Full Bench of Bombay High Court has held that if the possession is taken before the Section 4(1)of the Land Acquisition Act is published and/or before the award is passed, the land owner would been titled for interest as per Section 34 necessarily from the date of passing of the award under Section 11 of the said Act, except in cases where the possession is taken in accordance with Section 17 of the said Act, and in that situation only, the provision of Section 34 of the said Act shall start operating from the date of possession.
Full Bench comprising of Justices B.P. Dharmadhikari, R.K.Deshpande and P.N Deshmukh answering the reference made to it, also summarised the position of law in this regard. The Bench observed as follows.
where possession is taken prior to issuance of notification under Section 4(1)of the said Act, the interest under Section 34 shall start running from the date of award only.
Read the Judgment here.