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Judgment
On the basis of final judgement dated 30052002 passed by this Court, while disposing of CIA No. 42 of 1999 and CIA (Cross Appeal) 2/2000,
the petitioners (decree holders) preferred an application claiming recovery of an amount of Rs 3,05,20,624,30.00. It was during the currency of
the execution petition of the petitioners (decreeholders), the judgement debtors deposited an amount of Rs 2,70,49,377/ through a Cheque and the
same was allowed to be released pending finality of the execution application. It is stated that the Cheque amount has been received after
deducting Rs. 35,000/ as collection charges by the Bank. The collection charges were required to be borne by the judgment debtors (respondents)
as they were required to pay the decreetal amount in terms of the judgment passed by this court. The petitioners have filed another application
being CMP No. 160 of 2003. In this application, the petitioners (decreeholders) have given details of the accounts in para No.4 of the application,
facilitating the Court to determine the actual amount, still payable to the decree holders which reads and is reproduced as under;
(1) Amount of compensation awarded by the|Rs. 1,74,72,534.00 Collector
(2) 15% Solatium on the aforesaid amount comes to Rs. 26,20,880.10
(3) Amount received from the Collector Rs.2,00,93,414.00
(4) Amount of compensation awarded by the Hon'ble High Court Rs. 3,53,96,700.00 j
(5) Solatium. @ 15% comes to Rs. 53,09,505.00
(6) Total amount awarded by the Hon'ble HighJRs. 4,07,06,205.00 Court as compensation to the decree holders I
(7) (Deducting the amount received by the decree (holders from the Collector, the net amount (payable by the judgement debtors to the decree
holders come to Rs. 2,06,12,791.00 |
(8) The possession of the property had been with the judgement debtors even at the time of the award of the Collector. Calculating the amount of
interest payable by the judgement debtors to the decree holders w.e.f. the date of award, the amount of interest comes as follows:
Interest on an amount of is Calculated as follows: Rs. 2,06,12,791
(a) For the first year from 16.7.1996 to 15.7. 1997(r) 6% p.a. Rs. 12,36,767.40
(b) For the next five years from 16071997 to 15072002 @ 10% in terms of Sec. 35 of the Jammu and Kashmir Land Acquisition Act. Rs.
1,03,06,395.00
(c) For the next 8 months from 16072002 to 15032003 @ 10% Rs. 13,74,186.00
(d) For the remaining 16 days from 16032003 to 1st April, 2003 @ 10% Rs. 90,357.44
Total interest on the amount of Compensation awarded by the court Rs. 1,30,07,705.00
Grand total amount of compensation awarded by the Hon'ble Court and interest thereon is summarized as follows:
(a) Total amount of compensation awarded by the Hon'ble Court and due to the petitioners. Rs. 2,06,12,791.00
(b) Total interest on amount of Compensation awarded by the Hon'ble Court till date of deposit. Rs. 1,30,07,705.00
(c) Amount of cost awarded by the Hon'ble Court. Rs. 99,582.00
(d)Amount of compensation thus payable comes to Rs. 3,37,20,078.00
(e) Amount received by the petitioners Rs. 2,70,14,377.00
Amount payable by the judgment Debtors to the petitioners. Rs. 67,05,701.00
The decree holders (petitioners) further prayed for a direction to the judgment debtors to pay Rs. 67,05,701.00 alongwith interest @ 10% p.a
claimed under the decree made in the aforesaid judgment. Judgment debtors (Union of India), respondents in their reply admitted that an amount of
Rs. 2,70,49,377/ was deposited in the name of the Registrar Judicial through Cheque. The Bank has wrongly deducted collection charges of an
amount of Rs. 35,000/ and refuted the liability to pay the collection charges. In reply to para4, the Union of India (respondents), judgment debtors,
admitted the claim of the decree holders specified in subparagraphs (i) to (iii). With regards to subparagraph(iv), the amount of compensation
awarded by the High Court was also not disputed, but, however, submitted that cost of moveable property of Rs. 1,56,700.OO/, as was
awarded, is not covered under the provisions of J&K Land Acquisition Act (hereinafter referred to as ""the Act""). Subparagraph(v) of the petition
was also not denied. As regards to Sub paragraph(vi), though contents are not denied, but submitted that total amount awarded by the High Court
works out to Rs. 4,07,06,205/including the cost of moveable property which is not covered under the provisions of Jammu & Kashmir Land
Acquisition Act. It is further stated that the amount of Rs.2,06,12,791/ payable to the decree holders includes the balance solatium of Rs,
26,88,625/ out of Rs. 53,09,505/ minus Rs. 26,20,880/ already paid. The judgment debtors further submitted that the formal possession of the
property was taken over on 06011997 under section 16 of Land Acquisition Act. Whereas rental compensation of the property had already been
paid up to 5.1.97, the interest, therefore, is stated to be payable only with effect from 6.1.1997 on Rs. 1,79,24,166/ (excluding Solatium) i.e
Rs.2,06,12,791/ minus balance solatium Rs. 26,88,625/ as per the decree of the High Court dated 30.5.2002. The interest according to the
judgment debtors is, therefore, payable from 6.1.1997 to 31.3.2003 i.e. the date when compensation was released/deposited by the Union of
India, judgment debtors (respondents) for payment @ 6% under the provisions of section 28 of the Jammu & Kashmir Land Acquisition Act
which works out to Rs.67,00,201/. Thereafter the liability of the judgment debtors ceases to pay the interest on the date on which the deposit was
made. The judgment debtors, (respondents), therefore, prayed for the settlement of the Court decree as per the statement of accounts indicated in
paragraph4 in their reply.
I have heard the learned counsel for the respective parties and also perused the record meticulously.
Mr. S.S.Nanda, learned Sr. CGSC appearing on behalf of the judgment debtors, (respondents) vehemently urged that the rental compensation
has been paid up to 5.1.1997, so the interest is payable with effect from 6.1.1997. His further submission is that no interest is payable to solatium.
To support his contention he has relied upon the judgment of the Apex Court in case reported as JT 1996(2) SC 240, Yadavrao P. Pathade
(Dead) by LRs. etc. Versus State of Maharashtra. His further submission is that section 28 does not comprehend payment of interest of solatium
when it expressly mentions payment of interest on compensation under section 28 referable to section 23(1) of the Act. The judgment relied upon
by Mr. S.S. Nanda, Sr. CGSC has been overruled by a subsequent decision of the Apex Court rendered as (2001)7 SCC 211, Sunder versus
Union of India, where it is held that interest under sections 34 and 28 is payable on solatium. Amount awarded in section 34, means aggregate
amount of compensation calculated in accordance with the provisions of all the sub sections of section 23 and hence includes solatium. The
intention of the legislature is to ensure that the amount calculated, under section 23 reaches the person concerned at the time of passing of award or
taking over possession of the land. Any delay in the making of such payment, entities the person to receive interest on the whole amount including
solatium. Therefore, submission made by Mr. Nanda that interest on solatium is not payable does not merit acceptance. It was further submitted by
Mr. Nanda that Bank having wrongly deducted Rs.35,000/ as collection charges, Respondents Union of India, (judgment debtors) are not liable to
pay this amount. I do not find any substance in this contention of Mr. S.S. Nanda as the judgment debtors are under an obligation to ensure that
amount calculated under section 23 of the Act reaches the person concerned at the time of passing the award or taking over possession of the
land. Any expenses, incurred in the mode adopted by the judgment debtors for payment of the amount awarded, are to be borne by the judgment
debtors themselves and not by the decree holders. Taking an instance that, if the payment is to be made by a Bank draft, all the expenses for
preparing the Bank draft of the award amount, payable to the person concerned, are to be borne by the judgment debtors and not the decree
holders. Under section 23 of the Act, the decree holders are entitled to receive the award amount calculated. The collection charges i.e. Rs.
35,000/ are, therefore, also to be borne by judgment debtors and they cannot shirk their liability to pay the same to the decree holders. Mr.
Nanda, however, during arguments fairly admitted that the cost of moveable property amounting to Rs. 1,56,700/ included in the amount of award
passed by the High Court is payable by the judgment debtors.
According to Mr. Nanda, the interest in terms of section 35 of the Act is payable on the awarded amount only with effect from 6.1.1997 as the
rental compensation had already been paid upto 5.1.1997. In this case award has been passed on 16.7.1996. Since the contention of Mr. Nanda
has not been rebutted by the decree holders by filing a reply to it, it is taken that rental compensation has been paid up to 5.1.1997. In such
circumstances, interest on the awarded amount shall become payable from the date of passing of the award i.e. 16.07.96 and not from 06011997
as the possession of the land undoubtedly was with the judgment debtors. The contention of Mr. Nanda, therefore, is without substance and does
not merit acceptance.
Consequently, it is ordered that the interest in terms of the Land Acquisition Act on the awarded amount, including salotium shall become
payable from the date of the award i.e. 16.7.1996. This shall become payable after giving credit of the amount of award already deposited by the
Union of India. The interest on the balance amount shall become payable from the date of the passing of award. As regards the payment of rental
compensation up to 6.1.1997, it is clarified that such amount paid after the passing of the award as rental compensation by the Union of India
(judgment debtors) shall be appropriated towards the interest component to be paid on the balance awarded amount as worked out and
calculated by the decree holders in their application. The awarded amount with interest shall be deposited by the judgment debtors within a period
of three months from today, failing which the decree holders shall be entitled to proceed against the respondents, (judgement debtors) for
realization of the awarded compensation in accordance with law.
The CMP along with execution petitions are, accordingly, disposed of.