Legal Document View

Unlock Advanced Research with PRISMAI

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 2, Cited by 2]

Punjab-Haryana High Court

State Of Punjab vs Kartar Singh And Ors. on 5 November, 1985

Equivalent citations: AIR1986P&H312, AIR 1986 PUNJAB AND HARYANA 312, (1986) 1 LANDLR 562, (1986) ILR 1 P&H 328, (1985) 88 PUN LR 683

JUDGMENT

1. This judgment will dispose of E.F. As. Nos. 1374 to 1386 of 1985 as the question involved is involved is common in all the cases.

2. The Punjab State filed application under Section 144 of the Civil P.C. (hereinafter called the Code) for restitution of the amount already realised as enhanced compensation by the respondents under the award by the Court under Section 18 of the Land Acquisition Act, (hereinafter called the Act) which was subsequently modified by this Court in appeal.The applicant State also claimed interest at the rate of six per cent per annum on the amount which was paid to the respondent by way of enhanced compensation earlier. The dispute between the parties was as to whether the State was entitled to the interest or not under Section 144 of the Code. The learned District Judge took the view that the respondents could not be burdened with interest on the amount to be realised from them because no such undertaking was given by them in the security bonds furnished by them while realising the enhanced amount of compensation. Dissatisfied with the same, the State of Punjab had filed these appeals in this Court.

3. The learned counsel for the appellant contended that under the provisions of Section 144 of the Code, the Court could make orders for the payment of interest, damages and compensation which are property consequential on such variation, reversal, setting aside or modification of the decree or order. Thus, argued the learned counsel, the view taken by the learned District Judge was wrong and misconceived. On the other hand, the learned counsel for the respondents submitted that there was no direction in the High Court order for refunding the enhanced amount of compensation with interest, nor there was any undertaking given by the respondents in this behalf while furnishing security bonds, and, therefore, in the absence of any such stipulation, no interest could be awarded under Section 144 of the Code. In support of the contention, the learned counsel relied upon Land Acquisition Officer v. Mulji Haridas, AIR 1932 Bom 326 and Birendra Nath v. Surendra Kumar, AIR 1940 Cal 260.

4. After hearing the learned counsel for the parties and going through the case law cited at the bar, I am of the considered opinion that the State is entitled to the interest on the enhanced amount of compensation to be recovered by it under Section 144 of the Code. The authorities relied upon by the learned counsel for the respondents have no applicability to the facts of the present case. In Birendra Nath's case (supra), it was held that where an order for the return of costs contains no direction for the payment of interest, no interest can be realised in execution of that order and, therefore, interest in restitution under Section 144 of the Code cannot be allowed though ordinarily interest is a part of the normal relief given in restitution. In the present cases, there was no such specific direction for the refund of compensation which interest, but it was a natural consequence of the order passed by this Court when the award given by the District Judge was modified in appeal. Under Section 144 of the Code, the parties are to be placed in the same position which they would have occupied but for such a decree or order and for that purpose, the Court could make any orders for the payment of the interest, damages, compensation etc. which are properly consequential on such variation, reversal, setting aside or modification of the decree or order. Thus, the payment of interest is a part of the normal relief granted under Section 144 of the Code, as held in Birendra Nath's case (AIR 1940 Cal 260) (supra) also. The other judgment i.e. Land Acquisition Officer's case (AIR 1932 Bom 326) has absolutely no relevancy.

5. Apart from the above, the respondents have taken the benefit of the money which they have received from the State of Punjab as enhanced amount of compensation which they were not entitled to receive in view of the decree passed by this Court in appeal. Thus, having taken the benefit of the amount, the same must be returned to the appellant with interest, as claimed.

6. Consequently, all the appeals succeed and are allowed. The orders under appeals are set aside. The case are sent to the District Judge. Hoshiarpur, for determining the actual amount of interest which the appellant is entitled to claim on the amount of compensation to be refunded. The parties have been directed to appear in the Court of the District Judge on Dec. 9, 1985.

7. Appeals allowed.