9911796707
|
Home
Issues Involved:
1. Excessive rate of compensation awarded for the land. 2. Date from which interest on enhanced compensation should be granted. 3. Appropriate rate of interest on the enhanced compensation. Detailed Analysis: 1. Excessive Rate of Compensation Awarded for the Land: The primary contention was that the compensation rate of Rs. 15 per sq. yard awarded by the Subordinate Judge was excessive, and the rate of Rs. 8 per sq. yard as given in the initial award should have been adopted. The learned Subordinate Judge, after inspecting the acquired site, found that the land was attractive as a house site and had potential for future development. The site abutted two roads and was near the ring road, making it valuable. The valuation was based on comparable sale deeds, notably Ex. A-1, which indicated a rate of Rs. 13-8-0 per sq. yard. The Judge did not rely on Ex. A-3, which showed a rate of Rs. 30 per sq. yard, as it pertained to a shopping locality. The court considered Exs. B-1 and B-2, which were closer in date but found the localities of these sites less desirable. The appellate court found no fundamental error in the trial court's valuation principles and upheld the compensation as just and reasonable. 2. Date from which Interest on Enhanced Compensation Should be Granted: The next issue was whether interest on the enhanced compensation should be awarded from the date of possession (30-11-1950), the date of notification under Section 4(1) of the Act (12-4-1956), or the date of the award (31-3-1958). The court held that interest is payable from the date when the Collector takes possession, irrespective of whether it was under the Act or by private negotiation. The court referenced several precedents, including the Privy Council's decision in Inglewood Pulp Co. v. New Brunswick Electric Power Commission, which supported awarding interest from the date of possession. The court concluded that interest is payable from the date of deprivation of possession, even if it precedes the initiation of acquisition proceedings, based on equitable principles. 3. Appropriate Rate of Interest on the Enhanced Compensation: The final issue was whether the interest rate should be 4% or 6%. Under Section 28 of the Central Act, the stipulated rate is 6%, but the Madras Amendment (Madras Act 12/53) reduced it to 4%. However, the proviso to the amendment stated that for possessions taken before the commencement of the amending Act, the rate of 6% would apply. Since possession in this case was taken on 30-11-1950, the court upheld the 6% interest rate awarded by the lower court. The court also noted that 6% is a just and equitable rate, aligning with the Civil Procedure Code. Conclusion: The court dismissed the appeal, affirming the judgment of the lower court in all respects. The compensation rate of Rs. 15 per sq. yard was deemed just and reasonable, interest on the enhanced compensation was awarded from the date of possession (30-11-1950), and the appropriate interest rate was confirmed as 6%. The appeal was dismissed with costs.
|
