STATE OF MAHARASHTRA vs

The Supreme Court addressed the issue of whether the Bombay High Court was justified in directing the payment of interest on rental compensation under the Land Acquisition Act, 1894. The Court upheld the High Court's decision, stating that the non-payment of rental compensation within the prescribed time constituted deprivation of property without due compensation, as per Sections 17(3-A), 23(1-A), and 28 of the Act. The Court affirmed that landowners are entitled to claim both rental compensation and interest, with the interest rate set at 12%.