02.09.2025 …Appellan llant v. CORAM : HON’BL PTA N’BLE
Case Details
RSA No. 4055 of of 2017 IN THE HIG HIGH COURT OF PUNJAB AND HAR HARYANA AT CHANDIGARH &M) RSA No. 4055 of 2017(O&M Reserved on: 27.08.2025 2025 2025 Pronounced on:02.09.2025 …Appellan llant …Respondent ents Land Acquisition ana tion Collector, Panchkula, Haryana Chetan Singh & O & Ors. Versus CORAM : HON’BL PTA N’BLE MR. JUSTICE DEEPAK GUPTA Mr. Gaurav Garg, AAG Haryana Argued by:- Mr. For the appellant. For t Mr. Mr. Sanjiv Gupta, Advocate For the respondents. For t *** DEEPAK GUPTA, TA, J. It is defendant's second appeal ag It is l against the concurrent findings o gs of elow, the courts below inasmuch as suit seekin and eking unliquidated damages and mandatory injun njunction filed by plaintiffs Chetan dents tan Singh and others (respondents herein) was decr decreed by the trial Court on 06.03. .03.2014, and the said findings wer were affirmed by the the First Appellate Court vide jud judgment dated 13.02.2017, whil while dismissing the ap e appeal of the defendant-appellan llant. 2. To avoid confusion, parties shall To a hall be referred as per the statu tatus before the trial ial Court. 3. The admitted facts are that land o The d of the plaintiffs was acquired fo d for setting up Secto ector 32-33 Urban Estate, Karnal. nal. Pursuant to notification unde nder Section 4 of the the Land Acquisition Act, 1894, follo ation followed by subsequent notification under Section 6 o n 6 of the Act, award N: 23 was pas 004. s passed by Collector on 21.12.2004 Due to dispute r te regarding entitlement between een the co-sharers, no amount wa was paid to the plain
Legal Reasoning
laintiffs. Defendants neither depo the eposited the said amount with the JITEN SHARMA 2025.09.02 17:59 I attest to the accuracy and integrity of this document Page N: 1 of 8 RSA No. 4055 of of 2017 Court as required uired under Section 31 of the Land Land Acquisition Act nor made an any reference under der Section 30 of the Act and ra d rather, retained the same. Afte After partitioning of th of the land amongst the co-sharers, tered ers, mutation No. 6930 was entered and sanctioned a ed and later on, compensation rega paid regarding the acquired land was paid to the plaintiffs tiffs on 04.08.2009. Plaintiffs cla d to claimed that they are entitled to interest @ 18% p 8% per annum from the date of awa award till the date of payment. The They sent a legal notic notice dated 27.07.2007 upon the d he defendants calling upon them to make payment o nt of interest within 15 days, but to t to no effect and hence the suit. 4. The defendant The (appellant herein erein) raised certain preliminar inary objections and p nd pleaded that there was no provi rovision in the Land Acquisition Ac n Act to pay interest @ st @ 18% per annum. It was further her submitted that amount was no s not intentionally reta retained by the defendant. With t ith this stand, defendant prayed fo d for dismissal of the s he suit. 5. After framing necessary issues an Afte and taking evidence produced b d by both the parties rties, trial Court decreed the suit held uit with costs. Plaintiffs were held entitled to receiv eceive interest @ 9% per annum um from the date of award of th f the compensation til till the date of actual realization tion from the defendant. Defendan dant was further direc directed to make payment of the s he said interest within two month nths from the date ate of passing of the judgment d nt dated 06.03.2014 with furthe rther direction that if t if the defendant fails to make two ke payment of interest within two months, then it w it will be liable to pay the interest @ est @ 18% per annum. 6. The Appellate Court affirmed these The while ese findings of the trial Court, while dismissing the ap e appeal of defendant – appellant nt on 13.02.2017. 7.1 Assailing the aforesaid concurrent Assa y the ent findings, it is contended by the learned Governm ernment Pleader for the appellan llant that the respondent-plaintiff ntiffs along with other thers had filed Civil Writ Petition N on No. 17089 of 2005 assailing th g the acquisition proce roceedings and for releasing of th f their land. Said writ petition wa was
Decision
disposed of on 2 on 27.10.2005 with liberty to them em to file representation-grievanc ance before the com competent authority in terms after, rms of public notice. Thereafter respondents-plai plaintiffs filed a d detailed representation before the the JITEN SHARMA 2025.09.02 17:59 I attest to the accuracy and integrity of this document Page N: 2 of 8 RSA No. 4055 of of 2017 competent autho uthority i.e., High Powered Commit mittee, which rejected the claim o im of the said respond ondents on 05.09.2008. 7.2 It is further submitted that the co It is 119, co-sharers of Khewat No. 258, 119 226 and 227 wer were contesting with each other re filed r regarding their share and had filed a partition case ase before the revenue authority said rity Karnal, which decided the said case of partition ition and subsequently, Mutation and ation No. 6930 was entered and sanctioned on on 27.05.2009. After sanctioning ning of the said mutation, th the respondents-plai plaintiffs approached the appellant e on llant-defendant for the first time on 29.07.2009 to se o seek compensation amount of th paid f the acquired land, which was paid to them on 04.08 4.08.2009. It is further submitted th s had d that the respondent-plaintiffs had already transferr sferred their rights in the name of f the e of private builders by way of the collaboration ag agreement and as such, they ey were not interested in liftin ifting the compensatio ation amount from the Land Acqu Acquisition Collector. As such, the they themselves were ere liable for the delay and so they rest. they are not entitled to any interest. 7.3 Apart from above, Ld.Government Apar t the ent Pleader further pleaded that the direction of the t he trial Court and as affirmed by the y the Appellate Court to pay interes erest @ 18% after two two months is absolutely not justici sticiable. 7.4 With these submissions, prayer is m With is made to set aside the judgment ents and decrees pass passed by the Courts below and to d to dismiss the claim of the plaintiff ntiffs by allowing this a his appeal. 8.1 Refuting the aforesaid contentions Refu unsel ions, it is urged by learned counse for the respon pondents-plaintiffs that even if there was dispute regardin if rding apportionment o nt of compensation amongst the co e co-sharers, it was the duty of th f the Land Acquisition tion Collector to deposit the amoun ount in the Court as required unde nder Section 31 of the f the Land Acquisition Act and theref erefore, the appellant cannot justif ustify non-payment of t of interest. 8.2 Learned counsel for the respond Lear ondents further pointed out tha that contention to th o the effect that plaintiffs had assa assailed the acquisition proceeding dings before Hon’ble H ble High Court and later on their r ed in eir representations were decided in 2008 by the High High Power Committee, is raised fo ourt, d for the first time before this court JITEN SHARMA 2025.09.02 17:59 I attest to the accuracy and integrity of this document Page N: 3 of 8 RSA No. 4055 of of 2017 as no such stand tand was taken before the trial Cou filed Court in the written statement filed by the appellan ellant-defendant. With these sub submissions, prayer is made fo for dismissal of the a he appeal. 9. This court has considered submiss This missions of both the sides and ha has appraised the re e record carefully. 10. As the provisions of the Land Acq As t Acquisition Act 1894 would revea veal, after enquiring in ng into all the objections raised by t by the interested persons in respec spect of the acquisitio isition proceedings, concerned Co e an Collector is required to make an award in terms rms of Section 11 of the Land Ac Acquisition Act in respect of th f the following:- I. II. III. the true area of the land; the t the compensation which in his opi the r the opinion should be allowed for the land; and land the apportionment of said compe the mpensation among all the person rsons known or believed to be intereste know rested in the land, of whom, or o or of whose claims, he has wh informa rmation, whether or not they the have respectively appeared before h have ore him. 11. Still further, Section 12 of the Act pr Still provides as under:- “12. Awar Award of Collector when to be final. (1) Such a ch award shall be filed in the Colle pt as Collector’s office and shall, except as hereinafter fter provided, be final and conclusive e sive evidence, as between the Collecto lector and the per persons interested, whether they hav e the have respectively appeared before the Collector or or or not, of the true area and value o lue of the land, and the apportionmen ment of the comp ompensation among the persons intere interested. (2) The Colle Collector shall give immediate notice o rsons tice of his award to such of the persons interested a ted as are not present personally or b n the or by their representatives when the award is ma is made.” 12. It is clear from the aforesaid prov It is provision that whether the person rsons interested in the the acquired piece of land have a ve appeared before the Collector o or or JITEN SHARMA 2025.09.02 17:59 I attest to the accuracy and integrity of this document Page N: 4 of 8 RSA No. 4055 of of 2017 not, award is to is to be final qua the true are area and the apportionment o t of compensation am n among the persons interested d to d and the Collector is required to give immediate n ate notice of his award to such of of the person interested as are no e not present personal onally or by their representatives, when the award is made. 13. In the present case, there is neither In th ither any pleading of the defendan dant- appellant nor th r there is any evidence to show th t had w that the appellant-defendant had served any notice otice upon the plaintiffs after prono onouncement of the award. 14. Still Still further, Section 30 prov provides about dispute as to to apportionment; ; whereas, Section 31 provid rovide about the payment o t of compensation or n or deposit of the same in Court. These provisions read as under: er:- “Section 30 n 30 Dispute as to apportionment- ation When the amount of compensation has been se n settled under section 11, if any dispu dispute arises as to the apportionmen ment of the same same or any part thereof, or as to the o any the persons to whom the same to any part thereof ereof, is payable, the Collector may re ay refer such dispute to the decision o on of rt. the Court. Section 31. 31. Payment of compensation or dep deposit of same in Court. (1) On maki making an award under section 11, the , the Collector shall tender payment o nt of the compen pensation awarded by him to the p ereto he persons interested entitled thereto according to ing to the award and shall pay it to th e one to them unless prevented by some one or more of t e of the contingencies mentioned in the n the next sub-section. (2) If they s ey shall not consent to receive it, or if nt to or if there be no person competent to alienate the e the land, or if there be any dispu e the ispute as to the title to receive the compensati nsation or as to the apportionment of it the nt of it, the Collector shall deposit the amount of t of the compensation in the Court to ction rt to which a reference under section 18 would be ld be submitted: Provided that any person admitted to Provi such ed to be interested may receive such payment un nt under protest as to the sufficiency of cy of the amount: Provided also that no person who ha Provi rwise o has received the amount otherwise than under der protest shall be entitled to make a 8: ke any application under section 18: JITEN SHARMA 2025.09.02 17:59 I attest to the accuracy and integrity of this document Page N: 5 of 8 RSA No. 4055 of of 2017 Provided also that nothing herein con Provi contained shall affect the liability o ity of any person rson, who may receive the whole o ation le or any part of any compensation awarded un d under this Act, to pay the same to th eto. to the person lawfully entitled thereto. (3) & (4) xxx ) xxxxxxxxxxxxx (not relevant).” [Bold & italicized p ed portion emphasised by this court ourt] 15. The above provisions make it clear The pute lear that in case there is any dispute as to the apporti ortionment of the compensation a on amount or any part thereof or a or as to the persons t ns to whom the same or any par the part of the amount is payable, the Collector is requi equired to refer such dispute to the o the decision of the court. Not onl only this, as and wh when there is any dispute as as to the title or to receive th the compensation or or as to the apportionment of of it, the Collector is mandatoril torily required to depo deposit the amount of the compen pensation in the Court to which ich a reference under ted. der Section 18 would be submitted. 16. In the present case, In t it is not llant- not the case of the appellant defendant that f at after pronouncement of the award, th it deposited the the compensation am amount before the court concer pute ncerned on account of the dispute regarding apport portionment between the plaintiffs tiffs and the other co-sharers, as wa s was required under S er Section 31 of the Act. Once it is it is so, defendant-appellant canno nnot be allowed to esc o escape from its liability to pay the the interest. 17. The contention of learned counse The unsel for the appellant that a wri writ petition had be been filed by the plaintiffs a fs along with others challengin nging the acquisition p n proceedings and that pursuant ant to the order of the High Court ourt, representation was decided by the High Power C there er Committee in 2008, or that there was dispute amo amongst the co-sharers regarding a yond ng apportionment, is though beyond pleadings, but ev t even if such contention is conside Land sidered, it had not stopped the Land Acquisition Colle Collector - appellant to deposit sit the amount before the Cour ourt concerned as req required under Section 31 of the A he Act, to which the reference unde nder Section 18 woul ould have been made. No such Land uch step was taken by the Land Acquisition Colle Collector and as such, the conte ontention raised by the rned learned Government Plea Pleader for the appellant has no for o force. JITEN SHARMA 2025.09.02 17:59 I attest to the accuracy and integrity of this document Page N: 6 of 8 RSA No. 4055 of of 2017 18. As far as the rate of interest is con As f Land concerned, Section 34 of the Land Acquisition Act, 1 ct, 1894 reads as under. “34. Payme yment of interest - When the amount paid ount of such compensation is not paid or deposit sited on or before taking possession o ll pay ion of the land, the Collector shall pay the amount ount awarded with interest thereon at on at the rate of [nine per centum] pe ] per annum from from the time of so taking possession ssion until it shall have been so paid o id or ed: deposited: Provided th d that if such compensation or any pa sited y part thereof is not paid or deposited within a per a period of one year from the date on e on which possession is taken, interes erest at the rate rate of fifteen per centum per annum num shall be payable from the date o te or expiry of th of the said period of one year on the the amount of compensation or par part thereof whic which has not been paid or deposited ited before the date of such expiry.” 19. It is clear from the aforesaid pro It is provision that when the amoun ount of compensation tion is not deposited on or before land, fore taking possession of the land Collector is requ equired to pay the interest on th n the awarded amount @ 9 % pe per annum from the the date of so taking possession un until it shall have been so paid o id or deposited. As pe s per Section 16 of the Act, Collect ssion llector is entitled to take possession immediately on a on announcement of the award. St . Still further, in case the amount o nt of compensation is n is not paid or deposited within a date n a period of one year from the date on which the po e possession is taken, then interest yable rest @ 15 % per annum is payable from the date o te of expiry of the said period iod of one year on the amount of n. compensation. 20. In the present case, it is not in disp In th dispute that award was announce nced on 21.12.2004 a 4 and the payment to the plaint e on laintiffs-respondents was made on 04.08.2009. As As the compensation amount t tiffs- t to the share of the plaintiffs respondents wa was not deposited before the Co , the e Court concerned, therefore, the appellant-defend fendant was required to pay an in interest @ 9 % per annum for for a period of one y e year with effect from 21.12.20 2.2004 and thereafter @ 15 % pe per annum till paym ayment. However, the trial Court h rt has awarded interest @ 9 % pe per annum, which ha h has been affirmed by the First Ap t Appellate Court. The plaintiffs hav have not approached t ed this Court to seek higher rate of e of interest. As such, the findings o gs of JITEN SHARMA 2025.09.02 17:59 I attest to the accuracy and integrity of this document Page N: 7 of 8 RSA No. 4055 of of 2017 the Courts below elow awarding interest @ 9 % pe ation per annum on the compensation amount from the the date of award till the date of pa of payment, is hereby upheld. 21. The defendant-appellant was afford The forded opportunity by the trial cour court to pay the afores oresaid interest within two months nths from the date of the passing o ng of the judgment da t dated 06.03.2014 and in case t se they fail to do so, then to pa pay interest @ 18 % p 8 % per annum. 22. he appellant-defendant failed to The two to make the payment within two months as per tr er trial court judgment. However, er, interest @ 18 % after 2 month nths period appears to rs to this court to be on the excessi essive side. 23. As s s such, it is directed that apart fro num t from the interest @ 9% per annum on the compens ensation amount from the date o ctual te of award (21.12.2004) till actua payment (04.08. .08.2009), defendant-appellant sha shall also pay interest @ 6 % pe per annum on this in is interest component from the da ation e date of payment of compensation amount i.e. 04.0 04.08.2009 till the amount of actua ctual realization of the said interes erest component to th o the respondents-plaintiffs. 24. The orders passed by the Courts The ly to ourts below are modified only to the aforesaid ext extent. Appeal is disposed of accor ccordingly. 02.09.2025 Jiten Whe Whe hether speaking/reasoned hether reportable : Yes/No : Yes/No (DEEPAK GUPTA) JUDGE JITEN SHARMA 2025.09.02 17:59 I attest to the accuracy and integrity of this document Page N: 8 of 8