Gujarat High Court
Mahadevbhai Bababhai Patel vs Special Land Acquisition Officer And ... on 13 October, 2025
Author: Sunita Agarwal
Bench: Sunita Agarwal
NEUTRAL CITATION
C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025
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Reserved On : 25/09/2025
Pronounced On : 13/10/2025
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 4103 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 4406 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 4571 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 4583 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 4593 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 10955 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 7070 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 7856 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 8234 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 8643 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 10595 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 11423 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 11502 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 11645 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA
AGARWAL
and
HONOURABLE MR.JUSTICE D.N.RAY
=============================================
Approved for Reporting Yes No
✔
=============================================
MAHADEVBHAI BABABHAI PATEL
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NEUTRAL CITATION
C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025
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Versus
SPECIAL LAND ACQUISITION OFFICER AND DEPUTY
COLLECTOR & ORS.
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Appearance :-
MR.DIPAK B PATEL(3744) for the Petitioner(s) in SCA Nos.
4103/2025,4406/2025, 4571/2025, 4583/2025, 4593/2025,
10955/2025, 11423/2025, 11502/2025 and 11645/2025
MS.HETAL PATEL, AGP FOR RESP. STATE IN SCA NoS.
8234/2025, 10595/2025,10955/2025, 11423/2025, 11502/2025.
MR. KRUSHNAKANT D. PATEL for the Petitioner/s in SCA Nos.
4103/2025,4406/2025, 4571/2025, 4583/2025, 4593/2025
MR.SANJAY UDHWANI, AGP FOR RESP. STATE IN SCA
11645/2025
MR Y.J. PATEL for the Petitioner in SCA Nos. 7070/2025 and
7856/2025
MR RAKESH PATEL for the Petitioner/s in SCA Nos.8234/2025,
8643/2025,10595/2025
MS MANISHA L. SHAH, ADDITIONAL ADVOCATE GENERAL
assisted by MR JAY TRIVEDI, AGP and MR. KRUTIK PARIKH, AGP
for the State Respondent
MR PARV S GUPTA(11850) for the Respondent(s) No. 1 to 4 in SCA
Nos. 4103/2025,4406/2025, 4571/2025, 4583/2025, 4593/2025
MR ALKESH N SHAH for the Respondents No.2 and 3 in SCA Nos.
10955/2025, 11502/2025 and 11645/2025 and for Respondents
No.3 & 4 in SCA Nos.8234/2025, 8643/2025,10595/2025
MR KM ANTANI for the Respondents No. 2 and 4 in SCA Nos.
7070/2025 and 7856/2025
MS AISHVARYA for the Respondents No. 2 and 3 in SCA No.
11423/2025
=============================================
CORAM:HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE
SUNITA AGARWAL
and
HONOURABLE MR.JUSTICE D.N.RAY
CAV JUDGMENT
(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL) Page 2 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined
1. In this set of writ petitions, the petitioners are claiming for modification of the original award passed under Section 23 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short, "the Act' 2013") on the ground that the statutory interest under Section 80 of the Act' 2013 had not been included in the said award and the petitioners have been deprived of the same, effective from the date of taking possession of the acquired land till the date of its realization.
2. The facts relevant to be noted in this set of writ petitions to address the controversy on hands are, that the possession of the lands in question of the petitioners had been taken for the purpose of construction of a canal of Narmada Project, without conducting any acquisition proceedings. The canal was constructed without making any award or payment of compensation to the land losers.
3. The possession of the lands in question had been taken some time in the year 2009 / 2010 / 2011. Inspite of taking of possession long back, the respondent authorities did not pass any award by conducting the acquisition proceedings and the petitioners were constrained to approach this Court seeking directions to the State respondents to conduct the proceedings of acquisition and pay compensation.
4. For instance, we may take note of the facts stated in one of the writ petitions namely, the Special Civil Application No.4583 of 2025. The petitioners therein had approached this Court by filing Special Civil Application No.9987 of 2019 for Page 3 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined issuance of a writ of mandamus commanding the respondents to declare the award in respect of acquisition of the lands belonging to the petitioners. A perusal of the judgment and order dated 13.03.2023 of disposal of the said writ petition indicates that during the pendency of the said writ petition, an award came to be passed on 17.02.2023. The writ petition was, thus, disposed of with the observation that nothing survives therein.
5. It is pertinent to note that though the landowners / petitioners therein had been dispossessed in the year 2011 for construction of canal, but acquisition proceedings had been initiated with the notification under Section 10(A) of the Act' 2013 only on 02.11.2021. The notifications under Sections 11(1) and 19(1) for acquisition were published on 01.12.2021 and 06.04.2022; respectively. After hearing the landowners, award was passed on 26.04.2023, but the interest under Section 80 of the Act' 2013 was not included therein.
6. There is no dispute about the aforesaid facts stated in the said writ petition. The factual story about the dispossession of the landholders and initiation of the acquisition proceedings for making of the award is same in all the cases in this bunch. Meaning thereby, the petitioners / landholders have been deprived of their lands without any due process of law and only after intervention of this Court, acquisition proceedings were initiated with the making of the award under the provisions of the Act' 2013.
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7. In one of such matters, in a bunch of writ petitions with the leading petition being Special Civil Application No.16200 of 2024, the question arose before this Court with regard to the denial of statutory interest under Section 80 of the Act' 2013. While framing the question with regard to the denial of statutory interest under Section 80 of the Act' 2013, it was noted by this Court in the judgment and order dated 03.01.2025 as under:-
"3. The common issues raised in this set of writ petitions are that the landholders / petitioners have been deprived of their agricultural lands without adopting due process of law. The possession of the lands in question had been taken much prior to the enforcement of the Act' 2013 with effect from 01.01.2014 without undertaking the due process of acquisition. After resistance of the petitioners, the acquisition proceedings were undertaken and the award was declared by application of the provisions of the Act' 2013. All other elements of compensation though have been computed, as per own case of the petitioners in accordance with the provisions of the Act' 2013, but statutory interest under Section 80 of the Act' 2013 has been denied. And in place of statutory interest of 09% and 15% under Section 80 of the Act' 2013, by applying a Government Resolution No. LAQ / 1084 / PRP / GH dated 18.06.1986, only 09% interest for delayed payment of compensation has been determined in the form of rental value of the lands in question. In some of the matters, even 09% interest on the compensation amount has been denied.
4. Be that as it may, in many of the matters earlier, we have passed a positive order directing the competent authority to recompute compensation by providing benefit of Section 80 of the Act' 2013 and after recomputation, the 09% interest as rent, if paid, was directed to be adjusted. One of such orders dated
04.09.2024 passed in Special Civil Application No.12542 of 2024 has been placed before us by the learned Assistant Government Pleader as a reminder."
8. This Court has noted therein that in place of awarding statutory interest of 9% and 15% under Section 80 of the Act' 2013, only 9% interest for delayed payment of compensation Page 5 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined had been determined in the form of rental value of the lands in question. However, in some of the matters, even 9% interest on the compensation amount had not been included.
9. Further, this Court having faced with the repeated writ petitions being filed in the Court raising identical issues of denial of statutory interest under Section 80 of the Act' 2013, passed an order dated 02.12.2024 requiring the Principal Secretary, Revenue Department, Government of Gujarat to look into the issue and take a call after going through the provisions of the Act' 2013 to decide as to whether non- inclusion of Section 80 interest at the time of making award under the Act' 2013 would result in denial of statutory interest to the landholders. It was noted in the order dated 03.01.2025 that inspite of the order passed by this Court dated 04.09.2024 in Special Civil Application No.12542 of 2024, wherein direction had been given to the competent authority to re-compute the compensation by providing benefit of Section 80 interest, subsequent awards were being passed denying such benefits.
10. Further, upon intervention of the Court, the Government Resolution dated 02.01.2025 has been passed issuing directions to pay interest as per provisions of Section 80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, which is in force with effect from 01.01.2014. Relevant paragraph No. '6' of the judgment and order dated 03.01.2025, as aforesaid, is extracted hereinunder:-
Page 6 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined "6. On these directions, we have received the copy of the Government Resolution No. RD / LAQ / e-file / 15 / 2024 / 5286 / GH dated 02.01.2025, which reads as under:-
"
To pay interest as per provisions of Section-80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Government of Gujarat Revenue Department Circular No. RD/LAQ/e-file/15/2024/5286/GH Sachivalay, Gandhinagar Date: 02/01/2025 Preamble:-
As the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 is in force at present w.e.f. 01/01/2014, land acquisition is carried out under the said Act. Provision is made in Section-80 of this Act that from the date of possession till non-payment of compensation, interest at the rate of nine per cent shall be payable for the first year and thereafter, interest at the rate of fifteen per cent per annum shall be paid per year until the payment of compensation. Considering the fact that provision is made in the said act regarding not taking advance possession, the following instructions are circulated.
Circular:-
1. Considering the provision of Section-38 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, the Collector/ Land Acquisition Officer shall make sure that the possession of land under acquisition shall be taken only after the procedure of land acquisition is over and only after the entire amount of compensation is paid to the tenure holder.
2. Before undertaking acquisition procedure under the said Act
- 2013, the Acquiring Institute shall not take possession of the land under acquisition from the tenure holder.Page 7 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025
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3. If the possession of the land under acquisition has been taken before 01/01/2014 before the said Act - 2013 came into force and if land acquisition procedure has been carried out under the said Act - 2013, then provision of Section-80 shall be applicable in such cases.
4. In cases wherein land acquisition procedure has been carried out after taking advance possession of the land after the said Act - 2013 came into force, then also the provision of Section- 80 shall be applicable.
5. As per provision of Section - 80 of the said Act - 2013, from the date of possession till non-payment of compensation, interest at the rate of nine per cent shall be payable for the first year and thereafter, simple interest at the rate of fifteen per cent per annum shall be paid until the payment of compensation.
6. In the cases wherein land acquisition procedure has been carried out as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, the provisions of Resolution No. LAQ/1084/525/Gh, dated 18/06/1986 of the Revenue Department, shall not be applicable.
By order and in the name of the Governor of Gujarat.
Sd/-
(Prerak Patel) Deputy Secretary Revenue Department, Government of Gujarat.
"
11. A reading of the Government resolution dated 02.01.2025 indicates that categorical directions have been issued therein in the cases wherein, the land acquisition procedure has been carried out as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 the provisions of the Government resolution No.LAQ / 1084 / PRP / GH dated 18.06.1986 of the Revenue Department shall not be Page 8 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined applicable. Pertinent is to note that 9% interest for delayed payment of compensation in the form of rental value of the lands in question was being determined by the Special Land Acquisition Officer in the awards passed under the Act' 2013, on the basis of the aforesaid Government resolution dated 18.06.1986, on the premise that the landholder would be entitled to 9% interest on the compensation amount for delayed payment of compensation.
12. It is evident that the Government resolution dated 18.06.1986, which was made basis for payment of only 9% interest as rental value of the lands in question had no statutory backing and was misapplied by the Special Land Acquisition Officer across the State universally, to deny statutory interest under Section 80 of the Act' 2013, in cases where possession of private lands had been taken without adopting due process of law prior to the enforcement of the Right to Fair Compensation Act, 2013.
13. It is also pertinent to note, at this juncture, that since corrective measures have been taken at the ends of the Revenue Department of the State by issuance of the Government resolution dated 02.01.2025 clarifying that statutory interest under Section 80 of the Act' 2013 was payable and the Government resolution dated 18.06.1986 will not be applicable in cases of awards made under the Act' 2013, this Court had disposed of the bunch of writ petitions leading being Special Civil Application No.16200 of 2024 in the following manner:-
Page 9 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined "8. Taking note of the above, we dispose of the present batch of writ petitions with the directions that the competent Land Acquisition Officers shall make recomputation by applying the benefit of statutory interest of 09% and 15% prescribed under Section 80 of the Act' 2013, in each individual cases of the writ petitioners herein by passing separate orders. The statutory interest under Section 80 of the Act' 2013 is to be recomputed on the total amount of compensation, which includes the market value, solatium as well as additional interest and all other elements of compensation as provided under the Act' 2013. The recomputation of benefits as per the directions given above shall be made by the concerned authority within a period of two months from today.
9. In cases where rent at the rate of 09% per annum has been awarded as interest over the compensation amount, the said amount shall be adjusted towards the fresh computation to be made under the above directions. The interest / balance amount shall be paid to the petitioners / landholders within a period of ten weeks from the date of the decision for recomputation by the competent authorities, after due verification of the entitlement of each of the landholders / applicant before them.
10. Before parting with this order, we may also record that with the issuance of the Government Resolution dated 02.01.2025, the cloud in the matter of due computation of the compensation under the Act' 2013 by application of the statutory interest under Section 80 of the said Act' 2013 has been cleared with the clarification that the Government Resolution No. LAQ / 1084 / PRP / GH dated 18.06.1986 will not be applicable in all those cases where awards have been made under the Act' 2013. We, therefore, provide that in those similar cases, where the competent authority / Collector receives application for recomputation or revision of the award by providing benefit of Section 80 of the Act' 2013, all such applications shall be dealt by applying the Government Resolution No. RD / LAQ / e-file / 15 / 2024 / 5286 / GH dated 02.01.2025 and the directions issued by us in the order dated 04.09.2024 in Special Civil Application No.12542 of 2024, where we have opined that the statutory interest under Section 80 is applicable to all such cases where awards are made under the Act' 2013. In all such cases, we hope and trust that the competent authorities will deal with the matters at their ends expeditiously and would not force the applicants to approach this Court, by sitting tight over the matter thereby causing unnecessary burden of litigation to this Court.Page 10 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025
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11. The competent authority shall also keep in mind that the recomputation by application of Section 80 interest and the disbursement of the revised amount is to be made to the landholders including the petitioners herein at the earliest, or else, any delays would entail financial burden upon the acquiring body, inasmuch as, interest of 15% would continue to accrue till the date of payment."
14. Coming to the facts of the present case, the petitioners herein are relying upon the directions contained in the judgment and order dated 04.09.2024 passed by this Court in Special Civil Application No.12542 of 2024, wherein it was held that the petitioners having been deprived of their landed property, their right to enjoy the lands and the determination of compensation had been made by making awards under the Act' 2013 with inordinate delay, the State cannot get away by saying that they would pay 9% of the current market value as the rent, as applicable for those cases, where the tenure holders parted away their lands under agreement. It was held by this Court therein that:-
"8. For the forcible dispossession of the petitioners and dereliction on the part of the State respondents in payment of compensation, they are liable to pay statutory interest as payable under Section 80 of the Act of 2013, i.e. at the rate of 9% for the period of 1 year from the date of taking possession and at the rate of 15% after a period of 1 year from the date of taking possession till the date of payment or deposit of compensation."
15. Further, directions have been issued in paragraph Nos. '10' and '11' as under :-
"10. We find substance in the further submission of the learned counsel for the petitioners that 9% and 15% statutory interest provided under Section 80 of the Act of 2013, is to be computed on the total amount of compensation which includes the market value, solatium as well as additional interest, all elements of Page 11 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined compensation as per the decision of the Apex Court in case of Sunder V. Union of India reported in 2001 (7) SCC 211.
11. The re-computation of the benefits as per the direction given above shall be made by the concerned respondent authorities within a period of one (1) month accordingly, and payment be made to the petitioners within a period of six (6) weeks from the date of submission of the copy of this order before the concerned respondent authorities."
16. It is the stand of the petitioners herein that they are entitled for statutory interest under Section 80 of the Act' 2013, which was to be included in the awards passed by the competent authority for determination of compensation with respect of their lands sometime in the year 2022 or 2023, inasmuch as, acquisition proceedings had been conducted under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, which came into force on 01.01.2014. The denial of statutory interest would amount to denial of Constitutional Right to Property, as enshrined in Article 300 of the Constitution of India. It was argued that the Right to Property is now considered to be not only a 'constitutional' or a 'statutory right' but also 'human right'. The deprivation of person of his property can be saved only if the same is by authority of law. The law pertaining to acquisition of a private land is governed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 with effect from 01.01.2014. The result is that a person can be deprived of the ownership right in the property only when the deprivation is backed by the provisions of the Right to Fair Compensation Act, 2013. The submission is that denial of statutory interest to the landholder while making award on Page 12 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined the premise of some Government resolution of the year 1986 is nothing but denial of constitutional rights of the landholders protected by the Act' 2013.
17. At this stage, it may be pertinent to note that though a direction has been issued by this Court in the judgment and order dated 03.01.2025 to deal with similar cases where the competent authority / Collector is approached for recomputation of revision of the award by providing benefit of Section 80 of the Act' 2013 by applying the Government Resolution dated 02.01.2025, but it seems that no such step had been taken. The petitioners herein had approached the competent authority by making representation in light of the judgment and order dated 03.01.2025, but no award had been passed for payment of statutory interest under Section 80 of the Act' 2013 and, as such, the petitioners have filed the present writ petitions in the month of March 2025 onwards.
18. As noted hereinbefore, the petitioners herein have approached this Court seeking for modification of the award dated 26.04.2023 by according the aforesaid benefits as per the directions contained in the aforesaid judgment and orders dated 04.09.2024 and 03.01.2025 passed by this Court.
19. When the matters were taken up, the learned Assistant Government Pleader appearing for the State Respondents was directed to complete their instructions on the plea of the petitioners of denial of statutory interest under Section 80 of the Act' 2013. Upon instructions, the awards declared by the Special Land Acquisition Officer computing the statutory Page 13 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined interest payable under Section 80 of the Act' 2013 have been placed before the Court. It was then pointed out by the learned counsel for the petitioners that interest under Section 80 has been computed from the date of taking possession of the lands in question till the date of making of the original award. For instance, in the Special Civil Application No.4583 of 2025, as disclosed in the affidavit of the respondents dated 25.09.2025, the date of taking possession of the lands in question was 23.03.2009 / 28.04.2011 and the date of making of the original award was 26.04.2023. The date of payment of compensation under the original award was 29.11.2023. The interest calculated under Section 80 of the Act' 2013 in the additional award made on 28.05.2025 was uptil 29.11.2023, i.e. the date of payment of the compensation under the original award dated 26.04.2023.
20. The petitioner, thus, agitated that there was a shortfall, inasmuch as, the entire interest payable under Section 80 of the Act' 2013 was not made part of the original award declared on 26.04.2023. The result is that 15% interest would continue to accrue on the shortfall uptil the same is made good by payment of the amount towards statutory interest under Section 80 determined under the additional award dated 28.05.2025.
21. The petitioners demanded further interest of 15% on the shortfall for the period from 29.11.2023 (i.e. the date of payment of compensation under the original award) till the date of deposit of the amount computed under the additional award dated 28.05.2025.
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22. Taking note of the stand of the petitioners, vide order dated 08.07.2025, in a Special Civil Application No.4583 of 2025, we required the Special Land Acquisition Officer to make a fresh computation of the interest at the rate of 15% on the shortfall payable from 29.11.2023 till the date of deposit of the amount computed under the award dated 28.05.2025, with the directions to require the acquiring body to deposit the fresh computed amount within time frame. Similar orders have been passed in each of the writ petitions in the present bunch.
23. At this stage, the respondent State has came forward with the caveat and on 25.09.2025, when the matter was posted for the response of the State, the affidavits have been filed in each of the matter on behalf of the respondent No.1 namely, the Special Land Acquisition Officer (Narmada Project, Ahmedabad) to submit that in consonance and in pursuance of the order dated 03.01.2025, the State Government through the Revenue Department has issued a clarificatory Government Resolution dated 01.05.2025, whereby directions have been issued to the Special Land Acquisition Officer to pass the order under Section 80 within a period of two months.
24. The petitioners had approached the Special Land Acquisition Officer on 11.02.2025 and the award under Section 80 came to be passed on 31.05.2025, further the payment has been duly disbursed on 29.07.2025. It is stated therein that there was no intention to delay in determination of Section 80 interest in terms of the directions issued by this Page 15 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined Court in the order dated 03.01.2025, in light of the circular of the Revenue Department dated 01.05.2025. It is only on account of the large number of cases being decided and payment being disbursed parallely under Section 80 with the delay to the extent of approximately three months had occasioned in passing award in the case of the petitioners. We may note from the additional affidavits filed on behalf of the respondent No.1 in the present bunch of writ petitions that in almost in all cases, the petitioners had filed their representations in the month of February 2025 and the award computing Section 80 interest had been passed in the end of the month of May 2025 whereas, awarded amounts have been disbursed to the landholders some time in July 2025.
25. Before proceeding to deal with the arguments of Ms.Manisha Lavkumar Shah, the learned Additional Advocate General appearing for the State respondents, we may record that we are not imputing or attaching any illegality to the action of the State respondents in complying with the directions issued by this Court in the order dated 03.01.2025. We appreciate the stand of the State respondents in taking corrective measures by coming out with the Government circular dated 01.05.2025 issued by the Revenue Department in compliance of the order dated 03.01.2025 of this Court and further that the landholders, who had approached the Special Land Acquisition Officer, Section 80 awards were passed in accordance with the Government resolution dated 01.05.2025 in the month of May 2025 itself.
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26. However, the issue before us is about the implementation of the statutory provisions of Section 80 of the Act' 2013 at the ends of the Special Land Acquisition Officer, in the spirit of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
27. Before proceeding with the arguments of the State, we would like to go through the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 to ascertain and understand the object and purpose of award of interest under Section 80 of the Act' 2013, by incorporating it in the statute itself as a mandatory element to be included in the final award made by the Special Land Acquisition Officer under Section 23 of the Act' 2013.
28. Under the scheme of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 brought into force with effect from 01.01.2014, pertinent is to note that the Act' 2013 has been enacted with the object and purpose to address the concerns of the displaced persons namely farmers and whose livelihoods are dependent on the land being acquired and to streamline the law relating to acquisition of land for public purpose, facilitating the land acquisition for industrialization, infrastructure and urbanization projects in a timely and transparent manner. It was noted in the Statement of Objects and reasons of the bill presenting the the Right to Fair Compensation Act, 2013 that the provisions of the Land Page 17 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined Acquisition Act, 1894 have been found inadequate in addressing the issues related to the exercise of the statutory power of the State for involuntary acquisition of the private land and property and further that, it does not address the issue of rehabilitation and resettlement of the affected persons and their families.
29. With the above, we only meant to say that the Right to Fair Compensation Act, 2013 has been enacted as a comprehensive legal framework to conduct informed and transparent process for land acquisition for development of essential infrastructure facilities. The long title of the Act' 2013 conveys the mind of the legislature to incorporate adequate provisions for affected persons for their rehabilitation and resettlement and for ensuring that the cumulative outcome of compulsory acquisition should be that affected persons become partners in development leading to an improvement in their post acquisition social and economic status.
30. Under the scheme of the 2013 Act, Chapter IV deals with the 'Notification and Acquisition' in Sections 11 to 30. Sections 11 to 19 are pertaining to the publication of the intention and declaration for acquisition of any particular land needed for a public purpose. Section 21 requires the Collector to cause public notice of the intention of the State Government to take possession of the land and to invite the persons interested to put their claims to compensation and rehabilitation and resettlement, as the case may be. The inquiry into the objections filed by the persons interested Page 18 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined pursuant to the notice under Section 21 is to be made by the Collector in accordance with Section 23 while making the award. Section 24 deals with the transitory phase where land acquisition proceedings though were initiated under the old Land Acquisition Act'1984, but could not be concluded before the enactment of the the Right to Fair Compensation Act, 2013. Section 26 provides for the criteria to be adopted by the Collector in assessing and determining the market value of the acquired land. Section 27 requires the Collector to calculate the total amount of compensation to be paid to the landowner, whose land has been acquired after determination of the market value of the land (in accordance with Section
23), by including of assets attached to the land. Section 28 provides the parameters for consideration in determination of the award, i.e. the amount of compensation to be awarded for the land acquired. Section 29 deals with determination of value of things attached to the land or building and provides guidelines for the Collector to determine the market value of the buildings and other immovable properties or assets attached to the land or building, which are to be acquired.
31. Section 30 sub-section (1) provides that the Collector having determined the total amount of compensation to be paid (as per the preceding provision) shall impose a solatium equal to 100% of the compensation amount, to arrive at the final award. The explanation to sub-section (1) of Section 30 clarified that solatium amount shall be in addition to the compensation payable to the landowner. Sub-section (3) of Section 30 provides that in every case, in addition to the Page 19 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined market value of the land provided under Section 26, the Collector shall award the amount calculated @ 12% per annum on such market value, for the period commencing from the date of preliminary notification [Section 4 (2) of the Act' 2013] in respect of such land, till the date of award of the Collector or the date of taking possession of the land, whichever is earlier. Sub-section (2) of Section 30 is relevant to be extracted hereinunder:-
"30. Award of solatium.- (2) The Collector shall issue individual awards detailing the particulars of compensation payable and the details of payment of the compensation as specified in the First Schedule."
32. A reading of sub-section (2) of Section 30 makes it clear that the Collector is required to make individual awards detailing (i) the particulars of compensation payable and (ii) the details of payment of compensation as is specified in the first schedule, which include:-
(i) Market value of the land determined under Section 26;
(ii) Multiplication factors 1 or 2, depending upon the location of the land being in urban area or rural area;
(iii) Value of assets attached to land and building;
(iv) Solatium;
33. The final award prepared by the Collector, as provided in sub-section (2) of Section 30, thus, would include all factors of compensation including solatium. From the settled principle of law as stated in Sunder Vs. Union of India [(2001) 7 SCC 211], we may note that the total amount of compensation determined under the award declared under Page 20 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined Section 23 by the Collector shall include the market value (Sections 26) as well as solatium and additional compensation [Section 30 sub-section (1) and sub-section (3)], i.e. all elements of compensation as per the Act' 2013. We may note that the statement of law in Sunder Vs. Union of India (supra) under the old Land Acquisition Act' 1894 has been incorporated by the legislature in the express provision of sub-section (2) of Section 30 of the Act' 2013.
34. Chapter X of the 2013 Act deals with the payment or deposit of compensation under the award made by the Collector. Section 77 provides that on making of the award under Section 30, the Collector shall tender payment of compensation awarded by him to the persons interested entitled thereto according to awards, by depositing the amount in their bank accounts. Sub-section (2) of Section 77 provides that in case of any dispute as to the title to receive the compensation or to the apportionment thereto, the Collector shall deposit the amount of compensation with the Authority established under Section 51 and make a reference to the said Authority under Section 64. Section 80, relevant for the purposes of the controversy at hand, is also contained in Chapter X under the heading "Payment" and reads as under:-
"80. Payment of interest.-When the amount of such compensation is not paid or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of nine per cent. per annum from the time of so taking possession until it shall have been so paid or deposited:
Provided that if such compensation or any part thereof is not paid or deposited within a period of one year from the date on which Page 21 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined possession is taken, interest at the rate of fifteen per cent. per annum shall be payable from the date or expiry of the said period of one year on the amount of compensation or part thereof which has not been paid or deposited before the date of such expiry."
35. A bare reading os Section 80 of the Act' 2013 indicates that the statute mandates to award interest at the rate of 9% and 15% per annum on the amount of compensation awarded by the Collector, in such cases where such compensation is not paid or deposited on or before taking possession of the land. The time period for levying interest @ 9% per annum is from the date of taking possession until the compensation amount is paid or deposited upto a period of one year. Proviso to Section 80 further provides that, in case, the compensation is not paid or deposited within one year from the date of taking possession, interest @ 15% per annum shall be payable from the date of expiry of the period of one year on the amount of compensation. The period of levying 15% interest would, thus, reckon from the date of expiry of one year from the date of taking possession and continue to accrue till the amount of compensation or part thereof is paid or deposited, if such compensation or part thereof has not been paid or deposited before the expiry of one year.
36. The statutory interest under Section 80 of the Act' 2013, though is not part of the compensation as provided in Section 30 (2) but it has to be computed under the final award prepared by the Collector in accordance with Section 30 sub- section (2) of the Act' 2013. As per our understanding, it was a necessary component of the final award, where the compensation is not paid or deposited on or before taking Page 22 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined possession of the land. The statutory interest, as mandated under the Act' 2013 considering the compulsory nature of acquisition, was required to be included by the Collector / Special Land Acquisition Officer while declaring the final award, with respect to the lands in question belonging to the petitioners herein. Admittedly, this has not been done. The act of the Special Land Acquisition Officer in ignoring the provisions of Section 80 of the Act' 2013 and payment of 9% per annum interest as rental value of the lands in question applying Government resolution dated 18.06.1986 was a wholly illegal exercise of power. There is no justification for denial of Section 80 interest in the original award declared in the year 2022-2023 in the present set of cases.
37. The amended award termed as order under Section 80 has been passed only after the intervention of this Court in Special Civil Application No.16200 of 2024, wherein directions have been issued vide judgment and order dated 03.01.2025 to declare awards of statutory interest under Section 80. However, while calculating the interest, the date of taking possession though has rightly been considered. But the date of payment or deposit of compensation was considered being the date of payments or deposits made under the original award, which were sometime in the year 2022 - 2023. In the present set of writ petitions, the petitioners are seeking difference in the amount of 15% interest from the date of payment under the original award till the date of payment under the additional award or order passed under Section 80. There is a gap of almost 2 - 3 years Page 23 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined in each case in the present set of writ petitions in the grant of interest under Section 80 by making an additional award.
38. As noted from the scheme of the Act' 2013, statutory interest under Section 80 was required to be paid to the landholders along with the compensation amount determined under the original awards, which were passed sometime in the year 2022 - 2023. It is an admitted fact that the amounts towards interest which were required to be paid in the year 2022 - 2023 itself, had not been paid to the landholders at the time of payment of compensation under the original award.
39. According to us, the unpaid amount of interest would carry further interest @ 15% per annum from the date of payment of the compensation under the original award till the date of payment under the additional award passed under Section 80 of the Act' 2013. The amount of money towards statutory interest, which remained unpaid, according to us, would continue to accrue interest @15% per annum as per the proviso to Section 80 of the Act' 2013.
40. We say so for the reason that the purpose of payment of interest under Section 80 of the Act' 2013 is to further compensate for the landholders for the delay in making the payment of compensation determined under the award. Under the scheme of the Act' 2013, the power to take possession of the acquired land is circumscribed by the provisions of Section 38, which states that the Collector would be able to take possession of the land only after ensuring that full Page 24 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined payment of compensation as well as rehabilitation and resettlement entitlements are paid or tendered to the entitled persons, within a period of three months for the compensation and a period of six months for the monetary part of rehabilitation and resettlement entitlements listed in the Second Schedule, commencing from the award made under Section 30. The mandate, thus, is that the landholders shall be paid compensation amount within a period of three months from the date of the award made under Section 30 and the Collector has to ensure full payment of compensation at the time of taking possession of the land.
41. Special emergency powers to take possession of the acquired land are incorporated in Section 40, which empowers the Collector to take possession of any land needed for a public purpose, in case of urgency without making any award, on the expiry of 30 days period from the date of publication of the notice under Section 21. Even in such cases, for exercise of the power of urgency, as per sub-section (3) of Section 40, the Collector is required to tender payment of 80% of the estimated compensation for the acquired land to the landowners before taking possession.
42. Sub-section (2) of Section 40 deals with the emergency power of the Collector to take possession in the cases, where the lands are required for the defense of India or National security or for any emergency arising out of natural calamities or any emergency with the approval of the Parliament, with which we are not concerned in the present matter.
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43. Thus, the Act' 2013 mandates making full payment of compensation after the award under Section 30 is made, before taking possession of the acquired land. This provision is in the spirit of the constitutional provisions enshrined in Article 300-A read with the second proviso to clause (1) of Article 31A of the Constitution of India. The ommission or lapse to complete the exercise of payment of compensation before taking possession of the land is contrary to the mandate of the statute. Even under the Land Acquisition Act' 1894, except in the case of invocation of urgency provision under Section 17, the power to take possession was given to the Collector only after making of an award under Section 11. Section 16 of the Land Acquisition Act, 1894 provided for making of the award before taking possession of the acquired land by the Collector. The statutory interest 9% and 15% on the compensation determined under the award passed by the Collector was payable under Section 34 of the Act' 1984 in the same manner, as prescribed in Section 80 of the Act' 2013.
44. In a recent decision, in Ultra-Tech Cement Ltd. v. Mast Ram, [(2025) 1 SCC 798], the Apex Court, taking note of the provisions of Section 38 (1) of the Act' 2013, has held that the payment of full and final compensation to the landowners is a precursor to taking possession of the land sought to be acquired from such persons and any ommission or lapse to complete such exercise before taking possession of the acquired land would be in contravention of the mandate of the said provision.
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45. In an earlier decision of Vidya Devi v. State of H.P., [(2020) 2 SCC 569], the Apex Court was dealing with the claim of an 80 years old landowner who had approached the Himachal Pradesh High Court to agitate that the State had taken over her land in the year 1967 - 1968 for the construction of a road without taking recourse to acquisition proceedings, or following due process of law. The State of Himachal Pradesh had argued therein about the delay and laches on the part of the landowner to seek rejection of her claim. The Apex Court has noted that expropriation of the landowner of her property in the year 1967 was denial of right to property, which was a fundamental right guaranteed by Article 31 in Part III of the Constitution at the relevant point of time. Though, with the 44 th Constitutional Amendment, vide Constitution (Forty Fourth Amendment) Act, 1978, the Right to Property ceased to be a fundamental right, but, it continued to be a human right in a welfare state and a constitutional right under Article 300-A of the Constitution. The State cannot dispossess a citizen of his property except in accordance with the procedure established by law. [Reference was made to the law stated in Tukaram Kana Joshi v. MIDC, [(2013) 1 SCC 353] and K.T. Plantation (P) Ltd. v. State of Karnataka, [(2011) 9 SCC 1]].
46. We may say that the obligation to pay compensation in a case of compulsory acquisition of a private property, i.e. for expropriation of private land is incorporated in the second proviso to clause (1) of Article 31 A of the Constitution, which mandates that the law making provisions for the acquisition Page 27 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined by the State of any estate or land held by a person under his personal cultivation, shall not be lawful unless such law provides for payment of compensation at a rate which shall not be less than the market value of such land, building or structure. The Land Acquisition Act' 1894 and Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act' 2013 are the exproprietary legislations saved by virtue of Article 31A of the Constitution of India as they provided to compensate a landowner for compulsory acquisition in their statutory scheme.
47. Forcible dispossessing a person of his property, without following the due process of law is a clear violation of the right to property which is elevated to the status of human right, besides being the constitutional right guaranteed under Article 300-A of the Constitution. This principle has been settled by the Apex Court in various decisions ranging from 2005 onwards, as noted by the Apex Court in Vidya Devi (supra) and others (Reference: Paragraph Nos. '12.3' to '12.6" therein)
48. It is observed by the Apex Court in Vidya Devi (supra) that in a democratic polity governed by the rule of law, the State cannot deprive the citizen of their property without the sanction of law. The State must comply with the procedure for acquisition, requisition or any other permissible statutory mode. The State being a welfare state governed by the rule of law cannot arrogate to itself a status beyond what is provided by the Constitution. The stand of the State for the delay and Page 28 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined laches on the part of the appellant in moving the Court has been dealt with by the Apex Court in the following manner:-
"12.12. The contention advanced by the State of delay and laches of the appellant in moving the Court is also liable to be rejected. Delay and laches cannot be raised in a case of a continuing cause of action, or if the circumstances shock the judicial conscience of the Court. Condonation of delay is a matter of judicial discretion, which must be exercised judiciously and reasonably in the facts and circumstances of a case. It will depend upon the breach of fundamental rights, and the remedy claimed, and when and how the delay arose. There is no period of limitation prescribed for the courts to exercise their constitutional jurisdiction to do substantial justice.
12.13. In a case where the demand for justice is so compelling, a constitutional court would exercise its jurisdiction with a view to promote justice, and not defeat it. [P.S. Sadasivaswamy v. State of T.N., (1975) 1 SCC 152 : 1975 SCC (L&S) 22]"
49. In light of the above discussion, when we consider the facts and circumstances of the present case, we may note that though the awards determining compensation for the lands in question under Section 23 of the Act' 2013 were declared sometime in the year 2022-2023, but the statutory interest under Section 80 was not computed nor paid. As discussed above, the object of incorporating statutory interest under Section 80 within the scheme of the Land Acquisition Act (old or new) is to compensate the landowners for the delay in determination and making payment of compensation. In cases, where possession of the land is taken without payment of full compensation or a part thereof, the statutory interest under Section 80 would reckon from the date of taking possession Page 29 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined and continue to accrue till the date the amount of compensation under the award made by the Collector is paid or deposited. In the admitted position of the present case, the landowners had been deprived of their landed property by illegal act of forcible dispossession by the State, without even initiating proceedings for acquisition of the lands in question. The petitioners have been deprived of their landed property by the State without any legal sanction, i.e. without following due process of law. The exercise of power of 'Eminent Domain' by the State in the scheme of the Land Acquisition Act is guided by the statutory provisions and the State can deprive the landholder of his property only in accordance with the procedure established by law. Any deprivation without any sanction of law would be in contravention of the constitutional rights guaranteed under Article 300-A of the Constituion.
50. The present bunch of cases are such where State had resorted to an illegal exercise of power in depriving the landholders of their Right to Property. The compensation was determined after about a period of more than 10 years of taking possession (in almost each case) when the acquisition proceedings were resorted to under the 2013 Act and awards were made in the year 2022 - 2023. However, in a novel exercise of power, the statutory interest under Section 80 was denied on the premise of a Government Resolution dated 18.06.1986, which has no statutory backing of the 2013 Act. The denial of interest under Section 80 in the original award passed in the year 2022 - 2023 was absolutely illegal. Corrective measures, though, have been taken by the State Page 30 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined after intervention of this Court, but the entire amount of shortfall has not been made good.
51. Admittedly, there was a shortfall in the amount required to be paid under the original award declared in the year 2022
- 2023, inasmuch as, the interest under Section 80 was to be computed and paid on the amount determined by the Special Land Acquisition Officer under the original awards. The shortfall had been made good only with the making of the additional awards or orders in the month of May 2025, but the interest of 15% has been computed only until the date of payment of compensation under the original awards sometime in the year 2022 - 2023. The contention is that since the compensation determined under the original awards had been paid, no further interest would accrue beyond the date of payment.
52. Ms.Manisha Lavkumar Shah, the learned Additional Advocate General appearing on behalf of the State based on the decisions of the Apex Court in DDA v. Mahender Singh, [(2009) 5 SCC 339]; D-Block Ashok Nagar (Sahibabad) Plot Holders' Assn. (Regd.) v. State of U.P., [(1997) 10 SCC 77]; Shree Vijay Cotton & Oil Mills Ltd. v. State of Gujarat, [(1991) 1 SCC 262] has vehemently argued that the Land Acquisition Act being a self-contained code, liability to pay interest to the landholder arises only in accordance with the scheme of the Act. The common law principles of justice, equity and good conscience cannot be extended in awarding the interest, contrary to or beyond the provisions of the Statute. It was submitted that even under the old Land Page 31 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined Acquisition Act, 1894, the statutory interest of 9% and 15% was governed by Section 34 of the Act' 1894. Referring to the decision of the Apex Court in Delhi Development Authority (Supra), it was vehemently argued that there is no scope for a direction to pay interest in a manner not contemplated by the Act (Section 34). The submission is that though the liability to pay interest commence from the date of taking possession, the statutory interest is to be calculated and paid only till the date of deposit or payment and in view of Section 80, no further interest can be levied on the compensation amount, which was determined and paid in the year 2022 - 2023 under the original awards.
53. The submission is that as under the scheme of the Land Acquisition Act, which is a self-contained code, there is no provision of levy of interest beyond the date of payment or deposit of compensation, no further interest can be paid to the landholder beyond the date of payment or deposit of the compensation amount.
54. Considering the above, we may note from one of the decisions relied by the learned Additional Advocate General namely Shree Vijay Cotton and Oil Mills (supra) that the Apex Court, considering the wordings of Sections 28 and 34 of the Land Acquisition Act' 1894 which provided for 9% and 15% interest on the awarded amount, has noted that the framers of the Act intended to assure the payment of interest to the landowners and the scheme is such that the said payment cannot be subject to procedural hazards. The legislature mandate is clear and is a directive to the Collector Page 32 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined to pay the interest in a given circumstance. Section 34 though nowhere says that the interest amount is to be included in the award as prepared under Section 23(1) read with Section 26 of the Act' 1896 but it mandates payment of interest at the time of payment of compensation. The interest to be paid under Section 34 is of different character than the compensation amount under Section 23 (1) of the Act' 1894.
55. It is, thus, held therein that where the interest is payable under the Act, it can be claimed at any stage of the proceedings under the Act, whereas the amount of compensation under Section 23(1) which is an award is subject to the rule of procedure or limitation. It is, then, observed that the procedural hassle cannot come in the way of substantive rights of the citizen under the Act to claim interest. In fact, it is the duty of the Collector to pay interest at the time of payment of compensation. It was, thus, held that it was not necessary for the claimant to file any separate appeal / cross objection before the Court for the purpose of claiming interest under Section 34 of the Act' 1894. The landowner could even claim interest in the State appeal without filing any cross objection.
56. With the above observations, the plea of the State therein to reject the claim of the interest under Section 34 of the Act' 1894 on the ground that the cross-objections filed therein was time barred, was held to be wholly irrelavant.
57. In view of the above discussion, we find that the interest under Section 80 of the Act' 2013 may not be part of the Page 33 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined award declared under Section 23 read with sub-section (2) of Section 30 as it does not require any exercise of adjudication but, it is the legislative mandate to the Collector to pay Section 80 interest on the date of payment of compensation. Admittedly, there was a shortfall and the statutory interest was denied illegally. The amount of interest due to the landholders remained unpaid and according to us, would further continue to accrue on the shortfall, i.e. the amount payable towards statutory interest under Section 80, till the date the said amount is computed and paid or deposited. On the said shortfall in the payment of the amount of money under the original award made in the year 2022 - 2023, the landowners are found entitled to interest, on the short payment @15% per annum, from the date of payment of compensation till the date of payment under the additional award of interest amount. The landholders who have been deprived of their right to receive compensation in time, i.e. before the possession of their lands were taken, cannot be denied statutory interest on the shortfall on the premise that compensation determined under the original award was already paid in the year 2022 - 2023 and shortfall was only of interest.
58. It is pertinent to note that from the table of computation given in the affidavit of the State respondents, (in one of the matters namely Special Civil Application No.4593 of 2025), it can be seen that the compensation paid to the landholder under the original award on 12.12.2023 was for an amount of Rs.10,43,23,920/- whereas the interest @15% under Section Page 34 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined 80 calculated up to the said date of payment, i.e. 13.12.2023 comes to Rs.21,57,69,114/-. It is, thus, evident that there was a major shortfall in the amount paid legally due to the landowners as on 13.12.2023 when the compensation under the original award was paid. The only respite to the landholders in the case of expropriation of landed property is payment of due and just compensation. Almost one decade has already passed and the petitioners are before this Court in the second round of litigation. There has been substantial delay in payment of compensation and the petitioners have not only been deprived of the fruits of their landed property, which was the only source of their livelihood more than a decade ago, but they had to fight with the State in two rounds of litigation, which is a Welfare state, to get their legitimate rights. The delay in payment of due amount of money to the landholders is detrimental to their interest.
59. The Apex Court in K. Krishna Reddy v. Collector (LA), [(1988) 4 SCC 163] about three decades ago has dealt with such a situation while noticing that "The Indian agriculturists generally have no avocation. They totally depend upon land. If uprooted, they will find themselves nowhere. They are left high and dry. They have no savings to draw. They have nothing to fall back upon. They know no other work. They may even face starvation unless rehabilitated."
60. It is of utmost importance in compulsory acquisition that award should be made without delay. The compensation must be determined without loss of time. Had the petitioners been Page 35 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined compensated in time, i.e. in the year 2009 / 2010 / 2011, when they were dispossessed of their agricultural lands, they could have utilized the money to rehabilitate themselves. We do not know and it is also not possible for us to ascertain as to what kind of deprivation they have faced on account of denial of compensation in time. The State being the welfare state, cannot be permitted to deny due compensation to the landholders when it has indulged in compulsory divesting of the petitioners without legal sanction. After all, money is what money buys. What claimants could have bought in the year 2009 - 2011 they cannot get in the year 2023 or 2025. The shortfall in payment towards interest under Section 80 could have been a huge relief to the landholders had the same been paid in time along with the compensation amount determined by the Collector in the year 2023 itself. The denial of payment of statutory interest has obviously caused serious hardship to the landholders.
61. With the above, we reach at an irresistible conclusion that the statutory interest under Section 80 has been incorporated by the legislature with the object and idea to give solace to the landowners by compensating them for the delay in payment of compensation, i.e. to compensate them for the loss caused due to deprivation of their source of livelihood without payment of money, that too without adhereing to an adjudication process. Section 80 of the Land Acquisition Act, thus, has to be read and interpreted in a manner that for the shortfall in payment of compensation and also the statutory interest over and above the amount of Page 36 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025 NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined compensation determined under the award, the interest of 15% would continue to accrue till the entire compensation amount of money due namely compensation computed under the award including the statutory interest under Section 80 is paid to the landowner or deposited by the acquiring body. The accrual of statutory interest under Section 80 which commences from the date of taking possession would stop only when the entire amount towards compensation determined under the award is paid or deposited along with the statutory interest of 9% and 15%, which is mandatorily levied on the compensation amount, with the idea to compensate the landholder for the delay in payment of compensation in lieu of expropriation of his property.
62. With the above, we find it just and proper to reject the submissions of the learned Additional Advocate General that the statutory interest under Section 80 will be levied only uptil the date of payment or deposit of the compensation amount determined under the original award, though admittedly there was a shortfall and the statutory interest was neither paid to the landholders nor was deposited by the acquiring body along with the compensation amount.
63. We, therefore, hold that the petitioners herein are entitled to the interest @ 15% per annum on the shortfall, i.e. the amount determined under Section 80 of the Act' 2013 from the date of payment of compensation under the original award till the date the payment of the interest part, which has been determined under the additional award or the order passed in the month of May 2025.
Page 37 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025NEUTRAL CITATION C/SCA/4103/2025 CAV JUDGMENT DATED: 13/10/2025 undefined
64. The Special Land Acquisition Officer is directed to make a fresh computation of the interest payable from the date of payment of compensation under the original award (in the year 2022 - 2023), till the date of payment or deposit of the amount of interest computed under the additional award passed in the month of May 2025.
65. The computation of the interest @15% on the shortfall shall be completed by the Special Land Acquisition Officer and the resultant payment shall be made to the petitioners as early as possible. It is, however, clarified that no further interest beyond the date when the payment under the amended award or order under Section 80 of the Act' 2013 had been made in the month of May' 2025, shall be leviable.
66. With the above, the present set of writ petitions stand allowed. No order as to cost.
(SUNITA AGARWAL, CJ ) (D.N.RAY,J) SAHIL S. RANGER Page 38 of 38 Uploaded by MR. SAHIL SAMIULLA RANGER(HC01898) on Tue Oct 14 2025 Downloaded on : Wed Oct 15 01:58:03 IST 2025