Rb Dealers Private Limited vs The Metro Railway, Kolkata

Dismissing the Special Leave Petitions, the Court HELD: Whether the solatium as contemplated under subsection (1) of Section 30 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitization and Resettlement Act, 2013, has to be calculated only on the market value and the assets thereon or the sum total of the market value, the assets and 12% per annum on the market value stipulated under sub-section (3) of Section 30 of the 2013 Act? While considering the aforesaid question, the relevant provisions of the 2013 Act and the scheme for determination of the amount of compensation for the land acquired are required to be referred to and considered. The relevant provisions of the 2013 Act are Sections 26, 27, 28, 29 and 30. Section 26 of the Act provides for determination of market value of the land by the Collector. Section 27 of the Act provides for determination of the amount of compensation and Section 28 of the Act provides the parameters to be considered by the Collector in determination of the award. Section 29 of the Act provides for determination of the value of things attached to the land or building. Section 30 of the Act provides that the Collector having determined the total compensation to be paid, shall, to arrive at the final award, impose a “Solatium” amount equivalent to one hundred per cent of the compensation amount. Sub-section (3) of Section 30 further provides that in addition to the market value of the land provided under Section 26, the Collector shall, in every case, award the 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 sub-section (2) of Section 4, in respect of such land, till the date of the award of the Collector or the date of taking possession of the land, whichever is earlier. Therefore, on conjoint reading of the aforesaid provisions and the scheme of the Act, it is to be seen that before the final award is passed by the Collector, the Collector has to determine the market value of the land as provided under Section 26 of the Act. That, thereafter, after determination of the market value of the land as provided under Section 26 of the Act, the Collector has to determine the amount of compensation as per Section 27 of the Act, which includes the market value of the land as well as the value of all assets attached to the land. Therefore, the amount of compensation determined shall be including the market value of the land to be acquired (as per Section 26 of the 2013 Act) and the value of all assets attached to the land. The determination of the value of the things attached to the land or building shall be as per Section 29 of the 2013 Act. Over and above the amount of compensation so determined by the Collector as per Sections 26, 27 and 28 of the 2013 Act, at the time of the final award, the Collector has to impose a “solatium” amount equivalent to one hundred per cent of the compensation amount, as per Sections

29 and 30 of the 2013 Act. The land owner whose land has been acquired shall also be entitled to, in addition to the market value of the land provided under Section 26 of the Act, an amount calculated at the rate of 12% per annum on such market value. Therefore, on conjoint reading of the aforesaid provisions and the scheme of the 2013 Act, the final award declared by the Collector shall be in three parts/components, namely the amount of compensation (which shall include the market value of the land to be acquired and the value of the assets attached to the land); the solatium determined and payable under sub-section (1) of Section 30 which shall be equivalent to one hundred per cent of the compensation amount (the market value + value of assets attached to the land) and the amount calculated at the rate of 12% per annum on such market value (as per sub-section (3) of Section 30 of the 2013 Act). All the three components would be independent which shall ultimately form part of the final award. At this stage, it is required to be noted that unlike the market value (as defined under Section 3(u) of the Act), the “Compensation” is not defined. However, on reading Sections

26 and 27 of the Act, it is to be held that the total amount of compensation shall be the market value of the land to be acquired as determined under Section 26 of the Act and the value of assets attached to the land determined under Section 29 of the Act. It is required to be noted that in sub-section (1) of Section 30 of the 2013 Act, the word used is “Solatium” amount equivalent to one hundred per cent of the COMPENSATION AMOUNT. It is also required to be noted that unlike Section 23 of the old Land Acquisition Act, 1894, under the 2013 Act, the award of solatium and the additional amount calculated at the rate of 12% per annum on such market value is provided in the different section. Even the solatium payable under the old Land Acquisition Act was at the rate of 30 per cent on the market value and, in the new 2013 Act, the solatium amount is equivalent to one hundred per cent of the compensation amount. Therefore, there is a material change in determination of the market value, determination of the amount of compensation, determination of the amount of solatium and declaration of the final award. Therefore, on a fair reading of the relevant provisions of the 2013 Act, namely Sections 26 to 30, we are of the opinion that the High Court has rightly observed and held that the solatium amount to be determined and calculated under sub-section (1) of Section 30 of the 2013 Act shall be equivalent to 100% of the market value determined under Section

26 of the Act plus the value of all assets attached to the land i.e. the total amount of the compensation and shall not include an amount calculated at the rate of 12% per annum on such market value payable under sub-section (3) of Section 30 of the 2013 Act. On fair reading of the aforesaid provisions and the scheme of the 2013 Act, this Court is of the opinion that any other interpretation would be contrary to the scheme of the 2013 Act. [Para 4] [1149-E-H; 1150-A-H; 1151-A-H]