STATE OF GOA Vs. COMMUNIDADE OF PILERNE

JUDGEMENT

(1.) By this appeal, the appellants take exception to the judgment and decree dated 15/11/2006 passed by Ad hoc Additional District Judge-I, at Panaji in Civil Suit No.272/2004 by which the suit filed by the respondent herein has been decreed. The appellants are the defendants in the above suit filed by the respondent for recovery of an amount of Rs.48,79,925/- with further interest at the rate of 15 % p.a. from 15/03/2002 till actual payment. The parties shall hereinafter be referred to as per their status before the trial Court.

(2.) The plaintiff filed the above suit for recovery of the amount by way of interest under Section 34 of the Land Acquisition Act ('the Act' for short). An area admeasuring 290350 square metres bearing Survey No.85/Part situated at Marra village of Bardez Taluka was acquired by defendant no.1 for public purpose i.e. setting up of industrial estate. The acquisition was for the benefit of Goa Daman and Diu Industrial Development Corporation, Panaji for setting up an industrial estate. By award dated 06/08/1993, defendant no.2 fixed the market rate of the acquired land at the rate of Rs.10/- per square metre. Though in the award, defendant no.2 awarded the entire compensation in favour of the plaintiff, defendant no.2 did not disburse the compensation to the plaintiff on the ground that the lands allotted to the tenants had not been demarcated and surveyed separately in their names and also on the ground that the names of the tenants were not removed from survey records. He, therefore, ordered that the amount of Rs.39,94,106/- be kept in revenue deposit till formalities are completed by the Communidade and a clear title was made out by the plaintiff. By lawyer's notice, plaintiff submitted to defendant no.2 a copy of the judgment dated 19/01/1999 passed in Civil Suit No.111/1998/SR, a copy of the judgment and decree dated 20/11/1992 passed by the Mamlatdar, Bardez Taluka and also a copy of the order dated 18/02/1998 passed by the Deputy Collector bringing to the notice of defendant no.2 that all the formalities as required in the award dated 06/08/1993 were completed and the plaintiff had clear title in their favour in respect of the acquired land. The plaintiff called upon defendant no.2 to release compensation to the plaintiff along with the interest as permissible under Act. Thereafter, there was correspondence between plaintiff and the defendant and ultimately by order dated 27/06/2001, defendant no.2 directed that the entire compensation amounting to Rs.39,94,106/- in respect of the acquired land be paid to the plaintiff. The said amount was paid to the plaintiff by cheque dated 06/12/2001 which was handed over to the plaintiff on 15/03/2002. The plaintiff accepted the said compensation on 15/03/2002 under protest, without prejudice to its contention that it was also entitled to interest on the said amount. Thereafter, the plaintiff gave lawyer's notice dated 22/07/2002 under Section 80 of C.P.C. calling upon the defendants to pay the interest on the said amount of Rs.48,79,925/- by way of interest under Section 34 of the Act. Since defendants did not pay the amount, the plaintiff filed the suit for recovery of the amount on 30/06/2004.

(3.) On behalf of the defendants, written statement was filed, inter alia, contending that the suit did not disclose any cause of action and that the suit was barred by limitation. The defendants also claimed that the plaintiff had no title to the acquired land.