Section 23(1-A) of the Land Acquisition Act, 1894, as amended by Act 68 of 1984, is applicable to all pending cases and 12% interest is payable in all such cases irrespective of the date of publication of S. 4(1) notification or the date of award.

( 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 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, 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 solarium 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. Solarium of 15% on the market value was paid. In a recent enactment solarium and interest were 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 Sept. 24, 1984. The Act is now entitled "the Land Acquisition (Amendment) Act, 68 of 1984. " In the Amendment Act solarium 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 suffered 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, solarium 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 the 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 solarium of 30% is payable. Later the Supreme Court rendered opinion on that subject and with that opinion the controversy on solarium is at rest. The instant controversy is in what cases 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 S. 4 (1) notification was published earlier to Sept. 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 : "s. 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 S. 4 Sub-S (1) in respect of such land to the date of the award of the Collector or the date of taking possession of the land, whichever is earlier (Emphasis supplied ). Explanation :- In computing the period referred to in this Sub-Section, any period or periods