Y VENKANNACHOWDARY Vs. SPECIAL DEPUTY COLLECTOR LAND ACQUISITION GENERAL HYDERABAD DISTRICT

JUDGEMENT

(1.) This review raises the question of rate of interest to be awarded on the amount of compensation under the Land Acquisition Act vis-a-vis the lands acquired for the Central Government in the year 1963. The material particulars, in brief, may be sequenced.

(2.) The lands of the petitioners were acquired for the Central Government, inter alia, towards the construction of Railway Staff Quarters; and possession of the lands was taken over on 6-12-1963, 12-1-1964 and 15-6-1965. Interest at the rate of 4 per cent per annum was awarded on the compensation amount; and the same was eventually confirmed by this Court in the appeal, which is now sought to be reviewed.

(3.) The grounds briefly are: An honest mistake was committed by the Counsel in not bringing to the notice of the Court, paragraph 21 of Schedule IV of Part III of the Land Acquisition Manual, which provides for interest at the rate of 6 per cent per annum in cases of acquisition of land for the purposes of the Central Government though the rate is 4 per cent per annum if the land is acquired for the State Government. The said Para. 21 of Boards Standing Order 90 was amended only in the year 1966 by G. O. Ms. No. 1364 dated 21-11-1966 providing for payment of interest at the rate of 4 per cent per annum regardless of the fact whether the land is acquired for the Central Government or the State Government. Since the amendment is subsequent to the acquisition, i.e., 1963, the rate of interest will be 6 per cent per annum. The Land Acquisition (Madras Amendment) Act, 1953, which reduces the rate of interest from 6% to 4% is applicable only to the lands acquired for the purposes of the State Government. In fact, Boards proceedings, B. P. Mis. No. 1005 dated 2-9-1953 and Government Memo No. 3695-C/50-2, Rev. dated 6-8-1953 issued thereafter clearly demonstrate that the amendment is applicable to cases of acquisition of land for the State Government which is further made clear under Para 21 of B. S. O. 90. That B. S. O. 90 was also adopted by the Andhra Pradesh State Government and continues to be in operation till it is amended by G. O. Ms. 1364 dated 21-11-1966.