2007 (1) TMI 651 - SC - Indian Laws

Summary

Issues involved:
The issues involved in the judgment are related to land acquisition without following proper procedures, arbitrary possession of land by a development authority, dispute over compensation, and entitlement to interest on delayed payment.

Land Acquisition Procedure:
The appellants, as landowners, filed a suit against the Agra Development Authority for taking possession of their land without following the Land Acquisition Act procedures. The trial court issued an injunction to maintain the status quo, and the authority undertook to pay compensation within two months, but failed to do so. The authority later issued a cheque for compensation, which the appellants refused, leading to the money being deposited in court.

Interest on Delayed Payment:
The High Court initially denied the appellants' claim for interest on delayed payment, stating that the authority had offered the compensation within the stipulated period. However, the Supreme Court disagreed, noting that the authority had not deposited the money within the agreed timeframe. The Court found that the appellants were deprived of the beneficial use of their money and awarded them simple interest at 18% per annum from the date of possession until actual payment.

Judgment and Directions:
The Supreme Court set aside the High Court's order and directed the Agra Development Authority to pay simple interest on the compensation amount. The appellants were allowed to withdraw the deposited sum without providing security. The authority was instructed to pay the interest by a specified date, emphasizing strict compliance. The appeal was disposed of with no costs imposed.