D-BLOCK ASHOK NAGAR (SAHIBABAD) PLOT HOLDERS ASSOCIATION (REGD.)versusSTATE OF U.P. AND ORS.
- Citation
- 1997 INSC 446
- Decided
- 29 April 1997
- Disposal
- Leave Granted & Allowed
Holding
The appeal is allowed; claimants are entitled to solatium and interest as per the 1984 amendment, with interest accruing from the date of possession, and the balance amount must be paid accordingly.
Summary
The appellant Plot Holders Association challenged the award made under the Land Acquisition Act, 1894 for a large parcel of land in Sahibabad, contending that the authorities were not liable to pay solatium and interest under the 1984 amendment. The Special Land Acquisition Officer had already granted compensation, solatium and interest, and the award had become final. The Supreme Court examined whether the association was entitled to the solatium at 15% and interest at 6% as prescribed by the U.P. Awas Evam Vikas Adhiniyam, and how the balance amount and interest should be calculated. It held that the claimants are indeed entitled to the solatium and interest, and that interest accrues only from the date of actual possession of the land after the award. The Court directed the Land Acquisition Officer to determine the exact area of land taken into possession and to pay the calculated interest within six months of the judgment. Consequently, the appeal was allowed and the respondents were ordered to pay the balance amount and interest.
Issues considered
- Whether the award under the Land Acquisition Act, 1894, after becoming final, obliges the authorities to pay solatium under the 1984 Amendment Act.
- Whether interest is payable on the compensation and, if so, from what date it accrues.
- How the balance amount payable to the claimants should be determined.
Legislation cited
Subjects
Judgment
A D-BLOCK ASHOK NAGAR (SAHIBABAD)
PLOT HOLDERS ASSOCIATION (REGD.)
v.
STATE OF U.P. AND ORS.
APRIL 29, 1997
B
[K. RAMASWAMY, S. SAGHIR AHMAD AND·
G.B. PATTANAIK, JJ.)
Land Acquisition Act, 1894 :
c Solatium and interest under Amendment Act of 1984-Entitlement
to-Award having become final, the stand of Awas Evam Vikas Parisad that
they are not liable to pay solatium under the amended Act cannot be
countenanced-Claimants are entitled to the balance amount-For those
claimants whose lands have been taken possession of, interest shall be
D calculated as per the award from the date of taking possession till the date of
deposit.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3571 of
1997.
E From the Judgment and Order dated 6.5.96 of the Allahabad High
Court in C.M.W.P. No. 13550/92.
R.K. Gupta and Sudhir Kr. Gupta for the Appellant.
P.K. Jain and A.K. Goel for the Respondents.
F
The following Order of the Court was delivered :
Leave granted.
G This appeal by special leave arises from the judgment of the Al-
lahabad High Court, made on 6.5.1996 in CMWP No. 13550/92.
Notification under Section 4(1) of the Land Acquisition Act, 1894
(for short, the 'Act') acquiring a large chunk of land was published on June
26, 1982. The Special Land Acquisition Officer had given his award under ·
H Section 11 on February 27, 1989 granting compensation @ Rs. 50 and Rs.
1096
D-BLOCKASHOK NAGAR SAHIBABAD v. STATE 1097
37.50 per sq. yd. It also granted solatium and interest under the Act as A
amended by 1984 Amendment Act. That award was allowed to become
final. The question is : whether the members of the appellant-Association
are entitled to compensation? In view of the fact that the award has already
become final, the stand taken by the Awas Evam Vikas Parishad that they
are not liable to pay solatium under the amended Act and the claimants
are entitled to get solatium at 15% and interest at 6% under the Schedule
B
to the U.P. Awas Evam Vikas Adhiniyam, cannot be countenanced. The
question is : what is the balance amount payable? The Land Acquisition
Officer has filed his counter-affidavit. Therein, he has stated that for the
land admeasuring 1157.895 acres, compensation in a sum of Rs.
52,05,94,187.90 was determined. Out of which Rs. 42,15,00,000 was c
deposited and the balance amount was agreed to be deposited as admitted
by the letter dated December 10, 1992 of the Commissioner, Shri Rajiv
Kumar Singh. The balance amount of Rs. 3,26,22,583.25 is, therefore,
payable to them. The liability to pay interest" arises only when the Land
Acquisition Officer takes possession of the land after the award comes to
D
be made. It is stated on behalf of the Parishad that the possession of an
extent of only 9.2. acres of land alone was delivered and the rest of the
land has not been delivered. In view of the fact that the liability to pay the
interest arises only from the date· of taking possession and as it is claimed
that the entire extent of the land has not been given possession, the Land
Acquisition Officer is directed to determine as to what extent of the area . E
possession of which has been given after the award; for those claimants
whose lands have been taken possession, interest shall be calculated as per
the award from the date of taking possession till date of deposit and
interest shall accordingly be deposited within a period of six months from
the date of the receipt of the judgment.
F
·-- The appeal is accordingly allowed. No costs.
R.P. Appeal allowed.
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