High CourtDivision BenchAppeals allowed

Ratti Ram v. Union of India and Another

Case / Petition Number:Civil Appeal No. 11177 of 2011; Civil Appeal No. 11178 of 2011
Neutral Citation:[2016] 2 S.C.R. 989

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Kurian, J.
  • Rohinton Fali Nariman, J.
Judgment Date
2016-02-17
Court Decision / Holding
Appeals allowed. It is held that the appellant shall be entitled to interest on the compensation as per Section 28 read with Section 23(1A) in respect of the land acquired, at the fixed value of Rs. 76,550 per Bigha for the period of stay (24.04.1997 to 27.09.2001). The Delhi Development Authority is directed to compute the amounts and deposit them before the Executing Court within four weeks, for disbursement in accordance with law. There shall be no order as to costs.
Final Disposition
Appeals allowed

Parties to the Case

Appellants / Petitioners

  • Ratti Ram

Respondents

  • Union of India
  • Delhi Development Authority

Legal Representation & Advocates

Counsels for Petitioners

  • • Ms. Shobha
  • • Inder Singh
  • • Anksha Kaushik
  • • Shrey Dambhare

Counsels for Respondents

  • • Vishnu B. Saharya
  • • Viresh B. Saharya

Case Synopsis & Summary

Ratti Ram v. Union of India and Another concerns a land-acquisition dispute where the appellant-landowner challenges denial of statutory benefits under the Land Acquisition Act, 1894 after the Court fixed land value at Rs. 76,550 per bigha. The Supreme Court recalls its 2004 decision in Delhi Development Authority v. Bali Ram Sharma, which held that once the Court fixes the land value, the appellant is entitled to statutory benefits under Section 28 read with Section 23(1A). The appellants contended that they should receive interest on the enhanced compensation for the period during which reference proceedings remained stayed, arguing that such stay was caused by the reference process initiated at their instance and should not defeat statutory relief. The respondents argued that there is no exclusion of any period under Section 28 and that liability to pay interest begins from dispossession; delays caused by the appellant should not burden the State. The Court agrees that statutory benefits cannot be denied for the tenure of the stay, reiterates that the only relevant factor is the date of dispossession, and holds that interest on the excess compensation is pay-able from the dispossession date, for the fixed land value, under Section 28 read with Section 23(1A). The Appeals are allowed, directing the Delhi Development Authority to compute and deposit the sums with the executing court in four weeks, with no costs.

Provisions of Law Cited

Land Acquisition Act, 1894 - s.28; s.23(1A)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that they are entitled to interest on the enhanced compensation under Section 28 read with Section 23(1A) for the entire period of the reference proceedings, including the stay, since fixation of land value by the Court should carry statutory benefits without exclusion of any period. They asserted that delays caused by the reference proceedings were not attributable to the State and cannot be used to deny statutory relief. They relied on the Court’s earlier decision in Delhi Development Authority v. Bali Ram Sharma to support the principle that the fixed land value governs entitlement to such benefits.

Contentions of Respondents

The respondents contended that there is no exclusion of any period under Section 28; liability to pay interest starts from dispossession; delays in disposal of reference proceedings, caused by the appellant, cannot burden the State; the Court should apply the statutory framework, including the prescribed rates (9% then 15% in certain circumstances) for interest on excess compensation, and not penalize the State for delay caused by the appellant.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Delhi Development Authority v. Bali Ram Sharma and Other(2004) 6 SCC 533PositiveCited as the controlling authority for fixation of land value and the entitlement to statutory benefits under Section 28 when the Court fixes the land value.

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Extracted Judgment Text

Exact text extracted from official judgment records.

[2016] 2 S.C.R. 989 ## RATTI RAM A v. ## UNION OF INDIA AND ANOTHER (Civil Appeal No. 11177 of2011) ## FEBRUARY 17,2016 B > [KURIAN JOSEPH AND ROHINTON FALi NARIMAN, JJ.] _Land Acquisilion Ac/, 1894_ - _s.28_ - _lnlerest on enhanced compensa/ion_ - _Statutory benefils u/s. 28_ - _Gran/ of_ - _Land acquisilion proceedings_ - _Award passed by lhe Collector_ - _Denial of statu/ory benefits available under the Act lo the appel/anl-land owner, in respect of the value of land fixed_ - _Ground for denial was that the proceeding initialed al /he inslance of the appellanl remained stayed before the Reference Court_ - _Held: These are not relevant considera/ions or factors for the purpose of grant of stalutory benefits_ - _There is no exclusion of any period contemplated on whatever account uls. 28_ - _Only reference is to the date of dispossession_ - _Liability to pay interesl starts to run from /hat date_ - _Thus, the appellant shall be entitled to interest for the compensation, as per s.28 r!w. s.23(1AJ in respecl of 1he land acquired from him, on value at the rate of Rs. 76,5501- per Bigha for the period of slay also._ c D E _Delhi Development Authority_ v. _Bali Ram Sharma and 01her_ (2004) 6 SCC 533 - referred to. ## Case Law Reference c2004) 6 sec 533 referred to Para 1 F CIVIL APPELLATE JURISDICTION: Civil Appeal No. 11177 of201 l. ## WITH Civil Appeal No. 11178 of201 l G From the Judgment and Order dated 27.07.2011 in RFA No. 174 of2002 passed by the High Court of Delhi at New Delhi. Ms. Shobha, Inder Singh .. \kanksha Kaushik, Shrey Dambhare, Advs. for the Appellants. H 989 990. SUPREME COURT REPORTS [2016] 2 S.C.R. A Vishnu B. Saharya, Viresh B. Saharya (For Mis Saharya & Co.) Advs. for the Respondents. The Judgment of the Court was delivered by **KURIAN, J.** 1. In land acquisition proceedings pertaining to Award No. 79 of 1982-1983 in respect of the land belonging to the B appellants, this Court finally fixed the land value at the rate of Rs. 76, _5501-_ per Bigha, in the Judgment dated 03.08.2004 in Delhi Development Authority v. Bali Ra;n Sharma and Other'. 2. Once the land value is fixed by the Court, it refers to the value of the land as per the Award passed by the Collector. That should carry C all eligible statutory benefits. It appears that in the case before us,. statutory benefits have been denied for a short period on the ground that the proceedings initiated at the instance of the appellants, remained stayed before the Reference Court. To quote from Paragraph-4 of the impugned judgment: > D _"Learned Counsel for the appellant, however, had submitted that the learned trial court was not justified in declining the relief of interest on the enhanced compensation for the period during which the reference proceedings had remained stayed sine die and that relief at least should be given by this Court._ E _However, this prayer of the appellant cannot be accepted since he himself had got his reference proceedings before the trial Court stayed sine die and the Government cannot be burdened with the liability of interest for the delay in disposal of the reference proceedings caused by the appellant himself"_ . F 3. We fail to understand how the appellants could be denied the statutory benefits available under the Land Acquisition Act, 1894 (hereinafter referred.to as "the Act") in respect of the value of this land fixed, merely because there was a period of stay operating, may be in a proceeding at the instance of the appellants. Those are not relevant considerations or factors at all for the purpose of grant of statutory G benefits available to a person, whose land has been acquired in terms of Section 28 of the Act. Section 28 reads as under: _"28. Collector may be directed to pay interest on excess· compensation. If the sum which, in the opinion of the Court, the Collector ought to have awarded as compensation is in_ **H** 1 t2004) 6 sec 533 RATTI RAM v. UNION OF INDIA AND ANOTHER 991 _excess of the suri1 which the Collector did award as compensation, the award of the Court may direct that the Collector shall pay interest on such excess at the rate of nine per centum per annum from the date on which he took possessio.n of the land to the date of payment of such excess into Court:_ _Provided that the award of the Court may also direct that where such excess or any part thereof is paid into Court after the date of expiry of a period of one year from the date on which possession_ is _taken, interest at the rate of fifteen per cenf.t!.l?!.Per annum shall .be payable from the date of expiry of the ·said period of one yearJJn the· amount of such excess or part thereof which has not been paid into Court before the date of such expiry._ " 4. There is no exclusion of any period contemplated on whatever account under Section 28 of the Act. The only reference is to the date cif dispossession. Liability to pay interest starts to run from that date. Therefore, these appeals are allowed. It is directed that the appellants shall be entitled to interest for the compensation, as per Section 28 r/w Section 23(1A), in respect of the land acquired from the appellants, on value at the rate of Rs. 76, 550/- per _Bigha_ for the period of stay also, i.e., from 24.04.1997 to 27.09.2001. A B C D E 5. We direct the Delhi Development Authority to compute the amounts as above and deposit the same before the Executing Court within a period of four weeks from today which shall disburse the amounts to the appellants in accordance with faw. 6. there shall be no order as· to costs. Nidhi Jain_ Appeals allowed. F