LexPRIYA VART AND ANR. versus UNION OF INDIA
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PRIYA VART AND ANR. ·A v. UNION OF INDIA AUGUST 7, 1995. [K. RAMASWAMY AND B.L. HANSARIA, JJ.) B Land Acquisition Act, 1894 : Compensation-Detennination of-High Court detennined-Compen- sation taking into account that the land is situated interior-Held: Campen- C sation awarded was just and fair. S.28-Award of enhanced interest and interest on enhanced solatium-Held : Not entitled to since pendency for . appeals in High Court or Supreme Court is not a ground for making further enhancement. Large extent of lands in three villages including Khyala were ac- D quired for planned development of Delhi. Compensation was determined @Rs. 600, Rs. 400 and Rs. 200 per bigha to various categories of lands. On reference, the District Court enhanced the compensation to a flat rate of Rs. 3,000 per bigha. On further appeal, the High Court further enhanced the compensation to Rs. 10,000 per bigha. Since the petitioners claimed E compensation @Rs. 14,000 per bigha, they preferred the Special Leave Petition contending that as in an earlier case the claimants from other villages had restricted the claim to Rs. 10,000 per bigha; The Court valued the lands at Rs. 10,000 per bigha, though it noted that the lands possessed potentiality to increase compensation of Rs. F 14,000 per bigha and therefore the petitioners were entitled to Rs. 14,000 per bigha. Dismissing the Special Leave Petition, this Court HELD: 1. The High Court in the impugned judgment had noted that G the entire village Tatarpur is located adjacent to Nazafgarh-Delhi Road but the lands in Khyala are far interior to the lands in Tatarpur village. The lands of the village Khyala start from northern boundary of village Tatarpur and the acquired land is farther away towards north from the road. In view of these facts it was found that determination of the com pen- H 563 564 SUPREME COURT REPORTS [1995] SUPP. 2 S.C.R. A sation at Rs. 10,000 was just and fair. In view of the distinguishing features explained by the High Court, there is no justification to further enhance the compensation. (565-D] B c 2. The claimants would be entitled only to interest and solatium if their cases are pending from the date of notification till the date of decision by the Reference Court between April 30, 1982 and September 24, 1984 and the pendency of the appeals in the High Court or this Court would not be a ground for making further enhancement. (565-H; 566-A] Union of India v. Raghubir Singh, [1989] 2 SCC 754, followed. Urned Industries & Land Development Co. & Ors. v. State of Rajasthan and Ors., (1995) 1 Scale 309 and SA. Jain College Tmst v. State of Haryana and Anr., [1995] 3 SCC 74, referred to. 3. When the statute prescribed interest @6% per annum, it neces- D sarily means only simple interest and not compound interest and pendency of proceedings is no ground to award compound interest. When the Act . prescribes payment of interest at a particular rate, it needs to be awarded at the rate prescribed and in no other way. (566-D] CIVIL APPELLATE JURISDICTION: Special Leave Petition (C) E No. 15806 of 1995. F From the Judgment and Order dated 16.9.1994 of the Delhi High Court in R.A.F. No. 208 in 1975. Mahabir Singh for the Petitioner. The following Order of the Court was delivered : The notification under Section 4(1) of the Land Acquisition Act, 1894 (for short, 'the Act') acquiring large extent of lands in three villages G including Khyala for planned development of Delhi, was published on 3rd September, 1957. The Land Acquisition Collector by his award dated 31st August 1961, determined the compensation @Rs. 600 Rs. 400 and Rs. 200 per bigha to various categories of lands. On reference, the District Court by its award and decree dated i9th March, 1975 enhanced the compensa- tion at flat rate of Rs. 3,000 per bigha. On further appeal, the High Court H in the impugned judgment dated 16th September, 1994 further enhanced PRIYA V ART v. U.0.I. 565 the compensation to Rs 10,000 per bigha. Since the petitioners claimed A compensation @Rs. 14,000 per bigha, the special leave petition has been filed for the difference of the amount. Shri Mahabir Singh, learned counsel for the petitioners contends that as in an earlier case the claimants of other villages, viz., Tatarpur and Basaidarapur had restricted the claims to Rs 10,000 per bigha, the Court having noted that the lands possessed potentiality to increase compensation
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