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1985 Supreme(SC) 202

SUPREME COURT OF INDIA
A.P. SEN AND V. KHALID, JJ.
Hirachand Kothari (dead) through L. Rs., Appellants
Versus
State of Rajasthan and another, Respondents.
Civil Appeal No. 2216 (N) of 1970, D/- 9-5-1985.

Advocates:
Maya Rao, S.K.JAIN

Headnote:

Evidence Act, 1872 – Section 20 - Lands Clauses Consolidation Act, 1845 - Interest Act, 1839 - Section 1 - Plot - Contract - Registered Deed - Possession of Plot - In accordance with terms of registered deed of exchange executed by parties, appellant withdrew a suit for specific performance of an alleged contract against State Government being Civil Suit pending in Court of Civil Judge, whereunder State Government agreed to give in exchange plot located in C Scheme on resumption of his plot in same scheme and handed over possession to State Government of aforesaid plot but State Government on their part did not give possession of exchanged plot to him, in consequence whereof appellant instituted a suit for possession of exchanged plot and for mesne profits - Whether parties by mutual consent had agreed to appoint D. N. Gupta, Superintending Engineer and Town Planning Officer, to ascertain value of disputed land as an appraiser or valuer and therefore appraisement or valuation thereof by him in his Report at Rs. 35,826.50 p. should be treated as an admission under S. 20 of Evidence Act, 1872, on basis of which plaintiffs claim for damages had to be decreed - Whether plaintiff being deprived of property was, on general principles, entitled to payment of interest on amount payable to him as value of property taken by State Government - Held, Transaction of exchange which fell through in, 1951 was entered into before formation of State of Rajasthan - At that time, Jaipur was not capital of State, and there was no trend in rise of prices of land - Once it was known that Jaipur would be capital, value of land particularly in an exclusive area near and around palatial bungalow of Maharani of Mysore which was extremely scarce, had naturally shot up - Land in dispute was situate near railway station and which, according to High Court, was lesser in value than land in C Scheme – Court is in respectful agreement with these observations - It was further held in Umrao Singhs case that Court had ample power under proviso to S. 1 of Interest Act, 1839 to award interest on equitable grounds - In all facts and circumstances of case, reasonablerate of interest would be 6% per annum on compensation amount of Rs. 25,000, date of dispossession till August, date of judgment of learned Subordinate Judge, and thereafter at 9 % per annum thereon till realization - It more or less works out to Rs. 95,000 which is a multiple of 20 times actual investment of appellant in purchasing plot in C Scheme in city of Jaipur - Judgment and decree of High Court and those of learned Subordinate Judge are modified by decreeing plaintiffs claim for compensation at Rs. 25,000 with interest as indicated above - Appellant will be entitled to recover, and be liable to pay costs in proportion to success and failure - Appeal partly allowed.

Judgment

SEN, J. :- The present appeal on certificate raises two questions, namely (1) Whether the parties by mutual consent had agreed to appoint D. N. Gupta, Superintending Engineer and Town Planning Officer, Jaipur to ascertain the value of the disputed land as an appraiser or valuer and therefore the appraisement or valuation thereof by him in his Report (Exh. 5) dated February 21, 1956 at Rs. 35,826.50 p. should be treated as an admission under S. 20 of the Evidence Act, 1872, on the basis of which the plaintiffs claim for damages had to be decreed, and (2) Whether the plaintiff being deprived of property was, on general principles, entitled to payment of interest on the amount payable to him as the value of the property taken by the State Government.

2. The facts bearing on the questions are briefly stated. In accordance with the terms of the registered deed of exchange executed by the parties on July 16, 1951, the appellant withdrew a suit for specific performance of an alleged contract against the State Government being Civil Suit No. 120/50 pending in the Court of the Civil Judge, Jaipur City whereunder the State Government agreed to give in exchange plot No. 0/17 located in C Scheme on resumption of his plot bearing No. C/91 in the same scheme and handed over possession to the State Government of the aforesaid plot No. C/91, but the State Government on their part did not give possession of the exchanged plot to him, in consequence whereof the appellant instituted a suit for possession of the exchanged plot and for mesne profits thereof against the State Government being Civil Suit No. 270/51 in the Court of the Civil Judge, Jaipur City. The State Government in their written statement pleaded inter alia that the suit was not maintainable since the plot which was to be given in exchange to the appellant did not belong to them, but did not disclose as to whom the said plot belonged. The appellant therefore served interrogatories on the State Government. In reply to the said interrogatories it was revealed in the affidavit filed by the State Government that the exchanged plot had been transferred to Thakur Harisingh of Achrol under the orders of the Home Minister, Government of India dated January 8, 1945 and that plot No. C/91 which belonged to the appellant was then in possession of the Raj Pramukh Maharaja Mansinghji of Jaipur. The appellant accordingly impleaded Thakur Harisingh of Achrol as a defendant in the suit and sought permission from the Central Government under S. 86 of the Civil Procedure Code, 1908 to join Maharaja Mansinghji of Jaipur as a party to the suit. Thakur Harisingh of Achrol being impleaded as a defendant in the suit filed his written statement and raised an objection that the valuation of the land in dispute was Rs. 40,000 and the Court of Civil Judge, Jaipur City had no jurisdiction to entertain the suit. That objection of his was sustained and the learned Civil Judge by his order dated October 15, 1955 returned the plaint for presentation to the proper Court.

3. It transpires that the Joint Secretary, Ministry of Home Affairs, Government of India addressed a letter dated January 3,1956 to the late Shri Mohan Lal Sukhadia, the then Chief Minister of Rajasthan conveying that it was felt that the appellant had a case and should be given the exchange plot and if that was not feasible, he should be restored to his original position and therefore could claim back possession of plot No. C/91. At the instance of the Chief Minister, the Deputy Minister for Local Self Government gave a hearing to the plaintiff on January 12, 1956 in the presence of the Secretary, Urban Improvement Board, Jaipur. On February 3, 1956, the Chief Minister addressed a. letter to the Joint Secretary, Ministry of Home Affairs, conveying the anxiety of the State Government to settle the claim of the appellant and intimated that the appellant had agreed to the appointment of D. N. Gupta, Town Planning Officer as the assessor who h



























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