Open market value governs requisitioned land compensation; interest is limited to the statutory scheme and rules.

Compensation for requisitioned land was assessed by reference to open market value on the date of acquisition, and the HC upheld the award of Rs. 10,000 per bigha for the acquired land because comparable nearby lands and surrounding development supported that valuation. The annual recurring compensation of Rs. 200 per bigha per annum was also upheld, as the evidence did not justify treating the land differently for valuation purposes. On interest, the Court held that the statute did not create a standalone right to interest from the date of possession; interest could be awarded only within the limits of the Act and rules, so it ran from the Arbitrator's award until payment, not from possession.

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Issues: (i) Whether the compensation for acquisition of the requisitioned land was correctly fixed at Rs. 10,000 per bigha; (ii) Whether the annual recurring compensation for the requisitioned period was correctly fixed at Rs. 200 per bigha per annum; (iii) Whether interest on the compensation was payable from the date of taking possession or from the date of the Arbitrator's award.

Issue (i): Whether the compensation for acquisition of the requisitioned land was correctly fixed at Rs. 10,000 per bigha.

Analysis: The land lay in a developing area with established public and private institutions, good communication, and proved instances of substantially higher compensation for comparable nearby lands. The statutory basis under Section 8(3) required compensation to reflect the open market value as on the date of acquisition, and the Court applied that principle while also noting its earlier decision on identical land in the vicinity.

Conclusion: The acquisition compensation at Rs. 10,000 per bigha was upheld and was not interfered with.

Issue (ii): Whether the annual recurring compensation for the requisitioned period was correctly fixed at Rs. 200 per bigha per annum.

Analysis: The evidence showed productive use of the land and the surrounding development, and the Court found no reason to distinguish between the different categories of land for valuation. Although the Court noticed that a higher figure had been awarded in the earlier comparable matter, there was no cross-objection enabling enhancement in these appeals.

Conclusion: The annual recurring compensation at Rs. 200 per bigha per annum was upheld.

Issue (iii): Whether interest on the compensation was payable from the date of taking possession or from the date of the Arbitrator's award.

Analysis: The Court held that the Act did not itself provide for interest as a standalone entitlement from the date of possession, but interest could be awarded as part of costs under the rules framed under the Act. On that basis, interest was confined to the period after the award until final payment, if the compensation had not already been paid.

Conclusion: Interest was directed only from the date of the Arbitrator's award till final payment, and no recovery was ordered where payment had already been made.

Final Conclusion: The award was substantially affirmed, with only the interest component modified, and the appeals were dismissed with costs.

Ratio Decidendi: Compensation for requisitioned property is to be determined on the basis of its open market value at the date of acquisition under the statutory scheme, and interest may be awarded only to the extent permitted by the Act and the rules framed thereunder as part of costs.

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