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Saturday, August 2, 2014

Civil Suits - Equities - the respondent took land on lease not from a rightful owner - constructed Hospitals therein - suitable compensation - Apex court held that the Appellants are entitled and the first Respondent Apollo Hospitals is liable to pay the following amounts: Compensation towards value of land Rs.24,04,188 per cottah for 11.66(11.659) cottah which comes to Rs.2,80,32,832 (Rupees Two Crores Eighty Lakhs Thirty Two Thousand Eight Hundred and Thirty Two only). Interest at the rate of 2% per annum for 23 years which works out to Rs.1,28,95,102 (Rupees One Crore Twenty Eight Lakhs Ninety Five Thousand One Hundred and Two only). Utilization charges at the rate of Rs.21,500 per annum equal to Rs.4,94,500 (Rupees Four Lakhs Ninety Four Thousand Five Hundred only). Costs Rs.5 lacs (Rupees Five Lakhs only). The first Respondent shall deposit the sum of Rs.4,20,00,000 with the Secretary General of this Court within four weeks from today. The Appellants shall make all arrangements to produce the original title deeds and specify the schedule of the land and the sketch from the competent authority of the revenue department and furnish the same within eight weeks from this date. On submission of such records, by the Appellants to this court, the first Respondent shall inspect those records and express its confirmation. On such confirmation being submitted by the first Respondent within two weeks of the submission of the records by the Appellants, within two weeks thereafter the Appellants will execute a deed of conveyance of the land admeasuring about 11.66 (11.659) cottah of land in favour of first Respondent. All stamp duty and registration charges and other incidental expenses for the conveyance shall be borne by the first Respondent Appollo Hospitals. On such registration of the conveyance deed, the Appellants will be at liberty to seek for release of Rs.4,20,00,000 with whatever interest accrued thereon. The State of West Bengal shall direct its authorities to ensure that the lands involved in this appeal, namely, 11.66 (11.659) cottah is issued necessary certificate of such demarcation. The above said directions are without prejudice to the rights of the first Respondent hospital in relation to the rest of the lands which is governed by the registered lease deed dated 21.06.1991 as between the first Respondent hospital and the State of West Bengal which is stated to be for a period of 30 years with provision for option for further renewal for additional two terms of 30 years each. It is needless to state that the said rights of the first Respondent hospital under the registered lease deed dated 21.06.1991 would be governed by the terms and conditions contained therein in respect of the lands, namely, 34,147 - 743.21 square metre = 33,403.79 square metres. On deposit of the sum of Rs.4,20,00,000 with the Secretary General of this Court as per paragraph “a” of these directions, the Secretary General shall invest the same in UCO Bank initially for a period of six months. It shall be renewed periodically pending further orders to be passed by this Court. With the above directions, these appeals will stand disposed of. However, in order to ensure compliance of the directions by all the parties concerned, call these appeals for passing final orders in the first week of December, 2014. However, in the meantime, if all formalities are complied with, it is open to the parties to mention for posting the above appeals for passing final orders. = CIVIL APPEAL NOS…83-6684 OF 2014 (@ SLP (C) Nos. 8854-8855 of 2010) Somnath Chakraborty and Anr. … Appellants VERSUS Appollo Gleneagles Hospitals Ltd. & Ors. … Respondents = 2014 July. Part – http://judis.nic.in/supremecourt/filename=41788

Civil Suits - Equities - the respondent took land on lease not from a rightful owner - constructed Hospitals therein - suitable compensation - Apex court held that  the  Appellants  are
entitled and the first Respondent Apollo Hospitals is  liable  to  pay  the
following amounts:

  • Compensation towards  value  of  land  Rs.24,04,188  per  cottah  for  11.66(11.659) cottah which comes to  Rs.2,80,32,832  (Rupees  Two  Crores  Eighty Lakhs Thirty Two Thousand Eight Hundred and Thirty Two only).


  • Interest at the rate of 2% per  annum  for  23  years  which  works  out  to Rs.1,28,95,102 (Rupees One Crore Twenty Eight  Lakhs  Ninety  Five  Thousand One Hundred and Two only). Utilization charges at the rate of Rs.21,500 per annum equal to  Rs.4,94,500 (Rupees Four Lakhs Ninety Four Thousand Five Hundred only).


  • Costs Rs.5 lacs (Rupees Five Lakhs only).
  • The first Respondent shall  deposit  the  sum  of  Rs.4,20,00,000  with  the Secretary General of this Court within four weeks from today. 
  • The Appellants shall make all arrangements to  produce  the  original  title deeds and specify  the  schedule  of  the  land  and  the  sketch  from  the competent authority of the revenue department and furnish  the  same  within eight weeks from this date.


  • On submission of such records, by the Appellants to this  court,  the  first Respondent shall inspect those records and express its confirmation.
  • On such confirmation being submitted by  the  first  Respondent  within  two weeks of the submission of the records by the Appellants, within  two  weeks thereafter the Appellants will execute a deed  of  conveyance  of  the  land admeasuring  about  11.66  (11.659)  cottah  of  land  in  favour  of  first Respondent.


  • All stamp duty and registration charges and other  incidental  expenses  for the conveyance shall be borne by the first Respondent Appollo Hospitals.


  • On such registration of the conveyance  deed,  the  Appellants  will  be  at liberty to  seek  for  release  of  Rs.4,20,00,000  with  whatever  interest accrued thereon.


  • The State of West Bengal shall direct its authorities  to  ensure  that  the lands involved in this appeal,  namely,  11.66  (11.659)  cottah  is  issued necessary certificate of such demarcation.


  • The above said directions are without prejudice to the rights of  the  first Respondent hospital in relation to the rest of the lands which  is  governed by  the  registered  lease  deed  dated  21.06.1991  as  between  the  first Respondent hospital and the State of West Bengal which is stated to  be  for a period of 30 years with provision  for  option  for  further  renewal  for additional two terms of 30 years each.  It is needless  to  state  that  the said rights of the first Respondent  hospital  under  the  registered  lease deed dated  21.06.1991  would  be  governed  by  the  terms  and  conditions contained therein in respect of the lands, namely, 34,147  -  743.21  square metre = 33,403.79 square metres.


  • On deposit of the sum of Rs.4,20,00,000 with the Secretary General  of  this Court as per paragraph “a” of these directions, the Secretary General  shall invest the same in UCO Bank initially for a period of six months.  It  shall be renewed periodically pending further orders to be passed by this Court.


  • With the above directions, these appeals will stand  disposed  of.  However, in order  to  ensure  compliance  of  the  directions  by  all  the  parties concerned, call these appeals for passing final orders in the first week  of December, 2014. However, in the meantime, if all  formalities  are  complied with, it is open to the parties to mention for  posting  the  above  appeals for passing final orders. =


the appeals pertain to a piece of  land  which
is as on date in the possession of the first Respondent  Appollo  Gleneagles
Hospitals  Ltd.  (hereinafter  called  “Appollo   Hospitals”),   which   was
originally owned by one Narayan Chandra Dutta.
He stated to  have  sold  the
said lands to  one  Tilak  Sundari  Debi.
 Her  title  was  confirmed  after
prolonged litigation in the judgment of the High  Court  of  Calcutta  dated
25.07.1986 in Second Appeal No. 384 of 1967.
When the said  litigation  was
pending, the heirs of late Tilak Sunderi Debi sold the  said  lands  to  the
present Appellants who became the joint owners of the land consisting of  11
Katha 10 chitaks and 25 square feets, in all 11.659 cottah of land. =

DIVISION BENCH

The Division Bench by the judgment  impugned  in
these appeals held as under in paragraph 12.1:

“12.1 The second appellate decree might be binding only upon the parties  to
the said proceedings.  However, it is otherwise a judgment in rem, at  least
against any person claiming title derived from the judgment debtor.   Hence,
State deriving title by way of vesting from Orient was not entitled to  deny
the right, title and interest of the respondents in question.”  (underlining
is ours)

Again in paragraph 12.2 the Division Bench observed as under:
“12.2…….The title was in dispute. Hence the doctrine of lis  pendence  would
apply. During the pendency of the second  appeal,  the  present  respondents
purchased the interest of the then owner of the said land in question  which
was yet to be adjudicated  upon.  They  stepped  into  the  shoes  of  their
predecessor in interest.  The declaration was made in their  favour  by  the
Division Bench of this Court.  Hence,  the  State  was  obliged  to  proceed
against them under the provisions of the said  Act  of  1976.   The  learned
Single Judge rightly observed as such and we are in full agreement with  His
Lordship on that score.” (underlining is ours)
Again in paragraph 12.3 the Division Bench made further observations to  the
following effect:

“12.3 It is true that the hospital was constructed by  Appollo  by  spending
huge sum. They did it at their own risk and peril as it was a lease  for  30
years which is going to expire in 2021. The  Hospital  authority  took  that
risk before proceeding further.  Hence, the contention made by Mr. Mitra  on
that score cannot be accepted.”
Further observation was made by Division Bench in paragraph 12.4 as under:

“12.4 We however, feel that although it is a private hospital it is  serving
people of the State giving medical services and it would not  be  proper  to
stop such activity at this stage. We are prompted to say so as we also  find
the respondents guilty of laches.  They did  not  approach  the  appropriate
authority  at  the  right  moment.   They  should  have   raised   objection
contemporaneously.  However, such laches cannot take  away  their  right  to
claim appropriate relief without  disturbing  the  hospital,  if  possible.”
(underlining is ours)
Ultimately the Division Bench issued the following direction  in  paragraphs
13.1 and 13.2. The same are extracted as under:
“13.1 The order of the learned Single Judge is thus modified to  the  extent
that the hospital authority need not hand over  actual  physical  possession
to the State before a final declaration, if any, is made  under  Section  10
(3) considering the return to be submitted by the respondents  in  terms  of
the liberty granted by His Lordship to them.

13.2 The hospital authority would be obliged to compensate  the  respondents
to the extent of the land, if any allowed to be retained  by  them,  by  the
competent authority under the said Act of 1976 and for the balance  part  of
the land the State would be obliged to pay compensation in  accordance  with
law.”
The above said judgment of the  Division  Bench  is  the  subject  matter  of
challenge in these appeals.  =

Apex court held that
 Accordingly,  we  hold  that  the  Appellants  are
entitled and the first Respondent Appollo Hospitals is  liable  to  pay  the
following amounts:

Compensation towards  value  of  land  Rs.24,04,188  per  cottah  for  11.66
(11.659) cottah which comes to  Rs.2,80,32,832  (Rupees  Two  Crores  Eighty
Lakhs Thirty Two Thousand Eight Hundred and Thirty Two only).

Interest at the rate of 2% per  annum  for  23  years  which  works  out  to
Rs.1,28,95,102 (Rupees One Crore Twenty Eight  Lakhs  Ninety  Five  Thousand
One Hundred and Two only).

Utilization charges at the rate of Rs.21,500 per annum equal to  Rs.4,94,500
(Rupees Four Lakhs Ninety Four Thousand Five Hundred only).

Costs Rs.5 lacs (Rupees Five Lakhs only).

The first Respondent shall  deposit  the  sum  of  Rs.4,20,00,000  with  the
Secretary General of this Court within four weeks from today.

The Appellants shall make all arrangements to  produce  the  original  title
deeds and specify  the  schedule  of  the  land  and  the  sketch  from  the
competent authority of the revenue department and furnish  the  same  within
eight weeks from this date.

On submission of such records, by the Appellants to this  court,  the  first
Respondent shall inspect those records and express its confirmation.

On such confirmation being submitted by  the  first  Respondent  within  two
weeks of the submission of the records by the Appellants, within  two  weeks
thereafter the Appellants will execute a deed  of  conveyance  of  the  land
admeasuring  about  11.66  (11.659)  cottah  of  land  in  favour  of  first
Respondent.

All stamp duty and registration charges and other  incidental  expenses  for
the conveyance shall be borne by the first Respondent Appollo Hospitals.

On such registration of the conveyance  deed,  the  Appellants  will  be  at
liberty to  seek  for  release  of  Rs.4,20,00,000  with  whatever  interest
accrued thereon.

The State of West Bengal shall direct its authorities  to  ensure  that  the
lands involved in this appeal,  namely,  11.66  (11.659)  cottah  is  issued
necessary certificate of such demarcation.

The above said directions are without prejudice to the rights of  the  first
Respondent hospital in relation to the rest of the lands which  is  governed
by  the  registered  lease  deed  dated  21.06.1991  as  between  the  first
Respondent hospital and the State of West Bengal which is stated to  be  for
a period of 30 years with provision  for  option  for  further  renewal  for
additional two terms of 30 years each.  It is needless  to  state  that  the
said rights of the first Respondent  hospital  under  the  registered  lease
deed dated  21.06.1991  would  be  governed  by  the  terms  and  conditions
contained therein in respect of the lands, namely, 34,147  -  743.21  square
metre = 33,403.79 square metres.

On deposit of the sum of Rs.4,20,00,000 with the Secretary General  of  this
Court as per paragraph “a” of these directions, the Secretary General  shall
invest the same in UCO Bank initially for a period of six months.  It  shall
be renewed periodically pending further orders to be passed by this Court.

With the above directions, these appeals will stand  disposed  of.  However,
in order  to  ensure  compliance  of  the  directions  by  all  the  parties
concerned, call these appeals for passing final orders in the first week  of
December, 2014. However, in the meantime, if all  formalities  are  complied
with, it is open to the parties to mention for  posting  the  above  appeals
for passing final orders.

2014 July. Part – http://judis.nic.in/supremecourt/filename=41788

FAKKIR MOHAMED IBRAHIM KALIFULLA, A.K. SIKRI
                                                             Reportable

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                      CIVIL  APPEAL NOS…83-6684 OF 2014
                     (@ SLP (C) Nos. 8854-8855 of 2010)

Somnath Chakraborty and Anr.                       … Appellants


                                   VERSUS


Appollo Gleneagles Hospitals Ltd. & Ors.           … Respondents

                                  O R D E R


Fakkir Mohamed Ibrahim Kalifulla, J.

Leave granted.

These appeals are directed against a common judgment of the  Division  Bench
of the Calcutta High Court passed in  F.M.A.  No.2393  of  2005  and  F.M.A.
No.2411 of 2005 dated 08.12.2009.

To briefly narrate the facts, the appeals pertain to a piece of  land  which
is as on date in the possession of the first Respondent  Appollo  Gleneagles
Hospitals  Ltd.  (hereinafter  called  “Appollo   Hospitals”),   which   was
originally owned by one Narayan Chandra Dutta. He stated to  have  sold  the
said lands to  one  Tilak  Sundari  Debi.  Her  title  was  confirmed  after
prolonged litigation in the judgment of the High  Court  of  Calcutta  dated
25.07.1986 in Second Appeal No. 384 of 1967.  When the said  litigation  was
pending, the heirs of late Tilak Sunderi Debi sold the  said  lands  to  the
present Appellants who became the joint owners of the land consisting of  11
Katha 10 chitaks and 25 square feets, in all 11.659 cottah of land.

Be that as  it  may,  the  Urban  Land  (Ceiling  &  Regulation)  Act,  1976
(hereinafter referred to as  “the  Act”)  was  brought  into  effect  w.e.f.
17.02.1976. The civil litigation preferred by late Tilak  Sundari  Debi  was
resisted by one Orient Beverages Ltd. also known as Orient  Properties  Ltd.
claiming to have acquired title in respect of the said lands.  At  the  time
when proceedings under the Act were initiated, the  said  Orient  Properties
Ltd., pursuant to the notices issued under the said Act agreed to  surrender
the lands which was the subject matter of litigation which  ultimately  came
to be notified  under  Section  10(3)  of  the  Act  by  Notification  dated
11.05.1990.  The State of West Bengal claimed the said lands as property  of
the State as from 05.05.1990 and the Orient Properties Ltd. stated  to  have
handed over possession on 28.05.1990. Thereafter, the State handed over  the
land along with adjacent lands to one  M/s  Janapriya  Hospital  Corp.  Ltd.
pursuant to a registered lease deed for 30 years  with  option  for  renewal
under the lease deed dated 21.06.1991. Based on the  said  lease  deed,  the
Hospital paid a premium of Rs.94,41,300. Later on Janapriya  Hospital  Corp.
Ltd. became Appollo Gleneagles, the first  Respondent  herein.  As  per  the
lease deed the lease is to expire on 2021.   Apart  from  the  premium,  the
lease deed also obligated a payment of 10% of the said sum by way of  annual
lease rent.

In July, 1993, the Appellants filed a writ petition being C.O.No.8616(W)  of
1993 challenging the ultimate Notification issued under the Act. An  interim
order was initially granted  by  the  Learned  Single  Judge  on  12.07.1993
directing the Respondents to maintain status  quo.  Subsequently,  the  Writ
Petition itself came to be allowed by order dated  02.05.2005.   Even  while
the order of status  quo  was  in  operation,  it  appears  that  the  first
Respondent made some constructions and the Hospital came to be established.

Against the judgment of the learned Single Judge, Appollo Hospitals and  the
State of West Bengal preferred separate appeals in F.M.A.  No.2393  of  2005
and F.M.A. No.2411 of 2005. The Division Bench by the judgment  impugned  in
these appeals held as under in paragraph 12.1:

“12.1 The second appellate decree might be binding only upon the parties  to
the said proceedings.  However, it is otherwise a judgment in rem, at  least
against any person claiming title derived from the judgment debtor.   Hence,
State deriving title by way of vesting from Orient was not entitled to  deny
the right, title and interest of the respondents in question.”  (underlining
is ours)

Again in paragraph 12.2 the Division Bench observed as under:
“12.2…….The title was in dispute. Hence the doctrine of lis  pendence  would
apply. During the pendency of the second  appeal,  the  present  respondents
purchased the interest of the then owner of the said land in question  which
was yet to be adjudicated  upon.  They  stepped  into  the  shoes  of  their
predecessor in interest.  The declaration was made in their  favour  by  the
Division Bench of this Court.  Hence,  the  State  was  obliged  to  proceed
against them under the provisions of the said  Act  of  1976.   The  learned
Single Judge rightly observed as such and we are in full agreement with  His
Lordship on that score.” (underlining is ours)


Again in paragraph 12.3 the Division Bench made further observations to  the
following effect:

“12.3 It is true that the hospital was constructed by  Appollo  by  spending
huge sum. They did it at their own risk and peril as it was a lease  for  30
years which is going to expire in 2021. The  Hospital  authority  took  that
risk before proceeding further.  Hence, the contention made by Mr. Mitra  on
that score cannot be accepted.”

Further observation was made by Division Bench in paragraph 12.4 as under:

“12.4 We however, feel that although it is a private hospital it is  serving
people of the State giving medical services and it would not  be  proper  to
stop such activity at this stage. We are prompted to say so as we also  find
the respondents guilty of laches.  They did  not  approach  the  appropriate
authority  at  the  right  moment.   They  should  have   raised   objection
contemporaneously.  However, such laches cannot take  away  their  right  to
claim appropriate relief without  disturbing  the  hospital,  if  possible.”
(underlining is ours)

Ultimately the Division Bench issued the following direction  in  paragraphs
13.1 and 13.2. The same are extracted as under:

“13.1 The order of the learned Single Judge is thus modified to  the  extent
that the hospital authority need not hand over  actual  physical  possession
to the State before a final declaration, if any, is made  under  Section  10
(3) considering the return to be submitted by the respondents  in  terms  of
the liberty granted by His Lordship to them.

13.2 The hospital authority would be obliged to compensate  the  respondents
to the extent of the land, if any allowed to be retained  by  them,  by  the
competent authority under the said Act of 1976 and for the balance  part  of
the land the State would be obliged to pay compensation in  accordance  with
law.”

The abovesaid judgment of the  Division  Bench  is  the  subject  matter  of
challenge in these appeals.

When these appeals were moved, while issuing notice,  this  Court  gave  the
following directions in the orders dated 27.08.2012 and 05.10.2012:

“In the facts of the case,  the  concerned  learned  District  Collector  at
Mayukh Bhavan, 2nd Floor, Salt Lake, Kolkata is requested to  file  his  own
calculations taking into consideration the  calculations  submitted  by  the
present petitioner before him.  For his convenience,  the  petitioner  shall
remain present before him on 4th September, 2012.  He  shall  be  heard  and
understood as to what  is  his  grievance  and  then  final  report  may  be
prepared and submitted before us within four weeks. List the matter  in  the
first week of October, 2012.”


“Order dated 27th August, 2012 is modified to the  extent  that  the  phrase
“learned District Collector” be replaced by the “Competent Authority”  under
the Urban Land (Ceiling & Regulation) Act, 1976.  This exercise may be  done
by the learned Competent Authority within  a  period  of  six  weeks.   List
after eight weeks.”

At this  juncture,  it  will  have  to  be  noted  that  neither  the  first
Respondent nor the State  of  West  Bengal  have  chosen  to  challenge  the
impugned judgment before this Court. Therefore, the same  has  become  final
as against both of them. By virtue of this Court’s orders  dated  27.08.2012
and 05.10.2012, the  competent  authority  went  into  the  question  as  to
whether the Appellants were in possession of  any  surplus  land  under  the
provisions of 1976 Act.  An  order  came  to  be  passed  by  the  competent
authority on 30.10.2012 by which it was declared  that  the  Appellants  are
not in possession  of  any  surplus  land  in  the  agglomerated  area  and,
therefore, the question  of  compensation  to  be  given  by  the  competent
authority Kolkata under the Act does not arise.   In the light of  the  said
order, going by the ultimate direction of the Division Bench, it is now  for
the Appollo Hospitals to bear the entire compensation. In other  words,  the
Appollo Hospitals is now liable to bear the  compensation  payable  for  the
entire extent of the land namely 11.66 cottah (11.659 cottah).

Having regard to the said position and the further fact  that  the  land  in
question is situated in  land-locked  area,  even  the  Appellants  have  no
option than to accept the  compensation  for  the  lands  which  is  in  the
possession of the Appollo Hospitals right from the year 1991 when the  lease
deed came to be entered as between the Appollo Hospitals and  the  State  of
West Bengal.  Realizing the said  position,  both  the  parties  agreed  for
fixing the valuation of the lands in order to  determine  the  compensation.
By this Court’s order dated 28.01.2013, the consensus ad idem  of  both  the
parties for the appointment of Class-A Valuer approved by the Calcutta  High
Court who can be directed to determine  the  value.  List  of  the  approved
Valuers was called for and by order  dated  15.03.2013,  from  the  list  of
Class-A Valuers approved by  the  Calcutta  High  Court,  Mr.  Sandip  Nandi
Majumdar was appointed as Valuer  and  he  was  directed  to  associate  the
competing parties while submitting the report.

Pursuant to the said orders, the Valuer submitted  his  report  sometime  in
July, 2013.  Thereafter the parties took time to examine the report  of  the
Valuer.  Copies of the report were also directed  to  be  furnished  to  the
parties.  After  the  submission  of  the  reports,  parties   filed   their
statements.

From the above facts, the following factors emerge:

Appellants are the absolute owners of 11.66 (11.659) cottah  lands  situated
at premises No.59, Canal Circular Road, Kolkata.

There was no surplus lands which were capable of being  acquired  under  the
provisions of Urban Land (Ceiling & Regulation) Act, 1976.

Appollo Hospitals which was put in possession of  34,147  square  metres  of
land pursuant to the registered lease deed  dated  21.06.1991  included  the
11.66 (11.659) cottah of lands comprising of 743.21 square metres  and  that
Appollo Hospitals is in enjoyment of this property till this date.

The  said  lands,  namely,  11.66  (11.659)  cottah  are  land-locked  lands
surrounded by the other lands for which the Appollo Hospitals  is  having  a
valid lease hold rights  by  virtue  of  the  registered  lease  deed  dated
21.06.1991.

Inasmuch as the Appellants have agreed to  abide  by  the  judgment  of  the
Division Bench and since there was no challenge to the  said  order  at  the
instance of Appollo Hospitals or the  State  of  West  Bengal,  it  has  now
become imperative that the ultimate directions issued by the Division  Bench
will have to be carried out.

  By virtue of the order of the competent authority dated 30.10.2012,  since
Appellants were not holding any surplus lands in  the  urban  agglomeration,
the entire extent of land, namely, 11.66 (11.659)  cottah  belonged  to  the
Appellants and the compensation payable for the said lands will have  to  be
borne by Appollo Hospitals alone.


Keeping the above factors  in  mind,  when  we  examine  the  stand  of  the
respective parties, in the first instance, we wish  to  note  the  categoric
stand  taken  by  the  Appellants  in  their  additional   affidavit   dated
25.03.2014.  In the said additional affidavit, the Appellants have  accepted
the value fixed by the approved Valuer wherein the value  has  been  arrived
at a sum of Rs.24,04,188 per cottah as of 2013 (after providing land  locked
allowance).  In fact according to the Valuer, when he took into account  the
three Exhibits namely, Exhibits 5, 6 and 7 the value per  cottah  was  found
to be Rs.25 lacs in Exhibit 5, Rs.58,34,133 in Exhibit 6  and  24,30,889  in
Exhibit 7  and  all  the  three  exhibits  were  issued  by  the  certifying
authority of the State Government.  The certificates were dated  05.03.2013,
10.6.2013 and 27.05.2013.

We heard Mr. Ranjan Mukherjee, learned counsel for the  Appellants  and  Mr.
C.U. Singh Senior Advocate for the Appollo Hospitals,  Mr.  Pijush  K.  Roy,
counsel for the 5th Respondent and Mr.  Avijit  Bhattacharjee,  counsel  for
Respondent Nos.1 to 3 in SLP (C) No.8855 of 2010. It  will  be  advantageous
to refer to the additional affidavit filed  on  behalf  of  the  petitioners
pursuant to the order dated 09.12.2013. The  said  affidavit  was  filed  on
24.04.2014. While Exhibit 5 dated 05.03.2013 was  collected  by  the  State-
Respondent, Exhibits 6 and 7 dated 10.06.2013  and  27.05.2013  respectively
were collected by the Valuer himself. It is based  on  the  above  materials
placed  before  by  the  Valuer,  he  ultimately  arrived  at  the  sum   of
Rs.25,04,188 per cottah  after  providing  the  land-locked  allowance.   As
stated by us earlier, the Appellants have stated in paragraph  13  of  their
additional affidavit to the effect “the petitioners accepted current  market
value of land at Rs.24,04,188 per cottah as valued  by  Valuer  as  of  2013
(after providing land locked allowance)”. Therefore, as far as  the  Appollo
Hospitals is concerned, in their written submissions, there is statement  to
the effect that the Respondent No.1-hospital is in agreement that  it  shall
pay the  present  market  value  of  land  at  Rs.24,04,188  per  cottah  as
ascertained by the Valuer in his report of July, 2013. Therefore, as  regard
the value of the land per cottah, there is no scope for  any  further  probe
and, therefore, it will have to be valued at the rate  of  Rs.24,04,188  per
cottah for 11.66 (11.659) cottah of lands.

What  remains  to  be  ascertained  is  the  claim  of  the  Appellants  for
utilization charges, interest and costs. Insofar as the utilization  charges
are concerned, according to the Appellants they were deprived of the use  of
their land by the Appollo Hospitals at least from the  year  1991  when  the
hospital was put in possession pursuant to the registered lease  deed  dated
21.06.1991. It is, therefore, contended  that  when  the  Appollo  Hospitals
agreed to pay 10% of the value of the salami of land,  namely,  Rs.98,41,300
i.e. sum of Rs.9,84,130 per annum by  way  of  lease  rent  for  the  entire
extent of lands at least insofar as the  Appellants’  lands  are  concerned,
they are entitled for normal return on the average value of land from  June,
1991.  Referring to the land value which was prevailing  in  June,  1991  at
sum of  Rs.3,15,997  per  cottah  and  the  land  value  in  June,  2013  at
Rs.24,04,188  per  cottah,  the  average  land  value  was  claimed  to   be
Rs.13,60,092.50 per cottah and on that  basis  10%  of  the  said  value  is
claimed as utilization charges i.e. the sum of  Rs.1,36,009  per  annum  per
cottah.

As against the above claim, on  behalf  of  the  Appollo  Hospitals,  it  is
contended that what was agreed to be paid by way of annual lease  amount  at
the rate of 10% on the total salami of  land  was  taken  into  account  the
larger extent of 34,147 square metres  within  which  the  Appellant’s  land
which was a small portion of 743.21 square  metres.  It  is  further  stated
that the lands were marshy  lands  in  1991  totally  undeveloped  till  the
Appollo Hospitals made  improvements  by  constructing  the  hospitals  and,
therefore, if at all, any  utilization  charges  is  to  be  considered,  it
should be the normal economic rent of 6%  on  the  investment/capital  value
which would be on a sum of Rs.10,001 per annum.

Having considered the respective submissions and having  noted  the  salient
factors in the case on hand, it will have to be borne  in  mind  that  after
strenuous fight in the Court proceedings the rights of the  Appellants  came
to be crystallized as regards their ownership in the  Second  Appeal  No.384
of 1967 which was decreed  on  25.07.1986.  That  was  the  first  round  of
litigation where the  Appellants  could  ultimately  succeed  and  establish
their right of ownership over the lands in question.  Thereafter, when  they
were confronted with the subsequent proceedings under the provisions of  the
Act, they had to launch the present proceedings  again  by  approaching  the
High Court and this time by way of  writ  petition,  in  which  the  present
impugned order ultimately came  to  be  passed  by  the  Division  Bench  on
08.12.2009. Therefore, for  establishing  their  right  to  their  property,
enormous time, energy and money has been spent by the Appellants. The  right
to property is protected under Article 300A of the Constitution. In view  of
the nature of the location of the land which is in a  land-locked  position,
the Division Bench has rightly found that the grievance  of  the  Appellants
can be redressed by giving directions as contained in paragraph  13  of  the
impugned judgment by which the Respondents were directed to  compensate  the
Appellants for use of the lands.

Keeping the above factors in mind, we are of the view that to formulate  the
basis for fixing the utilization charges the method  adopted  in  the  lease
deed dated 21.06.1991 as between the Appollo  Hospitals  and  the  State  of
West Bengal can be followed.   As  per  the  said  lease  deed  the  Appollo
Hospitals agreed to pay 10% of the value of the salami land  value,  namely,
Rs.98,41,300 which worked out in a sum of Rs.9,84,130  per  annum  as  lease
rent during the period of lease, namely, 30 years. The total land for  which
the lease rent was fixed was 34,147 square metres. Applying  the  very  same
formula for arriving the rental value of the lands of the  Appellants  which
is  743.21  square  metres,  we  find  that  the  same  will  work  out   to
Rs.21,355.62 per annum [(i.e.) 743.21 ÷ 34147 x 100  =  2.17  :  9,84,130  x
2.17 ÷ 100  =  21,355.62].   On  that  basis,  we  are  convinced  that  the
utilization  charges  can  be  fixed  by  rounding  it  off  to   Rs.21,500.
Accordingly, we hold that the utilization charges shall be fixed  in  a  sum
of Rs.21,500 per annum (rounding off Rs.21,355.62 as Rs.21,500)  and  for  a
period of 23 years, namely, between 1991 and 2014, the  utilization  charges
can be arrived at. The same comes to Rs.4,94,500.

The claim of the Appellants that utilization charges should be at  the  rate
of Rs.5 lacs or on the basis of the average value  of  the  land  which  was
claimed at a sum of Rs.1,36,009 cannot be accepted,  inasmuch  as,  it  will
have to be noted that the Appellants  will  be  getting  the  value  of  the
entire 11.66 cottah of lands as per the present day market value  which  has
been fixed at Rs.24,04,188 per cottah. It cannot  be  lost  sight  that  the
value of the land in 1991 was far lower than what is now  arrived  at  based
on the Valuer’s report which is for the year 2013. If the Appollo  Hospitals
is to pay the lease rent per annum based on the salami, namely, the  royalty
value of Rs.98,41,300 it will be more appropriate to fix the lease  rent  on
the very same basis on which it was fixed under the lease dated  21.06.1991.
In that way, Appollo Hospitals cannot also have any  grievance  inasmuch  as
apart from salami of Rs.98,41,300 for the land, they agreed to  pay  10%  of
its value by way of lease rent for the first 30 years.

We, therefore, hold that utilization charges so arrived at shall be  in  the
sum of Rs.21,500 and for the period between 1991 and 2014,  namely,  for  23
years. The first Respondent Appollo hospital is  liable  to  pay  a  sum  of
Rs.4,94,500.

With that we come to the next claim of the Appellants which is the  interest
payable on the value of the land now determined by the  Valuer.   Since  the
market value as of the years 2013 has been fixed as payable  for  the  11.66
(11.659) cottah of the lands, we find that the deprivement  of  the  use  of
the land of the Appellants and the State is certainly a  right  which  is  a
Constitutional Right  and the same was deprived for no fault of  theirs.  It
is true that the land value has been fixed based  on  the  value  which  was
prevailing in  the  year  2013  while  the  Appollo  Hospitals  was  put  in
possession of the lands in the year 1991 and the stand of the Hospital  that
the land value should have been fixed in 1991 though is not acceptable,  the
said stand can certainly be taken into account while considering  the  claim
of the Appellants for payment of interest. Here again, we wish to  reiterate
that in the whole process, the Appellants have lost  their  property  rights
once and for all and on the other hand Appollo Hospitals will  get  absolute
ownership right in respect of 11.66 (11.659) cottah of  land  which  it  can
always  cherish  and  enjoy  without  any  hindrance  from   any   quarters.
Therefore, taking an overall view of the grievances of  the  Appellants,  we
are convinced that Appellants are entitled for payment  of  interest  though
not to the extent they claimed.

According to the first Respondent even if interest is  to  be  granted  that
can only be on the value that was prevailing in 1991 which according to  the
first Respondent was Rs.10,001 per cottah and on that value interest at  the
rate of 6% per annum can be made.  Instead, we hold that the Appellants  are
entitled for a nominal interest at the rate of 2% per  annum  on  the  total
value of the land as accepted by both the parties, namely,  Rs.2,80,32,832/-
. On that basis, the interest payable by the first Respondent will work  out
to a sum of Rs.1,28,95,102 for 23 years.

With that the only other claim to be considered is costs. As  stated  by  us
earlier, the Appellants have been fighting this litigation by stepping  into
the shoes of their predecessor in interest from the  year  1960  onwards  in
Title Suit No.79 of 1960 which  was  ultimately  decreed  in  Second  Appeal
No.384 of  1967  by  the  decree  dated  25.07.1986.   Even  thereafter  the
Appellants had to initiate the second round of litigation  for  ascertaining
their rights as against the proceedings issued under the provisions  of  the
Act of 1976 which has taken another two decades. Thereby the Appellants  are
knocking at the doors of the Court for the past 54  years.  Therefore,  they
are surely entitled for cost of the litigation which we want to quantify  in
a lump sum of Rs.5 lacs.  Accordingly,  we  hold  that  the  Appellants  are
entitled and the first Respondent Appollo Hospitals is  liable  to  pay  the
following amounts:

Compensation towards  value  of  land  Rs.24,04,188  per  cottah  for  11.66
(11.659) cottah which comes to  Rs.2,80,32,832  (Rupees  Two  Crores  Eighty
Lakhs Thirty Two Thousand Eight Hundred and Thirty Two only).

Interest at the rate of 2% per  annum  for  23  years  which  works  out  to
Rs.1,28,95,102 (Rupees One Crore Twenty Eight  Lakhs  Ninety  Five  Thousand
One Hundred and Two only).

Utilization charges at the rate of Rs.21,500 per annum equal to  Rs.4,94,500
(Rupees Four Lakhs Ninety Four Thousand Five Hundred only).

Costs Rs.5 lacs (Rupees Five Lakhs only).



Total Rs.4,19,22,434. We round  it  off  to  Rs.4,20,00,000  in  all  to  be
payable by the  first  Respondent  to  the  Appellants  in  full  and  final
settlement of all the claims of the Appellants in  respect  of  their  lands
admeasuring 11.66 (11.659) cottah.


Having regard to our above conclusion,  we  want  to  consider  the  various
directions prayed for by the Appollo Hospitals in their written  submissions
and we accordingly, pass the following order:
The first Respondent shall  deposit  the  sum  of  Rs.4,20,00,000  with  the
Secretary General of this Court within four weeks from today.

The Appellants shall make all arrangements to  produce  the  original  title
deeds and specify  the  schedule  of  the  land  and  the  sketch  from  the
competent authority of the revenue department and furnish  the  same  within
eight weeks from this date.

On submission of such records, by the Appellants to this  court,  the  first
Respondent shall inspect those records and express its confirmation.

On such confirmation being submitted by  the  first  Respondent  within  two
weeks of the submission of the records by the Appellants, within  two  weeks
thereafter the Appellants will execute a deed  of  conveyance  of  the  land
admeasuring  about  11.66  (11.659)  cottah  of  land  in  favour  of  first
Respondent.

All stamp duty and registration charges and other  incidental  expenses  for
the conveyance shall be borne by the first Respondent Appollo Hospitals.

On such registration of the conveyance  deed,  the  Appellants  will  be  at
liberty to  seek  for  release  of  Rs.4,20,00,000  with  whatever  interest
accrued thereon.

The State of West Bengal shall direct its authorities  to  ensure  that  the
lands involved in this appeal,  namely,  11.66  (11.659)  cottah  is  issued
necessary certificate of such demarcation.

The above said directions are without prejudice to the rights of  the  first
Respondent hospital in relation to the rest of the lands which  is  governed
by  the  registered  lease  deed  dated  21.06.1991  as  between  the  first
Respondent hospital and the State of West Bengal which is stated to  be  for
a period of 30 years with provision  for  option  for  further  renewal  for
additional two terms of 30 years each.  It is needless  to  state  that  the
said rights of the first Respondent  hospital  under  the  registered  lease
deed dated  21.06.1991  would  be  governed  by  the  terms  and  conditions
contained therein in respect of the lands, namely, 34,147  -  743.21  square
metre = 33,403.79 square metres.

On deposit of the sum of Rs.4,20,00,000 with the Secretary General  of  this
Court as per paragraph “a” of these directions, the Secretary General  shall
invest the same in UCO Bank initially for a period of six months.  It  shall
be renewed periodically pending further orders to be passed by this Court.

With the above directions, these appeals will stand  disposed  of.  However,
in order  to  ensure  compliance  of  the  directions  by  all  the  parties
concerned, call these appeals for passing final orders in the first week  of
December, 2014. However, in the meantime, if all  formalities  are  complied
with, it is open to the parties to mention for  posting  the  above  appeals
for passing final orders.



                                                    ...……….…….………………………………J.
                            [Fakkir Mohamed Ibrahim Kalifulla]





                                                     ………….……….…………………………..J.
                         [A.K. Sikri]


New Delhi;
July 23, 2014.

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