Civil Rev. Appln. No. 558 of 1991

31st March, 2000

Petitioner Counsel: Shri. A. B. NAIK
Respondent Counsel: Shri. M. S. INDANI

Cases Cited:
The Municipal Corporation of Brihan Mumbai Vs. Trustees of Parsi Panchayat, 1999(4) ALL MR 674 =1999(4) Bom. C.R. 713 [Para 11]

JUDGMENT

JUDGMENT :- The Petitioner filed Execution Petition No. 15 of 1989 for recovery of the amount of compensation under the Land Acquisition Act, which had become payable on account of award passed in Land Acquisition Reference No. 52 of 1984 by the Civil Judge, Senior Division, Nanded.

2. In the Execution Petition the Petitioner claimed total amount of Rs. 3,42,850.33 Ps. However, the learned Civil Judge held that the Petitioner was entitled to receive the balance of Rs. 1,26,791.84 Ps. as per order dated 20-11-1990.

3. The Petitioner has contended that the calculations made by the learned Civil Judge are not correct and he is entitled to get the amount as claimed in the darkhast.

4. Heard the learned Counsel for the Petitioner; and the learned assistant Government Pleader for the Respondents. Both the parties have filed on record the calculations of the amount payable under the Award.

5. According to the Petitioner, the amount of Rs. 1,27,723 was payable to him on 14-12-1990; and he is also claiming future interest on this amount from 15-12-1990 till the date of realization.

6. As against this, the calculations submitted by the learned Assistant Government Pleader show that, on making the deposit of Rs. 1,29,543 in the Court on 15-12-1990, the State had paid excess amount of Rs. 22,298 and, therefore, nothing is payable to the Petitioner. On the contrary, the excess amount paid is to be recovered from the Petitioner.

7. It clearly appears that the Petitioner, the Lower Court, as well as the Respondents, have committed mistakes while calculating the amount of compensation payable to the Petitioner, the enhanced amount of compensation payable to the Petitioner; and the interest to be paid to the Petitioner on the amount of compensation as well as the enhanced compensation. The Petitioner is calculating compound interest. However, neither the provisions of the Land Acquisition Act, nor, the Award passed by the learned Civil Judge, provide for compound interest. If compound interest is payable then, there must be specific directions to that effect; otherwise, the interest is always simple interest. That means, the interest on the principal amount and not on the principal amount plus amount of interest accrued on the principal amount. The award passed by the learned Civil Judge does not indicate as to whether interest should be compound or simple interest; and, in such circumstances, the interest has to be calculated as simple interest.

8. It also appears that, while calculating the amount, which has remained due after making deposits in the Court, the Petitioner is calculating interest on the balance, right from 31-8-1979, the date on which the Notification under section 4 of the Land Acquisition was published. However, this method of calculation is also wrong, because once the interest is calculated for the amount of compensation payable for that period, again interest cannot be calculated for that period on the amount, which has remained unpaid after making deposits. If this is done, it will mean that, for the same period, twice interest is being calculated and that cannot be allowed.

9. One circumstance has also to be noted that, while passing the Award, the learned Civil Judge has directed the payment of interest at the rate of 9 per cent, per annum for the first year from 1-9-1978 to 30-8-1979; and then at the rate of 15 per cent. per annum from 31-8-1979 till the realisation of the amount. This interest is to be paid as per the provisions of section 28 of the Land Acquisition Act. It appears that the learned Civil Judge has again allowed the enhanced interest at the rate of 9 per cent. per annum from the date of possession, i.e. 31-8-1978 for the first year and then at the rate of 15 per cent. per annum till full realisation. It appears that this is only the repetition of the previous para in the final order of the Award. There appears no intention to award interest twice for the same period on the same amount. The parties also have ignored this last leg of the final order. While making calculations, and rightly so. The enhanced interest, which is mentioned again in the Award, is also without jurisdiction of the learned Civil Judge. While passing the Award under the Land Acquisition Act, the interest is payable in the present matter only as per section 28 of the Land Acquisition Act.

10. Here, the circumstances, which are to be noted, are that the Notification under section 4 of the Land Acquisition Act was published on 6-7-1978; the possession of the land was taken on 31-8-1978; while the Special Land Acquisition Officer passed the Award on 2-3-1981; and thereafter reference came to be filed and the state deposited amount of Rs. 21,127 on 9-3-1981. So, on the basis of these facts, the further calculations are to be made.

11. Thus, the amount payable to the Petitioner in this case will have to be calculated as per the decision given by the Division Bench of this Court in the matter of The Municipal Corporation of Brihan Mumbai Vs. Trustees of Parsi Panchayat & another, reported in 1999(4) Bom. C.R. 713 : (1999(4) ALL MR 674). The calculations, therefore, are as under :

CALCULATIONS Rs. Rs.
(A)	Market Value, as per Section 23 of the Act,	0,76,162.50
(B)	30% Solatium on (A), as per sec. 23(2);	0,22,848.75
(C)	12% Additional Comp- ensation as per sec. 23-1A of the Act; for 57 days from 6.7.1978 to 31-8-1978 on Rs.76,162.50 Ps.	0,01,427.00
(D)	Total of A, B & C	1,00,438.25
(E)	Market Value as per Award of SLAO ; Rs. 19,687.00
(F)	Market Value as per Award of Ref. Court: Rs. 76,162.50
(G)	Additional Market Value Payable (F - E);	0,56,475.50
(H)	Amount deposited in Court on 9-3-1981 ; Rs. 21,127.00
(I)	Interest as per Sec. 28 at 9 p.c.p.a. from 31-8-1978 to 30-8-1979 on Rs. 56,475.50.	0,05,082.75
(J)	Interest as per sec. 28 at 15 p.c.p.a. from 31-8-1979 to 28-7-1989 (date of deposit in (Court) for 3620 days :	0,85,016.00
(K)	Total of G. I and J :	1,46,574.25
(L)	Unpaid interest for the period from 31-8-79 to 9-3-1981 ;	0,04,978.50
(M)	Total Amount Payable on 28-7-1989 (K + L + B&C)	1,74,827.75
(N)	Amount deposited in Court on 28-7-1989;	1,14,106.00
(O)	Balance Payable (M - N) ;	0,60,721.75
(P)	Interest at the rate 15 p.c.p.a. from 28-7-1989 to 14-12-1990 for 5046 days on Rs.56,745.00	0,11,697.00
(Q)	Total of O and P	0,72,418.75
(R)	Amount deposited on 15-12-1990	1,29,543.00
(S)	Excess Amount (R - Q) ;	0,57,124.25

NECESSARY EXPLANATIONS FOR THE ABOVE CALCULATIONS

(1) The Petitioner has claimed interest under section 28 of the Act on Rs. 19,687.00 for the first year at the rate of 9 p.c.p.a., which comes to Rs. 1,771.00; and then, at the rate of 15 p.c.p.a. for the period of one year and seven months, i.e., for the period from 31-8-1979 to 9-3-1981, the date on which the amount is deposited in the Court, which comes to Rs. 4,647.50 Ps. However, as the amount payable under the award of S.L.A.O. was of Rs. 19,687, and the actual amount deposited in the Court is Rs. 21,127, it means that the difference is paid towards the interest payable on the amount of Rs.19,687 and this interest works to Rs. 1,440. As against this, the interest for this period calculated by the petitioner works out to Rs. 6,418.50, which means the interest paid is short by Rs. 4,978.50. So, this much amount of Rs. 4,978.50 Ps. would be payable to the Petitioner as interest; and here, I would like to make it clear that it is not as part and parcel of the principal amount. So, it cannot be calculated in the amount of compensation, payable for the purpose of further calculations of interest.

(2) The petitioner has calculated interest under section 28 of the Act on the total amount of Rs. 80,309, as per his calculation of enhanced compensation. However, the Petitioner is entitled to interest under section 28 of the Act only on the enhanced market value, that is, the market value calculated by the Court less the market value calculated by the S.L.A.O., which comes to Rs. 56,475.50 Ps.

(3) The Petitioner has further calculated interest on the balance of Rs. 93,893, which is the figure, according to him, payable on 20-7-1989, at 9 per cent. per annum from 31-8-1978 to 31-8-1979 and at 15 per cent. per annum from 31-8-1979 to 14-12-1990, the date of next deposit. However, considering the provisions of section 28 of the Act, the Petitioner is entitled to interest only on the enhanced market value as shown above. The calculation of interest made by the Petitioner can't be accepted for two things. Firstly, on the enhanced compensation, already the interest is calculated for the period from 31-8-1978 to 30-8-1979 and from 31-8-1979 to 27-7-1989. So, on the balance amount, interest for that period again cannot be calculated. The second ground is that the interest is payable only as simple interest and not as compound interest. So, always the interest is to be calculated on the principal amount, That means, the market value calculated by the Court less the market value calculated by the S.L.A.O., which has remained unpaid.

(4) It also has to be noted that the calculation of the interest by the Petitioner is not correct, because he is calculating interest on the amount of interest, which never had accrued and became payable during the period from 31-8-1978 to 30-8-1979; and also during the period from 31-8-1979 to 14-12-1990. Even if compound interest has to be calculated, the interest on interest will be payable only when the interest has accrued and not paid. Here, the Petitioner is calculating the interest on interest which had not accrued. Therefore, the further interest is to be calculated only on the amount of enhanced market value which had remained unpaid.

(5) The Petitioner has contended that the amount deposited by the State does not give the specification as to how much was paid towards principal and how much amount was towards the interest accrued; and, in such circumstances, the Petitioner is entitled to appropriate from the amount deposited in the Court first towards interest that has become due and then, if any amount remains, towards the principal. Even accepting this contention of the Petitioner, on appropriating the amount of Rs. 1,14,106, it can be said that respondent State had to pay Rs. 56,745.50 Ps. towards the principal and the balance Rs. 4,247.75 Ps. towards interest. As interest is to be calculated as simple interest and not compound interest, the Petitioner is entitled to get interest on Rs. 56,475.50 Ps. only from 21-7-1989 till the next date of deposit, i.e. from 31-8-1989 till 14-12-1990, which comes to Rs. 11,697. So, the total amount payable on 14-12-1990 comes to Rs.72,418.75 Ps. As against this, the State has deposited Rs. 1,29,543 on 15-12-1990. So, the excess amount deposited by the State was Rs. 57,124.25 Ps.

12. In the result, this Civil Revision Application stands dismissed. Rule discharged. Respondents are entitled to costs. Respondents may also take appropriate steps for recovery of the excess amount paid by it from the Petitioner.

Revision dismissed.