Case Note & Summary
The State of Maharashtra, through the Special Land Acquisition Officer, Pune, appealed against the judgment and decree dated 10/10/1988 passed by the Extra Joint District Judge, Pune in Land Acquisition Reference No.44 of 1981. The acquisition proceedings were initiated for an area of 13,700 sq. meters, and the award was passed on 20/11/1979. The Special Land Acquisition Officer awarded compensation at Rs. 35.60 per sq. meter. On reference, the District Court enhanced the compensation to Rs. 47.35 per sq. meter. The State challenged only the grant of interest at 12% under Section 23(1-A) of the Land Acquisition Act, 1894, arguing that interest should be awarded from the date of the award, not from the date of taking possession. The High Court, after hearing the Assistant Government Pleader for the appellant (respondents were unrepresented), examined the language of Section 23(1-A). The Court noted that the section explicitly states that interest is payable from the date on which possession was taken. The Court found no error in the District Court's order and dismissed the appeal, confirming the enhanced compensation and the interest awarded.
Headnote
A) Land Acquisition - Compensation - Interest under Section 23(1-A) - The issue was whether interest under Section 23(1-A) of the Land Acquisition Act, 1894 should be awarded from the date of taking possession or from the date of the award. The Court held that interest under Section 23(1-A) is payable from the date of taking possession, as per the plain language of the section. The District Court's award of interest at 12% from the date of possession was upheld. (Paras 5-6)
Issue of Consideration
Whether the District Court erred in granting interest at 12% under Section 23(1-A) of the Land Acquisition Act, 1894 from the date of possession instead of from the date of the award.
Final Decision
The appeal is dismissed. The judgment and decree dated 10/10/1988 passed by the Extra Joint District Judge, Pune in Land Acquisition Reference No.44 of 1981 is confirmed.
Law Points
- Interest under Section 23(1-A) of the Land Acquisition Act
- 1894 is payable from the date of taking possession
- not from the date of the award.
Case Details
2005 LawText (BOM) (08) 94
First Appeal No. 912 of 1989
R.M.S. Khandeparkar, V.M. Kanade
Mr. K.K. Tated, AGP for the appellant. None for the respondents.
The State of Maharashtra (At the instance of Special Land Acquisition Officer, No.15, Pune.)
1. Smt. Anandibai Vasantrao Lonkar, Sole Trustee of Onkareshwar Mahadeo Devasthan, residing at 1286/A, Shivajinagar, Pune - 5. 2. Pune Municipal Corporation, Shivajinagar, Pune - 5.
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Nature of Litigation
First Appeal against judgment and decree in Land Acquisition Reference enhancing compensation and awarding interest.
Remedy Sought
The appellant (State) sought to set aside the award of interest at 12% under Section 23(1-A) from the date of possession.
Filing Reason
The State was aggrieved by the District Court's grant of interest under Section 23(1-A) from the date of possession instead of from the date of the award.
Previous Decisions
The Special Land Acquisition Officer awarded compensation at Rs. 35.60 per sq. meter. The Extra Joint District Judge, Pune in Land Acquisition Reference No.44 of 1981 enhanced compensation to Rs. 47.35 per sq. meter and awarded interest at 12% under Section 23(1-A) from the date of possession.
Issues
Whether the District Court erred in granting interest at 12% under Section 23(1-A) of the Land Acquisition Act, 1894 from the date of possession instead of from the date of the award.
Submissions/Arguments
The learned Assistant Government Pleader submitted that Section 23(1-A) of the Land Acquisition Act, 1894 provides for interest from the date of the award, not from the date of possession.
Ratio Decidendi
Interest under Section 23(1-A) of the Land Acquisition Act, 1894 is payable from the date on which possession was taken, as per the plain language of the section. The District Court did not err in awarding interest from the date of possession.
Judgment Excerpts
The only point which is canvassed before us in this First Appeal is that the District Court had erred in granting interest @ 12% as provided in section 23(1-A) of the Land Acquisition Act, 1894.
Section 23(1-A) of the said Act clearly provides that the interest is payable from the date on which possession was taken.
Procedural History
Acquisition proceedings initiated by Special Land Acquisition Officer for 13,700 sq. meters; award passed on 20/11/1979 at Rs. 35.60 per sq. meter. On reference, Extra Joint District Judge, Pune in Land Acquisition Reference No.44 of 1981 enhanced compensation to Rs. 47.35 per sq. meter and awarded interest at 12% under Section 23(1-A) from date of possession. State filed First Appeal No. 912 of 1989 before Bombay High Court.
Acts & Sections
- Land Acquisition Act, 1894: 23(1-A)
