TaxTMI 
TaxTMI 
TaxTMI 
1995 (11) TMI 441
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....on. On January 9, 1975, after the award was made, the Collector paid the compensation including solatium and interest determined thereon. After the High Court enhanced the compensation in revision, the same was deposited on January 14, 1984. It is not necessary to dilate but suffice it to mention that the appellants by way of revision claimed compensation for damages for severance of other lands from acquired land as provided under clause thirdly of Section 23(1). In another revision, the appellants claimed solatium and interest on damages for severance of the lands which was also granted by the High Court. In yet another revision, the High Court enhanced solatium and interest and additional amount under Sections 23(2), 28 and 23 (1-A) as amended by Act 68 of 1984. The appellants laid execution, firstly, after appropriating the amount received towards costs, then towards interest on the total compensation and solatium and then for compensation in respect of the lands. Executing Court granted the relief, but the High Court in revision set aside the order dated March 11, 1987 in Civil Revision No. 3814 of 1986 and directed the Executing Court to dispose of the matter in the light of ....
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....deration "the market-value of the land" at the date of the publication of the notification under Section 4(1). Sub-section (2) of Section 23 provides that "in addition to the market-value" of the land, the Court shall "in every case award a sum of thirty per centum on such market-value, in consideration of the compulsory nature of the acquisition"; preceding September 24, 1984, at 15% on such market-value. Similarly, under Section 23 (1-A), as inserted by Act 68 of 1984, "in addition" to the marketvalue of the land, the Court shall in every case award an amount calculated at the rate of twelve per centum per annum "on such market-value" for the period commencing on and from the date of publication of Section 4 (1) notification to the date of the award of the Collector or the date of taking possession of the land, whichever is earlier. Section 31 enjoins that the Collector on making the award under Section 11, shall tender payment of the compensation to the persons interested entitled thereto according to the award. He shall also pay the same to them, unless prevented by one or more contingencies mentioned in sub-section (2). In that....
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....se mentioned in Section 34 from "the date on which he took possession of the land to the date of payment of such excess into Court". The duty to pay enhanced rate of interest as provided in the proviso to Section 34 is similarly provided in the proviso to Section 28 as per Section 18 of the Amendment Act 68 of 1984. Section 53 of the Act makes CPC applicable to the proceedings before the court under the Act. It provides that "save in so far as they may be inconsistent with anything contained in this Act" [emphasis supplied], the provisions of the CPC shall apply to all proceedings before the Court under the Act. A reading of the above provisions would establish that the award consists of (a) the compensation determined under Section 23 (1), (b) solatium on the market-value determined under Section 23 (2), as additional sum for compulsory nature of acquisition, and (c) payment of interest on the amount of compensation under Section 11, on excess or part thereof under Section 26 awarded by court from the date of taking possession till date of payment or deposit into the court at the rates specified under the respective provisions of Sections 34 and 28. Under Secti....
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....ing possession till date of payment or deposit into the court to which reference under Section 18 would be made. After the enquiry under Section 20 read with Section 21 on determination of excess amount of compensation, Section 28 empowers the court, if in its opinion the Collector ought to have awarded compensation as determined by him, to award interest "in excess of sum which the Collector did award as compensation" The award of the court may direct the Collector to a pay interest on such excess or part thereof from the date on which he took possession of the land to the date of payment of such excess "into Court" at the rates specified thereunder. In other words, Sections 34 and 28 fasten the liability on the State to pay interest on the amount of compensation or on excess compensation under Section 28 from the date of the award and decree but the liability to pay interest on the excess amount of compensation determined by the Court relates back to the date of taking possession of the land to the date of the payment of such excess "into the court". Section 34 when contrasted with Section 28, visualises payment of interest from the date of taking p....
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....erent levels, the liability to pay interest thereon arises from the date on which the qualification was so made but, as stated earlier, it relates back to the date of taking possession of the land till the date of deposit of interest on such excess compensation into the court. Equally, when the appellate court under Section 54 further enhances the compensation, interest is payable on such excess amount determined under Section 23 (1). In other words, the liability to pay interest arises as and when the compensation is further enhanced and liability to pay interest would be co-terminus with the payment of the amount under Section 34 from the date of taking possession till date of payment or deposit or under Section 28 or Section 54 from the date of taking possession till the date of deposit of such excess amount into the court. The liability to pay interest is only on the excess amount of compensation determined under Section 23(1) and not on the amount already determined by the Land Acquisition Officer under Section 11 and paid to the party or deposited into the court or determined under Section 26 or Section 54 and deposited into the court or on solatium under Section 23(2) and a....
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....ion of the land till date of payment. Equally, the contention that the claimant is entitled to interest on solatium is also not warranted by express provisions under Section 23 (2), i.e., "in addition to" market-value, solatium was required to be paid. Section 34 or Section 28, as the case may be, fastens liability to pay interest only on amount of compensation or such excess amount of compensation or part thereof determined under Section 23 (1). In other words, by virtue of the language of Section 23 (2), viz., "in addition to the market-value", as provided in Section 23 (1), solatium becomes payable. Compensation under Section 23 (1), by necessary implication, excludes the liability to pay interest on solatium. Equally, the question of payment of solataium on additional amount was also considered by this Court in P.Ram Reddy v. State of Andhra Pradesh [(1995) 2 SCC 305] where it was held that no solataium is payable on additional amount payable under Section 23 (1-A). So too, no interest is payable on additional amount under Section 23 (1-A) on other components or part thereof determined under Section 23(1) over and above the award under Section 11 by Civil ....