Seshan and Others vs Special Tehsildar and Land Acquisition Officer, Spicot, Pudukkottai

Leave granted.

We have heard the learned Counsel on both sides.

Notification u/s 4(1) of the Land Acquisition Act, 1894 was published on 17th October, 1981. The possession of the land was taken in January 1982. The land Acquisition Officer in his award dated July 31, 1982 determined compensation @ Rs. 2,000 per acre. On reference, the civil Court by award and decree dated November 7, 1983 enhanced the compensation to Rs. 4,000 per acre. On appeal, the High Court by judgment and decree dated August, 9, 1989 enhanced the compensation to Rs. 6,000 per acre and awarded interest under the unamended Act as per the State amendment, thus this appeal by special leave.

In view of the fact that the Land Acquisition officer has made the award on July 31, 1982, i.e., after the introduction of the Amendment Act 68 of 1984 on the floor of the Parliament, the claimants are entitled to interest u/s 34 @ 9% per annum from the date of taking possession till date of payment or deposit in the Court. They are entitled to interest @ 15% on compensation not paid or deposited after the expiry of one year. Equally so on the enhanced compensation from the respective dates till the date of deposit in the Court. Equally, solatium @ 30% u/s 23(2) is required to be deposited on the market value.

The appeal is accordingly allowed to the above extent. No costs. Appeal allowed.