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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

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