Case Note & Summary
The petitioner, Dadasaheb Bhausaheb Pathare, owned agricultural land in Wadule village, Parner taluka, Ahmednagar district. His land was acquired by the State of Maharashtra for a minor irrigation project. A notification under Section 4 of the Land Acquisition Act, 1894 was published on 5-1-2001. The Special Land Acquisition Officer passed an award under Section 11 on 31-3-2003, granting compensation. The petitioner, dissatisfied with the compensation, sought a reference under Section 18, which was rejected by the reference court. The petitioner then filed a writ petition before the Bombay High Court (Aurangabad Bench) challenging the rejection and seeking enhanced compensation and interest. The main legal issues were whether the petitioner was entitled to enhanced compensation and whether interest under Section 28 of the Act should be paid from the date of possession (5-1-2001) rather than from the date of the award. The petitioner argued that possession was taken on the date of the Section 4 notification, and compensation was paid much later, entitling him to interest from the date of possession. The respondents contended that the award was passed within a reasonable time and interest was payable only from the date of the award. The court, after hearing both sides, held that the reference court had erred in not granting interest from the date of possession. The court directed the respondents to pay interest under Section 28 at 9% per annum for the first year from the date of possession and 15% per annum thereafter until payment. The court also directed the respondents to consider the petitioner's claim for enhanced compensation under Section 23, but did not grant enhancement in the writ petition, leaving it to the appropriate forum. The petition was partly allowed.
Headnote
A) Land Acquisition - Compensation - Enhancement - Section 23, Land Acquisition Act, 1894 - The petitioner sought enhancement of compensation for acquisition of his land, contending that the compensation awarded was inadequate and that interest under Section 28 was payable from the date of possession. The court held that the reference court had erred in not granting interest from the date of possession and directed recomputation. (Paras 3-6) B) Land Acquisition - Interest - Section 28, Land Acquisition Act, 1894 - The court held that interest under Section 28 is payable from the date of taking possession of the land, not from the date of award, if compensation is not paid or deposited within a reasonable time. The court directed the respondents to pay interest at 9% per annum for the first year and 15% per annum thereafter from the date of possession until payment. (Paras 5-6) C) Land Acquisition - Possession - Date of Possession - The court noted that possession was taken on 5-1-2001, and compensation was not paid until after the award. The court held that the petitioner is entitled to interest from the date of possession under Section 28. (Paras 3-5)
Issue of Consideration
Whether the petitioner is entitled to enhanced compensation and interest under Section 28 of the Land Acquisition Act, 1894 for the period of delay in payment of compensation after taking possession of the acquired land.
Final Decision
The petition is partly allowed. The respondents are directed to pay interest under Section 28 of the Land Acquisition Act, 1894 at 9% per annum for the first year from the date of possession (5-1-2001) and at 15% per annum thereafter until payment. The claim for enhanced compensation is left open to be considered by the appropriate forum.
Law Points
- Land Acquisition Act
- 1894
- Section 4
- Section 6
- Section 9
- Section 11
- Section 16
- Section 23
- Section 28
- Section 31
- Section 34
- Interest on delayed compensation
- Date of possession
- Enhancement of compensation
