CHILUKURI RAMARAO Vs. GOVT OF ANDHRA PRADESH

JUDGEMENT

(1.) This writ appeal has been preferred against the order dated 20-10-1997 passed in W.P. No.21766/96 refusing to grant interest on the delayed payment of interest on the compensation awarded to the petitioners' lands which have been acquired by the Slate.

(2.) The facts, giving rise for filing of the writ petition have been exhaustively set out in the impugned order. Bereft of the details, the relevant facts are as under: The lands of the petitioners were sought to be acquired by the State for public purpose compulsorily and the possession thereof was also taken on 15-12-1984. Though initially the said acquisition was objected to by the petitioners, a compromise was arrived at between the petitioners and the State and a compromise Award i.e., Award No.2/89 dated 30-8-1989 was passed under Section 11(2) of the Land Acquisition Act, 1894 (hereinafter called as Act). The compromise provided for the payment of compensation at the rate of Rs.48.00 per square yard and 30% solatium. There was no clause providing for payment of interest on the compensation awarded. On 3-9-1989 the State deposited Rs.15,22,160.70 ps. towards the compensation amount and solatium and the same had been withdrawn by the petitioners. As the claim for interest on the compensation amount was refused by the State, the petitioners filed W.P. Nos.4272/90 and 8515/90 claiming interest from the date of taking possession i.e., 15-12-1984. The State resisted both the writ petitions on the ground that the Award was passed on compromise under Section 11(2) of the Act and the provisions under Section 34 of the Act are not applicable. Both the writ petitions were disposed of by a common judgment dated 24-3-1992 directing the State to pay interest on the amount of compensation awarded as per the provisions of the Land Acquisition Act. That order has become final as the appeals preferred were dismissed.

(3.) The petitioners filed Contempt Case No.55/93 as the respondents failed to deposit the interest as directed in the said writ petitions. The petitioners filed E.P.42/93 claiming a sum of Rs.18,25,439.37 ps. as per the directions in the writ petition Nos.4272/90 and 8515/90. As against that amount claimed in the E.P. and during pendency of Contempt Case, the State deposited in compliance of the directions of this Court Rs.17,73,350-00. But, before that amount was ordered to be withdrawn, the State, through the Revenue Divisional Officer, Narasaraopet, filed E.A.No.501/93. contending that the petitioners are entitled to only for a sum of Rs.9,85,242.65 ps. towards interest and that the State, by mistake, deposited the amount in excess and that the excess amount of Rs.7,88,870-35 should be returned to the Government. A calculation memo was also filed to that effect. The learned Subordinate Judge by his order dated: 24-2-1994 held that the petitioners are entitled to claim interest upto 3-9-1989 i.e., the day on which the entire compensation amount was deposited into Court and the interest payable upto that date worked out to Rs.9,85,442.65 ps. as per the provisions of Section 34 of the Act and that the Government is entitled to get back the excess amount of Rs.7,87,872.35 together with the accrued interest thereon as that amount was kept in fixed deposit, and therefore, allowed the petition. In effect, the learned Sub-Judge disallowed that claim of the petitioners for interest on interest beyond 3-9-1989. Challenging the said order of the Sub-Judge, the petitioners filed the Writ Petition No.8869/94. That writ petition was dismissed by order dated 6-10-1996 upholding the order of the learned Subordinate Judge. Thereafter, the petitioners filed W.P.No.21766/96 to direct the respondents to pay equitable interest on the interest amount due from 3-9-1989 till the date of deposit together with additional market value at 12% from the date of taking over possession of the land. Our learned brother M.H.A. Ansari, J dismissed that petition by his order dated: 20-10-1997 observing that the petitioners have been paid compensation viz., market value and 30% solatium thereon which worked out to Rs.15,22,160.70 and that has been paid to the petitioners on 3-9-1989 as per the compromise Award dated 30-8-1989 and the interest granted by this Court in W.P. Nos.4272/90 and 8515/90 dated: 24-3-1992 was duly calculated from the date of taking possession i.e., 15-12-1984 to 3-9-1989 and that amount worked out to Rs.9,85,442.65 and that the learned Subordinate Judge calculated that amount as payable to the petitioners and the excess amount of Rs.7,87,872.35 which was deposited by the Court in fixed deposit was liable to be paid to the State with interest accrued thereon, and that the petitioner's claim for interest on interest is mis-conceived and the same is liable to be rejected. The learned Judge further held that as the petitioner's claim was disallowed by the order in W.P. No.8869/94, dated 6-10-1996, the same cannot be reagitated in this writ petition on the principles of res judicata. Challenging the said order, the petitioners have come up with this appeal.