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Issues involved: Determination of interest payable on compensation awarded for land acquisition u/s Land Acquisition Act.
Summary: The Supreme Court heard an appeal challenging the High Court's order determining interest on compensation for land acquisition. The land Acquisition officer initially awarded a sum as compensation, which was later increased by the District Judge and further by the High Court. The High Court awarded interest at 4% per annum on the enhanced compensation amount. The appellants sought a review, citing an amendment increasing the interest rate to 6% u/s Haryana Act No. 8 of 1967. The High Court ruled in favor of the appellants, applying the higher interest rate. However, an inconsistency arose in the High Court's judgment regarding the interest rate on the enhanced compensation amount. The Supreme Court held that the right to compensation arises when the land is acquired, and the quantification process is separate. Therefore, the appellants were entitled to interest at 6% per annum on the enhanced compensation amount from the date possession was taken. The appeal was allowed, modifying the High Court's order, and costs were awarded to the appellants.
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