Case Note & Summary
The Petitioners, Hatim Fidaali Rajkotwala and Anr., filed two Writ Petitions under Article 226 of the Constitution of India before the Bombay High Court seeking directions to the Land Acquisition Officer (Respondent No.1) to release compensation awarded under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the 2013 Act) for two properties: Rajkotwala Building and Rukaiya Mansion. The Petitioners owned 25% undivided share in Rajkotwala Building and full ownership of Rukaiya Mansion. The Awards were made on 30th December 2019 in LAQ Nos. 18/2019 and 19/2019. During the pendency of the petitions, the compensation amount was paid to the Petitioners. However, the Petitioners pressed their claim for interest on the delayed payment from the date of the Award until actual payment. The Respondent No.1 argued that the delay was due to the Petitioners' failure to provide necessary documents and that interest was not payable. The Court analyzed Section 80 of the 2013 Act, which mandates payment of interest if compensation is not paid within one year from the date of Award. The Court held that the Petitioners were entitled to interest at 9% per annum for the first year from the date of Award and 15% per annum thereafter, as the compensation was paid after more than one year. The Court rejected the Respondent's argument that the delay was attributable to the Petitioners, noting that the statutory obligation to pay compensation within one year is absolute. The Court directed the Respondent to calculate and pay the interest within eight weeks.
Headnote
A) Land Acquisition - Interest on Delayed Compensation - Section 80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Petitioners sought interest on compensation awarded under the 2013 Act for the period from the date of Award (30.12.2019) till actual payment (during pendency of petitions) - Held that the Petitioners are entitled to interest under Section 80 of the 2013 Act at the rate of 9% per annum for the first year from the date of Award and 15% per annum thereafter, as the compensation was not paid within one year from the date of Award (Paras 1-15).
Issue of Consideration
Whether the Petitioners are entitled to interest on the compensation amount awarded under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, for the period from the date of the Award until the date of actual payment.
Final Decision
The Court allowed the Petitions and directed Respondent No.1 to calculate and pay interest under Section 80 of the 2013 Act at 9% per annum for the first year from the date of Award (30.12.2019) and 15% per annum thereafter until the date of actual payment, within eight weeks.
Law Points
- Interest on delayed compensation
- Land acquisition
- Right to Fair Compensation and Transparency in Land Acquisition
- Rehabilitation and Resettlement Act
- 2013
- Article 226 of the Constitution of India
