Full Judgment Text
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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.