Case Note & Summary
The State of Maharashtra appealed against the judgment and order dated 24th January 1992 passed by the Reference Court (Joint District Judge, Nashik) in Land Reference No.35 of 1979. The Reference Court had corrected its earlier award dated 25th October 1982 by directing the State to pay interest at 15% per annum from 14th January 1992 until the entire compensation amount was paid to the claimants or deposited in court. The land in question, bearing Survey No.104/2, was acquired for a public purpose under a notification dated 17th July 1980 issued under Section 4 of the Land Acquisition Act, 1894. The Special Land Acquisition Officer made an award, against which the claimants sought a reference under Section 18 of the Act. The Reference Court enhanced the market value of the land. However, the original award did not specify the date from which interest under Section 28 of the Act was payable. The claimants filed an application under Section 152 of the Code of Civil Procedure, 1908 (CPC) for correction of the award, contending that interest should be paid from the date of possession. The Reference Court allowed the application and directed interest at 15% per annum from 14th January 1992 (the date of the correction order) until payment. The State challenged this order, arguing that the Reference Court had no jurisdiction to modify the award after it was passed. The High Court held that the Reference Court had inherent power under Section 152 CPC to correct arithmetical or clerical errors in its award to reflect its true intention. The court noted that the original award had omitted to specify the date from which interest was payable, and the correction was necessary to give effect to the statutory right under Section 28 of the Land Acquisition Act, which mandates interest from the date of possession. The court further held that the interest at 15% per annum was correctly directed from the date of the correction order (14th January 1992) until payment, as the claimants were entitled to interest from the date of possession. The appeal was dismissed as devoid of merit.
Headnote
A) Land Acquisition - Correction of Award - Section 152 CPC - Reference Court has inherent power to correct arithmetical or clerical errors in its award to reflect the true intention of the court - The court can direct payment of interest under Section 28 of the Land Acquisition Act, 1894 from the date of possession even if not explicitly mentioned in the original award, as it is a statutory right - Held that the correction order was valid and within jurisdiction (Paras 1-10). B) Land Acquisition - Interest under Section 28 - Date of Possession - Under Section 28 of the Land Acquisition Act, 1894, interest is payable from the date of taking possession of the land, not from the date of the award - The Reference Court correctly directed interest at 15% per annum from 14th January 1992 (date of correction order) until payment, as the original award had omitted to specify the date from which interest was payable - Held that the State's appeal was devoid of merit (Paras 5-10).
Issue of Consideration
Whether the Reference Court had jurisdiction to correct its earlier award by directing payment of interest at 15% per annum from the date of possession under Section 28 of the Land Acquisition Act, 1894, and whether such correction was permissible under Section 152 of the Code of Civil Procedure, 1908.
Final Decision
The High Court dismissed the appeal, holding that the Reference Court had inherent power under Section 152 CPC to correct arithmetical or clerical errors in its award. The direction to pay interest at 15% per annum from 14th January 1992 until payment was valid and in accordance with Section 28 of the Land Acquisition Act, 1894. The appeal was dismissed with no order as to costs.
Law Points
- Power of Reference Court to correct arithmetical errors in award under Section 152 CPC
- Interest under Section 28 of Land Acquisition Act
- 1894 payable from date of possession
- Applicability of amended Section 28 after 1984 amendment
