Case Note & Summary
The dispute arose from land acquisition proceedings initiated by the State of Haryana under the Land Acquisition Act, 1894. Notification under Section 4 was issued on 7 October 1971. The Land Acquisition Collector awarded compensation at Rs. 200 per marla. The respondent, the land owner (since deceased through legal representatives), sought a reference under Section 18 and the District Judge, Gurgaon, by award dated 10 October 1978, enhanced compensation to Rs. 10 per square yard. The respondent appealed to the High Court; a learned Single Judge by judgment dated 28 January 1981 enhanced compensation to Rs. 12 per square yard. On further appeal, a Division Bench of the High Court by judgment dated 25 March 1985 enhanced compensation to Rs. 15 per square yard and also granted solatium at 30% on the increase of Rs. 3 per square yard, besides interest at 9% per annum for one year from date of possession and 5% per annum thereafter till payment. The State of Haryana appealed to the Supreme Court. Notice issued by the Supreme Court was limited to the question of solatium and interest only. Appellants' counsel submitted that solatium under Section 23(1-A), introduced by the Amending Act, could not be granted because the Collector's award and the District Judge's reference decision were both prior to 1982, placing reliance on K.S. Paripoornan v. State of Kerala & Ors. (1994) 5 SCC 593. It was further submitted that interest at 9% and 15% was not admissible for pre-1982 awards, relying on K.S. Paripoornan (II) v. State of Kerala & Ors. (1995) 1 SCC 367. The Supreme Court found the submissions well-founded, held that the respondents were not entitled to any solatium, and that the rate of interest would be confined to 6% per annum only. Accordingly, the appeal was accepted in part, the High Court judgment dated 25 March 1985 was set aside to that extent, and the appeal was disposed of with no order as to costs.
Headnote
A) Land Acquisition - Solatium - Non-applicability of solatium for pre-1982 awards - Land Acquisition Act, 1894, Section 23(1-A) - Collector's award made on 7.10.1971 and District Judge's reference decision on 10.10.1978 both pre-dated the 1982 amendment introducing solatium; High Court Division Bench granted 30% solatium on enhanced compensation; Supreme Court held that in view of K.S. Paripoornan v. State of Kerala & Ors. (1994) 5 SCC 593, solatium under Section 23(1-A) could not be granted for such pre-1982 awards - Held that respondents were not entitled to any solatium.
B) Land Acquisition - Interest on Compensation - Rate of interest for pre-1982 awards confined to 6% per annum - Land Acquisition Act, 1894 - High Court awarded interest at 9% for first year and 5% thereafter on enhanced compensation; appellant argued that because Collector's award and District Judge's reference decision were prior to 1982, interest at 9% and 15% was not admissible, relying on K.S. Paripoornan (II) v. State of Kerala & Ors. (1995) 1 SCC 367; Supreme Court accepted submission and held rate of interest shall be confined to 6% per annum only - Held that modified interest rate applies.
Issue of Consideration
Whether the respondent was entitled to solatium at 30% under Section 23(1-A) of the Land Acquisition Act, 1894, and whether interest at 9% and 15% was admissible where the Collector's award and District Judge's reference decision were made prior to 1982.
Final Decision
Appeal partly allowed; judgment and order of the High Court dated 25.3.1985 set aside to the extent of solatium and interest; respondents held not entitled to any solatium; rate of interest confined to 6% per annum; appeal disposed of with no order as to costs.
Law Points
- Solatium under Section 23(1-A) of Land Acquisition Act
- 1894 not admissible when Collector's award made prior to 1982
- Interest for pre-1982 awards confined to 6% per annum
- K.S. Paripoornan v. State of Kerala (1994) 5 SCC 593 applied
- K.S. Paripoornan (II) v. State of Kerala (1995) 1 SCC 367 applied
Case Details
1997 LawText (SC) (09) 11
A.S. Anand, M. Srinivasan
Prem Malhotra, Ravindra Bana
Shri Om Prakash Bhasin (D) by L.Rs. & Ors.
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Nature of Litigation
Civil appeal against High Court judgment relating to compensation for land acquired under the Land Acquisition Act, 1894.
Remedy Sought
State of Haryana (appellant) sought to set aside the High Court's grant of solatium and higher interest to the respondent, with notice limited to the question of solatium and interest only.
Filing Reason
High Court Division Bench enhanced compensation to Rs. 15 per square yard, granted 30% solatium on the increase, and awarded interest at 9% for first year and 5% thereafter; appellant contended these were illegal for pre-1982 awards.
Previous Decisions
Land Acquisition Collector awarded Rs. 200 per marla; District Judge, Gurgaon, on 10.10.1978 enhanced to Rs. 10 per square yard; Single Judge of High Court on 28.1.1981 enhanced to Rs. 12 per square yard; Division Bench on 25.3.1985 further enhanced to Rs. 15 per square yard and granted solatium and interest, now challenged in Supreme Court.
Issues
Whether the respondent was entitled to solatium at 30% under Section 23(1-A) of the Land Acquisition Act, 1894 when the Collector's award was made on 7.10.1971 and the District Judge's reference was decided on 10.10.1978, both prior to 1982.
Whether the respondent was entitled to interest at 9% for first year and 15% thereafter, or whether interest should be confined to 6% per annum for pre-1982 awards.
Submissions/Arguments
Appellant's counsel submitted that solatium under Section 23(1-A) introduced by the Amending Act could not be granted in view of K.S. Paripoornan v. State of Kerala (1994) 5 SCC 593 because the Collector's award and reference decision were pre-1982.
Appellant's counsel further submitted that interest at 9% and 15% was not admissible since the award was made prior to 1982 and the District Judge disposed of the reference prior to 1982; reliance placed on K.S. Paripoornan (II) v. State of Kerala (1995) 1 SCC 367.
Ratio Decidendi
Solatium under Section 23(1-A) of the Land Acquisition Act, 1894, introduced by the Amending Act, is not admissible where the Collector's award made on 7.10.1971 and the District Judge's reference decision on 10.10.1978 preceded 1982, following K.S. Paripoornan v. State of Kerala (1994) 5 SCC 593. Interest for pre-1982 awards is confined to 6% per annum, and not 9% or 15%, following K.S. Paripoornan (II) v. State of Kerala (1995) 1 SCC 367.
Judgment Excerpts
Both the issues are squarely covered by the judgments, noticed above, we, therefore, accept this appeal in part and set aside the judgment and order of the High Court, dated 25.3.1985 and hold that the respondents are not entitled to grant of any solatium and that the rate of interest shall be confined to 6% per annum only.
Mr. Prem Malhotra, learned counsel for the appellants submits that the Award of solatium @ 30% under the provisions of Section 23(1-A) of the Act, as introduced by the Amending Act, could not have been granted to the respondent in view of the judgment of this Court in K.S. Paripoornan vs. State of Kerala & Ors. (1994 (5) SCC 593).
It is also submitted that since the Award was made prior to 1982 and even the District Judge disposed of the reference under Section 18 of the Act prior to 1982, interest @ 9% and 15% was not admissible to the respondent.
Procedural History
Notification under Section 4 of Land Acquisition Act issued on 7.10.1971; Collector made Award at Rs. 200 per marla; respondent sought reference under Section 18; District Judge Gurgaon by award dated 10.10.1978 enhanced compensation to Rs. 10 per square yard; respondent appealed to High Court; Single Judge on 28.1.1981 enhanced to Rs. 12 per square yard; respondent appealed to Division Bench; Division Bench on 25.3.1985 enhanced to Rs. 15 per square yard and granted solatium and interest; State of Haryana appealed to Supreme Court; Supreme Court limited notice to question of solatium and interest only; by order dated 25.9.1997 allowed appeal in part, denied solatium, restricted interest to 6% per annum, with no order as to costs.
Acts & Sections
- Land Acquisition Act, 1894: Section 4, Section 18, Section 23(1-A)
