D.D.A. Appellant Versus Mahender Singh and Another[ALL SC 2009 MARCH]

KEYWORDS:- COMMON LAWCommon law The legal system that originated in England and is now in use in the United States. It is based on court decisions rather than statutes passed by the legislature. PRINCIPLES- INTEREST

DATE:-20-03-2009-

“As the Act is a self-contained Code, common law principles of justice, equity and good conscience cannot be extended in awarding interest, contrary to or beyond provisions of the statute”.

AIR 2009 SC 3270 : (2009) 4 SCR 788 : (2009) 5 SCC 339 : JT 2009 (4) SC 208 : (2009) 4 SCALE 363

(SUPREME COURT OF INDIAIndia Bharat Varsha (Jambu Dvipa) is the name of this land mass. The people of this land are Sanatan Dharmin and they always defeated invaders. Indra (10000 yrs) was the oldest deified King of this land. Manu's jurisprudence enlitened this land. Vedas have been the civilizational literature of this land. Guiding principles of this land are : सत्यं वद । धर्मं चर । स्वाध्यायान्मा प्रमदः । Read more)

(Before : Arijit Pasayat And Asok Kumar Ganguly, JJ.)

Civil Appeal Nos. 1751 to 1753 of 2009 (arising out of SLP (C) Nos. 2113, 7484 and 7485 of 2007), Decided on : 20-03-2009.

Land Acquisition Act, 1894—Sections 28 and 34—Acquisition of land—Payment of statutory interest—Act is a complete Code and lays down detailed procedure for acquisition of land, payment of compensation including solatium and additional market value—Apart from Sections 28 and 34 which deal with payment of interest to persons entitled to receive compensation, there is no other provision envisaging payment of interest—Collector, Land Acquisition is liable to pay interest on statutory rates to such persons only when possession has been taken over before payment of entire compensation to them under Section 34—Liability to pay interest to claimant arise only in accordance with Section 34—As Act is a self-contained Code, common law principles of justice, equity and good conscience cannot be extended in awarding interest, contrary to or beyond provisions of statute—While exercising jurisdictionJurisdiction Authority by which courts receive and decide cases. Limited Jurisdiction: the authority over only particular types of cases, or cases under a prescribed amount in controversy, or seeking only certain types of relief, the District Court is a court of limited jurisdiction. Original Jurisdiction: Jurisdiction of the first court to hear a case. under Article 226 of Constitution there is no scope for direction to pay interest in a manner not contemplated by either Section 28 or 34—Impugned judgments of High Court set aside.

Counsel for the Parties:

A. Sharma, ASG, Vishnu B. Saharaya (for M/s. Saharya and Co.), for Appellants

Satpal Singh, N. S. Vashisht, Vishal, Mrs. Kanchan Kaur Dhodi, for Respondents.

JudgmentJudgment The statement given by the Judge on the grounds of a decree or order - CPC 2(9). It contains a concise statement of the case, points for determination, the decision thereon, and the reasons for such decision - Order 20 Rule 4(2).  Section 354 of CrPC requires that every judgment shall contain points for determination, the decision thereon and the reasons for the decision. Indian Supreme Court Decisions > Law declared by Supreme Court to be binding on all courts (Art 141 Indian Constitution) Civil and judicial authorities to act in aid of the Supreme Court (Art 144) Supreme Court Network On Judiciary – Portal > Denning: “Judges do not speak, as do actors, to please. They do not speak, as do advocates, to persuade. They do not speak, as do historians, to recount the past. They speak to give Judgment. And in their judgments, you will find passages, which are worthy to rank with the greatest literature….” Law Points on Judgment Writing > The judge must write to provide an easy-to-understand analysis of the issues of law and fact which arise for decision. Judgments are primarily meant for those whose cases are decided by judges (State Bank of India and Another Vs Ajay Kumar Sood SC 2022)

Arijit Pasayat, J—Leave granted.

2. Challenge in these appeals is to the judgment of a Division Bench of the Delhi High Court allowing the Writ Petitions filed by respondents under Article 226 of the Constitution of India, 1950 (in short the ‘Constitution’). Prayer in the writ petitions was to direct the present appellant to make payment of statutory interest under Section 34 of the Land Acquisition Act, 1894 (in short the ‘Act’) for the acquisition of the land in terms of the award No.3/1997-98, dated 10.12.1997. The appellant resisted the claimA Claim A claim is “factually unsustainable” where it could be said with confidence before trial that the factual basis for the claim is entirely without substance, which can be the case if it were clear beyond question that the facts pleaded are contradicted by all the documents or other material on which it is based. on the ground that such a prayer cannot be accepted in the writ petitions. The High Court, however, held that the writ applications were to be allowed. Accordingly, it directed the respondents in the writ petitions including the present appellant to pay the interest payable to the claimants in terms of Section 34 of the Act and pay costsCosts Subject to any written law, costs are at the discretion of the Court, and the Court has the power to determine all issues relating to the costs of or incidental to all proceedings, including by whom and to what extent the costs are to be paid, at any stage of the proceedings or after the conclusion of the proceedings. Generally “Costs” includes charges, disbursements, expenses, fees, and remuneration. Costs in any matter are payable from the date of the order of the Court unless the parties otherwise agree. The costs of a third-party funding contract are not recoverable as part of the costs of, or costs. of Rs.10,000/-.

3. In support of the appeals, learned counsel for the appellant submitted that the direction given by the High Court is clearly contrary to a Full Bench judgment of the Delhi High Court in Net Ram and Another v. Union of India and others (86 (2000) DLT 606).

4. Learned counsel for the respondents on the other hand supported the judgment and submitted that in the background of public accountability which has been highlighted by the High Court, the relief has been rightly granted.

5. The Act is a complete Code and lays down detailed procedure for acquisition of land, payment of compensation including solatium and additional market value. It is to be noted that under Section 34 interest @9% from the date of taking over the possession till payment for the first year @ 15% for subsequent years is payable. Section 28 is the only other provision which deals with the award of interest. The said provision empowers the Court to award interest on the excess amount awarded over and above the amount awarded by the Collector.

6. Sections 28 and 34 read as follows : “28. Collector may be directed to pay interest on excess compensation – If the sum which in the opinionOpinion A judge's written explanation of a decision of the court. In an appeal, multiple opinions may be written. The court’s ruling comes from a majority of judges and forms the majority opinion. A dissenting opinion disagrees with the majority because of the reasoning and/or the principles of law on which the decision is based. A concurring opinion agrees with the end result of the court but offers further comment possibly because they disagree with how the court reached its conclusion. of the court, the Collector ought to have awarded as compensation is in excess of the sum which the Collector did award as compensation, the award of the Court may direct that the Collector shall pay interest on such excess at the rate of (nine percentum) per annum from the date on which he took possession of the land to the date of payment of such excess into Court.

34. Payment of interest- When the amount of such compensation 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 nine per centum per annum from the timeTime Where any expression of it occurs in any Rules, or any judgment, order or direction, and whenever the doing or not doing of anything at a certain time of the day or night or during a certain part of the day or night has an effect in law, that time is, unless it is otherwise specifically stated, held to be standard time as used in a particular country or state. (In Physics, time and Space never exist actually-“quantum entanglement”) 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 that 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.”

7. There is no dispute that apart from Sections 28 and 34 which deal with payment of interest to persons entitled to receive compensation, there is no other provision envisaging payment of interest. Collector, Land Acquisition is liable to pay interest on statutory rates to such persons only when possession has been taken over before the payment of the entire compensation to them under Section 34. In Union of India v. Budh Singh (1995) 6 SCC 233) this Court had the occasion to deal with Sections 28 and 34 and it was observed that these were the only provisions which deal with the payment of interest to land owners. While considering the scope and ambit of the Sections, this Court observed :

“Thus, it could be seen that the statute covers the entire field of operation of the liability of the State to make payment of interest and entitlement thereof by the owner when land has been taken over and possession in consequence thereof, the land owner was deprived of the enjoyment thereof. Thus, it could be seen that the Court has no power to impose any condition to pay interest in excess of the rate and manner prescribed by the statute as well as for a period anterior to the publication of Section 4(1) notification under this Act.”

8. Similar view was expressed in State of Himachal Pradesh v. Dharam Das (1995) 5 SCC 683). It was held that when the statute provides for payment of interest to the land owners, a Court has no power to award interest in a manner other than the one prescribed by the statute. It was specifically observed that there is no other provision empowering the Court to award interest on equitable ground as equitable consideration has no role to play in determination of the compensation and the manner of awarding interest as enjoined under the Act. The same has to be administered in the manner laid in the Act and in no other way. As a concomitance, the equity jurisdiction of the court is taken out and the Act enjoins the Court to grant interest as per the statutory rates specified in the Act. A plea was taken in a case before this Court in a matter relating to Jammu and Kashmir Requisitioning and Acquisition of Immovable Property Act, 1968 which omitted provision for payment of solatium and interest, that in spite of the absence of the provision for solatium and interest in the said Act, the State was bound to pay solatium and interest to the land owners on equitable grounds. This Court negatived the contention. It was observed that there was no substance in the plea that by legislative omission to pay solatium the State enriches itself unjustly at the expense of the private party. (See Union of India v. Dhanwanti Devi and others (1996) 5 SCC 44). In Ashok Nagar Plot Holders Association v. State of U.P. (1997) 10 SCC 77) this Court again observed that liability to pay interest to the claimant arises only in accordance with Section 34 of the Act. As the Act is a self-contained Code, common law principles of justice, equity and good conscience cannot be extended in awarding interest, contrary to or beyond provisions of the statute.

9. In view of what has been indicated above, the conclusion is irresistible that while exercising jurisdiction under Article 226 of the Constitution there is no scope for direction to pay interest in a manner not contemplated by either Section 28 or 34.

10. In view of the above the appeals deserve to be allowed which we direct. The impugned judgments of the High Court are set aside.