C.W.P.No.20611 of 2009 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH C.W.P.No.20611 of 2009 Date of decision: 08.03.2010 Sanjeev Kumar & Others .....Petitioners Versus State of Punjab and Others .....Respondents CORAM: HON'BLE MR. JUSTICE M.M.KUMAR HON'BLE MR. JUSTICE JITENDRA CHAUHAN Present: Mr.Naresh Kaushal Advocate for the petitioners. Mr.Survir Seghal, Addl.A.G.,Punjab for respondents. 1. To be referred to the Reporter or not? 2. Whether the judgment should be reported in the digest? M.M.Kumar,J. The petitioners have approached this court, with a grievance that the Award No.01 dated 10.02.2009 (Annexure P-6) ignores to take into consideration awarding of interest as per the provisions of Sectin 34 of Land Acquisition Act,1894 ( for brevity, "the Act"). It is conceded as a fact that the possession of the land was taken by the respondents on 13.12.2005 and 80% of the amount of estimated compensation was paid to the petitioners. However, no award was announced. The petitioners approached this court by filing CWP No.2181 of 2009 wherein, the prayer interalia was made for issuance of direction to pay 20% of the amount of compensation or to pay market value of the land on the date of award. The Division Bench of this Court vide order dated 11.02.2009, had upheld the acquisition proceedings but, yet issued direction to the respondents for payment of 20% of the amount of compensation. A period of three months from the date of receipt of a copy of order dated C.W.P.No.20611 of 2009 2 11.02.2009 was fixed for ensuring the payment of balance amount of 20%. The petitioners also filed a contempt petition bearing COCP No.1203 of 2009, which was disposed of after noticing that the Award dated 10.02.2009 has already been announced. Therefore, the matter with regard to payment of the balance amount of 20% stood settled by the Award dated 10.02.2009. The present petition has been necessitated, on account of non-payment of interest under Section 34 of the Act. It has been argued that the Award dated 10.02.2009 (Annexure P- 6), has not taken into account the element of interest on the amount of compensation as envisaged by Section 34 of the Act. The factual position has not been denied. However, Mr.Naresh Kaushal, learned counsel for the petitioners has placed on record a photocopy of the amended award, which has now calculated the amount of interest payable under Section 34 of the Act. According to the provision of Section 34, interest is payable in respect of the first year at the rate of 9% and the subsequent years, at the rate of 15%. Accordingly, for the first year of taking of possession from 14.12.2005 to 13.12.2006 and interest at the rate of 9% has been awarded and for the subsequent years, interest at the rate of 15% has been calculated. Mr.Seghal, learned counsel for the respondents, however, has pointed out that when the award was announced, the petitioners were asked vide letter dated 09.05.2009 to appear in the office of Land Acquisition Collector on 14.05.2009(Annexure R-3). It has further been pointed out that even public notice dated 24.05.2009 was also issued (Annexure R-7) calling upon the petitioners and other land owners to collect 20% of the remaining amount. However, the petitioners did not appear before the Land Acquisition Collector but, refused to accept the payment without interest. C.W.P.No.20611 of 2009 3 The other argument raised by Mr.Seghal is that the payment has not been received from the Union of India and incase, the awarded amount is disbursed then Union of India may not pay to the respondents-State. After hearing the learned counsel for the parties, we are of the considered view that the petitioners are entitled to payment of interest at the rate provided by Section 34 of the Act. It is admitted fact that Award has been announced on 10.02.2009 and possession was taken on 13/14.12.2005. In fact, dispute concerning interest stands settled in as much as interest has already been calculated by amending the Award. However the same has not been paid. Accordingly, we disposed of the writ petition with a direction to the respondents to calculate interest from the date of taking possession till the date of payment and if amount of 20% has not been paid then it may also be disbursed. The needful shall be done within a period of one month from the date of receipt of a certified copy of this order. The State of Punjab- respondents may claim the amount of compensation plus the interest paid to the land owners from the beneficiary, for whom the land was acquired i.e. Union of India as per law. The writ petition stands disposed of. (M.M.KUMAR) Judge (JITENDRA CHAUHAN) 08.03.2010 Judge Seema-II