Case Note & Summary
The petitioner, Vasant Balkrishna Wale, filed a writ petition seeking direction for payment of interest on the amount deposited after a period of about 9 years from the date of the award in proceedings under Section 30 of the Land Acquisition Act, 1894. The undisputed facts are that the award under Section 11 of the Act was passed on 15-11-1978 and possession of the land was taken on 16-12-1978. The amount awarded under the said award to the tune of Rs.96,648.88 ps. was deposited in the Court while making reference under Section 30 of the said Act only on 8-10-1987. No amount of interest over and above the sum awarded under the award was deposited. The petitioner claimed interest for the period from the date of award till the date of deposit. The respondents, including the Special Land Acquisition Officer and the State of Maharashtra, opposed the claim. The court considered the provisions of Section 34 of the Land Acquisition Act, which provides for payment of interest on the amount of compensation if it is not paid or deposited on or before taking possession of the land. The court noted that the award was passed on 15-11-1978 and possession was taken on 16-12-1978, but the amount was deposited only on 8-10-1987. The court held that the petitioner is entitled to interest under Section 34 of the Act from the date of award till the date of deposit. The court directed the respondents to pay interest at the rate prescribed under Section 34 within three months from the date of the judgment. The petition was allowed accordingly.
Headnote
A) Land Acquisition - Interest on Delayed Deposit - Section 34, Land Acquisition Act, 1894 - Reference under Section 30 - The petitioner sought interest on compensation deposited after a delay of about 9 years from the award. The court held that the petitioner is entitled to interest under Section 34 of the Act from the date of award (15-11-1978) till the date of deposit (8-10-1987) at the rate prescribed under Section 34. The court directed the respondents to pay interest accordingly within three months. (Paras 1-5)
Issue of Consideration
Whether the petitioner is entitled to interest on the amount of compensation deposited after a delay of about 9 years from the date of the award in proceedings under Section 30 of the Land Acquisition Act, 1894.
Final Decision
The petition is allowed. The respondents are directed to pay interest under Section 34 of the Land Acquisition Act, 1894 on the amount of Rs.96,648.88 ps. from the date of award i.e. 15-11-1978 till the date of deposit i.e. 8-10-1987 at the rate prescribed under Section 34 of the said Act. The said amount of interest shall be paid within three months from today.
Law Points
- Interest on delayed deposit of compensation
- Section 34 Land Acquisition Act
- 1894
- Reference under Section 30
- Entitlement to interest from date of award till deposit
Case Details
2005 LawText (BOM) (09) 9
WRIT PETITION NO.4320 OF 1994
R.M.S. KHANDEPARKAR, V.M. KANADE
Shri P.N. Karlekar for the Petitioner, Ms M.P. Thakur, Asst. Government Pleader, for the Respondent Nos.6 and 7
Vithal Mahadeo Deshmukh, Babu Devji Diwekar, Tukaram Bapu Jadhav, Tulshiram Daji Jagdale (deceased) by his L.Rs., Vishnu Yashwant Divekar, The Special Land Acquisition Officer No.12, Now.19, Pune, The State of Maharashtra
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Nature of Litigation
Writ petition seeking direction for payment of interest on delayed deposit of compensation in land acquisition proceedings.
Remedy Sought
Petitioner sought direction for payment of interest on the amount deposited after a period of about 9 years from the date of the award.
Filing Reason
The amount awarded under Section 11 award was deposited in court only on 8-10-1987, about 9 years after the award dated 15-11-1978, and no interest was paid.
Issues
Whether the petitioner is entitled to interest on the amount of compensation deposited after a delay of about 9 years from the date of the award in proceedings under Section 30 of the Land Acquisition Act, 1894.
Submissions/Arguments
Petitioner argued that he is entitled to interest under Section 34 of the Land Acquisition Act for the period from the date of award till the date of deposit.
Respondents opposed the claim, but the court found no merit in their opposition.
Ratio Decidendi
Under Section 34 of the Land Acquisition Act, 1894, if the compensation awarded is not paid or deposited on or before taking possession of the land, the Collector shall pay interest on the amount of compensation from the date of taking possession until it is paid or deposited. In this case, possession was taken on 16-12-1978 but the amount was deposited only on 8-10-1987, hence the petitioner is entitled to interest for the period of delay.
Judgment Excerpts
The petitioner by the present petition seeks direction for payment of interest over the amount deposited after a period of about 9 years from the date of the award in the proceedings under Section 30 of the Land Acquisition Act, 1894.
The undisputed facts in the case in hand are that the award under Section 11 of the said Act was passed on 15-11-1978 and the possession of the land was taken on 16-12-1978.
The amount awarded under the said award to the tune of Rs.96,648.88 ps. was deposited in the Court while making reference under Section 30 of the said Act only on 8-10-1987.
The petitioner is entitled to interest under Section 34 of the said Act from the date of award till the date of deposit.
Procedural History
The award under Section 11 of the Land Acquisition Act was passed on 15-11-1978. Possession was taken on 16-12-1978. The amount was deposited in court on 8-10-1987 while making a reference under Section 30. The petitioner filed Writ Petition No.4320 of 1994 seeking interest on the delayed deposit. The petition was heard and decided on 14-09-2005.
Acts & Sections
- Land Acquisition Act, 1894: Section 11, Section 30, Section 34
