G.S.SINGHVI, V.GOPALA GOWDA
Daulat Sitaram Kodone – Appellant
Versus
State of Maharashtra – Respondent
What are the rights of project affected persons who entered into agreements for lower compensation to claim parity with similarly situated persons receiving higher compensation later? What is the validity of contracts that are opposed to public policy or violate Section 23 of the Contract Act, 1872? How to determine if a High Court's refusal to direct compensation parity constitutes a serious error when other similarly situated persons receive higher compensation?
Key Points: - The Appellants surrendered plots and accepted Rs. 50,000/- compensation based on a 2006 resolution but later sought higher compensation after other villagers received Rs. 3,70,055/- (!) (!) (!) . - The High Court dismissed the writ petition, ruling that the Appellants were disentitled to further claims because they had entered into a binding agreement and belonged to a different class than those who did not (!) . - The Supreme Court held the agreements were unreasonable, unconstitutional, and violative of Section 23 of the Contract Act as they were opposed to public policy (!) . - Citing Central Inland Water Transport Corporation Ltd. v. Brojo Nath Ganguly, the Court struck down the refusal to ensure parity, declaring the High Court's decision a serious error (!) (!) . - The appeal was allowed, the impugned order was set aside, and the Appellants were declared entitled to compensation at the rate of Rs. 3,70,055/- (!) . - The official Respondents were directed to pay the balance compensation amount within three months (!) .
JUDGMENT :
1. Leave granted. Till March, 1997 the Appellants were residents of Village Sawargaon, Taluka Pauni, District Bhandara, Maharashtra. Their land got submerged in Gosikhurd irrigation project. They were declared as project affected persons under the Maharashtra Project Affected Persons Rehabilitation Act, 1999 (for short, 'the Act') and were allotted residential plots in Village Pagora. However, due to lack of basic amenities in the area they could not construct the houses.
2. In the 29th meeting of the Governing Council of Vidarbha Irrigation Development Corporation, Nagpur (for short, 'the Corporation') held on 13.12.2006 it was resolved that the project affected persons who do not want plots of land may be given a compensation of Rs. 50,000/-.
3. In furtherance of the aforesaid resolution, the Appellants surrendered the plots and they were given compensation of Rs. 50,000/- by executing separate agreements.
4. After two years and a half, the Governing Council of the Corporation decided that the project affected persons of Village Sawargaon would be paid a total sum of Rs. 1,006.55 lakhs towards compensation. The Appellants represented for payment of higher compensation on
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.