{"id":18411,"date":"2015-10-08T11:10:00","date_gmt":"2015-10-08T11:10:00","guid":{"rendered":"http:\/\/localhost\/sccblog\/?p=18411"},"modified":"2015-11-23T17:45:19","modified_gmt":"2015-11-23T12:15:19","slug":"diverse-views-expressed-in-the-matter-of-payment-of-interest-on-solatium","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2015\/10\/08\/diverse-views-expressed-in-the-matter-of-payment-of-interest-on-solatium\/","title":{"rendered":"Diverse views expressed in the matter of payment of interest on solatium"},"content":{"rendered":"<p style=\"text-align: justify;\"><b><span lang=\"EN-US\">Supreme Court: <\/span><\/b><span lang=\"EN-US\">In the present case where the dispute arose relating to <\/span><span lang=\"EN-US\">the claim of solatium for the enhanced amount of compensation and interest in respect of the acquired land, the Division Bench of V. Gopala Gowda and A.K. Goel, JJ., gave divergent views <\/span><span lang=\"EN-US\">on whether the payment of compensation under the Land Acquisition Act, 1894 for the solatium should be from the date of acquisition or from date of pronouncement of the Constitution Bench decision in\u00a0<em>Sunder v. Union of India, <\/em><em><a href=\"http:\/\/www.scconline.com\/LoginForNewsLink\/2001_7_SCC_211 \">(2001); 7 SCC 211<\/a>. According to the observations made by V. Gopala Gowda, J., Sunder case<\/em><em> is a binding precedent on the question of payment of interest on solatium. However A.K. Goel, J. expressed his disagreement over the observations made by Gowda, J. and relying on Para 54 of Gurpreet Singh<\/em><em> v. Union of India<\/em><em>, <\/em><\/span><span lang=\"EN-US\"><a href=\"http:\/\/www.scconline.com\/LoginForNewsLink\/2006_8_SCC_457\">(2006) 8 SCC 457<\/a><\/span><em><span lang=\"EN-US\">, observed that the Kerala <\/span><\/em><span lang=\"EN-US\">High Court restricted the interest on solatium to the period post 19.09.2001,\u00a0 i.e. the date when decision in the <i>Sunder case<\/i> was delivered.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"EN-US\">In the present case the decision of the Kerala High Court was challenged whereby the High Court confirmed <\/span><span lang=\"EN-US\">that solatium is payable on that portion of land value based on capitalization method of yielding rubber trees and directed to compute balance amount payable under the decree but awarded the interest on solatium from 19.09.2001. The appellants were denied the interest payable on solatium under Sections 23(1A), 23(2) read with Sections 28 and 34 of the Land Acquisition Act, 1894. The counsel for the appellant V. Giri contended that the High Court was not justified to restrict payment of interest on solatium prior to 19.09.2001 by applying Para 54 of <i>Gurpreet Singh<\/i> <i>case<\/i>. Counsel for the respondent, Bina Madhavan sought to justify the stand taken by the High Court.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"EN-US\">In view of the divergent opinions expressed by the judges in the present case, it was deemed appropriate that the matter be placed before a 3- Judge Bench of the Supreme Court. [<\/span><i><span lang=\"EN-US\">M\/s Periyar &amp; Pareekanni Rubbers Ltd <\/span><\/i><span lang=\"EN-US\">v. <i>State of Kerala, <\/i><\/span><b><span lang=\"EN-US\"><a href=\"http:\/\/www.scconline.com\/LoginForNewsLink\/2015_SCC_OnLine_SC_813 \">2015 SCC OnLine SC 813<\/a><\/span><\/b><span lang=\"EN-US\">, decided on 14.09.2015<\/span><span lang=\"EN-US\">]\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court: In the present case where the dispute arose relating to the claim of solatium for the enhanced amount of compensation 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