RB DEALERS PRIVATE LIMITED versus THE METRO RAILWAY, KOLKATA

Citation: [2019] 8 S.C.R. 1142 · Decided: 17-07-2019 · Supreme Court of India · Bench: ARUN MISHRA
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Judgment (excerpt)

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SUPREME COURT REPORTS
[2019] 8 S.C.R.
RB DEALERS PRIVATE LIMITED
v.
THE METRO RAILWAY, KOLKATA
(Special Leave Petition (Civil) No. 14078 of 2019)
JULY 17, 2019
[ARUN MISHRA AND M. R. SHAH, JJ.]
Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitization and Resettlement Act, 2013 – s.30 (1)
and (3) – Metro Railways (construction of works) Act, 1978 – Lands
owned by petitioner were acquired for the purpose of construction
of the Metro railway – Petitioner claimed compensation under the
provisions of the 2013 Act – The competent authority awarded
Rs.1,48,29,312 towards the market value and a sum of Rs.6,75,526/
- on account of value of structure – However, appellate authority
enhanced the amount of compensation and awarded a sum of
Rs.6,20,52,215/- on account of market value of structure, a further
sum at the rate of 12% p.a.  on market value in terms of sub-s. (3)
of s.30 of the Act, 2013 and a solatium @ 100% on the total
compensation i.e. total award of Rs.9,94,18, 980/— – Aggrieved,
Metro Railways preferred application u/Art.227 – High Court held
that the solatium payable under sub.s.(1) of s.30 has to be calculated
only on the market value of the land acquired and the assets and
not on the total arrived at upon assessing the market value with
additional 12% p.a. – Consequently, High  Court directed to reassess
the total amount payable – On appeal, held: S.28 of the Act provides
for parameters to be considered by the Collector in determining the
compensation to be awarded for the land acquired, which includes
the market value as determined u/s.26 of the Act and other
parameters, but does not include the amount calculated and payable
under sub-s.(3) of s.30 of the 2013 Act – Also, on fair reading of
the 2013 Act, namely, ss.26 to 30, the High Court rightly observed
that solatium amount to be determined and calculated under sub-
s.(1) of s.30 of the 2013 Act shall be equivalent to 100% of the
market value determined u/s.26 of the Act plus the value of all assets
attached to the land i.e. the total amount of compensation and shall
   [2019] 8 S.C.R. 1142
1142
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not include an amount calculated at the rate of 12% p.a. on such
market value  payable under sub-s.(3) of s.30 of the 2013 Act –
Thus, Special leave petitions dismissed.
Dismissing the Special Leave Petitions, the Court
HELD: Whether the solatium as contemplated under sub-
section (1) of Section 30 of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitization and
Resettlement Act, 2013, has to be calculated only on the market
value and the assets thereon or the sum total of the market value,
the assets and 12% per annum on the market value stipulated
under sub-section (3) of Section 30 of the 2013 Act?
While considering the aforesaid question, the relevant
provisions of the 2013 Act and the scheme for determination of
the amount of compensation for the land acquired are required
to be referred to and considered.  The relevant provisions of the
2013 Act are Sections 26, 27, 28, 29 and 30.  Section 26 of the
Act provides for determination of market value of the land by the
Collector.  Section 27 of the Act provides for determination of
the amount of compensation and Section 28 of the Act provides
the parameters to be considered by the Collector in determination
of the award.  Section 29 of the Act provides for determination of
the value of things attached to the land or building.  Section 30 of
the Act provides that the Collector having determined the total
compensation to be paid, shall, to arrive at the final award, impose
a “Solatium” amount equivalent to one hundred per cent of the
compensation amount.  Sub-section (3) of Section 30 further
provides that in addition to the market value of the land provided
under Section 26, the Collector shall, in every case, award the
amount calculated at the rate of 12% per annum on such market
value for the period commencing on and from the date of the
publication of the notification under sub-section (2) of Section 4,
in respect of such land, till the date of the award of the Collector
or the date of taking possession of the land, whichever is earlier.
Therefore, on conjoint reading of the aforesaid provisions and
the scheme of the Act, it is to be seen that before the final award
is passed by the Collector, the Collector has to determine the
RB DEALERS PRIVATE LIMITED v. THE METRO RAILWAY,
KOLKATA
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SUPREME COURT R
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