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TMI Blog2017 (12) TMI 1887X X X X Extracts X X X X X X X X Extracts X X X X ..... ed a Master Plan which came into force on 21.3.1995, formulated scheme Nos. 124(A) and (B) Under Section 50(1) of the Adhiniyam of 1973 and decided to acquire land for the purpose of constructing Ring Road and Link Road on the outskirts of Indore city. The ring road has been fully constructed. The land was acquired for the purpose of constructing Link Road, for joining the major road to the Ring Road under Scheme 124(B). Possession of the land is stated to be with the encroachers and not with the landowners. The compensation was deposited by the IDA with the Land Acquisition Collector. The landowners were informed to collect it but they had refused and did not receive the compensation. The IDA published the schemes as per the provisions of the Adhiniyam of 1973. On 6.2.1991, a prayer was made to the Collector to acquire the land and on 2.3.1994 compensation was deposited with the Land Acquisition Collector. Notification Under Section 4 was issued on 23.12.1994. Section 17(1) was also invoked. Enquiry Under Section 5A was dispensed with. Declaration Under Section 6 was published on 17.3.1995 under the Land Acquisition Act, 1894 (hereinafter referred to as "the Act of 1894"). Respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposit Under Section 31. The only liability was of higher interest of 9% for the first year from the date of taking possession and thereafter to pay the interest at 15%. When the consequence of lapse of land acquisition proceedings was not provided in the Act of 1894, in case of failure to deposit Under Section 31(2), the provision of Section 34 is attracted regarding payment of interest. Thus it could not be said that due to failure to deposit or in the case of refusal, proceedings would lapse. Section 24(2) would apply to a case where compensation has not been tendered to the landowners and has not been deposited with the Land Acquisition Collector for payment. In other words, no arrangement has been made by the acquisitioning authority or the beneficiary for payment of compensation. The provisions of Section 24 would not be applicable in case there is refusal to accept the compensation and there was litigation by the landowner or on his behalf by successor-in-interest, to quash the land acquisition proceedings in such a case for their own wrong and for non-acceptance of compensation, it could not be claimed by such incumbents when they have themselves obtained interim orders fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any land, make any arrangement with a person having a limited interest in such land, either by the grant of other lands in exchange, the remission of land-revenue on other lands held under the same title, or in such other way as may be equitable having regard to the interests of the parties concerned. (4) Nothing in the last foregoing Sub-section shall be construed to interfere with or limit the power of the Collector to enter into any arrangement with any person interested in the land and competent to contract in respect thereof. 34. Payment of interest.--When the amount of such compensation is not paid or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of [nine per centum] per annum from the time of so taking possession until it shall have been so paid or deposited: [Provided that if such compensation or any part thereof is not paid or deposited within a period of one year from the date on which possession is taken, interest at the rate of fifteen per centum per annum shall be payable from the date or expiry of the said period of one year on the amount of compensation or part thereof which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the expression used 'compensation has not been paid' in Section 24(2) does not relate to deposit of the amount as envisaged Under Section 31(2) of the Act of 1894. The proviso to Sub-section (2) of Section 24 uses the expression "where an award has been made and compensation in respect of a majority of land holdings has not been deposited in the account of the beneficiaries". Compensation in respect of a majority of land holdings is not deposited in the account of beneficiaries, is not applicable as it was not the case set up and that the claim was not made under the proviso to Sub-section (2) of Section 24. There is vast difference between the provision of Section 24(2) and its proviso. The expressions payment and deposit are used with different objectives. They have to be given the proper meanings which aspect has not been considered in any of the decisions relied upon by the High Court including Pune Municipal Corporation (supra). 9. It was also submitted by learned senior Counsel on behalf of the IDA that in case of failure to deposit the amount before the Reference Court where the "reference would be submitted", the only consequence to follow would be higher rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) thereof is not that of the acquisition proceedings becoming invalid. The Act of 1894 never intended that the consequence of non-compliance of said provision of the Act, proceedings would become invalid. Reliance has been placed on Hissar Improvement Trust v. Rukmani Devi and Anr. (1990) (Supp) SCC 806 in which this Court has laid down thus: 5. It cannot be gainsaid that interest is due and payable to the landowner in the event of the compensation not being paid or deposited in time in Court. Before taking possession of the land, the Collector has to pay or deposit the amount awarded, as stated in Section 31, failing which he is liable to pay interest as provided in Section 34. 7. We make it clear that insofar as the landowner is concerned, his right to be compensated is enforceable against the State. It is the liability of the Collector in terms of the relevant provisions to pay the amount awarded, together with interest in the event of the amount not being paid in time. The liability of the Appellant-Trust arising under its agreement with the Government for payment in respect of the property acquired is a matter on which we express no view. 13. Reliance has also be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the compensation Under Section 28 of the Act. Similarly, in an appeal Under Section 54 of the Act if the appellate court further increases the compensation, then again similar obligation Under Section 28 arises. 4. In the light of the operation of the respective provisions of Sections 34 and 28 of the Act, it would be difficult to direct payment of interest. In fact, Section 23(1-A) is set off for loss in cases of delayed awards to compensate the person entitled to receive compensation; otherwise a person who is responsible for the delay in disposal of the acquisition proceedings will be paid premium for dilatory tactics. It is stated by the learned Counsel for the Respondents that the amount of interest was also calculated and total amount was deposited in the account of the Appellants by the Land Acquisition Officer after passing the award, i.e., on November 15, 1976 in a sum of Rs. 20,48,615. Under these circumstances, the liability to pay interest would arise when possession of the acquired land was taken and the amount was not deposited. In view of the fact that compensation was deposited as soon as the award was passed, we do not think that it is a case for us to interfere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, or interest in it, are transferred to the compensation money. 18. It was also urged that the object of such deposit is to prevent unnecessary prolongation of the proceedings and accumulation of Collector's liability for interest. When a party willfully refuses to receive payment by depositing the money in the court, the liability for interest will cease. It was also urged that Section 32 does not intend to give the advantage of one's own act or the act of the court. 19. It was also urged that this Court is also bound to prevent the abuse of process of law. The cases which have been concluded are being revived. In spite of not accepting the compensation deliberately and statements are made in the court that they do not want to receive the compensation at any cost and they are agitating the matter time and again after having lost the matters and when proceedings are kept pending by interim orders by filing successive petitions, the provisions of Section 24 cannot be invoked by such landowners. 20. There is already a reference made as to the applicability of Section 24 in SLP [C] No. 10742/2008--Yogesh Neema and Ors. v. State of M.P. and Ors. vide order dated 12.1.2016. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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