Kumar Jain & Anr Vs. State of U.P.Thr.Collector & Anr  Insc 12 (5 January
Dr.Ar.Lakshmanan & Altamas Kabir (Arising out of Slp(C) No.2502/2006)
Dutta, learned senior counsel appearing on behalf of the appellants and Mr.Rakesh
Uttamchandra Upadhyay, learned counsel appearing on behalf of the respondent
No.2 (Agra Development Authority).
appeal is directed against the final judgment and order dt.20.10.2005 passed by
the High Court of Judicature at Allahabad in Civil Misc.Writ Petition No.15903/2002 whereby the High Court has
dismissed the Writ Petition filed by the present appellants/land owners.
appellants were the owners of land of Khasra No.111A and 112B measuring 7-6 Bighas situated
at Mauza Lakhanpur Tehsil and District Agra. The respondent No.2 without
following the procedure for acquiring the land under the Land Acquisition Act
took forcible possession of land in question on 31.08.2000. It is not in
dispute that respondent No.2 had not resorted to the provisions of Land
Acquisition Act. Being aggrieved by the arbitrary action of respondent No.2,
the appellants filed an Original Civil Suit No.358 of 2000 before the learned
Civil Judge (Junior Division), Agra for injunction to restrain the respondent
No.2 from encroaching and trespassing or taking, in any manner, the possession
of the land, by raising any construction of laying road on the land of the
appellants. The trial court issued notice to the respondent Nos. 1 and 2. After
the service of notice, the Civil Court
passed an order of injunction for maintaining the status quo with respect to
the land in question and the said order was extended from time to time. Since
an interim order was passed, the respondent No.2 gave an undertaking to pay
compensation to the appellants for their land of Khasra Plot No.111 at Mauza Lakhanpur
Tehsil and District Agra and that the said compensation shall be paid within a
period of two months from the date of the said undertaking i.e. 31.08.2000.
This undertaking was filed before the Vth Addl.Civil Judge, Junior Division, Agra in Suit No.358 of 2000 which is marked as Annexure
P-5 in the SLP paperbook. The Vth Addl.Civil Judge, Junior Division, Agra, on the basis of the above undertaking passed an
order on 02.09.2000 disposing of the injunction application on the basis of the
undertaking given by the respondent No.2 to pay compensation to the appellants.
to the second respondent, the amount of compensation comes to Rs.17,84,974.50
which they have calculated @ 225/- per sq.meter. The said amount, admittedly,
as per the undertaking, was not deposited within two months. However, a cheque
for the amount of Rs.17,84,974.50 dt.14.02.2002 drawn on Union Bank of India, Agra was issued to the appellants. However, the appellants
refused to the receive the same since the said amount was not tendered as per
the undertaking. While tendering the Cheque dt.14.02.2002, the respondent No.2
called upon the appellants to convey their consent for withdrawal of Suit
No.358/2000 and also signifying their consent in writing that they will not
prefer any other claim in this regard so that the payment made by the cheque
can be given to them. Thereafter, the money was deposited with the Vth Addl.Civil
Judge, Junior Division, Agra. The amount deposited is still
lying in the said court.
High Court while disposing of the Writ Petition filed by the owners of land
permitted the appellants herein to withdraw the entire amount including
interest, if any, which may have accrued thereon if the same had been kept in
some interest bearing account on furnishing the certified copy of the said
order before the court concerned. The High Court has also observed that insofar
as the claim of the appellants herein regarding interest on delayed payment is
concerned, the same has no basis as the Agra Development Authority (respondent
No.2) had prepared the cheque and offered the same to the appellants herein
within the stipulated period and had deposited the said amount with the Civil Court
in the pending suit.
have carefully perused the Annexures and the judgment rendered by the High
Court and also heard the arguments advanced by learned counsel for the parties.
In our opinion, the findings recorded by the High Court in regard to the claim
of interest by the appellants is absolutely incorrect. Though the Agra
Development Authority (respondent No.2) had agreed to deposit the money within
two months, they had not done so. Admittedly, they had issued a cheque after
one year and five months and when the cheque was refused to be received by the
land owners, they deposited the same in the Civil Court which does not carry any interest. Admittedly, the land
owners have been denied the beneficial use of the money. In our opinion, the
appellants have wrongly deprived of the beneficial use of their money.
Therefore, they are entitled to interest. We, therefore, set aside the order
passed by the High Court and award simple interest at the rate of 18% p.a. The
possession of the land was taken on 31.08.2000. Therefore, the Agra Development
Authority (Respondent No.2) is liable to pay simple interest @ 18% on the sum
of Rs.17,84,974.50 from 31.08.2000 till the date of actual payment. In the
meanwhile, the appellants are at liberty to withdraw the sum of Rs.17,84,974.50
which is in deposit with the Civil Court
without furnishing any security and on production of a copy of this Order. The
said court is directed to refund the said amount to the appellants on
production of copy of Order of this Court.
that the Agra Development Authority (respondent No.2) shall not take any
further time and pay the interest on or before 10.02.2007.
hope and trust that the Agra Development Authority (respondent No.2) shall
strictly and punctually obey this Order.
appeal stands disposed of in the above terms.