Judgment

R.V. RAVEENDRAN, J.

Leave granted. The question raised in this appeal is whether additional amount under Section 23(1A) of the Land Acquisition Act, 1894 (`Act' for short) is payable on the solatium under Section 23(2) of the Act.

2. In regard to acquisition of land belonging to the respondents, the reference Court by judgment dated 5.3.2001 awarded compensation at the rate of Rs.6,96,000/- per acre alongwith statutory benefits under Section 23(1A), 23(2) and 28 of the Act. The respondents filed an execution application wherein they claimed additional amount of 12% per annum for the period 11.11.1993 to 16.6.1994 (that is from the date of notification under Section 4(1) of the Act till the date of the award) under Section 23(1A) of the Act, not only on the market value of the land, but also on the solatium amount. The said claim was accepted by the Executing Court by order dated 8.5.2008. The revision filed by the appellant was rejected by the High Court on 4.9.2008. The said revisional order of the High Court is challenged in this appeal by special leave.

3. To find an answer to the question arising for consideration, it is necessary to refer to Section 23 of the Act dealing with matters to be considered in determining compensation. The said provision is extracted below:

"23. Matters to be considered in determining compensation:

(1) In determining the amount of compensation to be awarded for land acquired under this Act, the Court shall take into consideration- first, the market-value of the land at the date of the publication of the notification under section 4, sub- section (1);

secondly, the damage sustained by the person interested, by reason of the taking of any standing crops or trees which may be on the land at the time of the Collector's taking possession thereof;

thirdly, the damage (if any) sustained by the person interested, at the time of the Collector's taking possession of the land, by reason of severing such land from his other land;

fourthly, the damage (if any) sustained by the person interested, at the time of the Collector's taking possession of the land, by reason of the acquisition injuriously affecting his other property, movable or immovable, in any other manner, or his earnings;

fifthly, in consequence of the acquisition of the land by the Collector, the person interested is compelled to change his residence or place of business, the reasonable expenses (if any) incidental to such change; and

sixthly, the damage (if any) bona fide resulting from diminution of the profits of the land between the time of the publication of the declaration under section 6 and the time of the Collector's taking possession of the land.

(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 twelve per centum per annum on such market value for the period commencing on and from the date of the publication of the notification under section 4, sub-section (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.

Explanation. - In computing the period referred to in this sub-section, any period or periods during which the proceedings for the acquisition of the land were held up on account of any stay or injunction by the order of any Court shall be excluded.

(2) In addition to the market value of the land as above provided, the Court shall in every case award a sum of thirty per centum on such market value, in consideration of the compulsory nature of the acquisition."

(emphasis supplied)

4. Section 23 of the Act refers to four distinct amounts:

(i) Market value of the land on the date of publication of the notification under Section 4 (1) of the Act is first and foremost of the six factors to be taken note of for determining the amount of compensation for the land acquired. It is the major component (and in most cases, the only component) of th