IN THE HIGH COURT OF JUDICATURE AT PATNA MJC No.2798 of 2010 Kameshwar Prasad Sinha, Son of Late Jagdambi Prasad, resident of Mohalla- Harsh Nagar, Mithanpura, P.O.-Ramana, P.S.-Mithanpura, Muzaffarpur, District & Town-Muzaffarpur. –Petitioner. VERSUS 1. The State of Bihar through the Secretary, Department of Urban Development, Government of Bihar, New Secretariat, Patna. 2. Mrs. Vandana Priyasi, the Managing Director, Bihar State Housing Board, 6 Sardar Patel Marg, Patna-15. –Opposite Parties. ----------- Advocate for Petitioner : Mr. Nityanand Mishra. Advocates for Housing : Mr. Lalit Kishore Board with Mrs. Binita Singh. Advocate for Resp. No.1 : Divya Verma, AC to AAG-3. ------------- 03 18.05.2011 By order passed in the writ petition the opposite party, Bihar State Housing Board had to refund the money deposited by the petitioner with interest as it charges from defaulters. During pendency of this contempt application, petitioner has been refunded the money but with interest of only 5% simple per annum. Petitioner contends that with reference to agreement of the Bihar State Housing Board it is charging default rate of 12% compoundable. Petitioner further points out that under the newly promulgated Digha Acquired Land Settlement Act, 2010, which applies to the area in which petitioner had applied, provides for compensation to the applicants with interest at the rate of 8% compoundable. Mr. Lalit Kishore, learned Senior Counsel appearing for the Bihar State Housing Board very clearly contends that 8% is the minimum default rate in various agreements of various types in relation to the Housing Board. Considering the aforesaid, I hope that the default rate, - 2 - which ought to have been paid to the petitioner, ought to have been 8% and, for the time being retained a simple annual interest. This would be, however, without prejudice to the petitioner’s right to claim entitlement under the said Act and report if otherwise liable to pay the same. The difference as between what has been paid and 8% has been directed by this Court today should be paid to the petitioner within one month from today because petitioner is an old man and would appreciate the payment during his life time. With these observations, this application stands disposed of. Trivedi/ (Navaniti Prasad Singh, J.)