VARSANJI ATAJI Vs. STATE OF GUJARAT

JUDGEMENT

(1.) * * * *

(2.) Now we come to the question as to from what date interest should be allowed. Sec. 34 of the Act says that when the amount of compensation is not paid or deposited on or before taking possession of the land the Collector shall pay the amount awarded with interest thereon from the time of taking possession until it is paid or deposited. In view of the clear provision made in sec. 34 of the Act the claimants are entitled to interest from the date of taking over possession. It is true that possession was taken over long before the notifications under sec. 4 were issued in these cases but that was because the Government claimed ownership over these lands but ultimately failed to establish their claim. The fact however remains that possession was taken over on 22-6-1960. That fact is not disputed. It is even mentioned in the awards passed by the Land Acquisition Officer that possession was taken over on 22-6-1960 as the Government claimed to be the owner of the lands but ultimately the Supreme Court decided in favour of the claiments. It is true that the claimants have filed suits claiming mesne profits for the earlier period i. e. from the date of taking over possession till the issuance of notifications under sec. 4 of the Act. The claimants cannot claim mesne profits and interest both for that period. But even the claimants are prepared to withdraw the suits as stated by them before the trial Court and before this Court. Thus there is no reason why they should not be allowed interest from the date of taking over possession. No authority is needed for a proposition that interest is to be awarded from the date of taking over possession because sec. 34 is very clear. There are however some decisions which support the view which we are taking that interest has to be awarded from the date of taking over possession.

(3.) The Supreme Court has in the case of Satinder Singh v. Umrao Singh AIR 1961 SC 908 held that interest on amount of compensation for the period between deprivation of possession and payment of compensation has to be awarded.