Case Note & Summary
The State of Maharashtra appealed against the judgment and order dated 26th February 1992 passed by the Joint District Judge, Nashik, in Land Reference No.158 of 1984. The Reference Court had enhanced the compensation for land acquired under the Land Acquisition Act, 1894, and directed payment of interest at 15% per annum on the enhanced amount until full payment or deposit in court. The land was acquired pursuant to a notification under Section 4 of the Act published on 17th July 1980. The Special Land Acquisition Officer made an award, against which the claimants sought a reference under Section 18. While the reference was pending, the Land Acquisition Act was amended by Act No.68 of 1984 with effect from 24th September 1984. The amendment introduced a higher rate of interest under Section 28. The Reference Court applied the amended provision and awarded interest at 15% per annum. The State contended that the amendment should not apply because the original award was made before the amendment. The High Court examined the language of Section 28 as amended and the proviso to Section 30(2) of the Amendment Act, which states that the amendment applies to every case in which proceedings are pending on the date of commencement of the Amendment Act. Since the reference was pending on 24th September 1984, the court held that the amended Section 28 applies. The court further noted that the interest rate under Section 28 is 9% per annum for the first year from the date of taking possession and 15% per annum for the subsequent period. The Reference Court's order directing interest at 15% per annum until payment was consistent with this provision. The High Court found no merit in the appeal and dismissed it, confirming the order of the Reference Court.
Headnote
A) Land Acquisition - Interest on Enhanced Compensation - Section 28 Land Acquisition Act, 1894 - Amendment Act 68 of 1984 - Applicability to Pending References - The State challenged the Reference Court's order awarding interest at 15% p.a. on enhanced compensation, arguing that the amendment came into force after the original award. The Court held that the amendment applies to all proceedings pending on the date of commencement of the Amendment Act, and since the reference was pending on 24th September 1984, the enhanced rate of interest is applicable. The appeal was dismissed. (Paras 1-6)
B) Land Acquisition - Interest - Section 28 Land Acquisition Act, 1894 - Rate of Interest - The Court clarified that Section 28 as amended provides for interest at 9% p.a. for the first year from the date of taking possession and at 15% p.a. for the subsequent period until payment. The Reference Court's order directing interest at 15% p.a. until entire payment was upheld as consistent with the amended provision. (Paras 4-6)
Issue of Consideration
Whether the Reference Court was correct in awarding interest at 15% per annum on the enhanced compensation under Section 28 of the Land Acquisition Act, 1894 as amended by Act 68 of 1984, even though the original award by the Special Land Acquisition Officer was made prior to the amendment?
Final Decision
The High Court dismissed the appeal and confirmed the order of the Reference Court dated 26th February 1992, directing the State to pay interest at 15% per annum on the enhanced compensation until the entire amount is paid or deposited in court.
Law Points
- Interest on compensation
- Land acquisition
- Amendment Act 68 of 1984
- Section 28 Land Acquisition Act 1894
- Pending proceedings
- Enhanced compensation
Case Details
2017 LawText (BOM) (05) 43
First Appeal No.613 of 1994
Dr. Shalini Phansalkar-Joshi, J.
Mr. Ameet Palkar, A.G.P., for the Applicant-State. None for the Respondents-Claimants.
State of Maharashtra (Through the Special Land Acquisition Officer, Nashik)
Kashiram Bhaudu Hulgunde (Since Deceased) Through His Legal Heirs
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Nature of Litigation
Appeal against the judgment and order of the Reference Court in a land acquisition reference, challenging the award of interest at 15% per annum on enhanced compensation.
Remedy Sought
The State of Maharashtra sought to set aside the order of the Reference Court directing payment of interest at 15% per annum on the enhanced compensation amount.
Filing Reason
The State contended that the Reference Court erred in applying the amended Section 28 of the Land Acquisition Act, 1894, which came into force after the original award was made.
Previous Decisions
The Special Land Acquisition Officer made an award. The Reference Court (Joint District Judge, Nashik) passed an award on 26th February 1992 enhancing compensation and directing interest at 15% per annum.
Issues
Whether the amendment to Section 28 of the Land Acquisition Act, 1894 by Act 68 of 1984 applies to pending references where the original award was made before the amendment?
Whether the Reference Court was correct in awarding interest at 15% per annum on the enhanced compensation?
Submissions/Arguments
The Appellant-State argued that the amendment to Section 28 came into force on 24th September 1984, whereas the original award was made prior to that date, and therefore the amended provision should not apply.
The Respondents-Claimants did not appear, but the court considered the provisions of the Amendment Act and the proviso to Section 30(2) which states that the amendment applies to proceedings pending on the date of commencement of the Amendment Act.
Ratio Decidendi
The amendment to Section 28 of the Land Acquisition Act, 1894 by Act 68 of 1984 applies to all proceedings pending on the date of commencement of the Amendment Act, i.e., 24th September 1984. Since the reference was pending on that date, the enhanced rate of interest (9% for the first year and 15% thereafter) is applicable. The Reference Court's order awarding interest at 15% per annum until payment is consistent with the amended provision.
Judgment Excerpts
The challenge in this Appeal is to the Judgment and Order dated 26th February 1992 passed by the Reference Court of Joint District Judge at Nashik, thereby correcting its Award passed in Land Reference No.158 of 1984 and directing the State to pay the interest @ 15% p.a. until the entire compensation amount is paid to the Respondents-Claimants or it is deposited in the Court.
Pending this Reference before the Joint District Judge, Nashik, the Land Acquisition Act, 1894 came to be amended by the Amending Act No.68 of 1984 with effect from 24th September 1984.
The proviso to Section 30(2) of the Amendment Act clearly provides that the provisions of Section 28 as amended shall apply to every case in which proceedings are pending on the date of commencement of the Amendment Act.
Hence, the Reference Court was fully justified in awarding interest at the rate of 15% p.a. on the enhanced compensation.
Procedural History
The land was acquired by notification under Section 4 of the Land Acquisition Act, 1894 on 17th July 1980. The Special Land Acquisition Officer made an award. The claimants sought a reference under Section 18, which was pending before the Joint District Judge, Nashik. During the pendency, the Act was amended on 24th September 1984. The Reference Court passed an award on 26th February 1992 enhancing compensation and awarding interest at 15% p.a. The State filed the present appeal on 9th May 2017.
Acts & Sections
- Land Acquisition Act, 1894: Section 4, Section 18, Section 28, Section 30(2)
- Land Acquisition (Amendment) Act, 1984 (Act No.68 of 1984): Section 28, Section 30(2)
