The solatium provided for under Section 23(2) of the Land Acquisition Act, 1894 forms an integral and statutory part of the compensation awarded to a landowner. Interest is payable on the compensation awarded and not merely on the market value of the land.

S.S.SANDHAWALIA, J.

1. This set of eleven regular first appeals - all preferred by the State of Haryana (with cross-objections in nine) admittedly give rise to identical issues of law and fact and are, therefore, being disposed of by this single judgement.

2. By a notification under S.4 of the Land Acquisition Act published in the Government Gazette on the 1st of May, 1973, an area of 70 acres in all was sought to be acquired for the public purpose of the construction of the Hissar bye-pass on National Highway No. 10 connecting Delhi, Hissar, Sirsa and Fazilka. In the acquisition proceedings, that followed, the Collector rendered his award on the 24th of Dec. 1973, wherein he classified the land into two blocks on the basis of its proximity or otherwise from the village of Sat Rod and awarded compensation at the rate of Rs. 6480/- per acre for the land falling in A block and at the rate of Rs. 5000/- per acre for the remaining land in B block. Feeling dissatisfied with the compensation awarded the landowners preferred a number of references which were all consolidated for trial by the learned Additional District Judge, Hissar. The solitary issue framed therein on merits was with regard to the compensation to be awarded to the landholders and it is the common case that in this set of appeals also this very question is the only one which falls for determination.

3. On behalf of the landowner claimants as many as it instances of sale transactions in the vicinity Exhibits P.1 to P.11 were brought on record. In rebuttal the respondent-State relied on copies of registered sale deeds and mutations R.W. 1/2 to R.W. 1/13 being instances of transfers of land in the adjoining areas. Apart from these, oral testimony of witnesses was also adduced. The learned Additional District Judge on a consideration of the whole record enhanced the compensation in block A to Rs. 9000/- and that of block B to Rupees 6000/- per acre. Apart from awarding the statutory solatium at the rate of 15 per cent he also directed that interest at the rate of 6 per cent be paid to the landowners on the compensation inclusive of this solatium.

4. Mr. U.D. Gaur, learned Advocate General for the State of Haryana had been rather lukewarm in the State Appeals. The first challenge raised was with regard to the categorisation of land into two blocks. Counsel contended with plausibility and cogency that no adequate reason had been given for the creation of two belts either by the Collector or by the learned Additional District Judge. It was, therefore, submitted that this classification be struck down and the land be assessed at the uniform rate as given in block B .

5. There is some merit in the aforesaid argument though no benefit therefrom accrues to the appellant-State. The only fragmentary reason given by the Collector for creating two blocks is the passing observation that part of the land was nearer to village Sat Rod and the rest was away therefrom. On that basis he seems to have drawn an arbitrary line and awarded compensation at relatively disparate sates for the two categories. What particularly calls for attention herein is that the land was not being acquired in a compact squarish or rectangular block but in the shape of a long strip for the purpose of a Highway stretched out to skirt the town of Hisssr over a long distance. In such a situation the relatively narrow strip of land which fell for acquisition over a long distance cannot possibly be evaluated the basis of its mere proximity to village Sat Rod. The Collector gave no adequate reason and what is significant is that the learned Additional District Judge did not even remotely advert to this aspect apparently because neither of the parties seemed to have raised the issue. Having seen the site plans and the lay-out of the bye-pass and the relatively distant location therefrom of the village abadi it appears to us that the classification on this arbitrary basis cannot possibly be sustained. It is,