Case Note & Summary
The State of Maharashtra appealed against the Judgment and Order dated 24th February 1992 passed by the Reference Court (Joint District Judge, Nashik) in Land Reference No.16 of 1984. The Reference Court had enhanced the market value of lands acquired under the Land Acquisition Act, 1894 and directed payment of interest at 15% per annum from 19th February 1992 until payment. The lands were acquired for a public purpose via Notification under Section 4 dated 17th July 1980. The Special Land Acquisition Officer made an award, which the claimants challenged under Section 18. Pending the reference, the Land Acquisition Act was amended by Act 68 of 1984 with effect from 24th September 1984, introducing additional benefits like 12% additional component under Section 23(1-A), increased solatium from 15% to 30% under Section 23(2), and enhanced interest rates under Section 34 (9% for first year, 15% thereafter). The claimants filed Miscellaneous Civil Application No.531 of 1992 seeking correction of the award to include these benefits. The Reference Court allowed the application and directed interest at 15% per annum from 19th February 1992 (the date of the application) until payment. The State appealed, arguing that interest should be payable only from the date of the award (24th February 1992) and that the amended provisions did not apply. The High Court dismissed the appeal, holding that the Reference Court's order was correct. The court noted that the amendment Act applied to pending references as the award was passed after the amendment. It distinguished between Section 34 (interest for delay in possession) and Section 28 (interest for delay in payment of enhanced compensation). The court held that interest under Section 28 is payable from the date of application for reference, and the Reference Court had rightly granted interest from the date of the application for correction. The appeal was dismissed with no order as to costs.
Headnote
A) Land Acquisition - Interest under Section 28 - Date from which interest payable - The Reference Court directed payment of interest @ 15% p.a. from 19th February 1992 (date of application for correction) until payment. The High Court held that interest under Section 28 is payable from the date of application for reference, not from the date of award, and the Reference Court's order was correct. (Paras 1-16) B) Land Acquisition - Applicability of Amendment Act 68 of 1984 - Pending References - The Amendment Act 68 of 1984, which enhanced solatium and interest rates, applies to pending references as the award was passed after the amendment came into force. The Reference Court correctly applied the amended provisions. (Paras 3-16) C) Land Acquisition - Distinction between Section 34 and Section 28 - Interest - Section 34 provides interest for delay in taking possession, while Section 28 provides interest for delay in payment of enhanced compensation. The Reference Court's order under Section 28 was proper. (Paras 10-16)
Issue of Consideration
Whether the Reference Court was correct in granting interest at 15% per annum from the date of filing of the application for reference under Section 18 of the Land Acquisition Act, 1894, and whether the amended provisions of the Land Acquisition Act, 1894 apply to pending references.
Final Decision
The High Court dismissed the appeal with no order as to costs, upholding the Reference Court's order granting interest at 15% per annum from 19th February 1992 until payment.
Law Points
- Interest under Section 28 of Land Acquisition Act
- 1894 is payable from the date of application for reference
- not from the date of award
- Amendment Act 68 of 1984 applies to pending references
- Section 34 interest is for delay in possession
- Section 28 interest is for delay in payment of enhanced compensation
