(1992) 3 Supreme Court Cases 239 Mir Fazeelath Hussain and Ors. Vs Spl Dy collector, LA Hyderabad

Land Acquisition Act, 1894-Section 28. Land Acquisition (Amendment) Act, 1984-Sections 18 and 30(2)- Applicability of-Award made prior to 30.4.1982-Whether enhanced interest can be granted. Land Acquisition Act, 1894-Sections 11, 23and 26-Award-Contents of-Interest and solatium do not form part of the award-Principles of Equity Applicability of-Does not apply in determining the rate of interest.

Section 28 of the Land Acquisition Act, 1894 was amended by the Land Acquisition (Amendment) Act, 1984 and the interest payable under Section 28 was enhanced. By the same Amendment Act the rate of solatium payable under Section 23(2) of the main Act was also enhanced. Section 30(2) of the Amendment Act of 1984 made the enhanced interest and solatium payable even
in respect of awards of the Collector or the Court made in between 30.4.1982 (the day on which the Amendment Bill was introduced in the House of People) and 24.9.1984 (the date of  commencement of the Amendment Act),
Interpreting Section 30(2) of the Amendment Act of 1984 in so far as it related to solatium, a Constitution Bench of this Court in the case of Union of India v. Raghubir Singh, [1989] 2 SCC 754 held that under the said section the benefit of enhanced solatium extends to case where the award by the Collector of the Reference court was made between 30.4.1982 and 24.9.1984 or to appeals against such awards which were made between 30.4.1982 and 24.9.1984, decided by the High Court or this court whether before or after 24.9.1984.
In the present case, the award of the Collector as well as the Reference court was made prior to 30.4.1982. Even the order of the High Court, by which the High Court had fixed compensation on belt-wise basis, was pronounced on 24.5.1974. On appeal, this court partly allowed the appeal but there was difference of opinion between the two Hon'ble Judges as to whether the appellants were entitled to enhanced interest under Section 18 of the Amending Act of 1984 in view of judgment of this Court in Raghubir Singh's case. Hence, the matter was referred to a larger Bench.
On behalf of the appellants it was argued that (1) Section 30(2) of the Amendment Act deals with awards, and interest is not a part of award; (2) Raghubir Singh's case dealt with payment of solatium and therefore would not be applicable in cases of payment of interest; and (3) the appellants were not claiming enhanced interest retrospectively but from the date of coming in force of Amendment Act (24.9.1984) and therefore, Raghubir Singh's case would not apply.
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