Judgment

VAIDIALINGAM, J.: This appeal by special leave by the State of West Bengal is directed against the judgment and decree dated September 9, 1963 of the Calcutta High Court dismissing the cross-objections filed by the appellant in appeal from original decree No. 111 of 1954.

2. The dispute between the parties in this appeal relates to the title to the compensation amount awarded in the land acquisition proceedings to the site of Dalhousie Institute building, premises No,. 34 Dalhousie Square. There is no dispute about the amount of Rs. 7,45,640/- awarded as compensation for the land. The appellant claimed the entire amount as being payable to it whereas, on the other hand, the respondent Dalhousie Institute Society (hereinafter to be referred as the Institute) claimed the amount for itself, Therefore, the question of title to the land which is in controversy between the appellant and the respondent has to be decided and on that will depend the right of the party entitled to the compensation amount.

3. Originally the properties acquired under the West Bengal Land (Requisition and Acquisition) Act II of 1948 (hereinafter to be referred as the Act) were No. 34 Dalhousie Square and certain other properties, namely premises No. 34/1 and 35 Dalhousie Square. The controversy regarding premises Nos. 34/1 and 35 Dalhousie Square had been closed even at an early stage. Similarly the parties have agreed that the respondent Institute is entitled to the sum of Rupees 3,90,000/- awarded as compensation for the building standing on premises No. 34 Dalhousie Square. The Land Acquisition Officer referred to the Special Land Acquisition Judge the question regarding apportionment of the compensation amount in respect of the land, premises No. 34 Dalhousie Square.

4. The Special Land Acquisition Judge by his judgment dated July 28, 1953 held that the site 34 Dalhousie Square on which the Dalhousie Institute had been constructed was intended to be given as a grant to the respondent by the Government and that it was given as such for the purpose of putting up the Dalhousie Memorial Hall and Institute. The Special Land Acquisition Judge further held that although the grant was an invalid one, the respondent has been in possession adverse to the Government for over 60 years and in consequence the Institute has perfected its title by such adverse possession. In this view the Special Land Acquisition Judge held that the compensation money in respect of the site belongs to the Institute and not to the Government. The Special Land Acquisition Judge further held that as the intention of the Government while granting the land to the respondent was to provide a site solely for the purpose of construction of the Dalhousie Institute and not for any other purpose, the respondent is in the position of a trustee of the site for the said purpose. In consequence, he held that the compensation amount could not be withdrawn by the respondent except for the purpose of acquiring a new site for the purpose for which the original grant was intended to be made. We have not referred to the other findings recorded by the Special Land Acquisition Judge with regard to the claim in respect of premises Nos. 34/1 and 35 Dalhousie Square, as well as the compensation amount awarded for the building on 34 Dalhousie Square because they are not material for the purpose of this appeal. The respondent filed an appeal against the original decree No. 111 of 1954 in the Calcutta High Court attacking the view of the Special Land Acquisition Judge that the respondent was in the position of a trustee with reference to the compensation amount and placing restrictions regarding the manner in which the amount could be withdrawn.

5. Taking advantage of the appeal filed by the respondent, the State of West Bengal filed cross-objections disputing the Institute s title to the land as well as the compensation money. According to the State no grant of any land either in fact or in law, valid or inv