Skip to main content

Deposit of compensation amount in government treasury is not equivalent to compensation

High Court of Bombay

Ramesh Narayan Patil and Others v. The State of Maharashtra and Others

Land Acquisition

Deposit of compensation amount in government treasury is not equivalent to compensation paid to landowners/persons interested

Instant Petition by Petitioners claiming to be legal heirs of owner of land situated at Talavali village, Taluka and District Thane within municipal limits of Navi Mumbai Municipal Corporation are seeking declaration to effect that, acquisition proceedings in respect of said land, resulting in award dated 31st August, 1984 deemed to have lapsed in view of Section 24 of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Learned Senior Counsel for Corporation, land owner having refused to accept amount of compensation, benefit of Section 24 of Act of 2013 will not be available to Petitioners. Issue involved is whether offer by Special Land Acquisition Officer to pay compensation amount to land owner and denial to receive same by him and thereafter deposit of it by SLAO in Government Revenue Account can be treated to be compensation “paid” within meaning of Section 24(2) of Act of 2013.

As per Section 31 of Land Acquisition Act, 1894, on making an award under Section 11 of Land Acquisition Act, 1894, Collector shall tender payment of compensation awarded by him to the persons interested entitled thereto according to award, and shall pay it to them unless prevented by some one or more of contingencies mentioned in next subsection. If they shall not consent to receive it, or if there be no person competent to alienate the land, or if there be any dispute as to title to receive compensation or as to the apportionment of it, Collector shall deposit amount of compensation in the Court to which a reference under Section 18 of Land Acquisition Act, 1894 would be submitted.

For purposes of Section 24(2) of Act of 2013, compensation shall be regarded as “paid” if compensation has been offered to person interested and such compensation has been deposited in Court where reference under Section 18 can be made on happening of any of contingencies contemplated under Section 31(2) of Land Acquisition Act, 1894. Compensation may be said to have been “paid” within meaning of Section 24(2) of Act of 2013, when Collector (or for that matter Land Acquisition Officer) has discharged his obligation and deposited amount of compensation in Court and made that amount available to interested person to be dealt with as provided in Sections 32 and 33. Deposit of compensation amount in government treasury is of no avail and cannot be held to be equivalent to compensation paid to landowners/persons interested. Subject land acquisition proceedings shall be deemed to have lapsed under Section 24(2) of 2013 Act.

In view of judgment of Supreme Court in case of Pune Municipal Corporation and Another v. Harakchand Misirimal Solanki and Others and Section 31(2) of the Land Acquisition Act, 1894 which provides that if amount is not consented to be received, amount of compensation is required to be deposited in Court to which a reference under Section 18 would be submitted, contention of Senior counsel for Corporation that, deposit of compensation amount in Government Revenue Account on refusal of owner to receive the amount would debar Petitioners to get benefit of Section 24(2) of Act of 2013 cannot be accepted. If amount of compensation was offered to land owner and he did not give consent to receive, it was duty of the SLAO to have deposited amount of compensation in Court to which reference under Section 18 would be submitted. SLAO having not done so, Petitioners are entitled to get benefit of Section 24(2) of Act of 2013. High Court allowed Petitions and held that, subject land acquisition proceedings deemed to have lapsed under Section 24(2) of the Act of 2013. Consequently, actual physical possession of subject land is ordered to be restored to Petitioners.

Comments

Popular posts from this blog

MACT - Permanent disability - calculate - compensation - Supreme Court - Part 2

1) C. K. Subramonia Iyer vs. T. Kunhikuttan Nair - AIR 1970 SC 376 2) R. D. Hattangadi vs. Pest Control (India) Ltd. - 1995 (1) SCC 551 3) Baker vs. Willoughby - 1970 AC 467 4) Arvind Kumar Mishra v. New India Assurance Co.Ltd. - 2010(10) SCALE 298 5) Yadava Kumar v. D.M., National Insurance Co. Ltd. - 2010 (8) SCALE 567) 5. The heads under which compensation is awarded in personal injury cases are the following : Pecuniary damages (Special Damages) (i) Expenses relating to treatment, hospitalization, medicines, transportation, nourishing food, and miscellaneous expenditure. (ii) Loss of earnings (and other gains) which the injured would have made had he not been injured, comprising : (a) Loss of earning during the period of treatment; (b) Loss of future earnings on account of permanent disability. (iii) Future medical expenses. Non-pecuniary damages (General Damages) (iv) Damages for pain, suffering and trauma as a consequence of the injuries. (v) Loss of amen

Distinction between “Loss to the Estate” and “Loss of Estate”

A subtle but fundamental distinction between “Loss of Estate” and “Loss to the Estate” was discussed in Omana P.K. and others v. Francis Edwin and others (2011 (4) KLT 952). This Judgment was challenged before the Apex Court, which has now dismissed the Appeal. The question raised in this case, was whether a certain sum which the dependants received as compensation for untimely death of Judgment debtor in a motor accident is attachable in Execution Proceedings. In this case, Justice Thomas P. Joseph speaking for the Kerala High Court had held the following (relying on The Chairman, A.P.S.R.T.C, Hyderabad vs. Smt. Shafiya Khatoon and Others) Capitalized value of the income spent on the dependents, subject to relevant deductions, is the pecuniary loss sustained by the members of his family through his death. The capitalized value of his income, subject to relevant deductions, would be the loss caused to the estate by his death. In other words, what amount the dependents would have got le

Full & Final payment - No dues certificate - end of contract

Whether after the contract comes to an end by completion of the contract work and acceptance of the final bill in full and final satisfaction and after issuance a `No Due Certificate' by the contractor Supreme Court of India Supreme Court of India R.L. Kalathia & Co. vs State Of Gujarat on 14 January, 2011 Author: P Sathasivam Bench: P. Sathasivam, B.S. Chauhan IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 3245 OF 2003 R.L. Kalathia & Co Appellant(s) Versus State of Gujarat .... Respondent(s) JUDGMENT P. Sathasivam, J. 1) This appeal is directed against the judgment and final order dated 07.10.2002 passed by the Division Bench of the High Court of Gujarat whereby the High Court set aside the judgment and decree dated 14.12.1982 passed by the Civil Judge, (S.D.), Jamnagar directing the State Government to pay a sum of Rs.2,27,758/- with costs and interest and dismissed the Civil Suit as well as cross objections filed by the a