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Ravi Prakash Sharma v. State of U.P.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 9337 of 2016)Decided 19 Sept 2016
Civil Appeal No. 9337 of 2016
Justice Kurian Joseph · Justice Rohinton Fali Nariman

Background

The appellant's agricultural land was acquired, and a Reference Court fixed compensation at Rs. 7,840 per bigha with 30% solatium and 12% annual interest. The appellant approached the Supreme Court seeking a further enhancement of this compensation amount.

Decision Breakdown

The Court found that in comparable cases that had already attained finality, the compensation fixed was actually lower than what the appellant had already received from the High Court, so no further enhancement of the land value itself was warranted. However, the Court held that the interest rate awarded by the Reference Court (12% flat) was incorrect under Section 28 of the Land Acquisition Act, 1894, and modified it to 9% per annum for the first year from dispossession and 15% per annum thereafter until payment/deposit.

Lesson Learnt

Even when a claim for a higher land value fails, courts will still correct the statutory interest rate applied to compensation: land acquisition interest isn't a flat rate but follows a specific formula (9% for the first year, 15% thereafter) under Section 28 of the Act.

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

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