UNION OF INDIA Vs. BUDH SINGH

JUDGEMENT

(1.) Leave granted.

(2.) This appeal by special leave arises from the order of the High court of Punjab and Haryana dated 21/7/1993 made in Civil Revision No. 3389 of 1990. The facts are that possession of land measuring 81 kanals 3 marlas 10 acres and I kanals 3 marlas was taken over by the Punjab Armed Police on 15/3/1963 for construction of its headquarters at Ajnala. Initially an amount of Rs. 14,719.79 was paid to the owner as compensation on 9/3/1965 as determined by the Revenue authorities. Later, he laid the suit in the court of the Additional Judge, Amritsar for recovery of its possession pleading that since the land was not acquired under the Land Acquisition Act, 1894 (for short, 'the Act') , it was illegal. The suit was decreed on 30/4/1969. In execution thereof, the court passed an order directing the respondents to refund the amount of Rs. 14,719.79 received on 9/3/1965. The State carried the matter in appeal which was dismissed. The second appeal also ended in dismissal. Then they initiated the proceedings for the acquisition of the said land and the notification under Section 4 (1 of the Act was published on 16/11/1984 and an award thereunder has been passed. We are not concerned in this case regarding the legality of the award made by the reference court since, it had become Final. But in execution of the decree, the High court passed an order that in the event of default in payment within the stipulated time, payment of interest at 18% per annum from the date of taking possession be made. Since that amount has not been paid with interest, thecourt has proceeded with execution and the High court in the impugned order has affirmed the same. Thus this appeal by special leave.

(3.) The only question that arises for decision is whether the respondents-owners of the lands are entitled to interest at 18% per annum from 15/3/19633, the date on which possession was initially taken, till 15/11/1984, preceding the date on which the notification under Section 4 (1 was published. It is a jurisdictional issue and the Finding in this behalf touches and trenches into the jurisdictional power of the court, acting under the Act regarding award of interest. The payment of interest under the Act is squarely covered by the provisions of the Act. The government, while exercising its power of eminent domain, are entitled to have the notification under Section 4 (1 published in the State Gazette. They are also entitled, in case of urgency, to exercise the power under Section 17 (4 of the Act and thereon declaration under Section 6 published and would issue notice to the owner of the land under Section 9. On expiry of 15 days thereof, the government is entitled to take possession from the owner. The award would be made under Section 11 thereafter. In case urgency clause under Section 17 (4 was not invoked, the procedure of inquiry under Section 5-A shall be gone through and thereafter declaration under Section 6 be made. The declaration gives conclusiveness to the public purpose. After conducting an inquiry in Ch. III of the Act, the Land Acquisition Officer makes the award under Section 11 and gives notice to the owner under Section 12 (2 and he is entitled to take possession from the owner of the land under Section 16 and on deposit of the compensation makes payment thereof under Section 31 of the Act. In case, after taking possession, if the amount is not paid, the provision is made for payment of interest under Section 34 of the Act which reads thus: