Full Judgment Text
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CASE NO.:
Appeal (civil) 520 of 2008
PETITIONER:
Ram Narayan Gupta
RESPONDENT:
State of M.P.
DATE OF JUDGMENT: 18/01/2008
BENCH:
ASHOK BHAN & AFTAB ALAM
JUDGMENT:
JUDGMENT
O R D E R
CIVIL APPEAL NO.520 OF 2008
[Arising out of S.L.P.(C)No.18158 of 2005]
Leave granted.
This appeal has been filed by the claimant-landholder.
Land Acquisition Officer (LAO) awarded compensation at the rate of Rs.3000/- per
bigha. In addition, solatium @ 10% and interest @ 6% p.a. was also awarded by the
LAO. On reference, the Reference Court determined the potential value of the land at the
rate of Rs.1/- per sq.ft. and accordingly determined the value of the land at Rs.85,500/- .
Out of the said amount, 40% of the amount, viz., Rs.34200/- was deducted towards
development charges. Thus, an amount of Rs.51,300/- came to be awarded as
compensation. However, the Reference Court, instead of granting solatium at the rate of
30% and statutory interest, maintained the solatium and interest granted by the LAO.
Appellant-claimant filed an appeal before the High Court in which he did not challe
nge
the amount of compensation awarded. Only challenge was for enhancement of solatium
and
C.A.No.520/08 .... (Contd.)
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interest. Appellant claimed solatium at the rate of 30% and interest at the rate of 15%
p.a. The High Court partly allowed the appeal and increased the solatium @ 30% but
maintained the interest @ 6% p.a.
Claimant, being aggrieved, has filed this appeal for enhancement of interest.
Counsel for the appellant submitted that the courts have erred in granting interest
at
the rate of 6% p.a. There is no reason for not awarding interest at the rate provided under
the Statute. That there was no discretion with the court to award interest at a rate lower
than what was provided under the Statute.
We agree with the contention raised by the counsel for the appellant and accordingly
,
modify the judgment of the High Court and direct that the appellant be paid statutory
interest at the rate of 9% p.a. for the first year and thereafter at the rate of 15% p.a.
The appeal is allowed accordingly.