#statutory interest

The Bombay High Court ruled that when no transactions of vacant land exist, compensation may be determined using sales of built-up properties, provided the land value is isolated and adjusted for structural, location, and usage differences. This sets a critical precedent for landowners and acquisition authorities in urban areas where open land sales are scarce, shifting valuation away from rigid Ready Reckoner rates toward market-driven, evidence-based assessments.

Madras High Court rules that insurers under the Employees' Compensation Act, 1923, must pay 12% statutory interest on delayed compensation, even if the policy excludes it, provided the accident was reported on time. The ruling reinforces that statutory obligations override contractual exclusions, directly impacting insurers' liability in workmen compensation claims.

Gauhati HC clarifies that interest under Section 16 of the MSME Act must be calculated monthly at three times the RBI rate prevailing at the end of each month, not a fixed rate from the appointed day. The ruling eliminates the need for prior conciliation for repeated claims, strengthening MSMEs' recovery rights against delayed payments.

Chhattisgarh High Court rules that statutory interest under the National Highways Act is payable from the date of possession, irrespective of omissions in the award or NHAI’s administrative delays. The judgment reinforces that landowners are entitled to timely compensation, and public authorities cannot evade liability due to internal procedural failures.

The Sikkim High Court has ruled that statutory interest under Section 171 of the Motor Vehicles Act is not an ancillary award but an integral component of just compensation, requiring inclusion even when compensation is recalculated on appeal. This clarifies a critical oversight in appellate awards and ensures claimants receive full statutory entitlements, impacting insurers, claimants, and tribunals nationwide.

MP High Court rules that payment of the principal refund amount constitutes substantial compliance, terminating contempt proceedings. However, interest claims must be pursued independently through statutory remedies, as they do not form part of the original court order.

Madhya Pradesh High Court reaffirms that MSMEs are entitled to statutory interest under Section 16 of the MSMED Act, 2006, on delayed payments, regardless of government fund constraints. The court directed the state to clear outstanding dues within one month, setting a precedent for enforcement of MSME rights against public bodies.

The Bombay HC mandates that government acquiring bodies must immediately assign panel advocates to old pending land acquisition appeals when original representatives leave or retire, failing which statutory interest at 15% or 9% per annum continues to accrue, causing massive public financial loss. This ruling enforces departmental accountability and closes a systemic loophole that has left hundreds of cases unrepresented for over 20 years.

Calcutta High Court holds that statutory interest under Section 34 of the Land Acquisition Act, 1894 accrues from dispossession, irrespective of litigation delays caused by third parties.

Chhattisgarh High Court holds insurers cannot deny liability for deceased agricultural labourers without proving policy breach; burden lies on insurer.

Calcutta High Court holds that gratuity payable upon retirement must be disbursed in full without installments, with statutory interest from due date.