{"id":15200,"date":"2005-09-14T00:00:00","date_gmt":"2005-09-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/vasant-balkrishna-wale-vs-vithal-mahadeo-deshmukh-and-ors-on-14-september-2005"},"modified":"2018-04-09T04:51:09","modified_gmt":"2018-04-08T23:21:09","slug":"vasant-balkrishna-wale-vs-vithal-mahadeo-deshmukh-and-ors-on-14-september-2005","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/vasant-balkrishna-wale-vs-vithal-mahadeo-deshmukh-and-ors-on-14-september-2005","title":{"rendered":"Vasant Balkrishna Wale vs Vithal Mahadeo Deshmukh And Ors. on 14 September, 2005"},"content":{"rendered":"<div class=\"docsource_main\">Bombay High Court<\/div>\n<div class=\"doc_title\">Vasant Balkrishna Wale vs Vithal Mahadeo Deshmukh And Ors. on 14 September, 2005<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2006 (1) BomCR 669, 2005 (4) MhLj 957<\/div>\n<div class=\"doc_author\">Author: R Khandeparkar<\/div>\n<div class=\"doc_bench\">Bench: R Khandeparkar, V Khandeparkar<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>R.M.S. Khandeparkar, J.<\/p>\n<p>1. Heard. The petitioner by the present petition seeks  direction for payment of interest over the amount  deposited after a period of about 9 years from the date  of the award in the proceedings under Section 30 of the  Land Acquisition Act, 1894, hereinafter referred to as  &#8220;the said Act&#8221;.\n<\/p>\n<p>2. The undisputed facts in the case in hand are that  the award under Section 11 of the said Act was passed on  15-11-1978 and the possession of the land was taken on  16-12-1978. While the amount awarded under the said  award to the tune of Rs.96,648.88 ps. was deposited in  the Court while making reference under Section 30 of the  said Act only on 8-10-1987, no amount of interest over  and above the sum awarded under the award dated  15-11-1978 was deposited in the reference Court while  depositing the awarded amount of Rs.96,648.88 ps.\n<\/p>\n<p>3. The learned Advocate appearing for the petitioner,  while drawing attention to Section 34 of the said Act  submitted that it was the duty of the Collector to  deposit the awarded amount along with the interest at  the rate of 9% for the first year from the date of the  award and for the remaining period at the rate of 15%  per annum till the date of deposit of the amount. The  learned Asst. Government Pleader submitted that the  petitioner had enough opportunity of filing appeal  against the final award passed by the reference Court  under Section 30, besides that the petitioner had failed  to demand such interest till April, 1992 and for the  first time claimed the interest as late as on 29-4-1992  and that was much beyond the period of 3 years from the  date of deposit of the amount and therefore the claim  for interest was already barred by the law of  limitation.\n<\/p>\n<p>4. Upon hearing the learned Advocates for the parties,  three points arise for consideration:- (i) Whether it was obligatory for the Land  Acquisition Officer to deposit the awarded  amount along with the interest accrued thereon,  while referring the matter under Section 30 of  the said Act?  (ii) Whether the claim for interest is barred by the  law of limitation?  (iii) Whether the petitioner could claim such amount  by way of writ petition?\n<\/p>\n<p>5. The Section 34 of the said Act clearly provides that  when the amount of the compensation fixed under Section  11 of the said Act is not paid or deposited on or before  taking possession of the land, the Collector shall pay  the amount awarded with interest thereon at the rate of  9% per annum from the time of so taking possession until  it shall have been so paid or deposited, provided that  if such compensation or any part thereof is not paid or  deposited within a period of one year from the date on  which possession is taken, interest at the rate of 15%  per annum shall be payable from the date of expiry of  the said period of one year on the amount of  compensation or part thereof which has not been paid or  deposited before the date of such expiry.\n<\/p>\n<p>6. The statutory provisions comprised under Section 34,  therefore, makes it abundantly clear that it is the duty  of the Collector to deposit the interest amount along  with the amount awarded under Section 11 when the matter  is referred for adjudication in terms of the provisions  of Section 30 of the said Act. In case such amount is  deposited within a period of one year from the date of  taking over of the possession of the land, the interest  rate would be 9% per annum. However, in case the  Collector fails to deposit the amount within such period  of one year, then the interest to be paid for the period  after the expiry of one year would be at the rate of 15%  per annum.\n<\/p>\n<p>7. In the case in hand, it is not in dispute that the  possession was taken as long back as on 16-12-1978 while  the amount awarded under Section 11 of the said Act was  deposited as late as on 8-10-1987 and, that too, without  any interest being added to the said amount. Evidently,  therefore, the Collector had not complied with his  obligation under Section 34 of the said Act. Once it is  clear that it was the statutory obligation of the  Collector to pay interest along with the deposit of the  amount consequent to taking over the possession of the  land, merely because the party had failed to make demand  in that regard, that cannot absolve the Collector from  his responsibility to deposit the interest. The Section  nowhere requires any demand to be made by the person  interested. On the contrary, it clearly speaks of  statutory obligation to pay interest at the specified  rate, irrespective of the fact whether there is demand  or not for such interest. Being so, the question of  applicability of the law of limitation as such would not  arise at all. The default on the part of the Collector  would continue till the date the Collector fails to  deposit the amount and in that respect the cause of  action would be continuing one and would arise every day  of default on the part of the Collector.\n<\/p>\n<p>8. The contention about the availability of appeal  remedy against the award under Section 30 also would not  debar the claimant from approaching this Court under  Article 226 of the Constitution of India. The  Collector&#8217;s duty to pay interest on the awarded amount  relates to statutory obligation of the public authority  and failure to perform such obligation and consequently  the right of the petitioner in that regard being  affected. Besides, it is not in dispute that at one  point of time there was specific demand in that regard.  Being so, once the petitioner has been able to show that  he had made a specific demand for performance of  statutory obligation by the public authority for the  benefit of the petitioner and such public authority had  failed to perform such obligation, certainly the  petition for issuance of writ of mandamus would be  maintainable and particularly when the matter does not  involve any disputed questions of fact.\n<\/p>\n<p>9. The first and the third points for consideration,  therefore, are answered in affirmative, while the second  point for consideration is answered in negative.\n<\/p>\n<p>10. The petitioner has furnished the calculation  regarding the amounts so payable in terms of the  provisions of Section 34 on the compensation of  Rs.96.648.88 ps. The same reads thus:-\n<\/p>\n<pre>  \"Since 16.12.78 to 15.12.79          Rs. 8,217.09\nat the rate of 9% for first year\nSince 16.12.79 to 15.12.86           Rs. 95,866.05\nfor 7 years at 15%\nSince 16.12.86 to 15.9.87            Rs. 10,271.25\nInterest for nine month at\nthe rate of 15%\nSince 16.9.1987 to 8.10.1987\nat the rate of 15%                   Rs. 912.91\nSo the total comes to                Rs.1,15,267.30\n\n \n\nThis is the additional claim statement.\" \n \n\n<\/pre>\n<p>The calculations submitted as above are not in dispute.  Being so, the respondents were duty bound to deposit the  sum of Rs.1,15,267.30 ps. being the interest payable on  the compensation amount in terms of Section 34 as on  10-10-1987.\n<\/p>\n<p>11. The petition, therefore, succeeds. The respondents  are directed to deposit the said amount of  Rs.1,15,267.30 ps. within a period of four weeks from  today in the District Court at Pune who shall apportion  and disburse the same in accordance with the award dated  7-1-1994 in Land Reference No.5 of 1988, as  expeditiously as possible. The rule is made absolute in  above terms with costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court Vasant Balkrishna Wale vs Vithal Mahadeo Deshmukh And Ors. on 14 September, 2005 Equivalent citations: 2006 (1) BomCR 669, 2005 (4) MhLj 957 Author: R Khandeparkar Bench: R Khandeparkar, V Khandeparkar JUDGMENT R.M.S. Khandeparkar, J. 1. Heard. The petitioner by the present petition seeks direction for payment of interest over the amount [&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":[11,8],"tags":[],"class_list":["post-15200","post","type-post","status-publish","format-standard","hentry","category-bombay-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Vasant Balkrishna Wale vs Vithal Mahadeo Deshmukh And Ors. on 14 September, 2005 - 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\/vasant-balkrishna-wale-vs-vithal-mahadeo-deshmukh-and-ors-on-14-september-2005\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vasant Balkrishna Wale vs Vithal Mahadeo Deshmukh And Ors. on 14 September, 2005 - Free Judgements of Supreme Court &amp; 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