HIGH COURT OF CALCUTTA
MOOKERJE, R. P. MOOKERJEE
SANTI DEVI - Appellant
Versus
PROVINCE OF WEST BENGAL - Respondent
A. F. O. D. 180 Of 1948
Decided On : JULY 16, 1953
DEFENCE OF INDIA ACT - ARBITRATION - APPEAL - MAINTAINABILITY - INTERPRETATION OF RULE 19 - COMPENSATION AWARDED - MEANING - PERSON IN POSSESSION - INTEREST IN PROPERTY - RIGHT TO COMPENSATION - POSSESSION AS A SOURCE OF RIGHT - SPECIFIC RELIEF ACT, SECTIONS 9, 42 - LAND ACQUISITION ACT - COMPENSATION TO SUB-TENANT WITH RIGHT TO CONSTRUCT 'PUCCA' BUILDING - CHUNDEE CHURN CHATTERJEE V. BIDOO BUDDEN. BANERJEE - FOLLOWED.
Fact of the Case:
The appellant, Kanhyalal Kanodia, claimed compensation for the requisition of premises No. 20, Baburam Ghosh Road, Tollygunje, under the Defence of India Act. The Collector offered Rs. 1000/- per month as compensation, but Kanodia claimed Rs. 12500/- per month. The Arbitrator appointed under Section 19 of the Act held that neither Kanodia nor the other claimant, Messrs. Unity Production, were entitled to compensation. Kanodia appealed against this decision.
Finding of the Court:
The court held that the appeal was maintainable as the interpretation of Rule 19 of the Rules framed under Section 19 of the Defence of India Act, relating to arbitration for determining the proper compensation for requisitioned premises, was that the 'award' referred to the entirety of the award made by the arbitrator, irrespective of the award to which a particular appellant may be entitled to. The court also held that the Arbitrator erred in holding that Kanodia had no subsisting right to claim compensation, as a person in possession, even without a title, has an interest in the property and is entitled to claim compensation from the requisitioning authority.
Issues: 1. Whether the appeal was maintainable? 2. Whether Kanodia had a subsisting right to claim compensation?
Ratio Decidendi: 1. The court interpreted Rule 19 of the Rules framed under Section 19 of the Defence of India Act to mean that the 'award' referred to the entirety of the award made by the arbitrator, irrespective of the award to which a particular appellant may be entitled to. Therefore, the appeal was maintainable. 2. The court held that a person in possession, even without a title, has an interest in the property and is entitled to claim compensation from the requisitioning authority. This is because possession is a source of right and a person in possession is entitled to maintain their possession against all comers except the rightful owners.
Final Decision: The appeal was allowed, the award of the Arbitrator was set aside, and the case was remitted to an Arbitrator for trial of the remaining Issues and for determining what compensation is payable to the appellant.
( 1 ) THIS is a claimant's appeal against the decision by an Arbitrator appointed under, Section 19 of the Defence of India Act.
( 2 ) ON behalf of the respondent a preliminary objection has been raised about the maintainability of the appeal, but that question can be considered only after the relevant facts are shortly stated.
( 3 ) PREMISES No. 20, Baburam Ghosh Road, Tollygunje, had been requisitioned under the Defence of India Act, and claim was laid on behalf of three parties, viz. , the admitted owners of the property who would be described hereafter as the Ghoses and the present appellant Kanhyalal Kanodia and a certain concern known as the Unity Production. After a certain date the Ghoses did not press their claim any further. The Collector, however, held that Rs. 1000/- per month would be the reasonable compensation for the property requisitioned, but the Kanodias were not entitled to any part of the same. Kanodia had claimed compensation at the rate of Rs. 12500/-per month during the period of requisition; Unity Production had claimed compensation for loss of business etc. at the lump sum of Rs. 1194582/5/3 pies. The offer made by the Collector was not accepted either by Kanodia or the Unity Production. There was a reference before the Arbitrator under Section 19 of the Defence of India Act on behalf of the two claimants which came up for hearing before the Arbitrator and disposed of by him by his order, dated February 18, 1948. Against this decision Kanhyalal Kanodia has preferred the present appeal. No steps have been taken by the other claimant, Messrs. Unity Production.
( 4 ) THE learned Arbitrator came to the conclusion that neither Kanodia, nor Messrs. Unity Production were entitled to the compensation claimed by them in the present proceedings. The Collector's offer of Rs. 1000/- a month as rent of the premises was, however, to remain unaffected by his decision, and whoever was entitled to that sum might draw it without prejudice.
( 5 ) IT is against this 'nil' award, as it has been described by the appellant, in favour of Kanodia that the present appeal has been preferred. The decision on the preliminary objection about the maintainability of the appeal rests on interpretation of the Rules framed under Section 19 of the Defence of India Act relating to arbitration for determining the proper compensation for requisitioned premises. Under Clause (f) of sub-section 1 of Section 19 of the Defence of India Act,"an appeal shall lie to the High Court against an award of the Arbitrator except in cases where the amount thereof does not exceed an amount prescribed in this behalf by the Rule made by the Central Government. "
( 6 ) SUCH Rules were published in the Gazette on April 8, 1943, under a notification, dated March 30, 1943. Rule 19 which is the relevant Rule for our present purpose was modified by a subsequent notification, dated March 22, 1945. The second proviso to Rule 19 is in the following terms :"provided further that no appeal shall lie against an award made under this Rule where the amount of compensation awarded does not exceed Rs. 5000/- in lump or Rs. 250/- per mensem. "
( 7 ) IT is contended on behalf of the respondent that unless the amount of compensation awarded to the particular party who prefers an appeal to the High Court exceeds Rs. 5000/- in lump or Rs. 250/- per mensem the party would not be entitled to maintain an appeal.
( 8 ) ON the face of the clear terms provided in the second proviso above mentioned, there is no room for such an argument. Moreover, such an interpretation would be an unreasonable one and would lead to manifest injustice. The restricted interpretation attempted to be placed on the proviso cannot be sustained. There is no reference in the Rule which requires that the compensation is to be awarded to the particular appellant which exceeds the minimum amount mentioned therein. The language used refers to an "award", and the award 'prima facie' refers to
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