Astekaar
Naganaatha Rao & Ors Vs. The Assistant Commissioner and Land Acquisition Officer
& Ors [1996] INSC 18 (5 January 1996)
Jeevan
Reddy, B.P. (J) Jeevan Reddy, B.P. (J) Majmudar S.B. (J)
CITATION:
1996 SCC (7) 160 JT 1996 (1) 108 1996 SCALE (1)116
ACT:
HEAD NOTE:
WITH CIVIL
APPEAL NO. 1626 OF 1996 [Arising out of SLP [C] No.6975 of 1992]
O R D
E R
Leave
granted.
Around
300 acres of agricultural land situated in Sambre [Belgaum Airport], Balekundri, Mutage were requisitioned in 1942, possession
thereof was taken in 1942 and the court below had put the date on December 31,1942, for the defence purposes, viz.,
establishment of Air Force Station. The notification under Section 4 (1) of the
Land Acquisition Act, 1894 [for short, "the Act"] acquiring these
lands was published on February
24,1983. The Land
Acquisition Officer [LAO] determined the compensation @ Rs.6,000/-per acre. On
reference, the civil Court enhanced the compensation to Rs.70,400/- per acre
adopting the method of hypothetical lay-out. The High Court in the impugned
judgment made in MFA Nos.1821/89 & batch remanded the matters without
upholding the hypothetical lay-out giving reasons in support thereof. [When the
lands are frozen for open sale the hypothetical lay-out is an artificial embellishment
to award higher compensation]. The question would arise: Whether the lands
other than the acquired land, were available for sale in the open market. In
1942, when possession was taken as agricultural land for air field, the lands
could not have been sold in 1942 for building purposes as hypothetical for
lay-out. The High Court was, therefore, right in rejecting the application of
principle of hypothetical lay-out which is but a figment.
In
view of the fact that cases are pending for a long time, we have suggested to
the counsel for the Union of Inidia as well as for the claimants to have a
negotiation for settlement of the amount. We are informed that pursuant to
directions of this Court the parties have settled the amount at Rs.45,000/- per
acre with solatium at 30% and also entitlement of additional amount at 12% per
annum under Section 23[1-A] of the Act, payable from the date of taking
possession. The only point on which the parties could not reach a consensus is
the entitlement to payment of interest.
It is
contended by Shri Javali, the learned senior counsel that from 1942 no amount
as rent has been paid and now stated to have been paid partly a sum for 1975-76
to 1982 and it cannot be considered to be lease amount. In view of the
settlement by the parties that the compensation payable to the appellants is
Rs.45,000/- per acre, the question of determination of the compensation does
not arise.
Consequently,
they are also entitled to the compensation at that rate and solatium at 30% and
also additional amount at 12% under Section 23[1-A] of the Act, as agreed upon
by the parties, from the date of taking possession which the Court has fixed,
viz., December 31,1942. In other words, the claimants would be entitled to the
additional amount from January
1,1943 till the date
of publication of notification under Section 4[1]. The question that arises for
consideration is from what date the appellants are entitled to interest. The
additional affidavit filed in this Court would show that the Tehsildar had directed
the Union of India payment of rent to the owners of the land and to send the
same for the period from 1975-76 to 1981-82. In other words, upto December 31,1982, he directed a sum of
Rs.2,60,683.98 to be sent. Accordingly, a demand draft dated January 2,1984 was sent to the Tehsildar. For the
earlier period, no record was available in their office. Therefore, no
direction for payment for the said period was given. We agree that it would be
difficult to decide whether payment of rent was paid for the earlier period. It
would appear that the Tehsildar deducted Rs.1,99,815.07 towards land revenue
and a sum of Rs.46,174.05 was paid to the claimants towards rent. That
appropriation appears to be obviously incorrect. They could not deduct the land
revenue from the amount payable to the appellants as rent. Consequently, the
respondents are liable to pay the rent payable to the tune of Rs.2,60,683.98
for the above period. The Tehsildar shall accordingly make over the payment.
Out of total amount, it is an admitted case that Rs.46,17,405/- has already
been paid to the respective persons. Giving credit to the amount already
received, the balance amount shall be paid to the land owners.
Since
notification under Section 4(1) of the Land Acquisition was published on February 24, 1983, the appellants are entitled to
interest @ 9% for one year from that date and on expiry thereof, they are
entitled to the payment of 15% from 25th February 1984 till the date of deposit.
The
appeals, accordingly, are allowed as indicated above. No costs. The respondent
are directed to pay the amount within a period of six months from the date of
the receipt of this Order.
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