CHANABASAPPA versus KARNATAKA NEERAVARI NIGAM LTD. & ANR.

Citation: [2020] 5 S.C.R. 24 · Decided: 21-01-2020 · Supreme Court of India · Bench: ARUN MISHRA · Disposal: Disposed off

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2020] 5 S.C.R.
CHANABASAPPA
v.
KARNATAKA NEERAVARI NIGAM LTD. & ANR.
(Civil Appeal No. 475 of 2020)
JANUARY 21, 2020
[ARUN MISHRA AND INDIRA BANERJEE, JJ.]
Land Acquisition Act, 1894:
s. 34  – Payment of interest under  – Whether from the date
of award or from the date prior thereto – Construction of dam after
acquisition of land – Submergence of land in question after the
full reservoir level breached in the year 1991 – Acquisition process
of land in question started in the year 2007 – Award of
compensation – High Court enhanced the compensation amount
and directed payment of interest from the date of award i.e.
23.7.2009 – Appeal to Supreme Court seeking interest w.e.f. 1991
– Held: Interest u/s. 34 can start only  from the date the possession
of the acquired land is taken – No interest can be claimed for the
period prior to s. 4 Notification – When possession is taken prior
to issuance of preliminary Notification, land-owner is only entitled
to rent or damage for use and occupation – In the present case
submergence/possession of the land is disputed – Claim of damages
would depend upon the factum whether the land has come under
submergence in the year 1991 – The Collector is directed to
examine whether the land in question came under submergence in
1991 and thereupon determine the quantum of damages to be paid
from 1991 till the date of Notification u/s. 4 – If submergence
proved, the land-owner shall be entitled to interest u/s. 34  also
from the date of s. 4 Notification till the date of award.
Disposing of the appeal, the Court
HELD:  1. Interest under Section 34 or Section 28 of Land
Acquisition Act, 1894 can start only from the date the possession
of the land is taken. Unless there is a case of urgency under
Section 17(1) of the Act where possession has been taken, or
the acquisition process is initiated, in such cases, compensation
would be payable by virtue of provisions of Section 17 of the Act.
[Para 6] [28-E-F]
   [2020] 5 S.C.R. 24
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Lila Ghosh v. State of West Bengal (2004) 9 SCC
337 : [2003] 5  Suppl.  SCR 599 – relied on.
2. In a case where the land-owner is dispossessed prior
to the issuance of preliminary notification under Section 4 of the
Act, it is open to the land-owner to recover the possession of
his land by taking appropriate legal proceedings.  Therefore, he
is only entitled to get rent or damage for use and occupation
for the period the Government retains possession of the
property. When possession is taken prior to issuance of
preliminary notification, the Collector may also determine the
rent or damages. [Para 7] [29-C-E]
R.L. Jain v. DDA & Ors. (2004) 4 SCC 79 : [2004] 2
SCR 1156 – relied on.
3. No interest can be claimed for the period prior to the
Section 4 notification. Where possession has been lost prior to
initiation of the acquisition proceedings, the land-owners can
claim rent or damages before the Collector. [Para 9] [30-D-E]
Special Land Acquisition Officer v. Karigowda & Ors.
(2010) 5 SCC 708 : [2010] 5 SCR 164 – relied on.
4. On considering the provisions of Section 23, while
determining the compensation under Section 23(1) of the Act,
the Court shall take into consideration firstly, the market value
of the land on the date of publication, secondly, the damage
sustained by reason of taking of any standing crops or trees and
other damages at the time of taking possession. Under Section
23(1)(A) of the Act, the additional compensation is awarded at
the rate of twelve percent per annum on the market value from
the date of notification under Section 4. Under Section 23(1A)
of the Act, in addition to the market value, thirty percent
solatium is awarded on such market value. [Para 11] [31-F-H]
Siddhappa Vasappa Kuri & Anr. v. Special Land
Acquisition Officer & Anr. (2002) 1 SCC 142 : [2001]
4 Suppl. SCR 236 – relied on.
5. Under Section 34, nine percent interest is payable for
the first year from the date of taking possession, and in case it
is not paid within one year from the date of possession, the
CHANABASAPPA v. KARNATAKA NEERAVARI
NIGAM LTD. & ANR.
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SUPREME COURT REPORTS
[2020] 5 S.C.R.
interest at the rate of fifteen percent per annum is payable. [Para
13] [32-D]
6. In the instant case, the date of taking of the possession/
submergence is disputed, and there is no categorical finding
recorded that area in question came under submergence with
effect from the year 1991 and was not as a matter of f

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