FOOD CORPORATION OF INDIA, KAKINADA REP. BY DISTRICT MANAGERversusYARLAGADDA NARAYANA APPARAO AND ORS.

                         [2008] 13 S.C.R. 600                          ,,....     '




A         FOOD CORPORATION OF INDIA, KAKINADA
               REP. BY DISTRICT MANAGER
                                   v.
        YARLAGADDA NARAYANA APPARAO AND ORS.
             (Civil Appeal Nos.5725-5726 of 2008)
B                      SEPTEMBER 17, 2008
     [DR. ARIJIT PASAYAT AND HARJIT SINGH BEDI, JJ.]
         Land Acquisition Act, 1894:

c        s.23(2) - Solatium - Liability to pay- Held: Matter needs
    re-consideration in the light of observation in Gurpreet singh's
    case - Remitted to High Court.
         Gurpreet Singh v. Union of India (2006) 8 SCC 457 -

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    relied on.
          Prem Nath Kapur and Anr. v. National Fertilizer Corpn.
                                                                           ..,    .
    of India Ltd. and Ors. (1996) 2 SCC 71 ; Sunder v. Union of
    India (2001) 7 SCC 211 - referred to.
                          Case Law Reference
E        (1996) 2 sec 11         referred to           Para 2
         (2001) 1 sec 211        referred to           Para 2
         (2006) s sec 457        relied on             Para 3
         CIVIL APPELLATE JURISDICTION : Civil Appeal No.                         ~ '"
F 5725-5726 of 2008

          From the final Judgment and Order dated 30.3.2005 of
    the High Court of Judicature, Andhra Pradesh at Hyderabad in
    Civil Revision Petition Nos. 5048 of 2001
G        Amrendra Sharan, ASG, Sukumar Pattajosh, Arvind Kumar
    Tiwary, Rakesh K. Singh and Sudarsh Menon for the Appellant.
                                                                                 + •
          B. Kanta Rao, Krishnamurthy, B. Sriram and Sudha Gupta
    for the Respondents.
H                                 600
                       FOOD CORP OF INDIA, KAKINADA REP BY DIST. MANAGER       601
 .•       --.J             v. YARLAGADDA NARAYANAAPPARAO & ORS.

'.                    The Judgment of the Court was delivered by                     A
                      DR. ARIJIT PASAYAT, J. 1. Leave granted.
                        2. Challenge in these appeals is to. the judgment of the
                 learned Single Judge of the Andhra Pradesh High Court allow-
            ).   ing the Civil Revision Petition Nos.5048 and 5088 of 2001, filed B
                 by the present respondent no.1 in each case. In the civil revi-
                 sion petition itwas indi<'.ated that th_e proforma respondents in
                 these appeals were not necessary parties. The basic dispute
                 relates to liability to interest ori the amount envisaged under
                 Section 23(2) of the Land Acquisition Act, 1894 (in short the c
                 'Act') conveniently called "solatium". The High Court allowed the
                 civil revision petitions being of the view that the decision of this
                 Court in Prem Nath Kapur arid Anr. v. National Ferlilizer Corpn.
                 of India Ltd. and Ors. (1996 (2) sec 71) was overruled by the
                 Constitution Bench of this Court in Sunder V. Union of India
     ..    ~     (2001 (7) sec 211) .
                                                                                      D

                      3. Mr. Amrendra Sharan, Additional Solicitor General, sub-
                 mitted that both Prem Nath's case (supra) and Sunder's case
                 (supra) were considered by a Constitution Bench of this Court
                 in Gurpreet Singh v. Union of India (2006 (8) SCC 457). It was E
                 submitted that view in Prem Nath's case (supra)was stated to
                 be correct one in the said case. Therefore, the view of the High
                 Court cannot be maintained.
                       4. In response, learned counsel for the respondent sub-
--1              mitted that the High Court's judgment does not suffer from any      F
                 infirmity to warrant interference.
                       5. In Gurpreet Singh's case (supra) this Court observed,
                 inter alia, as follows:
                      "53. Thi.ls, on the whole, we are satisfied that the essential G
                      ratio jn Prem Nath Kapur (1996 (2) SCC 71) on
                      appropriation being at different stages is justified though
     ;. *             if at a particular stage there is a shortfall, the awardee-
                      decree-holder would be entitled to appropriate the same
                      on the general principle of appropriation, first towards H
    602       SUPREME COURT REPORTS                  [2008] 13 S.C.R.
                                                                           ~          .
A         interest, then towards costs and then towards the principal,
          unless, of course, the deposit is indicated to be towards
          specified heads by the judgment-debtor while making the
          deposit intimating the decree-holder of his intention. We,
          thus, approve the ratio of Prem Nath Kapur on the aspect
B         of appropriation.
          54. One other question also was sought to be raised and
          answered by this Bench though not referred to it.
          Considering that the question arises in various cases
          pending in courts all over the country, we permitted the
c         counsel to address us on that question. That question is
          whether in the light of the decision in Sunder (2001 (7)
          sec 211), the awardee/decree-holder would be entitled
          to claim interest on solatium in execution though it is not

D
          specifically granted by the decree. It is well settled that an
          execution court cannot go behind the decree. If, therefore,
          the claim for interest on solatium had been made and the
                                                                           ..,,       .
          same has been negatived either expressly or by necessary
          implication by the judgment or decree of the Reference
          Court or of the appellate court, the execution court will
E         have necessarily to reject the claim for interest on solatium
          based on Sunder on the ground that the execution court
          cannot go behind the decree. But if the award of the
          Reference Court or that of the appellate court does not
          specifically refer to the question of interest on solatium or
F         in cases where claim had not been made and rejected                 r·-
          either expressly or impliedly by the Reference Court or the
          appellate court, and merely interest on compensation is
          awarded, then it would be open to the execution court to
          apply the ratio of Sunder and say that the compensation
          awarded includes solatium and in such an event interest
G
          on the amount could be directed to be deposited in
          execution. Otherwise, not. We also clarify that such interest
          on solatium can be claimed only in pending executions               ...     ~

                                                                                  '
          and not in closed executions and the execution court will
          be entitled to permit its recovery from the date of the
H
           FOOD CORP. OF INDIA, KAKINADA REP BY DIST MANAGER 603
     v. YARLAGADDA NARAYANAAPPARAO & ORS. [DR. ARIJIT PASAYAT, J.]

            judgment in Sunder (19-9-2001) and not for any prior A
            period. We also clarify that this will not entail any
            reappropriation or fresh appropriation by the decree•
            holder. ihis we have indicated by way of clarification also
            in exercise of our power under Articles 141 and 142 of the
1~          Constitution of India with a view to avoid multiplicity of B
            litigation on this question."
            6. In view of what has been stated above, it would be ap-
     propriate for the High Court to consider the matter afresh in
     view of the aforesaid quoted observations of this Court. Accord-
     ingly, the matter is remitted to the High Court for fresh consider- C
     ation.
          7. The appeals are disposed of without any order as to
     costs.
     D.G.                                      , Appeal disposed of.    D




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