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Issues: Whether the enhanced rate of interest under the amending law applied to compensation proceedings pending on the date of commencement, and whether interest on the enhanced compensation awarded by the High Court ran from the date of taking possession.
Analysis: The right to compensation arises when land is acquired and possession is taken. The later judicial determination only quantifies that right; it does not create a fresh entitlement from the date of the appellate judgment. Once the High Court had accepted that interest at the higher rate was payable from the date of possession on compensation found due by the Land Acquisition Officer and the District Judge, the same principle had to govern the additional compensation awarded by the High Court. The distinction between the existence of the right and its later quantification required the enhanced amount also to relate back to the date of acquisition.
Conclusion: The appellants were entitled to interest at 6 per cent per annum on the enhanced compensation for the entire period from the date possession was taken to the date of payment.
Final Conclusion: The appeal succeeded and the High Court's interest determination was modified in favour of the appellants.
Ratio Decidendi: In land acquisition matters, the right to compensation accrues on acquisition, and any later enhancement in compensation relates back to that date for the purpose of interest.
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