SPECIAL TAHSILDAR LA Vs. MELATH CHATHUKUTTY NAIR

JUDGEMENT

(1.) Based on a notification dated 26.8.1992 under S.4(1) of the Kerala Land Acquisition Act, 1894 acquisition proceedings started in respect of the land owned by the claimant. The land extends about 0.1154 hectare. The Land Acquisition Officer awarded Rs. 7,300/- per Are. The owner claimed Rs. 8,000/- per cent and the matter was referred. Before the reference court neither party adduced any evidence. Accordingly, the reference court did not grant any enhancement, but it directed payment of interest on the amount paid as per award dated 26.8.1993 under S.28 with effect from 10.8.1988 a date far earlier than the date of notification under S.4(1).

(2.) In the appeal by the State, it is submitted by the learned Government Pleader that awarding of interest by the Land Acquisition Officer under S.34 or the direction to pay interest by the reference court under S.28 of the Land Acquisition Act shall be with reference to the date of taking possession of the land which event shall take effect only after the date of notification. The date of notification is the fulcrum on which the lever of acquisition moves. Therefore any compensation, market value, additional compensation, solatium or interest payable shall always be dependent upon the date of notification or the date of award, as the case may be which will be after the date of notification. Therefore, the impugned judgment directing payment of interest from 10.8.1988 - a date far earlier than 26.8.1992, the date of notification under S.4(1) is illegal. The claimant can get interest, at the maximum, only from 26.8.1992, the date of notification, which shall also be taken as in this case the date of taking possession of the land.

(3.) The Land Acquisition Act, 1894 provides for the procedure for acquisition and for award of compensation in respect of the land acquired including payment of interest on the award amount. As per the scheme of the Act, the acquisition shall commence based on a notification under S.4(1). It is thereafter, the permission for entry into the land is given to the revenue officers and a declaration is to be made under S.6 of the Act, notice under S.9 is to be given to the parties, enquiry is to be conducted under S.11 and award has to be passed under S.12 fixing the land value. Thereafter, in terms of S.16 possession shall be taken. At the same time, under certain emergency, the Collector is given power to take possession, as per S.17, even without passing the award. It shall be after issuance of notice. S.9 notice shall always be after issuance of notification under S.4(1). Therefore, possession can be taken, always only after issuance of a notification under S.4(1) of the Act. Possession, under the Act, cannot be taken on any date prior to the date of notification. It is in this perspective, that S.34 or S.28 envisaging payment of interest has to be examined. S.34 of the Act provides for payment of interest by the Collector. Such interest shall from the time of so taking possession. Such a situation arises when the amount of compensation is not paid or deposited on or before taking possession. Deposit or payment of amount arises only when the award is passed. It shall always be pursuant to and based on a notification. Taking possession arises either under S.17 or under S.16, as the case may be, only on a date after issuance of notification under S.4(1). Therefore, the date of taking possession for calculating interest under S.34 cannot be any date before the date of notification under S.4(1) of the Act.