{"id":16438,"date":"1990-12-06T00:00:00","date_gmt":"1990-12-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/vijay-cotton-and-oil-mills-p-ltd-vs-state-of-gujarat-on-6-december-1990"},"modified":"2015-11-28T23:11:33","modified_gmt":"2015-11-28T17:41:33","slug":"vijay-cotton-and-oil-mills-p-ltd-vs-state-of-gujarat-on-6-december-1990","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/vijay-cotton-and-oil-mills-p-ltd-vs-state-of-gujarat-on-6-december-1990","title":{"rendered":"Vijay Cotton And Oil Mills (P) Ltd vs State Of Gujarat on 6 December, 1990"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Vijay Cotton And Oil Mills (P) Ltd vs State Of Gujarat on 6 December, 1990<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1991 AIR  656, \t\t  1990 SCR  Supl. (3) 447<\/div>\n<div class=\"doc_author\">Author: K Singh<\/div>\n<div class=\"doc_bench\">Bench: Kuldip Singh (J)<\/div>\n<pre>           PETITIONER:\nVIJAY COTTON AND OIL MILLS (P) LTD.\n\n\tVs.\n\nRESPONDENT:\nSTATE OF GUJARAT\n\nDATE OF JUDGMENT06\/12\/1990\n\nBENCH:\nKULDIP SINGH (J)\nBENCH:\nKULDIP SINGH (J)\nKASLIWAL, N.M. (J)\n\nCITATION:\n 1991 AIR  656\t\t  1990 SCR  Supl. (3) 447\n 1991 SCC  (1) 262\t  JT 1990 (4)\t771\n 1990 SCALE  (2)1194\n\n\nACT:\n    Land Acquisition Act, 1894\tSection 6(1), 23 &amp; 26--Costs\nand interest can be awarded by higher courts if not  awarded\nby lower court.\n\n\n\nHEADNOTE:\n    The\t appellant  owned  land in Kutch  District  and\t the\nGovernment  of\tGujarat took its possession  on\t a  specific\nunderstanding that in exchange the Government would give  to\nit land of equal value but the Government resided and issued\na  notification under section 6(1) of the  Land\t Acquisition\nAct,  1894 straightaway declaring that the land in  question\nwas  needed  for  public  purpose.  The\t collector   awarded\nRs.5,075\/44  np\t as  compensation. At the  instance  of\t the\nappellant,  a reference to the Court was made under  Section\n18 of the Act and the District Judge determined the  compen-\nsation at the rate of Rs.3 per sq. yard on the basis of\t the\nmarket value of the land on the date of the notification and\npaid  solatium and interest from that date. The\t State\tpre-\nferred\tan  appeal against the award of the  District  Judge\nbefore\tthe  High  Court but the appellant  did\t not  appeal\nagainst\t that part of the award which went against  him\t but\nfiled  Cross-objections\t which being time-barred  were\tdis-\nmissed. In the Cross-objections the appellant had inter alia\nclaimed\t interest from November 19, 1949 the date  when\t the\nland  in question was taken over by the Government  and\t not\nfrom February 1, 1955, the date when the notification  under\nthe  Land Acquisition Act was issued. The High\tCourt  ruled\nthat the compensation could only be determined on the  basis\nof the market value of the land on the date of the notifica-\ntion  issued  under 4( 1 ) of the Land Acquisition  Act\t and\nsince  such a notification had not been issued in the  case.\nit was not possible to determine the amount of\tcompensation\npayable to the appellant. The claimant appellant appealed to\nthis  Court on the strength of a certificate and this  court\nheld  that  the notification dated February 1,\t1955  issued\nunder  Section 6 of the Act could be treated as a  composite\nnotification  both under Section 4(1) as also under  Section\n6(1) of the Act and the district Judge could lawfully  award\nthe market value of the land. So holding, the Court remanded\nthe matter to the High Court for disposal on merit. The High\nCourt on remand reduced the price of the acquired land\tfrom\nRs.3 per sq. yard to 1.35 sq, yard and rejected the claim of\nthe claimant to interest from November 19, 1949 instead of\n448\nFebruary 1, 1955. as the Cross-objections failed by it\twere\ntreated\t to be time-barred. Hence this appeal  raising\tboth\nthe contentions reprice of the land and the award of  inter-\nest., w.e.f. Feb. 1, 1955.\nPartly allowing the appeal this Court;\n    HELD: (1) On a reference under Section 18 of the Act the\nparties go to trial before the Court primarily on the  issue\nof  determination  of market value of the land.\t So  far  as\naward of interest is concerned it is never an issue  between\nthe parties. Once the conditions under Section 28 or Section\n34 of the Act are satisfied the award of interest is  conse-\nquential and automatic. [454G-H]\n    (2)\t The  payment of interest is not  dependent  on\t any\nclaim by the person whose land has been acquired. There\t can\nbe  no controversy or any lis between the parties  regarding\npayment\t of interest. When once the provision of section  34\nare attracted it is obligatory for the collector to pay\t the\ninterest. If he fails to do so the same can be claimed\tfrom\nthe Court in proceedings under section 18 of the Act or even\nfrom the appellate court\/courts thereafter. [455B]\n    Reading  section  23 with section 26 of the Act,  it  is\nclear that the award, which is deemed to be a decree, is the\nsum total of conclusions reached by the courts in  determin-\ning  compensation  under Section 23 on appreciation  of\t the\nevidence  between the parties. The costs 'under\t Section  27\nand  the interest under Section 28 and 34 are added  to\t the\ncompensation  amount  to make it a consolidated\t award.\t The\ncosts and interest under the Act if not awarded by the lower\ncourt  can  always be awarded by the higher  courts  in\t any\nproceedings  under the Act and to any party entitled to\t the\nsame under the Act. [455D-E]\n\n\n\nJUDGMENT:\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Vijay Cotton And Oil Mills (P) Ltd vs State Of Gujarat on 6 December, 1990 Equivalent citations: 1991 AIR 656, 1990 SCR Supl. (3) 447 Author: K Singh Bench: Kuldip Singh (J) PETITIONER: VIJAY COTTON AND OIL MILLS (P) LTD. Vs. RESPONDENT: STATE OF GUJARAT DATE OF JUDGMENT06\/12\/1990 BENCH: KULDIP SINGH [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-16438","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Vijay Cotton And Oil Mills (P) Ltd vs State Of Gujarat on 6 December, 1990 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/vijay-cotton-and-oil-mills-p-ltd-vs-state-of-gujarat-on-6-december-1990\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vijay Cotton And Oil Mills (P) Ltd vs State Of Gujarat on 6 December, 1990 - Free Judgements of Supreme Court &amp; 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