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GURPREET SINGH versus UNION OF INDIA

Citation: [2006] SUPP. 7 S.C.R. 422 · Decided: 19-10-2006 · Supreme Court of India · Bench: Y.K. SABHARWAL, K.G. BALAKRISHNAN, S.H. KAPADIA, C.K. THAKKER, P.K. BALASUBRAMANYAN · Disposal: Reference answered

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Judgment (excerpt)

A 
, GURPREET SINGH 
v. . 
UNION OF INDIA · 
OCTOBER 19,2006 
[Y.K. SABHAR WAL, CJI, K.G. BA LA KRISHNAN, S.H. KAPADIA, C.K. 
THAKKER AND P.K; BALASUBRAMANY AN, JJ.] 
.. 
· Land Acquisition Act, 1894-Sections 23(/), 23(/A), 28 and 34 (is · 
C amended byAct 68 of 198~): · . 
• ' 
· 
" . 
. 
Compensation-Rule of appropriation-Applicability of-To the cases 
of award under the Act-In Prem Nath Kapur's case held that liability to pay·. 
interest was only on the excess amount of compensation and rule of 
appropriation under Order XX/ Rule I CPC stood excluded by Section 28 
D and 34 of the Act-Validity of the judgment on the question of appropriation 
referred to Constitution Bench-Held: The ratio in Prem Nath Kapur on the 
aspect of appropriation is appraved-Decree holder not entitled to reopen · 
the entire transaction to claim a reappropriation . of the amounts already 
received and appropriated at that particular stage merely because appellate 
court has enhanced the compensation-Appropriation would be at different 
E stages-Award. of interest is confined only _to the excess compensation 
awarded-But if there is any shortfall at any stage, rule of appropriation can 
be applied in respect of that excess amount-Doctrine of merger not applicable 
in such case-Code of Civil Procedure, 1908-0rder XX/ Rule I. . .. 
F 
Interest on solarium-Whether payable-By Execution Court-
Constitution Bench of Supreme Court holding that. compensation includes 
solatiu~Held: 'if claim for interest on solarium is negated by the court i~ :. 
reference or in ·appeal, 'execiition COZfrl 'cannot grant the same as it cannot 
go behind the decre~But if such claim is not negated.. the same can be 
granted by execution court by applying ratio of Constitution Bench judgment-
G Such interest on solarium can be granted only in pending execution permitting 
its recovery from the date of judgment of Constitution Bench-Constitution 
of India, 1950-Articles 141 and 142 . . .. 
Doctrines: 
H 
422 
GURPREET SINGH v. U.0.1. 
423 
Rule of appropriation-Explained 
A 
Doctrine of merger-Applicability of 
Words and Phrases-'Appropriation'-Meaning of 
The questions for consideration in the present appeals are whether the B 
rule of appropriation in execution of money decrees is the same in the case of 
an award decree under Land Acquisition Act, 1894 as in the case of money 
decree, or the provisions of Land Acquisition Act as amended by Land 
Acquisition (Amendment) Act (Act 68of1984) make that rule inapplicable 
or not wholly applicable; and that whether interest can be claimed on solatium 
in execution, though not specifically granted by the decree. 
C 
In Prem Nath Kapur and Anr. v. National Fertilizers Corporation of 
India Ltd. and Ors., (1995) Suppl. 5 SCR 790, a three Judge Bench of the 
Supreme Court had held that the expression 'compensation' under Section 
23(1) of the Act as amended by Act 68of1984 read in the context of Section D 
28 or 34 thereof, by necessary implication excludes solatium or on the 
additional amount under Section 23 (IA) and liability to pay interest was only 
on the excess amount of compensation determined under Section 23 (l ); and 
that normal rule of appropriation contained in Order XXI Rule l CPC 
relating to execution of decrees for recovery of money, stands excluded by 
Sections 28 and 34 of the Act in execution of award of decrees of the Act. The E 
Constitution Bench of Supreme Court in Sunder v. Union of India, [20011 
Suppl 3 SCR 176 overruled the view as regards the content of the expression 
'compensation' occurring in Section 23 (1) and Section 28 of the Act, but the 
aspect of mode of appropriation of the amount due under an award decree was 
not dealt with. 
When the question as regards the rule of appropriation was raised in 
this case before 3 Judges Bench, the same was referred to Constitution Bench 
to consider whether the judgment in Prem Nath Kapur would survive the 
reasoning in Sunder's case. 
Answering the questions, the Court 
HELD: l.l. A claimant or decree holder who has received the entire 
F 
G 
a mount awarded by the reference court or who had notice of the deposit of the 
entire amount so awarded, cannot claim interest on the amount he has already 
received merely because the appellate court has enhanced the compensation H 
424 
SUPREME COURT REPORTS (2006] SUPP. 7 S.C.R. 
A and has made payable additional compensation. Such a blanket re-opening of 
the transaction is not warranted even in respect of

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