Aresh Alias Ashok Jeevaraj Mehta vs The Special Tahsildar for Land Reforms and Another

N.S. Veerabhadraiah, J.—The appellant assailing the order of dismissal of the writ petition in W.P. No. 18591 of 1988 N.K.S. Murthy Vs. State of Karnataka and Others, by the learned Single Judge has come up with this writ appeal. Brief facts of the case are as follows.--

The appellant was the owner of the land in Sy. No. 16/1 of Examba Village, Chikodi Taluk and they were subjected to tenancy. In respect of those lands occupancy right was granted in favour of the tenant and thereafter the Tahsildar determined the amount payable to the landlord as per Annexure-A. That certain amount determined by the Tahsildar was paid at intervals. The appellant submitted Annexure-B before the Tahsildar, Chikodi, praying for payment of interest on the principal amount determined. The Tahsildar by his letter dated 7-6-1988 as per Annexure-C informed that the interest cannot be paid by cash as per the Circular No. RD 171 LRAM 86, dated 24-11-1996 as per Annexure-D. The appellant sought for quashing of Annexure-C, dated 7-6-1988 of the Tahsildar rejecting their prayer for payment of interest and also for quashing of Annexure-E, 24-11-1986.

The learned Single Judge dismissed the writ petition by his order dated 30-7-1996. Assailing the said order he has now come up with this appeal.

Learned Counsel for the appellant Sri T.N. Raghupathy, contended that the Circular Annexure-D issued is illegal and contrary to the provisions of the Karnataka Land Reforms Act, 1961. He secondly contended that the tenanted lands are being vested with the State Government with effect from 1-3-1974. The owner of the land cannot be deprived of the interest for which they are entitled from the day the principal amount become due. He thirdly contended that when once the amount payable is determined in respect of the delayed payment that the landowner is also entitled for the interest amount in case if the principal amount is paid in cash. He nextly submitted that when the Circular Annexure-D itself makes clear for investment of the amount which shall carry interest at 5 1/2% there is no bar as such either under the Act or the Karnataka Land Reforms Rules, 1974 to deprive the landowner from issuing the interest amount in cash in respect of the delayed payment of the principal amount. Therefore, prayed to quash the circular dated 24-11-1986 Annexure-D and to direct the respondent for payment of interest in cash in respect of the delayed payment of the principal by allowing the appeal.

On the other hand it is contended by the learned Government Advocate that there is no provision for payment of interest in cash on the amount determined as compensation. Therefore, the learned Single Judge has rightly dismissed the writ petition. Accordingly, prayed to dismiss the writ appeal.

In the light of the submissions the short point that arises for consideration is:

Whether in respect of the delayed payment of the principal amount, is the landlord entitled for interest in cash and thereby the circular - Annexure-D is liable to be quashed?

We have carefully examined the impugned order of the learned Single Judge. The learned Single Judge has considered the relevant provisions of the Karnataka Land Reforms Act, 1961 insofar as determining the mode of payment of the amount etc., and held that "there are no amounts legally due to the petitioners to be statutorily enforceable". In this regard we have carefully examined the order passed by the Tahsildar (Annexure-A) and also Annexure-B the calculations made therein. The circular dated 24-11-1986 makes clear that in case if the interest is not paid that the owners of the land are entitled for such interest on the amount due from the cut of date with effect from 1-3-1984. It is to be noted that the circular in question came to be issued by virtue of the powers conferred u/s 137 of the Karnataka Land Reforms Act, 1961. Section 137(1) of the Act reads as follows: 137. Rules.--(1) The State Government may, after previous publication, by notification, make rules for carrying out the purpose of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for the following matters:

(i) to (xii) x x x x

(xiii) the number of instalments in which the amount payable under the bonds may be paid u/s 51.

In pursuance of the powers conferred u/s 137 of the Act, the State Government is empowered to issue such notification, make rules for carrying out the purpose of this Act. As mentioned in sub-section (2)(xiii) of Section 137 it enables the State Government even for issue of such direction determining the mode of payment. In pursuance of the said provision, the State Government has issued circular to its subordinates regarding the number of instalments in which the amount payable under the bonds may be paid u/s 51. In the circular the cut of date for payment of interest is with effect from 1-3-1984. In that view of the matter, we do not find any error apparent in issuing such circular to implement the scheme of the Act. In that view of the matter, we do not find any merit in this appeal. However, having regard to the facts and circumstances of the case, in case if any interest is not paid on the amount already paid, he is entitled for interest on such dates with effect from cut of date, that is to say 1-3-1984.

With the said observation, the appeal is disposed of.