SPECIAL DEPUTY COLLECTOR Vs. VENKATA SESHAMMA

JUDGEMENT

(1.) The above 26 appeals relate to acquisition of lands. To preface the discussion in the cases, it is not irrelevant to recount sovereign powers of the State which include police power, power of taxation and power to acquire land, often expressed in Latin expression "eminent domain". In the old texts of jurisprudence sovereign power is recounted to include escheat. The modern text book writers on sovereignty consider escheat is more an incident of property than a subject of sovereignty.

(2.) In the pre-constitution days eminent domain power affecting land was reduced in enactment of The LAND ACQUISITION ACT, 1894, 1 of 1894. The Act specifies the procedure to be followed when land is acquired. The Act also lays down how compensation is to be determined. Compensation is a word which includes the market value of the land and solatium paid to the landholders and sometimes the expression is used to include interest awarded to the landholder. The subject before the Full Bench pertains to interest payable to landholders. The rate of interest in the Act payable was 6% per annum. Solatium of 15% on the market value was paid. In a recent enactment solatium and interest was enhanced by amending the Act.

(3.) The Parliament of India introduced a Bill on April 30, 1982. The Bill received the assent of the President on September 2, 1984. The Act is now entitled "The Land Acquisition (Amendment) Act, 68 of 1984". In the Amendment Act solatium is enhanced to 30%. The rate of interest is enhanced to 12%. The Objects and Reasons recite since acquisition cases are pending determination of the value of the land for long, and when value is finally determined the amount of compensation is "unrealistic and iniquitous" Therefore, the Parliament desired landholders be adequately compensated for loss sufferred by them. In numerous cases arising under the Act 1 of 1894 all over the country this was the experience when land was acquired to meet the welfare activities of the State.