08 August 1996
Supreme Court
Download

THE STATE OF GUJARAT & ANR. ETC. Vs DEVRAJBHAI CHHAGANBHAI & ORS. ETC.WITHCIVIL APPEAL NO.10676

Bench: K. RAMASWAMY,G.B.PATTANAIK


1

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 1  

PETITIONER: THE STATE OF GUJARAT & ANR. ETC.

       Vs.

RESPONDENT: DEVRAJBHAI CHHAGANBHAI & ORS. ETC.WITHCIVIL APPEAL NO.10676

DATE OF JUDGMENT:       07/08/1996

BENCH: K. RAMASWAMY, G.B.PATTANAIK

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      Leave granted in SLP.      The only  question  that  arises  in  these  cases  is: whether the  respondents, having  agreed under Section 11(2) of the  Land Acquisition Act, 1894 (for short, the ’Act’) to payment of  the compensation  in terms  of the  agreement  @ Rs.140/- per  guntha besides  the additional compensation at the rate  of 20%  on account  of development of the land and solatium @ 15% and interest prevailing as on that date, were entitled to  claim the benefit under the Amendment Act 68 of 1984? This  Court in  State Gujarat  & Ors.  vs. Daya Shamji Bhai &  Ors. [(1995)  5 SCC  746]  considered  the  question elaborately and  held that  the parties  having entered into the  agreement   under  Section  11(2)  were  bound  by  the agreement and thereby, they were not entitled to any benefit other than  what was  agreed upon. Therefore, the High Court was not  right in  the impugned  order passed  in the review petition in  allowing the  enhancement under  the  Amendment Act. It is sought to be contended by the learned counsel for the respondents  that under clause 16 of the agreement since there is  no agreement  as regards the rate of interest, the claimants are  entitled to  statutory rate of interest under Section 28  as  amended  in  Act  68  of  1984.  We  do  not appreciate the  contention to  be  correct.  Parties  having agreed to  the payment  of  interest  on  the  date  of  the contract, the  rate of  interest admittedly payable being 4- 1/2%, they are entitled to interest at 4-1/2% and not to the enhanced rates  under proviso  to Section  28 of the Act, as amended by Act 68 of 1984.      The  appeals  are  allowed  and  order  in  the  review petition  stands   dismissed  but   original  order   stands confirmed. No costs.