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Defence Estate Officer v. Syed Abdul Saleem

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 3137 of 2010)Decided 2 Feb 2015
Civil Appeal No. 3137 of 2010
Justice Vikramajit Sen · Justice Shiva Kirti Singh

Background

The Central Government requisitioned and then acquired about 4 acres of land in Hyderabad in 1970-71 to set up an Artillery Centre, initially offering compensation of Rs.2 per sq. yard. Dissatisfied landowners sought a statutory arbitrator, but the Government took about 19 years to actually appoint one after the first appointed arbitrator failed to decide the matter in time. The arbitrator eventually enhanced compensation to Rs.6 per sq. yard with 30% solatium and 9% interest, citing the Government's inordinate delay; the High Court further enhanced the rate to Rs.12 per sq. yard while upholding the solatium and interest. The Defence Estate Officer appealed to the Supreme Court, arguing that the 1952 Act (unlike the Land Acquisition Act, 1894) contains no provision at all for awarding solatium or interest.

Decision Breakdown

The Supreme Court held that although the Requisitioning and Acquisition of Immovable Property Act, 1952 does not itself provide for solatium or interest, its own settled precedents, starting with Union of India v. Hari Krishan Khosla and followed in several later rulings, have equitably read in these benefits for landowners in cases of extensive, unjustified delay in completing requisition/compensation proceedings, as a matter of fairness even though the statute is silent on it. Given the Government's own 19-year delay in reappointing the arbitrator, the Court held this was squarely a case warranting that equitable relief, and saw no reason to disturb the High Court's enhancement of compensation or its award of 30% solatium and 9% interest. The appeal was dismissed with costs awarded to the landowners.

Lesson Learnt

Even where a specific law (like the 1952 Requisitioning Act) does not expressly provide for solatium or interest on compensation, courts can still equitably award them to a dispossessed landowner when the government itself has caused extensive, unexplained delay in resolving the compensation dispute.

Official source (sci.gov.in)View Judgment (PDF)

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