Citation : 2023 Latest Caselaw 5430 Cal
Judgement Date : 23 August, 2023
IN THE HIGH COURT AT CALCUTTA
Constitutional Writ Jurisdiciton
Appellate Side
Present:
The Hon'ble Justice Debangsu Basak
And
The Hon'ble Justice Md. Shabbar Rashidi
FMA 689 of 2022
With
IA NO.: CAN 1 of 2022
Sri Himangshu Mallick & Anr.
Versus
The State of West Bengal & Ors.
For the appellant : Mr. Avijit Sarkar, Adv.
For the State : Mr. Supratim Dhar, Adv.
For the KMDA : : Mr. Satyajit Talukdar, Adv.
: Ms. Piu Karmakar, Adv.
Heard on : July 26, 2023
Judgement on : August 23, 2023
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.
1
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 1942 OnLine Cal
119 (Asmaboo Kurban Hossain and Ors Vs. Province
of Bengal) 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 2022 SCC OnLine Cal 1328 (Ajet Ali
Baidya V. State of WB), (2020) 4 SCC 572 (B. D.
Basnett v. Collector, East District, Gangtok, Sikkim
and Anr.) and (2022) 7 SCC 508 (Sukh Dutt Ratra V.
State of Himachal Pradesh).
9. Learned advocate for the appellant also cited the
authority in (2013) 1 SCC 353 (Tukaram Kana Joshi V.
MIDC) on the proposition that delay in approaching court
is not an impediment in exercising judicial discretion and
rendering substantial justice.
10. Relying on AIR 1991 SC 1080 (Mangat Ram
Tanwar V. Union of India) 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 for long 23 years. The
never approached the Small Causes Court, Kolkata for
execution of the award in terms of the provisions of
Section 77(2) of the Calcutta Improvement Act, 1911
within the limitation prescribed under Article 136 of the
Limitation Act, 1963.
12. It was further contended that no reasonable
explanation has been advanced for the inordinate delay
of over 23 years in approaching the writ court. In the
meantime, the Calcutta Improvement Act, 1911 stood
repealed. The claim of the appellant stood barred by
limitation. In support of their contentions State has relied
upon (2011) 5 SCC 394 (Banda Development
Authority V. Motilal Agarwal and Others), (1995) 4
Supreme Court Cases 683 (State of Maharashtra V.
Digambar), (2012) 1 Supreme Court Cases 66
(Leelawati and Others V. State of Haryana and
Others), 1964 SCC OnLine SC 10 (State of
MadhyPradesh V. Bhailal Bhai) and 2017 SCC OnLine
Cal 14082 (Nanda Roy V. State of West Bengl & Anr.).
13. As noted, a land acquisition proceeding under
Calcutta Improvement Act was initiated in respect of 2
Cottah 10 chittack and 36 Sq. ft. of land appertaining to
premises No. 351, Prince Anwar Shah Road, Kolkata
belonging to the predecessor-in-interest of the present
petitioner. The proceeding was started in the year 1971
and an award was passed on January 9, 1979. The
predecessor-in-interest of the writ petitioners preferred a
reference, being dissatisfied with the award. Such
reference was disposed by an order passed on January
03, 1995 modifying the original award.
14. It has been contended by the petitioners that
Calcutta Improvement Trust never deposited the award
money inspite of a direction to deposit the same within
three months. Be that as it may, the award money was
never paid to the claimant. In the meantime, the original
claimant died and the writ petitioners succeeded the
claimant.
15. Having not received the award money, learned
advocate for the writ petitioners served a notice upon the
respondents demanding the award money on September
20, 2017. Having seen the grievances not redressed, the
appellants approached the writ court in 2018 seeking a
direction upon the respondents to pay off the award
money to them. In the meantime, Calcutta Improvement
Act stood repealed in the year 2017.
16. By the impugned order, learned single judge
negated the claim of the writ petitioners on the ground of
delay. It was contended that the appellants never
approached the Small Causes Court, in terms of Section
77 (2) of the Calcutta Improvement Act, 1911, for
execution of the award and no reasonable explanation
has been advanced on behalf of the appellants for the
inordinate delay.
17. Admittedly, the award was passed by the land
acquisition collector on January 09, 1979 and the award
was modified by the Calcutta Improvement Tribunal on
January 03, 1995. In order to explain the delay, it has
been asserted that the lawyer conducting the land
acquisition proceeding on behalf of the claimant died on
September 20, 2015. The appellants were dependent
upon the said lawyer. Later on a letter demanding the
award amount was served upon the respondent through
their advocate in the year 2017.
18. Section 77 of the repealed Calcutta
Improvement Act, 1911 provided for such execution in
the following terms:
77. Award of Tribunal how to be
determined. - (1) For the purpose of
determining the award to be made by the
Tribunal under the Land Acquisition Act,
1894 -
(a) if there is any disagreement as to the
measurement of land, or the amount of
compensation or costs to be allowed, the
opinion of the majority of the members of
the Tribunal shall prevail;
(b) questions relating to the determination
of the persons to whom compensation if
payable, or the apportionment of
compensation, may be tried and decided in
the absence of the assessors if the
President of the Tribunal considers their
presence unnecessary; and when so tried
and decided, the decision of the President
shall be deemed to be the decision of the
Tribunal; and
(c) notwithstanding anything contained in
the foregoing clauses, the decision on all
questions of law and procedure shall rest
solely with the President of the Tribunal.
(2) Every award of the Tribunal, and every
order made by the Tribunal for the
payment of money, shall be enforced by the
Court of Small Causes of Calcutta as if it
were a decree of that Court.
20. It is nobody's case that the acquisition of the land
belonging to the predecessor-in-interest of the appellants
was done without following the due process of law. The
only ground for negating the claim of the appellant noted
by learned trial judge was inordinate delay in
approaching the court.
21. In the case of Ajet Ali Baidya (Supra) the
Coordinate Bench had noted that,
"20. We are, however, of the opinion that
there might be some delay on the part of
the petitioners in approaching this Court,
but since the right to property is a
valuable right flowing from Article 300A of
the Constitution of India, merely on the
ground of delay the State cannot deny its
obligation to compensate the petitioners."
22. It further noted that,
"23. It is immaterial that the possession of
lands in question was taken in the year
1993 without any acquisition. Fact
remains that the acquisition proceeding
was revived only in the year 1999, by the
issuance of a notice under Section 9(3A) of
the Land Acquisition Act, 1894 as
amended by the West Bengal State
Amendment Act. The writ petitioners
approached this Court in the year 2005.
Therefore, delay, if any, in this case, is not
as fatal so as to frustrate a claim for
compensation which is guaranteed under
Article 300A of the Constitution of India."
23. Mangat Ram (Supra) is also relating to acquisition
under the Land Acquisition Act. The ratio laid down in the
said case is directed against early disposal of the petitions
for reference filed on behalf of objecting land owners. It was
noted that there should be an endeavour to dispose of such
applications within a period of three months of being made.
In the instant case, however, the delay involved can be
attributed to both the appellants/petitioners as well as the
respondents. The appellants did not approach the court for
a considerable period but at the same time the respondents
also took enough time in disposing of the proceeding. A
land acquisition proceeding was started in 1971. Award
was made in 1979. The appellants preferred a reference
petition in 1989 which was disposed in 1995.
24. In the case of D. B. Basnett (Supra) it was noted
that the land was found to be acquired without following
due process of law and the land owners were directed to be
paid with compensation for unauthorized use and
occupation of the land from the date of possession. It noted
that,
"19. The result of the aforesaid would be
that the respondents have failed to
establish that they had acquired the land
in accordance with law and paid due
compensation. The appellant would, thus,
be entitled to the possession of the land as
also damages for illegal use and
occupation of the same by the respondents,
at least, for a period of three (3) years
prior to the notice having been served upon
them. We are strengthened in our
observations on account of the judgment of
this Court in LAO v. M. Ramakrishna Reddy
[LAO v. M. Ramakrishna Reddy, (2011) 11
SCC 648 : (2011) 4 SCC (Civ) 633] , wherein
it was held that the owner can be entitled
to damages for wrongful use and
possession of land in respect of which no
notification is issued under Section 4 of
the Land Acquisition Act, from the date of
possession till the date such notification is
finally published."
25. In the case at hand, however, land was acquired in
accordance with the provisions of an established law i.e.
Calcutta Improvement Act, 1911. All the legal formalities
under the act were duly complied with. The predecessor-in-
interest of the appellants preferred an application for
reference which was also disposed of in accordance with
law, though with considerable delay.
26. Similarly, in the case of Sukh Dutt Ratra (Supra)
the Hon'ble Supreme Court reiterated the right to property
of an individual guaranteed under Article 300A of the
Constitution of India. At the same time the Hon'ble Court
was pleased to extend the benefits of getting compensation
to the petitioners for the reason that their lands were
acquired without following the due procedure. In the said
case, the Hon'ble Court noted that,
"18. There is a welter of precedents on delay and laches which conclude either way--as contended by both sides in the present dispute--however, the specific factual matrix compels this Court to weigh in favour of the appellant landowners. The State cannot shield itself behind the ground of delay and laches in such a situation; there cannot be a "limitation" to doing justice. This Court in a much earlier case -- Maharashtra SRTC v. Balwant Regular Motor Service [Maharashtra SRTC v. Balwant Regular Motor Service, (1969) 1 SCR 808 : AIR 1969 SC 329] , held : (AIR pp. 335-36, para 11)
"11. ... 'Now the doctrine of laches in Courts of Equity is not an arbitrary or a technical doctrine. Where it would be practically unjust to give a remedy, either because the party has, by his conduct, done that which might fairly be regarded
as equivalent to a waiver of it, or where by his conduct and neglect he has, though perhaps not waiving that remedy, yet put the other party in a situation in which it would not be reasonable to place him if the remedy were afterwards to be asserted in either of these cases, lapse of time and delay are most material.
But in every case, if an argument against relief, which otherwise would be just, is founded upon mere delay, that delay of course not amounting to a bar by any statute of limitations, the validity of that defence must be tried upon principles substantially equitable. Two circumstances, always important in such cases, are, the length of the delay and the nature of the acts done during the interval, which might affect either party and cause a balance of justice or injustice in taking the one course or the other, so far as relates to the remedy'."
27. The case of Tukaram Kana Joshi (Supra) also dealt
with a case where land of an individual was acquired
without following due process of law. The Hon'ble Court
upheld the right to property of a citizen and directed
notification of acquisition. The Hon'ble Court also noted
adjudication of delay in setting up of a stale claim equitably
commensurate to substantial justice based on facts and
circumstances of each case.
28. In the case of Asmaboo Kurban Hossein (supra), it
was held that for execution contemplated under Section
77(2) of the Calcutta Improvement Act was to be carried
following the procedure laid down in the Section 82 of the
Code of Civil Procedure. The Coordinate Bench of this
Court held in the aforesaid case that,
"It seems to me, on hearing the learned
advocate on both sides, that s. 82 of the
Civil Procedure Code has got no application
to an award made by the Improvement
Trust Tribunal on a reference made to it by
the Land Acquisition Collector of Calcutta.
Section 82 occurs in Part IV of the Civil
Procedure Code, which deals with suits in
particular cases, and ss. 79 to 82 of that
Chapter are devoted to suits by or against
the Crown or public officers in their official
capacity. Section 79 lays down how the
authorities are to be described in a suit by
or against the Crown. Section 80 provides
that no suit shall be instituted against the
Crown or any public officer in respect of any
act purporting to be done by such officer in
his official capacity until the expiration of
two months next after a notice in writing,
in terms of the section, was served upon the
Crown or the public officer as the case may
be. Section 81 exempts a public officer who
is thus sued from arrest and personal
appearance. Section 82 then lays down that,
when the decree is against the Crown or
against a public officer in respect of any
such act as aforesaid, a time shall be
specified in the decree within which it shall
be satisfied; and if the decree is not
satisfied within the time so specified, the
Court shall report the case for orders of the
Provincial Government. It further provides
that execution shall not be issued on any
such decree unless it remains unsatisfied
for the period of three months computed
from the date of such report. Thus, it seems
clear that s. 82 is confined to decrees
passed in suits which are referred to in
previous sections and which can only be
instituted after service of notice under s. 80
of the Code of Civil Procedure. The object of
the section undoubtedly is to allow time
and opportunity to the Crown or public
officers to satisfy the decree amicably
before execution proceedings are allowed to
be started against them. I do not think that
this provision can, be applied to an award
made by the Improvement Trust Tribunal.
Under s. 71, cl. (d) of the Calcutta
Improvement Act, the award of the Tribunal
shall be deemed to be the award of the
Court under the Land Acquisition Act, 1894.
Section 26 of that Act prescribes the form
of an award to be made by the Court. It lays
down that the award shall be in writing
signed by the Judge and shall specify that
amount awarded by cl. (1) of sub-s. (1) of s.
23 and also the amounts respectively
awarded under each of the other clauses of
the same sub-section. Section 77, cl. (2) of
the Calcutta Improvement Act provides that
every award of the Tribunal and every order
made by the Tribunal for the payment of
money shall be enforced by the Court of
Small Causes of Calcutta as if it were a
decree of that Court. I am inclined to think
that an award made by the Tribunal is not a
decree at all for purposes of the Civil
Procedure Code. It simply specifies the
amount of compensation that is allowed to
the claimant under several heads and the
grounds of awarding the said amount. Power
is given to the Calcutta Small Causes Court
to enforce the award as if it were a decree of
that Court; but, as a matter of fact, it is not
a decree of that Court or of the Court which
actually made it. It is true that by Act XIX
of 1921, sub-s. (2) was added to s. 26 of the
Land Acquisition Act of 1894, and this sub-
section provides that every such award shall
be deemed to be a decree and the statement
of the grounds of every such award a
judgment within the meaning of s. 2, cl. (ii)
and s. 2, cl. (ix) respectively of the Civil
Procedure Code, 1908. But as was held by
their Lordships of the Judicial Committee
in the case of Secretary of State for India in
Council v. Hindusthan Co-operative
Insurance Society, Limited [(1931) I.L.R. 59
Cal. 55 : L.R. 58 I.A. 259.] , the Calcutta
Improvement Act is a self-contained act and
it merely incorporates certain provisions
from the Land Acquisition Act, 1894, and it
was only for convenience of drafting that
the reference was so made instead of setting
out in extenso the provisions which it was
desired to adopt. Sub-section (2) of s. 26,
which was introduced by the amending Act
of 1921, cannot, therefore, be taken as a
part of the Calcutta Improvement Act of
1911.
But, even assuming for the sake of
argument that an award made by the
Tribunal is a decree, it is not a decree to
which s. 82 is applicable. Here there was no
suit against the Crown or any public officer
as such, as contemplated by Part IV of the
Civil Procedure Code and which could only
be instituted after service of notice under s.
80 of the Code. The Collector made an
award allowing compensation for land
compulsorily acquired under statutory
powers, and the party aggrieved exercised
his right of having a reference to the
Tribunal which has the right of making the
final award. There is no suit and no decree
against the Crown, though the award could
be enforced as if it was a decree.
29. In the case of Banda Development Authority
(Supra) the Hon'ble Supreme Court noted a delay of nine
years in approaching the writ court and held that,
"17. It is true that no limitation has been prescribed for filing a petition under Article 226 of the Constitution but one of the several rules of self-imposed restraint evolved by the superior courts is that the High Court will not entertain petitions
filed after long lapse of time because that may adversely affect the settled/crystallised rights of the parties. If the writ petition is filed beyond the period of limitation prescribed for filing a civil suit for similar cause, the High Court will treat the delay unreasonable and decline to entertain the grievance of the petitioner on merits."
30. In the case of Digambar (Supra) the Hon'ble
Supreme Court noted that,
"20. Power of the High Court to be
exercised under Article 226 of the
Constitution, if is discretionary, its
exercise must be judicious and reasonable,
admits of no controversy. It is for that
reason, a person's entitlement for relief
from a High Court under Article 226 of the
Constitution, be it against the State or
anybody else, even if is founded on the
allegation of infringement of his legal
right, has to necessarily depend upon
unblameworthy conduct of the person
seeking relief, and the court refuses to
grant the discretionary relief to such
person in exercise of such power, when he
approaches it with unclean hands or
blameworthy conduct.
23. Therefore, where a High Court in
exercise of its power vested under Article
226 of the Constitution issues a direction,
order or writ for granting relief to a person
including a citizen without considering his
disentitlement for such relief due to his
blameworthy conduct of undue delay or
laches in claiming the same, such a
direction, order or writ becomes
unsustainable as that not made judiciously
and reasonably in exercise of its sound
judicial discretion, but as that made
arbitrarily."
31. In the case of Leelawanti and others (Supra) the
Supreme Court negated the stale claim of the petitioners
in following terms,
"13. We have considered the respective
submissions and examined the records. In
our view, the High Court did not commit
any error by not entertaining the
appellants' challenge to the acquisition of
land because they did not offer any
explanation for the long time gap of more
than three decades between the issue of
notifications under Sections 4 and 6 i.e.
1976 and filing of the writ petition i.e.
2007."
32. In Bhailal Bhai (Supra) Hon'ble Supreme Court
laid down that,
"21. The learned Judges appear to have
failed to notice that the delay in these
petitions was more than the delay in the
petition made in Bhailal Bhai case out of
which Civil Appeal No. 362 of 62 has
arisen. On behalf of the respondents-
to 867 of 1962) Mr Andley has argued that
the delay in these cases even is not such as
would justify refusal of the order for
refund. We argued that assuming that the
remedy of recovery by action in a Civil
Court stood barred on the date these
applications were made that would be no
reason to refuse relief under Article 226 of
the Constitution. Learned counsel is right
in his submission that the provisions of the
Limitation Act do not as such apply to the
granting of relief under Art 226. It appears
to us however that the maximum period
fixed by the legislature as the time within
which the relief by a suit in a Civil Court
must be brought may ordinarily be taken
to be a reasonable standard by which
delay in seeking remedy under Article 226
can be measured. The court may consider
the delay unreasonable even if it is less
than the period of limitation prescribed for
a civil action for the remedy but where the
delay is more than this period, it will
almost always be proper for the court to
hold that it is unreasonable. The period of
limitation prescribed for recovery of money
paid by mistake under the Limitation Act
is three years from the date when the
mistake is known. If the mistake was
known in these cases on or shortly after
January 17, 1956 the delay in making
these applications should be considered
unreasonable. If, on the other hand, as Mr
Andley seems to argue, that the mistake
discovered much later this would be a
controversial fact which cannot
conveniently be decided in proceedings. In
either view of the matter we are of opinion
the orders for refund made by the High
Court in these seven cases cannot be
sustained."
33. In Nanda Roy (Supra) this court found a writ
petition not maintainable as the period of limitation for
claiming of title and possession to a property involved in
the writ petition had already elapsed.
34. As noted, it is admitted position that the land in
question was acquired in terms of the provision Calcutta
Improvement Act, 1911 which, in turn, provides for
acquisition of land in accordance with the land
Acquisition Act, 1894.
35. Section 69 of the Calcutta Improvement Act reads
as follows: -
69. The Board may, with the previous sanction of the '[State Government], acquire land under the provisions of the Land Acquisition Act, 1894, for carrying out any of the purposes of this Act.
Exp1anarion.-The power of the Board to acquire land under the Land Acquisition Act, I 894, may be exercised not only in respect of lands falling within an improvement scheme already framed but also in respect of lands relating to which the Board may frame improvement schemes in future.
36. The land of the writ petitioners situated at premises
No. 351, Prince Anwar Shah Road measuring 2 Cottah 10
Chittacks and 36 sq. ft. was acquired by Calcutta
Improvement Trust for the scheme of the Trust being
scheme No.114-B. The acquisition proceeding was
started in the year 1971. The final award by the LA
Collector was made on January 09, 1979. The possession
of the acquired land was taken by the LA Collector on
October 11, 1985. Being dissatisfied with the award the
predecessor-in-interest of the petitioners preferred a
reference petition. The reference case being C.I.T. Case
No. 30 of 1989 was disposed of by the Tribunal, by a
judgment and order passed on January 03, 1995.
37. The judgment and order passed in C.I.T. Case No.
30 of 1989 modified the original award. The Tribunal also
held in the said proceeding that the claimant was entitled
for damages under Section 48A of the Land Acquisition
Act @9% per annum for one year from the date of taking
possession i.e. October 11, 1985 and thereafter @ 15%
per annum till the amount is remitted to the tribunal. It
directed the LA Collector to remit the award amount
together with the interest and costs to the tribunal in
terms of Section 82 (2) of the Code of Civil Procedure,
within three months to be calculated from the date of
transmission of the statement of costs.
38. There is nothing on the record to establish as to
when the statement of costs was transmitted to the LA
Collector. However, materials on record suggest that the
amount was not remitted within the stipulated period of
three months.
39. In fact, the materials on record reveal that even the
department or the board and Tribunal were in dark about
the payment of the compensation amount to the
claimants.
40. The writ petitioners, being successors-in-interest of
the original claimant have come up with a case that they
were already reeling under frustration for the delay in
payment of compensation as the land acquisition
proceeding started in 1971 culminated into disposal of
their valuation reference being C.I.T. Case No. 30 of 1989
on January 03, 1995 asking the LA Collector to remit the
amount of compensation together with the damages and
costs within three months. But the said amount was not
so remitted for a considerable length of time. The
claimants were assured by their advocate conducting the
proceeding that proper steps for withdrawal of the
amount would be taken as and when compensation
money is deposited with the tribunal.
41. The Land Acquisition Collector by a writing dated
June 28, 2011 requested the O.S.D. Kolkata
Improvement Trust to remit the decreetal amount at the
earliest revising the compensation amount to ₹. 2, 32,
315/- only, with interest calculated up to October 10,
2010. In response to such communication the O.S.D.
Kolkata Improvement Trust by his writing dated April 05,
2013 informed the First Land Acquisition Collector that
an amount of ₹. 1, 85, 975.68 was released towards
payment of decreetal amount in respect of acquisition of
the premises No. 351, Prince Anwar Shah Road on July
26, 2005.
42. The Kolkata Improvement Trust took about two
years to respond to a letter regarding providing fund to
meet the decreetal expenses payable towards the
appellants. However, it does not speak of anything with
regard to the amount with interest calculated till October
10, 2010. Similar information is forthcoming from the
note of C.A.O, Calcutta Metropolitan Development
Authority (CMDA) dated July 26, 2018.
43. Therefore, from the purport of the correspondence
made between the Calcutta Improvement Trust, Land
Acquisition Collector and the Calcutta Metropolitan
Development Authority, referred to above, it is evident
that though the award money was paid in the year 2005
i.e. after about 10 years of the modified award, the
authorities were not in the know of such deposit.
Consequently, the claimant or the present appellants
were never informed about such deposit to enable them
to withdraw such amount. No notice in this regard was
served upon the awardees specially, when the amount
was not deposited within the stipulated time of three
months as fixed by the tribunal. Such conduct on the
part of the respondent authorities fortifies the case of the
appellants that due to inordinate delay they lost hope of
getting fair compensation for the land acquired of them
and lost touch with the conducting advocate, out of
frustration.
44. Moreover, writing of the LA Collector dated June 28,
2011 discloses that the award amount carried recurring
interest until payment, which was last calculated up to
October 10, 2010. If that be so, since the respondents are
not in a position to demonstrate any lawful endeavor on
their part to pay off the claim amount, the recurring
interest on the award is continuing even today. There
appears nothing on record that the award amount was
ever tendered by the LA Collector to the claimant in
terms of Section 31 of the Land Acquisition Act, 1894. In
that view of the facts, the contention of the respondent
with regard to lapse of the claim for limitation does not
seem to be plausible. Not only that, the writings of the
authorities, referred to above also goes to show that the
authorities, from time to time acknowledged the dues of
the claimants firstly, in the year 2005 when the amount
was credited with the LA Collector, 2010 when the
interest was calculated, 2011 when LA Collector asked
for remittance of the award amount, 2013 when the
writing of LA Collector was responded, 2017 when the
appellants served notice through their lawyer and in the
year 2018. In such view of the matter, the period of
limitation, if there be any, has automatically went on
extending and for this reason, at no stretch of
imagination, the claim of the appellants can be said to be
barred by limitation.
45. There is another aspect in the matter. Section 3 of
the Indian Trust Act, 1882 reads as under: -
3.Interpretation-clause--"trust":--A "trust"
is an obligation annexed to the ownership
of property, and arising out of a
confidence reposed in and accepted by the
owner, or declared and accepted by him,
for the benefit of another, or of another
and the owner:
46. Section 123 of the Calcutta Improvement Act, 1911
provided as follows:
123. The moneys credited to the capilal account shall be held by the Board in trust, and shall be applied to--
(a) ..........................
(b) meeting the cost of acquiring land for carrying out any of the purposes of this Act ;
(c) ............................. ;
(d) ..............................;
(e) ...............................;
(f) ...............................;
(g) ...............................;
(h) ...............................;
47. Thus, it is declared in the statute itself that the
money credited to the capital account of the Calcutta
Improvement Trust was to be held by the Board in trust
and was to be applied for specific purposes, including
payment towards acquisition of lands for carrying out the
purposes of the Act of 1911. Once, such amount was
transmitted to LA Collector in terms of an award or
modified award, as the case may be, such authority can
be held to be holding such amount as trustee or
representative of the trustee, for the benefit of the land
owner whose land was acquired. In such contingency, the
LA Collector or the Calcutta Metropolitan Development
Authority (CMDA) can well be considered as
representative of such trustee.
48. In the given facts, Section 10 of the Indian
Limitation Act, 1963 would surely come in the aid of the
appellants which provides hence: -
10. Suits against trustees and their
representatives.--Notwithstanding
anything contained in the foregoing
provisions of this Act, no suit against a
person in whom property has become
vested in trust for any specific purpose, or
against his legal representatives or
assigns (not being assigns for valuable
consideration), for the purpose of following
in his or their hands such property, or the
proceeds thereof, or for an account of such
property or proceeds, shall be barred by
any length of time.
49. We have noted hereinbefore that the award amount,
even if remitted to the credit of LA Collector, for its
disbursal in favour of the appellants or their predecessor-
in-interest was never tendered to them. No notice either
was served enabling them to withdraw the same. In fact,
payment of compensation has not been made as yet. The
claimant having not approached the executing court does
not absolve the respondents from their liability to pay the
compensation for the land acquired.
50. By now it is well settled position of law that State
cannot hide behind delay & laches to evade it's
responsibility after acquiring land. There cannot be a
'limitation' to doing justice.
51. Therefore, in the light of discussions made
hereinabove, we are of the view that the appellants are
very much entitled for the compensation of their land
acquired by the respondent, in terms of the judgment
and order passed on January 03, 1995 in C.I.T. Case No.
30 of 1989 (valuation) with interest calculated up to the
date of payment in full. Accordingly, respondents are
jointly and severally directed to make payment of such
compensation to the appellants within a month hence.
52. Consequently, FMA 689 of 2022 is hereby allowed.
The impugned order dated February 09, 2022 passed in
WPA 4165 of 2018 is set aside.
53. In view of the disposal of the main appeal interim
application shall stand disposed of.
54. Urgent photostat certified copy of this order, if
applied for, be given to the parties upon priority basis
on compliance of all formalities.
[MD. SHABBAR RASHIDI, J.]
55. I agree.
[DEBANGSU BASAK, J.]
Publish Your Article
Campus Ambassador
Media Partner
Campus Buzz
LatestLaws.com presents: Lexidem Offline Internship Program, 2026
LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!