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2023 Supreme(P&H) 2412

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ANIL KSHETARPAL, J.
Union of India – Petitioner
Versus
Charan Dass & Ors. – Respondents
CR-1580 of 2021 (O&M) AND OTHER CONNECTED CASES
Decided On : 02-03-2023

Advocates Appeared:
Mr. Arun Gosain, Senior Government counsel; For the Petitioner- UOI.
Mr. Shailendra Jain, Sr. Advocate with Mr. Rakesh Gupta, Advocate; For the Respondents

Headnote:(A) Land Acquisition Act, 1894 - Sections 23(1-A) and 23(2) - The court addressed whether the Executing Court can direct payment of interest on additional amounts and solatium where such directions were not specified in the award or subsequent appeals - The court found the Executing Court’s ruling correct in awarding interest on the additional amount from the date of possession and solatium from 19.09.2001 as per earlier Supreme Court rulings - The decisions in Sundar v. Union of India and Gurpreet Singh v. Union of India reinforce the principle that interest on solatium is payable post-Sunder judgment - Awards of Executing Court partially set aside, confirming interest on solatium calculated from 19.09.2001, with the dismissals of relevant appeals noted. (Paras 2, 17, 18)

(B) Compensation - Right to claim interest - The Supreme Court has established that interest is payable on solatium if not expressly denied by lower courts. (Paras 11, 14)

(C) Execution of awards - Courts should not question the decree itself, and can only apply the legal principles surrounding interest where consistent with prior rulings. (Paras 11, 14)

Facts of the case:
A batch of civil revision petitions was filed by the Union of India, disputing the Executing Court's directions regarding the payment of interest on compensation for land acquisition, specifically concerning additional amounts and solatium that were not expressly addressed in the original awards.

Findings of Court:
The court partially set aside the earlier orders of the Executing Court, ruling firmly that while solatium should attract interest, this interest would take effect from the date of the Supreme Court's decision in Sundar's case rather than the date of dispossession.

Issues: The primary issues were the entitlement to interest on additional amounts and solatium under the Land Acquisition Act, particularly when no such directives were clear from the original awards.

Ratio Decidendi: The judgement reiterates that well-established legal principles from Supreme Court precedents dictate the circumstances under which interest on solatium is payable—from the date of the Sundar ruling—highlighting the authority of past decisions in execution scenarios.

Result: Revision petitions disposed of, with specified adjustments to interest calculations as ordered.

JUDGMENT

Anil Kshetarpal, J.

By this order, a batch of 21 civil revision petitions (details whereof are at the foot of the judgment) shall stand disposed of.

2. In the considered opinion of this Court, the following two questions arise for adjudication:-

    i) Whether the Executing Court can direct the payment of interest on the additional amount payable at the rate of 12% per annum under Section 23(1-A) of the Land Acquisition Act, 1894 (hereinafter referred to as 'the 1894 Act') particularly when there is no such specific direction in the award passed under Section 18 or appeal under Section 54 of the 1894 Act or the Letters Patent Appeal?

    ii) Whether the Executing Court can direct the payment of interest on the amount of solatium payable under Section 23 (2) of the 1894 Act before the date of judgment passed in Sundar v. Union of India (2001) 7 SCC 211 particularly when there is no specific order to this effect by the court in the award under Section 18 or appeal under Section 54 of the 1894 Act or the Letters Patent Appeal?

3. This batch of revision petition has been filed challenging the correctness of the orders passed by the Executing Court on 20th October, 2016 and 23rd March, 2021. Without going into the detailed facts or tracing the history of the acquisition, it is sufficient to notice that the Reference Court (hereinafter referred to as 'RC') vide award dated 6th April, 1998 re-assessed the market value while observing as under:-

    51. In view of my finding on the issues above, the market value of the acquired land of the petitioners in all the land references, irrespective of the quality of the land, is determined as Rs.2,33,750/- per acre. It is made clear that the total area of the acquired land of petitioner. Gram Panchayat of village Sher Majra is 41 kanals and, therefore, the compensation/enhanced compensation to the Gram Panchayat should be paid accordingly. It is further made clear that the acquired area of petitioners Nitia Nand etc. in land reference No. 116-I is 80 kanals 5 Marlas and not 79 kanals 16 Marlas and they are entitled to compensation/enhanced compensation, accordingly. Benefits of increase at the rate of 12% under section 23 (1-A), solatium under section 23 (2) and interest under section 28 of the Act, as admissible thereunder, are also allowed to the petitioners on the enhanced amount of compensation. The date of taking the possession of the acquired land is held as 3.2.1992, as already held by me as per my detailed discussion in para in 64 and 65 of award Ex.P19."

4. In appeal under Section 54 of the 1894 Act, the High Court vide judgment dated 1st April, 1999 held as under:-

    "In view of the above detailed discussion, the judgment/ award of the learned Additional District Judge, Patiala dated 6.4.1998 is modified to the extent that claimants would be entitled to receive a compensation of Rs.92.60 per square yard (Rs.4,48,159. Per acre) with all statutory benefits under Sections 23(1-A), 23 (2) and 28 of the Act. In view of the above, the appeals preferred by the State arising from the awards passed by the learned District Judge in Regular First Appeal No.3531 of 1998, titled Union of India v. Hardev Singh, Regular First Appeal No. 3557 of 1998 titled Union of India v. Gram Panchayat, Pashiana, and Regular First Appeal No. 3745 of 1998 titled Union of India and others v. Babu Ram and others, are dismissed. However, the appeals preferred by the claimants are partly accepted to the above extent, leaving the parties to bear their own costs."

5. In Letters Patent Appeal decided on 25th February, 2005, the operative part of the judgment reads as under:-

    "When we add amount of sale instance Ex.X-3 in the value of above mentioned six sale instances, total sale consideration would come to Rs.37,44,271/- and average price per acre comes to Rs.5,34,896/-. Cut to the extent of 15% would come to Rs.80,234/-. Accordingly, net amount payable per acre would come to Rs.4,54,662/-. This Court is of the opinion that

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