled to interest under Section 28 of the Land Acquisition Act, 1894 for the period from the date of possession to the date of payment of compensation. The court directed the respondents to pay interest at the rate of 9% per annum for the first year and 15% per annum thereafter, as per the provisions of the Act. The writ petitions were allowed with no order as to costs.
Headnote
A) Land Acquisition - Compensation - Interest under Section 28 - Delay in Payment - Petitioners' lands were acquired for a public purpose and possession was taken on 30.03.2012, but compensation was paid belatedly on 31.03.2016 - The court held that the landowners are entitled to interest under Section 28 of the Land Acquisition Act, 1894 for the period from the date of possession to the date of payment of compensation - The court directed the respondents to pay interest at the rate of 9% per annum for the first year and 15% per annum thereafter, as per the Act (Paras 1-10).
Issue of Consideration
Whether the petitioners are entitled to interest under Section 28 of the Land Acquisition Act, 1894 for the period of delay in payment of compensation after possession of their lands was taken.
Final Decision
The court allowed the writ petitions and directed the respondents to pay interest under Section 28 of the Land Acquisition Act, 1894 at the rate of 9% per annum for the first year and 15% per annum thereafter, from the date of possession (30.03.2012) to the date of payment (31.03.2016). No order as to costs.
Law Points
- Land Acquisition
- Compensation
- Interest
- Section 28 Land Acquisition Act
- 1894
- Delay in Payment
- Possession
- Enhanced Compensation
Case Details
2023 LawText (BOM) (01) 20
Writ Petition No.13332 of 2022, Writ Petition No.13336 of 2022, Writ Petition No.24 of 2023, Writ Petition No.28 of 2023, Writ Petition No.57 of 2023
Mr. P.B. Rakhunde (for petitioners), Mrs. G.L. Deshpande, Mr. S.N. Morampalle, Mr. R.B. Bagul, Mr. S.S. Dande (for respondents)
Chandaba w/o. Gangaram Pauyed, Sau. Pushpadevi Badrinarayan Dhoot, Tukaram Ambadas Panchal, Sayad Nur Baba Haji Amin (through LRs), Sau. Shanta Premkumarji
The State of Maharashtra, The Special Land Acquisition Officer, P.T. & MIW No.2 Nanded, The Commissioner, Nanded-Waghala Municipal Corporation
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Nature of Litigation
Writ petitions seeking interest under Section 28 of the Land Acquisition Act, 1894 for delay in payment of compensation after possession of lands was taken.
Remedy Sought
Petitioners sought interest on compensation for the period from the date of possession (30.03.2012) to the date of payment (31.03.2016).
Filing Reason
Delay in payment of compensation after possession of lands was taken by the respondents.
Issues
Whether the petitioners are entitled to interest under Section 28 of the Land Acquisition Act, 1894 for the period of delay in payment of compensation after possession of their lands was taken.
Submissions/Arguments
Petitioners argued that possession was taken on 30.03.2012 but compensation was paid only on 31.03.2016, and they are entitled to interest under Section 28 of the Land Acquisition Act, 1894.
Respondents contended that the delay was due to administrative reasons and that the petitioners had already received compensation.
Ratio Decidendi
Under Section 28 of the Land Acquisition Act, 1894, a landowner is entitled to interest on the compensation amount for the period between the date of possession and the date of payment of compensation, if there is a delay in payment.
Judgment Excerpts
Rule. Rule made returnable forthwith.
The court held that the petitioners are entitled to interest under Section 28 of the Land Acquisition Act, 1894 for the period from the date of possession to the date of payment of compensation.
Procedural History
The petitioners filed writ petitions before the Bombay High Court, Aurangabad Bench, challenging the delay in payment of compensation after possession of their lands was taken. The court reserved judgment on 09.01.2023 and pronounced it on 02.02.2023.
Acts & Sections
- Land Acquisition Act, 1894: Section 28
