Delve into the intricacies of a recent court judgment focusing on the grant of interest on solatium. The court’s legal analysis sheds light on key principles applied in determining such claims. Explore the complexities of interest calculations in legal disputes and the significance of court decisions in shaping legal precedents.
Facts
- The High Court upheld the order by which the objections filed by the appellant were disposed of and directed payment to be made by a certain date.
- The dispute pertains to the payment of interest on solatium from the date possession was taken from the 1st respondent, which occurred on 16.06.1990.
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Issue
- The question arises whether the respondent was entitled to interest from the date of being deprived of physical possession or from the date of the judgment in Sunder supra.
- The award in this case was passed on 12.06.1990.
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Arguments
- The appellant contends that the principle established in Gurpreet Singh v. Union of India can be applied in this case
- The appellant argues that interest on solatium should be granted only from the date of the judgment of the Court in question
- The High Court reasoning includes that during the R.F.A. decision, solatium and interest were granted to the respondent landowner.
- The findings have been upheld by the Hon’ble Supreme Court as confirmed by the respondent’s counsel.
- The award granting solatium and interest, although not part of the decree, was upheld by the Hon’ble Supreme Court in a specific order dated 2.1.2014.
- In other cases, landowners contested the Executing Court findings, which were overturned by the High Court in an order dated 21.2.2013.
- The petitioner’s counsel did not dispute these facts presented by the respondent.
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Analysis
- The judgment clarifies that interest is not granted on solatium based on the Award passed.
- The High Court did not grant interest on solatium but provided benefits under Section 23(2) and other statutory benefits.
- If the claim for interest on solatium has been rejected by the Reference Court or appellate court, the execution court cannot grant it.
- Interest on solatium can only be claimed in pending executions, not in closed ones, and can be recovered from the date of the Sunder judgment.
- The execution court cannot reappropriate or freshly appropriate the amount for interest on solatium.
- The High Court judgment is supported by the order passed by the Supreme Court in the case of Central Government of India v. Bakhta & Another etc. (SLP (C)Nos. 21784-21799 of 2013).
- This order provides further justification for the decision made by the High Court in the present case.
- The judgment of the High Court is bolstered by this previous ruling of the Supreme Court.
- The special leave petition filed by the appellant was dismissed.
- The Government of India failed in the special leave petition against the High Court’s judgment in Central Government of India v. Bakhta & Another etc.
- The High Court upheld the Executing Court’s award of interest on solatium from the date of the judgment in the case of Sunder.
- The High Court justified the interest on solatium from September 19, 2001, in the execution proceedings based on legal precedent.
- The special leave petition against the High Court’s judgment was dismissed by the Supreme Court.
- The Executing Court had applied the principle in Gurpreet Singh supra regarding interest on solatium from the date of the judgment in Sunder in the execution proceedings.
Decision
- Civil appeal allowed in terms of the signed reportable order
- Pending application disposed of
- No orders as to costs
- Appeal allowed with leave granted
- Impugned order set aside
- 1 respondent entitled to interest on solatium from the date of Sunder (supra) viz. 19-9-2001
Case Title: CENTRAL GOVT. OF INDIA Vs. RAJ DEVI ALIAS RAJ KUMARI AND ANR. (2021 INSC 383)
Case Number: C.A. No.-004623-004623 / 2021
