Full Judgment Text
1
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 5517 OF 2005
ARESH @ ASHOK J. MEHTA (D) BY
PROP. LRS. … APPELLANT
Versus
SPL. TAHSILDAR, BALGAUM
KARNATAKA & ANR. … RESPONDENT(S)
J U D G M E N T
SUDHANSU JYOTI MUKHOPADHAYA, J.
This appeal has been preferred by the appellant
th
landlord against the judgment & order dated 6
August, 1999 passed by the Division Bench of the
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High Court of Karnataka in Writ Appeal No. 8110/1996
whereby the Division Bench rejected the prayer for
st
interest on amount of compensation w.e.f. 1 March,
1974 and thereby affirmed the order passed by the
learned Single Judge but held that the appellant
st
landlord is entitled for interest w.e.f. 1 March,
1984.
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2. The appellant was the owner of the land bearing
R.S. No. 16/1, measuring 7 acres 21 guntas in
villageExamba, Taluka Chikodi, Karnataka. The
land in question was vested with the State for
st
grant in favour of the tenant w.e.f. 1 March,
1974 under Section 44 of the Karnataka Land
Reforms Act, 1961 as amended by Act No.1 of 1974
(hereinafter referred to as the ‘Act’).
3. The Tehsildar, Chikodi under Section 48A(7) and
Section 53 heard the appellantlandlord and the
tenant and determined the quantum of amount
payable at Rs. 17,244/ vide order dated
28.2.1983. It was held that a sum of Rs.
2,000/ is to be paid as first instalment within
30 days from the date of the receipt of the
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order and the balance in 19 equated annual
instalments with interest @ 5½% as indicated
therein. The compensation amount was paid to
the appellant in between the years 19831985 but
without any interest. In this background, the
appellant moved in the Court of Special
Tehsildar, Chikodi with an application that his
rd
1/3 share in the house and well situated in RS
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No. 16/1 of Examba village vested with the
State therefore he claimed interest on the
st
compensation amount @ 5½% per annum w.e.f. 1
March, 1974 till the payment of the entire
amount. The details of amount of compensation,
the amount of interest acquired on the
compensation amount, the amount paid to the
appellant and the amount as was due to him on
th
25 May, 1988 were shown in the representation.
The appellant claimed a sum of Rs. 19,116.37.
The Special Tehsildar, Chikodi vide letter dated
th
7 June, 1988 rejected his prayer and informed
that as per Circular No. RD 171:LRM86 dated
24.11.1986 interest has to be paid on the
amount paid through the National Savings
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Certificate and, therefore, no interest is
payable on the amount received in cash.
4. The order of rejection was challenged by the
appellant by filing a writ petition no. 18591/88
before the Karnataka High Court; a prayer was made
to direct the respondents to pay interest for
delayed payment w.e.f. 1.3.1974. The Circular dated
24.11.1986, was also challenged by the appellant, as
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the same was referred to reject his claim. The
learned Single Judge by his judgment held that no
interest is payable towards the amount paid in cash.
It was further held that interest @5 ½% is payable,
if the compensation amount is paid through National
savings certificates. On challenge, the Division
Bench of the High Court upheld the order passed by
learned Single Judge but held that in the facts and
circumstances of the case the appellant is entitled
st
for interest w.e.f. 1 March, 1984.
5. Learned counsel for the appellant contended that
the examples cited in Circular dated 24.11.1986 is
illegal and contrary to the provisions of the Act
and the clarification given therein. He secondly
contended that the tenanted lands having vested with
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st
the State w.e.f. 1 March, 1974, the owners of the
land cannot be deprived of the interest on
compensation amount for which they are entitled from
the date the principal amount become due. He
thirdly contended that once the amount of
compensation payable is determined in respect of the
delayed payment then the land owner is also entitled
to the interest amount even if the principal amount
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is paid in cash. It was also contended that when
Circular dated 24.11.1986 itself makes it clear for
investment of the amount which shall carry interest
@ 5½%, there is no bar as such either under the
Act or the Rules to deprive the landowner from the
interest in case the amount is paid in cash.
Therefore, according to the learned counsel the
appellant is entitled for payment of interest
towards the amount paid in cash in respect of
delayed payment of the principal amount by allowing
the appeal.
6. On the other hand, it was contended by learned
counsel for the respondent that in the absence of
any provision for payment of interest for the
compensation paid in cash, the learned High Court
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has rightly rejected such prayer.
7. The question that arises for our consideration
in this case is:
“Whether with respect to the delayed
payment of the principal amount, the
appellant is entitled for any interest
towards the amount paid in cash and thereby
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the Circular dated 24.11.1986, contrary to
such extend is liable to be set aside?
8. Heard learned counsel for the parties and
carefully examined the impugned order passed by the
learned Single Judge and the Division Bench of the
High Court. For determination of the issue, it is
necessary to notice the relevant provisions of the
Act in so far as determining the mode of payment of
Principal amount, interest, etc.
9. The Karnataka Land Reforms Act, 1961 was enacted
for conferment of ownership on tenants, ceiling on
land holdings and for certain other matters. Chapter
III of the Act deals with the conferment of ownership
on tenants. Under Section 44, all lands held by or
in the possession of tenants immediately prior to the
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date of commencement of the (Amendment) Act stand
transferred and vests in the State Government with
st
effect from 1 March, 1974, i.e. the date of
commencement of the (Amendment) Act No.1 of 1974.
All rights, title and interest vesting in the owners
of such lands and other persons interested in such
st
land ceases with effect from 1 March, 1974 and
vests absolutely with the State Government free from
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all encumbrances. Under clause (b) of sub section
(2) of Section 44 amounts in respect of such lands
which become due on or after the date of vesting is
payable to the State Government and not to the land
owner, landlord or any other person. The State
Government takes possession of such lands forthwith.
Under clause (g) of sub section (2) of Section 44
permanent tenants, protected tenants and other
tenants holding such lands are entitled for rights
and privileges which is accrued to them in such lands
before the date of vesting against the landlord as
apparent from Section 44 and quoted hereunder:
“44. Vesting of lands in the State
Government .—(1) All lands held by or in the
possession of tenants (including tenants
against whom a decree or order for eviction
or a certificate for resumption is made or
issued) immediately prior to the date of
commencement of the Amendment Act, other
than lands held by them under leases
permitted under Section 5, shall, with
effect on and from the said date, stand
transferred to and vest in the State
Government.
JUDGMENT
(2) Notwithstanding anything in any decree
or order of or certificate issued by any
Court or authority directing or specifying
the lands which may be resumed or in any
contract, grant or other instrument or in
any other law for the time being in force,
with effect on and from the date of vesting
and save as otherwise expressly provided in
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this Act, the following consequences shall
ensue, namely:—
(a) all rights, title and interest vesting
in the owners of such lands and other
persons interested in such lands shall
cease and be vested absolutely in the State
Government free from all encumbrances;
(b) [x x x x x] amounts in respect of such
lands which become due on or after the date
of vesting shall be payable to the State
Government and not to the land owner,
landlord or any other person and any
payment made in contravention of this
clause not be valid;
(c) all arrears of land revenue, cesses,
water rate or other dues remaining lawfully
due on the date of vesting in respect of
such lands shall after such date continue
to be recoverable from the landowner,
landlord or other person by whom they were
payable and may, without prejudice to any
other mode of recovery, be realised by the
deduction of the amount of such arrears
from the amount payable to any person under
this Chapter;
(d) no such lands shall be liable to
attachment in execution of any decree or
other process of any court and any
attachment existing on the date of vesting
and any order for attachment passed before
such date in respect of such lands shall
cease to be in force;
JUDGMENT
(e) the State Government may, after
removing any obstruction which may be
offered, forthwith take possession of such
lands:
Provided that the State Government shall
not dispossess any person of any land in
respect of which it considers, after such
enquiry as may be prescribed, that he is
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prima face entitled to be registered as an
occupant under this Chapter;
(f) the landowners, landlord and every
person interested in the land whose rights
have vested in the State Government under
clause (a), shall be entitled only to
receive the amount from the State
Government as provided in this Chapter;
(g) permanent tenants, protected tenants
and other tenants holding such lands shall,
as against the State Government, be
entitled only to such rights or privileges
and shall be subject to such conditions as
are provided by or under this Act; and any
other rights and privileges which may have
accrued to them in such lands before the
date of vesting against the landlord or
other person shall cease and determine and
shall not be enforceable against the State
Government.”
10. The tenants are registered as occupants of land
on certain conditions under Section 45 and Section 46
states that if the tenant held land from one or more
than one landlord he (tenant) is entitled to choose
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particular land.
11. Every landowner, landlord and all other persons
interested in the land are entitled for amount
payable, for the extinguishment of their rights in
the lands vested in the State Government determined
with reference to the net annual income derivable
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from the land in accordance with Section 47, as
quoted hereunder:
“47. Amount payable .—(1) every landowner,
landlord and all other persons interested
in the land shall, for the extinguishment
of their rights in the lands vesting in the
State Government under subsection (6) of
section 15 or section 20 or section 44, be
entitled to an amount determined with
reference to the net annual income
derivable from the land or all the lands,
as the case may be, in accordance with the
following scale, namely:—
(i) for the first sum of rupees five
thousand or any portion thereof of the net
annual income from the land, fifteen times
such sum or portion;
(ii) for the next sum of rupees five
thousand or any portion thereof of the net
annual income from the land, twelve times
such sum or portion;
(iii) for the balance of the net annual
income from the land, ten times such
balance:
JUDGMENT
Provided that,—
(i) if the tenant in respect of the land is
a permanent tenant, the amount payable
shall be sixtimes the difference between
the rent and the land revenue payable for
such land;
(ii) if the tenant holds land from
intermediaries the amount shall be paid to
the landowner and the intermediaries in
the same proportion in which the rent paid
for the land by the tenant was being
appropriated by them immediately before the
date of vesting;
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(iii) if the land vesting in the State
Government is D class land referred to in
Part A of Schedule I or if the landlord is,
—
(1) a small holder;
(2) a minor;
(3) a widow;
(4) a woman who has never been married;
(5) a person who is subject to [such
physical or mental disability as may be
prescribed] ; or
(6) such soldier or seamen whose lands vest
in the State Government under section 44,
an amount equal to twenty times the net
annual income from such land shall be
payable.
(2) For the purpose of subsection (1), the
net annual income from the land shall be
deemed to be the amount payable as annual
rent in respect of the land as specified in
section 8. But where in a land assessed as
wet land or dry land the landlord has
raised fruit bearing trees, the annual
income for purpose of subsection (1)
[shall, subject to such rules as may be
prescribed, be determined] on the basis of
assessment for garden land which could have
been levied having regard to the nature of
the fruit bearing trees.
JUDGMENT
(3) Where there are wells or other
structures of a permanent nature on the
land constructed by the landlord the value
thereof calculated in the prescribed manner
shall also be payable.
(4) Notwithstanding anything in sub
sections (1) and (3), the aggregate amount
payable according to the said subsections
shall not exceed rupees two lakhs.]”
12. Section 48 relates to constitution of Tribunals.
Under Section 48A, on receipt of an application from
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a tenant for being registered as an occupant, the
Tribunal is required to make an enquiry after
publication of a public notice in the village in
which the land is situated calling upon the landlord
and all other persons having an interest in the
land. Under Section 48B, the Tahsildar is required
to determine the amount payable on receipt of the
orders passed under sub section (4) or sub section
(5) of Section 48A by the Tribunal,
13. The Tahsildar while determining the amount under
Section 48B is required to determine the encumbrances
and the amount payable in terms of Section 50 of the
Act; the mode of payment of the amount, which is
relevant for the present case, is stipulated under
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Section 51 which reads as follows:
.—[(1)]
“51. Mode of payment [of the amount]
[Save as provided in Section 106] the
[amount] payable to any person under
Section 47 shall subject to the provisions
of Section 50,—
[(a) be paid in cash in a lumpsum if the
amount payable does not exceed [two
thousand rupees] and
(b) if the amount payable exceeds [two
thousand rupees], the amount up to [two
thousand rupees] shall be paid in cash and
the balance shall be paid in [non
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transferable and nonnegotiable] bonds
carrying interest at the rate of [five and
a half per cent] per annum and of
guaranteed face value maturing within a
specified period not exceeding twenty
years:
Provided that the amount payable under the
bonds issued under this clause may be paid
in such number of instalments not exceeding
twenty as may be prescribed:]
[Provided further that the amount payable
shall, subject to such rules as may be
prescribed, be paid,
(i) in the case of a minor, [a person who
has attained the age of sixty five years] a
woman who has never been married, a small
holder, a person subject to the prescribed
physical or mental disability and subject
to clause (ii), a widow,—
(a) in a lumpsum where the amount payable
does not exceed fifty thousand rupees,; and
(b) where the amount payable exceeds fifty
thousand rupees, the first fifty thousand
rupees in a lumpsum and the balance in non
transferable and nonnegotiable bonds
carrying interest at the rate of five and
half per cent per annum and of guaranteed
face value maturing within a specified
period not exceeding twenty years;
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(ii) in the case of a widow, if she so
elects in writing, in the form of annuity
during her life time, a sum determined in
such manner as may be prescribed, which
shall not be less than the net annual
income referred to in subsection (2) of
section 72.
Explanation: —For the purpose of this clause
widow, minor and a person subject to
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physical or mental disability include, a
woman who is a widow, a person who is a
minor, a person subject to physical or
mental disability respectively at the time
when the amount payable is determined:
Provided also that in relation to a small
holder the second proviso shall have effect
as if it was in force on and from the First
day of March, 1974.]
[(2) Notwithstanding anything in sub
section (1), on or after 1st March, 1984,
the balance and interest thereon payable in
accordance with clause (b) of subsection
(1) of the second proviso to the said sub
section shall, in lieu of the bonds
specified therein, be paid in the following
manner, namely:—
(a) the interest accrued at the rate of
five and a half per cent per annum till 1st
March, 1984 remaining unpaid shall be paid
in five consecutive annual, as far as may
be, equal instalments commencing from 1st
March, 1984 in National Savings
Certificates;
(b) the whole or, as the case may be, part
of the balance specified in subsection
(1), payable before 1st March, 1984
remaining unpaid shall be paid in five
consecutive annual, as far as may be, equal
instalments commencing from the said date
in National Savings Certificates; and
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(c) the whole or, as the case may be, part
of the said balance payable on or after 1st
March, 1984 shall be paid in ten
consecutive annual, as far as may be equal
instalments commencing from the said date
in National Savings Certificates:
Provided that along with each of the
instalments referred to in items (b) and
(c), the interest thereon from 1st March,
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1984 at the rate of five and a half per
cent per annum upto the date of payment
thereof shall also be paid in National
Savings Certificates.]”
14. Under Section 52, payment of the amount to the
landowner/landlord shall be a full discharge of the
liability for payment of the amount and no further
claims or payment of amount shall lie against the
State Government or any other person.
15. From the aforesaid provisions, it is clear that
the all lands held by or in the possession of tenants
prior to 1.3.1974 has been transferred and vested in
the State Government with effect from 1.3.1974. All
rights, title and interest vesting in the owners of
such lands stand cease and is vested absolutely with
the State Government. The amount in respect of such
lands which becomes due on or after 1.3.1974 is only
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payable to the State Government and not to the land
owners/landlords. The landowners/landlords are
entitled to receive the amount only from the State
Government and not from any other person.
The amount payable to the landowner/landlord
for the extinguishment of their rights is to be paid
in the manner prescribed under Section 51. The
amount upto Rs. 2,000/ is to be paid in cash and
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balance of the amount is payable in nontransferable
and nonnegotiable bonds carrying interest @5 ½% per
annum.
Therefore, it is clear that no provision has
been made in the Act for payment of interest if any
amount is paid in cash. On the other hand, the State
Government is entitled to earn interest by
establishment of separate fund under Section 53A
which is created out of the amount of premium
collected from the tenants or subtenants of land
belonging to the institutions referred to in Section
106.
16. The question that arises further is that whether
the appellant is entitled for payment of interest as
per Circular No. ND 171 LWM 86 dated 24.11.1986 or as
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a matter of general rule.
17. Doubts were raised time and again by some of the
Deputy Commissioners of the Districts about the mode
of calculation and disbursement of amount. The same
was made clear by the State Government by its
Circular dated 24.11.1986 which reads as follows:
th
“ Circular No. ND 171 LWM 86 dt. 24 Nov.
1986.
CIRCULAR
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Doubts have been raised time and again
by some of the Deputy Commissioners of the
Districts, about the mode of calculation
and disbursement of amount in national
savings certificates for the lands lost
under the provisions of Karnataka Land
Reforms Act, 1961. The field officers are
hereby clarified once again the method to
be followed in commuting the amount and
interest payable to the exlandlords.
1. The entire amount due to the exland
lords shall be calculated taking 1.3.1974
as the cut of date for the purpose of
calculating interest.
2. On the total principal amount interest at
the rate of 51/2% shall be calculated
till 1.3.1984. The principal amount
means the entire amount due to the Ex
Landlords (1.3.1974 to 1.3.1984) and the
subsequent ten instalments also. The
Principal amount so calculated will bear
on interest at 51/2% per annum from
1.3.1974 to 1.3.1984. The amount so
arrived both principal and interest shall
be paid in National Savings Certificates.
3. Further the interest @ 51/2% shall be
calculated on the entire principal amount
from 1.3.1984 till the date of purchase
of National savings certificates, and
paid in cash at the time of handing over
the national savings certificates.
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4. The fraction amount of less than Rs.50.00
shall also be paid in cash. The action on
all these should be simultaneously taken
For Example:
Total amount 1. Rs.3,000/
Determined: 2. Rs.2,000/ paid in
cash.
3. Amount due is Rs.1,000/
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(in 20 instalments from
1.3.74 to 1.3.84)
Interest at 51/2% from
1.3.1974 date
Of vesting) till 1.3.84
550/
To be invested in N.S. Cas
550/
4.Interest at 51/2% from
1.3.84 till the date
Of purchase of N.S. Cocash
5. Fraction, if any, below
Rs. 50/ each.
The above guidelines shall be followed
scrupulously in all cases. x x x x x x x x
Sd/ S. Ashok
Under Secretary to Govt.
Rev. Dept.
(Land Reforms)
No. RS.KLR.HP.8687 Belgeum Dt.
27.12.1986
Copy forwarded to all the Tehsildars
and Spl. Tehsildar,
Land Reforms, in Belgaum Distt. for
information and further
necessary action.
JUDGMENT
Sd/
for Spl. Dy.
Commissioner
Belgaum.”
18. The aforesaid clarification made by the State
Government makes it clear that the entire amount due
to the exlandlords shall be calculated taking
1.3.1974 as the cut off date for the purpose of
calculating interest. However, we find that the
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example given therein is confusing which does not
make it clear whether amount Rs.3000/ shown therein
includes the interest w.e.f. 1.3.1974 apart from the
principal amount to which the exlandlords are
entitled.
19. As per Circular dated 24.11.1986, as noticed
above, the entire amount of compensation payable to
the exlandlords along with interest is to be
calculated taking 1.3.1974 as the cut off date upto
1.3.1984. But if the amount is paid earlier then upto
the date of payment. Out of the aforesaid total
amount two thousand rupees is to be paid in cash and
the rest through National Savings Certificates. If
the amount is not paid on or before 1.3.1984,
provisions have been made to pay further interest @ 5
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½% on the entire principal amount from 1.3.1984 till
the date of purchase of the National Savings
Certificates; that means the authorities are
required to either invest the amount in National
Savings Certificates or pay interest till the amount
is invested.
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20. There is no ambiguity in the clarification made
by circular dated 24.11.1986, but the example cited
therein is not only confusing but also contradictory
to the main clarification.
21. Substantive provision of ‘mode of calculation’
as prescribed under Section 51 has been clarified by
Circular dated 24.11.1986. The example cited in the
circular is merely an illustration. If the
illustration is conflicting with the clarification of
the substantive law/provision or if the illustration
is vague, the clarification will prevail over the
illustration. In such case, a person who is entitled
for the interest as per the clarification aforesaid
cannot be deprived of or denied his right relying on
the illustration.
JUDGMENT
22. The question of payment of interest on
compensation amount on acquisition of land fell for
consideration before a larger bench of four judges of
this Court in the case of Satinder Singh vs. Umrao
Singh reported in AIR 1961 SC 908 . That was a case
of property which was acquired under the East
Punjab Requisition of Immovable Property (Temporary
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Powers) Act (48 of 1948). The Act was replaced by
Punjab Requisitioning and Acquisition of Immovable
Property Act (11 of 1953). Under 1948 Act,
compensation was to be paid in accordance with
provisions of that Act. In the said case, the party
claimed the interest on the amount of compensation.
The argument was that the amount of compensation
awarded should carry a reasonable interest from the
date of acquisition as the claimants lost possession
of their property. The said argument earlier was
rejected by the High Court principally on the ground
that relevant Act of 1948 makes no provision for
payment of interest and omission to make such a
provision amounts in law to an intention not to award
interest in regard to compensation amount determined
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under it. This Court noticed the contention raised
on behalf of the landlords and held as follows:
“ 17. What then is the contention raised
by the claimants? They contend that their
immovable property has been acquired by the
State and the State has taken possession of
it. Thus they have been deprived of the
right to receive the income from the
property and there is a time lag between
the taking of the possession by the State
and the payment of compensation by it to
the claimants. During this period they have
been deprived of the income of the property
and they have not been able to receive
interest from the amount of compensation.
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Stated broadly the act of taking possession
of immovable property generally implies an
agreement to pay interest on the value of
the property and it is on this principle
that a claim for interest is made against
the State. This question has been
considered on several occasions and the
general principle on which the contention
is raised by the claimants has been upheld.
In Swift & Co. And Board of Trade (1925)
AC520 at p.532 it has been held by the
House of Lords that “on a contract for the
sale and purchase of land it is the
practice of the Court of Chancery to
require the purchaser to pay interest on
his purchase money from the date when he
took, or might safely have taken,
possession of the land”. This principle has
been recognised ever since the decision in
Birch v. Joy (1852) 3 H L C 565 . In his
speech Viscount Cave, L.C., added that
“this practice rests upon the view that the
act of taking possession is an implied
agreement to pay interest”, and he points
out that the said rule has been extended to
cases of compulsory purchase under the
Lands Clauses Consolidation Act, 1845. In
this connection distinction is drawn
between acquisition or sales of land and
requisition of goods by the State. In
regard to cases falling under the latter
category this rule would not apply.
JUDGMENT
18. In Inglewood Pulp and Paper Co. Ltd.
And New Brunswick Electric Power
Commission, 1928 AC 492(AIR 1928 P C 287)
it was held by the Privy Council that “upon
the expropriation of land under statutory
power, whether for the purpose of private
gain or of good to the public at large, the
owner is entitled to interest upon the
principal sum awarded from the date when
possession was taken, unless the statute
clearly shows a contrary intention”.
Dealing with the argument that the
expropriation with which the Privy Council
was concerned was not effected for private
gain, but for the good of the public at
large, it observed “but for all that, the
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owner is deprived of his property in this
case as much as in the other, and the rule
has long been accepted in the
interpretation of statutes that they are
not to be held to deprive individuals of
property without compensation unless the
intention to do so is made quite clear. The
right to receive the interest takes the
place of the right to retain possession and
is within the rule”. It would thus be
noticed that the claim for interest
proceeds on the assumption that when the
owner of immovable property loses
possession of it he is entitled to claim
interest in place of right to retain
possession. The question which we have to
consider is whether the application of this
rule is intended to be excluded by the Act
of 1948, and as we have already observed,
the mere fact that Section 5(3) of the Act
makes Section 23(1) of the Land Acquisition
Act of 1894 applicable we cannot reasonably
infer that the Act intends to exclude the
application of this general rule in the
matter of the payment of interest. That is
the view which the Punjab High Court has
taken in Surjan Singh v. East Punjab
Government ( AIR 1961 SC 908) and we think
rightly.
19. ……. When a claim for payment of
interest is made by a person whose
immovable property has been acquired
compulsorily he is not making claim for
damages properly or technically so called;
he is basing his claim on the general rule
that if he is deprived of his land he
should be put in possession of compensation
immediately; if not, in lieu of possession
taken by compulsory acquisition interest
should be paid to him on the said amount of
compensation. In our opinion, therefore,
the fact that Section 5(1) deals with
compensation both for requisition and
acquisition cannot serve to exclude the
application of the general rule to which we
have just referred.”
JUDGMENT
Page 23
24
23. In view of the specific clarification made vide
th
Circular dated 24 November, 1986 and decision of
this Court in Satinder Singh (Supra), we hold that
the appellant is entitled for interest w.e.f.
1.3.1974 @ 5 ½% till the total amount was paid to
him. The respondent cannot deny the interest on the
amount of compensation to which the appellant is
entitled as a matter of general rule, and in the
light of the clarification made by Circular dated
24.11.1986.
24. The orders passed by the Single Judge and the
Division Bench of the Karnataka High Court are,
accordingly, set aside. The respondents are directed
to pay the appellant interest @ 5 ½% per annum w.e.f.
1.3.1974 as ordered above within three months. The
JUDGMENT
appeal is allowed with aforesaid observation and
direction, but there shall be no order as to costs.
……………………………………………………………….J.
( G.S. SINGHVI )
……………………………………………………………….J.
( SUDHANSU JYOTI MUKHOPADHAYA)
NEW DELHI,
MARCH 11, 2013.
Page 24