- (1.) - Leave granted.
(2.) THOUGH notice has been served on the respondent on 23/05/1995 none is appearing either through counsel or in person. Notification under Section 4(1) of the Land Acquisition Act. 1894 (for short,'the Act') was published on 27/02/1986, and the Collector passed the award on 29/03/1987. Dissatisfied therewith, the respondent had filed C. W. P. No. 125/86 and the High Court by its order dated 23/07/1986 held that : "On the amount of compensation paybable to the petitioner in respect of land, interest at the rate of 12 per cent. per annum shall be paid from the date of the taking over of possession till the date payment of interim compensation and of final compensation, if there is enhancement. The interest payable accordingly is in the nature of an equitable compensation and such interest will be in addition to the compensation, solatium and interest at the statutory rate which will be paid to the petitioner under the law in respect of land, whether awarded by the Collector or enhanced by the Court, and such interest will not be taken into consideration in any proceeding under the Act while awarding the statutory compensation." Following the direction the award has been made thus : "Accordingly, the award was annonuced by the Land Acquisition Collector and the respondent was paid as under :- JUDGEMENT_683_5_1995Html1.htm A reading thereof clearly indicates that advance possession was taken in 1972, though notification under Section 4(1) of the Act was published on 19/02/1986. The Court has awarded under Section 23(1A) additional amount at 12 Per Cent p.a. of the compensation from October 19, 197 2/03/1987. The question, therefore, is whether the Court is empowered to award 12 Per Cent interest, in addition to benefits under S. 23(1A) of the Act as amended under Amendment Act, 68 of 1984. The controversy is no longer res integra. It is settled law by catena of decisions of this Court. In Mir Fazeelath Hussan v. Special Deputy Collector, Land Acquisition, Hyderabad, (1995) 3 SCC 208 : (1995 AIR SCW 2109), a Bench of three Judges to which one of us B. L. Hansaria, J. was a member, dealt with the power of the Court to grant interest on equitable consideration and held thus : "10. It has also been submitted by Shri Madhava Reddy that higher rate of interest may be ordered to do equity between the parties. We are unable to concede, as, had the present been a case of non-awarding of any interest, we would have done so because, interest in such cases may become payable on equity, for it is meant to make good the loss suffered by a person due to delayed payment. This view has been reiterated recently by this Court in Kalimpong Land and Building Ltd v. State of West Bengal, (1994) 6 SCC 720, in which payment of interest was ordered, even when acquisition was under Requisitioning and Acquisition of Immovable Property Act, 1952, which statute had made no specifie provision, unlike the Act at hand, for payment of interest. But equity has no role when the question relates to rate of interest. Whether the rate of interest should be 6 Per Cent or 9 Per Cent is not a matter which would require invocation of Court's equitable jurisdiction. The same has to be governed by statutory provision. Had the rate of interest been too low, we could have perhaps on equity granted some relief. But 6 Per Cent has been the rate for a very long period insofar as the Act is concerned as the enhancement come only in 1984 whereas the Act is of 1894. So, we are not satisfied if enquiry demands granting of relief in question." Similar view was taken by this Court in serveral decisions. It is settled legal position that when the statute deals with payment of interest to the claimants either under Section 31 or Section 28 of the Act, the Court had no power to award interest in a manner other than the one in which the statute prescribes payment. It is seen that in a case where decision has been taken exercising the urgency power under Section 17(4) of the Act and the award was made subsequent to the taking over possession, obviously the claimant would be entitled to payment of interest under Section 31 from the date of taking possession till the amount is deposited pursuant to the award of the Collector under Section 11. On reference, if the compensation is enhanced, under Section 28 of the Act and proviso thereto the claimants would be entitled to the rates of interest specified therein. Apart from these two provisions, there is no other provision under the Act empowering the Court to award interest on equitable grounds, in addition to statutory rates of interest prescribed under the Act. Equitable consideration has no role to play in determination of the compensation and the manner of awarding interest as enjoined under the Act. The Act is to be administered in the manner laid in the Act and in no other way. As a concomitance, the equity jurisdiction of the Court is taken out and the Act enjoins the Court to grant interest as per the statutory rates specified in the Act. Thus, we hold that the finding of the High Court that the claimants would be entitled to payment of interest @ 12 Per Cent on equitable ground from the date of taking possession till date of deposit under Section 12 in addition to the statutory rates of interest and 12 Per Cent additional amount under Section 23(1A) for the same period is clearly illegal. The appeal is accordingly allowed and the order of the High Court to the extent of granting 12 Per Cent interest from the date of taking possession, namely, October, 1972 till date of deposit, namely, March, 1987, is illegal and is accordingly set aside. But the direction to pay additional amount under Section 23(1A) from the date of taking possession till date of making the award is valid and needs no interference as the claimants did not challenge the validity of the notification under Section 4(1) and the possession taken must be referable to it. No. costs.Order accordingly.;