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2003 Supreme(SC) 1506
SUPREME COURT OF INDIA
S.N. Variava, H.K. Sema, JJ.
State of M.P. - Appellant
Versus
Harishankar Goyal - Respondents
Civil Appeal No. 519 of 1997, With Civil Appeal Nos. 521-530 of 1997.
Decided On : 19-11-2003
The main legal point established in the judgment is the interpretation and application of the provisions of the Land Acquisition Act, specifically regarding the valuation of land, solatium, and interest.
Headnote:
Land Acquisition Act - Valuation of Land - Solatium and Interest
Fact of the Case:
The appeals were against the judgment of the High Court of Madhya Pradesh regarding the valuation of land under the Land Acquisition Act. The Reference Court had fixed the price at Rs. 10/- per square yard for most lands, and the High Court maintained this award but granted solatium and interest based on an earlier judgment of the Supreme Court.
Finding of the Court:
The court found that the valuation arrived at by the Reference Court and confirmed by the High Court was acceptable. However, the issue was regarding the grant of solatium and interest, which the court addressed based on the interpretation of the Land Acquisition Act.
Issues: The main issues were the application of solatium and interest under the Land Acquisition Act, specifically in light of a previous judgment of the Supreme Court.
Ratio Decidendi: The court held that the amended Section 23(2) of the Land Acquisition Act applied only to awards passed between specific dates and that the judgment of the High Court granting solatium at 30% could not be sustained. The court directed that solatium should be at 15% per annum as per the unamended Section 23(2). Additionally, the court clarified the application of interest under Section 28 of the Land Acquisition Act, directing that it should be at 6% per annum for the first year from taking possession and thereafter at 15% per annum.
Final Decision: The appeals were partly allowed, and the court directed the solatium and interest to be adjusted as per the interpretation of the Land Acquisition Act. No order as to costs was made.
ORDER :
S.N. Variava, J. - We have heard the parties.
2. All these appeals are against the judgment of the High Court of Madhya Pradesh dated 12th March, 1993. Notification under Section 4 was issued on 5th November, 1965. Section 6 Notification was issued on 25th November, 1965. An award came to be passed on 5th June, 1968. Under the Award the price was fixed, from Rs. 1,000/- to Rs. 1,500/- per bigha, in respect of different lands. All the claimants filed references. The Reference Court by its order dated 31st July, 1978 fixed price at Rs. 10/- per square yard in respect of all the lands, except 2 survey numbers. In respect of those two survey numbers, lower price was fixed as the claimants had claimed a lower price. In the appeal to the High Court, which was disposed of on 12th March, 1993, the award of Rs. 10/- per square yard was maintained. However the High Court, based on an earlier judgment of this Court, granted solatium @ 30% and also granted interest under Section 28 @ 15% p.a.
3. In our view, the valuation arrived at by the Reference Court and confirmed by the High Court cannot be faulted. The only question is regarding solatium and interest. A Constitution Bench of this Court in the case of Union of India And Another v. Raghubir Singh (Dead) By Lrs. Etc. reported in (1989) 2 SCC 754 has held that the amended Section 23(2) of Land Acquisition Act, 1894 can only apply to awards which have been passed by the Collector or the Reference Court between 30th April, 1982 to 24th September, 1984. The Constitution Bench has held that the amended Section 23(2) would apply only to appeals against such awards pending in the High Court or the Supreme Court. In view of this decision, the judgment of the High Court granting solatium @ 30% cannot be sustained. We, therefore, direct that the solatium shall be @ 15% p.a. as per the unamended Section 23(2).
4. As stated above, the High Court has granted interest at the rate of 15% under Section 28. Section 28 of the Land Acquisition Act, as it stood on the relevant date, provided that on the enhanced compensation interest shall be @ 6% p.a. for one year from the date of possession. Thereafter, interest is to be at the rate of 15% p.a. till payment in Court. Accordingly, we direct that interest under Section 28 shall be @ 6% p.a. for the first year from taking possession and thereafter @ 15% p.a.
5. The appeals stand partly allowed to the above extent. There will be no order as to costs.
