2009 (3) TMI 1021 - SC - Indian Laws

Summary

Issues involved: Challenge to judgment allowing writ petitions for payment of statutory interest u/s 34 of Land Acquisition Act, 1894.

Details of the Judgment:

1. The appeals challenged a Delhi High Court judgment allowing writ petitions under Article 226 of the Constitution for payment of statutory interest u/s 34 of the Land Acquisition Act, 1894. The High Court directed the appellant to pay interest to claimants as per Section 34 of the Act and costs of Rs. 10,000.

2. The appellant contended that the High Court's direction contradicted a Full Bench judgment of the Delhi High Court. The respondents supported the judgment, citing public accountability highlighted by the High Court.

3. The Land Acquisition Act provides detailed procedures for land acquisition and compensation payment, including interest rates u/s 34. Section 28 also addresses interest awards by the Court on excess compensation.

4. The Supreme Court noted that Sections 28 and 34 are the only provisions dealing with interest payment to landowners. Previous judgments emphasized that courts cannot award interest beyond statutory rates prescribed by the Act.

5. The Court reiterated that the Act is a complete code governing interest payment, excluding equitable considerations. Courts have no authority to award interest beyond what is specified in Sections 28 and 34.

6. The Court emphasized that under Article 226 of the Constitution, directions for interest payment must align with the provisions of Section 28 or 34. Consequently, the appeals were allowed, and the High Court judgments were set aside.