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2023 Supreme(Cal) 865

IN THE HIGH COURT AT CALCUTTA
DEBANGSU BASAK, MD. SHABBAR RASHIDI, JJ.
Himangshu Mallick and Another – Appellants
Versus
The State of West Bengal and Others – Respondents
FMA No. 689 of 2022, IA No. CAN 1 of 2022
Decided On : 23-08-2023

Advocates:
Advocate Appeared:
For the Appellant : Avijit Sarkar.
For the Respondents: Supratim Dhar, Satyajit Talukdar, Piu Karmakar.

The State cannot hide behind delay and laches to evade its responsibility to pay compensation for land acquired.

Headnote:

LAND ACQUISITION - PAYMENT OF COMPENSATION - DELAY - LIMITATION - CALCULATION OF INTEREST - TRUST - INDIAN LIMITATION ACT, 1963 - SECTION 10 - CALCUTTA IMPROVEMENT ACT, 1911 - SECTIONS 77(2), 123 - LAND ACQUISITION ACT, 1894 - SECTIONS 26, 31, 48A - INDIAN TRUST ACT, 1882 - SECTION 3.

Fact of the Case:

Appellant's predecessor-in-interest's land was acquired in 1971 under the Calcutta Improvement Act, 1911. An award was made in 1979 and a reference petition was filed by the predecessor-in-interest, which was disposed of in 1995. The appellants, who are the successors-in-interest, filed a writ petition in 2018 seeking payment of the compensation amount, which was dismissed by the trial court on the ground of delay.

Finding of the Court:

The court held that the appellants were entitled to compensation for the acquired land, with interest calculated up to the date of payment, and directed the respondents to make payment within a month. The court found that the delay in payment was not attributable to the appellants and that the respondents could not hide behind delay and laches to evade their responsibility.

Issues: 1. Whether the appellants' claim for compensation was barred by limitation. 2. Whether the respondents were liable to pay interest on the compensation amount. 3. Whether the appellants were entitled to compensation under the Calcutta Improvement Act, 1911 and the Land Acquisition Act, 1894.

Ratio Decidendi: 1. The court held that the appellants' claim for compensation was not barred by limitation, as the period of limitation had been extended due to the respondents' failure to pay the compensation amount within the stipulated time. 2. The court held that the respondents were liable to pay interest on the compensation amount, as the award amount carried recurring interest until payment, which was last calculated up to October 10, 2010. 3. The court held that the appellants were entitled to compensation under the Calcutta Improvement Act, 1911 and the Land Acquisition Act, 1894, as the land was acquired in accordance with the provisions of these Acts.

Final Decision: The court allowed the appeal, set aside the impugned order, and directed the respondents to make payment of the compensation amount to the appellants within a month.

JUDGMENT :

MD. SHABBAR RASHIDI, J.

1. The instant appeal is in assailment of judgment and order passed on February 09, 2022 in WPA 4165 of 2018.

2. Fact giving rise to the present litigation is that an acquisition proceeding was initiated in the year 1971 in respect of 2 Cottah 10 chittack and 36 Sq. ft. of land appertaining to premises No. 351, Prince Anwar Shah Road, Kolkata. An award was declared on January 9, 1979 in favour of predecessor-in-interest of the appellant. Being dissatisfied with the award, the predecessor-in-interest of the appellant sent a reference petition for enhancement of compensation. The reference so filed was disposed of on January 03, 1995 by modifications in the award. In the meantime the original owner of the acquired land died and the appellants stepped into her shoes.

3. The appellants did not receive the award amount for which, they came up with the writ petition No. WPA 4165 of 2018 seeking direction upon the respondents for the payment of the compensation.

4. By the impugned order dated February 09, 2022, learned Single Judge dismissed the writ petition on the ground of stale demand. The impugned order noted that the appellants slept over their demand since January 03, 1995, when the award was finally modified till filing of the writ petition in the year 2018. It was also noted in the impugned order that during all this period of 23 years, the appellants never approached the appropriate court for execution of the award as the award passed under Calcutta Improvement Act, 1911 was executable before the court of Small Causes, Calcutta.

5. It was contended on behalf of the appellants that they were assured by the advocate for the claimant conducting the reference case that they will be informed as and when the award money would be deposited. The said advocate expired on September 20, 2015. Since the money was not paid by the respondents, a notice was served upon the respondent through their advocate demanding the award amount.

6. It has also been submitted on behalf of the appellant that by not making the payment of the award money, the respondents have violated the fundamental rights of the appellants. Learned advocate for the appellants further submitted that learned trial court failed to consider that the appellants advanced sufficient cause which prevented them from approaching the appropriate authorities within due time.

7. Learned advocate for the appellant has relied upon the authority in the case reported in Asmaboo Kurban Hossain and Others vs. Province of Bengal, 1942 Online Cal. 119 on the proposition that Section 82 of the Code of Civil Procedure with regard to execution of decree was not applicable in the facts of the present case.

8. Learned advocate for the appellant also submitted that although, a plausible explanation for delayed demand has been put forward, nevertheless, a claim for compensation of land acquisition is constitutional right guaranteed under Article 300A of the Constitutions of India and it has a continuous cause of action. Therefore, no limitation is prescribed for such claim. In support of such proposition, learned advocate for the appellant relied upon Ajet Ali Baidya vs. State of West Bengal, 2022 SCC Online Cal. 1328, B.D. Basnett vs. Collector, East District, Gangtok, Sikkim and Another, (2020) 4 SCC 572 and Sukh Dutt Ratra vs. State of Himachal Pradesh, (2022) 7 SCC 508.

9. Learned advocate for the appellant also cited the authority in Tukaram Kana Joshi vs. MIDC, (2013) 1 SCC 353 on the proposition that delay in approaching court is not an impediment in exercising judicial discretion and rendering substantial justice.

10. Relying on Mangat Ram Tanwar vs. Union of India, AIR 1991 SC 1080 learned advocate for the appellant also contended that States and the Court are duty bound to ensure payment of compensation for land acquisition.

11. On the other hand, the learned advocate for the respondent State submitted that the petitioners sat over their claim for the award money

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