High Court of KeralaSingle JudgeWrit petition allowed; the court directed recal...

SANKARAN v. THE LAND ACQUISITION OFFICER & SPECIAL TAHSILDAR

Case / Petition Number:W.P.(C) No.11836/2022

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • T. R. Ravi
Judgment Date
2023-05-22
Court Decision / Holding
Writ petition allowed. The court directed the 1st respondent to recalculate the interest payable on the compensation awarded in accordance with law and to pass a fresh award at the earliest, within two months of receiving a certified copy of the judgment. Any additional amount determined should be paid promptly. If the petitioner files an application challenging insufficiency within one month, it shall be treated as timely, and necessary action shall be taken.
Final Disposition
Writ petition allowed; the court directed recalculation of interest and a fresh award within two months; payment of any additional amount to be made thereafter; timely challenge of insufficiency to be treated as timely.

Parties to the Case

Appellants / Petitioners

  • SANKARAN AGED 74 YEARS, S/O.KUNJAN, CHETTIKUNNEL, MANAKKAD P.O., THALAMATTOM, THODUPUZHA

Respondents

  • The Land Acquisition Officer & Special Tahsildar (LA) Office of Special Tahsildar, Mini Civil Station, Thodupuzha P.O., Idukki - 685 584
  • The District Collector, Idukki (The Land Acquisition, Rehabilitation and Resettlement Authority Notified by the Government of Kerala) Sri. Bimal K. Nath, Sr. Govt. Pleader

Legal Representation & Advocates

Counsels for Petitioners

  • • S. Ananthakrishnan

Counsels for Respondents

  • • Sri. Bimal K. Nath, Sr. Govt. Pleader

Case Synopsis & Summary

The petition concerns Sankaran, owner of a small land parcel measuring 0.0236 hectares in Sy.No.829/5-9, Manakkad Village, acquired by the Government for the Papputy-Vengalloor road under the Land Acquisition Act, 1894. An award (Ext. P1) was passed and possession was taken on 20.11.2015. After the 2013 Act came into force (1.1.2014), Section 24(1) made the 2013 Act applicable where no award had been passed under the old Act; an accompanying Section 18 reference had been made since the petitioner was unsatisfied with compensation. The Sub Court, Thodupuzha, by Ext. P3 (26.08.2016), held the award to be a nullity and directed action by the 1st respondent. No progress followed, prompting this writ petition seeking determination and payment of compensation for the land value and improvements. The 1st respondent counters that a supplementary award under the 2013 Act was passed and Rs.1,65,784 was deposited on 16.02.2022; it asserts that the petitioner did not validly pursue remedies under Section 64 of the 2013 Act and that a detailed valuation (re-determined in 2019) was approved by the District Collector. The petitioner contends for interest on the supplementary award from 20.11.2015 to 16.02.2022, relying on Satinder Singh v. Umrao Singh and Sections 34 (1894 Act) and 80 (2013 Act). The Government contends there is no statutory provision for such interest. The Court ultimately allows the petition, directing the 1st respondent to rework the interest payable on compensation in light of law and to pass a fresh award within two months, with payment of any additional amount; an application challenging insufficiency, if filed within one month, will be treated as timely.

Provisions of Law Cited

Section 4(1) of the Land Acquisition Act, 1894Section 24(1) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013Section 18 of the 1894 ActSection 34 of the 1894 ActSection 80 of the 2013 Act

Legal Doctrines & Maxims

  • Satinder Singh v. Umrao Singh (AIR 1961 SC 908) - principle on payment of interest on compensation
  • Principle that the right to interest on compensation survives the transition to a subsequent compensation regime and cannot be defeated merely by enactment of a new Act

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that, despite the award under the old Act and a later supplementary award under the 2013 Act, he is entitled to interest on the enhanced compensation from the date of dispossession (20.11.2015) until payment, arguing that the general rule recognized in Satinder Singh v. Umrao Singh applies and that Sections 34 of the 1894 Act and 80 of the 2013 Act support interest. He asserts that mere passage of a new statute cannot extinguish existing rights to interest for the deprivation period, and seeks a fresh determination of interest and a supplemental award.

Contentions of Respondents

The Government pleader contends there is no express provision for interest on the supplementary award. It argues that the 2013 Act governs compensation where applicable, and while a supplementary award was issued, the old award’s framework was not re-opened to grant retroactive interest. The respondents maintain that any entitlement to interest should be exercised through statutory provisions and that the action taken thus far should be deemed sufficient; they dispute the basis for further interest from 2015 to 2022.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Satinder Singh v. Umrao SinghAIR 1961 SC 908PositiveCited to support the proposition that the dispossessing landowner retains a right to be compensated with interest, a principle the petitioner invokes in challenging the sufficiency of the supplementary award.

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Extracted Judgment Text

Exact text extracted from official judgment records.

W.P.(C) No.11836/2022 1 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE T.R.RAVI** **MONDAY, THE 22ND DAY OF MAY 2023 / 1ST JYAISHTA, 1945** **WP(C) NO. 11836 OF 2022** ## **PETITIONER:** SANKARAN AGED 74 YEARS, S/O.KUNJAN, CHETTIKUNNEL, MANAKKAD P.O., THALAMATTOM, THODUPUZHA. BY ADV S.ANANTHAKRISHNAN ## **RESPONDENTS:** 1 THE LAND ACQUISITION OFFICER & SPECIAL TAHSILDAR (LA) OFFICE OF SPECIAL TAHSILDAR, MINI CIVIL STATION, THODUPUZHA P.O., IDUKKI - 685 584. 2 THE DISTRICT COLLECTOR, IDUKKI (THE LAND ACQUISITION, REHABILITATION AND RESETTLEMENT AUTHORITY NOTIFIED BY THE GOVERNMENT OF KERALA) SRI.BIMAL K.NATH, SR.GOVT.PLEADER THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09.11.2022, THE COURT ON 22.5.2023 DELIVERED THE FOLLOWING: W.P.(C) No.11836/2022 2 **T.R. RAVI, J. -------------------------------------------W.P.(C)No.11836 of 2022 -------------------------------------------Dated this the 22nd day of May, 2023** ## **JUDGMENT** The petitioner’s property in Sy.No.829/5-9 in Manakkad Village, having an extent of 0.0236 hectares, along with improvements thereon, was acquired by the Government for construction of the Papputy-Vengalloor road, pursuant to the notification published under Section 4(1) of the Land Acquisition Act,1894. Ext.P1 is the award passed by the 1[st] respondent. Possession was taken as per mahazar dated 20.11.2015. Ext.P2 communication dated 30.12.2019 was issued by 1[st] respondent showing the value of the improvements. The passing of the award as well as taking of possession was much after the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as the 2013 Act) which came into force on 1.1.2014. As per Section 24(1) of the 2013 Act, in cases where land was acquired under the Land Acquisition Act, 1894 (hereinafter referred to as the 1894 Act) and no award has been passed, all the provisions relating to compensation under the 2013 Act will apply. Ext.P1 W.P.(C) No.11836/2022 3 award was passed under the old Act and a reference under Section 18 of the 1894 Act was also made, since the petitioner was not satisfied with the compensation granted. The Sub Court, Thodupuzha, by Ext.P3 order dated 26.08.2016 found that the award is a nullity and returned the reference to the 1[st] respondent for necessary action. Since no action followed, the petitioner has approached this Court praying that the 2[nd] respondent may be directed to determine and award the compensation for the land value and the improvements. 2. The 1[st] respondent has filed a counter affidavit. It is stated that a supplementary award was passed in the case of the petitioner under the 2013 Act and an amount of Rs.1,65,784/was credited to the petitioner’s account on 16.02.2022. It is further submitted that the petitioner had not made any valid request under section 64 of the 2013 Act, after receiving the amount as per the supplementary award. Subsequently, on 13.6.222, an additional counter affidavit was filed stating that market value was re-determined and approved on 28.01.2019 as per proceedings No.C7-2164/99 and that the detailed valuation statement was approved on 03.08.2019 by the District Collector. The requisitioning authority deposited the necessary amount to W.P.(C) No.11836/2022 4 the office head of account on 24.12.2021, due to covid pandemic. The Supplementary draft award is stated to have been passed by the District Collector on 25.10.2022 and the award amount remitted to the account of the petitioner on 09.02.2022. The dates stated in the additional counter affidavit do not appear to be correct. 3. The petitioner has filed a reply affidavit and a petition seeking to produce additional document Ext.P5. Ext.P5 is the supplementary award passed on 3.2.2022. It is contended that Ext.P5 does not consider the interest payable on the additional compensation for the period from 20.11.2015 to 16.02.2022. The petitioner claims that he is entitled to 9% interest on the additional amount paid for the one year of taking possession and 15% interest till the date of payment. 4. Heard the counsel for the petitioner and the Government Pleader. There is no serious dispute regarding the facts. Admittedly the award was initially passed under the 1894 Act and later a supplementary award was passed after determining the compensation under the 2013 Act. The payment as per the supplementary award has also been made. The only question is whether the petitioner is entitled to interest on the W.P.(C) No.11836/2022 5 compensation determined as per the supplementary award, from 2015 to 2022. The Government pleader submits that there is no provision for the grant of interest. The petitioner places reliance on the judgment of the Hon’ble Supreme Court in **Satinder Singh v. Umrao Singh [AIR 1961 SC 908]** , to submit that the general rule in the matter of payment of interest on the compensation for the period between deprivation of possession and payment of compensation cannot be inferred to have been excluded merely because a subsequent Act regarding acquisition and payment of compensation has come into force. Going by the law laid down by the Hon’ble Supreme Court, even in the absence of a specific provision regarding payment of interest, the right of a person who is dispossessed of land, is not taken away. Apart from that, Section 34 of the 1894 Act provides for payment of interest as claimed by the petitioner with respect to the additional compensation awarded under the supplementary award. Section 80 of the 2013 Act also contains a similar provision. The mere fact that the acquisition was initiated under the old Act and was continued under the new act with respect to the payment of compensation, the right of the petitioner to receive interest on the amount awarded as compensation, for the period from W.P.(C) No.11836/2022 6 dispossession till the date of payment of compensation cannot be taken away. 5. The supplementary award was passed and amount credited to the petitioner's account only on 16.02.2022. The petitioner had filed the writ petition on 01.04.2022 and it was only pending the writ petition that the petitioner got information regarding passing of the supplementary award for the additional amount. The dispute regarding the payment of interest on the additional amount, which should also have been part of the award, has been finalised only by these proceedings. In the above circumstances, the right of the petitioner to challenge the award regarding the sufficiency of the amount granted cannot be taken away. 6. The writ petition is allowed, directing the 1[st] respondent to rework the interest payable on the compensation awarded to the petitioner, in accordance with law and pass a fresh award in that respect, at the earliest, at any rate within two months from the date of receipt of a certified copy of this judgment. Needless to say that the amount thus additionally awarded shall be paid to the petitioner soon after such determination. If the petitioner prefers an application regarding W.P.(C) No.11836/2022 7 the insufficiency of the amount awarded within one month from today, the same shall be treated as an application filed within time, by the competent authority and necessary action shall be taken thereon. Sd/- **T.R.RAVI JUDGE** dsn W.P.(C) No.11836/2022 8 ## **APPENDIX OF WP(C) 11836/2022** PETITIONER'S EXHIBITS Exhibit P1 TRUE COPY OF THE AWARD NO.50/2015 PASSED BY THE 1ST RESPONDENT. Exhibit P2 TRUE COPY OF THE COMMUNICATION DT.30/12/2019 ISSUED BY THE 1ST RESPONDENT. Exhibit P3 TRUE COPY OF THE ORDER IN L.A.R.NO.38/2016 DT. 26/8/2016. Exhibit P4 TRUE COPY OF THE REQUEST DT. 10/2/2022 SUBMITTED BY THE PETITIONER TO THE 1ST RESPONDENT. Exhibit P5 TRUE COPY OF THE SUPPLEMENTARY AWARD DATED 03.02.2022