Supreme Court of India

TEHRI HYDRO DEVELOPMENT CORPORATIONversusSH. S.P. SINGH AND ORS.

Citation: 1996 INSC 1389
Decided: 26 November 1996
Disposal: Appeal(s) allowed
Bench: K RAMASWAMYG T NANAVATI

Holding

The claimants are not entitled to interest on the solatium or on the additional amount awarded under Section 23(1‑A) of the Land Acquisition Act, 1894.

Summary

The Supreme Court heard an appeal by Tehri Hydro Development Corporation against a decree of the Allahabad High Court that reduced compensation for land acquired under the Land Acquisition Act, 1894 and awarded separate compensation for buildings, factories and machinery. The issue was whether the claimants were entitled to interest on the solatium and the additional amount awarded under Section 23(1‑A) of the Act, given that the High Court decree did not expressly provide for such interest. Relying on the precedent set in Prem Nath Kapoor v. National Fertilizer Corporation, which held that claimants are not entitled to solatium on the additional amount under Section 23(1‑A), the Court examined the language of the decree and the statutory scheme. It concluded that, in the absence of a specific provision in the decree, the claimants could not claim interest on either the solatium or the additional amount. Consequently, the appeal was allowed, confirming that no interest is payable on those amounts.

Issues considered

Whether claimants are entitled to interest on the solatium awarded under Section 23(1‑A) of the Land Acquisition Act, 1894.
Whether claimants are entitled to solatium and interest on the additional amount awarded under Section 23(1‑A) of the Act.

Legislation cited

Land Acquisition Act, 1894s. 23(1-A), s. 4(1)

Subjects

Land acquisitionCompensationSolatiumInterestSection 23(1‑A)Statutory benefitsSupreme CourtAppeal

Judgment

                TEHRI HYDRO DEVELOPMENT CORPORATION                                A
-~                                         v.
                              SH. S.P. SINGH AND ORS.

                                NOVEMBER 26, 1996

                  [K. RAMASWAMY AND G.T. NANAVATI, JJ.]                            B

             Land Acquisition Act, 1894: Section 4( 1) and 23(1-A)

           Land acquisition--Compensation-Interest on solarium and one addi-
     tional amount awarded under section 23(1-A)-No specific mention in the        C
     decree of High Court that claimants are entitled to said relief-Decree men-
     tioned that claimants were entitled only to statutory benefit~e/d, in these
     circumstances claimants were not entitled to interest on solatium and on
     additional. amount awarded under Section 23(1-A) of the Act.

           Prem Nath Kapoor v. National Fe1ti/izer Corporation, [1996] 2 SCC       D
     71, referred to.

             CIVIL APPELLATE JURISDICTION : Civil Appeal No. 15486 of
     1996.


-         From the Judgment and Order dated 22.3.96 of the Allahabad High
     Court in F.A. No. 129 of 1995.

             Prem Prasad Juneja for the Appellants.
                                                                                   E



             Niraj Sharma for the Respondents.
                                                                                   F
             The following Order of the Court was delivered :

             Leave granted.

             We have heard learned counsel on both sides.

           This appeal by special leave arises from the judgment and order of      G
     the Division Bench of the High Court of Allahabad, made on March 22,
     1996 in the First Appeal No. 129/95. This appeal and also the First Appeal
     No. 123/95 before the High Court are commonly disposed of since the
     acquisition was common. A notification under Section 4(1) of the Land
     Acquisition Act, 1894 (for short, the 'Act') was published on September       H
                                         211
    212                   SUPREME COURT REPORTS [1996) SUPP. 9 S.C.R.

A   11, 1982 for acquiring 192.82 acres. The award came to be passed by the
    Land Acquisition Officer on March 3, 1984 in Award No. 44 in respect of
    137.52 acres of the land and another award dated September 21, 1986 in
    award No. 44/1 in respect of 33 acres of land. On appeal, the Additional
    District Judge by his another award dated December 3, 1994 awarded a
    sum of Rs. 1,35,000 per acre. On appeal, the High Court has reduced the
B   compensation to Rs. 1,12,500 per acre. it has also awarded separate com-
    pensation for the building, factory and machinery. Thus this appeal by
    special leave.

          In this appeal, Shri Juneja, learned counsel for the appellant, has
C contended that in view of the judgment in the case of Prem Nath Kapoor
  v. National Fertilizer Corporation, [1996] 2 SCC 71 wherein it was held that
  the claimants are not entitled to solatium on additional amount awarded
  under Section 23(1A) of the Act, they are also not entitled to interest on
  solatium. The learned counsel for the respondent, in fairness, has stated
  that as per the decree of the High Court, there was no specific mention
D that the claimants are entitled to the above reliefs. It mentions only that
  the statutory benefits would be granted as per law. Under these cir-
  cumstances, it is clarified that the claimants are not entitled to interest on
  solatium and on additional amount awarded under Section 23(1A) of the
  Act.
E
          The appeal is accordingly allowed to the above extent. No costs.

    T.N.A                                                      Appeal allowed.

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