Aresh@ Ashok J. Mehta (D) By Prop. Lrs vs Spl. Tahsildar, Balgaum, Karnataka & ...

3. The Tehsildar, Chikodi under Section 48A(7) and Section 53 heard the appellant-landlord and the tenant and determined the quantum of amount payable at Rs. 17,244/- vide order dated 28.2.1983. It was held that a sum of Rs. 2,000/- is to be paid as first instalment within 30 days from the date of the receipt of the order and the balance in 19 equated annual instalments with interest @ 5½% as indicated therein. The compensation amount was paid to the appellant in between the years 1983-1985 but without any interest. In this background, the appellant moved in the Court of Special Tehsildar, Chikodi with an application that his 1/3rd share in the house and well situated in RS No. 16/1 of Examba village vested with the State therefore he claimed interest on the compensation amount @ 5½% per annum w.e.f. 1st March, 1974 till the payment of the entire amount. The details of amount of compensation, the amount of interest acquired on the compensation amount, the amount paid to the appellant and the amount as was due to him on 25th May, 1988 were shown in the representation. The appellant claimed a sum of Rs. 19,116.37. The Special Tehsildar, Chikodi vide letter dated 7th June, 1988 rejected his prayer and informed that as per Circular No. RD 171:LRM-86 dated 24.11.1986 interest has to be paid on the amount paid through the National Savings Certificate and, therefore, no interest is payable on the amount received in cash.

15. From the aforesaid provisions, it is clear that the all lands held by or in the possession of tenants prior to 1.3.1974 has been transferred and vested in the State Government with effect from 1.3.1974. All rights, title and interest vesting in the owners of such lands stand cease and is vested absolutely with the State Government. The amount in respect of such lands which becomes due on or after 1.3.1974 is only payable to the State Government and not to the land-owners/landlords. The land- owners/landlords are entitled to receive the amount only from the State Government and not from any other person.

The amount payable to the land-owner/landlord for the extinguishment of their rights is to be paid in the manner prescribed under Section 51. The amount upto Rs. 2,000/- is to be paid in cash and balance of the amount is payable in non-transferable and non-negotiable bonds carrying interest @5 ½% per annum.

For Example:

5. Fraction, if any, below Rs. 50/- each.

The above guidelines shall be followed scrupulously in all cases. x x x x x x x x Sd/- S. Ashok Under Secretary to Govt. Rev. Dept. (Land Reforms) No. RS.KLR.HP.86-87 Belgeum Dt. 27.12.1986 Copy forwarded to all the Tehsildars and Spl. Tehsildar, Land Reforms, in Belgaum Distt. for information and further necessary action.

Sd/-

18. The aforesaid clarification made by the State Government makes it clear that the entire amount due to the ex-landlords shall be calculated taking 1.3.1974 as the cut off date for the purpose of calculating interest. However, we find that the example given therein is confusing which does not make it clear whether amount Rs.3000/- shown therein includes the interest w.e.f. 1.3.1974 apart from the principal amount to which the ex-landlords are entitled.

23. In view of the specific clarification made vide Circular dated 24th November, 1986 and decision of this Court in Satinder Singh (Supra), we hold that the appellant is entitled for interest w.e.f. 1.3.1974 @ 5 ½% till the total amount was paid to him. The respondent cannot deny the interest on the amount of compensation to which the appellant is entitled as a matter of general rule, and in the light of the clarification made by Circular dated 24.11.1986.

24. The orders passed by the Single Judge and the Division Bench of the Karnataka High Court are, accordingly, set aside. The respondents are directed to pay the appellant interest @ 5 ½% per annum w.e.f. 1.3.1974 as ordered above within three months. The appeal is allowed with aforesaid observation and direction, but there shall be no order as to costs.