Hansaria, J. - (1.) A land acquisition proceeding which was initiated by issuing notification under Section 4(1) of the Land Acquisition Act, 1894 (hereinafter referred to as 'the Act') on 25-4-1963 has brought the appellants to this Court as they have felt dissatisfied with the fixation of a market value by the Andhra Pradesh High Court, which granted compensation on belt-wise basis. The appeal came up for hearing before a two-Judge bench and by judgments dated May 15, 1992 the appeal came to be allowed in part as indicated in the judgments. The two learned Judges, however, differed on the question as to whether the appellants are entitled to interest as enhanced by Section 18 of the Land Acquisition (Amendment) Act, 1984 (for short,"the Amendment Act"). Kasliwal, J. took the view that despite what has been held by the Constitution Bench in the case of Union of India v. Raghubir Singh, (1989) 2 SCC 754 , enhanced rate of interest as visualised in the Amendment Act would be available to the appellants on a harmonious reading of the provisions, if the intention of the legislature in enhancing the rate of interest is kept in view. Punchhi, J., however, was of the opinion that awarding of enhanced rate on the face of what was held in Raghubir Singh's case, (supra), would militate against the ratio of that case and would do violence to the statute. The learned Judges, therefore, while allowing the appeal in part and setting aside the judgment of the High Court to the extent indicated in the judgments, requested the Hon'ble Chief Justice to constitute a larger bench to resolve the disagreement with regard to the rate of interest as, though the controversy is short, the same is likely to affect large number of cases. Hence, this appeal has come up for hearing by this bench.
(2.) The provisions of the Act which are relevant for our purpose are Sections 11, 23, 25, 26 and 28, which may be noted at the threshold:- "11. Enquiry and award by Collector. (1) On the day so fixed, or on any other day to which the enquiry has been adjourned, the Collector shall proceed to enquire into the objections (if any) which any person interested has stated pursuant to a notice given under Section 9 to the measurements made under Section 8, and into the value of the land at the date of the publications of the notifications under Section 4, sub-section (1), and into the respective interests of the persons claiming the compensation and shall make an award under his hand of:- (i) the true area of the land; (ii) the compensation which in his opinion should be allowed for the land; and (iii) the apportionment of the said compensation among all the persons known or believed to be interested in the land, of whom, or of whose claims, he has information, whether or not they have respectively appeared before him: ********** ********** 23. Matters to be considered in determining compensation - (1) In determining the amount of compensation to be awarded for land acquired under This Act, the Court shall take into consideration:- first, the market-value of the land at the date of the publication of the notification under Section 4, sub-section (1); secondly, the damage sustained by the person interested, by reason of the taking of any standing crops or trees which may be on the land at the time of the Collector's taking possession thereof; thirdly, the damage (if any) sustained by the person interested, at the time of the Collector's taking possession of the land, by person of severing such land from his other land; fourthly, the damage (if any) sustained by the person interested, at the time of the Collector's taking possession of the land; by reason of the acquisition injuriously affecting his other property, movable or immovable, in any other manner, or his earnings; fifthly, if, in consequence of the acquisition of the land by the Collector, the person interested is compelled to change his residence or place of business, the reasonable expenses (if any) incidental to such change; and sixthly, the damage (if any) bona fide resulting from diminution of the profits of the land between the time of the publication of the declaration under Section 6 and the time of the Collector's taking possession of the land. (1-A) In addition to the market-value of the land, as above provided, the Court shall in every case award an amount calculated at the rate of twelve per centum per annum on such market-value for the period commencing on and from the date of the publication of the notification under Section 4, sub-section (1), in respect of such land to the date of the award of the Collector or the date of taking possession of the land, whichever is earlier. Explanation ;- In computing the period referred to in this sub-section, any period or periods during which the proceedings for the acquisition of the land were held up on account of any stay or injunction by the order of any Court shall be excluded. (2) In addition to the market-value of the land, as above provided, the Court shall in every case award a sum of thirty per centum on such market-value, in consideration of the compulsory nature of the acquisition. 25. Amount of compensation by Court not to be lower than the amount awarded by the Collector.- The amount of compensation awarded by the Court shall not be less than the amount awarded by the Collector under Section 11. 26. Form of awards:- (1) Every award under this part shall be in writing signed by the Judge, and shall specify the amount awarded under clause first of sub-section (1) of Section 23, and also the amounts (if any) respectively awarded under each of the other clauses of the same sub-section, together with the grounds of awarding each of the said amounts. (2) Every such award shall be deemed to be a decree and the statement of the grounds of every such award a judgment within the meaning of Section 2, clause (2), and Section 2, clause (9), respectively, of the Code of Civil Procedure, 1908, (5 of 1908). 28. Collector may be directed to pay interest on excess compensation:- If the sum which, in the opinion of the Court, the Collector ought to have awarded as compensation is in excess of the sum which the Collector did award as compensation, the award of the Court may direct that the Collector shall pay interest on such excess at the rate of nine per centum per annum from the date on which he took possession of the land to the date of payment of such excess into Court: Provided that the award of the Court may also direct that where such excess or any part thereof is paid into Court after the date of expiry of 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 of expiry of the said period of one year on the amount of such excess or part thereof which has not been paid into Court before the date of such expiry. We may also note Section 18 of the Amendment Act which brought out amendment in Section 28 of the principal Act, which reads as below: "18. Amendment of Section 28. - In Section 28 of the principal Act, - (a) for the words 'six per centum", the words "nine per centum" shall be substituted; (b) the following proviso shall be inserted at the end, namely:- "Provided that the award of the Court may also direct that there such excess or any part thereof is paid into Court after the date of expiry of 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 of expiry of the said period of one year on the amount of such excess or part thereof which has not been paid into Court before the date of such expiry."
(3.) The aforesaid shows that the rate of interest was increased from 6 per centum to 9 which would become 15 after expiry of the period mentioned in the proviso to the Amendment Act. The question for determination is whether advantage of the increase in rate of interest would be available to the appellants. To decide this we have to keep in mind the following dates: (i) Date of Collector's award:10-6-1968; (ii) Date of taking over of possession:24-6-1968 (iii) Date of Reference Court's award:30-8-1972; (iv) Date of the decision of the High Court:24-6-1974; and (v) Date of this Court's aforesaid judgments:15-5-1992. ;