YADAVRAO P PATHADE Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Leave granted.

(2.) The only question is: whether the appellants are entitled to payment of interest on solatium payable under Section 23 (2 of the Land Acquisition Act (Act 1 of 1894 (for short "the Act"). The additional amount was awarded by the reference court on 15/12/1979 enhancing the compensation. The High court by its judgment dated 4/12/1995 has further enhanced the compensation to Rs. 42,056.15. The appellants claimed interest on solatium of Rs. 6,308.42 which was disallowed by the High court. The interest on solatium was calculated from 1/1/1967 to 31/12/1971. The appellants placed reliance on ajudgment of this court in Periyar and Pareekanni Rubbers Ltd. v. State of Kerala contending that interest on solatium is a part of the component under Section 23 (1 of the Act and that, therefore, they are entitled to payment of the interest. The High court, therefore, was not right in refusing interest on solatium. To appreciate the contention it is necessary to look to the provisions of the Act.

(3.) Section 28 gives power to the court to award interest when the court enhances the compensation in excess of amount awarded by the Collector at the rate specified therein, namely, preceding the Amendment Act 68 of 1984, at 6% per annum under the central Act or at the rates as per the appropriate Act amended by the local amendments to the Act. After the Amendment Act coming into force w. e. f. 24/9/1984 the claimants would be entitled to interest at 9% p. a. for one year from the date of taking possession and on expiry thereof, at 15% p. a. till the date of the deposit into the court.