Sunder vs Union Of India

The Supreme Court addressed whether the State is liable to pay interest on solatium under Section 23(2) of the Land Acquisition Act, 1894. The Court held that solatium is not included in the calculation of interest payable under Sections 28 and 34 of the Act, affirming that 'market value' and 'compensation' are distinct concepts. The judgment clarified that interest is payable only on the market value of the land and not on the total compensation amount, thereby resolving a conflict with earlier decisions.