Case Note & Summary
The appeal arose from a dispute concerning the transfer of property to a displaced person under the Displaced Persons (Compensation & Rehabilitation) Act, 1954. The original allottee, Hem Singh, was offered the property in 1985 for Rs.26,01,846, but he challenged the valuation. After unsuccessful appeals and revisions, he filed a writ petition in the Delhi High Court. Before the Single Judge, he gave up the challenge and agreed to pay the 1985 price. The Single Judge, on equitable grounds, directed that upon payment of the 1985 price with 10% interest from 1.4.1985, the property be sold. The Union of India appealed to the Division Bench, which set aside the Single Judge's order. The heirs of Hem Singh appealed to the Supreme Court. The Supreme Court noted that the entitlement of the allottee was undisputed and that the property was allotted in 1985. The Court considered that the Division Bench's objection was that the Single Judge did not consider the market price at the time of the order (2009-10). The Court called for a valuation report, which valued the property at Rs.6,14,79,533. However, the Court found that directing payment of the full present market value would be unreasonable. Instead, considering the facts, the Court directed the appellants to pay Rs.3,86,30,000 (Rs.3,66,30,000 for land and Rs.20,00,000 for construction) minus the Rs.1.41 crores already deposited (including interest), within four weeks. Upon payment, the respondents were to execute the sale deed and hand over possession. The appeal was allowed to this extent.
Headnote
A) Displaced Persons - Compensation and Rehabilitation - Valuation of Property - Displaced Persons (Compensation & Rehabilitation) Act, 1954, Sections 22, 24 - The original allottee challenged the valuation of property offered in 1985. The Single Judge directed sale at 1985 price with 10% interest. The Division Bench set aside this order. The Supreme Court, considering the entitlement of the allottee and the passage of time, directed payment of Rs.3,86,30,000 minus Rs.1.41 crores already deposited, to meet the ends of justice. (Paras 2-10) B) Displaced Persons - Equitable Relief - Delay in Payment - Displaced Persons (Compensation & Rehabilitation) Act, 1954 - The Court held that directing payment of present market value would be unreasonable, and instead fixed a reasonable amount considering the original price and increased land value. (Paras 9-10)
Issue of Consideration
Whether the Division Bench of the High Court was justified in setting aside the Single Judge's order directing sale of property at 1985 price with interest, and what amount should be paid by the appellants for the property.
Final Decision
The Supreme Court allowed the appeal, set aside the Division Bench order, and directed that upon payment of Rs.3,86,30,000 minus Rs.1.41 crores (already deposited) within four weeks, the respondents shall sell the property to the appellants and hand over possession. Stamp duty and registration fees to be paid by appellants. Respondents permitted to withdraw the deposited amount.
Law Points
- Displaced Persons (Compensation & Rehabilitation) Act
- 1954
- Section 22
- Section 24
- Rule 24
- Valuation of Property
- Equitable Relief
