COOCH BEHAR BANK LTD Vs. STATE

JUDGEMENT

(1.) THIS is an application by the Liquidator on behalf of the Cooch Behar Bank Ltd. in liquidation for appointment of a Receiver to collect compensation money awarded in favour of the respondents in respect of certain properties mentioned in the petition and also for an injunction restraining the respondents, their servants and agents from withdrawing a sum of Rs. 12,250-54 n. p. or any portion thereof as may be awarded as compensation, ad-interim or otherwise. The facts which have given rise to this application are shortly as follows:the petitioner company (Cooch Behar Bank Ltd.) had instituted a title suit No. 14 of 1951 in the court of the District Judge,cooch Behar for enforcement of a mortgage executed by the respondents in respect of certain zamindary properties mentioned in paragraph 3 of the petition known as Folimari Jote in the District of Cooch Behar in consideration of a loan of Rs. 19,000/- which was advanced by the petitioner company to the respondents. A preliminary mortgage decree was passed in the said suit on the 2nd of April, 1952 by which it was declared that a sum of Rs. 20,069/2/-was due to the petitioner company an the date of the Saiddiara. On 25th August, 1952 the petitioner company was directed to be wound up by this Court. Thereafter on obtaining information that the mortgaged properties had been acquired by the State of West Bengal under the provisions of the West Bengal Estates Acquisition Act, 1953, the Court Liquidator addressed a letter to the Deputy Commissioner of Cooch Behar on the 22nd February, 1955, requesting him to pay all compensation money in relation to the mortgaged properties to the petitioner bank as the holder of the said mortgage decree. Thereafter further correspondence passed between the Liquidator and the District Compensation Officer and ultimately on the 7th of July, 1958 the Court Liquidator received a letter from the District Compensation Officer dated the 3rd July, 1958 in which it was stated that a sum of Rs. 12,250, and 54 n P. had been determined as the amount which was payable as compensation to the respondents in respect of the properties mentioned in paragraph 3 of the petition and enquiring whether any order of attachment had been obtained by the petitioner company in respect of the said compensation money. The petitioner has therefore made this application for the relief's which have already been mentioned in an earlier part of this judgment,

(2.) ON behalf of the respondents it has teen argued that Sec. 26 of the West Bengal Estates Acquisition Act, 1953 imposes a disability on holders of decrees to proceed in execution against the amount payable as compensation to an intermediary as defined in Sec. 2 (i) of the West Bengal Estates Acquisition Act, 1953, (W. B. Act I of 1954) in respect of acquisition of his land under the provisions of this Act except to the extent of 50 per cent. of the total amount of compensation payable, and if any ad-interim payment is made under the provisions of subsections (1) and (2) of Sec. 12 of the West Bengal Estates Acquisition Act, 1953 such payment is also immune from attachment and no execution can be levied in respect of the amount which is paid by way of interim compensation. Section 26 of the West Bengal Estates Acquisition Act, 1953 is as follows:

(3.) IT is thus clear from the provisions of section 26 as amended by the West Bengal Act XXV of 1957 that subsection (1) of this Section exempts 50 p. c. of the compensation money from attachment in execution of any decree of any Court. In other words, the object of the framers of the Section was to place 50 p. c. of the compensation money beyond the reach of the creditors and to make it available to the intermediary who is being deprived of practically the whole of his zamindary properties by compulsory acquisition under the provisions of this Act. The concluding four lines of sub-section (3) of Section 26 put a further limitation or restriction on the power of the decree-holders to realise the decretal dues by way of execution, by providing that all sums recoverable under an order of attachment shall be deducted from the amount of compensation payable in non-negotiable bonds under subsection (2) of Section 23. In other words, no execution can be levied on the amount of compensation which is paid or is payable in cash according to the table laid down in Section 23. It is also clear from the words which have been introduced at the end of subsection (3) of Section 23 of the Act by the amending Act of 1957 that ad-interim payments made under Sections 12 (1) and 12 (2) of the Act are also immune from attachment or process of execution. The letter of the District Compensation Officer, Cooch Behar which is annexed to the petition states that the sum which is immediately payable to the intermediary is an ad-interim payment as contemplated by Section 12 of the Act and the petitioner cannot therefore touch it nor can they leave any right to proceed against it by way of execution. It appears to me But that is the effect of the words introduced by the amendment made by Section 5 of the West Bengal Act XXV of 1957, and the contention raised in the letter of the compensation officer is correct.