(1.) The appellant was the owner of Plot No. 14 of Scheme No. LXV1, CIT Scheme. The property was initially numbered as 19, Chatawalla Gullee. In or about 1955 the subject property was acquired under the provisions of the Land Acquisition Act, 1894 for the purpose of an improvement scheme under the Calcutta Improvement Trust (hereinafter referred to as 'CIT'). Section 81 of the Calcutta Improvement Act, 1911 (hereinafter referred to as the 'said Act of 1911') provides for disposal of the land found to be surplus by the CIT. Section 81 of the said Act being relevant herein is quoted below:
(2.) Under sub-section (1) of section 81, CIT is empowered to retain, or hire or lease or sell or exchange or otherwise dispose of, any land vested in or acquired by them under the said Act of 1911. Sub-section (2) provides for the procedure for such disposal. In case Board decides to sell any land, it shall give notice by advertisement in local newspapers and shall offer the said plot to the original owner to have it purchased at the rate to be fixed by the Board, provided however, the same is not detrimental to public interest.
(3.) In the year 1962, CIT decided to sell Plot No. 14 to ESI Corporation being a statutory Government Organization at the rate of Rs. 38,000/- per cottah which was subsequently reduced to Rs. 36,500/- per cottah. The said price was fixed by the land committee of CIT in its meeting held on 3rd February, 1962.