It would be on gross enhanced amount minus amount paid earlier
Calculating interest under section 28 and section 34 of the LA Act
We have been awarded enhanced compensation by the High Court recently. Earlier we had been paid a certain amount in the initial award by the LAO which was subsequently enhanced by the city civil court and subsequently by the high court Question now is whether while computing total compensation claim amount, interest under section 28 / 34 is to be calculated on the gross enhanced compensation or on the gross enhanced compensation minus the amount paid earlier. Also, can we under any circumstances appropriate amount paid earlier first towards principal and then towards interest
Asked 3 years ago in Property Law
Religion: Other
7 Answers
The interest would be calculated on the total amount of compensation awarded now, which includes the enhanced amount and on the whole it is termed as the compensation.
The amount already paid would be deducted and the balance amount would be paid, however the interest amount would be calculated on the total amount from the date of original award after deducting the interest already paid to the initial amount.
Your advise seems to be against the Supreme Court Gurpreet Singh case. Can you clarify again please
Asked 3 years ago
claimant is entitled to interest under both Sections of the Land Acquisition Act, 1894 i.e. Section 28 and Section 34 and that has to be awarded from the date of award till realisation of the compensation amount.
What is the verdict are you referring to?
If the verdict says otherwise, you can compare your situation to that of the one that had been discussed in that particular case, or at least you could have sent the link what you refer to instead of bluntly mentioning about the name of one part of supreme court case.
There is neither the case number nor the date of decision in the post what you have subsequently made.
If you really serious about more proper opinion, you can revert with the details of the case referred to and your actual problem
Dear client authorise the grant of interest on solatium as well.” Thus solatium means an integral part of compensation, interest would be payable on it. Sec. 34 postulates award of interest at 9 per cent per annum from the date of taking possession only until it is paid or deposited. It is a mandatory provision.
- Under Section 28, interest is awarded on excess amount ordered by the Court at 9 per cent per annum from the date on which he took possession till the date of payment.
- Where such excess ordered is paid in to Court after expiry of one year from the date of possession, Court may award interest at the rate of 15 per cent.
- Under Section 23 (1-A), the land owner is entitled the interest at the rate of 12 per cent from the date of publication of notification under Section 4 to date of award or date of possession.
- Section 34 is applied when the compensation is not paid on or before taking possession. Collector is bound to pay interest from the date of possession till is actually paid.
- Exact calculation can be provided on perusal of order of HC.
It will be after deducting amount paid earlier
