UNION OF INDIA Vs. BAIJNATH PRASAD AND ANOTHER

JUDGEMENT

(1.) These Letters Patent Appeals have been preferred to challenge the order passed by the learned Single Judge in Misc. Appeal Nos. 50 of 1995 to 58 of 1995, 60 of 1995 to 62 of 1995, 64 of 1995 and 65 of 1995.The learned Single Judge has modified the order passed by the Ist Additional Judicial Commissioner,Tribunal, Ranchi in Reference Case No. 115 of 1993 and other Reference Cases. The order of the learned Single Judge is dated 10th November, 2004, whereby market price of the land in question was likely reduced,maintaining solatium granted by the Ist Additional Judicial Commissioner,Tribunal, Ranchi in Reference Case No.115 of 1993 @ 30%. Similarly the rate of interest was also maintained by the learned Single Judge which is 9% per annum for the first year and 15% per annum for the subsequent years, up to the date of the payment .Thus except reduction in the market price, rest of the compensation has been upheld by the learned Single Judge. Appellants' main contention was that when the appeals were admitted there is no provision of solatium nor any there is any provision of payment of interest under the Coal Bearing Areas ( Acquisition & Development) Act 1957.

(2.) Having heard counsel for both the sides and looking to the facts and circumstances of the case, it appears that Coal Bearing Areas (Acquisition & Development) Act, 1957 was under challenge before the Hon'ble Supreme Court of India mainly on the ground that there is no provision of solatium and interest and on other grounds.

(3.) Central Government has admitted that they are ready to pay solatium @ 30% and Hon'ble the Supreme Court of India has also granted interest @ 9% per annum for the first year and @ 15% per annum for subsequent years, till the actual payment is made, whereas, in the Act, 1957, interest payable is @ 5 %.This rate of interest has been enhanced by the Central Government vide notification dated 12.5.1989.