LexKERALA STATE HOUSING BOARD & ORS. versus KERALA STATE HOUSING BOARD, NELLIKODE HOUSING COLONY ALLOTTEES ASSN. & ORS.
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A B c [2011] 11 S.C.R. 390 KERALA STATE HOUSING BOARD & ORS. v. KERALA STATE HOUSING BOARD, NELLIKODE HOUSING COLONY ALLOTIEES ASSN. & ORS. (Civil Appeal No.7835 of 2011) SEPTEMBER 14, 2011 [R.V. RAVEENDRAN AND A.K. PATNAIK, JJ.] Land Acquisition: Interest on differential amount betweef/ tentative price and final price - Land acquired - Reference for enhancement of compensation pending - Sale deed in favour of allottees with stipulation to pay differential between tentative price and final D price and to pay interest @ 15% on differential amount within 30 days of demand notice - Enhanced compensation deposited in 1997 - Demand notice served in 1999 - Claim for 15% interest - HELD: Interest till the date of deposit in 1997 would be payable@ 15%, and thereafter 8% - It is not disputed that notices of demand were served on the allottees E not immediately after finalization of the compensation by the court and payment or deposit of the enhanced amount by the Board in the year 1997, but after a period of more than a year some time in 1999 - The respondents will be liable to pay interest to the appellant-Board on the differential amount F between the tentative price and the final price at the rate of 8% per annum from the date of deposit or payment of the enhanced compensation by the Board in 1997 till payment of the differential amounts by the allottees. G Chandigarh Housing Board, Chandigarh v. K.K. Kalsi & Ors. (2003) 12 SCC 734 - relied on Case Law Reference: (2003) 12 sec 734 relied on para 6 H 390 KERALA STATE HOUSING BOARD v. KERALA STATE 391 HOUSING BOARD, NHCAASSN. CIVIL APPELLATE JURISDICTION : Civil Appeal No. A 7835 of 2011. · From the Judgment & Order dated 28.02.2006 of High Court of Kerala at Ernakulam in W.A. No. 1760 of 2004. WITH C.A. Nos. 7836 & 7837 of 2011. M.T. Greorge for the Appellants. B P. Vishwanatha Shetty, A. Raghunath, K. Rajeev for the C Respondents. The Judgment of the Court was delivered by A. K. PATNAIK, J. 1. Leave granted. 2. Civil Appeal arising out of S.L.P.(C) No.10580 of 2006 is against the judgment dated 28.02.2006 in Writ Appeal No.1760 of 2004 of the Div_ision Bench of the Kerala High Court. Civil Appeal arising out of S.L.P.(C) No.21478 of 2008 D is against the order dated 13.06.2008 in Writ Appeal No.1968 E of 2007 disposing of the Writ Appeal in terms of the judgment dated 28.02.2006 in Writ Appeal No.1760 of 2004. Civil Appeal arising out of S.L.P.(C) No.21817 of 2008 is against the order 13.06.2008 in Writ Appeal No.1940 of 2008 disposing of the Writ Appeal in terms of the judgment dated 28.02.2006 F in Writ Appeal No.1760 of 2004. These three appeals are being disposed of by this common order as common questions of fact and law arise in the appeals. 3. The facts very briefly are that in the years 1984 and 1985 land was acquired for allotment of plots under the G Chevayur Housing Scheme and the Nellikode Housing Scheme respectively undertaken by the Kerala State Housing Board (for short 'the Board'). The landowners did not accept the compensation offered for the acquired land and sought a reference to the Civil Court under Section 18 of the Land H 392 SUPREME COURT REPORTS [2011] 11 S.C.R. A Acquisition Act, 1894. While the dispute in regard to quantum of compensation was pending, the Board entered into agreements of sale with various allottees of the plots of land during the years 1988-1990 and made a provision therein that the Board shall be entitled to re-fix the final price of the property B agreed to be sold to the allottees taking into account inter alia the enhanced compensation awarded by the Courts and Tribunals and that the decision of the Board in fixing the revised price of the property shall be conclusive and final. It was also expressly agreed in the agreements of sale that after finalization c of the price of the property agreed to be sold by the Board, the allottee shall pay to the Board together with interest at the rate of 15% per annum, the difference between the tentative price fixed and the price finally fixed for the property by the Board within thirty days of the date of a registered notice demanding 0 the payment thereof or in such quarterly installments over a period not exceeding two years to be determined by the Board. After the reference cases were finalized and disposed of in the year 1997, the Board deposited the enhanced compensation with in
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