STATE OF MADHYA PRADESH Vs. GARUD CHATURVEDI

JUDGEMENT

(1.) The State of Madhya Pradesh has preferred this appeal under S. 54 of the Land Acquisition Act, 1894, for short, the 'Act', against the judgment and decree dated 21-4-1993, passed in Case No. 1/93- Reference by the Second Additional Judge to the Court of District Judge, Gwalior, whereby the Reference under Section 18 of the Act at the instance of the Department of the State Government for payment of the interest amounting to Rs. 5,67,804/- to the landowners, the claimants, on the amount of compensation awarded by the Land Acquisition Officer, Gwalior, for short, the LAO, has been dismissed as not maintainable.

(2.) The brief resume of facts is necessary. On issue of notification dated 31-3-1989 under Section 4(1) of the Act, the land admeasuring 11.317 Hec., situated in village Bajhere, Tahsil Bhitarwar, District Gwalior, was acquired for the State Department, Water Resources Division, Gwalior. The LAO has, in Case No. 64-A /32-87-88, passed an award on 15-10-1991, for payment of compensation of Rs. 3,48,560/- and interest thereon at the rate of 42% under S. 23-A(I), amounting to Rs. 1,08,062/- and solatium under Section 23(II) at the rate of 30%, making up the total of Rs. 5,61,190/-. The State deposited Rs. 6,17,310/ - which included the accrued interest till date. The claimants, by a writ petition filed in this Court, namely, Misc. Petition No. 679 of 1992, claimed the interest from the date of taking over the possession, i.e. 3-2-1985. This Court directed the claimants to approach the LAO. Ultimately, the LAO issued the notice to the Department which objected for the payment of interest on the ground that while awarding the compensation, the value of the land was determined as prevalent in the year 1988 while at the time of taking possession, i.e. on 3-2-1985, the market value of the land was only Rs. 3,673/- per Bigha. Therefore, in the circumstances, the claimants have received much more amount than the market value and besides, 12% interest and 30% solatium.

(3.) After hearing objections, the LAO, by supplementary award under Section 34 of the Act awarded interest of Rs. 5,67,804/-. As the State Department was aggrieved of the award of interest, it applied under Section 18 of the Act as "person interested" for making a Reference. The Collector referred the matter under Section 18 of the Act to the Reference Court. The land-owners raised a preliminary objection that the Reference is incompetent. The Reference Court, in view of the provisions of Section 50(2). of the Act and the decision of the Supreme Court in the case of Santosh Kumar v. Central Warehousing Corporation, AIR 1986 SC 1164, held the Reference to be not maintainable and dismissed the same. Aggrieved of this order, the State has preferred this appeal.