The Chairman, Neyveli Lignite ... vs C. Govinda Padayachi & Anr

Between 1975 and 1978, certain lands in the district of Cuddalore in the State of Tamil Nadu were notified for acquisition under Section 4 (1) of the Land Acquisition Act, 1894 (hereinafter referred to as 'the Act' ) for the purpose of expansion of the mines belonging to the appellant herein. In such notification, 0.22 acres of house sites and 0.78 acres of manavary dry lands, belonging to the respondent No.1 herein, were acquired. The Land Acquisition Collector awarded compensation of Rs.4,370.61 to the respondent No.1 at the rate of Rs.6,250/- per acre for house sites and Rs.3,200/- per acre in respect of manavary dry lands, excluding solatium and interest.

Dissatisfied with the award of the Collector, the respondent No.1 filed a reference petition, being L.A.O.P.No.279/1982, before the Sub-Judge, Cuddalore, on 20th August, 1984. The Reference Court by its award increased the quantum of compensation to Rs.50,000/- per acre for house sites and Rs.40,000/- per acre for manavary dry lands, excluding solatium and interest. Being aggrieved by the order passed on reference by the Sub-Judge, Cuddalore, the Special Tahsildar (Land Acquisition), in his capacity as the appropriate authority, filed an appeal before the High Court of Judicature at Madras on 26th February, 1985, being A.S. No.190/1985. By way of an interim order, the High Court directed the appellant herein to deposit the enhanced compensation awarded by the Reference Court with the stipulation that 50 per cent of such amount could be withdrawn by the land owner without security and the remaining balance could be withdrawn upon furnishing security.

Pursuant to the aforesaid direction of the High Court, the appellant herein deposited a sum of Rs.53,573.30 in court on 8th April, 1985. The respondent No.1 withdrew 50 per cent of the deposit, i.e. Rs.26,786.65, without furnishing security, but did not withdraw the balance by furnishing security. Accordingly, the balance 50 per cent of the deposited amount was directed by the court to be kept in a bank in a short-term fixed deposit. In the meantime, in a batch of similar matters, including A.S.No.190/1985, the High Court reduced the rate of compensation for house sites from Rs.50,000/- per acre to Rs.20,000/- per acre and for the manavary dry lands from Rs.40,000/- per acre to Rs.15,000/- per acre, excluding solatium and interest.

As per the aforesaid order, the respondent No.1 who had already received a sum of Rs.4,370.61 under the order of the Collector and a further sum of Rs.26,786.65 being 50 per cent of the deposit without furnishing security, aggregating a sum of Rs.31,157.26, was entitled to receive a further a sum of Rs.21,562.74 towards full and final settlement of his claim.

In keeping with the aforesaid order of this Court, the appellant herein arranged for the remittance to the court of a sum of Rs.1,05,548/- representing the amount of deposit lying with the bank, together with the interest earned thereon. The appellant filed I.A. No.8/2001 in L.A.O.P.No.279/1982, along with a memo of calculation, before the court of Sub- Judge, Cuddalore, claiming payment of Rs.83,985.26 in terms of the orders of this Court dated 7th December, 1999. The respondent No.1 also filed an application, being I.A.No.104/2002, wherein he claimed the balance of the lump sum amount, namely, 21,562.74 together with the entire amount of interest earned on the deposit, being Rs.80,000/-. According to the respondent No.1, the amount to be refunded to the appellant herein was only Rs.5,223.91 and not Rs.83,985.26 as claimed by it. The said petition of the respondent No.1 was taken up for consideration by the Sub-Judge, Cuddalore, on 17th June, 2004 and a direction was given to the parties to file revised memo of calculation on the basis of the orders passed by this Court on 7th December,1999.

With the aforesaid directions all the claims arising out of the 89 appeal listed before us shall stand disposed of in full and final settlement."

In that view of the matter, the appeal succeeds and is allowed. The order of the High Court impugned in the appeal is set aside and it is directed that out of the sum of Rs. 1,05,548/- remitted to the court below by the bank, the respondent No.1 will be entitled to receive a sum of Rs.21,562.74, being the balance amount of the total compensation payable in terms of the compensation quantified by this Court's Order dated 7th December, 1999, together with interest thereupon calculated at the rate of 15 per cent from 7th December, 1999, till the date of payment of the balance amount of the award. Having regard to the fact that the lands were acquired between 1975 and 1978, such payment should be made expeditiously, but positively within a period of six months from the date of the communication of this judgment. The amount left over after payment of the aforesaid sums are to be paid to the appellant.

There will be no order as to costs.