Case Note & Summary
The case arises from a land acquisition proceeding under the Land Acquisition Act, 1894 (the Act). The appellants, the Deputy Collector (L.A.)/MPT and the Executive Engineer, Public Works Department, challenged the Award dated 24.09.2007 passed by the Reference Court (Civil Judge, Senior Division) in a land acquisition reference. The respondents, Tome Carvalho and others, were the landowners whose land was acquired. Possession of the land was taken on 14.09.1998, prior to the issuance of the Section 4 notification under the Act. The Reference Court, while deciding issue nos. 4 and 5, concluded that additional compensation under Section 23(1-A) of the Act and interest on solatium should be paid from the date of possession (14.09.1998) rather than from the date of the Section 4 notification. The appellants contended that this was erroneous and contrary to the scheme of the Act, as compensation is to be determined as on the date of the Section 4 notification. The appellants relied on Supreme Court judgments in Siddappa Vasappa Kuri v. Spl. Land Acquisition Officer (AIR 2001 SC 2951) and R. L. Jain v. D. D. A. (AIR 2004 SC 1904), which overruled the earlier decision in Asst. Commissioner v. Mathapathi Basavannewwa (AIR 1995 SC 2492) that the Reference Court had relied upon. The respondents did not appear despite service. The High Court framed the point for determination: whether the Reference Court was justified in awarding compensation under Section 23(1-A) and interest from 14.09.1998, prior to the Section 4 notification. The court analyzed the scheme of the Act and the cited precedents, holding that the scheme contemplates compensation determined as on the date of the Section 4 notification. Therefore, additional compensation under Section 23(1-A) and interest on solatium cannot be awarded from a date prior to the Section 4 notification. The court allowed the appeal, set aside the impugned award to the extent it directed payment from 14.09.1998, and directed that the amounts be paid from the date of the Section 4 notification. No order as to costs.
Headnote
A) Land Acquisition - Compensation under Section 23(1-A) - Date from which payable - The issue was whether additional compensation under Section 23(1-A) of the Land Acquisition Act, 1894 should be paid from the date of possession (prior to Section 4 notification) or from the date of Section 4 notification. The court held that the scheme of the Act contemplates compensation determined as on the date of Section 4 notification, and therefore additional compensation under Section 23(1-A) and interest on solatium cannot be awarded from a date prior to the Section 4 notification. The Reference Court's award to that extent was set aside. (Paras 2-6) B) Land Acquisition - Interest on solatium - Date from which payable - The court held that interest on solatium under Section 28 of the Land Acquisition Act, 1894 is also payable from the date of Section 4 notification, not from the date of prior possession. The Reference Court's direction to pay interest from 14.09.1998 (date of possession) was erroneous. (Paras 3-6)
Issue of Consideration
Whether the Reference Court was justified to award compensation under Section 23(1-A) as well as interest from 14.09.1998 which is prior to Section 4 Notification under the Land Acquisition Act, 1894.
Final Decision
The appeal is allowed. The impugned Judgment and Award dated 24.09.2007 passed by the Reference Court is set aside to the extent it directed payment of compensation under Section 23(1-A) and interest on solatium from 14.09.1998. It is directed that the said amounts shall be paid from the date of Section 4 notification under the Land Acquisition Act, 1894. No order as to costs.
Law Points
- Compensation under Section 23(1-A) of the Land Acquisition Act
- 1894 is payable from the date of Section 4 notification
- not from the date of prior possession
- Interest on solatium under Section 28 of the Land Acquisition Act
- 1894 is also payable from the date of Section 4 notification
- The scheme of the Land Acquisition Act contemplates compensation determined as on the date of Section 4 notification
