Case Note & Summary
The petitioners, owners of land acquired for the Neera Deoghar Project under the Land Acquisition Act, 1894, sought a writ of mandamus directing the Special Land Acquisition Officer to pay the enhanced compensation awarded under Section 28A(2) of the Act, along with interest. The original award under Section 11 was made on 28 February 1996. The petitioners did not seek a reference under Section 18 but applied under Section 28A(1) for redetermination based on a civil court judgment dated 24 August 2004. On 2 May 2011, the Special Land Acquisition Officer made an award under Section 28A(2), granting enhanced compensation with statutory benefits and interest at 9% per annum for one year from 28 February 1996 and 15% per annum thereafter until the award date. The acquiring body, Maharashtra Krishna Valley Development Corporation (MKVDC), opposed payment, citing a pending appeal against the civil court judgment. The court held that the right to receive compensation under Section 28A is not contingent on the outcome of an appeal, and the acquiring body cannot withhold payment. The court directed the respondents to pay the entire amount of compensation including interest to the petitioners upon the petitioners furnishing a bank guarantee for the entire amount. The bank guarantee was to be kept alive until the disposal of the appeal. The petition was allowed in these terms.
Headnote
A) Land Acquisition - Enhanced Compensation under Section 28A - Payment upon Bank Guarantee - Petitioners sought mandamus for payment of enhanced compensation awarded under Section 28A(2) of the Land Acquisition Act, 1894, with interest, upon furnishing a bank guarantee - Court held that the acquiring body cannot withhold payment on the ground of pending appeal, and directed payment of the entire amount including interest upon petitioners furnishing a bank guarantee for the entire amount - Held that the right to receive compensation is not defeated by pendency of appeal (Paras 1-10).
Issue of Consideration
Whether the petitioners are entitled to payment of the entire amount of enhanced compensation under Section 28A(2) of the Land Acquisition Act, 1894, including interest, upon furnishing a bank guarantee for the entire amount.
Final Decision
The court allowed the petition and directed the respondents to pay the entire amount of compensation including interest to the petitioners upon the petitioners furnishing a bank guarantee for the entire amount. The bank guarantee was to be kept alive until the disposal of the appeal.
Law Points
- Section 28A of Land Acquisition Act
- 1894
- Payment of compensation
- Bank guarantee
- Interest on enhanced compensation
Case Details
Writ Petition No.1218 of 2013
Shri G.S. Godbole along with Shri Gaurav Potnis and Shri G.K. Maurya i/by Pallavi H. Potnis for the Petitioners, Shri Nitin Deshpande, AGP for Respondent Nos.1 to 3, Shri D.D. Shinde and Shri Vivek Tadake for Respondent No.4
Ananda Baburao Pawagi, Maruti Tukaram Pawagi, Pandurang Dhondiba Pawagi, Ganpat Laxman Salunke, Chandrakant Bhiku Salunke
The State of Maharashtra, The Special Land Acquisition Officer No.(17) Pune, The Collector, Maharashtra Krishna Valley Development Corporation (MKVDC)
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India seeking a writ of mandamus for payment of enhanced compensation under Section 28A of the Land Acquisition Act, 1894.
Remedy Sought
Petitioners sought direction to the Special Land Acquisition Officer to pay the amount payable under the award made on 2nd May 2011 under Section 28A(2) of the Land Acquisition Act, 1894, together with interest, upon furnishing a bank guarantee for the entire amount.
Filing Reason
The acquiring body (MKVDC) opposed payment of the enhanced compensation awarded under Section 28A(2) on the ground that an appeal against the civil court judgment was pending.
Previous Decisions
Original award under Section 11 made on 28th February 1996. Civil court judgment and award on 24th August 2004 in Land Acquisition Reference No.70 of 1997. Award under Section 28A(2) made on 2nd May 2011.
Issues
Whether the petitioners are entitled to payment of enhanced compensation under Section 28A(2) of the Land Acquisition Act, 1894, despite the pendency of an appeal against the civil court judgment?
Whether the petitioners should be required to furnish a bank guarantee as a condition for payment?
Submissions/Arguments
Petitioners argued that they are entitled to payment of the entire amount of compensation including interest upon furnishing a bank guarantee.
Respondent No.4 (MKVDC) opposed payment, contending that an appeal against the civil court judgment was pending and that the award under Section 28A was based on that judgment.
Ratio Decidendi
The right to receive compensation under Section 28A of the Land Acquisition Act, 1894, is not defeated by the pendency of an appeal against the judgment on which the award is based. The acquiring body cannot withhold payment on that ground. Payment can be made conditional upon furnishing a bank guarantee to protect the interests of the acquiring body in case the appeal succeeds.
Judgment Excerpts
By this Petition under Article 226 of the Constitution of India, a writ of mandamus is sought directing the second Respondent (Special Land Acquisition Officer) to make payment of the amount payable under the Award made on 2nd May 2011 under Subsection (2) of Section 28A of the Land Acquisition Act, 1894 together with interest accrued thereon till the date of payment.
The specific prayer is that the entire amount of compensation including the interest be paid to the Petitioners on the Petitioners furnishing a bank guarantee for the entire amount.
Procedural History
Original award under Section 11 on 28th February 1996. Petitioners did not seek reference under Section 18. Application under Section 28A(1) based on civil court judgment of 24th August 2004. Award under Section 28A(2) on 2nd May 2011. Writ petition filed in 2013.
Acts & Sections
- Land Acquisition Act, 1894: Section 11, Section 18, Section 23(1A), Section 23(2), Section 28A
