TYAGI, J. - (1.) THIS is an appeal of Nagar Palika Chittorgrah against the order of the District Judge, Partapgrh (Camp Chittorgarh) dated 24-3-1975 whereby the learned Judge allowed the interest on the entire compensation to be realised from the appellant.
(2.) THE facts giving rise to this appeal are in a nut-shell as follows: - THE land belonging to the respondent was acquired under the provisions of the Rajasthan Land Acquisition Act, 1953 (hereinafter called 'the Act') for the Municipal Board, Chittorgarh. THE Land Acquisition Officer after having undergone all the formalities of the Act determined the compensation on 28th August, 1959. THE amount of compensation fixed by him was Rs. 4,772 50 Having felt aggrieved by the decision of the Land Acquisition Officer the owner of the land got the case referred under sec. 18 of the Act to the District Judge, Partabgarh to get the proper compensation determined by him. THE learned Judge by his judgment dated 17th December, 1960 in Misc case No. 9 of 1969 modified the award of the Land Acquisition Officer and enhanced the compensation by Rs. 4,540/. During the pendency of the proceedings before the District Judge, the Collector took possession of the land under sec. 16 of the Act on 29th June, 1960 from respondent No. 1. After the judgment of the District Judge the Municipal Board preferred an appeal in this Court and obtained stay order restraining the respondent No. 1 to realise the amount of compensation from the Municipal Board, Chittorgarh. THE appeal of the Municipal Board was dismissed by Court on 5th March, 1970. It appears that the Municipal Board deposited with the Collector the amount of compensation determined by the Land Acquisition Officer but that amount was neither paid nor offered to the owner of the land. After the matter was finally decided by this Court, the owner of the land took out the execution proceedings on 25th March, 1970 demanding Rs. 9,217/- as the amount of compensation and Rs. 6,486/- as interest on that amount and Rs. 17/- as costs awarded by this Court. THE Municipal Board paid on 23rd March, 1973 Rs. 9,217/- to the respondent No. 1 but raised a contest for the amount of interest demanded by the owner of the land on the amount of compensation in execution proceedings. THE learned Judged by his impugned order allowed the owner to realise the amount of interest @ 6% per annum from the Municipal Board and it is therefore in these circumstances that the present appeal has been filed by the appellant. On an application filed by the Municipal Board the Collector was made a party to the execution proceedings. In the reply filed by the Collector it was averred that since a stay order was obtained from the High Court in the appeal filed by the Nagar Palika on 21st April, 1961 the amount of compensation was not paid to the owner of the land. The question which has been agitated before this Court by learned counsel for the appellant is that no interest was awarded either by the Collector or by the District Judge on the amount of compensation and, therefore, the owner is not entitled to realise any interest on the compensation amount from the appellant. It was also urged that the appellant after the quantum of compensation was determined by the Collector, deposited the amount with the Collector and, therefore, the appellant cannot be said to be in default and hence no interest could be allowed on that amount which was already deposited by the Nagar Palika with the Collector. Learned counsel for respondent No. 1 on the other hand contended that the provisions of sec. 34 of the Act are mandatory in nature and even if no direction is issued by the authority determining the compensation to pay interest to the owner on the amount of the compensation, the Court cannot deny the interest to the owner as the wording of sec. 34 carry a clear mandate that in any case if the amount of compensation is not paid to the owner of the land as he has been deprived of the possession of the land he is entitled to get the interest on the amount of compensation so determined by a competent authority under the Act. As regards interest on the enhanced compensation determined by the District Judge the argument of the learned counsel for the respondent No. 1 is that sec. 28 may be construed as a mandatory provision of the Act if it is read in the context of the entire scheme of the Act and, there-fore if the owner is deprived of the amount of compensation, he is entitled to get interest under sec. 28 of the Act even though no such direction was issued by the District Judge while fixing the amount of compensation under sec. 18 of the Act. In order to determine the contentions of the parties we shall have to examine the scheme of the Act with special reference to the duty of the Collector regarding the payment of compensation to the owner of the land.
(3.) UNDER sec. 16 of the Act the Collector is empowered to take possession of the land only after he has made award under sec. 11. As soon as the possession of the land is taken by the Collector the land vests absolutely in the State Government free from all encumbrances. It is at this stage that the owner of the land loses his ownership in that land and also its possession. Sec. 31 of the Act casts a duty on the Collector that when the award is made under sec. 11, he shall tender payment of the compensation and costs, if any, awarded by him to the persons interested entitled thereto according to the award, and shall pay it to them unless prevented by some one or more of the contingencies mentioned in the next sub section. Sub-sec. (2) deals with those contingencies when the amount of compensation cannot immediately be paid to the person entitled to receive it and it lays down that if the person entitled to receive such compensation does not give his consent to receive it or if there be no person competent to alienate the land, or if there be any dispute as to the title to receive the compensation or as to the apportionment of it, the Collector shall deposit the amount of compensation and costs, if any, in the Court to which a reference under sec. 18 is to be submitted. Section 31 of the Act makes it clear that as soon as the award is made it is the duty of the Collector to tender payment of the compensation to the person entitled to receive it and if that person for some reason refuses to receive it then the Collector is under a duty to deposit that amount in the court where reference can be made under sec. 18. In this case such court is the court of District Judge of the Chittorgarh District. It is admitted by the Collector on behalf of the State respondent No. 2 that the amount of compensation determined by the Land Acquisition Officer was not tendered or paid to the respondent No 1 nor did he deposit that amount in the court of the District Judge, Partabgarh It is in this background that I have to examine the claim of interest of respondent No. 1. Section 34 deals with the payment of interest and it reads as follows: - "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 four percentum per annum from the time of so taking possession until it shall have been so paid or deposited. " ;