GURDEV SINGH vs. UNION OF INDIA

Case Type: Civil Appeal

Date of Judgment: 12-04-2019

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                          NON­REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.  3894  OF 2019 (Arising from SLP (C) No.26111/2015) Gurdev Singh and others ..Appellants Versus Union of India and others ..Respondents J U D G M E N T M.R. SHAH, J. Leave granted. 2. Feeling   aggrieved   and   dissatisfied   with   the   impugned judgment and order dated 13.05.2015 passed by the Division Bench of the High Court of Delhi at New Delhi passed in Letters 1 Patent Appeal No. 282 of 2010, by which the Division Bench of the High  Court  has   allowed   the  said   appeal  preferred   by   the respondents herein – Union of India and others and has quashed and set aside the judgment and order passed by the learned Single Judge of the High Court, the heirs of the original writ petitioner have preferred the present appeal. 3. The facts leading to the present appeal in nutshell are as under: That   the   father   and   predecessor­in­interest   of   the appellants – Hem Singh was a migrant from Pakistan and was registered   as   a   ‘displaced   person’.   That   the   claims   to   the properties left behind by the said Hem Singh and his wife in Pakistan   were   verified   and   assessed   in   the   year   1951.     That Displaced   Persons   (Compensation   &   Rehabilitation)   Act,   1954 (hereinafter   referred   to   as   the   ‘Act’)   and   the   Rules   made thereunder in the year 1955 came into force to compensate and rehabilitate   the   displaced   persons   who   had   migrated   to   India from Pakistan on account of partition of the country in the year 1947.  That the property in question was offered for transfer to the   said   Hem   Singh   in   the   year   1985   for   a   consideration   of 2 Rs.26,01,846/­ on the then prevailing market value as per Rule 24.   3.1 Feeling aggrieved by the said valuation, the said Hem Singh challenged   the   same   in   appeal   before   the   Settlement Commissioner under Section 22 of the Act.   At this stage, it is required to be noted that the challenge was only with respect to valuation.   The said appeal came to be dismissed solely on the ground that the appeal had become infructuous because the offer had lapsed on account of not having been accepted within 30 days of its receipt by the said Hem Singh.  Against the order of the   Settlement   commissioner,   Hem   Singh   preferred   revision petition   under   Section  24   of   the   Act,   which  also   came   to  be dismissed.  A further revision at the instance of Hem Singh also came to be dismissed. 3.2 That the aggrieved Hem Singh moved the High Court by way of Writ Petition No. 1684 of 1994.  Before the High Court also, the main argument of the original writ petitioner was that the rates prevailing in the year 1955, when the Rules came into force,   should   apply.     Thus,   before   the   High   Court   also,   the challenge was with respect to the valuation.   Before the High 3 Court,   the   challenge   to   the   valuation   was   given   up   and   the original writ petitioner agreed to pay the amount, as determined by the authority, i.e., Rs.26,01,846/­.  However, as by the time number of years had elapsed, the learned Single Judge proceeded on equitable terms by holding that on the writ petitioner’s paying to the department the price quoted in the year 1985, along with interest   @   10%   per   annum   from   1.4.1985   till   the   date   of payment, sale deed in his favour be executed and consequently disposed of the said writ petition by judgment and order dated 14.07.2009 and directed that on payment of the price quoted in the year 1985 along with interest at the rate of 10%  per annum from 1.4.1985 till the date of payment, the plot in question shall be sold to the original writ petitioner. 4. Aggrieved   by   the   judgment   and   order   dated   14.07.2009 passed   by   the   learned   Single   Judge   in   writ   petition   no. 1684/1994, the Union of India and others preferred LPA before the Division Bench of the High Court of Delhi.  By the impugned judgment and order, the Division Bench of the High Court has allowed   the   said   appeal   preferred   by   the   Union   of   India   and 4 others and has quashed and set aside the judgment and order passed by the learned Single Judge of the High Court. 5. Feeling   aggrieved   and   dissatisfied   with   the   impugned judgment and order passed by the Division Bench of the High Court, the heirs of the original writ petitioner (the original writ petitioner died during the pendency of the appeal before the High Court) have preferred the present appeal. 6. We have heard Shri Jayant Bhushan, learned Senior Advocate appearing on behalf of the appellants and Shri Chirag M. Shroff, learned Advocate appearing on behalf of Govt. of NCT of Delhi. 6.1 Shri   Jayant   Bhushan,   learned   Senior   Advocate appearing on behalf of the appellants has vehemently submitted that as such the entitlement of the land in question by the said Hem   Singh   under   the   Act   as   a   displaced   person   cannot   be disputed as the authority itself in the year 1985 allotted the land in question in favour of Hem Singh.  It is submitted that however, at the relevant time, the father of the appellants was aggrieved by the valuation and the price determined in the order of allotment passed in the year 1985.   It is submitted that thereafter the 5 litigation with respect to valuation at the instance of Hem Singh came to be continued.   However, ultimately, before the learned Single Judge of the High Court, the allottee – Hem Singh given up his challenge to the valuation and accepted and agreed to pay the price fixed in the year 1985.   It is submitted that therefore the dispute with respect to valuation came to an end.  It is submitted that, however, as in the meantime number of years have elapsed, the learned Single Judge of the High Court considered the matter on equity and rightly directed the original writ petitioner to pay the   price   as   mentioned   in   the   order   of   1985,   together   with interest @ 10% per annum.  It is submitted that the original writ petitioner deposited Rs. 89 lakhs with the High Court, amount as determined pursuant to the order passed by the learned Single Judge.     It   is   submitted   that   the   said   amount   deposited   on 25.08.2010, by now, has come to Rs.1.41 crores.   Shri Jayant Bhushan, learned Senior Advocate appearing on behalf of the appellants has stated at the Bar that looking to the objections raised on  behalf   of   the   respondents   herein,   raised   before   the Division Bench of the High Court, the appellants are ready and willing to pay some further reasonable amount. 6 7. Having heard the learned counsel for the respective parties and the fact that the entitlement of the plot in question to the original allottee – Hem Singh cannot be disputed and that the authority itself allotted the land in the year 1985 to Hem Singh on a consideration of Rs.26,01,846/­ and on certain other terms and conditions and  considering the principal grievance of the respondents   herein   –   original   appellants   before   the   Division Bench of the High Court that the learned Single Judge erred in directing the respondents herein in the year 2009­10 to sell the immovable property to the original writ petitioner at a price at which   the   original   writ   petitioner   had   25   years   prior   thereto offered to sell the said property though together with interest @ 10% per annum, but without regard to the fact that the market price of the property in the year 2009­10 and which alone was the criteria under the Rules under which the property was offered to be sold to the original writ petitioner, was far far more than the price prevalent, 25 years earlier in the year 1985 together with simple interest thereon @ 10% per annum, we called upon the learned counsel appearing on behalf of the respective parties to file an affidavit regarding the valuation of the said property as on today. 7 8. Pursuant   to   the   same,   an   additional   affidavit   along with fresh valuation has been filed on behalf of respondent nos. 4 & 5 – Government of NCT of Delhi.  According to the valuation report annexed with the additional affidavit, the total value of the property in question comes to Rs.6,14,79,533/­, as under:
Sr. No.DescriptionRemarks
1Category‘E’
2Total Plot Area272.09 Sq. Mtrs.
3Total Plinth AreaGround Floor =<br>272.09 Sq. Mtrs.<br>First Floor = 222.74<br>Sq. Mtrs.<br>Total = 494.83 Sq.<br>Mtrs.
4User FactorCommercial (3)
5Structure Factor (Pacca)Pacca (1)
6Year of Construction1983
7Age Factor0.80
8Cost of LandRs.70,080/­ per sq.<br>mtr
9Building FloorsGround and First
10Cost of Land (land rate per<br>Sq. Mtrs. X use factor x area)=272.09x3x70,080<br>=Rs.5,72,04,201.6/­<br>(A)
11Cost of Construction=10,800/­ per sq. mtr.
12Minimum cost of<br>construction = (Cost of<br>construction, per sq. mtrs. X<br>plinth area x age factor)=10,800x494.83x0.80<br>=Rs.42,75,331.20/­<br>(B)
13Total Value = (A + B)=Rs.6,14,79,533/­<br>(Round Off)
8 8.1 Shri Jayant Bhushan, learned Senior Advocate appearing on   behalf   of   the   appellants   has   submitted   that   there   is   an arithmetical   error   in   calculating   the   cost   of   the   land.     It   is submitted that the total plot area is 222 Sq. Mtrs. and in the valuation report it is wrongly considered as 272.09 Sq. Mtrs.  It is submitted that therefore to that extent the cost of the land is required to be reduced.   It is further submitted by Shri Jayant Bhushan, learned Senior Advocate appearing on behalf of the appellants   that   the   valuation   report   contains   Rs.42,75,331.20 towards minimum cost of construction.  It is submitted that the aforesaid is too exorbitant/high.  It is submitted that in any case the appellants would be demolishing the entire structure.  He has stated at the Bar that the appellants are ready and willing to pay any further amount, as may be directed by this Court. 9. Though the learned Advocate appearing on behalf of Govt. of NCT of Delhi has tried to resist the aforesaid offer, we are of the opinion  that  if  the   appellants  are  directed   to pay  some  more reasonable amount considering the fact that number of years have passed and even the price of the land has also increased, it would meet the ends of justice.  At the same time, to direct the 9 appellants to pay the present market value/market price would also be unreasonable.   Therefore, taking into over all facts and circumstances   of   the   case,   we   are   of   the   opinion   that   if   the appellants are directed to pay Rs.3,66,30,000/­ towards the cost of the land and Rs.20,00,000/­ towards the cost of construction of the existing   building,   it  will  meet  the   ends   of   justice.    As observed hereinabove, the appellants have deposited Rs.89 lakhs in the Registry of the High Court on 25.08.2010.  It is reported that now the aforesaid amount with interest comes to Rs.1.41 crores.     Therefore,   the   appellants   are   required   to   pay   the aforesaid determined amount minus Rs.1.41 crores. 10. In view of the above and for the reasons stated above, we set aside the impugned judgment and order passed by the Division   Bench   of   the   High   Court   by   directing   that   on   the appellants   depositing   a   total   sum   of   Rs.3,86,30,000/­   minus Rs.1.41 crores with the authority, within a period of four weeks from today, the respondents­authority shall sell the property in question in favour of the appellants and handover the possession to them.   If any expenditure is to be incurred towards stamp duty/registration   fee   etc.,   the   same   shall   be   paid   by   the 10 appellants.     The   respondents­authority   shall   be   permitted   to withdraw the amount of Rs.89 lakhs deposited by the appellants, lying in the High Court, along with accrued interest thereon. 11. The present appeal is allowed to the aforesaid extent. No costs. …………………………………..J. [L. NAGESWARA RAO] NEW DELHI; ………………………………….J. APRIL 12, 2019. [M.R. SHAH] 11