The
State of Gujarat & Anr Vs. Devrajbhai Chhaganbhai
& Ors [1996] INSC 912 (7 August 1996)
K. Ramaswamy,
G.B.Pattanaik
ACT:
HEAD NOTE:
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.
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