SUNDER versus UNION OF INDIA

SUNDER versus UNION OF INDIA

Solatium under Section 23(2) forms an integral and statutory part of compensation awarded for land acquired. Interest is payable under Sections 28 and 34 of the Land Acquisition Act on the aggregate compensation, including solatium, not merely on the market value of land.

Parties
Appellant/claimant: Sunder; Respondent: Union of India
Jurisdiction
India
Judgment Date
19 September 2001
Procedural Posture
Civil Appeal / Final Judgment After Reference to Constitution Bench
Outcome
Appeal disposed of; reference answered in favour of claimant's interpretation.
Legal Topics
Interest on Solatium, Interpretation of 'compensation' Under Land Acquisition Act
Land Acquisition Compensation Interest on Solatium Interpretation of 'compensation' Under Land Acquisition Act

Case Brief

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Parties

Sunder

Appellant/claimant

Union of India

Respondent

Procedural Posture

Civil Appeal / Final Judgment After Reference to Constitution Bench

Legal Issues

  1. 1 Is the State liable to pay interest on the amount envisaged under Section 23(2) (solatium) of the Land Acquisition Act, 1894?
  2. 2 Does 'compensation' for land acquired include solatium for purposes of interest accrual under Sections 28 and 34?

Ratio Decidendi

Solatium under Section 23(2) forms an integral and statutory part of compensation awarded for land acquired. Interest is payable under Sections 28 and 34 of the Land Acquisition Act on the aggregate compensation, including solatium, not merely on the market value of land.

Court Disposition

Appeal disposed of; reference answered in favour of claimant's interpretation.

Orders

  • Person entitled to compensation awarded for land acquisition is also entitled to interest on the aggregate amount including solatium.
  • Appeals disposed of accordingly.