The Land Acquisition (Amendment) Act, 1984, Section 23 (1A) and 30, provide for the payment of 12% interest in all cases pending before the authorities and courts irrespective of the fact when Section 4 (1) notification was published or when the award was passed.

( 1 ) THE above 26 appeals relate to acquisition of lands. To preface the discussion in the cases, it is not irrelevant to recount sovereign powers of the State which include police power, power of taxation and power to acquire land, often expressed in Latin expression "eminent domain". In the old texts of jurisprudence sovereign power is recounted to include escheat. The modern text book writers on sovereignty consider escheat is more an incident of property than a subject of sovereignty.

( 2 ) IN the pre-constitution days eminent domain power affecting land was reduced in enactment of The LAND ACQUISITION ACT, 1894, 1 of 1894. The Act specifies the procedure to be followed when land is acquired. The Act also lays down how compensation is to be determined. Compensation is a word which includes the market value of the land and solatium paid to the landholders and sometimes the expression is used to include interest awarded to the landholder. The subject before the Full Bench pertains to interest payable to landholders. The rate of interest in the Act payable was 6% per annum. Solatium of 15% on the market value was paid. In a recent enactment solatium and interest was enhanced by amending the Act.

( 3 ) THE Parliament of India introduced a Bill on April 30, 1982. The bill received the assent of the President on September 2, 1984. The Act is now entitled "the Land Acquisition (Amendment) Act, 68 of 1984". In the amendment Act solatium is enhanced to 30%. The rate of interest is enhanced to 12%. The Objects and Reasons recite since acquisition cases are pending determination of the value of the land for long, and when value is finally determined the amount of compensation is "unrealistic and iniquitous" Therefore, the Parliament desired landholders be adequately compensated for loss sufferred by them. In numerous cases arising under the act 1 of 1894 all over the country this was the experience when land was acquired to meet the welfare activities of the State.

( 4 ) IT is seen often land acquired is the source of livelihood of landholder and over a decade the landholder is not paid the compensation when land is acquired. Therefore, to off set the inequities, solatium is increased. The rate of interest is enhanced at first in the Bill to 10%. When the Bill emerged finally from both Houses of Parliament, interest was varied to 12%. The word interest is not used in the Amending Act, instead additional amount is used, but the words mean interest is obvious in the context of the Act.

( 5 ) IMMEDIATELY after the enactment of Act 68 of 1984 two controversies arose before the State High Courts. There was a Full Bench decision of this Court to decide in what cases payment of solatium of 30% is payable later the Supreme Court rendered opinion on that subject and with that opinion the contorversy on solatium is at rest. The instant controversy is in what cues and when 12% interest is payable. Is it enforceable in all cases of acquisition which are pending consideration in Courts when the Amending Act is enforced, or 12% interest is payable only in some cases where Section 4 (1) notification was published on September 24, 1984 or after, or in cases award was passed on April 30, 1982 or after. The one view point which is adumbrated is 12% interest cannot be accorded in cases where Section 4 (1) notification was published earlier to September 24, 1984 or where the award under the act 1 of 1894 was passed before April 30,1982

( 6 ) THE above controversy is generated by two Sections. The debate and discussion in this Court indicated similar controversy arose before various state High Courts. The two Sections read as under : "section 23 (1a): In addition to the market value of the land, as above provided, the Court shall in every case award an amount calculated at the rate of 12% per annum on such market value for the period commencing on and from the date of the publication of the notification under Sec. 4 sub-section (1) in res