GANGADHAR NANAJI MILMILE Vs. WESTERN COALFIELDS LTD

JUDGEMENT

(1.) In all these appeals preferred under Section 20 of the Coal Bearing Areas (Acquisition and Development) Act, 1957 ("said Act" for short) the challenge is to the award passed by the Special Tribunal constituted under Section 14(2) of the said Act to determine the question of enhancement of compensation as provided under Section 73 of the said Act, to the extent it refuses to grant interest as contemplated by Section 34 of the Land Acquisition Act, which according to the appellants is made applicable by Circular dated 12 th February, 1986 issued by the Government of India, Ministry of Energy, Department of Coal. In all these matters the claim is for the interest at the rate of nine per cent per annum for a initial period of one year from the date of taking possession of the land and at the rate of fifteen per cent per annum after expiry of period of one year till the amount of compensation is paid or deposited by the acquiring body.

(2.) The point for determination in all these appeals is as under: Whether the appellant ­ claimants are entitled to interest at the rate of nine percent per annum from the date of taking possession for a period of one year and at the rate of fifteen percent per annum for subsequent years, till the payment or deposit of the amount of compensation by the acquiring body, in terms of Section 34 of the Land Acquisition Act, 1894?

(3.) All these cases arise out of the acquisition under the Coal Bearing Areas (Acquisition and Development) Act, 1957 and not under the provisions of the Land Acquisition Act, 1894. The provisions of the Coal Bearing Areas (Acquisition and Development) Act, 1957 will have to be considered. Section 14 of the said Act deals with determining compensation and subsection (5) therein being relevant is reproduced below: