M/s Sharda Board and Paper Products vs The State of Haryana

L.N. Mittal, J.—Land owner M/s Sharda Board and Paper Products has filed this revision petition under Article 227 of the Constitution of India assailing order dated 30.10.2009 passed by learned Additional District Judge, Rewari. Facts in this case are not disputed as submitted by counsel for the parties. Land of the petitioner was acquired by State of Haryana. Land Acquisition Collector passed award dated 11.11.1997 and also took possession of the acquired land on the same day. However, compensation of the acquired land as awarded by the Collector was paid to the petitioner on 22.7.1998. In the meantime, the compensation amount of acquired land of the petitioner was also not deposited in the Reference Court as required by section 31 of Land Acquisition Act, 1894 (in short, the Act). The petitioner in execution proceedings filed in the Reference Court claimed interest @ 9% per annum on the compensation amount awarded by the Collector with effect from 11.11.1997, the date of taking possession of the acquired land till 22.7.1998, the date of payment of the said amount by the Collector to the petitioner. Said claim of the petitioner has been negatived by the executing court vide impugned order dated 30.10.2009 which is under challenge in this revision petition.

I have heard Learned Counsel for the parties and perused the case file.

According to section 31 of the Act, if any land owner does not turn up to receive the compensation amount as awarded by the Collector then Collector has to deposit the said compensation amount with the Reference Court. Section 34 of the Act stipulates that if compensation amount is not so deposited by the Collector with the court on or before the taking possession of the acquired land, the Collector shall pay awarded compensation amount with interest thereon @ 9% per annum from the date of taking possession till payment or deposit of the compensation amount and if the amount is not so paid or deposited within one year, the rate of interest shall be @ 15% per annum after expiry of one year. In the instant case, compensation amount awarded by the Collector was paid to the petitioner land-owner within one year of taking possession of the acquired land and therefore, in view of section 34 of the Act, the petitioner is entitled to interest @ 9% per annum on the amount awarded by the Collector with effect from 11.11.1997, the date of taking possession of the acquired land till 22.7.1998, the date of payment of said amount to the petitioner. There is no escape from this conclusion on combined reading of sections 31 and 34 of the Act and applying the same to the admitted facts of the case.

In view of judgment of Hon''ble Supreme Court in Hissar Improvement Trust vs. Smt. Rukmani Devi, 1990(2) RRR 589, the executing court has power to recover the aforesaid interest amount from State for payment to the petitioner - land owner.

For the reasons aforesaid, I find that the impugned order of the executing court declining interest to the petitioner for the aforesaid period is patently illegal being contrary to provisions of sections 31 and 34 of the Act and the said order is, therefore, not sustainable. Accordingly, the instant revision petition is allowed. The executing court shall proceed in accordance with law to recover the aforesaid interest amount for payment to the petitioner. Parties are directed to appear before the executing court on 18.4.2012.