Land Acquisition Act, 1894 – Acquisition of land – Interest on solatium – Entitlement to – Interpretation of Constitution Bench judgment in Gurpreet Singh case – Direction of High Court to the effect that claimants-respondents would be entitled to move an application for interest on solatium in view of the judgment in Gurpeet Singh Case– Held: Justified – On facts, claim for interest on solatium had not been rejected by the reference court – High Court had held that the issue as to whether interest on solatium would be granted would depend on the outcome of the proceedings pending before Supreme Court in Gurpreet Singh case – Liberty was thus granted by the High Court to institute proceedings before the Sub Court after the matter was resolved in Gurpreet Singh case – Gurpreet Singh case mandates a test that interest on solatium would be payable if the reference court has either not referred to it or has not rejected it expressly or by necessary implication, and the claim can only be made in pending execution proceedings. – Hence, on facts, inter parties, respondents entitled to apply for grant of interest on solatium, though the earlier execution petition was closed since their claim had not been rejected at any antecedent stage and had been kept open – Reference court to verify the computations and to pass appropriate orders – In terms of the judgment in Gurpreet Singh case, interest on solatium payable w.e.f date of judgment in Sunder vs Union of India (19 September 2001).
Disposing the appeal, the Court
HELD:1.1. Gurpreet Singh case mandates a test that interest on solatium would be payable if the reference court has either not referred to it or has not rejected it expressly or by necessary implication. Moreover the claim can only be made in pending execution proceedings [Para 8][666-B-C]
1.2. In the present case, the claim for interest on solatium had not been rejected by the reference court. In appeal arising from decision of reference court, the High Court observed that since the matter was pending before a larger bench of the Supreme Court in Gurpreet Singh case, the issue as to whether interest on solatium would be granted would depend on the outcome of those proceedings and it would be open to the claimants to move an application before the Sub Court. The liberty which was granted by the High Court to institute proceedings before the Sub Court after the matter was resolved by Supreme Court in Gurpreet Singh case was the subject matter of a Special Leave Petition. The judgment of the High Court was affirmed by the dismissal of the Special Leave Petition. The review petition by the Revenue Divisional Officer was also dismissed. It was only after the judgment of the Court in Gurpreet Singh, that the respondents moved an application for the grant of interest on solatium. Hence, inter parties, the claimants were entitled to apply for the grant of interest on solatium, particularly having regard to the fact that the claim had not been rejected at any antecedent stage and had been kept open. As a matter of principle, no reason to take any other view since it is in accord to the judgment in Gurpreet Singh case. [Para 8 & 9][666-B-F; 666-G-H; 667-A]
2.1 The submission of the appellant is that the claim was made in 2008 after the earlier execution petition was closed and the original award and enhanced compensation were deposited and appropriated by the claimant. The claim for interest on solatium was not rejected and was expressly kept open by the High Court in its judgment dated 12 July 2001. [Para 9] [666-F-G]
2.2 The direction of the High Court to the effect that the claimants-respondents would be entitled to the payment of interest on solatium is confirmed. Insofar as the exact mathematical computation is concerned, it would be appropriate to leave it to the reference court to verify the computations and to pass appropriate orders. It is clarified that in terms of the judgment of the Constitution Bench in Gurpreet Singh case, interest on solatium will be payable with effect from the date of the judgment in Sunder vs Union of India (19 September 2001). [Para 10][667-B-D]
Gurpreet Singh v Union of India (2006) 8 SCC 457: [2006] 7 Suppl. SCR 422 – followed.
Sunder v Union of India (2001) 7 SCC 211: [2001] 3 Suppl. SCR 176 –
referred to
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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