B VASANTHARAM SHETTY Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE appellant has filed this appeal assailing the judgment of the learned Single Judge, in not granting adequate interest at the rate of 16% per annum on the compensation paid for the lands which vested in the Government by virtue of Section 44 of the Karnataka Land Reforms act ('the Act' for short ).

(2.) THE facts of the case are that appellant's mother was the widow and she was the owner of the lands bearing Sy. Nos. 46/6, 46/7, 46/8, 46/28 and 80/3 of Kannur Village. The Karnataka Land Reforms Act as amended came into force on 1-3-1974. The disputed lands are agricultural lands. There is a tenant on the land. Section 44 of the Act contemplated that all the lands in possession of the tenants immediately prior to the date of commencement of the Amendment Act other than the lands held by them under leases permitted under Section 5, shall stand transferred to and vest in the State Government. In this case there is no dispute that there is a tenant and the same is admitted by the owner of the land and the land is vested in the State and ultimately occupancy rights were granted in favour of the tenants as per Section 45 of the Act. Section 47 deals regarding the amount payable to the owner. The land owner, landlord and all other persons interested in the land whose rights are extinguished by vesting of the land in the State are entitled to an amount determined with reference to the net annual income derivable from the land or all the lands. Section 48 deals with constitution of tribunals dealing with the Land Reforms Cases under the Act including the determination of the amount payable to the land owner. Section 48-A contemplates enquiry to be conducted by the Land Tribunal regarding occupancy rights of the tenants in the land. Section 48-B contemplates that the Tahsildar on receipt of the orders passed under sub-section (4) or sub-section (5) of Section 48-A has to determine the amount payable under Section 47 to the land owner and prepare a statement showing the apportionment of the amount so determined among the persons entitled to it, in accordance with the value of their respective interest in the land. Section 51 deals with mode of payment. It is relevant to extract sub-section (1) (b) of Section 51 as under:

(3.) IN the present case the appellant is a widow and she is entitled for payment of Rs. 50,000/ -. The Tahsildar decided that the appellant-mother is entitled to Rs. 49,555/- by order dated 27-2-1986. The amount was paid on the same day. The question now that arises for consideration is whether the appellant is entitled for interest on the said amount. As per Section 51 of the Act where the amount is paid in cash there is no provision providing for payment of interest. Where the bonds are issued instead of cash, Section 51 contemplates payment of 51/2% interest and bonds to be taken as National Savings Certificate.