RAM SARUP (DIED) Vs. UNION OF INDIA

JUDGEMENT

(1.) Land belonging to the petitioners, situated in village Passiana, Tehsil and District Patiala was satisfied for acquisition by the Government of India under Scheme No. PB/219/ACC. The Land Acquisition Collector announced the award (Annexure P-1) dated 27.3.1991 awarding compensation to the land owners. The compensation by way of cheques was also tendered by the Collector on 19.4.1991. These cheques were presented for encashment on 24.4.1991 but were ultimately cleared on three different dates with respect to each of the petitioners. i.e. 31.7.1991, 2.8.1991 and 3.8.1991. The petitioners have pleaded in this Writ Petition that as the cheques had not been cleared for several months of their presentation on account of the stoppage of payment at the instance of the respondents, they were entitled to payment of interest at the rate of 24% per annum for the aforesaid period.

(2.) On notice of motion, a reply has been filed by the respondents and the facts given above have not been denied. It has, however, been pleaded that as the possession of the land had been taken from the petitioners only on 3.2.1992, they had utilised the land for cultivating their crops till that date and as such they were not entitled to any interest on the delayed payment. Reliance has also been placed on Annexure R-1 dated 3.2.1992 in support of this plea. It has further been pleaded that a shortage of funds had necessitated a direction to the Banks to stop payment of the compensation amount.

(3.) The petitioners have also filed a replication controverting the stand of the respondents and it has been categorically averted that the possession of the land had in fact been take from the petitioners prior to the issuance of the cheques on 19.4.1991.