RANVEER SINGH Vs. STATE OF U.P. THROUGH SECY. & ORS.
LAWS(SC)-2016-7-46
SUPREME COURT OF INDIA (FROM: ALLAHABAD)
Decided on July 22,2016

RANVEER SINGH Appellant
VERSUS
State Of U.P. Through Secy. And Ors. Respondents

JUDGEMENT

- (1.) This appeal arising out of special leave has been preferred by the original writ petitioner whose land was acquired by the authorities of the State of Uttar Pradesh under the provisions of Land Acquisitions Act, 1894 (hereinafter referred as 'the Act') on the basis of an agreement for compensation dated 27.2.2003 followed by instant payment of such compensation. The appellant subsequently claimed interest under Section 34 of the Act from the date 15.2.2001 when admittedly the possession of the land was taken over by the State Authorities and till 27.2.2003, the date of payment. The claim was rejected by the concerned District Magistrate of Gautam Budh Nagar vide an order dated 6.8.2005 passed pursuant to order of High Court dated 12.04.2005 in appellant's earlier writ petition No.38951 of 2002. That claim again made through subsequent writ petition bearing No. 60992 of 2005 has been rejected on merits by the judgment and order under appeal passed by the Division Bench of the High Court of Judicature at Allahabad on 22.5.2014.
(2.) There is no material dispute over facts and hence it would suffice to notice that as per pleadings of the parties, appellant's land in Plot No. 203, area 30 bigha 12 biswa and plot No. 209, area 1 biswa in village Parthala, Khanjarpur District Gautam Budh Nagar (U.P.) was acquired by issuing notification under Section 4 read with Section 17 dated 1.6.2000 and a declaration under Section 6 dated 30.12.2000 of the Act. The possession of the land was taken on 15.2.2001. After taking possession, proceedings for determination of payment of compensation on the basis of agreement was initiated. On account of information received by the Additional District Magistrate Land Acquisition Noida, Gautam Budh Nagar from DGC (Civil) that appellant had land in excess of the ceiling limit, inquiries and opinion for entering into an agreement became necessary. Ultimately on 7.2.2003 it became clear that appellant had no land in excess of the ceiling area and that cleared the path for signing the agreement on 27.2.2003 for payment of compensation in terms of agreement as per Uttar Pradesh Land Acquisition (Determination of Compensation and Declaration of Award by Agreement) Rules, 1997 (hereinafter referred to as the "Rules of 1997"). As agreed, the entire compensation of Rs.1,37,58,350/- was paid on the same date. The appellant accepted the said amount without any demur or protest. At that time the earlier writ petition No.38951 of 2002 for claiming compensation was pending. Claim for interest under Section 34 was subsequently added in that writ petition through an amendment. The writ petition was disposed of with liberty to the petitioner to file a representation and as noticed earlier the same was rejected by the District Magistrate by a speaking order dated 6.8.2005.
(3.) In the aforesaid facts the sole issue for determination remains as to whether, after entering into an agreement under the Rules of 1997 and accepting the agreed amount without any protest or demand for further interest, the appellant can claim interest on the ground of Section 34 of the Act for the period that had already lapsed between taking of possession and signing of the agreement/payment of compensation. Section 34 of the Land Acquisition Act, 1894 reads as under:- " 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 of expiry of the said period of one year on the amount of compensation or part thereof which has not been paid or deposited before the date of such expiry.]";


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