2010 (12) TMI 1343 - HC - Indian Laws

Summary

Issues Involved:
1. Entitlement to interest on solatium u/s 34 of the Land Acquisition Act.
2. Whether the petitioners are estopped from claiming interest on solatium.
3. Appropriate forum for deciding the entitlement to interest on solatium.

Summary:

1. Entitlement to interest on solatium u/s 34 of the Land Acquisition Act:
The petitioners filed a Notice of Motion claiming interest on solatium while receiving compensation for lands acquired for Defence purposes. The petitioners argued that they were entitled to interest on solatium u/s 34 of the Land Acquisition Act, citing the Supreme Court's judgment in Sunder V/s. Union of India (2001) 7 SCC 211, which held that solatium forms an integral part of compensation and interest is payable on it. The Court acknowledged that solatium is part of the compensation and if interest is payable under Section 34, the landholder is entitled to it. The Court referred to the statutory duty of the Collector to compute and pay compensation inclusive of statutory allowances and interest.

2. Whether the petitioners are estopped from claiming interest on solatium:
The respondents contended that the petitioners were estopped from claiming interest on solatium as they did not raise this issue before the Apex Court or during the acceptance of compensation in the Contempt Petition. The Court rejected this argument, noting that the petitioners had claimed interest on solatium in a letter dated 21-12-1998 and accepted compensation under protest. The Court emphasized that the statutory provisions entitle the petitioners to claim interest on solatium, and the failure to raise the issue earlier does not preclude them from doing so now.

3. Appropriate forum for deciding the entitlement to interest on solatium:
The Court considered whether it should decide the entitlement to interest on solatium or remand the matter to the Collector. The Court concluded that the Collector, being statutorily obliged, should decide the entitlement and quantify the interest payable. The Court directed the Special Land Acquisition Officer (SLAO) to hear the petitioners and the respondent's representative and decide the issue within six weeks from 20-12-2010. The Court also allowed the withdrawal of Writ Petition No.1912 of 2010 with liberty to file a fresh petition and noted the withdrawal of Contempt Petition No.72 of 2010 in light of the order.

Directions:
1. The SLAO is directed to decide the petitioners' entitlement to interest on solatium u/s 34 of the Act.
2. The petitioners and respondents may present relevant material and judgments.
3. The SLAO to decide the issue within six weeks from 20-12-2010, with cooperation from both parties.

Additional Orders:
- Writ Petition No.1912 of 2010 is withdrawn with liberty to file a fresh petition.
- Contempt Petition No.72 of 2010 is withdrawn.