Judgment:
C.L. Pangarkar, J.
1. All these appeals can be disposed of by a common judgment since the question involved in these appeals is identical.
2. The owners, whose land has been acquired under Coal Bearing Areas (Acquisition and Development Act), 1957, have come up in appeal.
3. The facts are as follows:
The land of all the appellants has been acquired under the Coal Bearing Areas Act. Notification under Section 4 of the Act for the acquisition was issued in 1990 and Notification under Section 9 was issued in the year 1995. The Land Acquisition Officer under the Act determined the compensation. Since the compensation awarded was found to be inadequate, a reference was sought to the Tribunal constituted under the Coal Bearing Areas Act. The Tribunal enhanced the compensation. Different amount of compensation was determined in respect of each claimant. The claimants, however, feel aggrieved by the fact that the Tribunal had awarded inadequate compensation and had not awarded interest under Section 17(3) of the Act.
4. I have heard the learned Counsel for the appellants as well as the respondent.
5. Learned Counsel for the appellant, however, restricted his submission with regard to the interest payable under Section 17(3) of the Act and the date from which it is payable. As far as quantum of compensation is concerned, that is not challenged.
6. Shri Charde, learned Counsel for the appellants submits that each of the claimants was entitled to interest on the amount of compensation from the date of Notification under Section 9 of the Act till the date of actual payment of the compensation or deposit of the same. Shri Mehadia, learned Counsel for the respondent submits that the respondent is not bound to pay any interest since the possession is not delivered to the respondent. He submits that interest can be awarded only when respondent takes possession and does not pay the compensation.
7. In the context, Sections 9 and 10 of the Coal Bearing Areas Act will have to be looked into. Section 9 and 10 reads as follows:
9. (1) When the Central Government is satisfied, after considering the report, if any, made under Section 8 that any land or any rights in or over such land should be acquired, a declaration shall be made by it to that effect [ and different declarations may be made from time to time in respect of different parcels of any land, or of rights in or over such land, covered by the same notification under Sub-section (1) of Section 7, irrespective of whether one report or different reports has or have been made (wherever required) under Sub-section (2) of Section 8]:
[Provided that no declaration in respect of any particulars land, or rights in or over such land, covered by a notification under Sub-section (1) of Section 7, issued after the commencement of the Coal Bearing Area (Acquisition and Development) Amendment and Validation Act, 1971, shall be made after the expiry of three years from the date of the said notification:
[Provided further that, where a declaration] relates to any land or to any rights in or over land belonging to a State Government which has or have not been leased out, no such declaration shall be made except after previous consultation with the State Government.
(2) [Every declaration] shall be published jin the Official Gazette, and
(a) in any case where land is to be acquired, shall state the district or other territorial division in which the land is situate and its approximate area; and, where a plan shall have been made of the land, the place where such plan may be inspected;
(b) in any case where rights in or over such land are to be acquired, shall state the nature and extent of the rights in addition to the matters relating to the land specified in Clause (a); and a copy of every such declaration shall be sent to the State Government concerned.
10. (1) On the publication in the official Gazette of the declaration under Section 9, the land or the rights in or over the land, as the case may be, shall vest absolutely in the Central Government [ free from all encumbrances].
Thus, it is clear that as soon as notification under Section 9 of the Act is published, the land is deemed to have vested in the Government under Section 10 of the said Act. Under the Land Acquisition Act, 1894, the land vests under Section 16 only after possession is taken. In the circumstances, the delivery of possession is irrelevant in cases under the Coal Bearing Areas Act. The land instantly vests in the Government on publication of the Notification under Section 9 of the Act. The moment it vests in Government, the owner thereof is divested of the title. Even otherwise, I would say that the claimants would certainly be entitled to claim interest, from the date of notification. I proceed to give reasons as to why the respondent would be liable to pay interest on delayed payment. The compensation becomes payable the moment the owner is divested of title that is the date of notification. Once a notification is issued, the claimant ceases to have any interest in the property, the respondent may or may not take possession. Even though the respondent may not take possession, the claimant can neither cultivate the land nor sale it. An occasion may arise for claimant to incur expenditure to meet the expenses for marriage or some medical treatment. He may not be able to raise money for such marriage or medical treatment without selling the land. Once notification of acquisition is issued, he is prohibited from selling the land. The Government may defer taking possession for a long time. The question would be what should the claimant do from the date of notification till possession is taken. He cannot raise money by sale nor the acquiring body pays him the money. In such cases, he may be required to obtain loan and pay interest to the creditor. It is for this reason that even if acquiring body may not take possession, it would still be bound to pay interest on delayed payment. The claimant cannot even cultivate the land because that would be too risky a proposition. He may sow a crop in the land and midway the acquiring body may take possession. That would cause huge loss to the owner/claimant. For these reasons, the acquiring body cannot deprive the claimant of interest. It must, therefore, pay interest under Section 17(3) of the Coal Bearing Areas Act from the date of notification under Section 9 at 5% till the amount is actually deposited.
8. The appeals are, therefore allowed partly.
The respondent shall, therefore, calculate the interest at five per cent on the amount of compensation determined initially, from date of notification till date of actual payment or deposit. The said difference be paid to claimants within three months. If the amount of difference is not paid within the time stipulated, the respondent would be liable to pay interest at six per cent instead of five per cent.
No order as to costs.