Case Note & Summary
The petitioners, M.V. Subba Rao and M.M.G. Prasad, were owners of land in Singapore Village, Sindhanoor Taluk, Raichur District, which was acquired for construction of an Ayacut Road. A preliminary notification under Section 4(1) of the Land Acquisition Act, 1894 was issued on 26.04.1993. An award was passed, and the petitioners were awarded compensation. Dissatisfied with the compensation, they sought a reference under Section 18 of the Act, and the Civil Court enhanced the compensation. The judgment debtor (the State) did not challenge the award, and it became final. When the decree holders sought execution, the judgment debtor objected, arguing that interest under Section 28 of the Act should be calculated from the date of the Section 4(1) notification, not from the date of possession. The executing court upheld this objection, leading to the present writ petition. The High Court examined the language of Section 28, which states that interest is payable on the excess amount 'from the date on which possession was taken'. The court noted that the section does not link interest to the date of notification. The court also referred to Section 34, which deals with interest on compensation not paid or deposited, and distinguished it from Section 28. The court held that the executing court's interpretation was erroneous and that interest under Section 28 is payable from the date of taking possession. The writ petition was allowed, the impugned order was quashed, and the executing court was directed to proceed with execution in accordance with law.
Headnote
A) Land Acquisition - Interest - Section 28 Land Acquisition Act, 1894 - The issue was whether interest under Section 28 is payable from the date of possession or from the date of Section 4(1) notification. The court held that interest under Section 28 is payable from the date of taking possession, as the section itself provides for interest on the excess amount from the date on which possession was taken. The executing court erred in holding that interest is payable only from the date of notification. (Paras 1-5)
Issue of Consideration
Whether the Decree Holder is entitled to interest under Section 28 of the Land Acquisition Act, 1894 from the date of taking possession or from the date of notification under Section 4(1) of the Act.
Final Decision
The writ petition is allowed. The impugned order dated 20-11-2007 passed by the learned Civil Judge (Sr.Dn.), Lingasugur, in EP No.19/2007 is quashed. The Executing Court is directed to proceed with the execution in accordance with law.
Law Points
- Interest under Section 28 of the Land Acquisition Act
- 1894 is payable from the date of taking possession
- not from the date of notification under Section 4(1)
- Section 28 Land Acquisition Act
- 1894
- Section 34 Land Acquisition Act
Case Details
2013 LawText (KAR) (02) 23
Writ Petition No. 753 of 2008 (LA-RES)
Y. Varadaraj, A.M. Nagaral, Shivakumar Tengli
M. V. Subba Rao and M.M.G. Prasad
Land Acquisition Officer/Lingasagur and Executive Engineer
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Nature of Litigation
Writ petition challenging the order of the Executing Court upholding the objection of the Judgment Debtor that the Decree Holder is not entitled to payment of interest prior to the issue of notification under Section 4(1) of the Land Acquisition Act, 1894.
Remedy Sought
The petitioners (Decree Holders) sought to quash the impugned order dated 20-11-2007 passed by the Civil Judge (Sr.Dn.), Lingasugur, in EP No.19/2007, restore the Execution Petition, and dismiss/overrule the objections filed by the respondents.
Filing Reason
The Executing Court upheld the objection of the Judgment Debtor that interest under Section 28 of the Land Acquisition Act, 1894 is payable only from the date of notification under Section 4(1), not from the date of possession.
Previous Decisions
The Civil Court had enhanced compensation in a reference under Section 18 of the Act, and the award became final as not challenged by the judgment debtor.
Issues
Whether interest under Section 28 of the Land Acquisition Act, 1894 is payable from the date of taking possession or from the date of notification under Section 4(1).
Submissions/Arguments
The petitioners argued that Section 28 of the Act clearly provides for interest on the excess amount from the date on which possession was taken, and the executing court erred in holding otherwise.
The respondents (judgment debtor) argued that interest should be calculated from the date of notification under Section 4(1).
Ratio Decidendi
Interest under Section 28 of the Land Acquisition Act, 1894 is payable from the date of taking possession, as the section explicitly states 'from the date on which possession was taken'. The date of notification under Section 4(1) is not relevant for calculation of interest under Section 28.
Judgment Excerpts
This writ petition is filed by the Decree Holder challenging the order passed by the Executing Court upholding the objection of the Judgment Debtor that the Decree Holder is not entitled to payment of interest prior to the issue of notification under Section 4(1) of the Land Acquisition Act, 1894.
The petitioners were the owners of land bearing Sy.No.12(A) and 12(AA) measuring 2 acres 12 guntas of Singapore Village in Sindhanoor Taluk, Raichur District.
A preliminary notification came to be issued on 26.04.1993.
Award came to be passed.
The court held that interest under Section 28 is payable from the date of possession, not from the date of notification.
Procedural History
The land was notified for acquisition on 26.04.1993 under Section 4(1) of the Land Acquisition Act, 1894. An award was passed, and the petitioners sought a reference under Section 18. The Civil Court enhanced compensation. The judgment debtor did not challenge the award. When the decree holders filed Execution Petition No.19/2007, the judgment debtor objected to the calculation of interest. The Executing Court upheld the objection on 20-11-2007. The decree holders filed the present writ petition under Articles 226 and 227 of the Constitution of India challenging that order.
Acts & Sections
- Land Acquisition Act, 1894: Section 4(1), Section 18, Section 28, Section 34
- Constitution of India: Article 226, Article 227
