UNION OF INDIA versus SHRI RAM MEHAR & ANR.

Citation: [1973] 2 S.C.R. 720 · Decided: 26-10-1972 · Supreme Court of India · Bench: A.N. GROVER · Disposal: Case Partly allowed
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Judgment (excerpt)

720 
UNION OF INDIA 
v. 
SHIU RAM MEHAR & ANR. 
October 26, 1972 
[A. N. GROVER. K. K. MATHEW AND A. K. MUKHERJEA, JJ.] 
Lant/ Acquisition (Amendment and Validation) Act 1967-S. 4(3)-
Wh11her interest n'a.t payable on the 1narket value of the land acquired, 
und t1U·o 011 rhc• c11110111u of 15 t'/b payable on such marktt 1·alue under Sub. 
S. ( 2) of t/Je Stctimr. 
· 
Section 4(3) of the Land Acquisition (Amendment and Validation) 
Act, 1967 pr<1vides that where acquisition of any. particular land has been 
mJde under the Land Acquisition Act 1894, a, simple interest at the rate 
of six per cent per annum on the market value Of such lanJ as determined 
under S. 23 of the Land Acquisition Act 1894 from the date of exriry 
of three years to the drle of tender of payment of oompensation, shat be 
paid and Section 23 (I) of the La Ad Acquisition Act provides for the 
various factors to be considered· by Coun in determining the. amount of 
compensation;. such as, the market value of the land at the date of pub-
lication. under S. 4 of tho Act, the damage susmined by the person etc., 
and s, 23(2)- providft> that· in addition, to the .market value of the land, 
the Court shall, award in· every case, a sum of 15% on such market value 
for compulsory acquisition. 
On a question· whether interest was payable under S. 4(3) of the 
Amending Act, not. only on the market value of the land as determined 
under s. 23(1); but also on the additional amount of 15% (solatium) 
payable. on such market value under Sub. Section (2) of that Section,, 
HELD': (I) The additional amount of 15% cert .. inly forms part of 
the. amount of compensation because under S. 23, the compensation is to 
consist of what is provided' for in Sub-section (I); plus the additional 
amount 
of 
15% 
on 
the market 
value 
of the 
land 
acquired. 
But 'compensation' and 'm&rket value' are distinct expressions and have 
been used as such in the Land Acquisition Act. The key to the meaning 
of the word "compensation" is to be found in S. 23(1) and it consists 
of the market value of the land and the sum of 15% of such market 
value, which is stated to be the consideration for the compulsory nature 
of the acquisition. 
Market value is, therefore, only one of the compo-
nents in the determination of the amount of compensation. If the legis-
lature has used the word "market value"' in S. 4(3) of the Amending Act, 
it must be held that it was done deliberately and what was intended was 
that interest should be pay&ble on the market value of the land and not 
on the amount of compensation. [725F] 
. Raja Vyringlrar/a Narayana Gajapatiraju v. The Revenue Divisional 
Officer, Vizagapatam 66 I.A. 104; Clraturbhuj Pa11dri & Ors. v. Collector, 
Rajgarh L1969J 1 S.C.R. 412; Sub-Col/ector of Godavari v. Saragam I.LR. 
30 Mad. 151 and Krishna Bai v. The Secretary o} State for India in Coun-
cil; I.L.R. 42 All. 555 referred to. 
Union of India v. Natlru R.F.A. 104 of 1968 decided on 21-12-68 
of the IDelhi High Court is over-ruled. 
CIVIL APPLLLATE JURISDICTION : 
Civil Appeal No. 1014 
of 1971. 
Appeal by special leave from the judgment and order dated 
Decemher 24,.1970 of the Delhi High Court at New Delhi in R.F. 
No. 279 of i 969. 
A 
B 
c 
D 
E 
F 
G 
II 
A 
B 
c 
D 
E 
F 
G 
11 
UNION v. i. R. MEHAR (Grover, /.) 
721 
L. N. Sinha, Solicitor-General of India, S. N. Prasad a.,d 
R. N. Sw:htile.y, for the appellant. 
V. C .. i\fahajcm, for the respondents. 
The J udgme;it of the Court was delivered by 
GROVER, J. 
The sole point for deter.nination in this appeal 
bly special leave from a judg;nent of the Delhi High Court relates 
to the true meaning and constru..:tion of the expression "market 
value" employed in s. 4(3) of the Land Acquisition (Amendment 
and Validation) Act, 1967, hereinafter called the 'AmcndinJ!: Act'. 
The facts may be briefly stated. By a notification dated 
October 24, 1961 issued under s. 4 of the Land A~quis1tion Act 
1894, 'hereinafter called the 'Principal Act' certain land in the 
revenue estate of Shakurpur was sought to be acquired,. The Land 
Acquisition Collector gave an award dated March 1,.1967 faing 
compensation at the rate of Rs. 3500 per Bigha .. The respondents 
being dissatisfied with the award applied for a ref ere nee under 
s. 18 of the Principal Act claiminl! enhancement in compc;:'.<;.it1on. 
The Additional District Judge held that the market value ot the 
land on the relevant date was Rs 5,000 per Bigha and th•; 
claimants wer
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