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K.S. PARIPOORNAN versus STATE OF KERALA AND ORS.

Citation: [1994] SUPP. 4 S.C.R. 697 · Decided: 20-10-1994 · Supreme Court of India · Bench: K. RAMASWAMY, S.P. BHARUCHA, M.K. MUKHERJEE · Disposal: Case Partly allowed

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Judgment (excerpt)

A 
B 
K.S. PARIPOORNAN 
v 
STATE OF KERALA AND ORS. 
OCTOBER 20, 1994 
[K, RAMASWAMY, S.P. BHARUCHA AND 
M.K. MUKHERJEE, JJ.] 
Land Acquisition (Amendment) Act, 68 of 1984-Sections 28 and 23( J-
C A)-Enhanced interest u/s 28-Claim of-Award of Collector-Civil Court 
enhancing compensation-Whether claimants entitled to the enhanced interest 
u/s 28 as amen/Jed u/s 18 of Amendment AcHfeld, yes-Award of enhanced 
interest @9% from the date of taking possession for one year and thereafter 
@15% till date of deposit made by Collector-Held: Claimant not entitled to 
additional compensation u/s 23 (1-A) as Collector made award prior to the 
D date of Amendment Act came into force. 
Notification u/s 3(1) of the Kerala Land Acquisition Act, 1961 was 
published on March 21, 1979. The Collector u/s 11 thereof, passed his 
award on December 30, 1980. Thereafter, possession of some land was 
taken on January 15, 1991 and the balance land on March 13, 1981. The 
E compensation was deposited on Angust 10, 1981. On a reference u/s 18 the 
Civil Court enhanced the compensation at Rs. 5,000 per cent in its award 
and decree djited February 28, 1985. The enhanced compensation was 
deposited on October 20, 1986 and December 3, 1986 respectively. The High 
Court on appeal, while confirming the enhanced compensation granted by 
F 
the Civil Co11rt disallowed interest u/ss 28 and 23(1-A) of the Land 
Acqnisltion (Amendment) 68 of 1984. The Amendment Act which came into 
force on September 24, repealed the Kerala Act and Central Act 1 of 1984 
became applicable as amended by the Amendment Act. The High Court, 
relying upon sub-section (2) of Section 30 of the transitory provision of the 
G Amendment Act held that since the award was made prior to the Amend-
ment Act had, come into force, the appellant was entitled to the interest u/s 
30 of the Kerala Act @ 4%. These appeals were filed against the jndgment 
of the High Court. 
Opposing the claim, the State relied on Union of India v. Raghubir 
H Singh, (1989) 2 SCC 754, and claimed that if the award had beeu made 
696 
K.S. PARIPOORNANv. STATE 
697 
between April 30, 1982 and September 24, 1984, the claimant would be A 
entitled to the benefit of tht enhanced solatium uuder Section 23 (2) of the 
Principal Aci. It was alleged that on the parity of the ratio therein by 
operation of sub-section (2) of the Section 30 of the Transitory provision 
of the Amendment Act which included Section 28 also, the appellant was 
not entitled to the enhanced interest under the amended Section 28 of the B 
Principal Act. 
Partly allowing the appeals, this Court 
HELD : 1.1. The award of the Collector or the Court !Jlade between 
April 30, 1982 and September 24, 1984 would alone get attracted to Section C 
30(2) of the transitory provision of Land Acquisition (Amendment) Act, 
68 of 1984. The restricted interpretation would not be understood to mean 
that section 23(2) of the Principal Act would not apply to the awarded 
decree of the Civil Conrt pending at the time when the Act came into force 
or thereafter. In this case, admittedly the award of the Civil Court was D 
after the Act has come into force, namely Feb. 28, 1985. [700-C, E] 
1.2. Therefore, if the sum which, in the opinion of Court, the Collec-
tor ought to have awarded as compensation is in e~cess of the sum which 
the Collector did award as compensation, the Court shall direct to pay 
interest on such excess @ 9% per annum from the date on which the E 
Collector took possession of the land to the date of payment of such excess 
into the Court. By operation of the proviso if such excess or any part 
thereof is paid into the Court after the date of expiry of a period of one 
year from the date on which compensation is taken, interest @ 15% per 
annum shall be payable from the date of expiry of the said period of one F 
year on the amount of such excess or part thereof which has not been paid 
into the Court before the date of such expiry. Accordingly, the appellant 
is entitled to the enhanced interest @ 9% from the date of taking posses-
sion, namely January 15, 1981 and March 11, 1981 respectively, for one 
year @ 9% and thereafter @ 15% till the date of the deposit made by the 
Collector. Admittedly, the deposit of the enhanced compensation was made G 
on October 20, 1986 and December 3, 1986. Therefore, the interest shall be 
calculated at the .enhanced rate for the aforesaid record. [700-F-H, 701-A] 
Union of India and another v. Raghubir (d

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