LILY GHOSH Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) This appeal is at the instance of the referring claimants and it arises out of a reference case under Section 18 of the Land Acquisition Act, 1894.

(2.) The appellants were the owners of the acquired land measuring 3 bighas 15 cottahs 2 chhataks 40 sq. ft. and appertaining to the municipal premises No. 109B, Ultadanga Main Road, Calcutta. The appellants were in need of money for paying off their debts due on account of the mortgage of the acquired land to the Sindu Family Annuity Ltd. The Refugee Rehabilitation Department of the Government of West Bengal was in need of land for the purpose of establishing a refugee market. The appellants approached the said Department offering to it to sell the acquired land. The Department agreed to purchase the acquired land and the market price was thereafter settled amicably at Rs. 1,600/- per cottah. It appears that it was also agreed between the parties that the Government would acquire the land so as to perfect its title, for admittedly it was under a mortgage. On April 25, 1956, the appellants delivered possession of the acquired land to the Refugee Rehabilitation Department, and on May 24, 1956 the notification under Section 4 of the Land Acquisition Act was published in the official Gazette. The appellants approached the Government for payment to them of 80 per cent of the price settled so as to enable them to pay off the mortgage debt. They also made a claim before the Collector pursuant to a notice under Section 9 of the Land Acquisition Act for payment of the additional sum of 15 per cent as provided in Section 23 (2) of the Act. On August 27, 1956, the Government sanctioned payment to the appellants of the 80 per cent of the price subject to their right to claim the additional 15 per cent. On Oct. 5, 1956 an agreement was executed by the parties for the payment by the Government to the appellants of a sum of Rs. 96,231/-, being the 80 per cent of the price of the acquired land. It is not disputed that the appellants were paid the said sum as agreed.

(3.) The Collector made a formal award of compensation for Rs. 1,20,288.89 calculated at the agreed rate of Rs. 1,600/-per cottah including the additional sum of 15 per cent. What the Collector did was that he split up the said sum of Rs. 1,20,288.89 into two parts, namely, Rs. 1,04,599.03 and Rs. 15,689.86, the former being the market-value and the latter being the additional 15 per cent.