SPECIAL LAND ACQUISITION OFFICER vs PUTTAIAH .

The Supreme Court held that under Section 30 of the Land Acquisition Act, 1894, if a dispute arises regarding the apportionment of compensation, the Collector must refer the matter to the Court and deposit the compensation amount therein. The Court clarified that the liability of the State to pay interest on the compensation ceases upon deposit, thus overturning the High Court's direction to pay interest at 9% from the date of deposit until the reference decision. The appeal was allowed, and the High Court's decision was set aside.