UNION OF INDIA vs AJAIB SINGH .

The Supreme Court addressed the issue of compensation under the Requisitioning and Acquisition of Immovable Property Act, 1952, specifically examining the validity of the arbitrator's award of compensation at Rs.500/- per Marla, along with solatium at 30% and interest rates of 9% for the first year and 15% thereafter. The Court held that the Government was not at fault for the delay in appointing the arbitrator, and since the compensation amount had been accepted without dispute, the award of solatium and interest was not justified. Consequently, the Court set aside the arbitrator's award regarding solatium and interest, emphasizing the need for a valid basis for such awards under the Act.