Sri.C.Basavaraju Vs the Special Land Acquisition Officer

THE SPECIAL LAND ACQUISITION OFFICER MYSORE URBAN DEVELOPMENT AUTHORITY (MUDA) JAANSI RANI LAKSHMI BAI ROAD MYSORE 570001 REPRESENTED BY ITS COMMISSIONER

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…RESPONDENT

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(BY SRI. T.P. VIVEKANANDA, ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER PASSED BY THE RESPONDENT IN L.A.C.30/1997-98 DATED 10.06.2024 VIDE ANNEXURE-A AND ETC.

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HC-KAR

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IN WP NO. 28647/2025

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BETWEEN:

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SRI. C.BASAVARAJU S/O LATE CHALUVARAJU, AGED ABOUT 53 YEARS,

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SRI. C. SHIVAKUMAR S/O LATE CHALUVARAJU, AGED ABOUT 46 YEARS,

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SMT. PARVATHI D/O LATE CHALUVARAJU, AGED ABOUT 42 YEARS,

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ALL ARE RESIDING AT NO.3526, 27^TH CROSS, JAVARAHATTI BEEDI, VEERANAGERE, LASHKAR MOHALLA, MYSORE- 570001

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...PETITIONERS

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(BY SRI. NIRANJANA M., ADVOCATE)

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AND:

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THE SPECIAL LAND ACQUISITION OFFICER MYSORE URBAN DEVELOPMENT AUTHORITY (MUDA) JAANSI RANI LAKSHMI BAI ROAD, MYSORE -570001 REPRESENTED BY ITS COMMISSIONER

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...RESPONDENT

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(BY SRI. T.P. VIVEKANANDA, ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER PASSED BY THE RESPONDENT IN LAC 48/28 (A)/94-95 DATED 10.06.2024 VIDE ANNEXURE-A AND ETC.

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THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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HC-KAR

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CORAM: HON'BLE MR. JUSTICE R. NATARAJ

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ORAL ORDER

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The petitioners have sought for a writ in the nature of certiorari to quash the orders bearing Nos.LAC/30/1997-98 and LAC 48/28 (A)/94-95 of even dated 10.06.2024 passed by the respondent in so far as it relates to granting interest at the rate of 12% per annum from the date of preliminary notification till the date of payment. The petitioners have sought for a writ in the nature of mandamus to direct the respondent to redetermine the interest at the rate of 15% per annum from the date of preliminary notification.

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(i) The petitioners claim that their lands were acquired by the State Government for the benefit of the respondent for formation of a layout. They contend that they filed applications under Section 28A of the Land Acquisition Act, 1894 for re-determining the compensation, which were registered as LAC/30/1997-98 and LAC 48/28 (A)/94-95 before the I Additional Senior Civil Judge at Mysuru. The petitioners

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also filed W.P.No.3479/2023 and W.P.No.9075/2023 concerning the proceedings under Section 28A of the Land

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HC-KAR

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Acquisition Act, which were allowed in part and the respondent was directed to pass an order on the applications filed by the petitioners under Section 28A of the Land Acquisition Act. The respondent then passed the impugned orders dated 10.06.2024 in terms of which, interest was calculated at the rate of 12% per annum from the date of preliminary notification.

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(ii) The petitioners claim that they are entitled to the interest at the rate of 15% per annum from the date of preliminary notification till the date of payment. The petitioners are therefore, before this Court challenging the orders dated 10.06.2024 passed by the respondent in so far as it relates to interest awarded and seeks for a direction for payment of interest at the rate of 15% per annum from the date of preliminary notification.

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The learned counsel for the petitioners submitted that the petitioners are deprived of the properties in question and that the respondent had not given adequate compensation within a reasonable time and that the petitioners had to move this Court for considering their applications under Section 28A of the Land Acquisition Act and therefore, the respondent is

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HC-KAR

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bound to make good, the loss of opportunity to the petitioners by awarding the interest at the rate of 15% per annum from the date of preliminary notification.

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The learned counsel for the respondent on the other hand contended that the petitioners are awarded 12% per annum interest from the date of preliminary notification till the date of payment. He contends that 15% interest can be awarded only in cases where the payment is not made within one year from the date of the award. He thus, contends that the petitioners have been granted all the benefits that they are entitled to and there is no statutory entitlement for the petitioners to claim interest at the rate of 15% per annum from the date of preliminary notification.

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I have considered the submissions of the learned

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counsel for the petitioners as well as the learned counsel for the respondent.

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The award of interest is governed under Section 34 of the Land Acquisition Act, which reads as follows:-

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" 34. Payment of interest .When the amount of such compensation is not paid or

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HC-KAR

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deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of nine per centum per annum from the time of so taking possession until it shall have been so paid or deposited:

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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 fifteen per centum 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."

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The petitioners are entitled to interest at the rate of 9% per annum from the date they lost possession till the date the compensation is paid. If any part of the compensation is paid into the Court after the date of expiry of the period of one year from the date on which possession is taken, interest at the rate of 15% per annum is payable from the date of expiry of the said period of one year. In the instant case, the petitioners have been granted interest at the rate of 12% per annum from the date of preliminary notification till the date of payment and there is no reason why the petitioners should be granted

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HC-KAR

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interest at the rate of 15% particularly when there are no particulars as to when the award was passed, when the compensation was paid and when possession of the acquired lands was taken from the petitioners. In that view of the

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matter, no interference is warranted with the impugned orders.

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