Bombay High Court Dismisses Petition Challenging Interest Calculation in Land Acquisition Case. Interest under Section 23(1A) of Land Acquisition Act, 1894 is to be calculated from the last date of publication of Section 4 notification, not from the date of issuance.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioner, Shri Prakash Vasudeo Deodhar, challenged an order dated 13th June, 2003 passed by the Special Land Acquisition Officer (Minor Irrigation), Raigad-Alibag, and sought a direction for construction of a permanent Asphalt Road for approaching the remaining areas of his land. The core dispute pertained to the calculation of interest under Section 23(1A) of the Land Acquisition Act, 1894. The notification under Section 4 was issued on 16th January, 2001, and published on 21st March, 2001. The award under Section 11 was declared on 7th October, 2002. The petitioner contended that interest should be calculated for 630 days (from 16th January, 2001 to 7th October, 2002), while the respondents calculated interest for 566 days (from 21st March, 2001 to 7th October, 2002). The court noted that it was not in dispute that the notification was issued on 16th January, 2001, and the last date of publication was 21st March, 2001. The court held that the period for calculation of interest under Section 23(1A) commences from the last date of publication of the notification under Section 4, which is 21st March, 2001, and not from the date of issuance. Therefore, the respondents' calculation of 566 days was correct. The court dismissed the petition, finding no merit in the challenge.

Headnote

A) Land Acquisition - Interest Calculation - Section 23(1A) Land Acquisition Act, 1894 - Commencement of Interest Period - The period for calculation of interest under Section 23(1A) commences from the last date of publication of the notification under Section 4, not from the date of issuance of the notification. The court held that the expression 'publication' under Section 4 has been settled to be the last day of publication of such notification by catena of decisions. (Paras 3-4)

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Issue of Consideration

Whether the period for calculation of interest under Section 23(1A) of the Land Acquisition Act, 1894 should commence from the date of issuance of notification under Section 4 or from the last date of publication of such notification

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Final Decision

The petition is dismissed. The court held that the period for calculation of interest under Section 23(1A) of the Land Acquisition Act, 1894 commences from the last date of publication of the notification under Section 4, which in this case is 21st March, 2001, and not from the date of issuance of the notification. The respondents' calculation of 566 days is correct.

Law Points

  • Interest under Section 23(1A) of Land Acquisition Act
  • 1894 is to be calculated from the last date of publication of notification under Section 4
  • not from the date of issuance of notification
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Case Details

2006 LawText (BOM) (06) 17

Writ Petition No.8037 of 2005

2006-06-16

R.M.S.Khandeparkar, Smt. Roshan Dalvi

Shri S.M.Kamble for the petitioner, Shri R.M.Patne, AGP for the respondents

Shri Prakash Vasudeo Deodhar

The Special Land Acquisition Officer (Minor Irrigation), Raigad-Alibag, The State of Maharashtra

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Nature of Litigation

Writ petition challenging order of Special Land Acquisition Officer regarding calculation of interest under Section 23(1A) of Land Acquisition Act, 1894

Remedy Sought

Petitioner sought to quash order dated 13th June, 2003 and direction for construction of permanent Asphalt Road

Filing Reason

Dispute over calculation of interest period for compensation under Section 23(1A) of Land Acquisition Act, 1894

Previous Decisions

Order dated 13th June, 2003 passed by respondent No.1

Issues

Whether the period for calculation of interest under Section 23(1A) of the Land Acquisition Act, 1894 should commence from the date of issuance of notification under Section 4 or from the last date of publication of such notification

Submissions/Arguments

Petitioner argued that interest should be calculated from the date of issuance of notification under Section 4 (16th January, 2001) to the date of award (7th October, 2002), i.e., 630 days Respondents argued that interest should be calculated from the last date of publication of notification under Section 4 (21st March, 2001) to the date of award, i.e., 566 days

Ratio Decidendi

The period for calculation of interest under Section 23(1A) of the Land Acquisition Act, 1894 commences from the last date of publication of the notification under Section 4, not from the date of issuance of the notification.

Judgment Excerpts

The period for calculation of interest under Section 23(1A) of the said Act would commence from the last date of publication of the notification under Section 4. The expression 'publication' under Section 4 has been settled to be the last day of publication of such notification by catena of decisions of this Court

Procedural History

The petitioner filed Writ Petition No.8037 of 2005 challenging the order dated 13th June, 2003 passed by the Special Land Acquisition Officer (Minor Irrigation), Raigad-Alibag. The petition was heard by a Division Bench of the Bombay High Court on 16th June, 2006 and dismissed.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4, Section 11, Section 23(1A)
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