IMPORTANT POINT
Interest is payable on compensation and solatium.

JUDGMENT

Dr. Mukundakam Sharma, J. —

1. By this common judgment and order we propose to dispose of all the aforesaid appeals which are connected and interrelated, as would be indicated from the facts delineated hereinafter.

2. By issuing a notification under Section 4 of the Land Acquisition Act, 1894 [hereinafter referred to as “the Act”] on 21.02.1986, land connected with the present appeals, situated at Village Mora, Taluka Choriyasi, District Surat in the State of Gujarat, was proposed to be acquired for a public purpose, viz., setting up a Gas Based Thermal Power Project belonging to National Thermal Power Corporation [for short `NTPC’]. Subsequent to the aforesaid notification, a declaration under Section 6 of the Act was also issued by the State Government, by issuing a notification dated 29.04.1986 in respect of the said land. Possession of the said land was also taken over on 18.06.1986 and an award was passed by the Land Acquisition Officer, determining market value of the land and awarding compensation at ` 3.50 per square meter for the acquired land.

3. Aggrieved by the compensation awarded by the Land Acquisition Officer, the appellants-claimants filed applications under Section 18 of the Act seeking reference to the Court. Consequent to the said prayer, reference was made to the District Court. The Reference Court allowed the parties to present their evidence and on conclusion of the trial, passed a judgment and order dated 25.07.1997 enhancing the market value of the land and determining the compensation at ‘ 20 per square meter for the acquired land. It is also to be noted at this stage that the Reference Court further awarded interest at the rate of 9 per cent per annum for the first year of taking over the possession of the land in the year 1986, and at 15 per cent thereafter. The Reference Court also passed an order expressly recording that the interest should not be calculated on solatium.

4. Aggrieved by the aforesaid judgment and order passed by the Reference Court, the appellants-claimants filed appeals before the High Court under Section 54 of the Act seeking enhancement of compensation. Cross-appeals were also filed by the beneficiary, viz., NTPC. During the pendency of the said appeals in the High Court, an interim order was also passed in Civil Application by staying payment of the enhanced amount of compensation. Subsequently, when the appellants- claimants filed applications, the order of stay was vacated and the land owners were permitted to withdraw the entire amount deposited in Reference Court [inclusive of cost and interest] without security in full and final settlement of the claims.

5. The Division Bench of the High Court disposed of the aforesaid appeals by the impugned common judgment and order dated 15.09.2000 in which it partly allowed the First Appeal Nos. 5388-5408 of 1997 filed by the appellants-claimants and determined the market value of the acquired land of Village Mora, Taluka Choriyasi, District Surat on the relevant date, i.e., 21.02.1986, at the rate of ‘ 22 per square meter. The High Court, however, specifically ordered that no interest under Sections 28 and 34 of the Act on additional amount of compensation received under Section 23(1-A) & Section 23(2) of the Act would be paid to the claimants. By the same order, the High Court dismissed the First Appeal Nos. 742-792 of 1998 filed by the respondents.

6. The appellants-claimants being aggrieved by the aforesaid judgment and order passed by the High Court, filed Special Leave Petitions in this Court in which notices were originally issued but subsequently, the delay in filing the Special Leave Petition Nos. 21068-21070 of 2001 was condoned and leave was granted. So far as the other connected Special Leave Petitions were concerned, in those petitions also, leave was granted and accordingly all the petitions have been now registered as appeals.

7. We heard learned counsel appearing for the parties when the matters were placed be