Land Acquisition Act, 1894:
s. 34 – Payment of interest under – Whether from the date of award or from the date prior thereto – Construction of dam after acquisition of land – Submergence of land in question after the full reservoir level breached in the year 1991 – Acquisition process of land in question started in the year 2007 – Award of compensation – High Court enhanced the compensation amount and directed payment of interest from the date of award i.e. 23.7.2009 – Appeal to Supreme Court seeking interest w.e.f. 1991 – Held: Interest u/s. 34 can start only from the date the possession of the acquired land is taken – No interest can be claimed for the period prior to s. 4 Notification – When possession is taken prior to issuance of preliminary Notification, land-owner is only entitled to rent or damage for use and occupation – In the present case submergence/possession of the land is disputed – Claim of damages would depend upon the factum whether the land has come under submergence in the year 1991 – The Collector is directed to examine whether the land in question came under submergence in 1991 and thereupon determine the quantum of damages to be paid from 1991 till the date of Notification u/s. 4 – If submergence proved, the land-owner shall be entitled to interest u/s. 34 also from the date of s. 4 Notification till the date of award. Disposing of the appeal, the Court
HELD: 1. Interest under Section 34 or Section 28 of Land Acquisition Act, 1894 can start only from the date the possession of the land is taken. Unless there is a case of urgency under Section 17(1) of the Act where possession has been taken, or the acquisition process is initiated, in such cases, compensation would be payable by virtue of provisions of Section 17 of the Act. [Para 6] [28-E-F]
Lila Ghosh v. State of West Bengal (2004) 9 SCC
337 : [2003] 5 Suppl. SCR 599 – relied on.
2. In a case where the land-owner is dispossessed prior to the issuance of preliminary notification under Section 4 of the Act, it is open to the land-owner to recover the possession of his land by taking appropriate legal proceedings. Therefore, he is only entitled to get rent or damage for use and occupation for the period the Government retains possession of the property. When possession is taken prior to issuance of preliminary notification, the Collector may also determine the rent or damages. [Para 7] [29-C-E]
R.L. Jain v. DDA & Ors. (2004) 4 SCC 79 : [2004] 2 SCR 1156 – relied on.
3. No interest can be claimed for the period prior to the Section 4 notification. Where possession has been lost prior to initiation of the acquisition proceedings, the land-owners can claim rent or damages before the Collector. [Para 9] [30-D-E]
Special Land Acquisition Officer v. Karigowda & Ors. (2010) 5 SCC 708 : [2010] 5 SCR 164 – relied on.
4. On considering the provisions of Section 23, while determining the compensation under Section 23(1) of the Act, the Court shall take into consideration firstly, the market value of the land on the date of publication, secondly, the damage sustained by reason of taking of any standing crops or trees and other damages at the time of taking possession. Under Section 23(1)(A) of the Act, the additional compensation is awarded at the rate of twelve percent per annum on the market value from the date of notification under Section 4. Under Section 23(1A) of the Act, in addition to the market value, thirty percent solatium is awarded on such market value. [Para 11] [31-F-H] Siddhappa Vasappa Kuri & Anr. v. Special Land Acquisition Officer & Anr. (2002) 1 SCC 142 : [2001]
4 Suppl. SCR 236 – relied on.
5. Under Section 34, nine percent interest is payable for the first year from the date of taking possession, and in case it is not paid within one year from the date of possession, the interest at the rate of fifteen percent per annum is payable. [Para 13] [32-D]
6. In the instant case, the date of taking of the possession/submergence is disputed, and there is no categorical finding recorded that area in question came under submergence with effect from the year 1991 and was not as a matter of fact in possession of the appellant. Certain documentary evidence has been pointed out, indicating that the land was in cultivating possession of the appellant. It is also not clear for how much period of a year the area in question remained in submergence. Certain documents have been filed by the appellant in this Court in the form of correspondence showing that certain survey numbers in various villages came under submergence, which was required to be acquired. The claim of damages would depend upon the factum whether the land has come under submergence in the year 1991 for which adequate directions have been issued by the High Court to the Collector. [Para 15] [12F-H]
7. In these circumstances, the Collector is directed to examine whether the area had come under submergence and shall determine the quantum of damages to be paid from 1991 till the date of notification under Section 4. In case the area has come in submergence, then the appellant shall be entitled to the interest under Section 34 from the date of notification under Section 4 till award also. [Para 16] [33-B-D]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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