1 IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT AURANGABAD WRIT PETITION NO.1222 OF 2001 Vikram s/o Ganpatrao Gojamgunde, Age: 50 Yrs., occu. Agril. r/o Latur, Tq. and Dist. Latur. - PETITIONER VERSUS 1) The State of Maharashtra. 2) The Collector, Latur District Latur. 3) The Special Land Acquisition Officer, Sawarna Project, Latur, Tq. and Dist.Latur. 4) The Executive Engineer, Public Works Department, Division Latur. - RESPONDENTS ***** Mr.AN Irpatgire,Advocate for Petitioner; Mr.DV Tele,AGP for Respondents. ----- 2 CORAM : S.B.DESHMUKH & K.U.CHANDIWAL,JJ. DATE OF RESERVING JUDGMENT:- 30th August, 2010. DATE OF PRONOUNCING JUDGMENT:- 7th September,2010. JUDGMENT (PER: K.U.CHANDIWAL,J.): 1) Heard learned Counsel for the respective parties. 2) Rule was issued on 5th September, 2001. 3) The grievance of the petitioner is, to direct the respondent to pass an Award of rental compensation from 1986 till the actual payment of compensation was made and further to pay interest of 12% on the said amount within two months. 4) A representation was made by the petitioner to the learned Executive Engineer, PWD, at Latur dated 27.7.1999 (Exhibit-E, page 41) referring therein about the land Survey No. 104/B, situate at Latur to the extent of 25 R., which was acquired for ring road as additional area. Compensation of Rs.14,21,550/- was paid. LAR under Section 18 of the Land Acquisition Act, 1894 (hereinafter to be referred as the said Act), being LAR No.509/1993 was moved before the learned Civil Judge, Senior Division, at Latur, 3 which has been decided on 30th April, 1996. The possession of land and compensation, according to the petitioner, was under negotiations on 4.5.1986. 5) The petitioner feels, his entitlement to receive rental compensation and interest as per the letter dated 2nd November, 1993 and 15.4.1994 of the Additional Secretary to Government of Maharashtra directed the acquiring body to pay interest on rental compensation @ 12% p.a. 6) This representation having not been heard/decided, the petitioner has preferred presnt writ petition. 7) From the tenor of the Affidavit reply of the Land Acquisition Officer, viz. Sanjay Shankar Jadhav, it is explicit, there is no controversy about the acquisition of the land and payment of compensation. However, according to the said deponent in paragraph 8, the logic of Section 17(3A), 23(1A), 28 and 34 of the Act, has no application of law to rental compensation. This is certainly a surmise and contrary to the spirit of Apex Court directives. 8) In the matter of State of Maharashtra and Ors. Vs. Maimuma Banu and Ors, reported in 4 (2003) 7 SCC 448, identical issue was involved, wherein the lands were acquired by the State invoking private negotiations and possession of the lands was taken prior to Notification under Section 4 of the Land Acquisition Act, 1894. The grievance was put in writ petitions before the High Court for rental compensation and also entitlement of interest as there was abnormal and unusual delay in making the payment. The High Court entertained the same. In the appeal by the State, the crucial question before the Apex Court was, whether there could be any direction for payment of interest on rental compensation once it was held that same has to be paid within the time frame, notwithstanding the fact that there was no statutory obligation. In paragraphs 9 and 11 of the said Judgment, the Apex Court noted the delay caused in releasing the amount though possession of the land was taken long back. The Apex Court in paragraph 11 has observed as under : “11. It is not in dispute that in certain cases payments have already been made. Though the inevitable conclusion is that the High Court is not justified in directing grant of interest on the logic of various provisions contained in the Act, yet there is an element of equity in favour of the land owners. It is, however, seen that the writ applications were filed long after the possession was taken. This 5 factor cannot be lost sight of while working out the equities. It would therefore be appropriate if appellants pay interest @6% from 1.4.2000 till amounts payable as rental compensation are paid to the concerned land owners. This direction shall not apply to those cases where the payments have already been made prior to 1.4.2000. Appeals are allowed to the extent indicated without any stipulation of costs.” 9) The Division Bench of this Court, while entertaining the Writ Petition No.4943/2008 ( Bhagwat Nathu Patil Vs. State of Maharashtra and Ors.) decided on 2nd September, 2008, reported in 2009(1) Bom.C.R. 328, has issued following directions in paragraph 17: “(1) Rental compensation is payable on the awarded value at the rate of 6 and 1/2% from 1/12/1972 and at the rate of 8% from 2/4/1979 till the full amount of final award is paid to the land owner Awarded value would include all amounts determined under Section 23, except Section 23 (1-A) and Section 23 (2). (2) If in reference or in proceedings under Section 28 (1- A) or in appeal, the awarded amount is increased, the rental compensation will have to be re- determined in terms of the market value as re-determined. (3) The interest payable 6 on the rental compensation, not paid, would be at the rate of 6% for the period in default. This amount would be, however, payable only from 1/4/2000. (4) Considering the observations in R.L. Jain (D), the rental compensation will be decided by the Special Land Acquisition Officer. While deciding rental compensation, the Special Land deciding Acquisition Officer, Collector, would hear the interested persons, i.e. land owners or other parties who have interest as also the acquiring body. While doing so, if the date of taking possession of the land is not set out in the award, then Special Land Acquisition Officer to decide the same. (5) The rental compensation along with interest would be paid by the State or the acquiring body as the case may be, within four months of the Special Land Acquisition Officer determining the rental compensation and amount of interest. ” 10) In the light of this legal position, the respondents/authorities are under obligation to consider and entertain the application of the petitioner at Exhibit-E in its letter and spirit and decide entitlement of petitioner for interest on rental compensation @ 6% p.a. effective from 1st April, 2000,in tune with the 7 various dates and amount of compensation paid. The authorities to take decision on the said representation within four months from the date of receipt of the writ and if petitioner is found entitled, to release the amount within a period of four months thereafter. 11) Rule is thus made absolute in aforesaid terms with no order as to costs. sd/- sd/- (K.U.CHANDIWAL) (S.B.DESHMUKH) JUDGE JUDGE bdv/ fldr30.08.10 Authenticated copy (BD VADNERE,PS)