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Issues:
1. Validity of exercising power under Section 17(4) of the Land Acquisition Act. 2. Claim for interest on compensation amount under Section 34 of the Act. Issue 1: Validity of exercising power under Section 17(4) of the Land Acquisition Act: The appeal arose from a judgment of the Allahabad High Court regarding the exercise of power under Section 17(4) of the Land Acquisition Act. The Government had dispensed with the enquiry under Section 5-A and issued a notification under Section 4(1) of the Act. The appellant challenged the urgency for dispensing with the enquiry, but the High Court upheld the Government's decision, stating that the court cannot substitute the Government's satisfaction of urgency. The Court noted that constructions had been completed on the acquired land, rendering the question of urgency moot at that stage. Issue 2: Claim for interest on compensation amount under Section 34 of the Act: The appellant sought interest on the compensation amount, contending that the delay in making the award entitled them to interest at 12% per annum, citing a previous Supreme Court decision. The Court referenced Section 34 of the Act, which obligates the State to pay interest from the date of possession of the land. However, the Court observed that the interest amount had been calculated and deposited in the appellants' account after the award was passed. As the compensation was deposited promptly upon the award, the Court found no grounds to interfere, emphasizing that the liability to pay interest arises only when the compensation is not deposited upon possession of the land. In conclusion, the appeal was dismissed, and no costs were awarded. The judgment clarified the application of Sections 17(4), 34, and 28 of the Land Acquisition Act, emphasizing the obligations of the State regarding compensation and interest payments in land acquisition cases.
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