Judgment

SHAH J. : The appellants are lessees of a plot of land No.1A, Cornfield Road in the town of Calcutta. Bharat Sevashram Sangha (hereinafter called: the Sangha ) a society registered under the Societies Registration Act, of 1860 with its head office at 211, Rash Behari Avenue, Calcutta formed for the purpose of carrying on religious, philanthropic and charitable activities submitted an application on October 20, 1954 to the Government of West Bengal to acquire 12 cottas of land out of Plot No. 1-A, Cornfield Road, alleging that the land was required by the Sangha "for efficient running and expansion of a charitable dispensary" of the Sangha. A notification under S. 4 of the Land Acquisition Act, 1894 ,was issued by the Government of West Bengal on December 9, 1954 declaring that "for the purpose of extension of the charitable dispensary in the interest of the suffering public" a piece of land comprising a portion of premises No. 1-A, Cornfield Road, and measuring 0.1963 of an acre was likely to be acquired.

2. On October 20, 1956 the Government of West Bengal cancelled that notification and issued a fresh notification reciting that it appeared to the Governor that whereas land was likely to be needed for a public purpose namely for the Sangha for the purpose of construction of social workers quarters, the students home, publication department, the guest house and Panthasala in Ward No. 61 of the Calcutta Municipality in the city of Calcutta, it was notified that a piece of land comprising a portion of premises No. 1-A, Cornfield Road, and measuring more or less 0.2810 of an acre and described therein was to be acquired for the aforesaid public purpose at the expense of the Sangha. Local enquiry was made by the Second Land Acquisition Collector under S. 5-A of the Act. That officer reported that the Sangha was maintaining a student s home, publication departments, guest houses and panthsalas at various branches and that as for carrying on their activities the Sangha had no facilities, land proposed to be acquired was needed. On May 24, 1957 the Sangha being called upon by the Government of West Bengal, executed an agreement in favour of the Governor of the State of West Bebgal reciting, inter alia, in the preamble that for the purpose of construction of social workers quarters, the students home, publication department, the guest house and panthasala the society had applied to the Government of West Bengal for acquisition under the provisions of the Land Acquisition Act 1894 of the piece of parcel of land containing 0.2810 of an acre and the Government being satisfied by an enquiry held under S. 40 of the said Act that the proposed acquisition was needed for the aforesaid purposes and that the said work was likely to prove useful to the public, had consented to acquire on behalf of the Sangha the piece or parcel of land described in the agreement. The material terms of the agreement were:

"4. The said land shall be held by the society for the purpose of construction of social workers quarters, the students home, publication deptt. the guest house and panthasalas as is hereinbefore mentioned and without the sanction in writing of the said Government of West Bengal first had and obtained for no other purpose whatsoever.

5. The said social workers quarters, the students home, publication department, the guest house and panthasala shall be completed (and fully equipped in all respects ready for use) within four years from the date on which possession of the said land shall have been given to the society.

6. Should the said social workers quaters, the students home, publication department, the guest house and panthasala not be completed and fully equipped in all respects ready for use) within the period stated in the last preceding clause * * * or should the said land at any time thereafter cease for a period of twelve consecutive month to be held and used or ceased to be required for the purpose or purposes provided fo