IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE KURIAN JOSEPH & THE HONOURABLE MR. JUSTICE HARUN-UL-RASHID WEDNESDAY, THE 5TH DECEMBER 2007 / 14TH AGRAHAYANA 1929 LA.App..No. 95 of 2006() ------------------------ LAR.9/2001 of SUB COURT, KASARAGOD .................... APPELLANT: CLAIMANTS -------------------- 1. MUMTAZ, D/O.LATE C.H.MUHAMMED KUNHI, PADINJAR, UDUMA VILLAGE & POST, KASARAGOD DISTRICT. 2. TAJUDDIN, S/O.LATE C.H.MUHAMMED KUNHI, PADINJAR, UDUMA VILLAGE & POST, KASARAGOD DIST. 3. HASSAINAR, S/O.LATE C.H.MUHAMMED KUNHI, PADINJAR, UDUMA VILLAGE & POST, KASARAGOD DIST. 4. BEEBI, D/O.LATE C.H.MUHAMMED KUNHI, PADINJAR, UDUMA VILLAGE & POST, KASARAGOD DIST. 5. SUMAYYA, D/O.LATE C.H.MUHAMMED KUNHI, PADINJAR, UDUMA VILLAGE, & POST, KASARAGOD DISTRICT, REPRESENTED BY GUARDIAN & MOTHER SMT. SUHARABI. BY ADV. SRI.SURESH KUMAR KODOTH RESPONDENTS: RESPONDENTS & REFERRING OFFICER -------------------------------------------- 1. THE SPECIAL TAHSILDAR, LA. KASARAGOD. 2. MANAGING DIRECTOR, BEKAL RESORT DEVELOPMENT CORPORATION, KAWADIAR, THIRUVANANTHAPURAM. BY GOVERNMENT PLEADER SMT.K.R.DEEPA. THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 05/12/2007, ALONG WITH LAA 295/06 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: KURIAN JOSEPH & HARUN-UL-RASHID, JJ. ------------------------------------------ L.A.A Nos.95 and 295 OF 2006 ------------------------------------------ Dated this the 2nd day of February, 2009. J U D G M E N T Kurian Joseph, J. The appellants are the claimants in L.A.R.Nos.9/2001 and 75/2000 respectively on the file of the Sub Court, Kasaragod. Acquisition is for the purpose of Bakel Tourism Project. The Land Acquisition Officer fixed the land value at Rs.5,915/- per cent and the reference court granted 25% enhancement over the value fixed by the Land Acquisition Officer. Aggrieved by the said fixation, the claimants filed these appeals. 2. The main contention of the appellants-claimants is that despite a finding regarding the similarity and comparability of the adjacent lands which have been acquired at the negotiated price of Rs.17,500/- per cent, the appellants have not been granted the similar benefit. It is submitted by the learned counsel for the appellants that they are satisfied if their properties are valued at Rs.17,500/- per cent, the value given to the adjacent owners. L.A.A.Nos.95 & 295/2006 2 Learned Government Pleader submits that the said value is inclusive of all statutory benefits, interest on solatium etc. It is further submitted that the State cannot be burdened with the interest since the negotiated purchase failed only because of the non co-operation on the part of the claimants. It is brought to our notice that the requisitioning authority had in fact made a negotiated purchase of land at Rs.17,500/- per cent. Being a negotiated purchase, there is no other statutory benefit like solatium and benefit under Section 23(1A) of the Land Acquisition Act. There is no question of interest also since the amount is paid on purchase. 3. It is also submitted by the learned counsel for the appellants that the appellants are entitled to interest under Section 34 of the Land Acquisition Act. Section 34 of the Land Acquisition Act reads as follows: Section 34: “Payment of interest.- When the amount of such compensation is not paid or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of nine per centum per annum from the time of so taking possession until it shall have been so paid or deposited: L.A.A.Nos.95 & 295/2006 3 Provided that if such compensation or any part thereof is not paid or deposited within a period of one year from the date on which possession is taken, interest at the rate of fifteen per centum per annum shall be payable from the date of expiry of the said period of one year on the amount of compensation or part thereof which has not been paid or deposited before the date of such expiry”. In view of the statutory mandate regarding interest, it is submitted that the appellants are entitled to interest under Section 34 on the value of Rs.17,500/-. 4. The requisitioning authority itself has purchased adjacent property at Rs.17,500/- per cent. There was an offer also at that rate. True, it is negotiated purchase. Therefore, that value includes all other statutory benefits like solatium, Section 23(1A) benefit etc. But in this case the negotiation failed and hence purchase could not be made. But in the case of adjacent lands covered by the same notification, the reference court has fixed the land value at Rs.17,500/- or more. That value has become final also. One such judgment is in L.A.A.No.599 of 2003. In the peculiar facts and circumstances of this case, what is claimed is only Rs.17,500/- per cent inclusive L.A.A.Nos.95 & 295/2006 4 of other statutory benefits except interest under Section 34. Thus, we fix the land value at the rate of Rs.17,500/- per cent at the time of taking possession, including all statutory benefits except interest under Section 34. That will carry interest at the rates specified in Section 34 of the Act from the date of taking possession. Therefore, the appeals are allowed as follows: The land value is fixed at Rs.17,500/- per cent. This includes all statutory benefits on account of the compulsory acquisition except interest under Section 34 of the Land Acquisition Act. In other words, on the value of Rs.17,500/- per cent, there shall only be interest under Section 34 of the Act. The amounts already received will be duly adjusted. KURIAN JOSEPH JUDGE HARUN-UL-RASHID JUDGE smp L.A.A.Nos.95 & 295/2006 5 KURIAN JOSEPH & HARUN-UL-RASHID, JJ. L.A.A Nos.95 and 295 OF 2006 J U D G M E N T 02.02.2009