High Court of Calcutta Invalidates Rent Compensation Memos, Orders Fresh Determination Due to ‘Flawed Process’

Lack of proper measurement procedures cited as primary reason for overturning previous assessments in the Kolkata Municipal Corporation case.

The High Court of Calcutta has directed a fresh determination of rent compensation for the premises at 42, Ripon Street, Kolkata, following an appeal by the Kolkata Municipal Corporation (KMC). The court invalidated previous assessments due to inadequate measurement procedures and emphasized the necessity of accurate evaluations as per legal directives.

The appeals stem from a protracted legal battle involving the requisition and compensation of property owned by Rameshwar Properties Private Limited. Initially requisitioned under the Defence of India Rules in 1939 and later under the West Bengal Premises Requisition and Control Act, the property was used by KMC for several years. Disputes over rent compensation led to multiple legal proceedings, culminating in the current appeals against the rent assessments made by the First Land Acquisition Collector.

The court underscored the importance of proper measurement procedures in rent compensation determinations. “The calculation which has been made without measurement being taken cannot be the basis of a meaningful determination and the entire exercise was a farce,” observed the Division Bench, highlighting the need for accurate evaluations to ensure just compensation.

The court found that the previous assessments, including memos dated 12th August 2021, 29th December 2020, and 29th June 2021, were flawed due to the lack of proper measurement of the premises. “The direction of the Division Bench contained in the order dated 28.01.2020 was not properly construed by the First LA Collector,” noted the court, emphasizing that no meaningful determination could be made without actual measurements of the rentable structure.

The judgment referenced the principles outlined in previous cases, stressing the necessity of adhering to proper procedures for rent determination. The court directed the First Land Acquisition Collector to undertake a fresh determination of rent compensation, aligning with the directives of the Division Bench’s previous judgment.

Justice Apurba Sinha Ray remarked, “The issuance of the letter dated 19th July 2022 for further inspection of the premises shows that the decision taken by the LA Collector was not proper and appropriate. When the administrative authority had decided a matter and communicated the same, it does not have the power to reopen the issue without recalling its earlier order.”

The High Court of Calcutta’s decision to order a fresh determination of rent compensation underscores the judiciary’s commitment to ensuring fair and accurate evaluations in property requisition cases. By invalidating previous assessments due to procedural flaws, the judgment emphasizes the necessity of adhering to legal directives and proper measurement protocols. This landmark decision is expected to influence future cases, reinforcing the importance of meticulous procedural adherence in rent compensation determinations.

Date of Decision: July 11, 2024