Case Note & Summary
The State of Maharashtra, through its Secretary and the Special Land Acquisition Officer, filed an appeal under the Land Acquisition Act, 1894, challenging a judgment and order dated 08.07.1996 passed by the reference Court. The reference Court had enhanced compensation for the acquisition of land and calculated interest on the enhanced amount at 9% per annum from 07.04.1981 to 06.04.1982 and at 15% per annum from 07.04.1982 to 08.12.1983. The State's sole ground of challenge was that the reference Court ought not to have included the amount of 30% solatium (Rs. 1485) while calculating interest, and should have granted interest only on the enhanced compensation of Rs. 4950. The High Court, however, noted that the issue was no longer res integra in light of its earlier decision in Vithal Vishwambharrao Deshmukh v. State of Maharashtra, 2004 (4) Mh.L.J. 600. In that case, it was held that claimants are entitled to interest on the enhanced amount of compensation including solatium from the date of the award passed by the Land Acquisition Officer till payment. Since the reference Court had correctly included solatium in calculating interest, the High Court found no infirmity in the impugned judgment. Consequently, the appeal was dismissed with no order as to costs. The Court also noted that costs of Rs. 3940 had been deposited by the appellants on 05.12.2005 as per an earlier order.
Headnote
A) Land Acquisition - Compensation - Interest on Enhanced Compensation Including Solatium - Land Acquisition Act, 1894, Sections 23(2) and 28 - The State challenged the reference Court's order granting interest on enhanced compensation including the amount of 30% solatium. The High Court held that the matter is no longer res integra in view of the judgment in Vithal Vishwambharrao Deshmukh v. State of Maharashtra, 2004 (4) Mh.L.J. 600, which held that claimants are entitled to interest on the enhanced amount of compensation including solatium from the date of the award passed by the Land Acquisition Officer till payment. The appeal was dismissed. (Paras 1-3)
Issue of Consideration
Whether the reference Court ought to have excluded the amount of 30% solatium while calculating interest on enhanced compensation under the Land Acquisition Act, 1894.
Final Decision
The appeal is dismissed with no order as to costs. The reference Court's order granting interest on enhanced compensation including solatium is upheld.
Law Points
- Interest on enhanced compensation includes solatium
- Land Acquisition Act
- 1894
- Section 28
- Section 23(2)
- res integra
Case Details
2010 LawText (BOM) (01) 163
First Appeal No. 170/2007
Mr. K. S. Dhote for appellants, Mr. Sanjay Deshpande for respondents
State of Maharashtra through its Secretary, Revenue & Forest Department, Mantralaya, Mumbai-32 and Special Land Acquisition Officer, Amravati
Ramchandra Paikaji Thakare and others (legal representatives of deceased claimants)
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Nature of Litigation
First appeal by the State against the judgment and order of the reference Court enhancing compensation for land acquisition and granting interest including on solatium.
Remedy Sought
The State sought to set aside the reference Court's order granting interest on the enhanced compensation including solatium, and to restrict interest only to the enhanced compensation amount.
Filing Reason
The State challenged the inclusion of solatium in the calculation of interest on enhanced compensation.
Previous Decisions
The reference Court passed judgment and order dated 08.07.1996 enhancing compensation and granting interest at 9% p.a. from 07.04.1981 to 06.04.1982 and at 15% p.a. from 07.04.1982 to 08.12.1983, including solatium in the principal amount.
Issues
Whether the reference Court erred in including the amount of 30% solatium while calculating interest on enhanced compensation under the Land Acquisition Act, 1894.
Submissions/Arguments
The State argued that the reference Court ought not to have taken into consideration the amount of 30% solatium of Rs. 1485 and should have granted interest only on the enhanced compensation of Rs. 4950.
The respondents (claimants) relied on the judgment in Vithal Vishwambharrao Deshmukh v. State of Maharashtra, 2004 (4) Mh.L.J. 600, which held that claimants are entitled to interest on the enhanced amount of compensation including solatium.
Ratio Decidendi
Claimants are entitled to interest on the enhanced amount of compensation including solatium from the date of the award passed by the Land Acquisition Officer till payment, as held in Vithal Vishwambharrao Deshmukh v. State of Maharashtra.
Judgment Excerpts
The matter is no longer res integra in view of judgment of this Court in Vithal Vishwambharrao Deshmukh ..vs.. State of Maharashtra; 2004 (4) Mh. L. J. 600.
It has been held in this judgment that the claimants are entitled to get interest on the enhanced amount of compensation including solatium from the date of award passed by Land Acquisition Officer till payment of enhanced compensation.
Procedural History
The reference Court passed judgment and order on 08.07.1996 enhancing compensation. The State filed First Appeal No. 170/2007 before the Bombay High Court, Nagpur Bench. The appeal was heard and dismissed on 07.01.2010.
Acts & Sections
- Land Acquisition Act, 1894: Section 23(2), Section 28
