Union Of India vs P.S. Dayal Prasad And Anr

The Supreme Court held that the High Court erred in awarding 15% solatium and 6% interest under the Requisitioning and Acquisition of Immovable Property Act, 1952, as the provisions for solatium and interest cannot be applied from the Land Acquisition Act, as established in Union Of India v. Hari Krishan Khosla, 1993 Supp (2) SCC 149. However, the Court upheld the grant of 6% interest on the enhanced compensation due to the delay in appointing the competent authority. The appeal was partly allowed, setting aside the solatium award but maintaining the interest granted by the High Court.