SUNDER vs U.O.I.

The Supreme Court addressed whether the State is liable to pay interest on the solatium amount under Section 23(2) of the Land Acquisition Act, 1894. The Court clarified that interest under Sections 28 and 34 of the Act is applicable only to the market value of the land and not to the solatium, establishing that solatium is a separate component of compensation. The judgment upheld the interpretation that solatium should be excluded from the calculation of interest, resolving a conflict with previous decisions.