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The interest on the enhanced amount of compensation for the period of delay in approaching the High

The Executive Engineer, Nimna Dudhna Project, Selu, District Parbhani, Maharashtra vs. The State of Maharashtra & Ors. Etc. Etc. – Civil Appeal Nos. 246 – 255 of 2020 – JANUARY 15, 2020. 

The Supreme Court Bench comprising of Justice M. R. Shah and Justice Ashok Bhushan gave the following judgment.

Issue – Whether for the delayed period the claimants shall be entitled to the statutory benefits and the interest under the Land Acquisition Act?

The High Court of Judicature of Bombay, Bench at Aurangabad partly allowed the First Appeal Nos. 4083-4092 of 2016 and enhanced the amount of compensation for the lands acquired, the acquiring body – The Executive Engineer has preferred the appeals.

There was a delay of five and a half years in preferring the first appeals. As there was a delay of five and a half years, it is submitted that assuming that the High Court is justified in enhancing the amount of compensation at par with the other claimants. It is submitted that for the delayed period the claimants shall also not be entitled to any statutory benefits.

It is submitted by the learned Advocate for appellant that as such there was a delay of five and a half years and therefore such the same was not required to be condoned by the High Court. It is also submitted that the High Court is also not justified in granting the statutory benefits and the interest on the enhanced amount of compensation for the period of delay.

The learned counsel of the respondents opposed the appeals and said that the original claimants claimed the parity in compensation with the other land owners. When the High court condoned the delay, it was not conditional to deny the statutory benefits and the interest for the interregnum period. It is submitted that the order had attained finality and therefore it is not open for the appellants to submit that the High Court ought not to have awarded the benefits. The counsel further stated that the claimants are entitled to the same compensation for the land acquired for the same project vide the same notification. It was therefore prayed to dismiss the present appeals.

The Court stated that merely because at the time of condoning the delay no such condition was imposed that the claimants shall not be entitled to the interest on the enhanced amount of compensation for the period of delay, the appellant who is otherwise a public body cannot be saddled with the liability to pay the interest for the period of delay, which is not at all attributed to them.

The Court considering the fact that the delay was condoned, entertained the appeals and enhanced the amount of compensation. And further the order condoning the delay was not challenged by the appellant in the relevant time. By observing the judgments of various cases, the interest is not given for the condonation of delay. Therefore, the appeals deserve to be quashed and set aside. The Court allowed all the appeals in part. The common impugned judgment and order passed by the High Court is modified to the extent denying the interest to the claimants. Rest of the judgment and award is passed by the High Court is confirmed.

–  Vydurya Selvi Baskaran

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