S.B.CIVIL REVISION PETITION NO.187/2005- Smt. Kalpana & Ors. vs. State of Raj. & Ors. Order dt:19/2/2009. 1/4 IN THE HIGH COURT OF JUDICATURE FOR RAJATHAN AT JODHPUR O R D E R Smt. Kalpana & Ors. vs. State of Raj. & Ors. S.B.CIVIL REVISION PETITION NO.187/2005 DATE OF ORDER : 19/2/2009 PRESENT HON'BLE DR.JUSTICE VINEET KOTHARI Mr.Rajesh Joshi, for the petitioner. mr.Sunil Bhandari, for the respondent. This revision petition is directed against the order dated 2/2/2005 passed by the court of learned ADJ No.2, Jodhpur on an application under Section 151 CPC read with Section 47 CPC in which the petitioner felt aggrieved of the reduction of rate of interest on payment of compensation on the land acquired under the provisions of Land Acquisition Act, 1891. Said rate was reduced by the Reference Court of learned ADJ No.2, Jodhpur in the impugned order dated 2/2/2005 from 15% to 9% p.a. looking to the reduction of bank interest rates. Learned counsel for the petitioner submits that in the present case the award of compensation was passed by the competent authority on 25/8/1994 and since petitioner was aggrieved by the lesser amount of compensation awarded to them, a reference under S.B.CIVIL REVISION PETITION NO.187/2005- Smt. Kalpana & Ors. vs. State of Raj. & Ors. Order dt:19/2/2009. 2/4 Section 18 of the Act was made, which was also decided on 22/12/2003 giving them enhanced compensation. The said compensation was paid to them on 11/8/2004, however, the Court below by the impugned order reduced the rate of interest of 15% as contained in the award for the period 13/11/1997 to 16/8/2004 to 9% p.a. Being aggrieved of the same, petitioner has approached this Court by way of present revision petition. Learned counsel for the petitioner Mr. Rajesh Joshi submitted that proviso to Section 34 of the Land Acquisition Act clearly stipulates that if such compensation or any part thereof is not paid or deposited within a period of one year from the date on which the possession is taken, interest at the rate of 15% shall be payable from the date of expiry of the said period of one year on the amount of compensation or part thereof till the date of payment. Learned counsel for the respondent, however, opposed the submissions and submitted that since the award did not become final till reference under Section 18 was decided on 22/12/2003, therefore, interest @ 15% cannot be paid to the petitioners. Having heard learned counsels, this Court finds considerable force in the submissions made by learned counsel for the petitioner. S.B.CIVIL REVISION PETITION NO.187/2005- Smt. Kalpana & Ors. vs. State of Raj. & Ors. Order dt:19/2/2009. 3/4 Section 34 of the Land Acquisition Act is reproduced for ready reference as under:- “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 date of so taking possession until it shall have been so paid or deposited. 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 the 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 clear proviso to Section 34, it is clear that reduction of interest to 9% shall be applicable only for the period of one year from the date of taking of possession of the land in question and any further delay in payment of compensation would attract interest @ 15% p.a. Merely because petitioner filed reference under Section 18 of the Act claiming enhancement of compensation, it neither changes the date of possession nor affects the applicability of the proviso to Section 34 of the Act which depends upon the date of taking over the possession of the land in question which in the present case obviously prior to the passing of the award dated 25/8/94 however, no exact date of possession was given by either of the counsels. Be that as it may, since the learned Court below in the S.B.CIVIL REVISION PETITION NO.187/2005- Smt. Kalpana & Ors. vs. State of Raj. & Ors. Order dt:19/2/2009. 4/4 impugned order has reduced the rate of interest from 15% to 9% on extraneous reason of falling bank interest rates contrary to the provisions of Section 34. Therefore, said part of the impugned order deserves to be set aside. Accordingly, this revision petition is allowed and impugned order dated 2/2/2005 is set aside to the extent of reduction of interest from 15% to 9% for the period 13/11/1997 to 16/8/2004. The difference of interest, if any, now may be paid to the petitioners within a period of three months from today. No order as to costs. (DR.VINEET KOTHARI), J. item no.2 baweja/-