J PATTAMMAL Vs. COLLECTOR OF MADRAS

JUDGEMENT

(1.) THE question referred to us by Sadasivam and Mudaliyar, JJ. is:--"whether an appellant should pay court-fee on the interest payable to him under section 28 of the Land Acquisition Act, and if so, on what basis?" The appellant whose land had been acquired compulsorily under the provisions of the Land Acquisition Act was, on a reference under Section 18 of the Act, granted by the City Civil Court a sum of Rs. 1570-62 as enhanced compensation with interest at 4 per cent, from 20-7-1959, the date on which the State had taken possession of the land. Sadasivam and Srinivasan, JJ. allowed the claimant's appeal and granted a further sum of Rs. 1570-62 together with solatium at the prescribed percentage. Though in the memorandum of appeal the appellant had undertaken to pay court-fee on the interest over the further enhanced compensation that might be allowed, actually the learned Judges said nothing about interest while disposing of the appeal. The appellant, therefore, sought by a petition to get the decree amended so as to have the interest on such compensation included in the decree. When this petition came up before sadasivam and Mudaliyar, JJ. they were not inclined to concur with the view of krishnamurthi v. Revenue Divisional Officer, that as interest formed part of compensation for acquisition of land an appellant was liable to pay court-fee on the amount payable to him as interest. The learned Judges have, therefore, made this reference to a Fuller Bench. In doing so, they have opined that interest payable under Section 28 of the Land Acquisition Act is not part of the compensation awarded for compulsory acquisition of land and that as such Section 51 of the Madras Court-fees and Suits Valuation Act. 1955 would have no application. They have added that such interest is not t paid for acquiring title to the property from the owner, but for compensating him for depriving his possession before payment of compensation.

(2.) SECTION 51 of the Madras Court fees and suits Valuation Act reads:-" the fee payable under this Act on a Memorandum of appeal against an order relating to compensation under any act for the time being in force for the acquisition of property for public purposes shall be computed on the difference between the amount awarded and the amount claimed by the appellant. " section 4 is the charging section. , It requires that no document which is chargeable with fee under the Act shall be filed, exhibited or recorded in, or be acted on or furnished, by any court including the High Court. unless in respect of such document there be paid a fee of an amount not less than that indicated as chargeable under the Act. Section 21 provides how court-fee should be determined or computed in accordance with the provisions of Chapters IV, VI and VIII and schedules I and II. A memorandum of appeal against an order relating to compensation under any Act for the time being in force for acquisition of property should be valued in accordance with Section 51. That means court-fee shall be charged on the difference between the amount awarded and the amount claimed by the appellant and computed and paid as prescribed by Schedule I Art 1. There is no dispute that the appeal before this court which was disposed of by sadasivam and Srinivasan, JJ. was one within the purview of Section 51. But the point is whether interest payable on the enhanced compensation awarded in the appeal is part of the compensation itself. The word 'compensation' by itself may de hors the context, be of wide import. In its ordinary significance. it means to counter balance make up for make amends for. In that sense, compensation is an equivalent or something to make an equal return to or recompense for. Interest payable for use of money may, therefore, be compensation in the wider sense of the term. Inglewood Pulp and Paper Co. v. New Brunswick Electric Power commission, 1928 AC 492 = (AIR 1928 PC 287), warrants this view. There it was observed that the right to receive interest takes the place of the right to retain possession. This observation was made in the context of compulsory acquisition of land. But the word 'compensation' in Section 51 does not stand by itself. it should be compensation under the relative Act for the purpose of Section 51 and it should be for the acquisition of property. There should be, therefore, a direct relation between compensation and acquisition of property under the relative Act. The further words ' the difference between the amount awarded and the amount claimed by the appellant' also govern the scope and content of compensation mentioned in Section 51. The difference claimed by the appellant should be of the same nature as the compensation itself for acquisition of property. It is therefore, necessary to ascertain whether the interest payable under Sec. 28 of the Land acquisition Act can be treated as compensation under that Act for acquisition of the property.

(3.) PART II of the Land Acquisition Act provides for acquisition and the proceedings start with a preliminary investigation, the first step being a notification under section 4 (1 ). After enquiry under Section 5-A, a declaration under S. 6 (1) follows. Thereafter a public notice is required to be given as well as a notice on the occupier intimating that the Government intended to take possession of the land and that claims to compensation for all interests in the land might be made to the collector. An enquiry by the Collector is enjoined by Section 11 into the measurements of the land, its value and the claims in respect of it. The Collector shall make an award in the light of the findings in the enquiry. In making an award, he should have regard, as mentioned by Sec. 15 to Ss. 23 and 24. Among the factors which go into the determination of the compensation is the market value of the land as by the date of the publication of the notification under Section 4 (1 ). But be it noted that interest payable under Section 28 is not among them. We may mention that because of Section 15 read with S. 23 (2), he is bound to include the solatium is part of the compensation is another matter. When the Collector has made an award under Section 11, as authorised by Section 16, he may take possession of the land, which then shall vest in the Government free from encumbrances. The Act indicates that he should pay or deposit the compensation determined and awarded by him for acquisition of the land before taking possessions of it. If he fails to do so,. Section 34 makes it compulsory for him to pay interest at the rate mentioned on the amount awarded. He is required to pay both the compensation and the interest thereon from the date of taking possession until payment. Any person who has not accepted the award may ask for a reference to the court, whether his objection be to the measurement of the land or the amount of compensation. In disposing of such a reference the court shall take into consideration the matters mentioned in Section 23. We have already pointed out that among the matters covered by Section 23, interest payable under S. 34 or s. 28 is not one. But in disposing of the reference, the court may, under Section 28 direct the Collector to pay interest on the excess compensation awarded by it. The order made in the reference, though referred to as an award, is to be regarded as a decree. Section 54 provides for an appeal from such decree. The form of the award by the court indicated by Section 26 is somewhat important. It is evident from this provisions that an award shall specify the amount awarded under C1. (1)of sub-section (1) of S. 23, and that has reference to the market value of the land, and also the amount if any, respectively awarded under each of the other clauses of the same sub-section, together with the grounds of awarding each of the said amounts. The form of an award to be given by court does not include interest payable under Section 28. If it is included, it is by virtue of Section 28. That can make no difference to its character as interest even as Section 27 enjoins that every award shall also state the amount of costs incurred in the proceedings under part III.