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PATNA HIGH COURT
S.B.Sinha and R.M.Prasad JJ.
I.T.C Limited
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 9 of 1993 ;
Decided On : JUNE 29, 1993
LAND REFORMS - Fixation of fair and equitable rent - Salami - Levy - Bihar Land Reforms Act, 1950 (Bihar Act 30 of 1950), Secs. 5, 6, 7, 22, 23, Rule 7-G.
Fact of the Case:
Petitioner, a limited company, challenged the order of the Land Reforms Deputy Collector levying Salami, cases, etc., purporting to be under Sections 5 and 7 read with Section 13 of the Bihar Land Reforms Act, 1950, and the demand notice issued by the Anchal Adhikari for payment of Rs. 1,46,45,544 towards Salami, arrear rent, etc., up to the year 1986-87.
Finding of the Court:
1. The impugned orders, as contained in Annexures 16 and 14 to the writ applications, are hereby quashed and the respondents authorities are directed to finalise the determination of the compensation as well as fixation of the rent in respect of the lands/properties of the petitioner in accordance with law and after giving due opportunity to the parties to place their case within a period of six months from the date of communication/production of a copy of this judgment/order. 2. The petitioner will be entitled to raise all contentions and bring other materials in support of its case. Similarly, the State of Bihar would also be entitled to bring all relevant materials on record to enable the Collector to take into consideration the same and pass appropriate orders in accordance with law. 3. It goes without saying that if the petitioner has deposited any amount towards rent pursuant to the interim order dated 11-1-1993, the same would be adjusted upon determination of the quantum of fair and equitable rent payable by it to the State of Bihar.
Issues: 1. Whether the impugned orders levying Salami, cases, etc., and the demand notice for payment of Rs. 1,46,45,544 towards Salami, arrear rent, etc., are valid? 2. Whether the fair and equitable rent has been fixed in accordance with the provisions of the Bihar Land Reforms Act, 1950?
Ratio Decidendi: 1. The impugned orders are quashed as the fair rent was fixed by the L.R.D.C., who is not the competent authority. 2. The circular contained in Annexure 7-A to the writ application has no application. 3. The compensation and/or rent had not been finally fixed by the competent authority under the Act. 4. The authority empowered to fix fair and equitable rent would act in accordance with law. 5. The fair and equitable rent has to be determined in terms of the provisions of the Bihar Lands Reforms Act and not in terms of the directives issued by the State of Bihar from time to time under the Khas Mahal Manual. 6. The provisions of the Bihar Land Reforms Act, 1950 do not contemplate realization of any Salami. 7. The fair and equitable rent has to be fixed keeping in view the rent as was prevailing on the date of vesting and not on the date when the order is to be passed. 8. Once the fair and equitable rent is fixed, the same is not liable to any enhancement in future. 9. The rent calculated for the purpose of payment of compensation to the petitioner may have relevance inasmuch as there cannot be two different sets of norms; one for the purpose of fixation of the fair rent and another for the purpose of payment of compensation to the ex-intermediary under the said Act by the State. 10. The prevailing rate of rent at the time when the estate vested in the State of Bihar and not on the date when the order was passed is relevant.
Final Decision: The impugned orders, as contained in Annexures 16 and 14 to the writ applications, are hereby quashed and the respondents authorities are directed to finalise the determination of the compensation as well as fixation of the rent in respect of the lands/properties of the petitioner in accordance with law and after giving due opportunity to the parties to place their case within a period of six months from the date of communication/production of a copy of this judgment/order.
R.M.Prasad, J.
1. The petitioner, which is a limited Company, has prayed for quashing of the order dated 29-1-1988 of the Land Reforms Deputy Collector, Munger (respondent No. 2) as contained in Annexure 16 to the writ application, passed in Rent Fixation Case No. 1/76-77 levying Salami, cases etc. Purporting to be under Sections 5 and 7 read with Sec. 13 of the Bihar Land Reforms Act, 1950 (hereinafter referred to as the Act) since the date the Act came into force i.e., 25-9-1950 and the demand notice dated 21-9-1992 issued by the Anchal Adhikari, Sadar Munger, as contained in Annexure 14 to the writ application, whereby the petitioner is required to pay Rs. 1,46,45,544 towards Salami, arrear rent etc. Upto the year 1986-87 in terms of the aforementioned order dated 29-1-1988 in Rent Fixation Case No. 19/86-87 within a fortnight with the threat that if they falied to pay, the same would be recovered under the provisions of the Bihar and Orissa Public Demand Recovery Act, 1940.
2. In Short, the case of the petitioner is that the petitioner Company which carries on the business of manufacturing and selling of cigarettes and smoking tobaccos set up the factory at Basdeopur in Munger in the early part of this century upon purchasing Zamindari/properties interest in the land in question. The predecessors-in-interest of the said Company also set up a residential complex by taking two bungalows with land appertaining thereto and also a vacant land on a perpetual Sub-lease in 1912 and by purchasing proprietory interest on the adjoining lands in 1925 for residence of its officials free of rent and the same is discribed as park land. It has also set up a colony for the residence of its workers at Shakarpur upon purchasing a dwelling house with-out-houses and other structures, garden, orchard and also two pieces of raiyoti jote transferable land in the years 1955 and 1958.
3. Under a notification dated 26-1-1955 issued in exercise of the power under the Act 30 of 1950 intermediary interest of the proprietor, tenure-holder, under tenure-holder and trustees in any estate or tenure in the district of Munger stood transferred and vested in the State of Bihar. But by the provisions of the Act homestead land and the land of the factory remained in the occupation of the company as the same has been deemed to have been settled with the Company as being the tenant of the State of Bihar, in terms of Sec. 7 of the Act subject to payment of fair and equitable ground rent as may be determined by the Collector in the prescribed manner.
4. It is stated that an ad interim compensation case bearing No. 804 of 1955-56 was started for the purpose of Computation of compensation payable under the Act and rent for the said purpose are roughly assessed at the rate of Rs. 25 per Bigha. It appears that a Rent Fixation case No. 1/76-77 was started on the basis of an application dated 23-2-1973 filed by the petitioner before the Anchal Adhikari, Sadar Munger praying for determination of rent in terms of the provisions of the Act in which by order dated 18-8-1987 the annual current land rent etc. with effect from 1987-88 was fixed by the Deputy Collector, Land Reforms, Sadar Munger and the Company was called upon to submit objection, if any, regarding the rent so fixed at the commercial and industrial rates latest by 18th September, 1987 for which notice was directed to be issued. A photo copy of the certified copy of the said order has been annexed as Annexure 4 to the writ application. The petitioner Company filed a petition before the Land Reforms Deputy Collector, Sadar Munger in Rent Fixation case No. 1 of 1976-77.
5. In the said petition the petitioner took objection that the aforesaid notice dated 8-9-1987 is illegal and without any authority of law inasmuch as under the Act only fair and equitable ground rent can only be fixed in respect of factory land under Sec. 7 of the Act and as rent had already been fixed while determining the compensation pa
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