Section 20H: Deposit and payment of amount

1[20H. Deposit and payment of amount.– (1) The amount determined under section 20F shall be deposited by the Central Government, in such manner as may be prescribed by that Government, with the competent authority before taking possession of the land.

(2) As soon as may be after the amount has been deposited under sub-section (1), the competent authority shall on behalf of the Central Government pay the amount to the person or persons entitled thereto.

(3) Where several persons claim to be interested in the amount deposited under sub-section (1), the competent authority shall determine the persons who in its opinion are entitled to receive the amount payable to each of them.

(4) If any dispute arises as to the apportionment of the amount or any part thereof or to any person to whom the same or any part thereof is payable, the competent authority shall refer the dispute to the decision of the principal civil court of original jurisdiction within the limits of whose jurisdiction the land is situated.

(5) Where the amount determined under section 20F by the arbitrator is in excess of the amount determined by the competent authority, the arbitrator may award interest at nine per cent. per annum on such excess amount from the date of taking possession under section 20-I till the date of actual deposit thereof.

(6) Where the amount determined by the arbitrator is in excess of the amount determined by the competent authority, the excess amount together with interest, if any, awarded under sub-section (5) shall be deposited by the Central Government, in such manner as may be prescribed by that Government, with the competent authority and the provisions of sub-sections (2) to (4) shall apply to such deposit.]

1. Ins. by Act 11 of 2008, s. 3 (w.e.f. 31-1-2008)

Simplified Explanation

Section 20H of the Railways Act, 1989 outlines the procedure for the deposit and payment of compensation to those entitled when land is acquired for a railway project. This ensures that the compensation process is carried out efficiently and transparently.

Key Provisions:

1. Deposit of Compensation Amount:
   • The amount determined under Section 20F (compensation for land acquisition) must be deposited by the Central Government with the competent authority before taking possession of the land.
   • The Central Government must deposit the amount in a manner prescribed by the government.
2. Payment of Compensation:
   • Once the amount is deposited, the competent authority is responsible for disbursing the compensation to the person(s) entitled to receive it.
   • The authority will pay the compensation to the person or persons who have legitimate claims to the compensation.
3. Disputes Over Entitlement:
   • If multiple individuals claim to be entitled to the compensation, the competent authority will decide who is entitled to receive the payment.
   • If any dispute arises regarding the apportionment of the compensation or to whom it should be paid, the competent authority is required to refer the dispute to the principal civil court of original jurisdiction (the court where the land is situated).
4. Interest on Excess Compensation:
   • If an arbitrator determines that the compensation amount is higher than the amount originally determined by the competent authority (under Section 20F), the arbitrator can award interest at a rate of 9% per annum on the excess amount.
   • The interest will be calculated from the date the government took possession of the land under Section 20I until the date the excess amount is deposited.
5. Deposit of Excess Compensation:
   • If the arbitrator’s amount exceeds the initial compensation determined by the competent authority, the Central Government is required to deposit the excess amount, along with any interest, with the competent authority.
   • The process outlined in sections (2) to (4) will then apply to the deposit of this excess amount, ensuring the proper distribution to those entitled.

Implications:

• Transparency: The deposit of compensation with the competent authority before possession is taken ensures transparency in the acquisition process, reducing the potential for disputes over the amount or timing of payments.
• Dispute Resolution: In cases of disagreement over who is entitled to the compensation, the involvement of the civil court guarantees that the disputes are resolved through a formal legal process, ensuring fairness.
• Interest on Excess Compensation: The provision for interest on excess compensation offers additional protection to landowners and others entitled to compensation, compensating them for any delays in the disbursement process, particularly if the compensation amount is revised by an arbitrator.
• Arbitrator’s Role: The arbitrator’s ability to determine a higher compensation amount, along with awarding interest, enhances fairness in the compensation process, especially if the initial valuation was disputed.

Conclusion:

Section 20H ensures that the compensation process for acquired land is handled in a structured manner, addressing the deposit, payment, and potential disputes over entitlement. The clear role of the competent authority in disbursing the compensation and the provision for resolving disputes through the civil court ensure that landowners are fairly compensated. The provision for interest on excess compensation further protects the interests of landowners, ensuring they are adequately compensated for delays in payment.