Waman Patil & Ors Vs. Municipal Corporation of Greater Mumbai & Ors
 Insc 201 (18
Chatterjee & Harjit Singh Bedi
O R D
E R CIVIL APPEAL NO 1398 OF 2008 (Arising out of SLP[C] No.5670 of 2007)
appeal is directed against an interim order dated 22nd of December, 2006 passed
by a Division Bench of the High Court of Judicature at Bombay, (Ordinary Original Civil
Jurisdiction) in Notice of Motion No.380 of 2006 arising out of Writ Petition
No.11 of 2005.
pending writ application, a notice of motion was filed by the present
appellants, inter alia, praying against others for deposit of additional sums
in terms of an order of the Bombay High Court dated 29th of November, 2005 and
also for an early hearing of the writ petition and further to direct the
release of the amount deposited in favour of the appellants. It is not in
dispute that in terms of the calculation sheet, the municipal corporation of
Greater Bombay had already deposited in the High Court a sum of Rs.
17,23,29,933/-. The High Court by the impugned order had allowed the appellants
to withdraw the amount deposited on the condition that the appellants shall
furnish a bank guarantee in respect of the said sum on a prima facie finding
that the Municipal corporation had enjoyed the possession of the acquired land
for more than 40 years without making payment of compensation. It is this
order, which is now under challenge in the present appeal.
have heard Mr. Paramjit Singh Patwalia, learned senior counsel appearing for
the appellants and Mr.Pallav Shishodia, learned counsel appearing for the
respondents. Mr.Patwalia contended that the High Court had committed an error
in imposing a condition on the appellants to furnish bank guarantee for
withdrawal of the compensated amount when the respondents enjoyed the
possession of the acquired land for more than 40 years without making payment
to Mr.Patwalia, since the appellants had no source of income nor had any property
to secure the withdrawal of the amount or to furnish bank guarantee, it would
be a mere impossibility to withdraw the compensated amount and accordingly, in
the facts and circumstances of the case, the condition imposed on the
appellants should be withdrawn. This submission of Mr.Patwalia was hotly
contested by Mr.Pallav Shishodia, learned counsel appearing for the respondents
who contended that the appellants have already been paid in excess under the
terms and conditions of an agreement of the year 1978 and if now they are
permitted to withdraw the amount already deposited and lying in the court and
in view of the submission of Mr.Patwalia that the appellants have no source of
income nor have any property to secure the amount that would be withdrawn, it
would be a mere impossibility to recover the amount from the appellants, if
allowed to be withdrawn, in the event the writ petition succeeds in which the
award in question has been challenged.
Having heard the learned counsel for the parties and after considering the
materials on record and considering the submissions made on behalf of the
parties, we dispose of this appeal with the following directions:
The amount deposited in the High Court shall be deposited in fixed deposit of
any nationalized bank in the name of the appellants within a period of one
month from this date initially for a period of six months which shall be
renewed from time to time until further orders of the High Court or till the
disposal of the writ petition whichever is earlier.
The interest that would accrue on the aforesaid sum shall be permitted to be
withdrawn without furnishing any security or without furnishing bank guarantee
by the appellants but the principal amount to be invested as a fixed deposit in
the Bank shall not be withdrawn by the appellants till the disposal of the writ
petition or until further orders of the High Court.
is not in dispute that the amount awarded has already been deposited in the
High Court, which is now lying. We are also informed that the amount has
already been invested by the High Court. If the amount has already been
deposited in a Fixed Deposit and any interest has already been accrued, the
High Court is directed to release the interest amount out of the amount already
deposited as a Fixed Deposit in favour of the appellant.
Accordingly, we modify the interim order of the High court in the above manner.
The appeal is thus disposed of. No order as to costs.