HC directs pvt firm to pay Rs 50L to state for ‘prime location’ land

Kolkata: Observing that land allotment policy notified by the state government in 2012 can’t be made applicable in allotment of land in 1996, Calcutta High Court directed a private firm to pay Rs 50 lakh to the state government which in turn must execute the lease deed and hand over possession of the land.

The bench of Justice Partha Sarathi Chatterjee and Justice Tapabrata Chakraborty was moved by the state challenging a single bench order. The case concerns a four cottah of land at CK Block in Sector II at Bidhannagar which was stuck in litigation for 15 years.

The court observed that the state had first refused allotment on grounds that the said firm failed to furnish the copy of deed of retirement of partnership executed and registered between the outgoing (retired) partners and continuing partners. Such ground was negated by a single bench. Later, the state, by an order in 2013, sought to apply the provisions of a notification issued in 2012. The order claimed that the state government would be deprived to gain largesse of about Rupees 2 crore if the land is allotted as per the land premium existing in 1996. This too was set aside by a single bench. Counsel for the firm argued that an administrative decision affecting the rights of the individuals cannot have any retrospective effect.

The court observed the litigation has continued for a period of more than 15 years but the firm cannot be directly held responsible for such efflux of time. It had discharged all its obligations and paid Rs 1,20,000 in 1996. It would be unfair to direct it to pay the land premium as per the present market rate.

Court observed that the value of real estate and rent rates have skyrocketed with the efflux of time. The firm agreed for a reduction of lease period from 999 years to 99 years.

Since the land is situated in the prime commercial locality in Kolkata, the firm was directed to pay Rs 50 lakh to the state within four weeks. State was directed to

execute the lease deed and hand over possession of the land to the firm within four weeks thereafter.