{"id":141252,"date":"1995-08-25T00:00:00","date_gmt":"1995-08-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/state-of-himachal-pradesh-ors-vs-shri-dharam-das-on-25-august-1995"},"modified":"2017-11-11T09:16:23","modified_gmt":"2017-11-11T03:46:23","slug":"state-of-himachal-pradesh-ors-vs-shri-dharam-das-on-25-august-1995","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/state-of-himachal-pradesh-ors-vs-shri-dharam-das-on-25-august-1995","title":{"rendered":"State Of Himachal Pradesh &amp; Ors vs Shri Dharam Das on 25 August, 1995"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">State Of Himachal Pradesh &amp; Ors vs Shri Dharam Das on 25 August, 1995<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1996 AIR  127, \t\t  1995 SCC  (5) 683<\/div>\n<div class=\"doc_author\">Author: K Ramaswamy<\/div>\n<div class=\"doc_bench\">Bench: Ramaswamy, K.<\/div>\n<pre>           PETITIONER:\nSTATE OF HIMACHAL PRADESH &amp; ORS.\n\n\tVs.\n\nRESPONDENT:\nSHRI DHARAM DAS\n\nDATE OF JUDGMENT25\/08\/1995\n\nBENCH:\nRAMASWAMY, K.\nBENCH:\nRAMASWAMY, K.\nHANSARIA B.L. (J)\n\nCITATION:\n 1996 AIR  127\t\t  1995 SCC  (5) 683\n JT 1995 (6)   519\t  1995 SCALE  (5)220\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\t\t O R D E R<br \/>\nLeave granted.\n<\/p>\n<p>     Though notice  has been served on the respondent on May<br \/>\n23, 1995,  none is  appearing either  through counsel  or in<br \/>\nperson.\t Notification\tunder  Section\t 4(1)  of  the\tLand<br \/>\nAcquisition Act,  1894 [for  short, `the Act&#8217;] was published<br \/>\non February  27, 1986  and the Collector passed the award on<br \/>\nMarch 29,  1987. Dissatisfied  therewith, the respondent had<br \/>\nfiled C.W.P. No.125\/86 and the High Court by its order dated<br \/>\nJuly 23, 1986 held that :\n<\/p>\n<blockquote><p>     &#8220;On the  amount of\t compensation payable<br \/>\n     to the  petitioner in  respect of\tland,<br \/>\n     interest at  the rate of 12 per cent per<br \/>\n     annum shall be paid from the date of the<br \/>\n     taking over  of possession till the date<br \/>\n     of payment\t of interim  compensation and<br \/>\n     of\t final\t compensation,\tif  there  is<br \/>\n     enhancement.   The\t   interest   payable<br \/>\n     accordingly  is  in  the  nature  of  an<br \/>\n     equitable compensation and such interest<br \/>\n     will be in addition to the compensation,<br \/>\n     solatium and  interest at\tthe statutory<br \/>\n     rate  which   will\t be   paid   to\t  the<br \/>\n     petitioner under  the law\tin respect of<br \/>\n     land, whether  awarded by\tthe Collector<br \/>\n     or\t enhanced  by  the  Court,  and\t such<br \/>\n     interest  will   not   be\t taken\t into<br \/>\n     consideration in  any  proceeding\tunder<br \/>\n     the Act  while  awarding  the  statutory<br \/>\n     compensation.&#8221;\n<\/p><\/blockquote>\n<p>Following that direction the award has been made thus:\n<\/p>\n<blockquote><p>     &#8220;Accordingly,  the\t award\twas announced by the Land<br \/>\n     Acquisition Collector and the respondent was paid as<br \/>\n     under :-\n<\/p><\/blockquote>\n<blockquote><p>     (a) Compensation for  the\t land\t    Rs.1750.00\n<\/p><\/blockquote>\n<blockquote><p>     (b) Interest @  12%  on  Rs.1750<br \/>\n     (from Oct. 1972 to 31.3.87)<br \/>\n     in the  nature of\tequitable compensation\tas per order<br \/>\n     dated 23.7.1986 of Hon&#8217;ble High Court. Rs.3045.00\n<\/p><\/blockquote>\n<blockquote><p>     (c) Amount awarded @ 12% from Oct. 1972 to March 1987<br \/>\n     u\/s.23(1-A)  of  the<br \/>\n     Land Acquisition Act.\t\t    Rs.3045.00\n<\/p><\/blockquote>\n<blockquote><p>     (d) Solatium @ 30%\t\t\t    Rs. 525.00\n<\/p><\/blockquote>\n<blockquote><p>\t\t\t\t\t&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;\n<\/p><\/blockquote>\n<blockquote><p>\t\t\t\t\t    Rs.8365.00\n<\/p><\/blockquote>\n<blockquote><p>\t\t\t\t\t&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;&#8221;\n<\/p><\/blockquote>\n<p>A reading  thereof clearly indicates that advance possession<br \/>\nwas taken  in 1972,  though notification under s.4(1) of the<br \/>\nAct was\t published on  February\t 19,  1986.  The  Court\t has<br \/>\nawarded under  s.23(1A) additional amount at 12% p.a. of the<br \/>\ncompensation from  October  19,\t 1972  to  March  1987.\t The<br \/>\nquestion, therefore,  is whether  the Court  is empowered to<br \/>\naward 12%  interest, in\t addition to benefits under s.23(1A)<br \/>\nof the\tAct as\tamended under  Amendment Act 68 of 1984. The<br \/>\ncontroversy is\tno longer  res integra. It is settled law by<br \/>\ncatena of  decisions of this <a href=\"\/doc\/1293836\/\">Court. In Mir Fazeelath Hussain<br \/>\n&amp;  Ors.\t v.  Special  Deputy  Collector,  Land\tAcquisition,<br \/>\nHyderabad<\/a> [(1995)  3 SCC  208], a  bench of  three Judges to<br \/>\nwhich one  of us  B.L. Hansaria, J. was a member, dealt with<br \/>\nthe power  of the  Court  to  grant  interest  on  equitable<br \/>\nconsideration and held thus :\n<\/p>\n<blockquote><p>     &#8220;10. It  has also been submitted by Shri<br \/>\n     Madhava  Reddy   that  higher   rate  of<br \/>\n     interest may  be ordered  to  do  equity<br \/>\n     between the  parties. We  are unable  to<br \/>\n     procede, as,  had present been a case of<br \/>\n     rewarding of any interest, we would have<br \/>\n     so, because,  interest in such cases may<br \/>\n     become payable  on\t equity,  for  it  is<br \/>\n     meant to  make good the loss suffered by<br \/>\n     a person  due to  delayed payment.\t This<br \/>\n     view has  been  reiterated\t recently  by<br \/>\n     this Court\t in Kalimpong Land &amp; Building<br \/>\n     Ltd. v.  State of\tWest Bengal [1994 (6)<br \/>\n     SCC 720],\tin which  payment of interest<br \/>\n     was ordered,  even when  acquisition was<br \/>\n     under Requisitioning  and Acquisition of<br \/>\n     Immovable\tProperty   Act,\t 1952,\twhich<br \/>\n     statute has  made no specific provision,<br \/>\n     unlike the\t Act at\t hand, for payment of<br \/>\n     interest. But  equity has\tno role\t when<br \/>\n     the  question   relates   to   rate   of<br \/>\n     interest. Whether\tthe rate  of interest<br \/>\n     should be 6% or 9% is not a matter which<br \/>\n     would  require   invocation  of  court&#8217;s<br \/>\n     equitable jurisdiction.  The same has to<br \/>\n     be governed  by statutory provision. Had<br \/>\n     the rate  of interest  been too  low, we<br \/>\n     could have\t perhaps  on  equity  granted<br \/>\n     some relief.  But 6%  has been  the rate<br \/>\n     for a  very long  period insofar  as the<br \/>\n     Act is concerned as the enhancement came<br \/>\n     only in 1984 whereas the Act is of 1894.<br \/>\n     So,  we  are  not\tsatisfied  if  equiry<br \/>\n     demands granting of relief in question.&#8221;\n<\/p><\/blockquote>\n<p>Similar view  was taken\t by this Court in several decisions.<br \/>\nIt is  settled legal  position that  when the  statute deals<br \/>\nwith payment  of interest to the claimants either under s.31<br \/>\nor s.28 of the Act, the Court has no power to award interest<br \/>\nin a  manner  other  than  the\tone  in\t which\tthe  statute<br \/>\nprescribes payment. It is seen that in a case where decision<br \/>\nhas been taken exercising the urgency power under s.17(4) of<br \/>\nthe Act and the award was made subsequent to the taking over<br \/>\npossession, obviously  the claimant  would  be\tentitled  to<br \/>\npayment of  interest under  s.31 from  the  date  of  taking<br \/>\npossession till\t the amount  is deposited  pursuant  to\t the<br \/>\naward of  the Collector\t under s.11.  On reference,  if\t the<br \/>\ncompensation is\t enhanced, under  s.28 of  the Act  and\t the<br \/>\nproviso thereto the claimants would be entitled to the rates<br \/>\nof  interest   specified  therein.   Apart  from  these\t two<br \/>\nprovisions, there  is  no  other  provision  under  the\t Act<br \/>\nempowering the Court to award interest on equitable grounds,<br \/>\nin addition  to statutory rates of interest prescribed under<br \/>\nthe Act.  Equitable consideration  has no  role to  play  in<br \/>\ndetermination of the compensation and the manner of awarding<br \/>\ninterest as  enjoined under  the  Act.\tThe  Act  is  to  be<br \/>\nadministered in\t the manner  laid in the Act and in no other<br \/>\nway. As a concomitance, the equity jurisdiction of the Court<br \/>\nis taken out and the Act enjoins the Court to grant interest<br \/>\nas per the statutory rates specified in the Act.\n<\/p>\n<p>     Thus, we  hold that  the finding of the High Court that<br \/>\nthe claimants would be entitled to payment of interest @ 12%<br \/>\non equitable grounds from the date of taking possession till<br \/>\ndate of\t deposit under\ts.12 in\t addition to  the  statutory<br \/>\nrates of  interest and\t12% additional amount under s.23(1A)<br \/>\nfor the same period is clearly illegal.\n<\/p>\n<p>     The appeal\t is accordingly allowed and the order of the<br \/>\nHigh Court  to the  extent of granting 12% interest from the<br \/>\ndate of\t taking possession,  namely, October, 1972 till date<br \/>\nof  deposit,   namely,\tMarch,\t 1987,\tis  illegal  and  is<br \/>\naccordingly set\t aside. But  the direction to pay additional<br \/>\namount under  s.23(1A) from  the date  of taking  possession<br \/>\ntill date  of  making  the  award  is  valid  and  needs  do<br \/>\ninterference as the claimants did not challenge the validity<br \/>\nof the\tnotification under  s.4(1) and\tthe possession taken<br \/>\nmust be referable to it. No costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India State Of Himachal Pradesh &amp; Ors vs Shri Dharam Das on 25 August, 1995 Equivalent citations: 1996 AIR 127, 1995 SCC (5) 683 Author: K Ramaswamy Bench: Ramaswamy, K. PETITIONER: STATE OF HIMACHAL PRADESH &amp; ORS. Vs. RESPONDENT: SHRI DHARAM DAS DATE OF JUDGMENT25\/08\/1995 BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. HANSARIA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-141252","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>State Of Himachal Pradesh &amp; Ors vs Shri Dharam Das on 25 August, 1995 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/state-of-himachal-pradesh-ors-vs-shri-dharam-das-on-25-august-1995\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"State Of Himachal Pradesh &amp; 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