A.M. Khanwilkar, J.@mdashHeard learned Counsel for the parties.
2. By this petition under Article 226 of the Constitution of India it is prayed that the respondent Nos.2 and 3 be directed to pay interest on Rs.
1,42,052.40 since passing of the Award on 26th June 1987 till 25th March 1993 (the correct date is 25th March 1992) when the said amount
was made over to the petitioners. The petitioners are claiming interest on the said amount at the rate of 15% per annum for the said period
amounting to Rs. 1,01,212.33 paise. In other words, the claim of the petitioners is founded on Section 34 of the Land Acquisition Act. Section 34
of the Land Acquisition Act obligates the acquiring authority to pay or deposit the amount of compensation on or before taking possession of the
land failing which it would be liable to pay the amount awarded with interest thereon at the specified rates.
3. In the present case the facts relevant to address the claim u/s 34 of the Act are that, Section 4 Notification in respect of the disputed land was
issued on 15th April 1983. Section 6 notice was published with corrigendum to Section 4 Notification on 27th June 1985. The award was
eventually passed on 26th June 1987 in relation to Gut No. 3 and Gut No. 6. Compensation awarded in respect of Gut No. 3 was Rs. 1,38,960/-
out of which only amount of Rs. 52,110/- was received by the petitioners on 12th March 1986. Balance outstanding amount of Rs. 86,850/- was
paid to the petitioners only on 25th Mach 1992. In so far as Gut No. 6 is concerned, the total compensation awarded was Rs. 88,250.40 paise
out of which, the petitioners had received only sum of Rs. 33,048/- on 12th March 1986 as advance payment. The balance amount of Rs.
55,202.40 paise remained outstanding which was paid on 25th March 1992. The aggregate of the outstanding amounts concerning Gut Nos. 3
and 6 worked out to Rs. 1,42,052.40 paise which was paid only on 25th March 1992.
4. In this backdrop the petitioners made representation to the acquiring authority to pay interest for delayed payment since as per Section 34 of the
Act, compensation amount had become payable soon after taking over possession of the land. However, in the present case the petitioners are
claiming interest only from the date of award on the basis that the interest component for the period after taking over possession till passing of the
award is already incorporated in the award passed by the acquiring authority. In other words, the claim for the interest is with effect from 26th June
1987 when the award was passed and the balance amount remained outstanding till 25th March 1992. Since the delay was more than one year in
the present case proviso to Section 34 of the Act would be attracted for which reason the petitioners would be entitled for interest at the rate of
15% per annum. Neither the Special Land Acquisition Officer took steps to pay the interest component within time nor the Collector acceded to
the request of the petitioners for releasing of such interest for the relevant period. As a matter of fact, the Collector rejected the claim of the
petitioners on the specious reason that during the relevant period some civil dispute was pending between family members of the petitioners. This
was the only reason stated in the communication dated 6th April 1993. We have no hesitation in taking a view that the said reason is preposterous
in the fact situation of the present case for more than one ground. Firstly, there was no injunction operating against the petitioners to avail of the
compensation amount in respect of Gut Nos.3 and 6 for which reason the petitioners were entitled to receive compensation amount in their own
right. Secondly, assuming that there was an injunction order of Court of competent jurisdiction against the petitioners or against the authority to
release the amount or to pay amount to the petitioners, nothing prevented the authority to deposit the said amount in Court, which would have
stopped the recurring liability of paying interest as per Section 34 of the Act. Section 34 plainly postulates that compensation has to be paid or
deposited. In other words, the acquiring authority has to either pay the amount to the claimant or for any reason or doubt payment could not be
made to the claimant, the acquiring authority is obliged to deposit the amount in Court. Only on compliance of any of the above, the authority is
extricated from liability to pay interest in terms of Section 34 of the Act.
5. In the present case the authority neither paid the amount directly to the petitioners after it became due and payable upon passing of the award on
25th June 1987 nor thought it appropriate to deposit the same in Court within reasonable time. Resultantly, on account of mandate of Section 34
of the Act, the petitioners would be entitled for claim of interest on the outstanding amount of Rs. 1,42,052.40 with effect from 26th June 1987
until 25th March 1992 as payable at the rate of 15% on account of proviso to Section 34 of the Act.
6. We, therefore, direct the respondent Nos. 2 and 3 to pay appropriate amount towards interest component on outstanding compensation amount
of Rs. 1,42,052.42 at the rate of 15% per annum with effect from 26th June 1987 till 25th March 1992 forthwith. The amount should be initially
paid by the office of the Special Land Acquisition Officer. But the same will have to be recovered from the concerned officers, who are
responsible for non payment of the said amount to the petitioners without good cause much less the cause which can be justified in terms of Section
34 of the Act. The Secretary of the Irrigation Department as well as the Secretary of the General Administration Department, Government of
Maharashtra, may take notice of this order and initiate appropriate action against the concerned officers namely the then Special Land Acquisition
Officer and/or the then Collector at the relevant point of time, who have caused loss to the public exchequer on account of non payment of dues
without any tangible cause which can be justified in terms of Section 34 of the Act. Besides the amount of interest payable to the petitioners, we
further order that the petitioners would be entitled to costs of this proceeding which is quantified at Rs. 25,000/- payable to the petitioners which
amount, as aforesaid, will be recovered from the erring officers on account of whose inaction the State has incurred the liability to pay the amount
specified in this order. The amount shall be paid to the petitioners not later than six weeks from today.
7. Rule is made absolute on the above terms.
