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PETITIONER: ABDUL AZIZ ABDUL RAZAK & ANR.

       Vs.

RESPONDENT: THE MUNICIPAL CORPN. OF GREATERBOMBAY & ANR.

DATE OF JUDGMENT:       15/02/1996

BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. G.B. PATTANAIK (J)

CITATION:  1996 AIR 1350            JT 1996 (3)   377  1996 SCALE  (2)906

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      Leave granted. We have heard the counsel on both sides.      Notification under Section 4(1) of the Land Acquisition Act 1  of 1894  was published  in 1981  and the  award under Section 11  was made on May 9, 1984 awarding compensation at the rate  of Rs.110/- per sq. yd. On reference under Section 18 the  learned single  Judge enhanced  the compensation  to Rs.300/ per  sq. yd.  by award and decree dated February 19, 1992 but  disallowed  interest  in  view  of  the  agreement between the  parties. Dissatisfied  therewith, the appellant has come  forward with  this appeal by special leave against the order  of the  High Court  dated July 14, 1994 in Appeal No.114/92.      The  only   question  is  whether  the  appellants  are entitled to  the interest as amended under the Amendment Act 68 of  1984. Admittedly,  the appellants had entered into an agreement and the relevant part thereof reads as under:      "That the  Corporation shall pay an      amount   of   Rs.98,480/-   (Rupees      Ninety Eight  Thousand Four Hundred      Eighty   only)   being   2/3rd   of      compensation to  be  calculated  at      the interim  rates of  Rs.40/-  for      the said property more particularly      described  in  the  First  Schedule      hereunder written  on the execution      of this  agreement and  the balance      amount of  the compensation  as may      be   awarded    under   the    Land      Acquisition Act, 1894 shall be paid      to the owners with interest thereon      at the  rate of  4% per  annum from      the date of possession."      A reading  thereof clearly  indicates  that  they  were agreeable for  payment of  a sum  of Rs.98,480/-  only being

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2/3rd of  the compensation  to be  calculated at the rate of Rs.40/- per sq. yd. more particularly described in the First Schedule on  execution of  the agreement.  For  the  balance amount they  requested the authorities to award compensation under the  Act, But  they contracted for payment of interest at the rate of 4% per annum from the date of possession.      Sub-section (2)  of Section  11 of  the  Act  rends  as under:      "(2)    Notwithstanding    anything      contained in sub-section (1), if at      any stage  of the  proceedings, the      Collector is satisfied that all the      persons interested  in the land who      appeared before  him have agreed in      writing  on   the  matters   to  be      included  in   the  award   of  the      Collector in the form prescribed by      rules  made   by  the   appropriate      Government, he  may, without making      further  enquiry,   make  an  award      according  to  the  terms  of  such      agreement."      Therefore, notwithstanding  anything contained  in sub- section (1),  the Land  Acquisition Officer  is entitled  to award interest  as per  the contract  entered  into  by  the authorities. Though  the Amendment  Act has  come into force giving benefit  of enhanced rate of interest, the appellants are not entitled to the enhanced interest by virtue of their contract.      The appeal is accordingly dismissed. No costs.