IMPORTANT POINT
The solatium and interest amount were held to be payable under the Act of 1953, and the solatium formed a component of the compensation itself, warranting interest. The interest on solatium was held to be payable from the date of judgment in Sunder v. Union of India; (2001) 7 SCC 211.

JUDGMENT :

1. The present appeal has been preferred against the judgment and award dated 14.03.2014 passed by the Civil Judge (Senior Division), Sriganganagar in Reference Case No.63/1980, whereby the reference in terms of Section 18 of the Rajasthan Land Acquisition Act, 1953 (hereinafter referred to as “the Act of 1953”) has been decided by the Land Acquisition Officer in favour of the claimants and the amount of compensation has been recalculated in terms of the directions issued by the High Court in S.B. Civil Misc. Appeal No.508/1996 (decided on 13.10.2009).

2. The facts of the case are that qua the acquisition of land for Suratgarh Military Station, an Award was passed by the Land Acquisition Officer, i.e. Sub Divisional Officer, Hanumangarh on 27.03.1980. In pursuance to the said Award, the award amount was deposited with the Collector and the same was even disbursed to the claimants. However, the land owners preferred an application under Section 18 of the Act of 1953 with the prayer for making a reference against the award passed by the Land Acquisition Officer.

3. The reference was hence made and vide order dated 23.01.1995, the Civil Judge, while deciding the reference, although maintained the compensation amount as awarded by the Land Acquisition Officer but enhanced the amount of solatium to 30% of the market value from 10% and also awarded interest @ 9% per annum for the first year and @ 15% per annum for the subsequent years.

4. The said order dated 23.01.1995 was challenged by the Union of India before the High Court in S.B. Civil Misc. Appeal No.508/1996. Vide order dated 13.10.2009, order dated 23.01.1995 was set aside and the matter was remanded back to the Reference Court for recalculation.

5. The Reference Court, after remand, vide order dated 14.03.2014, recalculated the amount and maintained the earlier order to grant solatium @ 30% of the market value and interest @ 9% per annum for the first year and @ 15% per annum for the subsequent years. It is the said order dated 14.03.2014, which is under challenge in the present appeal.

6. Three grounds had been raised in the appeal firstly, the solatium amount as well as the interest amount could not have even been granted in terms of Act of 1953 as the said Act did not provide for any such head/grant. The acquisition in question of the year 1977-1978, would definitely be governed by the Act of 1953 and not the amended Act of the year 1984 and hence, the rate of solatium and the rate of interest as granted by the Reference Court could not have been granted in absence of any provision. Secondly, the solatium, even if granted, cannot be made a component of the compensation itself and hence no interest would be payable on the same. Lastly, even if it is held that the interest shall be payable on the solatium amount, the same would be payable only from the date of judgment of Sunder v. Union of India; (2001) 7 SCC 211 and not for any period prior to that.

7. So far as the first ground to the effect that the solatium amount as well as interest amount could not have been granted as the Act of 1953 did not provide for the same is concerned, learned counsel for the appellant fairly submitted that the issue is no more res integra as the same has been settled by the Hon’ble Apex Court in the matter of Union of India and another v. Raghubir Singh(dead) by LRs etc., (1989) 2 SCC 754. Learned counsel therefore did not press the said ground and hence, this Court is not required to go into the said issue.

8. The second issue - Whether the solatium, even if, granted, be a component of the compensation amount itself and hence interest on the same would also be awarded, also rests decided by the Hon’ble Apex Court in Sunder’s case (supra), wherein it has been held that the amount of solatium provided under Section 23(2) of the Act of 1953 forms an integral and statutory part of the compensation awarded to the land owner and hence the interest would be payable on the compensation awarded