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Supreme Court of India

SITA DEVI WD/O MUKAND LALversusSTATE OF HARYANA AND ANR.

Citation
1995 INSC 860
Decided
7 December 1995
Disposal
Disposed off

Holding

Under the Land Acquisition Act, 1894, a landowner is entitled to solatium at 30% of enhanced compensation and interest at 9% for one year and 15% thereafter on the enhanced compensation, but not to adjust these amounts against the principal compensation, nor to interest on solatium, nor to the additional amount under s.23(1‑A).

Summary

Sita Devi, widow of Mukand Lal, appealed against the State of Haryana challenging the award of compensation for land acquired under the Land Acquisition Act, 1894. The Collector’s award (26‑Nov‑1976) and the reference court’s award (10‑Jan‑1985) raised questions about entitlement to solatium, interest, and additional compensation under sections 23(1), 23(1‑A), 23(2) and 28. The Supreme Court held that the appellant is entitled to solatium at 30% of the enhanced compensation and interest at 9% for one year and 15% thereafter, as provided by s.23(2) and s.28, but she cannot adjust these amounts against the principal compensation under s.23(1), nor claim interest on solatium or the extra amount under s.23(1‑A). The appeal was disposed without costs.

Issues considered

  • Whether a landowner is entitled to solatium and interest on enhanced compensation under s.23(2) and s.28 of the Land Acquisition Act, 1894.
  • Whether interest and solatium can be adjusted against the principal compensation determined under s.23(1).
  • Whether interest on solatium is payable.
  • Whether the additional amount under s.23(1‑A) is payable.

Legislation cited

Subjects

Land acquisitionCompensationSolatiumInterestSection 23Section 28Enhanced compensationSupreme Court of India

Judgment

                   SITA DEVI WD/O MUKAND LAL                                   A .·
                                v.
                   STATE OF HARYANA AND ANR.

                           DECEMBER 7, 1995

             [K. RAMASWAMY AND B.L. HANSARIA, JJ.]                             B

        Land Acquisition Act, 1894 :

      Ss.23(1), 23(1-A), 23(2), 2S-Acquisition of lanli-Compensa-
tion-Solatium-Award made by Collector on 26.11.1976 and by reference           C
court on 10.1.1985-Held, land owner entitled to benefits under the ss.23(2)
and 28, but not to benefits under ss.23(1) and 23(1-A).

     The appellant filed the appeal against the judgment of the High
Court in the case arising out of the award of the Collector dated 26.11.1976
and the reference court dated 10.1.1985.                                       D
        Disposing of the appeal, this Court

      HELD : The appellant is entitled under s.23(2) of the Land Acquisi·
tion Act, 1894 to solatium at 30 per cent on enhanced compensation, and
interest at 9 per cent on enhanced compensation for one year from the date E
of taking possession of the land and 15 per cent thereafter till the date of
deposit into Court. But she not entitled to adjust interest and solatium
from the principal amount of compensation determined under s.23(1) and
deposited on the respective dates. She is neither entitled to interest on
solatium nor to additional amount under s.23(1-A). [326-D-E; C-D]
                                                                               F
      Prem NaJh Kapoor & Ors. v. National Fertilizers Corporation Ltd. &
Ors., [1996] 2 SCC 71, relied on.

        CIVIL APPELLATE JURISDICTION : Civil Appeal No. 11932 of
1995.
                                                                               G
     From the Judgment and Order dated 20.2.90 of the Punjab &
Haryana High Court in C.R. No. 2651 of 1989.

        S.M. Ashri for the Appellant.

        Mrs. Sheela Goel and AK. Goel for the Respondents.                     H
                                  325
    326                    SUPREME COURT REPORTS [1995] SUPP. 6 S.C.R.

A         The following Order of the Court was delivered :

          Leave granted.

           The award of the Collector under Section 11 is of the Land Acquisi-
    tion Act, 1894 is dated November 26, 1976. The award of the reference ·
B   Court under Section 26 is dated January 10, 1985. Therefore, the appellant
    is entitled to the payment of enhanced interest and solatium under Sections
    28 and 23(2). The controversy raised in this matter is covered by the recent
    judgment of this Court delivered on November 29, 1995 [C.A. @ SLP
    8494/87] in Prem Nath Kapoor & Ors. v. National Fertilizers Corporation Ltd.
    & Ors.
c
         In other respects, the appellant is not entitled to adjust interest and
  solatium from the principal amount of compensation determined under
  Section 23(1) and deposited on the respective dates. He is also not entitled
  to interest on solatium. Equally, the appellant is not entitled to additional
D amount under Section 23(1-A) at 12 cent per annum from the date of
  notification till date of award or of taking over possession, whichever is
  earlier. The appellant is entitled under Section 23(2) to solatium at 30 per
  cent on enhanced compensation. Equally, the appellant is entitled to
  interest at 9 per cent on enhanced compensation for one year from the
  date of taking possession of the land and 15 per cent thereafter till date of
E deposit into court.
          Appeal is accordingly disposed of. No costs.


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