1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION FIRST APPEAL NO.380 OF 2006 Nisar Mohamad Siddique Nambre : Appellant versus The State of Maharashtra : Respondent ALONG WITH FIRST APPEAL NO.381 OF 2006 Abdul Sattar Mohamad Siddique Nambre : Appellant. Versus The State of Maharashtra : Respondent. Mr.R.S.Datar for the Appellants Mr.A.R.Patil, AGP, for the State/Respondent. CORAM : R.M.SAVANT, J. DATED : September 17, 2008 P.C. 1. The above First Appeals are companion to First Appeal No.379 of 2006 which was disposed of by this Court by Judgment and Order dated 21/07/2008. In so far as First Appeal No.380 of 2006 is concerned, the same arises out of the Judgment and Award dated 3rd May 2002 passed by the Reference Court i.e the learned 2 Civil Judge, Senior Division, Alibag in Land Acquisition Reference Nos.30 of 1989 and and in so far as First Appeal No.381 of 2006 is concerned, the same arises out of the Judgment and Award dated 8th March 2002 passed by the Reference Court i.e the learned Civil Judge, Senior Division, Aliba in Land Acquisition Reference No.31 of 1989. 2. In so far as the above First Appeals are concerned, pursuant to the said Judgments and Awards of the Reference Court, the Special Land Acquisition Officer has deposited the enhanced amounts of the compensation along with interest in the Reference Court. It is the case of the Appellants that the said deposit is not in terms of the Awards of the Reference Court inasmuch as the interest payable under Section 28 of the Land Acquisition Act, 1894 has not been properly computed. The said Awards are, therefore, principally challenged on the said ground. It is the case of the Appellants that on account of the said mis-calculation, the Appellants in both the Appeals have not received the interest as per their entitlement. 3 3. The lands of the Appellants herein have been acquired for the New Bombay Project and the Awards in respect of the said acquisition came to be passed on 27/6/1986 in First Appeal No.380 of 2006 and 19/4/1986 in First Appeal No.381 of 1986. The Appellants made separate Applications for enhancement of the compensation under Section 18 of the said Act. The said applications came to be numbered as Land Acquisition Reference Nos.30 of 1989 and 31 of 1989 and the said References were heard by the Reference Court and by its Judgments and Awards, the Reference Court was pleased to award compensation to the claimants at the rate of Rs.15/- per sq.mtr. for the acquired land. The Reference Court was also pleased to award 30% solatium on the market value as contemplated under Section 23(2) of the said Act and also awarded 12% component of the compensation under Section 23(1A) of the said Act. The Reference Court also awarded interest at the rate of 9% per annum on the total market value + 30% solatium + 12% component for the period from the date of taking over the possession of the said land till the date of Award of the Reference Court. The Reference Court also directed the opponent to pay interest at the rate of 9% p.a. under 4 section 28 of the said Act on the total market value + solatium + 12% Compensation minus amount awarded by the Special Land Acquisition Officer under Section 11 of the said Act till realization 4. Being aggrieved by the Awards passed by the Reference Court, both the Appellants filed First Appeal No.142 of 1990 and First Appeal No.347 of 1991 in this Court for challenging the said Judgments and Awards of the Reference Court. This Court by the Judgment dated 31st August 2000 allowed the said First Appeals and fixed the market value of the lands at Rs.20/- per sq.mtrs and directed the Reference Court to make a fresh award. This Court further directed that the Reference Court should also calculate the interest on the market value of the acquired lands under Section 28 of the said Act. 5. The issue as regards payment of interest under Section 28 on the Solatium and 12% component was referred to the Larger Bench of the Apex Court. The Apex Court by its judgment reported in 5 (1996) 2 SCC 71 and also in the judgment reported in (2001) 2 SCC 211 has held that the interest under Section 28 of the said Act was also payable on the component under Section 23 (1A) and the solatium under Section 23(2) of the Act. In so far as the payment of interest on the component under Section 23(1A) is concerned, the said issue was concluded by this Court in its judgment in Civil Application No.4684 of 2001 in First Appeal No.1138 of 1998 whereby this Court after relying upon the judgment of the Apex Court reported in (2001) 7 SCC 211 held that the interest under Section 28 was also payable on the component payable under Section 23(1A) of the said Act. In view of the said pronouncement of the Apex Court, the Appellants herein made Applications (Exhibit Nos. 40/A and 39/A) before the Reference Court for passing a fresh Award in the said Land Acquisition Reference Nos.30 of 1989 and 31 of 1989. 6. On the applications made by the Appellants herein, the Reference Court was pleased to calculate the amount of interest payable to the claimant under Section 28 of the said Act. The Reference Court held the claimant in L.A.R.No.30 of 1986 entitled to 6 the payment of interest at the rate of 9% p. a. on the enhanced amount for the 1st year i.e. From 09.07.86 to 08.07.87 and thereafter at 15% p.a. From 9.7.87 to 10.10.89 and the claimant in L.A.R.No.31 of 1986 entitled to the payment of interest at the rate of 9% p. a. on the enhanced amount for the 1st year i.e. From 03.07.86 to 02.07.87 and thereafter at 15% p.a from 3.7.87 to 15.09.89. 7. It is the case of the Appellants in both the above First Appeals that the said interest would be payable till the entire amount including the amount enhanced by this Court, is paid to the Appellants and not merely the enhancement granted by the Reference Court. The learned counsel for the Appellants, therefore, relies upon the statement of calculation made by him and tendered during the course of hearing of the above Appeal, copy of which was furnished to the learned AGP. In my view, considering the limited controversy involved as regards the calculation of the amount of interest till realization of the enhanced amount, it would be appropriate to set aside the impugned Awards dated 3rd May 2002 and 8th March 2002 and remit the matters back to the Reference Court to calculate the 7 interest payable to the Appellants/claimants de-novo on the enhanced amount as per the claimants' entitlement . The Reference Court whilst determining the amount payable by the Respondent to take into consideration the amounts already deposited by the Respondents in the Reference Court. The judgments and Awards dated 3rd May 2002 and 8th March 2002 are, therefore, set aside. Both the above First Appeals are accordingly allowed. On remand the Reference Court would decide the said issue of the amount of interest payable within a period of four months from date. [R.M.SAVANT, J]