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1986 (3) TMI 332

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..... part of the land, which was leased out to the appellant, was acquired by the Government under the Land Acquisition Act which resulted in an award by the Land Acquisition Collector dated 28th Oct., 1961. The compensation was assessed at ₹ 4,625 per sq. yard. The appellant had claimed compensation for cost of boundary wall, cost of levelling the plot, taxes and damages for the remaining portion of the lease i.e. 32 years and additional claim for loss of goodwill. In any event, what the Land Acquisition Collector found was that some portion of the compensation had to be given to the appellant and he observed that the general practice was to give compensation in the ratio of 7 : 1 between the owners and the tenant. Accordingly l/8th of t .....

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..... periods of ten years each renewable on an enhanced rent for a further period of ten years at a time. While the tenancy consists of a large plot of land with built up portions but the lessee has a right to demolish everything and build his own building and run his own business as he pleases. It is not an ordinary lease where a house or other property is let out which has to be renewed at the end of the lease. Also, the acquisition in this case is only of the open land and the remaining portion of the land is at the disposal of the lessee. It is just like taking away a part of the garden from a big house. Now, the question arises how the compensation of this acquired land is to be apportioned between the owner and the tenant or lessee. If we .....

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..... f the Delhi Rent Control Act. If there is any assignment, transfer or creation of small interest the tenancy is liable to be determined and protection under the Act is withdrawn. Therefore, there is no market value. On the other hand, if we treat interest of the appellant as one under the lease then it will continue for a maximum 32 years which remained at the time of acquisition and allowing for the maximum increase being permitted at the increased rent. Even the period of 32 years is a very short one compared to the perpetual lease. Therefore, it follows that a very small proportion of the compensation can be paid to the tenant and the major portion had to be paid to the owner. Another important aspect of this particular case is that the .....

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..... d 20th May to 14th Aug., 1957 and he determined the rate to be ₹ 44.00 per square yard on an average. The other evidence produced before the Additional District Judge showed sales of various plots in the adjoining area between 1959 and 1962. These sales somehow have not been taken into consideration because they are supposed to be of commercial properties. The rates vary from ₹ 105.00 to 170.00 per sq. yard. We have seen a map of the property. There is a Filmistan cinema situated at a crossing of East Park Road with M. M. Road. Just opposite this cinema, on the one side, is Model Basti and on the other side is Katra Chajju Pandit. Properties in Katra Chajju Pandit and in Model Basti are the same in situation. It may be that Mo .....

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