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CASE NO.: Appeal (civil)  64 of 2007

PETITIONER: RAKESH KUMAR JAIN & ANR

RESPONDENT: STATE OF U.P.THR.COLLECTOR & ANR

DATE OF JUDGMENT: 05/01/2007

BENCH: Dr.AR.LAKSHMANAN & ALTAMAS KABIR

JUDGMENT: J U D G M E N T

(Arising out of SLP(C) No.2502/2006)

Dr.AR.LAKSHMANAN, J.     

       Leave granted.         Heard Mr.Rajiv Dutta, learned senior counsel appearing on behalf  of the appellants and Mr.Rakesh Uttamchandra Upadhyay, learned  counsel appearing on behalf of the respondent No.2 (Agra Development  Authority).         This appeal is directed against the final judgment and order  dt.20.10.2005 passed by the High Court of Judicature at Allahabad in  Civil Misc.Writ Petition No.15903/2002 whereby the High Court has  dismissed the Writ Petition filed by the present appellants/land owners.   The appellants were the owners of land of Khasra No.111A and 112B  measuring 7-6 Bighas situated at Mauza Lakhanpur Tehsil and District  Agra.  The respondent No.2 without following the procedure for  acquiring the land under the Land Acquisition Act took forcible  possession of land in  question on 31.08.2000.  It is not in dispute that  respondent No.2 had not resorted to the provisions of Land Acquisition  Act.  Being aggrieved by the arbitrary action of respondent No.2, the  appellants filed an Original Civil Suit No.358 of 2000 before the learned  Civil Judge (Junior Division), Agra for injunction to restrain the  respondent No.2 from encroaching and trespassing or taking, in any  manner, the possession of the land, by raising any construction of  laying road on the land of the appellants.  The trial court issued notice  to the respondent Nos. 1 and 2.  After the service of notice, the Civil  Court passed an order of injunction for maintaining the status quo with  respect to the land in question and the said order was extended from  time to time. Since an interim order was passed, the respondent No.2  gave an undertaking to pay compensation to the appellants for their  land of Khasra Plot No.111 at Mauza Lakhanpur Tehsil and District Agra  and that the said compensation shall be paid within a period of two  months from the date of the said undertaking i.e. 31.08.2000.  This  undertaking was filed before the Vth Addl.Civil Judge, Junior Division,  Agra in Suit No.358 of 2000 which is marked as Annexure P-5 in the SLP  paperbook.  The Vth Addl.Civil Judge, Junior Division, Agra, on the  basis of the above undertaking passed an order on  02.09.2000  disposing of the injunction application on the basis of the undertaking  given by the respondent No.2 to pay compensation to the appellants.   According to the second respondent, the amount of compensation  comes to Rs.17,84,974.50 which they have calculated @ 225/- per  sq.meter.  The said amount, admittedly, as per the undertaking, was not  deposited within two months.  However, a cheque for the amount of  Rs.17,84,974.50   dt.14.02.2002 drawn on Union Bank of India, Agra  was  issued to the appellants.  However, the appellants  refused to the  receive the same since the said amount was not tendered as per the  undertaking.  While tendering the Cheque dt.14.02.2002, the respondent

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No.2 called upon the appellants to convey their consent for withdrawal  of Suit No.358/2000 and also signifying their consent in writing that they  will not prefer any other claim in this regard so that the payment made  by the cheque can be given to them.  Thereafter, the money was  deposited with the  Vth Addl.Civil Judge, Junior Division, Agra.  The  amount deposited is still lying in the said court.           The High Court while disposing of the Writ Petition filed by the  owners of land permitted the appellants herein to withdraw the entire  amount including interest, if any, which may have accrued thereon if the  same had been kept in some interest bearing account on furnishing the  certified copy of the said order before the court concerned.  The High  Court has also observed that insofar as the claim of the appellants  herein regarding interest on delayed payment is concerned, the same  has no basis as the Agra Development Authority (respondent No.2) had  prepared the cheque and offered the same to the appellants herein  within the stipulated period and had deposited the said amount with the  Civil Court in the pending suit.         We have carefully perused the Annexures and the judgment  rendered by the High Court and also heard the arguments advanced by  learned counsel for the parties.  In our opinion, the findings recorded by  the High Court in regard to the claim of interest by the appellants is  absolutely incorrect. Though the Agra Development Authority  (respondent No.2) had agreed to deposit the money within two months,  they had not done so.  Admittedly, they had issued a cheque after one  year and five months and when the cheque was refused to be received  by the land owners, they deposited the same in the Civil Court which  does not carry any interest.  Admittedly, the land owners have been  denied the beneficial use of the money.  In our opinion, the appellants  have wrongly deprived of the beneficial use of their money.  Therefore,  they are entitled to interest.  We, therefore, set aside the order passed  by the High Court and award simple interest at the rate of 18% p.a.  The  possession of the land was taken on 31.08.2000.  Therefore, the Agra  Development Authority (Respondent No.2) is liable to pay simple  interest @ 18% on the sum of Rs.17,84,974.50  from 31.08.2000 till the  date of actual payment.  In the meanwhile, the appellants are at liberty to  withdraw the sum of Rs.17,84,974.50  which is in deposit with the Civil  Court without furnishing any security and on production of a copy of  this Order.  The said court is directed to refund the said amount to the  appellants on production of copy of Order of this Court.           We direct that the Agra Development Authority (respondent No.2)  shall not take any further time and pay the interest on or before  10.02.2007.         We hope and trust that the Agra Development Authority  (respondent No.2) shall strictly and punctually obey this Order.         The appeal stands disposed of in the above terms.         No costs.