Interest for delay in actual payment of compensation for land acquired under National Highways Act 1956
Award for land / buildings acquired under Section 3(G) of the National Highways Act, 1966 – Writ Petition for equitable or statutory interest for delay in actual payment of compensation – Directions to pay interest 9% per annum from the date of award till actual payment.
On 21.5.2015, award / order for compensation of Rs.1,01,88,000/- for acquired land of the petitioner (W.P.No.1911 of 2022).
On 15.7.2017, supplementary award / order was passed for compensation of Rs.1,08,92,995/- for building / structures of the petitioners (W.P.No.1910 of 2022) on the acquired land.
However, in both the cases, interest on the compensation amount was not paid to the petitioners.
In the writ petitions filed earlier and disposed of on 14.1.2019, the petitioners were given liberty to make application for interest.
By the order dated 20.1.2020, the Competent Authority had rejected the claim for interest.
On consideration of the facts, it was found that there was gap of more than seven months in W.P.No.1910 of 2022 and around three years in W.P.No.1911 of 2022 in actual payment of compensation.
HELD – In para 16, it was observed that the provisions of sections 37, 72 and 80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, relating to interest are not made applicable to the NH Act, 1956.
i. NHA of 1956 does not lay down statutory out limit for deposit of compensation amount
ii. The National Highways (Manner of Depositing the amount by the Central Government with the Competent Authority for Acquisition of Land) Rules, 1998, require the competent authority to deposit compensation in a separate public deposit account. New Rules of 2019 also require such a deposit of compensation.
iii. The compensation in case of WP No.1910 of 2022 was deposited in the ledger account on 27.9.2017 and it was deposited on 21.4.2015 in W.P.No.1911/2022.
iv. There is no material on record to show that the petitioners were called upon to receive the compensation by serving notice within a reasonable time.
v. Since there is delay in actual payment of compensation and the petitioners were not paid interest, they are entitled to interest at 9% p.a. from the date of award till actual payment.
Roshanbi Aziz Motiwala and others Vs. The Competent Authority and the Deputy Collector and others – Writ Petition Nos.1910 and 1911 of 2022
