Judgment

A. D. KOSHAL, J. :- This is an appeal by certificate granted under sub-clause (a) of Cl. (1) of Art. 133 of the Constitution of India by the High Court of Assam and Nagaland against its judgment dated l7th March, 1970 accepting a petition under Article 226 of the Constitution of India which arose in the circumstances that follow.

Land measuring 7.60 acres and situated at Lawsohtun, Bishnupur, Shillong, belonged to the 5 respondents when a notification under Section 4 of the Land Acquisition Act (hereinafter referred to as the Act) was published in respect thereof on 27th March, 1967. Three days later the possession of the land was taken over by the Collector, United Khasi and Jaintia Hills, Shillong. Proceedings for the award of compensation to the respondents were pending when negotiations took place between the Chief Secretary to the Government of Assam and two of the respondents who agreed to the reduction of the cost of acquisition of the land from Rs. 6,17,683.50 to Rs. 4,63,262.57 (inclusive of cost of establishment and contingency amounting to Rs. 22,060.12). Thereafter the Under Secretary to the Government of Assam in the Home and Political Department wrote to respondent No. 2 a letter dated 21st Feb., 1969 detailing the agreement arrived at between the Chief Secretary and the respondents and requesting them-

"to please submit immediately a written document signed by all the co-sharers of the land to the effect that yourself and all other co-sharers are agreeable to accept the L. A. cost of Rs. 4,41,202.45 for land at Bishnupur and that you and your co-sharers will make no further claim for the land thus acquired by Government"

The respondents lost no time in sending their reply which was dated 24th February, 1969 and which they stated that the delay in payment had caused to them great hardship and that they had agreed to reduce the cost of the acquisition in the course of their discussion with the Chief Secretary whom they had urged "at the same time that the payment should be made immediately", The reply was signed by all the live respondents and was accompanied by an agreement (also signed by all of them), the text of which may be ad out in extenso :

"We, all the co-sharers interested in the land acquisition case for construction of quarters for Special Branch Staff of Police Department at Lawsohtun, Bishnupur, Shillong, hereby agree in response to the Government Letter No. 356/66/55 dated the 21st Feb., 1969 to accept the land acquisition cost of Rs. 4,41,202.45 p. (Rupees four lakhs forty one thousand two hundred and two and forty five paise only) subject to Government making payment within the 31st March, 1969 for our land measuring more or less 7.60 acres at Lawsohtun, Bishnupur, Shillong.

"We further agree that we will make no further claim in regard to compensation for the same land provided actual payment is received within the above period of 31st March, 1969."

The agreement between the parties was reduced by the Collector to an award dated the 25th March 1969 and on the very next day the sum of Rs. 4,41,202.45 was paid to the respondents.

On 31st March 1969 the respondents made an application to the Chief Secretary claiming interest at the rate of 121/2 per cent per annum on the amount last mentioned. As there was no response from the Chief Secretary, the respondents applied to the Collector on 7th July, 1969 requesting him to pay interest on the amount awarded at the rate of 6% per annum for the period from 30th March 1967 to 26th March 1969 under Section 34 of the Act which runs thus :

"When the amount of such compensation is not paid or deposited on or before taking possession of the land, the collector shall pay the amount awarded with interest thereon at the rate of six per cent per annum from the time of so taking possession until it shall have been so paid or deposited."

The Collector informed the respondents by a letter dated 31st July 1969 that no action was necessary "at this stage" It was then th