ARESH @ ASHOK J. MEHTA (D) BY PROP. LRS. versus SPL. TAHSILDAR, BALGAUM KARNATAKA & ANR.

ARESH @ ASHOK J. MEHTA (D) BY PROP. LRS. versus SPL. TAHSILDAR, BALGAUM KARNATAKA & ANR.

Appellant is entitled to interest at 5.5% per annum w.e.f. 1.3.1974 on the compensation amount till payment, in view of the substantive clarification in Circular dated 24.11.1986 and legal principle in Satinder Singh; the respondents cannot deny interest for delayed payment, irrespective of mode (cash or National...

Source-derived case information.

Parties
Appellant: ARESH @ ASHOK J. MEHTA (D) BY PROP. LRS.; Respondent: SPL. TAHSILDAR, BALGAUM KARNATAKA; Respondent: Government of Karnataka
Jurisdiction
India
Judgment Date
11 March 2013
Procedural Posture
Civil Appeal / Appeal From Division Bench Decision of High Court of Karnataka
Outcome
Appeal allowed
Legal Topics
Karnataka Land Reforms Act, Compensation, Interest on Delayed Payment, Vesting of Land
Land Law Karnataka Land Reforms Act Compensation Interest on Delayed Payment Vesting of Land

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Parties

ARESH @ ASHOK J. MEHTA (D) BY PROP. LRS.

Appellant

SPL. TAHSILDAR, BALGAUM KARNATAKA

Respondent

Government of Karnataka

Respondent

Procedural Posture

Civil Appeal / Appeal From Division Bench Decision of High Court of Karnataka

Legal Issues

  1. 1 Whether appellant is entitled to interest for delayed payment of compensation amount paid in cash
  2. 2 Whether interest should be calculated as per State Government Circular dated 24.11.1986 or as a general rule

Ratio Decidendi

Appellant is entitled to interest at 5.5% per annum w.e.f. 1.3.1974 on the compensation amount till payment, in view of the substantive clarification in Circular dated 24.11.1986 and legal principle in Satinder Singh; the respondents cannot deny interest for delayed payment, irrespective of mode (cash or National Savings Certificate), and the High Court orders rejecting interest for the period prior to 1.3.1984 are set aside.

Court Disposition

Appeal allowed

Orders

  • Orders of Single Judge and Division Bench of Karnataka High Court set aside
  • Respondents directed to pay appellant interest at 5.5% per annum w.e.f. 1.3.1974 on compensation amount within three months