Shobha Bhai Singh vs Divisonal Forest Officer

Even though the case is listed today for considering the application for urgent hearing filed by the appellant but taking note of the very short controversy involved and the fact that there is no dispute, factual in nature with regard to the said controversy, with the consent of the parties, we deem it appropriate to dispose of this appeal at this stage itself. Challenge in this appeal filed u/s 96 of the CPC is made to an award passed by the Additional District Judge, Seoni on a reference made u/s 18 of the Land Acquisition Act.

Award in question has been passed on 03-08-2009 and compensation to the appellant has been granted based on the assessment of the market value of the property. However, the only dispute warranting consideration in this appeal is with regard to award of interest u/s 23(1-A) of the Land Acquisition Act, 1894.

Shri Vipin Yadav, learned counsel for the appellant invites our attention to the order in question and the manner in which the interest on the market value u/s 23(1-A) has been calculated and paid. It is pointed out that the Land Acquisition Officer in his communication available at page no. 21 dated 31-08-2007 in column No. 3 has directed for calculating the interest as contemplated u/s 23(1-A) at the rate of 12% from 25-04-2001 to 30-12-2006. It is pointed out that 25-04-2001 is the date when the compensation was assessed by the Collector and it is not the date when the actual notification u/s 4 was issued. According to Shri Vipin Yadav, learned counsel for the petitioner, the requirement of law i.e. section 23(1-A) is that the individual is entitled to interest in additional to the market value of the rate which has to be calculated at the rate of 12% per annum from the period commencing from the date of publication of the notification under sub section (1) of section 4, and not the date of the award by the collector, accordingly, contending that in the present case the date of notification u/s 4(1) is of 29-10-69 and not 25-04-2001, the challenge is made to the order in question.

On perusal of the documents available on record particularly the award passed by the Land Acquisition Officer and other authorities, prima facie it is seen that the notification u/s 4(1) was issued on 29-10-1969 and therefore, in calculating the interest payable u/s 23(1-A) with effect from the date of assessment of the market value by the collector, an error has been committed. The requirement of section 23(1-A) is to pay the interest at the rate of 12% as contemplated therein on the market value for the period commencing on and from the date of publication of the notification u/s 4(1). That being so the respondents are required to calculate the interest from the date when notification u/s 4(1) was issued and not from the date when the compensation or the market value was assessed and to that effect the award and the reference made require modification.

Accordingly, this appeal is allowed in part. The respondents are directed to re-calculate the interest on the market value and the same be awarded to the appellant again with effect from the date when the actual notification u/s 4(1) was passed i.e. on 29-10-69 or on such other date when the notification was issued and pay interest to the appellant accordingly within a period of two months.

With the aforesaid modification to the order passed by the Land Acquisition Officer and by the Reference court u/s 18, this appeal is allowed and disposed of. No order as to cost.