TAMIL NADU HOUSING BOARD versus ABDUL SALAM SARKAR (DEAD) AND OTHERS

Citation: [2021] 1 S.C.R. 662 · Decided: 13-01-2021 · Supreme Court of India · Bench: D.Y. CHANDRACHUD · Disposal: Disposed off

Judgment (excerpt)

A
B
C
D
E
F
G
H
662
SUPREME COURT REPORTS
[2021] 1 S.C.R.
   [2021] 2 S.C.R. 374
662
TAMIL NADU HOUSING BOARD
v.
ABDUL SALAM SARKAR (DEAD) AND OTHERS
(Civil Appeal No 94 of 2021)
JANUARY 13, 2021
[DR DHANANJAYA Y CHANDRACHUD AND
SANJIV KHANNA, JJ.]
Land Acquisition Act, 1894 – Acquisition of land – Interest
on solatium – Entitlement to – Interpretation of Constitution Bench
judgment in Gurpreet Singh case – Direction of High Court to the
effect that claimants-respondents would be entitled to move an
application for interest on solatium in view of the judgment in
Gurpeet Singh Case– Held: Justified – On facts, claim for interest
on solatium had not been rejected by the reference court – High
Court had held that the issue as to whether interest on solatium
would be granted would depend on the outcome of the proceedings
pending before Supreme Court in Gurpreet Singh case – Liberty was
thus granted by the High Court to institute proceedings before the
Sub Court after the matter was resolved in Gurpreet Singh case –
Gurpreet Singh case mandates a test that interest on solatium would
be payable if the reference court has either not referred to it or has
not rejected it expressly or by necessary implication, and the claim
can only be made in pending execution proceedings. – Hence, on
facts, inter parties, respondents entitled to apply for grant of interest
on solatium, though the earlier execution petition was closed  since
their claim had not been rejected at any antecedent stage and had
been kept open – Reference court to verify the computations and to
pass appropriate orders – In terms of the judgment in Gurpreet Singh
case, interest on solatium payable w.e.f date of judgment in Sunder
vs Union of India (19 September 2001).
Disposing the appeal, the Court
HELD:1.1. Gurpreet Singh case mandates a test that
interest on solatium would be payable if the reference court has
either not referred to it or has not rejected it expressly or by
necessary implication. Moreover the claim can only be made in
pending execution proceedings [Para 8][666-B-C]
1.2. In the present case, the claim for interest on solatium
had not been rejected by the reference court. In appeal arising
from decision of reference court, the High Court observed that
since the matter was pending before a larger bench of the Supreme
Court in Gurpreet Singh case, the issue as to whether interest on
   [2021] 1 S.C.R. 662
A
B
C
D
E
F
G
H
663
solatium would be granted would depend on the outcome of those
proceedings and it would be open to the claimants to move an
application before the Sub Court. The liberty which was granted
by the High Court to institute proceedings before the Sub Court
after the matter was resolved by Supreme Court in Gurpreet Singh
case was the subject matter of a Special Leave Petition. The
judgment of the High Court was affirmed by the dismissal of the
Special Leave Petition. The review petition by the Revenue
Divisional Officer was also dismissed. It was only after the
judgment of the Court in Gurpreet Singh, that the respondents
moved an application for the grant of interest on solatium. Hence,
inter parties, the claimants were entitled to apply for the grant of
interest on solatium, particularly having regard to the fact that
the claim had not been rejected at any antecedent stage and had
been kept open. As a matter of principle, no reason to take any
other view since it is in accord to the judgment in Gurpreet Singh
case.  [Para 8 & 9][666-B-F; 666-G-H; 667-A]
2.1 The submission of the appellant is that the claim was
made in 2008 after the earlier  execution petition was closed and
the original award and enhanced compensation were deposited
and appropriated by the claimant. The claim for interest on
solatium was not rejected and was expressly kept open by
the High Court in its judgment dated 12 July 2001. [Para 9]
[666-F-G]
2.2 The direction of the High Court to the effect that the
claimants-respondents would be entitled to the payment of
interest on solatium is confirmed. Insofar as the exact
mathematical computation is concerned, it would be appropriate
to leave it to the reference court to verify the computations and
to pass appropriate orders. It is clarified that in terms of the
judgment of the Constitution Bench in Gurpreet Singh case,
interest on solatium will be payable with effect from the date of
the judgment in Sunder vs Union of India (19 September 2001).
[Para 10][667-B-D]
Gurpreet Singh v Union of India (2006) 8 SCC 457:
[200

Excerpt shown. Read the full judgment & AI analysis in Lexace.