As per case facts, claimants filed appeals/applications seeking enhanced compensation for land acquired, often with significant delays, aiming for parity with other landowners who had received higher amounts. The appeals ...
fast18561-2018 & connected-J.doc
AGK
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
FIRST APPEAL (ST.) NO.18561 OF 2018
WITH
CIVIL APPLICATION NO.3538 OF 2019
Motiram Bhika More, since deceased
through legal heirs … Applicant
V/s.
The State of Maharashtra & Anr. … Respondents
WITH
FIRST APPEAL (ST.) NO.31615 OF 2018
WITH
CIVIL APPLICATION NO.74 OF 2025
Babi Janu Venupure, deceased
through legal heirs … Applicant
V/s.
The Land Acquisition Officer
No.3, Pune & Others … Respondents
WITH
FIRST APPEAL (ST.) NO.13364 OF 2023
WITH
INTERIM APPLICATION NO. 9240 OF 2024
Kashinath Hiru Katekar, deceased
through LRs Sunil Kashinath Katekar
& Others … Applicants
V/s.
Special Land Acquisition Officer 1
Raigad & Others … Respondents
WITH
FIRST APPEAL (ST.) NO.30044 OF 2024
WITH
INTERIM APPLICATION NO. 3973 OF 2025
1
ATUL
GANESH
KULKARNI
Digitally signed by
ATUL GANESH
KULKARNI
Date: 2026.09.08
11:24:00 +0530
fast18561-2018 & connected-J.doc
Govind Ziprya Bhoir, since deceased
through legal heir Ananta Govind
Bhoir & Others … Applicants
V/s.
Special Land Acquisition
Officer, Panvel … Respondent
Mr. Prathamesh T. Bhanuvanshe i/by Mr. Sanjay P.
Shinide for the appellant in FAST/18561/2018.
Ms. Amrita Kharkar with Ms. Sayalee Bhosale i/by
P.H. Potnis for the appellant in FAST/31615/2018.
Mr. Shriram S. Kulkarni with Pranjal Khatavkar i/by
Mr. Sujay Palshikar for the appellant in
FAST/13364/2023.
Mr. Shriram S. Kulkarni with Mr. Gaurav Ugle and
Mr. Aryvrat Dubey for the appellant in
FAST/30044/2024.
Mr. A.R. Patil, Additional G.P. for the State in all the
matters
CORAM :AMIT BORKAR, J.
RESERVED ON :SEPTEMBER 1, 2026
PRONOUNCED ON:SEPTEMBER 8, 2026
JUDGMENT:
1.Following questions arise for consideration in the present
group of applications
(i) Question No. 1: Whether the Court can direct a
party to give an undertaking that they will waive
their interest as and by way of condition for
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condonation of delay in a land acquisition
matter/appeal?
(ii) Question No. 2: Whether such condition can be
permitted to be imposed under Section 5 of the
Limitation Act, 1963?
(iii) Question No. 3: In which situation can a
direction be given that the claimant's waiver would
waive off interest, since there is no burden on the
exchequer of the State for the inaction of the
claimant for the period of delay?
(iv) Question No. 4: Whether, considering cross
appeal or cross objections filed by claimants in
State's or acquiring body's appeal, the same
considerations for imposing condition of waiver of
interest for the period of delay shall apply?
(v) Question No. 5: What can be a reasonable
period of delay after which such condition to waive
interest can be imposed?
2.I have considered the provisions of Section 5 of the
Limitation Act, 1963, Order XLI Rules 22 and 33 of the Code of
Civil Procedure and Sections 28 and 34 of the Land Acquisition
Act, 1894. The decisions in
Dhiraj Singh v. State of Haryana
(2014) 14 SCC 127, Nimna Dudhna Project v. State of
Maharashtra
, (2020) 3 SCC 255, Ningappa Thotappa Angadi v.
LAO, Mahadev Govind Gharge v. LAO
, (2011) 6 SCC 321, State
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of Maharashtra v. Kalu Ladku Mhatre, (2011) 4 Mah LJ 741,
Pralhad v. State of Maharashtra
, (2010) 10 SCC 458 and Suresh
Kumar v. State of Haryana
, 2025 SCC OnLine SC 896 and Others
have been considered. In my view, the principles arising from
these judgments have to be seen together and in their proper
perspective. The questions before the Court cannot be answered
merely by reading Section 5 of the Limitation Act in isolation.
3.The first submission on behalf of the claimants is that
Section 5 of the Limitation Act does not contain any provision
authorising the Court to direct the claimant to give up or waive
interest as a condition for condoning delay. According to the
claimants, Section 5 only enables the Court to condone delay
when sufficient cause is shown. To this limited extent, the
submission is correct. Section 5 does not contain the words
"waive interest". But the absence of these words cannot conclude
the entire issue which arises before the Court. Section 5 confers
a discretionary power upon the Court. For exercising that power,
the Court has to be satisfied that sufficient cause has been
shown for not filing the appeal or application within the
prescribed period. The object of Section 5 is not to punish a
party merely because the proceeding was filed late. The object is
to enable the Court to do substantial justice when there is a
proper reason for the delay. The purpose is to prevent a genuine
matter from being rejected at the threshold when sufficient
cause is shown, so that the matter can be considered on merits.
It does not mean that the Court is prevented from examining the
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separate financial consequence which may arise because of the
delayed approach. This becomes relevant where the financial
burden is sought to be placed upon the opposite party for a
period during which the claimant had not approached the Court.
4.This distinction assumes importance in land acquisition
matters. In such cases, the land has been taken from the
landowner by compulsory acquisition. The dispute remains
regarding the amount of compensation payable for the land so
acquired. It may be that one claimant has received lesser
compensation while another landowner, whose land was
acquired under the same notification or for the same project, has
received higher compensation. If the delay is not condoned, the
claimant may lose the opportunity to obtain the higher
compensation. On the other hand, if the delay is condoned and
interest is granted for the entire period of delay, the acquiring
authority may become liable to pay interest for a period during
which the claimant had not approached the Court. Therefore,
the right to compensation and the claim for interest for the
delayed period have to be considered separately.
5.The Supreme Court has made this distinction in Dhiraj
Singh
. In paragraph 15, it held:
“
15. Equities can be balanced by denying the appellants'
interest for the period for which they did not approach the
court. The rights of the appellants should not be allowed
to be defeated on technical grounds by taking
hypertechnical view of self-imposed limitations. In the
matter of compensation for land acquisition, we are of the
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view that approach of the court has to be pragmatic and
not pedantic.”
6.The expression "equities can be balanced" is of importance.
The Supreme Court did not hold that the claimant should be
deprived of enhanced compensation merely because the appeal
was filed after some delay. The right of the claimant was kept
protected. What was denied was interest for the period during
which the claimant had not approached the Court. Thus, the
entitlement to compensation and the financial consequence
arising from delayed approach were treated as separate matters.
7.The same issue subsequently came before the Supreme
Court in
Nimna Dudhna Project. In that matter, there was a
delay of five and a half years in filing the appeals. The High
Court had condoned the delay and had enhanced the
compensation so that the claimants received compensation at
par with other landowners. The Supreme Court did not find
fault with the condonation of delay. In paragraph 5, the Court
noticed that the question which still required consideration was
whether the claimants were entitled to statutory benefits and
interest for the period of delay.
8.The Supreme Court considered this issue in paragraph 5.1
after referring to
Dhiraj Singh and K. Subbarayudu. It held:
“Merely because at the time of condoning the delay no
such condition was imposed that the claimants shall not be
entitled to the interest on the enhanced amount of
compensation for the period of delay, the appellant who is
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otherwise a public body cannot be saddled with the
liability to pay the interest for the period of delay, which is
not at all attributed to them.”
9.The above observation has direct bearing upon the
question, which is being considered. It makes the position clear
that merely because the order condoning delay did not impose a
condition regarding interest, the claimant does not thereby
become entitled to interest for the delayed period. The Supreme
Court held that a public body cannot be burdened with interest
for a period of delay which was not attributable to that public
body.
10.Therefore, the submission of the claimants that Section 5
does not provide for imposing a condition of waiver of interest is
correct to that limited extent. But this submission cannot lead to
the conclusion that the Court has no power to exclude interest
for the delayed period in any circumstance. The question of
interest has to be considered along with the effect of permitting
the delayed proceeding to be heard and the necessity of
balancing the equities. The Supreme Court has held this
principle in the judgments referred to above.
11.The same position is seen from Ningappa Thotappa
Angadi
. In paragraph 7, the Supreme Court followed the
principle laid down in
Dhiraj Singh. It held that the right of the
claimant should not be defeated only because there was delay in
approaching the Court. At the same time, it held that the
equities can be balanced by denying interest for the period
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during which the claimant did not approach the Court.
12.In paragraph 10 of Ningappa Thotappa Angadi, the
Supreme Court stated:
“The appellant(s) are similarly placed claimants. They are,
thus, entitled to seek parity and claim the same amount of
fair and just compensation as has been awarded to the
other landowners. The appellant(s) are not entitled to
seek interest for the period for which they did not
approach this Court.”
13.Thus, the above judgments make a distinction between the
right to receive fair and just compensation and the right to claim
interest for the period of delay. A claimant may be entitled to
receive the same compensation which has been granted to other
similarly situated landowners. However, the claimant may still
be denied interest for the period during which the claimant had
not approached the Court.
14.The judgment in Suresh Kumar gives support to this
position. The Supreme Court considered the question of delay in
a land acquisition matter after referring to
Dhiraj Singh and
other decisions. In paragraph 9, the Court referred to
Huchanagouda and noticed that the delay had been condoned
while the equities were balanced. The Court stated:
“In other words, the appellants who approached the Court
with delay, would not be granted interest for such period.”
15.In paragraph 10, while considering the decision in Nimna
Dudhna Project
, the Supreme Court held that the acquiring body
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should not be made liable to pay interest for the period of delay
in filing the appeal.
16.In paragraph 13 of Suresh Kumar, the Supreme Court
condoned the delay and at the same time directed:
“However, for the delayed period that is being condoned,
the appellant shall not be entitled to any interest.”
17.The above direction leaves no ambiguity about the
principle. Condonation of delay does not by create right to
interest for the entire delayed period. The Court may condone
the delay so that the claimant's case can be considered on
merits. At the same time, interest for the period of delay may be
excluded. The claimants may contend that
Suresh Kumar did
not consider the question as to whether an undertaking can be
obtained under Section 5. The Supreme Court did not say that
the claimant must furnish an undertaking. But the material
question is whether, while granting the relief of condonation,
the Court can attach a condition excluding interest for the
delayed period. The decision in
Suresh Kumar holds that such
exclusion of interest is legally permissible.
18.In my view, the undertaking cannot be treated as the
source of the Court's power. The power to impose the condition
must exist independently in law. The Court imposes the
condition while exercising its discretion to condone delay. The
undertaking merely records the claimant's acceptance of that
condition. Merely because an undertaking is obtained, the Court
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does not acquire a jurisdiction which it otherwise does not
possess. Equally, the absence of an undertaking cannot by mean
that interest for the delayed period must necessarily be paid.
19.I, therefore, answer Question No. 1 partly in the
affirmative. In an appropriate land acquisition matter, the Court
can require the claimant to give an undertaking that interest on
the enhanced compensation shall not be claimed for the period
attributable to the delay. Such condition can be attached while
condoning the delay, for the purpose of balancing the equities.
However, the condition has to be reasonable and confined to the
actual period of delay.
20.Question No. 2 is whether such a condition can be
described as a condition imposed under Section 5 of the
Limitation Act.
21.Section 5 does not confer upon the Court a separate power
to reduce, alter or cancel statutory interest. Its principal purpose
is to permit a delayed appeal or application to be entertained
when sufficient cause is shown. Therefore, Section 5 by cannot
be treated as creating an independent power to change or
extinguish interest payable under Sections 28 or 34 of the Land
Acquisition Act. This does not mean that while considering an
application for condonation under Section 5, the Court must
shut its eyes to the effect of the delay. Once the Court decides to
exercise its discretion and permits a delayed proceeding to be
entertained, it can regulate the relief in accordance with the
principles laid down by the Supreme Court.
Dhiraj Singh, Nimna
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Dudhna Project, Ningappa Thotappa Angadi and Suresh Kumar
recognise exclusion of interest for the delayed period in
appropriate cases. Thus, the legal position would be that the
power to impose such condition is not power given by the
language of Section 5 to alter statutory interest. The condition is
attached to the discretionary relief of condonation. It is imposed
for balancing the equities and is supported by the principles held
by the Supreme Court in land acquisition matters. This
distinction is necessary because Section 5 cannot be used to
ignore or defeat mandatory provisions concerning interest under
the Land Acquisition Act. The Supreme Court in
Kapil Mehra v.
Union of India, (2015) 2 SCC 262
explained the position
relating to interest under Section 34. In paragraph 45 it held:
“45. Award of interest under Section 34 is mandatory
inasmuch the word used in the section is “shall”. The
scheme of the Act and the express provisions thereof
establish that the interest payable under Section 34 is
statutory.”
22.Regarding Section 28, the same paragraph states:
“The award of interest under Section 28 is discretionary
power vested in the court and it has to be exercised in a
judicious manner and not arbitrarily.”
23.Therefore, merely because the power to condone delay is
discretionary, the Court cannot proceed on the footing that
statutory interest can be cancelled whenever it considers such
course convenient or proper. Such an approach would go beyond
the statutory provisions. The exclusion of interest must have a
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clear connection with the delayed proceeding and with the
period during which the claimant did not approach the Court.
The difference between Sections 28 and 34 was explained in the
portions of
Gurpreet Singh v. Union of India, (2006) 8 SCC 457
reproduced in
Kapil Mehra. Section 28 relates to interest on the
excess compensation awarded by the Court. Section 34 relates to
statutory interest payable on compensation in the circumstances
mentioned in that provision. The two provisions operate
differently and for different purposes. While directing exclusion
of interest, the Court must identify the particular interest which
is being excluded. Accordingly, whenever such condition is
imposed, the order of the Court should state what interest is
being waived or excluded., the condition would relate to interest
on the enhanced compensation for the period during which the
claimant delayed the appellate proceeding. It should not be
understood as taking away every right to interest available to
the claimant. I therefore answer Question No. 2 in the following
manner. Section 5 does not empower the Court to alter statutory
interest. However, while exercising the discretionary power of
condonation under Section 5, the Court can attach a reasonable
condition excluding interest for the period of delay where the
facts justify such condition and where it is consistent with the
principles laid down by the Supreme Court. The condition is
thus attached to the relief of condonation. It is not an
independent power under Section 5 to alter the provisions
relating to interest.
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24.Question No. 3 relates to the circumstances in which such
direction concerning waiver or exclusion of interest can be
made. There cannot be one uniform rule applicable to every
land acquisition matter. The Court must first consider whether
the delay deserves to be condoned. If sufficient cause is found
and the delay is condoned, the Court can consider what should
be the consequence of that delay upon the claim for interest. A
proper case for imposing such condition may arise where
similarly situated landowners have received higher
compensation and the delayed claimant seeks the same benefit.
This was the position in
Dhiraj Singh. In paragraph 9, the
Supreme Court noticed that landowners whose lands were
acquired under the same notification had received Rs 200 per
square yard, whereas the appellants had received only Rs 101
per square yard. The Supreme Court therefore did not consider
it proper to deny the appellants the benefit of higher
compensation merely because they had approached the Court
late. In such a case, if the claimant is denied enhancement
altogether, there may be injustice because similarly situated
landowners would receive different amounts of compensation.
On the other side, if the claimant is granted interest for the
entire delayed period, the acquiring authority may have to pay
interest for a period during which the claimant had not
approached the Court. The Supreme Court therefore balanced
the two aspects. The benefit of enhancement was preserved,
while interest for the delayed period was excluded.
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25.This position is in line with paragraph 11 of Dhiraj Singh,
where the Supreme Court observed that land acquisition matters
require a different approach and that landowners should not be
deprived of reasonable compensation. At the same time,
paragraph 15 states:
“Equities can be balanced by denying the appellants'
interest for the period for which they did not approach the
court.”
26.The reason for the delay is relevant. Poverty, illiteracy,
ignorance or other genuine difficulties may explain why a
landowner could not approach the Court within time.
Dhiraj
Singh
and Huchanagouda show that substantial delay may be
condoned in such circumstances. However,
Suresh Kumar shows
that even where the delay was not personally attributable to the
landowner, interest for the delayed period could still be
excluded. Therefore, exclusion of interest for the period of delay
should not be viewed as punishment for the claimant. The Court
is considering the financial consequence of permitting a delayed
proceeding. Where the acquiring authority did not cause the
delay and the claimant did not approach the Court during that
period, the acquiring authority should not be made liable for
interest for such period.
27.The acquiring authority cannot be relieved from interest
for a period which has no connection with the claimant's delay.
Interest which had become payable before the delayed appeal
cannot be taken away merely because the appeal was filed late.
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Similarly, interest for a period after the claimant had properly
approached the Court cannot be denied merely because there
was an earlier period of delay. The order of the Court should
therefore mention the relevant dates. The Court should identify
the date from which the delay is to be considered and the date
on which the delayed proceeding was filed or otherwise brought
before the Court. It should then be made clear that interest is
being excluded only for that particular period and only upon the
enhanced compensation which arises from the delayed
proceeding. The same care should be taken if an undertaking is
obtained from the claimant. The claimant should not be asked to
state in general terms that he gives up "all interest". Such
wording would go beyond the principle held in the judgments.
The undertaking should be confined to interest on the enhanced
compensation for the specific period of delay.
28.The submission that the State should not be required to
bear the financial burden which arises only because of the
claimant's inaction has considerable force. If a claimant does not
approach the Court for several years and the acquiring authority
has not caused the delay, requiring the public exchequer to pay
interest for those years may create a liability which would not
have arisen if the claimant had approached the Court within
time. However, this consideration alone cannot become a
ground for taking away a statutory benefit. The fact that the
money is to be paid from public funds cannot permit the Court
to ignore the statute. Exclusion of interest must still be
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supported by the facts of the case and by the principles held by
the Supreme Court. The State can be protected from a liability
which arises only because of the claimant's delayed approach.
But a statutory right cannot be denied merely because the
payment is to be made from public funds. Therefore, the
submission that there should be "no burden on the exchequer ...
for the inaction of the claimant" cannot be treated as an absolute
rule applicable in every case. It is one of the circumstances
which may support balancing of the equities.
29.Question No. 4 concerns cross-objections and cross
appeals. In such cases, it has to be kept in mind that a cross-
objection is procedurally different from an appeal. Therefore,
the two cannot be treated as identical for all purposes.
30.Order XLI Rule 22 gives power to the appellate Court to
grant time for filing a cross-objection. This position was
explained by this Court in
State of Maharashtra v. Kalu Ladku
Mhatre
. In paragraph 6, the Court stated:
“Thus, under sub-rule (1) of Rule 22 of Order XLI of the
said, Code, a power has been conferred upon the Appellate
Court to extend the time to file Cross Objection. The
Appellate Court can grant such time as it may see fit to
allow.”
31.The Court held in paragraph 7 that Section 5 and Order
XLI Rule 22 operate in different fields. It observed:
“Sub-rule (1) of Rule 22 of Order XLI does not incorporate
the stringent requirement of establishing a sufficient
cause. Thus, a wide power to extend the time to file Cross-
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Objection has been vested in the Appellate Court.”
32.The same principle has to be considered with Mahadev
Govind Gharge
. In paragraph 61, the Supreme Court held that a
cross-objection is to be filed within one month from service of
notice, or within such time as the appellate Court may permit.
The Supreme Court stated:
“Since the provisions of Order 41 Rule 22 of the Code
provide for extension of time, the courts would normally
be inclined to condone the delay in the interest of justice
unless and until the cross-objector is unable to furnish a
reasonable or sufficient cause…”33.Therefore, in a delayed cross-objection, the principal
procedural power is found in Order XLI Rule 22. Section 5 need
not be applied in every such case. To this extent, the submission
of the claimants has substance. A delayed cross-objection cannot
in every situation be treated in exactly the same manner as
appeal governed by Section 5. But this difference does not mean
that the principle relating to interest becomes inapplicable to a
cross-objection. If a claimant files a cross-objection seeking
enhancement of compensation after a considerable period, the
same question would arise as to why the acquiring authority
should pay interest for the period during which the claimant did
not seek such enhancement.
34.I, therefore, hold that the same equitable principle can
apply to a delayed cross-objection. Where the Court permits a
delayed cross-objection to be filed or grants time for filing it, the
Court can direct that interest on the enhanced compensation
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shall not be payable for the period of delay in filing the cross-
objection, where the facts of the case justify such direction.
35.There is one important difference which must be kept in
view. In an appeal filed by the State or acquiring body, the
claimant may have come before the appellate Court because of
the appeal filed by the State or acquiring authority. The claimant
may file a cross-objection seeking enhancement. Therefore, the
entire period before filing the cross-objection cannot be treated
as delay on the part of the claimant. The actual facts have to be
examined. The Court should consider when the claimant
received notice of the appeal, when the claimant came to know
about the proceedings, whether the claimant participated in the
proceedings and how much time was taken in filing the cross-
objection. If the claimant knew about the appeal and
participated in the proceedings but nevertheless waited for a
considerable period before filing the cross-objection, the case for
excluding interest for that period would become stronger. If the
claimant had no reasonable knowledge or opportunity to file the
cross-objection earlier, such condition may not be justified.
36.Mahadev Govind Gharge shows the importance of
knowledge and participation in appellate proceedings. The
Supreme Court considered a case where the respondent had
appeared as a caveator and had participated at different stages
of the appeal. These procedural facts were relevant for
determining when the period for filing the cross-objection
commenced. The same approach has to be adopted here. The
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Court must first identify the actual period of delay before
deciding its financial consequence.
37.The principle stated in Pralhad v. State of Maharashtra,
(2010) 10 SCC 458 supports a balanced exercise of appellate
power. In paragraph 18, the Supreme Court held:
“The expression “order ought to have been made” would
obviously mean an order which justice of the case requires
to be made.”
38.At the same time, the Supreme Court made the following
qualification:
“Of course, this power cannot be exercised ignoring a legal
interdict or a prohibition clamped by law.”
39.Therefore, even the appellate power under Order XLI Rule
33 cannot be exercised contrary to a statutory prohibition. The
Court can mould the relief where the justice of the case requires
it, but such power has to remain within the limits of law. In the
present context, the Court can regulate the consequence of a
delayed proceeding in the manner held by the applicable law
and the binding judgments of the Supreme Court.
40.I, therefore, answer Question No. 4 in the affirmative,
subject to the above limitations. Where a claimant files a
delayed cross-objection or cross appeal seeking enhancement of
compensation in an appeal filed by the State or acquiring body,
the Court can apply the principle of excluding interest for the
period of delay where the facts justify such course. In the case of
a cross-objection, the principal procedural provision is Order XLI
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Rule 22. Where appropriate, the appellate power under Order
XLI Rule 33 may be considered. The actual period of delay must
first be determined. The condition must be reasonable and
confined to that period.
41.The fifth question is whether there is any fixed period of
delay after which the Court can impose a condition of waiver or
exclusion of interest. In my view, no such fixed period can be
prescribed. The judgments themselves show that no particular
number of days or years has been fixed by law. In
Dhiraj Singh,
substantial delay was condoned. The Supreme Court referred to
a case where delay of 3240 days had been condoned. In
Nimna
Dudhna Project
, there was a delay of five and a half years.
Suresh Kumar concerned substantial delay. Therefore, the law
does not provide that waiver of interest will follow after a
particular number of days or years. At the same time, it cannot
be said that every delay, however small, must result in exclusion
of interest. Mere existence of delay is not enough. The Court has
to consider the reason for the delay, the conduct of the claimant,
the length of the delay, the nature of the claim, whether
similarly situated landowners have received higher
compensation and the effect of the delay upon the acquiring
authority.
42.A short delay which is properly explained may not require
any condition regarding interest. A long delay may provide a
stronger reason for excluding interest. But even in a case of long
delay, the Court should not deny all interest. The exclusion
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should be confined to the period of delay and should have
reasonable relation with the circumstances which caused the
delay. In my view, therefore, the proper question is not merely
"how many days have passed". The Court should consider which
part of the claim for interest has arisen because the claimant did
not approach the Court during that period. It is that period
which can be considered for exclusion. The Court should
consider whether the claimant is seeking parity with other
landowners. If the claimant states that another landowner
whose land was acquired under the same notification has
received higher compensation and seeks the same benefit, the
Court should consider whether refusing the benefit merely
because of delay would result in unequal treatment. In such a
situation, exclusion of interest for the delayed period may
provide the proper balance. The claimant can receive the same
compensation without receiving an additional interest benefit
for the period during which the claimant did not approach the
Court.
43.This is the approach which can be seen in Dhiraj Singh.
The same principle was followed in
Ningappa Thotappa Angadi.
It was applied in
Nimna Dudhna Project and again stated in
Suresh Kumar. The common principle emerging from these
judgments is that a claimant should not be deprived of just and
fair compensation merely because the proceeding was delayed,
where the case otherwise deserves to be considered. At the same
time, the acquiring authority need not be made liable for
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interest for the period attributable to the claimant's delayed
approach. I therefore find no conflict between the submission
that interest under the Land Acquisition Act is statutory and the
submission that interest for the delayed period can be excluded.
These two positions can operate together when the nature of
interest and the period concerned are identified. The Court
cannot arbitrarily take away statutory interest. But where the
Supreme Court has held that the acquiring authority should not
bear interest for a period arising only because the claimant
approached the Court late, the Court can balance the equities by
excluding interest for that particular period.
44.I do not accept the submission that the undertaking
changes the character of statutory interest. It does not. The legal
basis for exclusion of interest must exist independently. An
undertaking cannot create a power in the Court which the law
does not provide. The undertaking merely records that the
claimant accepts the condition attached to the relief. The Court
must, therefore, first decide whether the condition is justified
and only thereafter can the undertaking be obtained. The
condition must be stated with clarity so that the claimant
understands what is being given up. The Court should,
therefore, avoid general expressions such as "all interest", "future
interest" or "all statutory benefits", unless the facts and the
applicable law require such direction. The proper course would
be to state that interest on the enhanced compensation shall not
be payable for the particular period during which the delayed
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appeal or cross-objection was not pursued. Such clarity is
necessary because Section 34 interest and Section 28 interest do
not operate in the same manner.
Kapil Mehra explains the
distinction between them. Section 34 provides for statutory
interest in the circumstances mentioned in that section. Section
28 concerns interest on excess compensation awarded by the
Court. The order should, therefore, identify the interest which is
being excluded and the period for which such exclusion is
directed.
45.Having considered the submissions of both sides and the
above legal position, I now proceed to answer the five questions.
(i) Question No. 1: Whether the Court can direct a party
to give an undertaking that they will waive their interest
as and by way of condition for condonation of delay in a
land acquisition matter/appeal?
Answer: In an appropriate land acquisition matter, the
Court can require the claimant to give an undertaking that
interest on the enhanced compensation shall not be
claimed for the period attributable to the delay, as a
condition attached to condonation of delay for balancing
the equities. Such condition shall be reasonable and
confined to the actual period of delay.
(ii) Question No. 2: Whether such condition can be
permitted to be imposed under Section 5 of the Limitation
Act, 1963?
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Answer: Section 5 of the Limitation Act, 1963 does not
confer an independent power upon the Court to alter
statutory interest. However, while exercising the
discretionary power to condone delay under Section 5, the
Court can attach a reasonable condition excluding interest
for the period attributable to the delay, where the facts
justify such condition and the same is consistent with the
principles laid down by the Supreme Court.
(iii) Question No. 3: In which situation can a direction be
given that the claimant's waiver would waive off interest,
since there is no burden on the exchequer of the State for
the inaction of the claimant for the period of delay?
Answer: Such direction can be given where the claimant is
permitted to pursue a delayed claim and the interest
claimed relates to the period during which the claimant
did not approach the Court. The principle has application
where the claimant seeks parity with similarly situated
landowners who have received higher compensation. The
acquiring authority should not be made liable for interest
for the period attributable to the claimant's delay.
However, the condition shall not extend beyond the actual
period of delay and shall not affect interest having no
connection with such delay.
(iv) Question No. 4: Whether, considering cross appeal or
cross objections filed by claimants in State's or acquiring
body's appeal, the same considerations for imposing
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condition of waiver of interest for the period of delay shall
apply?
Answer: The same equitable principle can apply to a
delayed cross-objection or cross appeal seeking
enhancement of compensation in an appeal filed by the
State or acquiring body. In the case of a cross-objection,
the principal procedural provision is Order XLI Rule 22 of
the Code of Civil Procedure, which permits the appellate
Court to grant time for filing the cross-objection. Where
justified by the facts, interest on the enhanced
compensation may be excluded for the period of delay in
filing the cross-objection. The Court shall first determine
the actual period of delay having regard to the date of
service or knowledge of the appeal, participation of the
claimant in the appellate proceedings and the
circumstances in which the cross-objection came to be
filed. The condition shall be reasonable and confined to
the period actually attributable to the claimant's delay.
(v) Question No. 5: What can be a reasonable period of
delay after which such condition to waive interest can be
imposed?
Answer: No fixed period of delay can be prescribed.
Waiver or exclusion of interest does not follow upon expiry
of any particular number of days or years. The Court shall
consider the length and reason for the delay, the conduct
of the claimant, the stage of the proceedings, the nature of
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the claim, the claim for parity with similarly situated
landowners, the circumstances in which the claimant
approached the Court and the financial consequence of the
delay to the acquiring authority. A longer delay may
furnish a stronger ground for excluding interest, but the
exclusion shall remain confined to the period of delay
attributable to the claimant.
46.The questions are answered accordingly.
(AMIT BORKAR, J.)
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