Ram Bhajan Singh v. The State of Bihar

Patna High Court C.R. No.587 of 2008 (11) dt.24-01-2013 2 The learned Sub-Judge 3rd, Rohtas at Sasaram after considering the rival contentions has passed a decree on 2.2.1994, copy whereof is placed at Annexure-1 of this application. In terms of the compensation quantified by the learned Sub-Judge, the petitioner was found entitled to a compensation amount on the market value of the land at Rs.4,20,000/-. The petitioner was further awarded solatium @ 30% on the said valuation which came to Rs.1,26,000/-. Thus the total compensation amount was quantified at Rs.5,46,000/- . As an amount of Rs.16,647.97 was already paid by the Collector, hence the balance amount payable the petitioners was Rs.5,29,352.03. On the balance compensation amount of Rs.5,29,352.03 the learned Sub-Judge was pleased to award interest @ 15% per annum payable with effect from the date of the notification dated 17.4.1973 until the date of the decree dated 2.2.1994 which was calculated at Rs.16,51,360.79 and the total amount payable to the petitioners was arrived at Rs.21,80,712.82. The learned Sub-Judge was further pleased to hold that the petitioners would be entitled to a further interest @ 15 % per annum until the date of realization of the said amount. As the opposite parties failed to comply with the decree hence the petitioners filed an execution case on

14.10.2004 giving rise to Execution Case No.3 of 2004 calculating the total compensation amount together with interest Patna High Court C.R. No.587 of 2008 (11) dt.24-01-2013 3 payable until 13.10.2004 which according to the petitioners came to Rs.56,78,940/-. As there were laches on the part of the opposite parties in contesting the execution proceedings the executing court issued a proclamation of sale on 27.7.2007. It is after issuance of the sale proclamation that the Government Pleader appeared. As again the Government Pleader failed to contest the matter hence the executing court ordered for auction sale of the property fixing the date of sale on 3.11.2007. The decree holder- petitioner no.2 upon permission being granted under the provisions of section 72 of the Code of Civil Procedure (hereinafter referred to as ‘the Code’) purchased the property sold in the auction sale for the amount of Rs.56,78,940/- and whereafter a petition was filed to set off the decretal amount. It is at this stage that a petition in question was filed by the judgment debtors on 22.12.2007 under the provisions of Order 21 rule 59(b) of the Code read with sections 151 and 152 thereof pointing out therein the infirmity in calculation of interest by the decree holders-petitioners claiming the decretal amount of Rs.56,78,940/-. The petition filed by the judgment debtors having been allowed under the order dated 14.1.2008 of the learned Sub-Judge 3rd, Rohtas at Sasaram and hence the present application. Patna High Court C.R. No.587 of 2008 (11) dt.24-01-2013 4 The only issue which fell for consideration before the learned executing court and also falls for consideration before this Court is whether the calculation of interest made by the petitioners-decree holders of Rs.56,78,940/- which was the subject-matter of execution proceedings, is correct. Mr. Subhash Kumar, learned counsel appearing for the petitioners has submitted that the executing court could not have gone beyond the decree and as the decree passed by the Land Acquisition Judge on the reference made by the Collector entitled the petitioners to 15% interest on the unpaid compensation amount hence the calculation made by the petitioners which was subject-matter of execution proceedings, i.e. Rs.56,78,940/- suffered from no infirmity. It is the case of the petitioners that as the balance decretal amount of Rs.21,80,712.82 was not paid by the defendants hence the petitioners raised the claim for the said amount together with interest @ 15% per annum, in terms of the decree but the learned court below has in fact gone beyond the decree while passing the impugned order. It is further the case of the petitioner-decree holders that as the appeal against the award filed by the judgment debtors giving rise to F.A. No.392 of 1994 was dismissed for non-prosecution on 22.6.2012 hence the decree of the Land Acquisition Court has become final and Patna High Court C.R. No.587 of 2008 (11) dt.24-01-2013 5 cannot be re-opened. A counter affidavit has been filed on behalf of the judgment-debtors and which is on record. It is the case of the judgment debtors that the amount of Rs.21,80,712.82 found payable to the petitioners by the Land Acquisition Judge included the element of interest also quantified @ 15% payable with effect from 17.4.1973 to the date of the order, i.e. 2.2.1994 and which was to the tune of Rs.16,51,360.79. It is stated that the Land Acquisition Judge while passing the decree has held the petitioners entitled to a further interest @ 15% per annum on the compensation amount until the date of realization of the said amount. It is thus contended that since the Land Acquisition Court did not award compound interest on the amount found payable to the petitioners hence the interest would be payable on the balance compensation amount of Rs.5,29,352.03. It is contended that the calculation made by the petitioners for claiming Rs.56,78,940/- is not correct. It is stated that the petitioners have claimed interest @ 15% on the entire balance amount of Rs.21,80,712.82, which is inclusive of interest and if allowed, it would amount to award of compound interest which is nowhere found in the decree. It is the case of the judgment debtors that a calculation was made by them and until the date of payment i.e. 22.2.2008 the petitioners were found entitled to a Patna High Court C.R. No.587 of 2008 (11) dt.24-01-2013 6 total amount of Rs.33,52,910.43 by way of interest compensation amount and interest thereon calculated with effect from 17.4.1973 until the date of payment, i.e. 22.2.2008. The calculation made by the judgment debtors @ 15% on the compensation amount of Rs.5,29,352.03 with effect from

17.4.1973 until 22.2.2008 comes to Rs.33,52,910.43 is not disputed by the petitioners but he submits that the calculation of further interest should not have been on Rs.5,29,352/- rather the further interest should have been calculated on Rs.21,80,712.82 which is the decretal amount. I have heard learned counsel for the parties and have perused the materials on record including the order impugned. The only issue that falls for consideration before this Court is as to whether the claim raised by the petitioners is in consonance with the decree and whether the finding of the court below impugned in this application is consonance with law. Whereas it is the case of the decree-holders that they are entitled to interest @ 15% from the date of the decree, i.e.

2.2.1994 until the date of payment, i.e. 22.2.2008 on the entire balance amount which forms the decree, the claim is contested by the judgment debtors on grounds that as no compound interest was awarded by the Land Acquisition Court hence the claim is beyond the decree. It is not in contest that the further Patna High Court C.R. No.587 of 2008 (11) dt.24-01-2013 7 interest awarded by the Land Acquisition Judge @ 15% is in terms of section 34 of the Act. The element of interest payable under section 34 of the Act came up for consideration before a Constitution Bench of the Supreme Court in the case of Sunder vs. Union of India reported in (2001)7 SCC 211 and it was held that the interest payable to the land-holders under section 34 of the Act would be in terms of the compensation awarded under section 23 of the Act including the solatium and other components. It is manifest from the decree of the Land Acquisition Court that the compensation quantified by the court in terms of section 23 of the Act is Rs.5,46,000/- which is inclusive of solatium amount payable under the said provisions. The interest amount has been awarded for the period of delay @ 15% making the total amount payable at Rs.21,80,712.82. Though the Land Acquisition court has proceeded to award a further interest @ 15% on the compensation amount until realization thereof but it nowhere indicates that the further interest is payable on the entire balance amount rather anticipating delay the court has allowed the interest on the compensation amount until the realization thereof. Meaning thereby all that the Land Acquisition Court has done is to extend the period of interest quantified @ 15% from 2.2.1994, i.e. the date of decree until the date of realization. Any other Patna High Court C.R. No.587 of 2008 (11) dt.24-01-2013 8 interpretation to the decree, would be going behind the same. For the reasons aforesaid, no legal infirmity or jurisdictional error can be found in the order impugned and it is founded on correct appreciation of law and after taking note of the judgment of the Supreme Court in the case of Sunder (supra). That the petitioners have already received the entire amount of compensation including interest @ 15% with effect from the date of notification as stated in paragraph 10 of the counter affidavit and not denied, nothing survives for the decree- holders in the present proceedings. This application is accordingly dismissed. SKPathak/- (Jyoti Saran, J)