IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE FIFTEENTH DAY OF SEPTEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION NO : 13000 of 2007 Between: 1 Bandi Suseelamma W/o Pnchala Reddy 2 Bandi Penchala Narsa Reddy S/o Penchala Reddy R/o Penubarthi, Village, Rapur Mandal, Nellore District. ..... PETITIONER(S) AND 1 The Government of Andhra Pradesh repby its Secretary Irrigation &CAD Department, Secretariat, Buildings, Hyderabad. 2 The Special Collector, Telugu Ganga Project Neelagiri Sangham, Near Police Quarters, Nellore Nellore District. .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Aﬃdavit ﬁled herein the High Court will be pleased to issue a Writ of Mandamus or any other appropriate writ or direction declaringthe action ofthe respondents in not paying teh interet from 9-8-1991 to 30-3-2000 as per the provisions of Land acquisition Act as ilelgal and arbitrary and Consequently direct the respondents to pay the interest amount as per the proceedigns Rc. D1/2735/90 dt 19-2-2005 andthe interest onthe said amount at the rate of 15% from 1-4-2000 to till the date of payment, andpass such other or further order or orders as deem ﬁt and proper inthe circumstances of the case. Counsel for the Petitioner:MR.P.GANGA RAMI REDDY Counsel for the Respondent No.: GP FOR LAND ACQUISITION The Court made the following : THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION NO : 13000 of 2007 ORDER: An extent of Ac.9.16 cents of land in Survey Nos.2 and 3 of Kasulanativarikandriga Village, Rapur Mandal, Nellore District, was acquired by the Government for the purpose of Kandaleru reservoir. The petitioners, on the one hand, and one Mr. Narasa Reddy, on the other, laid claims for compensation. An award was passed on 10.06.1991. The Land Acquisition Oﬃcer made a reference to the Court of Sub-ordinate Judge, Gudur, under Section 30 of the Land Acquisition Act (for short ‘the Act’), and made a deposit of the compensation in two cheques for a sum of Rs.51,579/- and Rs.57,788/-. Even before the reference Court had undertaken any further steps, one of the claimants ﬁled O.S.No134 of 1991 in the Court of Sub-ordinate Judge, Gudur. Therefore, no further steps were taken in the reference. The suit was ultimately dismissed on 27.12.1996. When the petitioners approached the reference Court, it emerged that the cheques for compensation were not received at all. On a letter addressed by the learned Judge of the reference Court, the Land Acquisition Oﬃcer forwarded the sum, through cheques, dated 14.03.1998. Even this could not be realized for want of funds. Ultimately, it was only on 30.03.2000, that the amount was deposited into the Court. The petitioners claim that they were not paid interest, as provided for under Section 34 of the Act. The respondents ﬁled a counter aﬃdavit stating inter alia that with the deposit of the amount through cheques, dated 09.08.1991, their obligation stood discharged and the petitioners are not entitled to be paid any further amount. Heard the learned counsel for the petitioners and the learned Government pleader for land Acquisition. Though reference under Section 30 of the Act was made, for determination of the entitlement of the rival claimants, the reference itself did not materialize, till O.S.No.134 of 1991 was dismissed. With the dismissal of the suit, the controversy as to entitlement ceased to exist and the petitioners alone were eligible to receive the compensation. When they approached the Court, to which the reference was made, it was noticed that the cheques were not traceable. Though cheques were issued subsequently in 1998, they could not be encashed for want of funds and the deposit was ultimately made on 31.03.2000. There may have been some attempt on the part of the respondents to comply with the provisions of the Act, be it, Section 30 or 31. For one reason or the other, the amount was not paid into the Court. Mere issuance of cheques cannot be treated as compliance with Section 31 of the Act. What becomes material is the availability of funds with the Court, for distribution, as per the entitlement. Section 34 of the Act clearly mandates that the interest at the rate of 9% per annum for the ﬁrst year and 15% for subsequent years shall be paid from the date of taking possession of the land till the compensation is paid or deposited. Admittedly, in the instant case, the amount was deposited only on 30.03.2000. The respondents cannot deny interest, up to that date. Learned Government Pleader had raised an objection, on the ground of delay. This Court is of the view that the said plea cannot be accepted, inasmuch as the petitioners are trying to enforce their statutory right. It is not as if they are claiming interest up to the date of ﬁling of writ petition or beyond that date. Therefore, the writ petition is disposed of, directing that respondents shall pay interest to the petitioners, in accordance with Section 34 of the Act, from the date of taking possession up to the date of deposit viz., 30.03.2000, within two (2) months from the date of receipt of a copy of this order. It is also made clear that except interest, for the said period, the petitioners shall not be entitled to any other amount. There shall be no order as to costs. _________ 15.09.2008 JSU ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{TRT} THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION NO : 13000 of 2007 Date: 15.09.2008 JSU