Abdul Aziz
Abdul Razak & Anr Vs. The Municipal Corpn. of Greater Bombay & Anr
[1996] INSC 263 (15 February 1996)
Ramaswamy,
K.Ramaswamy, K.G.B. Pattanaik (J)
CITATION:
1996 AIR 1350 JT 1996 (3) 377 1996 SCALE (2)906
ACT:
HEAD NOTE:
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 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.
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