M/S PERIYAR & PAREEKANNI RUBBERS LTD. versus STATE OF KERALA

M/S PERIYAR & PAREEKANNI RUBBERS LTD. versus STATE OF KERALA

In view of the binding precedent in Sunder's case, the claimant is entitled to interest on solatium as part of compensation from the date of entitlement under the Land Acquisition Act, not restricted to post-2001 period. Gurpreet Singh's observations are obiter and not binding; accordingly, restriction imposed by...

Source-derived case information.

Parties
Appellant: M/S Periyar & Pareekanni Rubbers Ltd.; Respondent: State of Kerala
Jurisdiction
India
Judgment Date
14 September 2015
Procedural Posture
Civil Appeal / Referred to Larger Bench
Outcome
Matter referred to larger Bench due to divergence of opinion.
Legal Topics
Compensation, Solatium, Interest on Solatium, Execution of Award
Land Acquisition Compensation Solatium Interest on Solatium Execution of Award

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Parties

M/S Periyar & Pareekanni Rubbers Ltd.

Appellant

State of Kerala

Respondent

Procedural Posture

Civil Appeal / Referred to Larger Bench

Legal Issues

  1. 1 Whether interest on solatium is payable from date of entitlement under Land Acquisition Act, 1894 or only after 19.09.2001 as per Sunder's case.
  2. 2 Whether Gurpreet Singh's observations limiting interest on solatium to date after Sunder are binding.

Ratio Decidendi

In view of the binding precedent in Sunder's case, the claimant is entitled to interest on solatium as part of compensation from the date of entitlement under the Land Acquisition Act, not restricted to post-2001 period. Gurpreet Singh's observations are obiter and not binding; accordingly, restriction imposed by High Court is unsustainable.

Court Disposition

Matter referred to larger Bench due to divergence of opinion.

Orders

  • Portion of High Court judgment restricting award of interest on solatium w.e.f. 19.09.2001 set aside by V. Gopala Gowda, J.; civil appeals allowed; State directed to pay interest as per Sections 23(1A) and 28 including solatium from date of entitlement.
  • Judgment placed before Chief Justice of India to assign to appropriate bench due to dissent by Adarsh Kumar Goel, J.