UNION OF INDIA Vs. V.T. VELU

JUDGEMENT

(1.) The Union of India by its Secretary to Defence Ministry is before the Court seeking to quash the order passed by the Court below on 13-9-2007 - Annexure-M in Ex. Case No. 1623 of 1999 and to dismiss the same. Heard the Counsel representing the parties.

(2.) The question is with regard to awarding interest by the Reference Court/the Appellate Court on solatium in respect of the land acquired. In the case on hand, the Reference Court finally passed an award during June 1982. Thereafter, matter was taken in appeal for enhancement. The Trial Court finalized the matter during August 1991. It appears, thereafter the State has taken up the matter in appeal to the Apex Court where while modifying the compensation awarded which was fixed at Rs. 5/- per sq. ft., it has fixed the value at Rs. 1.50 lakhs per acre. According to the petitioner-Estate Officer, the award though includes solatium on the market value at 30% but as laid down in the case of Sunder v. Union of India, 2001 AIR(SC) 3516 , entitlement for interest on solatium whether it is claimed or otherwise, interest is awarded or not, claimant is entitled for interest from the cut of date fixed in Sunder's case and not beyond. However, according to the respondent's Counsel, already the Reference Court had awarded interest even on solatium as on the date of award, as such award is passed including interest on solatium for which claimant is entitled from the date of award. To contend now that claimants are not entitled for interest on solatium for the period prior to the decision in Sunder's case is untenable.

(3.) Counsel for the petitioner has referred to Sunder's case wherein the Constitution Bench of the Apex Court has dealt with reference to the compensation awarded in respect of a land acquisition case and on the liability to pay interest on solatium on account of compulsory acquisition as per Sections 23(2), 27 and 34 of the Land Acquisition Act, 1894, fixing interest to be paid at 9% on solatium for the first year and thereafter, at 15% p.a. subsequently. It is submitted, Sunder's case clarified the position as to payment of solatium i.e., with regard to interest on the compensation awarded and that compensation includes solatium to be paid from the cut of date fixed i.e., from the date of rendering judgment in the said case on 19-9-2001. Also taking me through para. 44 of the judgment in the case of Gurpreet Singh v. Union of India, 2006 AIR(SCW) 5813, which is subsequently rendered by the Constitution Bench, it is submitted, it is clarified that interest on solatium can be claimed only in pending executions and not in closed executions and the Execution Court will be entitled to permit its recovery from the date of judgment in Sunder's case i.e., 19-9-2001 and not for any prior period. It is also further clarified that this will not entail the decree-holder to any re-appropriation or fresh appropriation. Accordingly, it is contended that claimants are not entitled for interest on solatium from the date of decree and it is rather from the date of clarification issued in Sunder's case on 19-9-2001.