DELHI FLOUR MILLS COMPANY LIMITED Vs. COMMISSIONER FOOD AND SUPPLIES DELHI
LAWS(DLH)-1983-1-10
HIGH COURT OF DELHI
Decided on January 11,1983

KALI PERSHAD Appellant
VERSUS
COLLECTOR Respondents


Referred Judgements :-

A N CHOPRA VS. UNION OF INDIA [REFERRED TO]
SETH SATNARIN GOENKA VS. UNION OF INDIA [REFERRED TO]
UNION OF INDIA VS. ROSHAN LAL GUPTA [REFERRED TO]



Cited Judgements :-

SH L GOPINATH VS. UNION OF INDIA [LAWS(DLH)-2004-11-91] [REFERRED TO]


JUDGEMENT

Sultan Siagh,J. - (1.)-This appeal under Section 11 of The Requisitioning and Acquisition of Immovable Property Act, 1952 (for short 'the Act') is for enhancement of compensation determined under the award dated 23rd October, 1978 of an arbitrator appointed under the Act.
(2.)Property bearing Municipal No. 895, known as 'Morwali Kothi' Ward No. VIII, Mehrauli, New Delhi, owned by the appellant, wai requisitioned by the Collector, Delhi under the Act vide his order dated 26th February, 1971. Agreement with regard to the amount of compensation payable in respect of the said property could not be reached and therefore an aribitrator was appointed under Section 8 of the Act to determine the compensation. The arbitrator has held that possession of the requisitioned property was taken by the authorities on 29th March, 1971, that the covered area of the requisitioned property is 7549 sq. ft. and the open area is 30030 sq. ft. He determined compensation with respect to the covered area only at 30 paise per sq. ft. No compensation was granted to the appllant with respect to the open area on the ground that the open area could not be let out separately and it was part and parcel of the covered area. The arbitrator determined the compensation on the basis of the rent of the similar premises in the year 1971.
(3.)Section 8 of the Act relating to determination of compensation of the requisitioned property as amended by the Requisitioning and Acquisition of Immovable Property (Amendment) Acts i.e. Act No. 2 of 1975 and Act No. 35 of 1980 is as under :
"8. Principles and method of determining compensation: (1) Where any .property is requisitioned or acquired under this Act, there shall be paid compensation the amount of which shall be determined in the manner and in accordance with the principles hereinafter set out, that is to say- (a) where the amount of compensation can be fixed by agreement, it shall be paid in accordance with such agreement; (b) where no such agreement can be reached, the Central Government shall appoint as arbitrator a person who is, or has been, or is qualified for appointment us, a Judge of a High Court; (c) the Central Government may, in any particular case, nominate a person having expert knowledge as to the nature of the property requisitioned or acquired to assist the arbitrator and where such nomination is made, the' person to be compensated may also nominate an assessor for the same purpose ; (d) at the commencement of the proceedings before the arbitrator, the Central Government and the person to be compensated shall state what in their respective opinion is a fair amount of compensation. (e) the arbitrator shall, after hearing the dispute, make an award determining the amount of compensation which appears to him to be just and specifying the person or persons to whom such compensation shall be paid; and in making the award, he shall have regard to the circumstances of each case and the provisions of Sub-sections (2) and (3) so far as they are applicable; (f) where there is any dispute as to the person or persons who are entitled to the compensation the arbitrator shall decide such dispute and if the arbitrator finds that more persons than one arc entitled to compensation, he shall apportion the amount thereof amongst such persons; (g) nothing in the Arbitration Act, 1940 shall apply to arbitrations under this Section. (2) The amount of compensation payable for the requisitioning of any property shall, subject to the provisions of Sub-section (2A) and (2B) consist of '.- (a) a recurring payment, in respect of the period of requisition, of a sum equal to the rent which would have been payable for the use and occupation of the property, if it had been taken on lease for that period; and (b) such sum or sums, if any, as may be found necessary to compensate the person interested for all or any of the following matters, namely,- (i) pecuniary loss due to requisitioning; (ii) expenses on account of vacating the requisitioned premises; (iii) expenses on account of reoccupying the premises upon release from requisition; and (iv) damages (other than normal wear and tear) caused to the property during the period of requisition, including the expenses that may have to be incurred for restoring the property to the condition in which it was at the time of requisition; (2A) The recurring payment, referred to in Clause (a) of Subsection (2), in respect of any property shall, unless the property is sooner released from requisition under Section 6 or acquired under Section 7, be revised in accordance with the provisions of Sub-section (2B)- (a) in a case where such property has been subject to requisition under this Act for a period of five years or a longer period immediately preceding the commencement of the Requisitioning and Acquisition of Immovable Property (Amendment) Act, 1975- (i) first with effect from the date of such commencement, and (ii) secondly with effect from the expiry of five years, and thirdly with effect from the expiry of ten years, from such commencement; (b) in a case where such property has been subject to requisition under this Act immediately before such commencement for a period shorter than five years and the maximum period within which such property shall, in accordance with the provisions of Sub-section (I A) of Section 6, be released from requisition or acquired extends beyond five years from such commencement, (i) first with effect from the date of expiry of five years from the date on which possession of such property has been surrendered or delivered to, or taken by, the Competent authority under Section 4, and (ii) secondly with effect from the date of expiry of five years, and thirdly with effect from the date of expiry of ten years, from the date on which the revision made under Sub-clause (i) takes effect; (e) in any other case- {i) first with effect from the date of expiry of five years from the date on which possession of such property has been surrendered or delivered to or taken by, the competenta uthority under Section 4, and (ii) secondly with effect from the date of expiry of five years from the date on which the revision under Sub-clause (i) takes effect. (2B) The recurring payment in respect of any property shall be revised by re-determining such payment in the manner and in accordance with the principles set out in Sub-section (1), read with Clause (a) of Sub-section (2), as if such property had been requisitioned under this Act on the date with effect from which the revision has to be made under Sub-section (2A). (3) The compensation payable for the acquisition of any property under Section 7 shall be the price which the requisitioned property would have fetched in open market, if it had remained in the same condition as it was at the time of requisitioning and been sold on the date of acquisition."
Learned counsel for the appellant submits that compensation for the requisitioned property is to be determined on the basis of rent of similar property in the locality and that the same is liable to be redetermined after the expiry of every five years as provided in Sub sections (2A) and (2B) of Section 8 of the Act, and standard rent of the requisitioned property would not be the basis for fixing compensation. Counsel for the respondents on the other submits that compensation would be equivalent to the standard rent of the property.
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