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1994 Supreme(SC) 917

SUPREME COURT OF INDIA
N.P.Singh : R.M.Sahai
Kalimpong Land And Building Limited
Versus
State Of West Bengal
Case No. : 3011 of 1990
Date of Decision : 9/16/94
Advocates Appeared: Bobde V.A. : Das Rathin : Mahajan V.C. : Prasad B.K. : Rajappa S. : Sawhney Indra : Shankar V.Gauri : Sharma Anil Kumar

Advocates:
ANIL SHARMA, B.K.PRASAD, Indra Sawhney, RATHIN DAS, S.RAJAPPA, V.A.BOBDE, V.C.MAHAJAN, V.GAURI SHANKAR

Headnote:

Requisitioning and Acquisition of Immovable Property Act, 1952 - Section 8 – Acquisition of Land – Claim of compensation - This objection might have been taken even against report submitted by learned Solicitor General of India and was in fact suggested, though feebly, by learned counsel for State of West Bengal but learned Senior Counsel who appeared for Respondent 3 and led the arguments in his usual characteristic fairness brushed aside the suggestion as the order had been passed by this court and the officer was no one else than the learned Solicitor General of India whose a impeccable integrity and fairness was given a word of praise by him - Yet law must take its course even when a litigant like State insists and instructs the counsel to fight it out presumably, because the enormous expenditure involved in such exercise is public money for which no one is accountable – Held, Principles and method of determining compensation - Where any property is requisitioned or acquired under this Act, there shall be paid compensation amount of which shall be determined in the manner and in accordance with principles hereinafter set out that is to say commencement of proceedings before the arbitrator, the central government and the person to be compensated shall state what in their respective opinion is a fair amount of compensation. (e) the arbitrator shall, after hearing the dispute, make an award determining the amount of compensation which appears to him to be just and specifying the person or persons to whom such compensation shall be paid and in making the award, he shall have regard to the circumstances of each case and the provisions of Ss. far as they are applicable - Although there is no provision in the Act for award of the interest, but the power to determine compensation under Act is unlike Land Acquisition Act or Arbitration Act. Sub-clause (d) uses the expression "fair amount of compensation" whereas sub-clause (e) widens it further by empowering the arbitrator to award an amount which appears to him to be just having regard to the circumstances of each case - What is just and fair in the circumstances of each case cannot be laid down with any precision. Compensation is paid to indemnify a person and it should normally be an equivalent or substitute of equal values - Payment of compensation of for a three building in Calcutta with open space without interest when possession was taken in would amount to being unjust and unfair to appellant - Recommendation in the report for payment of interest would be included in expression which appears to him to be just used in clause (e) of the sub-section - SO far as the claim of Respondent 3 about the adjustment for repairs is concerned suffice it to say that Act itself contemplates a procedure under which the person in possession is required to give notice to landlord and thereafter approach prescribed authority who is empowered to permit repair. Since admittedly the respondent never approached the appropriate authority under Act and did not obtain any order, the claim of repair cannot be accepted - Appeal dismissed

Judgment

R.M. SAHAI, J.

(1) THE question of law raised on behalf of the respondents assailing the legality and propriety of recommendation to award interest in the report submitted on 26/4/1994 by the learned Solicitor General of India appointed by this court on 4/12/1992 to determine compensation under the Requisitioning and Acquisition of Immovable Property Act, 1952 (hereinafter referred to as the Act) was little surprising as when a bench of this court, of which one of us was a member (R.M. Sahai, J.), after hearing the appeal for quite sometime, rather on number of days, requested the learned Attorney General of India, initially to look into the matter and report, but ultimately appointed the learned Solicitor General of India, with common consent of all parties and explicit understanding that the determination by him would not be challenged, it was thought that the curtain on the long-drawn and chequered history of litigation has been finally drawn.

(2) BEFORE considering the submission on merits, it may be mentioned that basic objection against the award by a retired Judge of the High court was that the power to appoint arbitrator under the Act vested in the central government alone. This objection might have been taken even against the report submitted by the learned Solicitor General of India and was in fact suggested, though feebly, by the learned counsel for the State of West Bengal but the learned Senior Counsel Dr Gauri Shankar who appeared for Respondent 3 and led the arguments in his usual characteristic fairness brushed aside the suggestion as the order had been passed by this court and the officer was no one else than the learned Solicitor General of India whose a impeccable integrity and fairness was given a word of praise by him. Yet the law must take its course even when a litigant like State insists and instructs the counsel to fight it out, presumably, because the enormous expenditure involved in such exercise is public money for which no one is accountable.

(3) REVERTING to the facts, the premises known as "White Wool" Godown, owned by the appellant situated at 11 Mile, Kalimpong comprising of a three-storeyed building with a total constructed area of about 53,000.00 sq. ft. and open space of about 4.9 acres were requisitioned under the Act in July 1964. The possession was taken by the competent authority on 19-7-1964 and a sum of Rs. 834.00 per month was determined as its rent. In 1967 the appellant filed an arbitration case before the District Judge of Darjeeling, under the provisions of Section 8(l)(b) of the Act for determining the amount of compensation to be paid to the appellant. Since 1967 to 1980 the proceedings, before arbitrator, remained pending on account of transfer of the District Judges from time to time and the delay by the government in issuing necessary notifications in the appointment of fresh incumbents under Section 8 of the Act. In 1981 the appellant approached the High court for the appointment of an arbitrator and expeditious disposal of the arbitration case. In March 1981 the High court decided the writ petitions by accepting the second prayer of the appellant and directing the arbitrator to decide the dispute within six months. But the same position continued and the proceedings remained pending due to transfer of District Judges from 1981 to 1985. In September 1985 a consent order was passed directing the arbitrator to dispose of the case within 90 days. When no order was passed the appellant again approached the High court in May 1986 and the High court directed that the arbitrator was at liberty to proceed from the stage the proceedings had been left at by the previous arbitrator so that the proceedings may be decided expeditiously. Even though the High court had passed the order in May 1986 the arbitrator was appointed by the appropriate government in February 1987 who, too, was transferred in March 1987. Consequently the appellant again a



















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