UNION OF INDIA vs PARMAL SINGH .

The Supreme Court addressed the issue of whether interest could be awarded on compensation for land acquired under the Defence of India Act, 1962. The Court held that while the Act does not explicitly provide for interest or solatium, it can be awarded on equitable grounds in cases of inordinate delay in payment. The Court upheld the High Court's enhancement of compensation to Rs.3.60 per sq. yd. but clarified that the award of interest at 6% per annum was permissible due to the delay in payment, referencing prior cases such as Union of India Vs. Hari Krishan Khosla and Union of India Vs. Chajju Ram.