In Brief
I.K. Merchants and others sought enhanced compensation for shares transferred to the State of Rajasthan in 1973. After a 50-year dispute, the High Court valued the shares at Rs.640/- per share and awarded simple interest at 5% per annum. The Supreme Court held that while the transaction was commercial, the State's superior bargaining power and unconscionable delay necessitated fair compensation. The Court modified the judgment to award: 6% per annum simple interest from 8th July 1975 until decree, and 9% per annum from decree until payment, balancing the claimants' deprivation of capital value against the judgment debtor's financial burden.
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