LALJI KHIMJI AND ORS. versus STATE OF GUJARAT

LALJI KHIMJI AND ORS. versus STATE OF GUJARAT

The agreement dated 7.11.1966 entered into by the Executive Engineer as Canal Officer in exercise of statutory powers under the Bombay Irrigation Act, 1879 and notification dated 27th September, 1963 is not a contract governed by Article 299 of the Constitution but a statutory agreement; it was lawfully executed, binding on the State, and the State is obliged to act according to its terms unless it follows the Act's procedure to alter the alignment.

Parties
Appellants: Lalji Khimji and Ors.; Respondent: State of Gujarat
Jurisdiction
India
Judgment Date
29 January 1993
Procedural Posture
Civil Appeal / Appeal by Special Leave From Judgment and Order Dated 20.1.1977 of the Gujarat High Court in Second Appeal No. 90 of 1976
Outcome
Appeal allowed; judgment and decree of Gujarat High Court set aside, judgment and decree of Trial Court as confirmed by District Judge restored
Legal Topics
Government Contracts, Statutory Powers, Irrigation Schemes, Land Acquisition, Article 299 of the Constitution, Bombay Irrigation Act 1879
Civil Law Administrative Law Constitutional Law Government Contracts Statutory Powers Irrigation Schemes Land Acquisition Article 299 of the Constitution +1 more

Case Brief

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Parties

Lalji Khimji and Ors.

Appellants

State of Gujarat

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From Judgment and Order Dated 20.1.1977 of the Gujarat High Court in Second Appeal No. 90 of 1976

Legal Issues

  1. 1 Whether an agreement/compromise entered into by Executive Engineer (appointed as Canal Officer) on behalf of the State is binding on the Government
  2. 2 Whether such agreement constitutes a contract within the meaning of Article 299 of the Constitution and is invalid for non-satisfaction of its requirements

Ratio Decidendi

The agreement dated 7.11.1966 entered into by the Executive Engineer as Canal Officer in exercise of statutory powers under the Bombay Irrigation Act, 1879 and notification dated 27th September, 1963 is not a contract governed by Article 299 of the Constitution but a statutory agreement; it was lawfully executed, binding on the State, and the State is obliged to act according to its terms unless it follows the Act's procedure to alter the alignment.

Court Disposition

Appeal allowed; judgment and decree of Gujarat High Court set aside, judgment and decree of Trial Court as confirmed by District Judge restored

Orders

  • State permanently restrained from going back from the agreement and acting otherwise than as per its terms
  • Parties to bear their own costs throughout