MAHESH LALL SEAL Vs. UNION OF INDIA
LAWS(SC)-2006-9-41
SUPREME COURT OF INDIA (FROM: CALCUTTA)
Decided on September 01,2006

MAHESH LALL SEAL Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

- (1.) This civil appeal by grant of special leave appeal seeks to challenge judgment and order dated 6.12.04 passed by a Division Bench of the Calcutta High Court allowing F.M.A.T. No.151 of 2004 filed by Union of India (respondents herein) challenging the Award of the Arbitrator dated 25.10.2000.
(2.) Before the High Court the main contention advanced by Union of India, on whose behest the property was acquired, was that the claimants had entered into agreement with the Government on 18.7.75 for sale of properties under Section 8(1)(a) of the Requisitioning and Acquisition of Immovable Property Act, 1952 (hereinafter referred to as "the 1952 Act") at a fixed price of Rs.18, 98, 000/- and in terms of such agreement the full price was paid upon execution of an agreement in Form K on 26.5.93 and, therefore, there was no question of any dispute being referred to arbitration.
(3.) The short question which arises for determination in this civil appeal is: whether the impugned Award of the Arbitrator dated 25.10.2000 was null and void on account of absence of referable dispute to the Arbitrator. The background facts are as follows: At all material times, appellants (claimants) were the joint owners of Dag Nos.613, 614, 617 and 618 measuring 7.16 acres in area, within Mouza Nainan, P. S. Baranagar, District North 24 Parganas, being portion of premises No.46, B.T. Road, Calcutta (hereinafter referred to as "the acquired property"). The said acquired property was initially requisitioned by Union of India under Defence of India Act and Rules. This was on 22.4.1942. On 3.3.1987 the said property was acquired under the 1952 Act along with other properties when Form J was published. Up to 31.12.74 the rent of the acquired property was assessed by the L.A. Collector at the rate of Rs.410/- per month. However, this rate of rent was subsequently increased to Rs.55, 465/- per annum. The claimants were paid rent at the rate of Rs.55, 465/- per annum during the period 1.1.75 till 2.3.87 when, as stated above, the property stood acquired. In the meantime, prior to 10.3.87 U.L.C. Act 1976 (for short, "the 1976 Act") came into force. The claimants filed an application under Section 27(2) of 1976 Act for exemption from vesting excess land and for permission to transfer in favour of Union of India. The State Government did not finalise the solatium. The State Government failed to decide as to which portion of the aforesaid premises was liable for vesting in the State Government under the said 1976 Act. As the requisition of the disputed premises under the 1952 Act was due to expire on 10.3.87, an order of acquisition was made on 3.3.87. On 27.3.87 Union of India informed the land acquisition officer that the acquiring body had decided to place Rs.18, 98, 000/- for disbursement to the claimants in terms of the agreement dated 18.7.75. Accordingly, the land acquisition officer published an award for Rs.18, 98, 000/- on 8.6.88. However, the State Government on 6.8.88 appointed an Arbitrator vide notification no.492-Reqn. which was later on cancelled on 16.3.90 at the behest of the Central Government.;


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