UNION OF INDIA vs SHRI RAM MEHAR & ANR.

The Supreme Court interpreted Section 4(3) of the Land Acquisition (Amendment and Validation) Act, 1967, determining that interest is payable only on the market value of the land as per Section 23(1) of the Land Acquisition Act, 1894, and not on the additional 15% solatium. The Court clarified that 'compensation' and 'market value' are distinct terms, emphasizing that the legislature's choice of wording in Section 4(3) was deliberate. The judgment overruled the Delhi High Court's decision in Union of India v. Nathu, R.F.A. 104 of 1968, affirming the interpretation of compensation under the Act.