Municipal Corporation of Greater Bombay and Others Vs. Central Bank of India and Another Etc. Etc.

Decided On : May-02-1994

Court : Supreme Court of India

Notice (8): Undefined index: topics [APP/View/Case/meta.ctp, line 36]
Code Context


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		'Judgement' => array(
			'id' => '659619',
			'acts' => 'Bombay Municipal Corporation Act, 1888 - Sections 298, 299, 301(1) and 504; <a href="/act/51407/land-acquisition-act-1894-complete-act">Land Acquisition Act, 1894</a>; Bombay Municipal Corporation Act, 1949 - Sections 216; Bombay Act, 1925',
			'appealno' => 'Civil Appeals Nos. 1278-1287 of 1977.',
			'appellant' => 'Municipal Corporation of Greater Bombay and Others',
			'authreffered' => '',
			'casename' => 'Municipal Corporation of Greater Bombay and Others Vs. Central Bank of India and Another Etc. Etc.',
			'casenote' => 'Property - compensation - Sections 298, 299 and 301 of Bombay Municipal Corporation (BMC) Act, 1888 - what method could be adopted for determining amount of compensation payable under Section 301 (1) - Section 301 (1) of Act requires loss sustained by owner as consequences of acquisition and expense incurred by owner as consequence of acquisition to be made good to such owner by way of compensation - Section 301 (1) of Act specifies appropriate principle of determination of compensation for building or land acquired under Sections 298 and 299 - matter remitted to Small Cause Court for deciding according to directions after hearing parties. - Subordinate/Delegated legislation:[D.K. Jain & R.M. Lodha, JJ] Banks -Voluntary Retirement Scheme, 2000 (VRS 2000) - Held,  The amendment in Regulation 28, as is reflected from Communication dated 5.9.2000, was intended to cover employees who had rendered 15 years service but not completed 20 years service. It was not intended to cover optees who had already completed 20 years service as the provisions contained in Regulation 29 met that contingency. Even if it be assumed that by insertion of Proviso in Regulation 28 (in the year 2002 with retrospective effect from 1.9.2000), all classes of employees under VRS 2000 were intended to be covered, such amendment in Regulation 28, needs to be harmonised with Regulation 29, particularly Regulation 29(5) which provides for addition of qualifying service by five years. This would be in tune and consonance with the explanatory note appended to the amendment in Regulation 28 wherein it is stated that the amendment with retrospective effect would not adversely affect any employee or  officer of the respondent Bank. That would also meet the test of fairness. Weightage of five years under Regulation 29(5) is applicable to the optees having service of 20 years or more. Merely because the employees who have completed 15 years of service but not completed 20 years of service are not entitled to weightage of five years for qualifying service under Regulation 29(5), the employees who have completed 20 years of service or more cannot be denied such benefit. It is also not correct to say that by taking recourse to Regulation 29, the amendment to Regulation 28 is rendered otiose.

LABOUR & SERVICES Pension: [D.K. Jain & R.M. Lodha, JJ] Banks -Employees Pension Regulations, 1995-Regulations 29(5) and 28 Proviso (added in 2002 retrospectively from 1.9.2000) - Benefit of five years additional qualifying service under Regulation 29(5) - Availability of benefit to employees taking retirement under Voluntary Retirement Scheme, 2000 (VRS 2000) on completion of 20 years service - Held, The benefit is available notwithstanding that such employees had received ex gratia payments under VRS 2000. Further Regulation 28 which was amended subsequently by adding a proviso retrospectively, could not be applied to such employees. 

Pension: [D.K. Jain & R.M. Lodha,JJ] Bona fide delay in payment - Inadmissibility of interest -  Delay due to litigation wherein genuine issue of law needed to be resolved in view of difference of opinion between High Courts. Besides, stand taken by appellant Banks was also not frivolous though ultimately rejected by Supreme Court. Grant of interest, under these circumstances is not warranted. 

Pension: [D.K. Jain & R.M. Lodha,JJ] Scope, object and applicability of Banks Employees Pension Regulations, 1995- Regulation 28, Proviso (added in 2002 retrospectively from 1.9.2000) and Regulation 29(5) - Held, The purpose of the Proviso is to confer benefit of pension to those employees who sought voluntary retirement after completion of 15 years but before completion of 20 years of service. Proviso cannot be interpreted to deprive benefit of five years additional qualifying service to those employees who took retirement after 20 years of service under VRS 2000.

LABOUR & SERVICES Voluntary Retirement Scheme: [D.K. Jain & R.M. Lodha,JJ] Banks -Voluntary Retirement Scheme, 2000 (VRS 2000) - The appellant public sector banks framed a scheme known as Voluntary Retirement Scheme, 2000 (VRS 2000) under which all permanent employees of bank who had put in minimum 15 years of service or completed 40 years of age were eligible to seek voluntary retirement. The Scheme was framed for optimizing the staff strength by shedding excess employees. VRS 2000 provided that an employee whose application for voluntary retirement was accepted, would inter alia be entitled to pension in terms of the Employees Pension Regulations, 1995, in case of those who have opted for pension and have put in 20 completed years of service in the bank. Besides, there was also a parallel provision in Regulation 29 of the Pension Regulations, under which an employee with 20 years qualifying service could take voluntary retirement. Such an employee was entitled to benefit of five years additional qualifying service under Regulation 29(5). The issue involved was, whether an employee with 20 years service, who had taken retirement under VRS 2000 (and not under Regulation 29) was entitled to benefit of five years additional qualifying service as provided in Regulation 29(5) of the Pension Regulations. Contention of appellant Banks was that benefit of five years additional qualifying service was admissible only to an employee who took voluntary retirement under Regulation 29, and not to an employee who took retirement under VRS 2000. The employees however relied on Ministry of Finance Communication dated 5.9.2000 (reproduced in para 38 of the judgment) to support their contention that proviso was added to Regulation 28 for the purpose that an employee who takes VRS on completing 15 years of service but before 20 years service, also gets pension. Held,  The employees who had completed 20 years of service and offered voluntary retirement under VRS 2000 are entitled to addition of five years of notional service in calculating the length of service for the purposes of that Scheme as per Regulation 29(5) of the Pension regulations. If the intention was not to give pension as provided in Regulation 29 and particularly sub-regulation (5) thereof, the banks could have said so in the Scheme itself. Much though had gone into formulation of VRS 2000 and it came to be framed after great deliberations. The only provision that could have been in the mind while providing for pension as per the Pension Regulations was Regulation 29. The employees too had the benefit of Regulation 29(5) in mind when they offered for voluntary retirement as Regulation 28, as was existing at that time, was not applicable at all.  VRS 2000 was an attractive package for the employees as they were getting special benefits in the form of ex gratia payments and in addition thereto, inter alia, pension under the Pension Regulations which also provided for weightage of five years of qualifying service for the purposes of pension to the employees who had completed 20 years service. It would be unreasonable if amended Regulation 28 is made applicable, which had not seen the light of the day and which was not the intention of the banks when the Scheme was framed. The banks are public sector banks and are State within the meaning of Article 12 of the Constitution. Their action even in contractual matters has to be reasonable, lest, it must attract the wrath or Article 14 of the Constitution.     Any interpretation of the terms of VRS 2000, although contractual in nature, must meet the test of fairness. It has to be construed in a manner that avoids arbitrariness and unreasonableness on the part of public sector banks which brought out VRS 2000 with an objective of rightsizing their manpower. The Scheme was oriented to lure the employees to go in for voluntary retirement. In this background, the consideration that was to pass between the parties assumes significance and a harmonious construction to the Scheme and the Pension Regulations, therefore, has to be given. Contention of the appellant Banks were rejected and it was declared that the employees who took retirement under the VRS 2000 are entitled to benefit of five years additional qualifying service under Regulation 29(5).

Voluntary Retirement Scheme: [D.K. Jain & R.M. Lodha,JJ] Banks-Voluntary Retirement Scheme, 2000 (VRS 2000) - Effect of Employees Pension Regulations, 1995 having been made part of VRS 2000  Held, The precise effect of Pension Regulations, for the purposes of pension, having been made part f the Scheme, is that the Pension Regulations, to the extent, these are applicable, must be read into the Scheme. Interpretation clause of VRS 2000 states that the words and expressions used in the Scheme but not defined, and defined in the rules/regulations shall have the same meaning respectively assigned to them under the rules/regulations. The Scheme does not define the expression retirement or voluntary retirement.  Therefore the definition of retirement given in Regulation 2(y) whereunder voluntary retirement under Regulation 29 is considered to be retirement, has to be taken into consideration. Regulation 29 uses the expression, voluntary retirement under these Regulations. For the purposes of the Scheme, it has to be understood to mean with necessary changes in points of details Section 23 of the Contract Act, 1872 has no application to the present fact situation. It cannot be accepted that VRS 2000 did not envisage grant of pension benefits under Regulation 29(5) to the optees of 20 years service along with payment of ex-gratia. 

INDIAN EVIDENCE ACT, 1872 

Section 115; [D.K. Jain & R.M. Lodha, JJ] Estoppel - Held, Bank employees who had taken retirement under the Voluntary Retirement Scheme, 2000 (VRS 2000) and claimed benefit of additional qualifying service under Employees Pension Regulations, 1995, were not resiling from VRS 2000, rather were enforcing the Scheme. Question of estoppel therefore does not arise.  -  3. The learned Counsel appearing for the BMC, the common appellant in all the present appeals, contended that the Court of Small Causes, as well as, the High Court had gone wrong in determining the compensation payable to the owner under Sub-section (1) of Section 301 of the BMC Act for his land acquired under Sections 298 and 299 thereof, was its market value, when such compensation to be determined could not have been anything other than the loss which that owner had to sustain as a consequence of such acquisition and the expense which that owner had to incur as a consequence of such acquisition. Thus, when Sub-section (1) of Section 301 of the BMC Act requires the loss sustained by the owner as a consequence of acquisition and the expense incurred by the owner as a consequence of acquisition, to be made good to such owner by way of compensation, what is found in that sub-section cannot be anything other than the principle of determination of compensation which is deliberately or wantonly specified therein, having regard to the vulnerability of a portion of land or a portion of building being acquired for the public street. The compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner of the acquired land or building can only be the loss sustained and the expense incurred by the owner because of such acquisition and not the market value of the acquired building or land, as pointed out by us herein-before while considering Question (ii). Therefore, compensation payable under the said sub-section should be the amount which is required to be made good to the owner towards reimbursement of his loss sustained, if any, on account of acquisition and his expense incurred, if any, on account of acquisition. Hence, the judgment of the Chief Judge of Small Causes Court, as well as, the judgment of the High Court, appealed against in these appeals, directing payment of compensation for the acquired portions of lands, according to their actual market value along with interest thereon @6 per cent per annum, become unsustainable and are liable to be set aside by allowing the present appeals. What has been now done by the Court of Small Causes, as well as, the High Court is, to determine the market value of the whole of the land of each of the respondent/s in the appeals, as stood before its portion was acquired, on square yard basis and award out of that amount of compensation, the amount of market value apportionable to the acquired portion of the land, according to its area on square yard basis.',
			'caseanalysis' => null,
			'casesref' => 'Union of India v. Harikrishnan Khosla;',
			'citingcases' => '
Municipal Council of Colombo v. Kuna Mana Navanna Suna Pana Latchiman 
Chettiar 								Mentioned

Municipal Corporation of the City of Ahmedabad and Ors. v. The 
State of Gujarat and Ors. 						Discussed

Municipal Council of Colombo v. Kunamana Navanna Suna Pana Latchiman 
Chettiar 								Discussed

Union of India v. Harikrishnan Khosla 					Dissented

',
			'counselplain' => ' V.A. Bobale and;D.N. Mishra&lt; Adv',
			'counseldef' => ' R.F. Nariman, ; R.B. Hathikhanawala, ; D.B. Moos For the Respo',
			'court' => 'Supreme Court of India',
			'court_type' => 'SC',
			'decidedon' => '1994-05-02',
			'deposition' => '',
			'favorof' => null,
			'findings' => null,
			'judge' => ' K. Ramaswamy and; N. Venkatachala, JJ.',
			'judgement' => 'ORDER<p style="text-align: justify;">N. Venkatachala, J.</p><p style="text-align: justify;">1. These appeals by special leave, directed against the common judgment dated 5th, 6th and 7th August, 1974 rendered in First Appeals Nos. 386-395 of 1968 by the High Court of Judicature at Bombay, are required to be decided by us by considering and answering three important questions:</p><p style="text-align: justify;">(i) Does the provision in Sub-section (1) of Section 301 of the Bombay Municipal Corporation Act, 1888 - 'the BMC Act' specify a principle of determination of compensation payable to the owners of the buildings or lands acquired for a public street under Sections 298 and 299 thereof?</p><p style="text-align: justify;"> (ii) Does the principle specified in Sub-section (1) of Section 301 of the BMC Act, for determination of compensation payable to the owners for their buildings or lands acquired under Sections 298 and 299 thereof, warrant determination of such compensation according to the market value of such acquired buildings or lands </p><p style="text-align: justify;">(iii) What method could be adopted for determining the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act? </p><p style="text-align: justify;">2. The salient facts which have let to the filing of the present appeals lie in a narrow compass : Gowalia Tank Road and Bhulabhai Desai Road lying within the area of the Bombay Municipal Corporation - 'the BMC' are public streets envisaged under the BMC Act. In the year 1962, the BMC which resolved to improve the said public streets by widening them, acquired out of the lands of respondents in these appeals, certain portions which fell within the regular line of the public streets and took their possession, as provided for in Sub-section (2) of Section 298 and Sub-section (1) of Section 299 of the BMC Act. The Commissioner who was liable under Sub-section (1) of Section 301 of the BMC Act, to pay compensation to the respondents in these appeals for their acquired portions of lands, offered to pay them compensation at an uniform rate of Rs. 80 per square yard of land. But, the respondents, who disputed the adequacy of the said compensation offered to be paid to them, filed applications before the Chief Judge of the Court of Small Causes, Bombay, praying for grant of higher compensation for their acquired portions of lands, by taking recourse to the provision in Section 504 of the BMC Act. The Chief Judge, who entertained those applications, with the consent of parties, clubbed all the said applications, recorded common evidence thereon and decided them by his common judgment dated 14th March, 1968. Under that common judgment, the compensation made payable to the respondents in these appeals - the owners, for their acquired portions of lands, was their market value worked out at a rate ranging from Rs. 450 per sq. yard to Rs. 640 per sq. yard. The BMC assailed that common judgment of the learned Chief Judge, as granting excessive compensation, by filing appeals in the High Court of Judicature at Bombay. A Division Bench of the High Court, which heard those appeals, by its common judgment dated the 5th, the 6th and the 7th August, 1974, while allowed one of them partly by reducing the compensation in some measure, dismissed the rest. According to the Chief Judge of the Court of Small Causes, and the Division Bench of the High Court, what was payable by way of compensation under Sub-section (1) of Section 301 of the BMC Act to the owners, for the portions of their lands acquired under either Section 298 or Section 299 thereof, was the market value of such portions and, therefore, the market value obtainable by the owners for their respective entire lands had to be apportioned between the uncured portion of the land and the acquired portion of the land and it was that much of the market value apportionable to acquired land, which was liable to be paid to the owner as compensation for his acquired land. Consequently, both the Chief Judge of Court of Small Causes and the Division Bench of the High Court determined the market value of the entire land of respondent/s concerned in each appeal, of which his/their acquired portion of land formed part and apportioned to such acquired portion of land out of the market value of the entire land so determined, according to the ratio of the area worked out on squared yard basis. The market value of the acquired portion of land so determined was, in fact, treated as the loss sustained by the respondent-owner concerned and the Commissioner was directed to pay the same to him/them as compensation required to be paid under Sub-section (1) of Section 301 of the BMC Act for his/their acquired land. For the unpaid amount of such compensation, interest at 6% per annum was also ordered to be paid from the date of taking possession of the land till its actual payment. The present appeals by Special leave are filed on behalf of the BMC, against the said judgments of both the Court of Small Causes and the High Court, assailing the amounts of compensation determined for the acquired portions of lands of the respondents, on the basis of the principle of their market value, purporting to be under Sub-section (1) of Section 301 of the BMC Act. </p><p style="text-align: justify;">3. The learned Counsel appearing for the BMC, the common appellant in all the present appeals, contended that the Court of Small Causes, as well as, the High Court had gone wrong in determining the compensation payable to the owner under Sub-section (1) of Section 301 of the BMC Act for his land acquired under Sections 298 and 299 thereof, was its market value, when such compensation to be determined could not have been anything other than the loss which that owner had to sustain as a consequence of such acquisition and the expense which that owner had to incur as a consequence of such acquisition. He also contended that the method of determining the amount of market value of the whole land of the respondent in each appeal including that which was acquired and apportioning that market value to the portion of the acquired land, was indeed, not a method which the Court of Small Causes and the High Court, could have adopted for determining the compensation payable under Sub-section (1) of Section 301 of the BMC Act. On the other hand, learned Counsel who appeared for contesting respondents in the present appeals, sought to support the judgments of the Court of Small Causes and the High Court by which it has been held that the compensation payable to the owners for their portions of lands acquired by the BMC under Sections 298 and 299 thereof cannot be anything but their market value, and when such market value was given as compensation to owners for their acquired lands, there was no warrant for interfering with the same, by this Court. They also sought to obtain support for their contention from the decision of Privy Council in Municipal Council of Colombo v. Kuna Mana Navanna Suna Pana Latchiman Chettiar (1947) App Cas 188</p><p style="text-align: justify;">4. The questions which we have formulated at the outset as those requiring our consideration and answers, in deciding the present appeals, since take within their fold the aforestated rival contentions of learned Counsel for the contesting parties, they could now be considered and answered, in there serial Order.</p><p style="text-align: justify;">5. Re : Question (1) </p><p style="text-align: justify;">Does the provision in Sub-section (1) of Section 301 of the BMC Act specify a principle of determination of compensation payable to the owners of buildings or lands acquired for public streets under Sections 298 and 299 thereof, is the question.</p><p style="text-align: justify;">As the answer to the said question, has to necessarily depend on the content of Sub-section (1) of Section 301 of the BMC Act, it could be reproduced to understand its content, thus : </p><p style="text-align: justify;">301, (1) Compensation shall be paid by the Commissioner to the owner of any building or land acquired for a public street under Section 298 or 299, for any loss which such owner may sustain in consequence of his building or land being so acquired and for any expense incurred by such owner in consequence of the order made by the Commissioner under either of the said sections; provided that any increase or decrease in the value of the remainder of the property of which the building or land so acquired formed part likely to accrue from the set-back to the regular line of the street shall be taken into consideration and allowed for in determining the amount of such compensation.</p><p style="text-align: justify;">6. The said sub-section as could be seen from its content while provides for payment of compensation to the owner for his building or land acquired under Section 298 or Section 299 of the BMC Act, requires that such compensation (could comprise of, loss which such owner may sustain and expense which such owner may incur, as a consequence of acquisition of his building or land. In this context, if it is noted, that what is acquired under Section 298 of the BMC Act, is the portion of land within the regular line of public street, that is, the portion of land occupied by a building fallen down or burnt down or taken down, and that what is acquired under Section 299 of the BMC Act is the portion of land occupied by a building external to the building abutting the public street or a verandah, a step, a platform or other structure within the regular line of public street, the same furnishes the reason as to why the principle of compensation required to be adopted under Sub-section (1) of Section 301 of the BMC Act, for payment of compensation for such acquisition is confined to merely the loss sustained and the expense incurred, as a consequence of such acquisition. Thus, when Sub-section (1) of Section 301 of the BMC Act requires the loss sustained by the owner as a consequence of acquisition and the expense incurred by the owner as a consequence of acquisition, to be made good to such owner by way of compensation, what is found in that sub-section cannot be anything other than the principle of determination of compensation which is deliberately or wantonly specified therein, having regard to the vulnerability of a portion of land or a portion of building being acquired for the public street. This situation, makes us take the view that Sub-section (1) of Section 301 of the BMC Act specifies the appropriate principle of determination of compensation for a building or a land acquired either under Section 298 or Section 299 thereof. Our view that Sub-section (1) of Section 301 of the BMC Act specifies the principle of determination of compensation for building or land acquired under Sections 298 or Section 299 thereof, gives no room for doubting, since it receives, fortification from a Constitution Bench decision of this Court in Municipal Corporation of the City of Ahmedabad and Ors. v. The State of Gujarat and Ors. : [1973]1SCR1 , wherein dealing with the content of the provision in Sub-section (1) of section of the provision in Sub-section (1) of Section 216 of the Bombay Municipal Corporation Act 1949 which is exactly similar to the provision in Sub-section (1) of Section 301 of the BMC Act, it has been held thus:. Since full indemnification in accordance with judicial norms is the goal set by the Act, it is implicit in such a provision that the rules for determination of compensation shall be appropriate to the property acquired and such as will achieve the goal of full indemnity against loss. In other words, the Act provides for compensation to be determined in accordance with judicial principles by the employment of appropriate methods of valuation so that the person who is deprived of property is fully indemnified against the loss. This, by itself, in our opinion, is a specification of a principle for the determination of compensation.</p><p style="text-align: justify;">(emphasis supplied)</p><p style="text-align: justify;">7. Hence, we answer the question in the affirmative and to the effect that Sub-section (1) of Section 301 of the BMC Act, itself, specifies the principle of determination of compensation payable for land or building acquired under either of the Section 298 or 299 thereof.</p><p style="text-align: justify;">8. Re : Question (ii) </p><p style="text-align: justify;">Principle of determination of compensation payable for owners for the portions of their buildings or lands acquired either under Section 298 or Section 299 of the BMC Act, specified under Sub-section (1) of Section 301 of the BMC Act, as could be seen therefrom requires that such compensation shall be confined only to the loss sustained or the expenses incurred, by the owner, as a consequence of acquisition of his building or land lying within the regular line of the public street. If that be so, question of determining the compensation under Sub-section (1) of Section 301 of the BMC Act for acquisition of lands lying within the regular line of public street under either Section 298 or Section 299 thereof, on the basis of their market value, cannot arise. Market value could undoubtedly, be a principle on the basis of which compensation may be required to be determined under certain Statutes, for lands acquired thereunder. For instance, the <a href="/act/51407/land-acquisition-act-1894-complete-act">Land Acquisition Act, 1894</a> provides for payment of compensation for the land acquired thereunder on the basis of market value, that is, the price which a willing vendor might reasonably obtain from a willing purchaser for such land. It may be recalled in this context that in fact Sub-section (1) of Section 301 of the BMC Act, before its amendment by Bombay Act 1 of 1925, also required payment of compensation for lands acquired under Sections 298 and 299 of the BMC Act, on the basis of market value, in that, it read :</p><p style="text-align: justify;">301. (1) Compensation shall be paid by the Commissioner to the owner of any building or land acquired for a public street under Section 298 or 299, for the value of the said land and for any loss, damage or expense sustained by such owner in consequence of the order made by the Commissioner under either of the said sections.</p><p style="text-align: justify;">9. As seen from the said unamended sub-section, compensation was payable to the owner for his land or building acquired for a public street under either of the Sections 298 or 299 of the BMC Act, included the value of the land. But, Section (1) of Section 301 of the BMC Act as it stands amended, even though specifies the principle of compensation payable for land acquired under either of the Sections 298 or 299 of the BMC Act, does not require the payment of compensation to be paid thereunder, to include the value of land. The amended sub-section, therefore, makes it clear that the payment of value, that is, market value, as compensation for the acquired land is, in fact, excluded thereunder. If that be so, to hold that the market value of the acquired land is payable as compensation to the owner under Sub-section (1) of Section 301 of the BMC Act for the acquired lands envisaged thereunder, is to order something to be done which the Legislature required, not to be done. </p><p style="text-align: justify;">10. Indeed the decision of the Privy Council in Municipal Council of Colombo v. Kunamana Navanna Suna Pana Latchiman Chettiar 1947 App Cas 188 relied upon by counsel for respondents to support the view of Court of Small Causes and the Division Bench of the High Court that, that compensation payable under Sub-section (1) of Section 301 of the BMC Act, is the market value of the land acquired under either of the Sections 298 or 299, goes against such view. The Privy Council in that case was concerned with a provision which provided for payment of compensation for a land acquired for a public street according to the value of the land as required by the Statute - the Land Acquisition Ordinance. When the judgment of Supreme Court of Colombo appealed against, indicated that the compensation was ordered to be paid according to the loss sustained by the owner of the land acquired for the public street, instead of ordering compensation, according to the market value of the acquired land, the Privy Council observed thus :.The Supreme Court in valuing the acquired strip as part of the rest of the land of the respondent which is not either actually or nationally in the market, have not ascertained the market value of the acquired strips; they have attempted to ascertain the loss which the respondent had sustained by reason of acquisitioning of the acquired strip. That method finds no warrant in the Ordinance.</p><p style="text-align: justify;">11. Thus, the above decision of the Privy Council, if anything, makes it clear that what is to be paid by way of compensation for a land acquired under a Statute is what is required to be paid thereunder, by way of compensation for the acquired land and not payment of something by way of compensation which is not envisaged under the Statute.</p><p style="text-align: justify;">12. Hence, our answer to the question is that the principle specified in Sub-section (1) of Section 301 of the BMC Act for determination of compensation payable to the owners for their lands or buildings acquired under either of the Section 298 or 299 thereof, does not warrant determination of compensation according to market value of such building or land.</p><p style="text-align: justify;">13. Re : Question (iii) </p><p style="text-align: justify;">Method adoptable for determining the amount of compensation payable to the owners under Sub-section (1) of Section 301 of the BMC Act for land or building acquired under either Section 298 or Section 299 thereof, arises for consideration here. The compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner of the acquired land or building can only be the loss sustained and the expense incurred by the owner because of such acquisition and not the market value of the acquired building or land, as pointed out by us herein-before while considering Question (ii). Therefore, compensation payable under the said sub-section should be the amount which is required to be made good to the owner towards reimbursement of his loss sustained, if any, on account of acquisition and his expense incurred, if any, on account of acquisition. Sometimes there may not be any loss sustained and sometimes there may not be any expense incurred. At other times, there may be both loss sustained and expense incurred by the owner. Therefore, depending upon a given situation, what should be the compensation payable under that sub-section, has to be determined. Moreover, as is required by the proviso to the said sub-section 'any increase or decrease in the value of the remainder of the property of which the building or land so acquired formed part, likely to accrue from the set-back to the regular line of the street shall be taken into consideration and allowed for', in determining the amount of such compensation.</p><p style="text-align: justify;">14. If such amount, is the compensation payable to the owner under the said sub-section, what method should be adopted for determining such amount of compensation is the real question, which needs our answer.</p><p style="text-align: justify;">15. The method which in our considered opinion is the most appropriate for adoption in determining the compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property, having regard to the determinants or indicia specified in that sub-section, is that which should necessarily involve the following exercise : </p><p style="text-align: justify;">(1) Of determining the market value of the whole property or land of the owner before a portion of that property or land was acquired under either Section 298 or Section 299 or the BMC Act. </p><p style="text-align: justify;">(2) Of determining the market value of the remainder property left with the owner after a portion of it got acquired under either Section 298 or Section 299 of the BMC Act. That market value of the remainder property must be that determined taking into consideration the increased value accrued to it or decreased value suffered by it, as a result of improved street formed by acquisition of its portion and acquisition of similar portions of properties of others Whenever the remainder property gets the benefit of improved street formed with acquired portions of lands, it can be presumed in the absence of contrary evidence that there is increase in its value, although the quantum of increase ought to depend on extents or strips of lands acquired for the improvement of the street and importance gained by it.</p><p style="text-align: justify;">(3) If the amount of the market value of the property, as determined under item (2) falls short of the amount of market value of the property as determined in item (1), it is that amount of the short-fall, which could be regarded as the loss to the owner for his acquired portion of the property, the principal component of compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired portion of property or land. </p><p style="text-align: justify;">(4) Expenses incurred by the owner, if any, on account of acquisition of a portion of his property if not already taken into consideration in determining the market value of the remainder property under item (2), then that amount of expenses incurred by the owner should be regarded as the other component of compensation payable to him under Sub-section (1) of Section 301 of the BMC Act.</p><p style="text-align: justify;">(5) The amount of loss in item (3) and the amount of expense in item (4) together constitute the total compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property or land. </p><p style="text-align: justify;">16. How, by adoption of the said method the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act is determinable could be illustrated with reference to a hypothetical case of acquisition of 20 sq. mts. of land out of 100 sq. mts. of land whereby the owner is allowed to retain the remainder land of 80 sq. mts. of land. </p><p style="text-align: justify;">17. Amount of market value to be fetched for 100 sq. mts. of land before acquisition of its portion, is found to be, say Rs. 180 per sq. mt. Such market value would be 100 times of Rs. 180, that is, Rs. 18,000.00. </p><p style="text-align: justify;">18. Amount of market value to be fetched for 80 sq. mts. of remainder land, is found to be, say of Rs. 200 per sq. mt., such market value would be 80 times of Rs. 200, that is, Rs. 16,000.00. </p><p style="text-align: justify;">19. The amount of market value of the entire 100 sq. mts. of land before a portion of it was acquired, minus the amount of market value of the remainder land would furnish the amount of loss sustained by the owner, that is, Rs. 18,000.00 minus Rs. 16,000.00 = Rs. 2,000.00. </p><p style="text-align: justify;">20. The loss so sustained by the owner as a consequence of acquisition of a portion of his land and the amount of expenses, say Rs. 1,000.00 incurred by him because of the acquisition, (such expenses if not already included in determining the market value of the reminder land of 80 sq. mts), together, would be the compensation. That is Rs. 2,000.00 + Rs. 1,000.00 = Rs. 3,000.00. </p><p style="text-align: justify;">21. Therefore, compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired land, would be Rs. 3,000.00. </p><p style="text-align: justify;">22. Hence, our answer to the question is that the method of determination of compensation payable under Section 301 (1) of the BMC Act to the owner for his acquired property or land under either Section 298 or Section 299 thereof, requires the assessment of the loss sustained by the owner as a consequence of acquisition, such loss being the amount of market value of the property or land as a whole, as stood before its acquisition, minus the amount of market value of the remainder property or land and assessment of the expenses incurred by the owner as a consequence of acquisition. The said method has commended itself for our acceptance, since it accords with the principle specified in Sub-section (1) of Section 301 of the BMC Act for determination of compensation payable to the owner of a property or land acquired under either Section 298 or Section 299 thereof. However, what method should be adopted for determining the market value of the whole property of the owner or remainder property of the owner, shall, as it ought to be, depend on the nature of property concerned.</p><p style="text-align: justify;">23. There is, however, another question which requires our consideration and answer. That question concerned the payment of interest on the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property referred to therein. </p><p style="text-align: justify;">24. Sub-section (1) of Section 301 of the BMC Act as it stands does not provide for payment of interest on the amount of compensation payable to the owner for his properties acquired either under Section 298 or Section 299 of the BMC Act. There is no other provision also found in the BMC Act providing for payment of interest on such amount of compensation. The question is, if the statute which provides for acquisition of property and payment of compensation therefor, does not provide for payment of interest on such compensation, does any interest become payable.</p><p style="text-align: justify;">25. It is now settled by three-Judge Bench decision of this Court in Union of India v. Harikrishnan Khosla : 1992(2)SCALE621 that no interest is payable on the compensation payable under the Requisitioning and Acquisitioning of Immovable Property Act, since there is no provision made in that regard in that Act. The ratio of the said decision since forbids payment of interest on the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act, we are constrained to hold that no liability arises for payment of interest on such compensation.</p><p style="text-align: justify;">26. Now coming to facts of the cases which have led to the filing of the present appeals by the BMC, what has been done in the judgments of the Chief Judge of the Court of Small Causes and the High Court appealed against, is to determine the amount of market value, as such, of the acquired portions of the lands of respondents in the appeals and order payment of such amounts of market value as compensation along with 6 per cent interest per annum from the date of taking possession of the land till the date of its payment.</p><p style="text-align: justify;">27. In answering the various questions considered by us herein-before, we have held that the compensation payable under Sub-section (1) of Section 301 of the BMC Act for the properties acquired under either Section 298 or Section 299 thereof cannot be determined on the basis of their market value, as it would go against the principle of determination of compensation specified in that sub-section and that no interest shall be payable on such amount of compensation for delayed payment, as the same is not made payable by any provision in the BMC Act. Hence, the judgment of the Chief Judge of Small Causes Court, as well as, the judgment of the High Court, appealed against in these appeals, directing payment of compensation for the acquired portions of lands, according to their actual market value along with interest thereon @ 6 per cent per annum, become unsustainable and are liable to be set aside by allowing the present appeals. Then, do the cases under present appeals, require to be remanded to the Chief Judge of the Court of Small Causes, Bombay for their disposal in the light of this judgment, is the question, which calls for our consideration.</p><p style="text-align: justify;">28. It was submitted by learned Counsel for the respondents that we should instead of remanding the cases under appeals to the Chief Judge of the Court of Small Causes at Bombay for fresh disposal in accordance with this judgment, as was suggested by us, the amounts of compensation awarded to the respondents in the appeals having regard to the fact that a period of 20 years has elapsed from the year in which the acquisitions concerned were made, and the total amounts awarded, that is, about eleven lakhs, not being a very big amount from the point of the BMC, should be allowed to stand undisturbed. We have given our anxious consideration to the submission. What has been now done by the Court of Small Causes, as well as, the High Court is, to determine the market value of the whole of the land of each of the respondent/s in the appeals, as stood before its portion was acquired, on square yard basis and award out of that amount of compensation, the amount of market value apportionable to the acquired portion of the land, according to its area on square yard basis. If the material, as to what was the total extent of land of the respondent/s in each of the appeals, before a portion of it was acquired, was made available to us, we would have ourselves determined the compensation, according to the method which is already suggested by us for adoption. When such material, is unavailable, we have no option but to remand the cases for disposal by the Chief Judge of the Court of Small Causes at Bombay in the manner which we shall presently indicate. </p><p style="text-align: justify;">29. The market value of the remainder land (land left out after acquisition) of respondent/s in each of the appeals, will have naturally increased, due to the advantage got by it on account of improved road made by acquisition of their several parcels of lands. In the absence of evidence of such increased value, in our view, the facts and circumstances of the present cases warrant granting of an increase in the market value of the remainder land of each of the respondent/s by ten per cent.</p><p style="text-align: justify;">30. Therefore, the Chief Judge, Court of Small Causes must firstly, find out the total market value of the remainder land of each of the respondent/s in the appeals, according to the rate per square yard already fixed for it by the High Court and secondly add to such market value ten per cent increase adverted to. Then, the Chief Judge must also find out, separately, the amount of market value of the whole land of respective respondent/s in each of the appeals again finding out such market value according to the rate per square yard already fixed by the High Court.</p><p style="text-align: justify;">31. The amount of market value of the whole land of the respondent/s in each of the appeals arrived at, as stated, minus the amount of market value of the remainder land of respective respondent/s arrived at, as stated, shall be treated as the loss sustained by each of them, as a consequence of acquisition of their respective portions of land. Such amount of loss, if any, shall alone be the amount, to be ordered to be paid to the concerned respondent/s, as compensation payable to him/them, under Sub-section (1) of Section 301 of the BMC Act, inasmuch as there is no claim or evidence in the cases as to the expenses incurred, by him/them, as a consequence of acquisition, which would have otherwise become payable as a component of compensation under that sub-section. That no interest is payable on the amount of compensation to be ordered to be paid, shall, however, be noted. </p><p style="text-align: justify;">32. In the result, we allow these appeals set aside the judgments of the Chief Judge of Small Causes Court at Bombay and of the High Court of Bombay appealed against, and remit the cases to the Court of the Chief Judge of Small Causes Court at Bombay for deciding them according to the directions contained and indications given in this judgment, after hearing parties or their counsel. However, in the circumstances of these appeals, we make no order as to costs. <p style="text-align: justify;"></p><p style="text-align: justify;">',
			'observations' => null,
			'overruledby' => null,
			'prhistory' => 'From the Judgment and Order dated 5th, 6th/7th August 1974 of the High Court of Judicature at Bombay in First Appeal Nos. 386 to 395 of 1968. ',
			'pubs' => 'AIR1994SC2385; JT1994(3)SC535; 1994(2)SCALE813; (1994)4SCC690; [1994]3SCR823; 1994(2)LC261(SC)',
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		(int) 45 => 'Section 301',
		(int) 46 => 'the BMC Act',
		(int) 47 => 'Section 301',
		(int) 48 => 'the BMC Act',
		(int) 49 => 'the Section 298',
		(int) 50 => 'Section 298 or Section 299',
		(int) 51 => 'Section 301',
		(int) 52 => 'the BMC Act',
		(int) 53 => 'Section 301',
		(int) 54 => 'the BMC Act',
		(int) 55 => 'Section 298 or Section 299',
		(int) 56 => 'the Land Acquisition Act',
		(int) 57 => 'Section 301',
		(int) 58 => 'the BMC Act',
		(int) 59 => 'the BMC Act',
		(int) 60 => 'Section 298',
		(int) 61 => 'the BMC Act',
		(int) 62 => 'Section 301',
		(int) 63 => 'the BMC Act',
		(int) 64 => 'the BMC Act',
		(int) 65 => 'Section 301',
		(int) 66 => 'the BMC Act',
		(int) 67 => 'Section 301',
		(int) 68 => 'the BMC Act',
		(int) 69 => 'Section 301',
		(int) 70 => 'the BMC Act',
		(int) 71 => 'the Section 298',
		(int) 72 => 'Section 301',
		(int) 73 => 'the BMC Act',
		(int) 74 => 'Section 298 or Section 299',
		(int) 75 => 'Section 301',
		(int) 76 => 'the BMC Act',
		(int) 77 => 'Section 301',
		(int) 78 => 'the BMC Act',
		(int) 79 => 'Section 298 or Section 299',
		(int) 80 => 'the BMC Act',
		(int) 81 => 'Section 298 or Section 299 of the BMC Act',
		(int) 82 => 'Section 301',
		(int) 83 => 'the BMC Act',
		(int) 84 => 'Section 301',
		(int) 85 => 'Section 301',
		(int) 86 => 'the BMC Act',
		(int) 87 => 'Section 301',
		(int) 88 => 'the BMC Act',
		(int) 89 => 'Section 301',
		(int) 90 => 'the BMC Act',
		(int) 91 => 'Section 301',
		(int) 92 => 'the BMC Act',
		(int) 93 => 'Section 298 or Section 299',
		(int) 94 => 'Section 301',
		(int) 95 => 'the BMC Act',
		(int) 96 => 'Section 298 or Section 299',
		(int) 97 => 'Section 301',
		(int) 98 => 'the BMC Act',
		(int) 99 => 'Section 301',
		(int) 100 => 'the BMC Act',
		(int) 101 => 'Section 298 or Section 299',
		(int) 102 => 'the BMC Act',
		(int) 103 => 'the BMC Act',
		(int) 104 => 'the Requisitioning and Acquisitioning of Immovable Property Act',
		(int) 105 => 'Section 301',
		(int) 106 => 'the BMC Act',
		(int) 107 => 'Section 301',
		(int) 108 => 'the BMC Act',
		(int) 109 => 'Section 298 or Section 299',
		(int) 110 => 'the BMC Act',
		(int) 111 => 'Section 301',
		(int) 112 => 'the BMC Act'
	),
	'ORG' => array(
		(int) 0 => 'ORDERN',
		(int) 1 => 'First Appeals Nos',
		(int) 2 => 'the High Court of Judicature',
		(int) 3 => 'the Bombay Municipal Corporation Act',
		(int) 4 => 'Sections 298',
		(int) 5 => 'Sections 298',
		(int) 6 => 'the Bombay Municipal Corporation - '',
		(int) 7 => 'BMC',
		(int) 8 => 'BMC',
		(int) 9 => 'the Court of Small Causes',
		(int) 10 => 'BMC',
		(int) 11 => 'the High Court of Judicature',
		(int) 12 => 'the High Court',
		(int) 13 => 'the Court of Small Causes',
		(int) 14 => 'the High Court',
		(int) 15 => 'Court of Small Causes',
		(int) 16 => 'the High Court',
		(int) 17 => 'BMC',
		(int) 18 => 'the Court of Small Causes',
		(int) 19 => 'the High Court',
		(int) 20 => 'BMC',
		(int) 21 => 'the Court of Small Causes',
		(int) 22 => 'the High Court',
		(int) 23 => 'Sections 298',
		(int) 24 => 'the Court of Small Causes',
		(int) 25 => 'the High Court',
		(int) 26 => 'the Court of Small Causes',
		(int) 27 => 'the High Court',
		(int) 28 => 'BMC',
		(int) 29 => 'Court',
		(int) 30 => 'Privy Council',
		(int) 31 => 'Municipal Council of Colombo',
		(int) 32 => 'Sections 298',
		(int) 33 => 'The State of Gujarat and Ors',
		(int) 34 => 'the Bombay Municipal Corporation Act',
		(int) 35 => 'Sections 298',
		(int) 36 => 'the Sections 298',
		(int) 37 => 'the Sections 298',
		(int) 38 => 'Legislature',
		(int) 39 => 'the Privy Council in Municipal Council of Colombo',
		(int) 40 => 'Court of Small Causes',
		(int) 41 => 'the High Court',
		(int) 42 => 'the Sections 298',
		(int) 43 => 'The Privy Council',
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		(int) 45 => 'the Privy Council',
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		(int) 47 => 'the Privy Council',
		(int) 48 => 'Statute',
		(int) 49 => 'Union of India',
		(int) 50 => 'BMC',
		(int) 51 => 'the Court of Small Causes',
		(int) 52 => 'the High Court',
		(int) 53 => 'Small Causes Court',
		(int) 54 => 'the High Court',
		(int) 55 => 'the Court of Small Causes',
		(int) 56 => 'the Court of Small Causes',
		(int) 57 => 'BMC',
		(int) 58 => 'the Court of Small Causes',
		(int) 59 => 'the High Court',
		(int) 60 => 'the Court of Small Causes',
		(int) 61 => 'Court of Small Causes',
		(int) 62 => 'the High Court',
		(int) 63 => 'Small Causes Court',
		(int) 64 => 'the High Court',
		(int) 65 => 'the Court of the Chief',
		(int) 66 => 'Small Causes Court'
	),
	'GPE' => array(
		(int) 0 => 'Venkatachala',
		(int) 1 => 'Bombay',
		(int) 2 => 'Bombay',
		(int) 3 => 'Bombay',
		(int) 4 => 'Counsel',
		(int) 5 => 'mt.',
		(int) 6 => 'Bombay',
		(int) 7 => 'Bombay',
		(int) 8 => 'Bombay',
		(int) 9 => 'Bombay',
		(int) 10 => 'Bombay',
		(int) 11 => 'Bombay'
	),
	'NORP' => array(
		(int) 0 => 'J.1'
	),
	'ORDINAL' => array(
		(int) 0 => '5th',
		(int) 1 => '6th',
		(int) 2 => '7th',
		(int) 3 => '5th',
		(int) 4 => '6th',
		(int) 5 => '7th',
		(int) 6 => 'firstly',
		(int) 7 => 'secondly'
	),
	'DATE' => array(
		(int) 0 => '1974',
		(int) 1 => '1968',
		(int) 2 => '1888',
		(int) 3 => 'the year 1962',
		(int) 4 => '14th March, 1968',
		(int) 5 => 'August, 1974',
		(int) 6 => '1947',
		(int) 7 => '1949',
		(int) 8 => '1894',
		(int) 9 => '18,000.00. 18',
		(int) 10 => '2,000.00 + Rs',
		(int) 11 => '21',
		(int) 12 => '20 years',
		(int) 13 => 'the year',
		(int) 14 => '32'
	),
	'CARDINAL' => array(
		(int) 0 => '386-395',
		(int) 1 => 'three',
		(int) 2 => '1',
		(int) 3 => '299',
		(int) 4 => '1',
		(int) 5 => '299',
		(int) 6 => '1',
		(int) 7 => '2',
		(int) 8 => '2',
		(int) 9 => '1',
		(int) 10 => '1',
		(int) 11 => '80',
		(int) 12 => '450',
		(int) 13 => '640',
		(int) 14 => 'one',
		(int) 15 => '1',
		(int) 16 => '1',
		(int) 17 => '1',
		(int) 18 => '3',
		(int) 19 => '1',
		(int) 20 => '299',
		(int) 21 => '1',
		(int) 22 => '298',
		(int) 23 => '299',
		(int) 24 => '1',
		(int) 25 => '1',
		(int) 26 => '299',
		(int) 27 => '1',
		(int) 28 => '301',
		(int) 29 => '1',
		(int) 30 => '299',
		(int) 31 => '1',
		(int) 32 => '1',
		(int) 33 => '1',
		(int) 34 => '1',
		(int) 35 => '298',
		(int) 36 => '1973]1SCR1',
		(int) 37 => '1',
		(int) 38 => '1',
		(int) 39 => '1',
		(int) 40 => '1',
		(int) 41 => '299',
		(int) 42 => '1',
		(int) 43 => '1',
		(int) 44 => '1',
		(int) 45 => '299',
		(int) 46 => '301',
		(int) 47 => '1',
		(int) 48 => '299',
		(int) 49 => '299',
		(int) 50 => '1',
		(int) 51 => '299',
		(int) 52 => '1',
		(int) 53 => '10',
		(int) 54 => '1',
		(int) 55 => '299',
		(int) 56 => '1',
		(int) 57 => '299',
		(int) 58 => '1',
		(int) 59 => '1',
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		(int) 61 => '1',
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		(int) 63 => '2',
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		(int) 66 => '4',
		(int) 67 => '2',
		(int) 68 => '1',
		(int) 69 => '3',
		(int) 70 => '4',
		(int) 71 => '1',
		(int) 72 => '16',
		(int) 73 => '1',
		(int) 74 => '20',
		(int) 75 => '100',
		(int) 76 => '80',
		(int) 77 => '17',
		(int) 78 => '100',
		(int) 79 => '180',
		(int) 80 => '100',
		(int) 81 => '180',
		(int) 82 => '80',
		(int) 83 => '200',
		(int) 84 => '80',
		(int) 85 => '200',
		(int) 86 => '16,000.00',
		(int) 87 => '19',
		(int) 88 => '100',
		(int) 89 => '18,000.00',
		(int) 90 => '16,000.00',
		(int) 91 => '2,000.00',
		(int) 92 => '20',
		(int) 93 => '1,000.00',
		(int) 94 => '80',
		(int) 95 => '1,000.00',
		(int) 96 => '3,000.00',
		(int) 97 => '1',
		(int) 98 => '3,000.00',
		(int) 99 => '22',
		(int) 100 => '1',
		(int) 101 => '1',
		(int) 102 => '1',
		(int) 103 => '24',
		(int) 104 => '1',
		(int) 105 => 'three',
		(int) 106 => '1992(2)SCALE621',
		(int) 107 => '1',
		(int) 108 => '1',
		(int) 109 => 'about eleven',
		(int) 110 => '29',
		(int) 111 => 'ten',
		(int) 112 => '1'
	),
	'FAC' => array(
		(int) 0 => 'Gowalia Tank Road',
		(int) 1 => 'the BMC Act.(5'
	),
	'PERSON' => array(
		(int) 0 => 'Bhulabhai Desai Road',
		(int) 1 => 'Navanna Suna Pana Latchiman Chettiar',
		(int) 2 => 'App Cas 1884',
		(int) 3 => 'Counsel',
		(int) 4 => 'Statutes',
		(int) 5 => 'Kunamana Navanna Suna',
		(int) 6 => 'App Cas 188',
		(int) 7 => 'Question',
		(int) 8 => 'compensation.14',
		(int) 9 => 'Bench',
		(int) 10 => 'Harikrishnan Khosla',
		(int) 11 => 'Counsel'
	),
	'PERCENT' => array(
		(int) 0 => '6%'
	),
	'PRODUCT' => array(
		(int) 0 => 'Bombay Act 1 of'
	),
	'MONEY' => array(
		(int) 0 => '6 per cent',
		(int) 1 => '6 per cent',
		(int) 2 => 'ten per cent'
	)
)
$desc = array(
	'Judgement' => array(
		'id' => '659619',
		'acts' => 'Bombay Municipal Corporation Act, 1888 - Sections 298, 299, 301(1) and 504; <a href="/act/51407/land-acquisition-act-1894-complete-act">Land Acquisition Act, 1894</a>; Bombay Municipal Corporation Act, 1949 - Sections 216; Bombay Act, 1925',
		'appealno' => 'Civil Appeals Nos. 1278-1287 of 1977.',
		'appellant' => 'Municipal Corporation of Greater Bombay and Others',
		'authreffered' => '',
		'casename' => 'Municipal Corporation of Greater Bombay and Others Vs. Central Bank of India and Another Etc. Etc.',
		'casenote' => 'Property - compensation - Sections 298, 299 and 301 of Bombay Municipal Corporation (BMC) Act, 1888 - what method could be adopted for determining amount of compensation payable under Section 301 (1) - Section 301 (1) of Act requires loss sustained by owner as consequences of acquisition and expense incurred by owner as consequence of acquisition to be made good to such owner by way of compensation - Section 301 (1) of Act specifies appropriate principle of determination of compensation for building or land acquired under Sections 298 and 299 - matter remitted to Small Cause Court for deciding according to directions after hearing parties. - Subordinate/Delegated legislation:[D.K. Jain & R.M. Lodha, JJ] Banks -Voluntary Retirement Scheme, 2000 (VRS 2000) - Held,  The amendment in Regulation 28, as is reflected from Communication dated 5.9.2000, was intended to cover employees who had rendered 15 years service but not completed 20 years service. It was not intended to cover optees who had already completed 20 years service as the provisions contained in Regulation 29 met that contingency. Even if it be assumed that by insertion of Proviso in Regulation 28 (in the year 2002 with retrospective effect from 1.9.2000), all classes of employees under VRS 2000 were intended to be covered, such amendment in Regulation 28, needs to be harmonised with Regulation 29, particularly Regulation 29(5) which provides for addition of qualifying service by five years. This would be in tune and consonance with the explanatory note appended to the amendment in Regulation 28 wherein it is stated that the amendment with retrospective effect would not adversely affect any employee or  officer of the respondent Bank. That would also meet the test of fairness. Weightage of five years under Regulation 29(5) is applicable to the optees having service of 20 years or more. Merely because the employees who have completed 15 years of service but not completed 20 years of service are not entitled to weightage of five years for qualifying service under Regulation 29(5), the employees who have completed 20 years of service or more cannot be denied such benefit. It is also not correct to say that by taking recourse to Regulation 29, the amendment to Regulation 28 is rendered otiose.

LABOUR & SERVICES Pension: [D.K. Jain & R.M. Lodha, JJ] Banks -Employees Pension Regulations, 1995-Regulations 29(5) and 28 Proviso (added in 2002 retrospectively from 1.9.2000) - Benefit of five years additional qualifying service under Regulation 29(5) - Availability of benefit to employees taking retirement under Voluntary Retirement Scheme, 2000 (VRS 2000) on completion of 20 years service - Held, The benefit is available notwithstanding that such employees had received ex gratia payments under VRS 2000. Further Regulation 28 which was amended subsequently by adding a proviso retrospectively, could not be applied to such employees. 

Pension: [D.K. Jain & R.M. Lodha,JJ] Bona fide delay in payment - Inadmissibility of interest -  Delay due to litigation wherein genuine issue of law needed to be resolved in view of difference of opinion between High Courts. Besides, stand taken by appellant Banks was also not frivolous though ultimately rejected by Supreme Court. Grant of interest, under these circumstances is not warranted. 

Pension: [D.K. Jain & R.M. Lodha,JJ] Scope, object and applicability of Banks Employees Pension Regulations, 1995- Regulation 28, Proviso (added in 2002 retrospectively from 1.9.2000) and Regulation 29(5) - Held, The purpose of the Proviso is to confer benefit of pension to those employees who sought voluntary retirement after completion of 15 years but before completion of 20 years of service. Proviso cannot be interpreted to deprive benefit of five years additional qualifying service to those employees who took retirement after 20 years of service under VRS 2000.

LABOUR & SERVICES Voluntary Retirement Scheme: [D.K. Jain & R.M. Lodha,JJ] Banks -Voluntary Retirement Scheme, 2000 (VRS 2000) - The appellant public sector banks framed a scheme known as Voluntary Retirement Scheme, 2000 (VRS 2000) under which all permanent employees of bank who had put in minimum 15 years of service or completed 40 years of age were eligible to seek voluntary retirement. The Scheme was framed for optimizing the staff strength by shedding excess employees. VRS 2000 provided that an employee whose application for voluntary retirement was accepted, would inter alia be entitled to pension in terms of the Employees Pension Regulations, 1995, in case of those who have opted for pension and have put in 20 completed years of service in the bank. Besides, there was also a parallel provision in Regulation 29 of the Pension Regulations, under which an employee with 20 years qualifying service could take voluntary retirement. Such an employee was entitled to benefit of five years additional qualifying service under Regulation 29(5). The issue involved was, whether an employee with 20 years service, who had taken retirement under VRS 2000 (and not under Regulation 29) was entitled to benefit of five years additional qualifying service as provided in Regulation 29(5) of the Pension Regulations. Contention of appellant Banks was that benefit of five years additional qualifying service was admissible only to an employee who took voluntary retirement under Regulation 29, and not to an employee who took retirement under VRS 2000. The employees however relied on Ministry of Finance Communication dated 5.9.2000 (reproduced in para 38 of the judgment) to support their contention that proviso was added to Regulation 28 for the purpose that an employee who takes VRS on completing 15 years of service but before 20 years service, also gets pension. Held,  The employees who had completed 20 years of service and offered voluntary retirement under VRS 2000 are entitled to addition of five years of notional service in calculating the length of service for the purposes of that Scheme as per Regulation 29(5) of the Pension regulations. If the intention was not to give pension as provided in Regulation 29 and particularly sub-regulation (5) thereof, the banks could have said so in the Scheme itself. Much though had gone into formulation of VRS 2000 and it came to be framed after great deliberations. The only provision that could have been in the mind while providing for pension as per the Pension Regulations was Regulation 29. The employees too had the benefit of Regulation 29(5) in mind when they offered for voluntary retirement as Regulation 28, as was existing at that time, was not applicable at all.  VRS 2000 was an attractive package for the employees as they were getting special benefits in the form of ex gratia payments and in addition thereto, inter alia, pension under the Pension Regulations which also provided for weightage of five years of qualifying service for the purposes of pension to the employees who had completed 20 years service. It would be unreasonable if amended Regulation 28 is made applicable, which had not seen the light of the day and which was not the intention of the banks when the Scheme was framed. The banks are public sector banks and are State within the meaning of Article 12 of the Constitution. Their action even in contractual matters has to be reasonable, lest, it must attract the wrath or Article 14 of the Constitution.     Any interpretation of the terms of VRS 2000, although contractual in nature, must meet the test of fairness. It has to be construed in a manner that avoids arbitrariness and unreasonableness on the part of public sector banks which brought out VRS 2000 with an objective of rightsizing their manpower. The Scheme was oriented to lure the employees to go in for voluntary retirement. In this background, the consideration that was to pass between the parties assumes significance and a harmonious construction to the Scheme and the Pension Regulations, therefore, has to be given. Contention of the appellant Banks were rejected and it was declared that the employees who took retirement under the VRS 2000 are entitled to benefit of five years additional qualifying service under Regulation 29(5).

Voluntary Retirement Scheme: [D.K. Jain & R.M. Lodha,JJ] Banks-Voluntary Retirement Scheme, 2000 (VRS 2000) - Effect of Employees Pension Regulations, 1995 having been made part of VRS 2000  Held, The precise effect of Pension Regulations, for the purposes of pension, having been made part f the Scheme, is that the Pension Regulations, to the extent, these are applicable, must be read into the Scheme. Interpretation clause of VRS 2000 states that the words and expressions used in the Scheme but not defined, and defined in the rules/regulations shall have the same meaning respectively assigned to them under the rules/regulations. The Scheme does not define the expression retirement or voluntary retirement.  Therefore the definition of retirement given in Regulation 2(y) whereunder voluntary retirement under Regulation 29 is considered to be retirement, has to be taken into consideration. Regulation 29 uses the expression, voluntary retirement under these Regulations. For the purposes of the Scheme, it has to be understood to mean with necessary changes in points of details Section 23 of the Contract Act, 1872 has no application to the present fact situation. It cannot be accepted that VRS 2000 did not envisage grant of pension benefits under Regulation 29(5) to the optees of 20 years service along with payment of ex-gratia. 

INDIAN EVIDENCE ACT, 1872 

Section 115; [D.K. Jain & R.M. Lodha, JJ] Estoppel - Held, Bank employees who had taken retirement under the Voluntary Retirement Scheme, 2000 (VRS 2000) and claimed benefit of additional qualifying service under Employees Pension Regulations, 1995, were not resiling from VRS 2000, rather were enforcing the Scheme. Question of estoppel therefore does not arise.  -  3. The learned Counsel appearing for the BMC, the common appellant in all the present appeals, contended that the Court of Small Causes, as well as, the High Court had gone wrong in determining the compensation payable to the owner under Sub-section (1) of Section 301 of the BMC Act for his land acquired under Sections 298 and 299 thereof, was its market value, when such compensation to be determined could not have been anything other than the loss which that owner had to sustain as a consequence of such acquisition and the expense which that owner had to incur as a consequence of such acquisition. Thus, when Sub-section (1) of Section 301 of the BMC Act requires the loss sustained by the owner as a consequence of acquisition and the expense incurred by the owner as a consequence of acquisition, to be made good to such owner by way of compensation, what is found in that sub-section cannot be anything other than the principle of determination of compensation which is deliberately or wantonly specified therein, having regard to the vulnerability of a portion of land or a portion of building being acquired for the public street. The compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner of the acquired land or building can only be the loss sustained and the expense incurred by the owner because of such acquisition and not the market value of the acquired building or land, as pointed out by us herein-before while considering Question (ii). Therefore, compensation payable under the said sub-section should be the amount which is required to be made good to the owner towards reimbursement of his loss sustained, if any, on account of acquisition and his expense incurred, if any, on account of acquisition. Hence, the judgment of the Chief Judge of Small Causes Court, as well as, the judgment of the High Court, appealed against in these appeals, directing payment of compensation for the acquired portions of lands, according to their actual market value along with interest thereon @6 per cent per annum, become unsustainable and are liable to be set aside by allowing the present appeals. What has been now done by the Court of Small Causes, as well as, the High Court is, to determine the market value of the whole of the land of each of the respondent/s in the appeals, as stood before its portion was acquired, on square yard basis and award out of that amount of compensation, the amount of market value apportionable to the acquired portion of the land, according to its area on square yard basis.',
		'caseanalysis' => null,
		'casesref' => 'Union of India v. Harikrishnan Khosla;',
		'citingcases' => '
Municipal Council of Colombo v. Kuna Mana Navanna Suna Pana Latchiman 
Chettiar 								Mentioned

Municipal Corporation of the City of Ahmedabad and Ors. v. The 
State of Gujarat and Ors. 						Discussed

Municipal Council of Colombo v. Kunamana Navanna Suna Pana Latchiman 
Chettiar 								Discussed

Union of India v. Harikrishnan Khosla 					Dissented

',
		'counselplain' => ' V.A. Bobale and;D.N. Mishra&lt; Adv',
		'counseldef' => ' R.F. Nariman, ; R.B. Hathikhanawala, ; D.B. Moos For the Respo',
		'court' => 'Supreme Court of India',
		'court_type' => 'SC',
		'decidedon' => '1994-05-02',
		'deposition' => '',
		'favorof' => null,
		'findings' => null,
		'judge' => ' K. Ramaswamy and; N. Venkatachala, JJ.',
		'judgement' => 'ORDER<p style="text-align: justify;">N. Venkatachala, J.</p><p style="text-align: justify;">1. These appeals by special leave, directed against the common judgment dated 5th, 6th and 7th August, 1974 rendered in First Appeals Nos. 386-395 of 1968 by the High Court of Judicature at Bombay, are required to be decided by us by considering and answering three important questions:</p><p style="text-align: justify;">(i) Does the provision in Sub-section (1) of Section 301 of the Bombay Municipal Corporation Act, 1888 - 'the BMC Act' specify a principle of determination of compensation payable to the owners of the buildings or lands acquired for a public street under Sections 298 and 299 thereof?</p><p style="text-align: justify;"> (ii) Does the principle specified in Sub-section (1) of Section 301 of the BMC Act, for determination of compensation payable to the owners for their buildings or lands acquired under Sections 298 and 299 thereof, warrant determination of such compensation according to the market value of such acquired buildings or lands </p><p style="text-align: justify;">(iii) What method could be adopted for determining the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act? </p><p style="text-align: justify;">2. The salient facts which have let to the filing of the present appeals lie in a narrow compass : Gowalia Tank Road and Bhulabhai Desai Road lying within the area of the Bombay Municipal Corporation - 'the BMC' are public streets envisaged under the BMC Act. In the year 1962, the BMC which resolved to improve the said public streets by widening them, acquired out of the lands of respondents in these appeals, certain portions which fell within the regular line of the public streets and took their possession, as provided for in Sub-section (2) of Section 298 and Sub-section (1) of Section 299 of the BMC Act. The Commissioner who was liable under Sub-section (1) of Section 301 of the BMC Act, to pay compensation to the respondents in these appeals for their acquired portions of lands, offered to pay them compensation at an uniform rate of Rs. 80 per square yard of land. But, the respondents, who disputed the adequacy of the said compensation offered to be paid to them, filed applications before the Chief Judge of the Court of Small Causes, Bombay, praying for grant of higher compensation for their acquired portions of lands, by taking recourse to the provision in Section 504 of the BMC Act. The Chief Judge, who entertained those applications, with the consent of parties, clubbed all the said applications, recorded common evidence thereon and decided them by his common judgment dated 14th March, 1968. Under that common judgment, the compensation made payable to the respondents in these appeals - the owners, for their acquired portions of lands, was their market value worked out at a rate ranging from Rs. 450 per sq. yard to Rs. 640 per sq. yard. The BMC assailed that common judgment of the learned Chief Judge, as granting excessive compensation, by filing appeals in the High Court of Judicature at Bombay. A Division Bench of the High Court, which heard those appeals, by its common judgment dated the 5th, the 6th and the 7th August, 1974, while allowed one of them partly by reducing the compensation in some measure, dismissed the rest. According to the Chief Judge of the Court of Small Causes, and the Division Bench of the High Court, what was payable by way of compensation under Sub-section (1) of Section 301 of the BMC Act to the owners, for the portions of their lands acquired under either Section 298 or Section 299 thereof, was the market value of such portions and, therefore, the market value obtainable by the owners for their respective entire lands had to be apportioned between the uncured portion of the land and the acquired portion of the land and it was that much of the market value apportionable to acquired land, which was liable to be paid to the owner as compensation for his acquired land. Consequently, both the Chief Judge of Court of Small Causes and the Division Bench of the High Court determined the market value of the entire land of respondent/s concerned in each appeal, of which his/their acquired portion of land formed part and apportioned to such acquired portion of land out of the market value of the entire land so determined, according to the ratio of the area worked out on squared yard basis. The market value of the acquired portion of land so determined was, in fact, treated as the loss sustained by the respondent-owner concerned and the Commissioner was directed to pay the same to him/them as compensation required to be paid under Sub-section (1) of Section 301 of the BMC Act for his/their acquired land. For the unpaid amount of such compensation, interest at 6% per annum was also ordered to be paid from the date of taking possession of the land till its actual payment. The present appeals by Special leave are filed on behalf of the BMC, against the said judgments of both the Court of Small Causes and the High Court, assailing the amounts of compensation determined for the acquired portions of lands of the respondents, on the basis of the principle of their market value, purporting to be under Sub-section (1) of Section 301 of the BMC Act. </p><p style="text-align: justify;">3. The learned Counsel appearing for the BMC, the common appellant in all the present appeals, contended that the Court of Small Causes, as well as, the High Court had gone wrong in determining the compensation payable to the owner under Sub-section (1) of Section 301 of the BMC Act for his land acquired under Sections 298 and 299 thereof, was its market value, when such compensation to be determined could not have been anything other than the loss which that owner had to sustain as a consequence of such acquisition and the expense which that owner had to incur as a consequence of such acquisition. He also contended that the method of determining the amount of market value of the whole land of the respondent in each appeal including that which was acquired and apportioning that market value to the portion of the acquired land, was indeed, not a method which the Court of Small Causes and the High Court, could have adopted for determining the compensation payable under Sub-section (1) of Section 301 of the BMC Act. On the other hand, learned Counsel who appeared for contesting respondents in the present appeals, sought to support the judgments of the Court of Small Causes and the High Court by which it has been held that the compensation payable to the owners for their portions of lands acquired by the BMC under Sections 298 and 299 thereof cannot be anything but their market value, and when such market value was given as compensation to owners for their acquired lands, there was no warrant for interfering with the same, by this Court. They also sought to obtain support for their contention from the decision of Privy Council in Municipal Council of Colombo v. Kuna Mana Navanna Suna Pana Latchiman Chettiar (1947) App Cas 188</p><p style="text-align: justify;">4. The questions which we have formulated at the outset as those requiring our consideration and answers, in deciding the present appeals, since take within their fold the aforestated rival contentions of learned Counsel for the contesting parties, they could now be considered and answered, in there serial Order.</p><p style="text-align: justify;">5. Re : Question (1) </p><p style="text-align: justify;">Does the provision in Sub-section (1) of Section 301 of the BMC Act specify a principle of determination of compensation payable to the owners of buildings or lands acquired for public streets under Sections 298 and 299 thereof, is the question.</p><p style="text-align: justify;">As the answer to the said question, has to necessarily depend on the content of Sub-section (1) of Section 301 of the BMC Act, it could be reproduced to understand its content, thus : </p><p style="text-align: justify;">301, (1) Compensation shall be paid by the Commissioner to the owner of any building or land acquired for a public street under Section 298 or 299, for any loss which such owner may sustain in consequence of his building or land being so acquired and for any expense incurred by such owner in consequence of the order made by the Commissioner under either of the said sections; provided that any increase or decrease in the value of the remainder of the property of which the building or land so acquired formed part likely to accrue from the set-back to the regular line of the street shall be taken into consideration and allowed for in determining the amount of such compensation.</p><p style="text-align: justify;">6. The said sub-section as could be seen from its content while provides for payment of compensation to the owner for his building or land acquired under Section 298 or Section 299 of the BMC Act, requires that such compensation (could comprise of, loss which such owner may sustain and expense which such owner may incur, as a consequence of acquisition of his building or land. In this context, if it is noted, that what is acquired under Section 298 of the BMC Act, is the portion of land within the regular line of public street, that is, the portion of land occupied by a building fallen down or burnt down or taken down, and that what is acquired under Section 299 of the BMC Act is the portion of land occupied by a building external to the building abutting the public street or a verandah, a step, a platform or other structure within the regular line of public street, the same furnishes the reason as to why the principle of compensation required to be adopted under Sub-section (1) of Section 301 of the BMC Act, for payment of compensation for such acquisition is confined to merely the loss sustained and the expense incurred, as a consequence of such acquisition. Thus, when Sub-section (1) of Section 301 of the BMC Act requires the loss sustained by the owner as a consequence of acquisition and the expense incurred by the owner as a consequence of acquisition, to be made good to such owner by way of compensation, what is found in that sub-section cannot be anything other than the principle of determination of compensation which is deliberately or wantonly specified therein, having regard to the vulnerability of a portion of land or a portion of building being acquired for the public street. This situation, makes us take the view that Sub-section (1) of Section 301 of the BMC Act specifies the appropriate principle of determination of compensation for a building or a land acquired either under Section 298 or Section 299 thereof. Our view that Sub-section (1) of Section 301 of the BMC Act specifies the principle of determination of compensation for building or land acquired under Sections 298 or Section 299 thereof, gives no room for doubting, since it receives, fortification from a Constitution Bench decision of this Court in Municipal Corporation of the City of Ahmedabad and Ors. v. The State of Gujarat and Ors. : [1973]1SCR1 , wherein dealing with the content of the provision in Sub-section (1) of section of the provision in Sub-section (1) of Section 216 of the Bombay Municipal Corporation Act 1949 which is exactly similar to the provision in Sub-section (1) of Section 301 of the BMC Act, it has been held thus:. Since full indemnification in accordance with judicial norms is the goal set by the Act, it is implicit in such a provision that the rules for determination of compensation shall be appropriate to the property acquired and such as will achieve the goal of full indemnity against loss. In other words, the Act provides for compensation to be determined in accordance with judicial principles by the employment of appropriate methods of valuation so that the person who is deprived of property is fully indemnified against the loss. This, by itself, in our opinion, is a specification of a principle for the determination of compensation.</p><p style="text-align: justify;">(emphasis supplied)</p><p style="text-align: justify;">7. Hence, we answer the question in the affirmative and to the effect that Sub-section (1) of Section 301 of the BMC Act, itself, specifies the principle of determination of compensation payable for land or building acquired under either of the Section 298 or 299 thereof.</p><p style="text-align: justify;">8. Re : Question (ii) </p><p style="text-align: justify;">Principle of determination of compensation payable for owners for the portions of their buildings or lands acquired either under Section 298 or Section 299 of the BMC Act, specified under Sub-section (1) of Section 301 of the BMC Act, as could be seen therefrom requires that such compensation shall be confined only to the loss sustained or the expenses incurred, by the owner, as a consequence of acquisition of his building or land lying within the regular line of the public street. If that be so, question of determining the compensation under Sub-section (1) of Section 301 of the BMC Act for acquisition of lands lying within the regular line of public street under either Section 298 or Section 299 thereof, on the basis of their market value, cannot arise. Market value could undoubtedly, be a principle on the basis of which compensation may be required to be determined under certain Statutes, for lands acquired thereunder. For instance, the <a href="/act/51407/land-acquisition-act-1894-complete-act">Land Acquisition Act, 1894</a> provides for payment of compensation for the land acquired thereunder on the basis of market value, that is, the price which a willing vendor might reasonably obtain from a willing purchaser for such land. It may be recalled in this context that in fact Sub-section (1) of Section 301 of the BMC Act, before its amendment by Bombay Act 1 of 1925, also required payment of compensation for lands acquired under Sections 298 and 299 of the BMC Act, on the basis of market value, in that, it read :</p><p style="text-align: justify;">301. (1) Compensation shall be paid by the Commissioner to the owner of any building or land acquired for a public street under Section 298 or 299, for the value of the said land and for any loss, damage or expense sustained by such owner in consequence of the order made by the Commissioner under either of the said sections.</p><p style="text-align: justify;">9. As seen from the said unamended sub-section, compensation was payable to the owner for his land or building acquired for a public street under either of the Sections 298 or 299 of the BMC Act, included the value of the land. But, Section (1) of Section 301 of the BMC Act as it stands amended, even though specifies the principle of compensation payable for land acquired under either of the Sections 298 or 299 of the BMC Act, does not require the payment of compensation to be paid thereunder, to include the value of land. The amended sub-section, therefore, makes it clear that the payment of value, that is, market value, as compensation for the acquired land is, in fact, excluded thereunder. If that be so, to hold that the market value of the acquired land is payable as compensation to the owner under Sub-section (1) of Section 301 of the BMC Act for the acquired lands envisaged thereunder, is to order something to be done which the Legislature required, not to be done. </p><p style="text-align: justify;">10. Indeed the decision of the Privy Council in Municipal Council of Colombo v. Kunamana Navanna Suna Pana Latchiman Chettiar 1947 App Cas 188 relied upon by counsel for respondents to support the view of Court of Small Causes and the Division Bench of the High Court that, that compensation payable under Sub-section (1) of Section 301 of the BMC Act, is the market value of the land acquired under either of the Sections 298 or 299, goes against such view. The Privy Council in that case was concerned with a provision which provided for payment of compensation for a land acquired for a public street according to the value of the land as required by the Statute - the Land Acquisition Ordinance. When the judgment of Supreme Court of Colombo appealed against, indicated that the compensation was ordered to be paid according to the loss sustained by the owner of the land acquired for the public street, instead of ordering compensation, according to the market value of the acquired land, the Privy Council observed thus :.The Supreme Court in valuing the acquired strip as part of the rest of the land of the respondent which is not either actually or nationally in the market, have not ascertained the market value of the acquired strips; they have attempted to ascertain the loss which the respondent had sustained by reason of acquisitioning of the acquired strip. That method finds no warrant in the Ordinance.</p><p style="text-align: justify;">11. Thus, the above decision of the Privy Council, if anything, makes it clear that what is to be paid by way of compensation for a land acquired under a Statute is what is required to be paid thereunder, by way of compensation for the acquired land and not payment of something by way of compensation which is not envisaged under the Statute.</p><p style="text-align: justify;">12. Hence, our answer to the question is that the principle specified in Sub-section (1) of Section 301 of the BMC Act for determination of compensation payable to the owners for their lands or buildings acquired under either of the Section 298 or 299 thereof, does not warrant determination of compensation according to market value of such building or land.</p><p style="text-align: justify;">13. Re : Question (iii) </p><p style="text-align: justify;">Method adoptable for determining the amount of compensation payable to the owners under Sub-section (1) of Section 301 of the BMC Act for land or building acquired under either Section 298 or Section 299 thereof, arises for consideration here. The compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner of the acquired land or building can only be the loss sustained and the expense incurred by the owner because of such acquisition and not the market value of the acquired building or land, as pointed out by us herein-before while considering Question (ii). Therefore, compensation payable under the said sub-section should be the amount which is required to be made good to the owner towards reimbursement of his loss sustained, if any, on account of acquisition and his expense incurred, if any, on account of acquisition. Sometimes there may not be any loss sustained and sometimes there may not be any expense incurred. At other times, there may be both loss sustained and expense incurred by the owner. Therefore, depending upon a given situation, what should be the compensation payable under that sub-section, has to be determined. Moreover, as is required by the proviso to the said sub-section 'any increase or decrease in the value of the remainder of the property of which the building or land so acquired formed part, likely to accrue from the set-back to the regular line of the street shall be taken into consideration and allowed for', in determining the amount of such compensation.</p><p style="text-align: justify;">14. If such amount, is the compensation payable to the owner under the said sub-section, what method should be adopted for determining such amount of compensation is the real question, which needs our answer.</p><p style="text-align: justify;">15. The method which in our considered opinion is the most appropriate for adoption in determining the compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property, having regard to the determinants or indicia specified in that sub-section, is that which should necessarily involve the following exercise : </p><p style="text-align: justify;">(1) Of determining the market value of the whole property or land of the owner before a portion of that property or land was acquired under either Section 298 or Section 299 or the BMC Act. </p><p style="text-align: justify;">(2) Of determining the market value of the remainder property left with the owner after a portion of it got acquired under either Section 298 or Section 299 of the BMC Act. That market value of the remainder property must be that determined taking into consideration the increased value accrued to it or decreased value suffered by it, as a result of improved street formed by acquisition of its portion and acquisition of similar portions of properties of others Whenever the remainder property gets the benefit of improved street formed with acquired portions of lands, it can be presumed in the absence of contrary evidence that there is increase in its value, although the quantum of increase ought to depend on extents or strips of lands acquired for the improvement of the street and importance gained by it.</p><p style="text-align: justify;">(3) If the amount of the market value of the property, as determined under item (2) falls short of the amount of market value of the property as determined in item (1), it is that amount of the short-fall, which could be regarded as the loss to the owner for his acquired portion of the property, the principal component of compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired portion of property or land. </p><p style="text-align: justify;">(4) Expenses incurred by the owner, if any, on account of acquisition of a portion of his property if not already taken into consideration in determining the market value of the remainder property under item (2), then that amount of expenses incurred by the owner should be regarded as the other component of compensation payable to him under Sub-section (1) of Section 301 of the BMC Act.</p><p style="text-align: justify;">(5) The amount of loss in item (3) and the amount of expense in item (4) together constitute the total compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property or land. </p><p style="text-align: justify;">16. How, by adoption of the said method the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act is determinable could be illustrated with reference to a hypothetical case of acquisition of 20 sq. mts. of land out of 100 sq. mts. of land whereby the owner is allowed to retain the remainder land of 80 sq. mts. of land. </p><p style="text-align: justify;">17. Amount of market value to be fetched for 100 sq. mts. of land before acquisition of its portion, is found to be, say Rs. 180 per sq. mt. Such market value would be 100 times of Rs. 180, that is, Rs. 18,000.00. </p><p style="text-align: justify;">18. Amount of market value to be fetched for 80 sq. mts. of remainder land, is found to be, say of Rs. 200 per sq. mt., such market value would be 80 times of Rs. 200, that is, Rs. 16,000.00. </p><p style="text-align: justify;">19. The amount of market value of the entire 100 sq. mts. of land before a portion of it was acquired, minus the amount of market value of the remainder land would furnish the amount of loss sustained by the owner, that is, Rs. 18,000.00 minus Rs. 16,000.00 = Rs. 2,000.00. </p><p style="text-align: justify;">20. The loss so sustained by the owner as a consequence of acquisition of a portion of his land and the amount of expenses, say Rs. 1,000.00 incurred by him because of the acquisition, (such expenses if not already included in determining the market value of the reminder land of 80 sq. mts), together, would be the compensation. That is Rs. 2,000.00 + Rs. 1,000.00 = Rs. 3,000.00. </p><p style="text-align: justify;">21. Therefore, compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired land, would be Rs. 3,000.00. </p><p style="text-align: justify;">22. Hence, our answer to the question is that the method of determination of compensation payable under Section 301 (1) of the BMC Act to the owner for his acquired property or land under either Section 298 or Section 299 thereof, requires the assessment of the loss sustained by the owner as a consequence of acquisition, such loss being the amount of market value of the property or land as a whole, as stood before its acquisition, minus the amount of market value of the remainder property or land and assessment of the expenses incurred by the owner as a consequence of acquisition. The said method has commended itself for our acceptance, since it accords with the principle specified in Sub-section (1) of Section 301 of the BMC Act for determination of compensation payable to the owner of a property or land acquired under either Section 298 or Section 299 thereof. However, what method should be adopted for determining the market value of the whole property of the owner or remainder property of the owner, shall, as it ought to be, depend on the nature of property concerned.</p><p style="text-align: justify;">23. There is, however, another question which requires our consideration and answer. That question concerned the payment of interest on the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property referred to therein. </p><p style="text-align: justify;">24. Sub-section (1) of Section 301 of the BMC Act as it stands does not provide for payment of interest on the amount of compensation payable to the owner for his properties acquired either under Section 298 or Section 299 of the BMC Act. There is no other provision also found in the BMC Act providing for payment of interest on such amount of compensation. The question is, if the statute which provides for acquisition of property and payment of compensation therefor, does not provide for payment of interest on such compensation, does any interest become payable.</p><p style="text-align: justify;">25. It is now settled by three-Judge Bench decision of this Court in Union of India v. Harikrishnan Khosla : 1992(2)SCALE621 that no interest is payable on the compensation payable under the Requisitioning and Acquisitioning of Immovable Property Act, since there is no provision made in that regard in that Act. The ratio of the said decision since forbids payment of interest on the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act, we are constrained to hold that no liability arises for payment of interest on such compensation.</p><p style="text-align: justify;">26. Now coming to facts of the cases which have led to the filing of the present appeals by the BMC, what has been done in the judgments of the Chief Judge of the Court of Small Causes and the High Court appealed against, is to determine the amount of market value, as such, of the acquired portions of the lands of respondents in the appeals and order payment of such amounts of market value as compensation along with 6 per cent interest per annum from the date of taking possession of the land till the date of its payment.</p><p style="text-align: justify;">27. In answering the various questions considered by us herein-before, we have held that the compensation payable under Sub-section (1) of Section 301 of the BMC Act for the properties acquired under either Section 298 or Section 299 thereof cannot be determined on the basis of their market value, as it would go against the principle of determination of compensation specified in that sub-section and that no interest shall be payable on such amount of compensation for delayed payment, as the same is not made payable by any provision in the BMC Act. Hence, the judgment of the Chief Judge of Small Causes Court, as well as, the judgment of the High Court, appealed against in these appeals, directing payment of compensation for the acquired portions of lands, according to their actual market value along with interest thereon @ 6 per cent per annum, become unsustainable and are liable to be set aside by allowing the present appeals. Then, do the cases under present appeals, require to be remanded to the Chief Judge of the Court of Small Causes, Bombay for their disposal in the light of this judgment, is the question, which calls for our consideration.</p><p style="text-align: justify;">28. It was submitted by learned Counsel for the respondents that we should instead of remanding the cases under appeals to the Chief Judge of the Court of Small Causes at Bombay for fresh disposal in accordance with this judgment, as was suggested by us, the amounts of compensation awarded to the respondents in the appeals having regard to the fact that a period of 20 years has elapsed from the year in which the acquisitions concerned were made, and the total amounts awarded, that is, about eleven lakhs, not being a very big amount from the point of the BMC, should be allowed to stand undisturbed. We have given our anxious consideration to the submission. What has been now done by the Court of Small Causes, as well as, the High Court is, to determine the market value of the whole of the land of each of the respondent/s in the appeals, as stood before its portion was acquired, on square yard basis and award out of that amount of compensation, the amount of market value apportionable to the acquired portion of the land, according to its area on square yard basis. If the material, as to what was the total extent of land of the respondent/s in each of the appeals, before a portion of it was acquired, was made available to us, we would have ourselves determined the compensation, according to the method which is already suggested by us for adoption. When such material, is unavailable, we have no option but to remand the cases for disposal by the Chief Judge of the Court of Small Causes at Bombay in the manner which we shall presently indicate. </p><p style="text-align: justify;">29. The market value of the remainder land (land left out after acquisition) of respondent/s in each of the appeals, will have naturally increased, due to the advantage got by it on account of improved road made by acquisition of their several parcels of lands. In the absence of evidence of such increased value, in our view, the facts and circumstances of the present cases warrant granting of an increase in the market value of the remainder land of each of the respondent/s by ten per cent.</p><p style="text-align: justify;">30. Therefore, the Chief Judge, Court of Small Causes must firstly, find out the total market value of the remainder land of each of the respondent/s in the appeals, according to the rate per square yard already fixed for it by the High Court and secondly add to such market value ten per cent increase adverted to. Then, the Chief Judge must also find out, separately, the amount of market value of the whole land of respective respondent/s in each of the appeals again finding out such market value according to the rate per square yard already fixed by the High Court.</p><p style="text-align: justify;">31. The amount of market value of the whole land of the respondent/s in each of the appeals arrived at, as stated, minus the amount of market value of the remainder land of respective respondent/s arrived at, as stated, shall be treated as the loss sustained by each of them, as a consequence of acquisition of their respective portions of land. Such amount of loss, if any, shall alone be the amount, to be ordered to be paid to the concerned respondent/s, as compensation payable to him/them, under Sub-section (1) of Section 301 of the BMC Act, inasmuch as there is no claim or evidence in the cases as to the expenses incurred, by him/them, as a consequence of acquisition, which would have otherwise become payable as a component of compensation under that sub-section. That no interest is payable on the amount of compensation to be ordered to be paid, shall, however, be noted. </p><p style="text-align: justify;">32. In the result, we allow these appeals set aside the judgments of the Chief Judge of Small Causes Court at Bombay and of the High Court of Bombay appealed against, and remit the cases to the Court of the Chief Judge of Small Causes Court at Bombay for deciding them according to the directions contained and indications given in this judgment, after hearing parties or their counsel. However, in the circumstances of these appeals, we make no order as to costs. <p style="text-align: justify;"></p><p style="text-align: justify;">',
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			(int) 38 => 'the BMC Act',
			(int) 39 => 'Section 301',
			(int) 40 => 'Section 298 or Section 299',
			(int) 41 => 'Section 301',
			(int) 42 => 'Section 299',
			(int) 43 => 'Constitution',
			(int) 44 => 'Section 216',
			(int) 45 => 'Section 301',
			(int) 46 => 'the BMC Act',
			(int) 47 => 'Section 301',
			(int) 48 => 'the BMC Act',
			(int) 49 => 'the Section 298',
			(int) 50 => 'Section 298 or Section 299',
			(int) 51 => 'Section 301',
			(int) 52 => 'the BMC Act',
			(int) 53 => 'Section 301',
			(int) 54 => 'the BMC Act',
			(int) 55 => 'Section 298 or Section 299',
			(int) 56 => 'the Land Acquisition Act',
			(int) 57 => 'Section 301',
			(int) 58 => 'the BMC Act',
			(int) 59 => 'the BMC Act',
			(int) 60 => 'Section 298',
			(int) 61 => 'the BMC Act',
			(int) 62 => 'Section 301',
			(int) 63 => 'the BMC Act',
			(int) 64 => 'the BMC Act',
			(int) 65 => 'Section 301',
			(int) 66 => 'the BMC Act',
			(int) 67 => 'Section 301',
			(int) 68 => 'the BMC Act',
			(int) 69 => 'Section 301',
			(int) 70 => 'the BMC Act',
			(int) 71 => 'the Section 298',
			(int) 72 => 'Section 301',
			(int) 73 => 'the BMC Act',
			(int) 74 => 'Section 298 or Section 299',
			(int) 75 => 'Section 301',
			(int) 76 => 'the BMC Act',
			(int) 77 => 'Section 301',
			(int) 78 => 'the BMC Act',
			(int) 79 => 'Section 298 or Section 299',
			(int) 80 => 'the BMC Act',
			(int) 81 => 'Section 298 or Section 299 of the BMC Act',
			(int) 82 => 'Section 301',
			(int) 83 => 'the BMC Act',
			(int) 84 => 'Section 301',
			(int) 85 => 'Section 301',
			(int) 86 => 'the BMC Act',
			(int) 87 => 'Section 301',
			(int) 88 => 'the BMC Act',
			(int) 89 => 'Section 301',
			(int) 90 => 'the BMC Act',
			(int) 91 => 'Section 301',
			(int) 92 => 'the BMC Act',
			(int) 93 => 'Section 298 or Section 299',
			(int) 94 => 'Section 301',
			(int) 95 => 'the BMC Act',
			(int) 96 => 'Section 298 or Section 299',
			(int) 97 => 'Section 301',
			(int) 98 => 'the BMC Act',
			(int) 99 => 'Section 301',
			(int) 100 => 'the BMC Act',
			(int) 101 => 'Section 298 or Section 299',
			(int) 102 => 'the BMC Act',
			(int) 103 => 'the BMC Act',
			(int) 104 => 'the Requisitioning and Acquisitioning of Immovable Property Act',
			(int) 105 => 'Section 301',
			(int) 106 => 'the BMC Act',
			(int) 107 => 'Section 301',
			(int) 108 => 'the BMC Act',
			(int) 109 => 'Section 298 or Section 299',
			(int) 110 => 'the BMC Act',
			(int) 111 => 'Section 301',
			(int) 112 => 'the BMC Act'
		),
		'ORG' => array(
			(int) 0 => 'ORDERN',
			(int) 1 => 'First Appeals Nos',
			(int) 2 => 'the High Court of Judicature',
			(int) 3 => 'the Bombay Municipal Corporation Act',
			(int) 4 => 'Sections 298',
			(int) 5 => 'Sections 298',
			(int) 6 => 'the Bombay Municipal Corporation - '',
			(int) 7 => 'BMC',
			(int) 8 => 'BMC',
			(int) 9 => 'the Court of Small Causes',
			(int) 10 => 'BMC',
			(int) 11 => 'the High Court of Judicature',
			(int) 12 => 'the High Court',
			(int) 13 => 'the Court of Small Causes',
			(int) 14 => 'the High Court',
			(int) 15 => 'Court of Small Causes',
			(int) 16 => 'the High Court',
			(int) 17 => 'BMC',
			(int) 18 => 'the Court of Small Causes',
			(int) 19 => 'the High Court',
			(int) 20 => 'BMC',
			(int) 21 => 'the Court of Small Causes',
			(int) 22 => 'the High Court',
			(int) 23 => 'Sections 298',
			(int) 24 => 'the Court of Small Causes',
			(int) 25 => 'the High Court',
			(int) 26 => 'the Court of Small Causes',
			(int) 27 => 'the High Court',
			(int) 28 => 'BMC',
			(int) 29 => 'Court',
			(int) 30 => 'Privy Council',
			(int) 31 => 'Municipal Council of Colombo',
			(int) 32 => 'Sections 298',
			(int) 33 => 'The State of Gujarat and Ors',
			(int) 34 => 'the Bombay Municipal Corporation Act',
			(int) 35 => 'Sections 298',
			(int) 36 => 'the Sections 298',
			(int) 37 => 'the Sections 298',
			(int) 38 => 'Legislature',
			(int) 39 => 'the Privy Council in Municipal Council of Colombo',
			(int) 40 => 'Court of Small Causes',
			(int) 41 => 'the High Court',
			(int) 42 => 'the Sections 298',
			(int) 43 => 'The Privy Council',
			(int) 44 => 'Supreme Court of Colombo',
			(int) 45 => 'the Privy Council',
			(int) 46 => 'Supreme Court',
			(int) 47 => 'the Privy Council',
			(int) 48 => 'Statute',
			(int) 49 => 'Union of India',
			(int) 50 => 'BMC',
			(int) 51 => 'the Court of Small Causes',
			(int) 52 => 'the High Court',
			(int) 53 => 'Small Causes Court',
			(int) 54 => 'the High Court',
			(int) 55 => 'the Court of Small Causes',
			(int) 56 => 'the Court of Small Causes',
			(int) 57 => 'BMC',
			(int) 58 => 'the Court of Small Causes',
			(int) 59 => 'the High Court',
			(int) 60 => 'the Court of Small Causes',
			(int) 61 => 'Court of Small Causes',
			(int) 62 => 'the High Court',
			(int) 63 => 'Small Causes Court',
			(int) 64 => 'the High Court',
			(int) 65 => 'the Court of the Chief',
			(int) 66 => 'Small Causes Court'
		),
		'GPE' => array(
			(int) 0 => 'Venkatachala',
			(int) 1 => 'Bombay',
			(int) 2 => 'Bombay',
			(int) 3 => 'Bombay',
			(int) 4 => 'Counsel',
			(int) 5 => 'mt.',
			(int) 6 => 'Bombay',
			(int) 7 => 'Bombay',
			(int) 8 => 'Bombay',
			(int) 9 => 'Bombay',
			(int) 10 => 'Bombay',
			(int) 11 => 'Bombay'
		),
		'NORP' => array(
			(int) 0 => 'J.1'
		),
		'ORDINAL' => array(
			(int) 0 => '5th',
			(int) 1 => '6th',
			(int) 2 => '7th',
			(int) 3 => '5th',
			(int) 4 => '6th',
			(int) 5 => '7th',
			(int) 6 => 'firstly',
			(int) 7 => 'secondly'
		),
		'DATE' => array(
			(int) 0 => '1974',
			(int) 1 => '1968',
			(int) 2 => '1888',
			(int) 3 => 'the year 1962',
			(int) 4 => '14th March, 1968',
			(int) 5 => 'August, 1974',
			(int) 6 => '1947',
			(int) 7 => '1949',
			(int) 8 => '1894',
			(int) 9 => '18,000.00. 18',
			(int) 10 => '2,000.00 + Rs',
			(int) 11 => '21',
			(int) 12 => '20 years',
			(int) 13 => 'the year',
			(int) 14 => '32'
		),
		'CARDINAL' => array(
			(int) 0 => '386-395',
			(int) 1 => 'three',
			(int) 2 => '1',
			(int) 3 => '299',
			(int) 4 => '1',
			(int) 5 => '299',
			(int) 6 => '1',
			(int) 7 => '2',
			(int) 8 => '2',
			(int) 9 => '1',
			(int) 10 => '1',
			(int) 11 => '80',
			(int) 12 => '450',
			(int) 13 => '640',
			(int) 14 => 'one',
			(int) 15 => '1',
			(int) 16 => '1',
			(int) 17 => '1',
			(int) 18 => '3',
			(int) 19 => '1',
			(int) 20 => '299',
			(int) 21 => '1',
			(int) 22 => '298',
			(int) 23 => '299',
			(int) 24 => '1',
			(int) 25 => '1',
			(int) 26 => '299',
			(int) 27 => '1',
			(int) 28 => '301',
			(int) 29 => '1',
			(int) 30 => '299',
			(int) 31 => '1',
			(int) 32 => '1',
			(int) 33 => '1',
			(int) 34 => '1',
			(int) 35 => '298',
			(int) 36 => '1973]1SCR1',
			(int) 37 => '1',
			(int) 38 => '1',
			(int) 39 => '1',
			(int) 40 => '1',
			(int) 41 => '299',
			(int) 42 => '1',
			(int) 43 => '1',
			(int) 44 => '1',
			(int) 45 => '299',
			(int) 46 => '301',
			(int) 47 => '1',
			(int) 48 => '299',
			(int) 49 => '299',
			(int) 50 => '1',
			(int) 51 => '299',
			(int) 52 => '1',
			(int) 53 => '10',
			(int) 54 => '1',
			(int) 55 => '299',
			(int) 56 => '1',
			(int) 57 => '299',
			(int) 58 => '1',
			(int) 59 => '1',
			(int) 60 => '1',
			(int) 61 => '1',
			(int) 62 => '2',
			(int) 63 => '2',
			(int) 64 => '1',
			(int) 65 => '1',
			(int) 66 => '4',
			(int) 67 => '2',
			(int) 68 => '1',
			(int) 69 => '3',
			(int) 70 => '4',
			(int) 71 => '1',
			(int) 72 => '16',
			(int) 73 => '1',
			(int) 74 => '20',
			(int) 75 => '100',
			(int) 76 => '80',
			(int) 77 => '17',
			(int) 78 => '100',
			(int) 79 => '180',
			(int) 80 => '100',
			(int) 81 => '180',
			(int) 82 => '80',
			(int) 83 => '200',
			(int) 84 => '80',
			(int) 85 => '200',
			(int) 86 => '16,000.00',
			(int) 87 => '19',
			(int) 88 => '100',
			(int) 89 => '18,000.00',
			(int) 90 => '16,000.00',
			(int) 91 => '2,000.00',
			(int) 92 => '20',
			(int) 93 => '1,000.00',
			(int) 94 => '80',
			(int) 95 => '1,000.00',
			(int) 96 => '3,000.00',
			(int) 97 => '1',
			(int) 98 => '3,000.00',
			(int) 99 => '22',
			(int) 100 => '1',
			(int) 101 => '1',
			(int) 102 => '1',
			(int) 103 => '24',
			(int) 104 => '1',
			(int) 105 => 'three',
			(int) 106 => '1992(2)SCALE621',
			(int) 107 => '1',
			(int) 108 => '1',
			(int) 109 => 'about eleven',
			(int) 110 => '29',
			(int) 111 => 'ten',
			(int) 112 => '1'
		),
		'FAC' => array(
			(int) 0 => 'Gowalia Tank Road',
			(int) 1 => 'the BMC Act.(5'
		),
		'PERSON' => array(
			(int) 0 => 'Bhulabhai Desai Road',
			(int) 1 => 'Navanna Suna Pana Latchiman Chettiar',
			(int) 2 => 'App Cas 1884',
			(int) 3 => 'Counsel',
			(int) 4 => 'Statutes',
			(int) 5 => 'Kunamana Navanna Suna',
			(int) 6 => 'App Cas 188',
			(int) 7 => 'Question',
			(int) 8 => 'compensation.14',
			(int) 9 => 'Bench',
			(int) 10 => 'Harikrishnan Khosla',
			(int) 11 => 'Counsel'
		),
		'PERCENT' => array(
			(int) 0 => '6%'
		),
		'PRODUCT' => array(
			(int) 0 => 'Bombay Act 1 of'
		),
		'MONEY' => array(
			(int) 0 => '6 per cent',
			(int) 1 => '6 per cent',
			(int) 2 => 'ten per cent'
		)
	),
	'desc' => array(
		'Judgement' => array(
			'id' => '659619',
			'acts' => 'Bombay Municipal Corporation Act, 1888 - Sections 298, 299, 301(1) and 504; <a href="/act/51407/land-acquisition-act-1894-complete-act">Land Acquisition Act, 1894</a>; Bombay Municipal Corporation Act, 1949 - Sections 216; Bombay Act, 1925',
			'appealno' => 'Civil Appeals Nos. 1278-1287 of 1977.',
			'appellant' => 'Municipal Corporation of Greater Bombay and Others',
			'authreffered' => '',
			'casename' => 'Municipal Corporation of Greater Bombay and Others Vs. Central Bank of India and Another Etc. Etc.',
			'casenote' => 'Property - compensation - Sections 298, 299 and 301 of Bombay Municipal Corporation (BMC) Act, 1888 - what method could be adopted for determining amount of compensation payable under Section 301 (1) - Section 301 (1) of Act requires loss sustained by owner as consequences of acquisition and expense incurred by owner as consequence of acquisition to be made good to such owner by way of compensation - Section 301 (1) of Act specifies appropriate principle of determination of compensation for building or land acquired under Sections 298 and 299 - matter remitted to Small Cause Court for deciding according to directions after hearing parties. - Subordinate/Delegated legislation:[D.K. Jain & R.M. Lodha, JJ] Banks -Voluntary Retirement Scheme, 2000 (VRS 2000) - Held,  The amendment in Regulation 28, as is reflected from Communication dated 5.9.2000, was intended to cover employees who had rendered 15 years service but not completed 20 years service. It was not intended to cover optees who had already completed 20 years service as the provisions contained in Regulation 29 met that contingency. Even if it be assumed that by insertion of Proviso in Regulation 28 (in the year 2002 with retrospective effect from 1.9.2000), all classes of employees under VRS 2000 were intended to be covered, such amendment in Regulation 28, needs to be harmonised with Regulation 29, particularly Regulation 29(5) which provides for addition of qualifying service by five years. This would be in tune and consonance with the explanatory note appended to the amendment in Regulation 28 wherein it is stated that the amendment with retrospective effect would not adversely affect any employee or  officer of the respondent Bank. That would also meet the test of fairness. Weightage of five years under Regulation 29(5) is applicable to the optees having service of 20 years or more. Merely because the employees who have completed 15 years of service but not completed 20 years of service are not entitled to weightage of five years for qualifying service under Regulation 29(5), the employees who have completed 20 years of service or more cannot be denied such benefit. It is also not correct to say that by taking recourse to Regulation 29, the amendment to Regulation 28 is rendered otiose.

LABOUR & SERVICES Pension: [D.K. Jain & R.M. Lodha, JJ] Banks -Employees Pension Regulations, 1995-Regulations 29(5) and 28 Proviso (added in 2002 retrospectively from 1.9.2000) - Benefit of five years additional qualifying service under Regulation 29(5) - Availability of benefit to employees taking retirement under Voluntary Retirement Scheme, 2000 (VRS 2000) on completion of 20 years service - Held, The benefit is available notwithstanding that such employees had received ex gratia payments under VRS 2000. Further Regulation 28 which was amended subsequently by adding a proviso retrospectively, could not be applied to such employees. 

Pension: [D.K. Jain & R.M. Lodha,JJ] Bona fide delay in payment - Inadmissibility of interest -  Delay due to litigation wherein genuine issue of law needed to be resolved in view of difference of opinion between High Courts. Besides, stand taken by appellant Banks was also not frivolous though ultimately rejected by Supreme Court. Grant of interest, under these circumstances is not warranted. 

Pension: [D.K. Jain & R.M. Lodha,JJ] Scope, object and applicability of Banks Employees Pension Regulations, 1995- Regulation 28, Proviso (added in 2002 retrospectively from 1.9.2000) and Regulation 29(5) - Held, The purpose of the Proviso is to confer benefit of pension to those employees who sought voluntary retirement after completion of 15 years but before completion of 20 years of service. Proviso cannot be interpreted to deprive benefit of five years additional qualifying service to those employees who took retirement after 20 years of service under VRS 2000.

LABOUR & SERVICES Voluntary Retirement Scheme: [D.K. Jain & R.M. Lodha,JJ] Banks -Voluntary Retirement Scheme, 2000 (VRS 2000) - The appellant public sector banks framed a scheme known as Voluntary Retirement Scheme, 2000 (VRS 2000) under which all permanent employees of bank who had put in minimum 15 years of service or completed 40 years of age were eligible to seek voluntary retirement. The Scheme was framed for optimizing the staff strength by shedding excess employees. VRS 2000 provided that an employee whose application for voluntary retirement was accepted, would inter alia be entitled to pension in terms of the Employees Pension Regulations, 1995, in case of those who have opted for pension and have put in 20 completed years of service in the bank. Besides, there was also a parallel provision in Regulation 29 of the Pension Regulations, under which an employee with 20 years qualifying service could take voluntary retirement. Such an employee was entitled to benefit of five years additional qualifying service under Regulation 29(5). The issue involved was, whether an employee with 20 years service, who had taken retirement under VRS 2000 (and not under Regulation 29) was entitled to benefit of five years additional qualifying service as provided in Regulation 29(5) of the Pension Regulations. Contention of appellant Banks was that benefit of five years additional qualifying service was admissible only to an employee who took voluntary retirement under Regulation 29, and not to an employee who took retirement under VRS 2000. The employees however relied on Ministry of Finance Communication dated 5.9.2000 (reproduced in para 38 of the judgment) to support their contention that proviso was added to Regulation 28 for the purpose that an employee who takes VRS on completing 15 years of service but before 20 years service, also gets pension. Held,  The employees who had completed 20 years of service and offered voluntary retirement under VRS 2000 are entitled to addition of five years of notional service in calculating the length of service for the purposes of that Scheme as per Regulation 29(5) of the Pension regulations. If the intention was not to give pension as provided in Regulation 29 and particularly sub-regulation (5) thereof, the banks could have said so in the Scheme itself. Much though had gone into formulation of VRS 2000 and it came to be framed after great deliberations. The only provision that could have been in the mind while providing for pension as per the Pension Regulations was Regulation 29. The employees too had the benefit of Regulation 29(5) in mind when they offered for voluntary retirement as Regulation 28, as was existing at that time, was not applicable at all.  VRS 2000 was an attractive package for the employees as they were getting special benefits in the form of ex gratia payments and in addition thereto, inter alia, pension under the Pension Regulations which also provided for weightage of five years of qualifying service for the purposes of pension to the employees who had completed 20 years service. It would be unreasonable if amended Regulation 28 is made applicable, which had not seen the light of the day and which was not the intention of the banks when the Scheme was framed. The banks are public sector banks and are State within the meaning of Article 12 of the Constitution. Their action even in contractual matters has to be reasonable, lest, it must attract the wrath or Article 14 of the Constitution.     Any interpretation of the terms of VRS 2000, although contractual in nature, must meet the test of fairness. It has to be construed in a manner that avoids arbitrariness and unreasonableness on the part of public sector banks which brought out VRS 2000 with an objective of rightsizing their manpower. The Scheme was oriented to lure the employees to go in for voluntary retirement. In this background, the consideration that was to pass between the parties assumes significance and a harmonious construction to the Scheme and the Pension Regulations, therefore, has to be given. Contention of the appellant Banks were rejected and it was declared that the employees who took retirement under the VRS 2000 are entitled to benefit of five years additional qualifying service under Regulation 29(5).

Voluntary Retirement Scheme: [D.K. Jain & R.M. Lodha,JJ] Banks-Voluntary Retirement Scheme, 2000 (VRS 2000) - Effect of Employees Pension Regulations, 1995 having been made part of VRS 2000  Held, The precise effect of Pension Regulations, for the purposes of pension, having been made part f the Scheme, is that the Pension Regulations, to the extent, these are applicable, must be read into the Scheme. Interpretation clause of VRS 2000 states that the words and expressions used in the Scheme but not defined, and defined in the rules/regulations shall have the same meaning respectively assigned to them under the rules/regulations. The Scheme does not define the expression retirement or voluntary retirement.  Therefore the definition of retirement given in Regulation 2(y) whereunder voluntary retirement under Regulation 29 is considered to be retirement, has to be taken into consideration. Regulation 29 uses the expression, voluntary retirement under these Regulations. For the purposes of the Scheme, it has to be understood to mean with necessary changes in points of details Section 23 of the Contract Act, 1872 has no application to the present fact situation. It cannot be accepted that VRS 2000 did not envisage grant of pension benefits under Regulation 29(5) to the optees of 20 years service along with payment of ex-gratia. 

INDIAN EVIDENCE ACT, 1872 

Section 115; [D.K. Jain & R.M. Lodha, JJ] Estoppel - Held, Bank employees who had taken retirement under the Voluntary Retirement Scheme, 2000 (VRS 2000) and claimed benefit of additional qualifying service under Employees Pension Regulations, 1995, were not resiling from VRS 2000, rather were enforcing the Scheme. Question of estoppel therefore does not arise.  -  3. The learned Counsel appearing for the BMC, the common appellant in all the present appeals, contended that the Court of Small Causes, as well as, the High Court had gone wrong in determining the compensation payable to the owner under Sub-section (1) of Section 301 of the BMC Act for his land acquired under Sections 298 and 299 thereof, was its market value, when such compensation to be determined could not have been anything other than the loss which that owner had to sustain as a consequence of such acquisition and the expense which that owner had to incur as a consequence of such acquisition. Thus, when Sub-section (1) of Section 301 of the BMC Act requires the loss sustained by the owner as a consequence of acquisition and the expense incurred by the owner as a consequence of acquisition, to be made good to such owner by way of compensation, what is found in that sub-section cannot be anything other than the principle of determination of compensation which is deliberately or wantonly specified therein, having regard to the vulnerability of a portion of land or a portion of building being acquired for the public street. The compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner of the acquired land or building can only be the loss sustained and the expense incurred by the owner because of such acquisition and not the market value of the acquired building or land, as pointed out by us herein-before while considering Question (ii). Therefore, compensation payable under the said sub-section should be the amount which is required to be made good to the owner towards reimbursement of his loss sustained, if any, on account of acquisition and his expense incurred, if any, on account of acquisition. Hence, the judgment of the Chief Judge of Small Causes Court, as well as, the judgment of the High Court, appealed against in these appeals, directing payment of compensation for the acquired portions of lands, according to their actual market value along with interest thereon @6 per cent per annum, become unsustainable and are liable to be set aside by allowing the present appeals. What has been now done by the Court of Small Causes, as well as, the High Court is, to determine the market value of the whole of the land of each of the respondent/s in the appeals, as stood before its portion was acquired, on square yard basis and award out of that amount of compensation, the amount of market value apportionable to the acquired portion of the land, according to its area on square yard basis.',
			'caseanalysis' => null,
			'casesref' => 'Union of India v. Harikrishnan Khosla;',
			'citingcases' => '
Municipal Council of Colombo v. Kuna Mana Navanna Suna Pana Latchiman 
Chettiar 								Mentioned

Municipal Corporation of the City of Ahmedabad and Ors. v. The 
State of Gujarat and Ors. 						Discussed

Municipal Council of Colombo v. Kunamana Navanna Suna Pana Latchiman 
Chettiar 								Discussed

Union of India v. Harikrishnan Khosla 					Dissented

',
			'counselplain' => ' V.A. Bobale and;D.N. Mishra&lt; Adv',
			'counseldef' => ' R.F. Nariman, ; R.B. Hathikhanawala, ; D.B. Moos For the Respo',
			'court' => 'Supreme Court of India',
			'court_type' => 'SC',
			'decidedon' => '1994-05-02',
			'deposition' => '',
			'favorof' => null,
			'findings' => null,
			'judge' => ' K. Ramaswamy and; N. Venkatachala, JJ.',
			'judgement' => 'ORDER<p style="text-align: justify;">N. Venkatachala, J.</p><p style="text-align: justify;">1. These appeals by special leave, directed against the common judgment dated 5th, 6th and 7th August, 1974 rendered in First Appeals Nos. 386-395 of 1968 by the High Court of Judicature at Bombay, are required to be decided by us by considering and answering three important questions:</p><p style="text-align: justify;">(i) Does the provision in Sub-section (1) of Section 301 of the Bombay Municipal Corporation Act, 1888 - 'the BMC Act' specify a principle of determination of compensation payable to the owners of the buildings or lands acquired for a public street under Sections 298 and 299 thereof?</p><p style="text-align: justify;"> (ii) Does the principle specified in Sub-section (1) of Section 301 of the BMC Act, for determination of compensation payable to the owners for their buildings or lands acquired under Sections 298 and 299 thereof, warrant determination of such compensation according to the market value of such acquired buildings or lands </p><p style="text-align: justify;">(iii) What method could be adopted for determining the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act? </p><p style="text-align: justify;">2. The salient facts which have let to the filing of the present appeals lie in a narrow compass : Gowalia Tank Road and Bhulabhai Desai Road lying within the area of the Bombay Municipal Corporation - 'the BMC' are public streets envisaged under the BMC Act. In the year 1962, the BMC which resolved to improve the said public streets by widening them, acquired out of the lands of respondents in these appeals, certain portions which fell within the regular line of the public streets and took their possession, as provided for in Sub-section (2) of Section 298 and Sub-section (1) of Section 299 of the BMC Act. The Commissioner who was liable under Sub-section (1) of Section 301 of the BMC Act, to pay compensation to the respondents in these appeals for their acquired portions of lands, offered to pay them compensation at an uniform rate of Rs. 80 per square yard of land. But, the respondents, who disputed the adequacy of the said compensation offered to be paid to them, filed applications before the Chief Judge of the Court of Small Causes, Bombay, praying for grant of higher compensation for their acquired portions of lands, by taking recourse to the provision in Section 504 of the BMC Act. The Chief Judge, who entertained those applications, with the consent of parties, clubbed all the said applications, recorded common evidence thereon and decided them by his common judgment dated 14th March, 1968. Under that common judgment, the compensation made payable to the respondents in these appeals - the owners, for their acquired portions of lands, was their market value worked out at a rate ranging from Rs. 450 per sq. yard to Rs. 640 per sq. yard. The BMC assailed that common judgment of the learned Chief Judge, as granting excessive compensation, by filing appeals in the High Court of Judicature at Bombay. A Division Bench of the High Court, which heard those appeals, by its common judgment dated the 5th, the 6th and the 7th August, 1974, while allowed one of them partly by reducing the compensation in some measure, dismissed the rest. According to the Chief Judge of the Court of Small Causes, and the Division Bench of the High Court, what was payable by way of compensation under Sub-section (1) of Section 301 of the BMC Act to the owners, for the portions of their lands acquired under either Section 298 or Section 299 thereof, was the market value of such portions and, therefore, the market value obtainable by the owners for their respective entire lands had to be apportioned between the uncured portion of the land and the acquired portion of the land and it was that much of the market value apportionable to acquired land, which was liable to be paid to the owner as compensation for his acquired land. Consequently, both the Chief Judge of Court of Small Causes and the Division Bench of the High Court determined the market value of the entire land of respondent/s concerned in each appeal, of which his/their acquired portion of land formed part and apportioned to such acquired portion of land out of the market value of the entire land so determined, according to the ratio of the area worked out on squared yard basis. The market value of the acquired portion of land so determined was, in fact, treated as the loss sustained by the respondent-owner concerned and the Commissioner was directed to pay the same to him/them as compensation required to be paid under Sub-section (1) of Section 301 of the BMC Act for his/their acquired land. For the unpaid amount of such compensation, interest at 6% per annum was also ordered to be paid from the date of taking possession of the land till its actual payment. The present appeals by Special leave are filed on behalf of the BMC, against the said judgments of both the Court of Small Causes and the High Court, assailing the amounts of compensation determined for the acquired portions of lands of the respondents, on the basis of the principle of their market value, purporting to be under Sub-section (1) of Section 301 of the BMC Act. </p><p style="text-align: justify;">3. The learned Counsel appearing for the BMC, the common appellant in all the present appeals, contended that the Court of Small Causes, as well as, the High Court had gone wrong in determining the compensation payable to the owner under Sub-section (1) of Section 301 of the BMC Act for his land acquired under Sections 298 and 299 thereof, was its market value, when such compensation to be determined could not have been anything other than the loss which that owner had to sustain as a consequence of such acquisition and the expense which that owner had to incur as a consequence of such acquisition. He also contended that the method of determining the amount of market value of the whole land of the respondent in each appeal including that which was acquired and apportioning that market value to the portion of the acquired land, was indeed, not a method which the Court of Small Causes and the High Court, could have adopted for determining the compensation payable under Sub-section (1) of Section 301 of the BMC Act. On the other hand, learned Counsel who appeared for contesting respondents in the present appeals, sought to support the judgments of the Court of Small Causes and the High Court by which it has been held that the compensation payable to the owners for their portions of lands acquired by the BMC under Sections 298 and 299 thereof cannot be anything but their market value, and when such market value was given as compensation to owners for their acquired lands, there was no warrant for interfering with the same, by this Court. They also sought to obtain support for their contention from the decision of Privy Council in Municipal Council of Colombo v. Kuna Mana Navanna Suna Pana Latchiman Chettiar (1947) App Cas 188</p><p style="text-align: justify;">4. The questions which we have formulated at the outset as those requiring our consideration and answers, in deciding the present appeals, since take within their fold the aforestated rival contentions of learned Counsel for the contesting parties, they could now be considered and answered, in there serial Order.</p><p style="text-align: justify;">5. Re : Question (1) </p><p style="text-align: justify;">Does the provision in Sub-section (1) of Section 301 of the BMC Act specify a principle of determination of compensation payable to the owners of buildings or lands acquired for public streets under Sections 298 and 299 thereof, is the question.</p><p style="text-align: justify;">As the answer to the said question, has to necessarily depend on the content of Sub-section (1) of Section 301 of the BMC Act, it could be reproduced to understand its content, thus : </p><p style="text-align: justify;">301, (1) Compensation shall be paid by the Commissioner to the owner of any building or land acquired for a public street under Section 298 or 299, for any loss which such owner may sustain in consequence of his building or land being so acquired and for any expense incurred by such owner in consequence of the order made by the Commissioner under either of the said sections; provided that any increase or decrease in the value of the remainder of the property of which the building or land so acquired formed part likely to accrue from the set-back to the regular line of the street shall be taken into consideration and allowed for in determining the amount of such compensation.</p><p style="text-align: justify;">6. The said sub-section as could be seen from its content while provides for payment of compensation to the owner for his building or land acquired under Section 298 or Section 299 of the BMC Act, requires that such compensation (could comprise of, loss which such owner may sustain and expense which such owner may incur, as a consequence of acquisition of his building or land. In this context, if it is noted, that what is acquired under Section 298 of the BMC Act, is the portion of land within the regular line of public street, that is, the portion of land occupied by a building fallen down or burnt down or taken down, and that what is acquired under Section 299 of the BMC Act is the portion of land occupied by a building external to the building abutting the public street or a verandah, a step, a platform or other structure within the regular line of public street, the same furnishes the reason as to why the principle of compensation required to be adopted under Sub-section (1) of Section 301 of the BMC Act, for payment of compensation for such acquisition is confined to merely the loss sustained and the expense incurred, as a consequence of such acquisition. Thus, when Sub-section (1) of Section 301 of the BMC Act requires the loss sustained by the owner as a consequence of acquisition and the expense incurred by the owner as a consequence of acquisition, to be made good to such owner by way of compensation, what is found in that sub-section cannot be anything other than the principle of determination of compensation which is deliberately or wantonly specified therein, having regard to the vulnerability of a portion of land or a portion of building being acquired for the public street. This situation, makes us take the view that Sub-section (1) of Section 301 of the BMC Act specifies the appropriate principle of determination of compensation for a building or a land acquired either under Section 298 or Section 299 thereof. Our view that Sub-section (1) of Section 301 of the BMC Act specifies the principle of determination of compensation for building or land acquired under Sections 298 or Section 299 thereof, gives no room for doubting, since it receives, fortification from a Constitution Bench decision of this Court in Municipal Corporation of the City of Ahmedabad and Ors. v. The State of Gujarat and Ors. : [1973]1SCR1 , wherein dealing with the content of the provision in Sub-section (1) of section of the provision in Sub-section (1) of Section 216 of the Bombay Municipal Corporation Act 1949 which is exactly similar to the provision in Sub-section (1) of Section 301 of the BMC Act, it has been held thus:. Since full indemnification in accordance with judicial norms is the goal set by the Act, it is implicit in such a provision that the rules for determination of compensation shall be appropriate to the property acquired and such as will achieve the goal of full indemnity against loss. In other words, the Act provides for compensation to be determined in accordance with judicial principles by the employment of appropriate methods of valuation so that the person who is deprived of property is fully indemnified against the loss. This, by itself, in our opinion, is a specification of a principle for the determination of compensation.</p><p style="text-align: justify;">(emphasis supplied)</p><p style="text-align: justify;">7. Hence, we answer the question in the affirmative and to the effect that Sub-section (1) of Section 301 of the BMC Act, itself, specifies the principle of determination of compensation payable for land or building acquired under either of the Section 298 or 299 thereof.</p><p style="text-align: justify;">8. Re : Question (ii) </p><p style="text-align: justify;">Principle of determination of compensation payable for owners for the portions of their buildings or lands acquired either under Section 298 or Section 299 of the BMC Act, specified under Sub-section (1) of Section 301 of the BMC Act, as could be seen therefrom requires that such compensation shall be confined only to the loss sustained or the expenses incurred, by the owner, as a consequence of acquisition of his building or land lying within the regular line of the public street. If that be so, question of determining the compensation under Sub-section (1) of Section 301 of the BMC Act for acquisition of lands lying within the regular line of public street under either Section 298 or Section 299 thereof, on the basis of their market value, cannot arise. Market value could undoubtedly, be a principle on the basis of which compensation may be required to be determined under certain Statutes, for lands acquired thereunder. For instance, the <a href="/act/51407/land-acquisition-act-1894-complete-act">Land Acquisition Act, 1894</a> provides for payment of compensation for the land acquired thereunder on the basis of market value, that is, the price which a willing vendor might reasonably obtain from a willing purchaser for such land. It may be recalled in this context that in fact Sub-section (1) of Section 301 of the BMC Act, before its amendment by Bombay Act 1 of 1925, also required payment of compensation for lands acquired under Sections 298 and 299 of the BMC Act, on the basis of market value, in that, it read :</p><p style="text-align: justify;">301. (1) Compensation shall be paid by the Commissioner to the owner of any building or land acquired for a public street under Section 298 or 299, for the value of the said land and for any loss, damage or expense sustained by such owner in consequence of the order made by the Commissioner under either of the said sections.</p><p style="text-align: justify;">9. As seen from the said unamended sub-section, compensation was payable to the owner for his land or building acquired for a public street under either of the Sections 298 or 299 of the BMC Act, included the value of the land. But, Section (1) of Section 301 of the BMC Act as it stands amended, even though specifies the principle of compensation payable for land acquired under either of the Sections 298 or 299 of the BMC Act, does not require the payment of compensation to be paid thereunder, to include the value of land. The amended sub-section, therefore, makes it clear that the payment of value, that is, market value, as compensation for the acquired land is, in fact, excluded thereunder. If that be so, to hold that the market value of the acquired land is payable as compensation to the owner under Sub-section (1) of Section 301 of the BMC Act for the acquired lands envisaged thereunder, is to order something to be done which the Legislature required, not to be done. </p><p style="text-align: justify;">10. Indeed the decision of the Privy Council in Municipal Council of Colombo v. Kunamana Navanna Suna Pana Latchiman Chettiar 1947 App Cas 188 relied upon by counsel for respondents to support the view of Court of Small Causes and the Division Bench of the High Court that, that compensation payable under Sub-section (1) of Section 301 of the BMC Act, is the market value of the land acquired under either of the Sections 298 or 299, goes against such view. The Privy Council in that case was concerned with a provision which provided for payment of compensation for a land acquired for a public street according to the value of the land as required by the Statute - the Land Acquisition Ordinance. When the judgment of Supreme Court of Colombo appealed against, indicated that the compensation was ordered to be paid according to the loss sustained by the owner of the land acquired for the public street, instead of ordering compensation, according to the market value of the acquired land, the Privy Council observed thus :.The Supreme Court in valuing the acquired strip as part of the rest of the land of the respondent which is not either actually or nationally in the market, have not ascertained the market value of the acquired strips; they have attempted to ascertain the loss which the respondent had sustained by reason of acquisitioning of the acquired strip. That method finds no warrant in the Ordinance.</p><p style="text-align: justify;">11. Thus, the above decision of the Privy Council, if anything, makes it clear that what is to be paid by way of compensation for a land acquired under a Statute is what is required to be paid thereunder, by way of compensation for the acquired land and not payment of something by way of compensation which is not envisaged under the Statute.</p><p style="text-align: justify;">12. Hence, our answer to the question is that the principle specified in Sub-section (1) of Section 301 of the BMC Act for determination of compensation payable to the owners for their lands or buildings acquired under either of the Section 298 or 299 thereof, does not warrant determination of compensation according to market value of such building or land.</p><p style="text-align: justify;">13. Re : Question (iii) </p><p style="text-align: justify;">Method adoptable for determining the amount of compensation payable to the owners under Sub-section (1) of Section 301 of the BMC Act for land or building acquired under either Section 298 or Section 299 thereof, arises for consideration here. The compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner of the acquired land or building can only be the loss sustained and the expense incurred by the owner because of such acquisition and not the market value of the acquired building or land, as pointed out by us herein-before while considering Question (ii). Therefore, compensation payable under the said sub-section should be the amount which is required to be made good to the owner towards reimbursement of his loss sustained, if any, on account of acquisition and his expense incurred, if any, on account of acquisition. Sometimes there may not be any loss sustained and sometimes there may not be any expense incurred. At other times, there may be both loss sustained and expense incurred by the owner. Therefore, depending upon a given situation, what should be the compensation payable under that sub-section, has to be determined. Moreover, as is required by the proviso to the said sub-section 'any increase or decrease in the value of the remainder of the property of which the building or land so acquired formed part, likely to accrue from the set-back to the regular line of the street shall be taken into consideration and allowed for', in determining the amount of such compensation.</p><p style="text-align: justify;">14. If such amount, is the compensation payable to the owner under the said sub-section, what method should be adopted for determining such amount of compensation is the real question, which needs our answer.</p><p style="text-align: justify;">15. The method which in our considered opinion is the most appropriate for adoption in determining the compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property, having regard to the determinants or indicia specified in that sub-section, is that which should necessarily involve the following exercise : </p><p style="text-align: justify;">(1) Of determining the market value of the whole property or land of the owner before a portion of that property or land was acquired under either Section 298 or Section 299 or the BMC Act. </p><p style="text-align: justify;">(2) Of determining the market value of the remainder property left with the owner after a portion of it got acquired under either Section 298 or Section 299 of the BMC Act. That market value of the remainder property must be that determined taking into consideration the increased value accrued to it or decreased value suffered by it, as a result of improved street formed by acquisition of its portion and acquisition of similar portions of properties of others Whenever the remainder property gets the benefit of improved street formed with acquired portions of lands, it can be presumed in the absence of contrary evidence that there is increase in its value, although the quantum of increase ought to depend on extents or strips of lands acquired for the improvement of the street and importance gained by it.</p><p style="text-align: justify;">(3) If the amount of the market value of the property, as determined under item (2) falls short of the amount of market value of the property as determined in item (1), it is that amount of the short-fall, which could be regarded as the loss to the owner for his acquired portion of the property, the principal component of compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired portion of property or land. </p><p style="text-align: justify;">(4) Expenses incurred by the owner, if any, on account of acquisition of a portion of his property if not already taken into consideration in determining the market value of the remainder property under item (2), then that amount of expenses incurred by the owner should be regarded as the other component of compensation payable to him under Sub-section (1) of Section 301 of the BMC Act.</p><p style="text-align: justify;">(5) The amount of loss in item (3) and the amount of expense in item (4) together constitute the total compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property or land. </p><p style="text-align: justify;">16. How, by adoption of the said method the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act is determinable could be illustrated with reference to a hypothetical case of acquisition of 20 sq. mts. of land out of 100 sq. mts. of land whereby the owner is allowed to retain the remainder land of 80 sq. mts. of land. </p><p style="text-align: justify;">17. Amount of market value to be fetched for 100 sq. mts. of land before acquisition of its portion, is found to be, say Rs. 180 per sq. mt. Such market value would be 100 times of Rs. 180, that is, Rs. 18,000.00. </p><p style="text-align: justify;">18. Amount of market value to be fetched for 80 sq. mts. of remainder land, is found to be, say of Rs. 200 per sq. mt., such market value would be 80 times of Rs. 200, that is, Rs. 16,000.00. </p><p style="text-align: justify;">19. The amount of market value of the entire 100 sq. mts. of land before a portion of it was acquired, minus the amount of market value of the remainder land would furnish the amount of loss sustained by the owner, that is, Rs. 18,000.00 minus Rs. 16,000.00 = Rs. 2,000.00. </p><p style="text-align: justify;">20. The loss so sustained by the owner as a consequence of acquisition of a portion of his land and the amount of expenses, say Rs. 1,000.00 incurred by him because of the acquisition, (such expenses if not already included in determining the market value of the reminder land of 80 sq. mts), together, would be the compensation. That is Rs. 2,000.00 + Rs. 1,000.00 = Rs. 3,000.00. </p><p style="text-align: justify;">21. Therefore, compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired land, would be Rs. 3,000.00. </p><p style="text-align: justify;">22. Hence, our answer to the question is that the method of determination of compensation payable under Section 301 (1) of the BMC Act to the owner for his acquired property or land under either Section 298 or Section 299 thereof, requires the assessment of the loss sustained by the owner as a consequence of acquisition, such loss being the amount of market value of the property or land as a whole, as stood before its acquisition, minus the amount of market value of the remainder property or land and assessment of the expenses incurred by the owner as a consequence of acquisition. The said method has commended itself for our acceptance, since it accords with the principle specified in Sub-section (1) of Section 301 of the BMC Act for determination of compensation payable to the owner of a property or land acquired under either Section 298 or Section 299 thereof. However, what method should be adopted for determining the market value of the whole property of the owner or remainder property of the owner, shall, as it ought to be, depend on the nature of property concerned.</p><p style="text-align: justify;">23. There is, however, another question which requires our consideration and answer. That question concerned the payment of interest on the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property referred to therein. </p><p style="text-align: justify;">24. Sub-section (1) of Section 301 of the BMC Act as it stands does not provide for payment of interest on the amount of compensation payable to the owner for his properties acquired either under Section 298 or Section 299 of the BMC Act. There is no other provision also found in the BMC Act providing for payment of interest on such amount of compensation. The question is, if the statute which provides for acquisition of property and payment of compensation therefor, does not provide for payment of interest on such compensation, does any interest become payable.</p><p style="text-align: justify;">25. It is now settled by three-Judge Bench decision of this Court in Union of India v. Harikrishnan Khosla : 1992(2)SCALE621 that no interest is payable on the compensation payable under the Requisitioning and Acquisitioning of Immovable Property Act, since there is no provision made in that regard in that Act. The ratio of the said decision since forbids payment of interest on the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act, we are constrained to hold that no liability arises for payment of interest on such compensation.</p><p style="text-align: justify;">26. Now coming to facts of the cases which have led to the filing of the present appeals by the BMC, what has been done in the judgments of the Chief Judge of the Court of Small Causes and the High Court appealed against, is to determine the amount of market value, as such, of the acquired portions of the lands of respondents in the appeals and order payment of such amounts of market value as compensation along with 6 per cent interest per annum from the date of taking possession of the land till the date of its payment.</p><p style="text-align: justify;">27. In answering the various questions considered by us herein-before, we have held that the compensation payable under Sub-section (1) of Section 301 of the BMC Act for the properties acquired under either Section 298 or Section 299 thereof cannot be determined on the basis of their market value, as it would go against the principle of determination of compensation specified in that sub-section and that no interest shall be payable on such amount of compensation for delayed payment, as the same is not made payable by any provision in the BMC Act. Hence, the judgment of the Chief Judge of Small Causes Court, as well as, the judgment of the High Court, appealed against in these appeals, directing payment of compensation for the acquired portions of lands, according to their actual market value along with interest thereon @ 6 per cent per annum, become unsustainable and are liable to be set aside by allowing the present appeals. Then, do the cases under present appeals, require to be remanded to the Chief Judge of the Court of Small Causes, Bombay for their disposal in the light of this judgment, is the question, which calls for our consideration.</p><p style="text-align: justify;">28. It was submitted by learned Counsel for the respondents that we should instead of remanding the cases under appeals to the Chief Judge of the Court of Small Causes at Bombay for fresh disposal in accordance with this judgment, as was suggested by us, the amounts of compensation awarded to the respondents in the appeals having regard to the fact that a period of 20 years has elapsed from the year in which the acquisitions concerned were made, and the total amounts awarded, that is, about eleven lakhs, not being a very big amount from the point of the BMC, should be allowed to stand undisturbed. We have given our anxious consideration to the submission. What has been now done by the Court of Small Causes, as well as, the High Court is, to determine the market value of the whole of the land of each of the respondent/s in the appeals, as stood before its portion was acquired, on square yard basis and award out of that amount of compensation, the amount of market value apportionable to the acquired portion of the land, according to its area on square yard basis. If the material, as to what was the total extent of land of the respondent/s in each of the appeals, before a portion of it was acquired, was made available to us, we would have ourselves determined the compensation, according to the method which is already suggested by us for adoption. When such material, is unavailable, we have no option but to remand the cases for disposal by the Chief Judge of the Court of Small Causes at Bombay in the manner which we shall presently indicate. </p><p style="text-align: justify;">29. The market value of the remainder land (land left out after acquisition) of respondent/s in each of the appeals, will have naturally increased, due to the advantage got by it on account of improved road made by acquisition of their several parcels of lands. In the absence of evidence of such increased value, in our view, the facts and circumstances of the present cases warrant granting of an increase in the market value of the remainder land of each of the respondent/s by ten per cent.</p><p style="text-align: justify;">30. Therefore, the Chief Judge, Court of Small Causes must firstly, find out the total market value of the remainder land of each of the respondent/s in the appeals, according to the rate per square yard already fixed for it by the High Court and secondly add to such market value ten per cent increase adverted to. Then, the Chief Judge must also find out, separately, the amount of market value of the whole land of respective respondent/s in each of the appeals again finding out such market value according to the rate per square yard already fixed by the High Court.</p><p style="text-align: justify;">31. The amount of market value of the whole land of the respondent/s in each of the appeals arrived at, as stated, minus the amount of market value of the remainder land of respective respondent/s arrived at, as stated, shall be treated as the loss sustained by each of them, as a consequence of acquisition of their respective portions of land. Such amount of loss, if any, shall alone be the amount, to be ordered to be paid to the concerned respondent/s, as compensation payable to him/them, under Sub-section (1) of Section 301 of the BMC Act, inasmuch as there is no claim or evidence in the cases as to the expenses incurred, by him/them, as a consequence of acquisition, which would have otherwise become payable as a component of compensation under that sub-section. That no interest is payable on the amount of compensation to be ordered to be paid, shall, however, be noted. </p><p style="text-align: justify;">32. In the result, we allow these appeals set aside the judgments of the Chief Judge of Small Causes Court at Bombay and of the High Court of Bombay appealed against, and remit the cases to the Court of the Chief Judge of Small Causes Court at Bombay for deciding them according to the directions contained and indications given in this judgment, after hearing parties or their counsel. However, in the circumstances of these appeals, we make no order as to costs. <p style="text-align: justify;"></p><p style="text-align: justify;">',
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			'prhistory' => 'From the Judgment and Order dated 5th, 6th/7th August 1974 of the High Court of Judicature at Bombay in First Appeal Nos. 386 to 395 of 1968. ',
			'pubs' => 'AIR1994SC2385; JT1994(3)SC535; 1994(2)SCALE813; (1994)4SCC690; [1994]3SCR823; 1994(2)LC261(SC)',
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		(int) 61 => 'the BMC Act',
		(int) 62 => 'Section 301',
		(int) 63 => 'the BMC Act',
		(int) 64 => 'the BMC Act',
		(int) 65 => 'Section 301',
		(int) 66 => 'the BMC Act',
		(int) 67 => 'Section 301',
		(int) 68 => 'the BMC Act',
		(int) 69 => 'Section 301',
		(int) 70 => 'the BMC Act',
		(int) 71 => 'the Section 298',
		(int) 72 => 'Section 301',
		(int) 73 => 'the BMC Act',
		(int) 74 => 'Section 298 or Section 299',
		(int) 75 => 'Section 301',
		(int) 76 => 'the BMC Act',
		(int) 77 => 'Section 301',
		(int) 78 => 'the BMC Act',
		(int) 79 => 'Section 298 or Section 299',
		(int) 80 => 'the BMC Act',
		(int) 81 => 'Section 298 or Section 299 of the BMC Act',
		(int) 82 => 'Section 301',
		(int) 83 => 'the BMC Act',
		(int) 84 => 'Section 301',
		(int) 85 => 'Section 301',
		(int) 86 => 'the BMC Act',
		(int) 87 => 'Section 301',
		(int) 88 => 'the BMC Act',
		(int) 89 => 'Section 301',
		(int) 90 => 'the BMC Act',
		(int) 91 => 'Section 301',
		(int) 92 => 'the BMC Act',
		(int) 93 => 'Section 298 or Section 299',
		(int) 94 => 'Section 301',
		(int) 95 => 'the BMC Act',
		(int) 96 => 'Section 298 or Section 299',
		(int) 97 => 'Section 301',
		(int) 98 => 'the BMC Act',
		(int) 99 => 'Section 301',
		(int) 100 => 'the BMC Act',
		(int) 101 => 'Section 298 or Section 299',
		(int) 102 => 'the BMC Act',
		(int) 103 => 'the BMC Act',
		(int) 104 => 'the Requisitioning and Acquisitioning of Immovable Property Act',
		(int) 105 => 'Section 301',
		(int) 106 => 'the BMC Act',
		(int) 107 => 'Section 301',
		(int) 108 => 'the BMC Act',
		(int) 109 => 'Section 298 or Section 299',
		(int) 110 => 'the BMC Act',
		(int) 111 => 'Section 301',
		(int) 112 => 'the BMC Act'
	),
	'ORG' => array(
		(int) 0 => 'ORDERN',
		(int) 1 => 'First Appeals Nos',
		(int) 2 => 'the High Court of Judicature',
		(int) 3 => 'the Bombay Municipal Corporation Act',
		(int) 4 => 'Sections 298',
		(int) 5 => 'Sections 298',
		(int) 6 => 'the Bombay Municipal Corporation - '',
		(int) 7 => 'BMC',
		(int) 8 => 'BMC',
		(int) 9 => 'the Court of Small Causes',
		(int) 10 => 'BMC',
		(int) 11 => 'the High Court of Judicature',
		(int) 12 => 'the High Court',
		(int) 13 => 'the Court of Small Causes',
		(int) 14 => 'the High Court',
		(int) 15 => 'Court of Small Causes',
		(int) 16 => 'the High Court',
		(int) 17 => 'BMC',
		(int) 18 => 'the Court of Small Causes',
		(int) 19 => 'the High Court',
		(int) 20 => 'BMC',
		(int) 21 => 'the Court of Small Causes',
		(int) 22 => 'the High Court',
		(int) 23 => 'Sections 298',
		(int) 24 => 'the Court of Small Causes',
		(int) 25 => 'the High Court',
		(int) 26 => 'the Court of Small Causes',
		(int) 27 => 'the High Court',
		(int) 28 => 'BMC',
		(int) 29 => 'Court',
		(int) 30 => 'Privy Council',
		(int) 31 => 'Municipal Council of Colombo',
		(int) 32 => 'Sections 298',
		(int) 33 => 'The State of Gujarat and Ors',
		(int) 34 => 'the Bombay Municipal Corporation Act',
		(int) 35 => 'Sections 298',
		(int) 36 => 'the Sections 298',
		(int) 37 => 'the Sections 298',
		(int) 38 => 'Legislature',
		(int) 39 => 'the Privy Council in Municipal Council of Colombo',
		(int) 40 => 'Court of Small Causes',
		(int) 41 => 'the High Court',
		(int) 42 => 'the Sections 298',
		(int) 43 => 'The Privy Council',
		(int) 44 => 'Supreme Court of Colombo',
		(int) 45 => 'the Privy Council',
		(int) 46 => 'Supreme Court',
		(int) 47 => 'the Privy Council',
		(int) 48 => 'Statute',
		(int) 49 => 'Union of India',
		(int) 50 => 'BMC',
		(int) 51 => 'the Court of Small Causes',
		(int) 52 => 'the High Court',
		(int) 53 => 'Small Causes Court',
		(int) 54 => 'the High Court',
		(int) 55 => 'the Court of Small Causes',
		(int) 56 => 'the Court of Small Causes',
		(int) 57 => 'BMC',
		(int) 58 => 'the Court of Small Causes',
		(int) 59 => 'the High Court',
		(int) 60 => 'the Court of Small Causes',
		(int) 61 => 'Court of Small Causes',
		(int) 62 => 'the High Court',
		(int) 63 => 'Small Causes Court',
		(int) 64 => 'the High Court',
		(int) 65 => 'the Court of the Chief',
		(int) 66 => 'Small Causes Court'
	),
	'GPE' => array(
		(int) 0 => 'Venkatachala',
		(int) 1 => 'Bombay',
		(int) 2 => 'Bombay',
		(int) 3 => 'Bombay',
		(int) 4 => 'Counsel',
		(int) 5 => 'mt.',
		(int) 6 => 'Bombay',
		(int) 7 => 'Bombay',
		(int) 8 => 'Bombay',
		(int) 9 => 'Bombay',
		(int) 10 => 'Bombay',
		(int) 11 => 'Bombay'
	),
	'NORP' => array(
		(int) 0 => 'J.1'
	),
	'ORDINAL' => array(
		(int) 0 => '5th',
		(int) 1 => '6th',
		(int) 2 => '7th',
		(int) 3 => '5th',
		(int) 4 => '6th',
		(int) 5 => '7th',
		(int) 6 => 'firstly',
		(int) 7 => 'secondly'
	),
	'DATE' => array(
		(int) 0 => '1974',
		(int) 1 => '1968',
		(int) 2 => '1888',
		(int) 3 => 'the year 1962',
		(int) 4 => '14th March, 1968',
		(int) 5 => 'August, 1974',
		(int) 6 => '1947',
		(int) 7 => '1949',
		(int) 8 => '1894',
		(int) 9 => '18,000.00. 18',
		(int) 10 => '2,000.00 + Rs',
		(int) 11 => '21',
		(int) 12 => '20 years',
		(int) 13 => 'the year',
		(int) 14 => '32'
	),
	'CARDINAL' => array(
		(int) 0 => '386-395',
		(int) 1 => 'three',
		(int) 2 => '1',
		(int) 3 => '299',
		(int) 4 => '1',
		(int) 5 => '299',
		(int) 6 => '1',
		(int) 7 => '2',
		(int) 8 => '2',
		(int) 9 => '1',
		(int) 10 => '1',
		(int) 11 => '80',
		(int) 12 => '450',
		(int) 13 => '640',
		(int) 14 => 'one',
		(int) 15 => '1',
		(int) 16 => '1',
		(int) 17 => '1',
		(int) 18 => '3',
		(int) 19 => '1',
		(int) 20 => '299',
		(int) 21 => '1',
		(int) 22 => '298',
		(int) 23 => '299',
		(int) 24 => '1',
		(int) 25 => '1',
		(int) 26 => '299',
		(int) 27 => '1',
		(int) 28 => '301',
		(int) 29 => '1',
		(int) 30 => '299',
		(int) 31 => '1',
		(int) 32 => '1',
		(int) 33 => '1',
		(int) 34 => '1',
		(int) 35 => '298',
		(int) 36 => '1973]1SCR1',
		(int) 37 => '1',
		(int) 38 => '1',
		(int) 39 => '1',
		(int) 40 => '1',
		(int) 41 => '299',
		(int) 42 => '1',
		(int) 43 => '1',
		(int) 44 => '1',
		(int) 45 => '299',
		(int) 46 => '301',
		(int) 47 => '1',
		(int) 48 => '299',
		(int) 49 => '299',
		(int) 50 => '1',
		(int) 51 => '299',
		(int) 52 => '1',
		(int) 53 => '10',
		(int) 54 => '1',
		(int) 55 => '299',
		(int) 56 => '1',
		(int) 57 => '299',
		(int) 58 => '1',
		(int) 59 => '1',
		(int) 60 => '1',
		(int) 61 => '1',
		(int) 62 => '2',
		(int) 63 => '2',
		(int) 64 => '1',
		(int) 65 => '1',
		(int) 66 => '4',
		(int) 67 => '2',
		(int) 68 => '1',
		(int) 69 => '3',
		(int) 70 => '4',
		(int) 71 => '1',
		(int) 72 => '16',
		(int) 73 => '1',
		(int) 74 => '20',
		(int) 75 => '100',
		(int) 76 => '80',
		(int) 77 => '17',
		(int) 78 => '100',
		(int) 79 => '180',
		(int) 80 => '100',
		(int) 81 => '180',
		(int) 82 => '80',
		(int) 83 => '200',
		(int) 84 => '80',
		(int) 85 => '200',
		(int) 86 => '16,000.00',
		(int) 87 => '19',
		(int) 88 => '100',
		(int) 89 => '18,000.00',
		(int) 90 => '16,000.00',
		(int) 91 => '2,000.00',
		(int) 92 => '20',
		(int) 93 => '1,000.00',
		(int) 94 => '80',
		(int) 95 => '1,000.00',
		(int) 96 => '3,000.00',
		(int) 97 => '1',
		(int) 98 => '3,000.00',
		(int) 99 => '22',
		(int) 100 => '1',
		(int) 101 => '1',
		(int) 102 => '1',
		(int) 103 => '24',
		(int) 104 => '1',
		(int) 105 => 'three',
		(int) 106 => '1992(2)SCALE621',
		(int) 107 => '1',
		(int) 108 => '1',
		(int) 109 => 'about eleven',
		(int) 110 => '29',
		(int) 111 => 'ten',
		(int) 112 => '1'
	),
	'FAC' => array(
		(int) 0 => 'Gowalia Tank Road',
		(int) 1 => 'the BMC Act.(5'
	),
	'PERSON' => array(
		(int) 0 => 'Bhulabhai Desai Road',
		(int) 1 => 'Navanna Suna Pana Latchiman Chettiar',
		(int) 2 => 'App Cas 1884',
		(int) 3 => 'Counsel',
		(int) 4 => 'Statutes',
		(int) 5 => 'Kunamana Navanna Suna',
		(int) 6 => 'App Cas 188',
		(int) 7 => 'Question',
		(int) 8 => 'compensation.14',
		(int) 9 => 'Bench',
		(int) 10 => 'Harikrishnan Khosla',
		(int) 11 => 'Counsel'
	),
	'PERCENT' => array(
		(int) 0 => '6%'
	),
	'PRODUCT' => array(
		(int) 0 => 'Bombay Act 1 of'
	),
	'MONEY' => array(
		(int) 0 => '6 per cent',
		(int) 1 => '6 per cent',
		(int) 2 => 'ten per cent'
	)
)
$desc = array(
	'Judgement' => array(
		'id' => '659619',
		'acts' => 'Bombay Municipal Corporation Act, 1888 - Sections 298, 299, 301(1) and 504; <a href="/act/51407/land-acquisition-act-1894-complete-act">Land Acquisition Act, 1894</a>; Bombay Municipal Corporation Act, 1949 - Sections 216; Bombay Act, 1925',
		'appealno' => 'Civil Appeals Nos. 1278-1287 of 1977.',
		'appellant' => 'Municipal Corporation of Greater Bombay and Others',
		'authreffered' => '',
		'casename' => 'Municipal Corporation of Greater Bombay and Others Vs. Central Bank of India and Another Etc. Etc.',
		'casenote' => 'Property - compensation - Sections 298, 299 and 301 of Bombay Municipal Corporation (BMC) Act, 1888 - what method could be adopted for determining amount of compensation payable under Section 301 (1) - Section 301 (1) of Act requires loss sustained by owner as consequences of acquisition and expense incurred by owner as consequence of acquisition to be made good to such owner by way of compensation - Section 301 (1) of Act specifies appropriate principle of determination of compensation for building or land acquired under Sections 298 and 299 - matter remitted to Small Cause Court for deciding according to directions after hearing parties. - Subordinate/Delegated legislation:[D.K. Jain & R.M. Lodha, JJ] Banks -Voluntary Retirement Scheme, 2000 (VRS 2000) - Held,  The amendment in Regulation 28, as is reflected from Communication dated 5.9.2000, was intended to cover employees who had rendered 15 years service but not completed 20 years service. It was not intended to cover optees who had already completed 20 years service as the provisions contained in Regulation 29 met that contingency. Even if it be assumed that by insertion of Proviso in Regulation 28 (in the year 2002 with retrospective effect from 1.9.2000), all classes of employees under VRS 2000 were intended to be covered, such amendment in Regulation 28, needs to be harmonised with Regulation 29, particularly Regulation 29(5) which provides for addition of qualifying service by five years. This would be in tune and consonance with the explanatory note appended to the amendment in Regulation 28 wherein it is stated that the amendment with retrospective effect would not adversely affect any employee or  officer of the respondent Bank. That would also meet the test of fairness. Weightage of five years under Regulation 29(5) is applicable to the optees having service of 20 years or more. Merely because the employees who have completed 15 years of service but not completed 20 years of service are not entitled to weightage of five years for qualifying service under Regulation 29(5), the employees who have completed 20 years of service or more cannot be denied such benefit. It is also not correct to say that by taking recourse to Regulation 29, the amendment to Regulation 28 is rendered otiose.

LABOUR & SERVICES Pension: [D.K. Jain & R.M. Lodha, JJ] Banks -Employees Pension Regulations, 1995-Regulations 29(5) and 28 Proviso (added in 2002 retrospectively from 1.9.2000) - Benefit of five years additional qualifying service under Regulation 29(5) - Availability of benefit to employees taking retirement under Voluntary Retirement Scheme, 2000 (VRS 2000) on completion of 20 years service - Held, The benefit is available notwithstanding that such employees had received ex gratia payments under VRS 2000. Further Regulation 28 which was amended subsequently by adding a proviso retrospectively, could not be applied to such employees. 

Pension: [D.K. Jain & R.M. Lodha,JJ] Bona fide delay in payment - Inadmissibility of interest -  Delay due to litigation wherein genuine issue of law needed to be resolved in view of difference of opinion between High Courts. Besides, stand taken by appellant Banks was also not frivolous though ultimately rejected by Supreme Court. Grant of interest, under these circumstances is not warranted. 

Pension: [D.K. Jain & R.M. Lodha,JJ] Scope, object and applicability of Banks Employees Pension Regulations, 1995- Regulation 28, Proviso (added in 2002 retrospectively from 1.9.2000) and Regulation 29(5) - Held, The purpose of the Proviso is to confer benefit of pension to those employees who sought voluntary retirement after completion of 15 years but before completion of 20 years of service. Proviso cannot be interpreted to deprive benefit of five years additional qualifying service to those employees who took retirement after 20 years of service under VRS 2000.

LABOUR & SERVICES Voluntary Retirement Scheme: [D.K. Jain & R.M. Lodha,JJ] Banks -Voluntary Retirement Scheme, 2000 (VRS 2000) - The appellant public sector banks framed a scheme known as Voluntary Retirement Scheme, 2000 (VRS 2000) under which all permanent employees of bank who had put in minimum 15 years of service or completed 40 years of age were eligible to seek voluntary retirement. The Scheme was framed for optimizing the staff strength by shedding excess employees. VRS 2000 provided that an employee whose application for voluntary retirement was accepted, would inter alia be entitled to pension in terms of the Employees Pension Regulations, 1995, in case of those who have opted for pension and have put in 20 completed years of service in the bank. Besides, there was also a parallel provision in Regulation 29 of the Pension Regulations, under which an employee with 20 years qualifying service could take voluntary retirement. Such an employee was entitled to benefit of five years additional qualifying service under Regulation 29(5). The issue involved was, whether an employee with 20 years service, who had taken retirement under VRS 2000 (and not under Regulation 29) was entitled to benefit of five years additional qualifying service as provided in Regulation 29(5) of the Pension Regulations. Contention of appellant Banks was that benefit of five years additional qualifying service was admissible only to an employee who took voluntary retirement under Regulation 29, and not to an employee who took retirement under VRS 2000. The employees however relied on Ministry of Finance Communication dated 5.9.2000 (reproduced in para 38 of the judgment) to support their contention that proviso was added to Regulation 28 for the purpose that an employee who takes VRS on completing 15 years of service but before 20 years service, also gets pension. Held,  The employees who had completed 20 years of service and offered voluntary retirement under VRS 2000 are entitled to addition of five years of notional service in calculating the length of service for the purposes of that Scheme as per Regulation 29(5) of the Pension regulations. If the intention was not to give pension as provided in Regulation 29 and particularly sub-regulation (5) thereof, the banks could have said so in the Scheme itself. Much though had gone into formulation of VRS 2000 and it came to be framed after great deliberations. The only provision that could have been in the mind while providing for pension as per the Pension Regulations was Regulation 29. The employees too had the benefit of Regulation 29(5) in mind when they offered for voluntary retirement as Regulation 28, as was existing at that time, was not applicable at all.  VRS 2000 was an attractive package for the employees as they were getting special benefits in the form of ex gratia payments and in addition thereto, inter alia, pension under the Pension Regulations which also provided for weightage of five years of qualifying service for the purposes of pension to the employees who had completed 20 years service. It would be unreasonable if amended Regulation 28 is made applicable, which had not seen the light of the day and which was not the intention of the banks when the Scheme was framed. The banks are public sector banks and are State within the meaning of Article 12 of the Constitution. Their action even in contractual matters has to be reasonable, lest, it must attract the wrath or Article 14 of the Constitution.     Any interpretation of the terms of VRS 2000, although contractual in nature, must meet the test of fairness. It has to be construed in a manner that avoids arbitrariness and unreasonableness on the part of public sector banks which brought out VRS 2000 with an objective of rightsizing their manpower. The Scheme was oriented to lure the employees to go in for voluntary retirement. In this background, the consideration that was to pass between the parties assumes significance and a harmonious construction to the Scheme and the Pension Regulations, therefore, has to be given. Contention of the appellant Banks were rejected and it was declared that the employees who took retirement under the VRS 2000 are entitled to benefit of five years additional qualifying service under Regulation 29(5).

Voluntary Retirement Scheme: [D.K. Jain & R.M. Lodha,JJ] Banks-Voluntary Retirement Scheme, 2000 (VRS 2000) - Effect of Employees Pension Regulations, 1995 having been made part of VRS 2000  Held, The precise effect of Pension Regulations, for the purposes of pension, having been made part f the Scheme, is that the Pension Regulations, to the extent, these are applicable, must be read into the Scheme. Interpretation clause of VRS 2000 states that the words and expressions used in the Scheme but not defined, and defined in the rules/regulations shall have the same meaning respectively assigned to them under the rules/regulations. The Scheme does not define the expression retirement or voluntary retirement.  Therefore the definition of retirement given in Regulation 2(y) whereunder voluntary retirement under Regulation 29 is considered to be retirement, has to be taken into consideration. Regulation 29 uses the expression, voluntary retirement under these Regulations. For the purposes of the Scheme, it has to be understood to mean with necessary changes in points of details Section 23 of the Contract Act, 1872 has no application to the present fact situation. It cannot be accepted that VRS 2000 did not envisage grant of pension benefits under Regulation 29(5) to the optees of 20 years service along with payment of ex-gratia. 

INDIAN EVIDENCE ACT, 1872 

Section 115; [D.K. Jain & R.M. Lodha, JJ] Estoppel - Held, Bank employees who had taken retirement under the Voluntary Retirement Scheme, 2000 (VRS 2000) and claimed benefit of additional qualifying service under Employees Pension Regulations, 1995, were not resiling from VRS 2000, rather were enforcing the Scheme. Question of estoppel therefore does not arise.  -  3. The learned Counsel appearing for the BMC, the common appellant in all the present appeals, contended that the Court of Small Causes, as well as, the High Court had gone wrong in determining the compensation payable to the owner under Sub-section (1) of Section 301 of the BMC Act for his land acquired under Sections 298 and 299 thereof, was its market value, when such compensation to be determined could not have been anything other than the loss which that owner had to sustain as a consequence of such acquisition and the expense which that owner had to incur as a consequence of such acquisition. Thus, when Sub-section (1) of Section 301 of the BMC Act requires the loss sustained by the owner as a consequence of acquisition and the expense incurred by the owner as a consequence of acquisition, to be made good to such owner by way of compensation, what is found in that sub-section cannot be anything other than the principle of determination of compensation which is deliberately or wantonly specified therein, having regard to the vulnerability of a portion of land or a portion of building being acquired for the public street. The compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner of the acquired land or building can only be the loss sustained and the expense incurred by the owner because of such acquisition and not the market value of the acquired building or land, as pointed out by us herein-before while considering Question (ii). Therefore, compensation payable under the said sub-section should be the amount which is required to be made good to the owner towards reimbursement of his loss sustained, if any, on account of acquisition and his expense incurred, if any, on account of acquisition. Hence, the judgment of the Chief Judge of Small Causes Court, as well as, the judgment of the High Court, appealed against in these appeals, directing payment of compensation for the acquired portions of lands, according to their actual market value along with interest thereon @6 per cent per annum, become unsustainable and are liable to be set aside by allowing the present appeals. What has been now done by the Court of Small Causes, as well as, the High Court is, to determine the market value of the whole of the land of each of the respondent/s in the appeals, as stood before its portion was acquired, on square yard basis and award out of that amount of compensation, the amount of market value apportionable to the acquired portion of the land, according to its area on square yard basis.',
		'caseanalysis' => null,
		'casesref' => 'Union of India v. Harikrishnan Khosla;',
		'citingcases' => '
Municipal Council of Colombo v. Kuna Mana Navanna Suna Pana Latchiman 
Chettiar 								Mentioned

Municipal Corporation of the City of Ahmedabad and Ors. v. The 
State of Gujarat and Ors. 						Discussed

Municipal Council of Colombo v. Kunamana Navanna Suna Pana Latchiman 
Chettiar 								Discussed

Union of India v. Harikrishnan Khosla 					Dissented

',
		'counselplain' => ' V.A. Bobale and;D.N. Mishra&lt; Adv',
		'counseldef' => ' R.F. Nariman, ; R.B. Hathikhanawala, ; D.B. Moos For the Respo',
		'court' => 'Supreme Court of India',
		'court_type' => 'SC',
		'decidedon' => '1994-05-02',
		'deposition' => '',
		'favorof' => null,
		'findings' => null,
		'judge' => ' K. Ramaswamy and; N. Venkatachala, JJ.',
		'judgement' => 'ORDER<p style="text-align: justify;">N. Venkatachala, J.</p><p style="text-align: justify;">1. These appeals by special leave, directed against the common judgment dated 5th, 6th and 7th August, 1974 rendered in First Appeals Nos. 386-395 of 1968 by the High Court of Judicature at Bombay, are required to be decided by us by considering and answering three important questions:</p><p style="text-align: justify;">(i) Does the provision in Sub-section (1) of Section 301 of the Bombay Municipal Corporation Act, 1888 - 'the BMC Act' specify a principle of determination of compensation payable to the owners of the buildings or lands acquired for a public street under Sections 298 and 299 thereof?</p><p style="text-align: justify;"> (ii) Does the principle specified in Sub-section (1) of Section 301 of the BMC Act, for determination of compensation payable to the owners for their buildings or lands acquired under Sections 298 and 299 thereof, warrant determination of such compensation according to the market value of such acquired buildings or lands </p><p style="text-align: justify;">(iii) What method could be adopted for determining the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act? </p><p style="text-align: justify;">2. The salient facts which have let to the filing of the present appeals lie in a narrow compass : Gowalia Tank Road and Bhulabhai Desai Road lying within the area of the Bombay Municipal Corporation - 'the BMC' are public streets envisaged under the BMC Act. In the year 1962, the BMC which resolved to improve the said public streets by widening them, acquired out of the lands of respondents in these appeals, certain portions which fell within the regular line of the public streets and took their possession, as provided for in Sub-section (2) of Section 298 and Sub-section (1) of Section 299 of the BMC Act. The Commissioner who was liable under Sub-section (1) of Section 301 of the BMC Act, to pay compensation to the respondents in these appeals for their acquired portions of lands, offered to pay them compensation at an uniform rate of Rs. 80 per square yard of land. But, the respondents, who disputed the adequacy of the said compensation offered to be paid to them, filed applications before the Chief Judge of the Court of Small Causes, Bombay, praying for grant of higher compensation for their acquired portions of lands, by taking recourse to the provision in Section 504 of the BMC Act. The Chief Judge, who entertained those applications, with the consent of parties, clubbed all the said applications, recorded common evidence thereon and decided them by his common judgment dated 14th March, 1968. Under that common judgment, the compensation made payable to the respondents in these appeals - the owners, for their acquired portions of lands, was their market value worked out at a rate ranging from Rs. 450 per sq. yard to Rs. 640 per sq. yard. The BMC assailed that common judgment of the learned Chief Judge, as granting excessive compensation, by filing appeals in the High Court of Judicature at Bombay. A Division Bench of the High Court, which heard those appeals, by its common judgment dated the 5th, the 6th and the 7th August, 1974, while allowed one of them partly by reducing the compensation in some measure, dismissed the rest. According to the Chief Judge of the Court of Small Causes, and the Division Bench of the High Court, what was payable by way of compensation under Sub-section (1) of Section 301 of the BMC Act to the owners, for the portions of their lands acquired under either Section 298 or Section 299 thereof, was the market value of such portions and, therefore, the market value obtainable by the owners for their respective entire lands had to be apportioned between the uncured portion of the land and the acquired portion of the land and it was that much of the market value apportionable to acquired land, which was liable to be paid to the owner as compensation for his acquired land. Consequently, both the Chief Judge of Court of Small Causes and the Division Bench of the High Court determined the market value of the entire land of respondent/s concerned in each appeal, of which his/their acquired portion of land formed part and apportioned to such acquired portion of land out of the market value of the entire land so determined, according to the ratio of the area worked out on squared yard basis. The market value of the acquired portion of land so determined was, in fact, treated as the loss sustained by the respondent-owner concerned and the Commissioner was directed to pay the same to him/them as compensation required to be paid under Sub-section (1) of Section 301 of the BMC Act for his/their acquired land. For the unpaid amount of such compensation, interest at 6% per annum was also ordered to be paid from the date of taking possession of the land till its actual payment. The present appeals by Special leave are filed on behalf of the BMC, against the said judgments of both the Court of Small Causes and the High Court, assailing the amounts of compensation determined for the acquired portions of lands of the respondents, on the basis of the principle of their market value, purporting to be under Sub-section (1) of Section 301 of the BMC Act. </p><p style="text-align: justify;">3. The learned Counsel appearing for the BMC, the common appellant in all the present appeals, contended that the Court of Small Causes, as well as, the High Court had gone wrong in determining the compensation payable to the owner under Sub-section (1) of Section 301 of the BMC Act for his land acquired under Sections 298 and 299 thereof, was its market value, when such compensation to be determined could not have been anything other than the loss which that owner had to sustain as a consequence of such acquisition and the expense which that owner had to incur as a consequence of such acquisition. He also contended that the method of determining the amount of market value of the whole land of the respondent in each appeal including that which was acquired and apportioning that market value to the portion of the acquired land, was indeed, not a method which the Court of Small Causes and the High Court, could have adopted for determining the compensation payable under Sub-section (1) of Section 301 of the BMC Act. On the other hand, learned Counsel who appeared for contesting respondents in the present appeals, sought to support the judgments of the Court of Small Causes and the High Court by which it has been held that the compensation payable to the owners for their portions of lands acquired by the BMC under Sections 298 and 299 thereof cannot be anything but their market value, and when such market value was given as compensation to owners for their acquired lands, there was no warrant for interfering with the same, by this Court. They also sought to obtain support for their contention from the decision of Privy Council in Municipal Council of Colombo v. Kuna Mana Navanna Suna Pana Latchiman Chettiar (1947) App Cas 188</p><p style="text-align: justify;">4. The questions which we have formulated at the outset as those requiring our consideration and answers, in deciding the present appeals, since take within their fold the aforestated rival contentions of learned Counsel for the contesting parties, they could now be considered and answered, in there serial Order.</p><p style="text-align: justify;">5. Re : Question (1) </p><p style="text-align: justify;">Does the provision in Sub-section (1) of Section 301 of the BMC Act specify a principle of determination of compensation payable to the owners of buildings or lands acquired for public streets under Sections 298 and 299 thereof, is the question.</p><p style="text-align: justify;">As the answer to the said question, has to necessarily depend on the content of Sub-section (1) of Section 301 of the BMC Act, it could be reproduced to understand its content, thus : </p><p style="text-align: justify;">301, (1) Compensation shall be paid by the Commissioner to the owner of any building or land acquired for a public street under Section 298 or 299, for any loss which such owner may sustain in consequence of his building or land being so acquired and for any expense incurred by such owner in consequence of the order made by the Commissioner under either of the said sections; provided that any increase or decrease in the value of the remainder of the property of which the building or land so acquired formed part likely to accrue from the set-back to the regular line of the street shall be taken into consideration and allowed for in determining the amount of such compensation.</p><p style="text-align: justify;">6. The said sub-section as could be seen from its content while provides for payment of compensation to the owner for his building or land acquired under Section 298 or Section 299 of the BMC Act, requires that such compensation (could comprise of, loss which such owner may sustain and expense which such owner may incur, as a consequence of acquisition of his building or land. In this context, if it is noted, that what is acquired under Section 298 of the BMC Act, is the portion of land within the regular line of public street, that is, the portion of land occupied by a building fallen down or burnt down or taken down, and that what is acquired under Section 299 of the BMC Act is the portion of land occupied by a building external to the building abutting the public street or a verandah, a step, a platform or other structure within the regular line of public street, the same furnishes the reason as to why the principle of compensation required to be adopted under Sub-section (1) of Section 301 of the BMC Act, for payment of compensation for such acquisition is confined to merely the loss sustained and the expense incurred, as a consequence of such acquisition. Thus, when Sub-section (1) of Section 301 of the BMC Act requires the loss sustained by the owner as a consequence of acquisition and the expense incurred by the owner as a consequence of acquisition, to be made good to such owner by way of compensation, what is found in that sub-section cannot be anything other than the principle of determination of compensation which is deliberately or wantonly specified therein, having regard to the vulnerability of a portion of land or a portion of building being acquired for the public street. This situation, makes us take the view that Sub-section (1) of Section 301 of the BMC Act specifies the appropriate principle of determination of compensation for a building or a land acquired either under Section 298 or Section 299 thereof. Our view that Sub-section (1) of Section 301 of the BMC Act specifies the principle of determination of compensation for building or land acquired under Sections 298 or Section 299 thereof, gives no room for doubting, since it receives, fortification from a Constitution Bench decision of this Court in Municipal Corporation of the City of Ahmedabad and Ors. v. The State of Gujarat and Ors. : [1973]1SCR1 , wherein dealing with the content of the provision in Sub-section (1) of section of the provision in Sub-section (1) of Section 216 of the Bombay Municipal Corporation Act 1949 which is exactly similar to the provision in Sub-section (1) of Section 301 of the BMC Act, it has been held thus:. Since full indemnification in accordance with judicial norms is the goal set by the Act, it is implicit in such a provision that the rules for determination of compensation shall be appropriate to the property acquired and such as will achieve the goal of full indemnity against loss. In other words, the Act provides for compensation to be determined in accordance with judicial principles by the employment of appropriate methods of valuation so that the person who is deprived of property is fully indemnified against the loss. This, by itself, in our opinion, is a specification of a principle for the determination of compensation.</p><p style="text-align: justify;">(emphasis supplied)</p><p style="text-align: justify;">7. Hence, we answer the question in the affirmative and to the effect that Sub-section (1) of Section 301 of the BMC Act, itself, specifies the principle of determination of compensation payable for land or building acquired under either of the Section 298 or 299 thereof.</p><p style="text-align: justify;">8. Re : Question (ii) </p><p style="text-align: justify;">Principle of determination of compensation payable for owners for the portions of their buildings or lands acquired either under Section 298 or Section 299 of the BMC Act, specified under Sub-section (1) of Section 301 of the BMC Act, as could be seen therefrom requires that such compensation shall be confined only to the loss sustained or the expenses incurred, by the owner, as a consequence of acquisition of his building or land lying within the regular line of the public street. If that be so, question of determining the compensation under Sub-section (1) of Section 301 of the BMC Act for acquisition of lands lying within the regular line of public street under either Section 298 or Section 299 thereof, on the basis of their market value, cannot arise. Market value could undoubtedly, be a principle on the basis of which compensation may be required to be determined under certain Statutes, for lands acquired thereunder. For instance, the <a href="/act/51407/land-acquisition-act-1894-complete-act">Land Acquisition Act, 1894</a> provides for payment of compensation for the land acquired thereunder on the basis of market value, that is, the price which a willing vendor might reasonably obtain from a willing purchaser for such land. It may be recalled in this context that in fact Sub-section (1) of Section 301 of the BMC Act, before its amendment by Bombay Act 1 of 1925, also required payment of compensation for lands acquired under Sections 298 and 299 of the BMC Act, on the basis of market value, in that, it read :</p><p style="text-align: justify;">301. (1) Compensation shall be paid by the Commissioner to the owner of any building or land acquired for a public street under Section 298 or 299, for the value of the said land and for any loss, damage or expense sustained by such owner in consequence of the order made by the Commissioner under either of the said sections.</p><p style="text-align: justify;">9. As seen from the said unamended sub-section, compensation was payable to the owner for his land or building acquired for a public street under either of the Sections 298 or 299 of the BMC Act, included the value of the land. But, Section (1) of Section 301 of the BMC Act as it stands amended, even though specifies the principle of compensation payable for land acquired under either of the Sections 298 or 299 of the BMC Act, does not require the payment of compensation to be paid thereunder, to include the value of land. The amended sub-section, therefore, makes it clear that the payment of value, that is, market value, as compensation for the acquired land is, in fact, excluded thereunder. If that be so, to hold that the market value of the acquired land is payable as compensation to the owner under Sub-section (1) of Section 301 of the BMC Act for the acquired lands envisaged thereunder, is to order something to be done which the Legislature required, not to be done. </p><p style="text-align: justify;">10. Indeed the decision of the Privy Council in Municipal Council of Colombo v. Kunamana Navanna Suna Pana Latchiman Chettiar 1947 App Cas 188 relied upon by counsel for respondents to support the view of Court of Small Causes and the Division Bench of the High Court that, that compensation payable under Sub-section (1) of Section 301 of the BMC Act, is the market value of the land acquired under either of the Sections 298 or 299, goes against such view. The Privy Council in that case was concerned with a provision which provided for payment of compensation for a land acquired for a public street according to the value of the land as required by the Statute - the Land Acquisition Ordinance. When the judgment of Supreme Court of Colombo appealed against, indicated that the compensation was ordered to be paid according to the loss sustained by the owner of the land acquired for the public street, instead of ordering compensation, according to the market value of the acquired land, the Privy Council observed thus :.The Supreme Court in valuing the acquired strip as part of the rest of the land of the respondent which is not either actually or nationally in the market, have not ascertained the market value of the acquired strips; they have attempted to ascertain the loss which the respondent had sustained by reason of acquisitioning of the acquired strip. That method finds no warrant in the Ordinance.</p><p style="text-align: justify;">11. Thus, the above decision of the Privy Council, if anything, makes it clear that what is to be paid by way of compensation for a land acquired under a Statute is what is required to be paid thereunder, by way of compensation for the acquired land and not payment of something by way of compensation which is not envisaged under the Statute.</p><p style="text-align: justify;">12. Hence, our answer to the question is that the principle specified in Sub-section (1) of Section 301 of the BMC Act for determination of compensation payable to the owners for their lands or buildings acquired under either of the Section 298 or 299 thereof, does not warrant determination of compensation according to market value of such building or land.</p><p style="text-align: justify;">13. Re : Question (iii) </p><p style="text-align: justify;">Method adoptable for determining the amount of compensation payable to the owners under Sub-section (1) of Section 301 of the BMC Act for land or building acquired under either Section 298 or Section 299 thereof, arises for consideration here. The compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner of the acquired land or building can only be the loss sustained and the expense incurred by the owner because of such acquisition and not the market value of the acquired building or land, as pointed out by us herein-before while considering Question (ii). Therefore, compensation payable under the said sub-section should be the amount which is required to be made good to the owner towards reimbursement of his loss sustained, if any, on account of acquisition and his expense incurred, if any, on account of acquisition. Sometimes there may not be any loss sustained and sometimes there may not be any expense incurred. At other times, there may be both loss sustained and expense incurred by the owner. Therefore, depending upon a given situation, what should be the compensation payable under that sub-section, has to be determined. Moreover, as is required by the proviso to the said sub-section 'any increase or decrease in the value of the remainder of the property of which the building or land so acquired formed part, likely to accrue from the set-back to the regular line of the street shall be taken into consideration and allowed for', in determining the amount of such compensation.</p><p style="text-align: justify;">14. If such amount, is the compensation payable to the owner under the said sub-section, what method should be adopted for determining such amount of compensation is the real question, which needs our answer.</p><p style="text-align: justify;">15. The method which in our considered opinion is the most appropriate for adoption in determining the compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property, having regard to the determinants or indicia specified in that sub-section, is that which should necessarily involve the following exercise : </p><p style="text-align: justify;">(1) Of determining the market value of the whole property or land of the owner before a portion of that property or land was acquired under either Section 298 or Section 299 or the BMC Act. </p><p style="text-align: justify;">(2) Of determining the market value of the remainder property left with the owner after a portion of it got acquired under either Section 298 or Section 299 of the BMC Act. That market value of the remainder property must be that determined taking into consideration the increased value accrued to it or decreased value suffered by it, as a result of improved street formed by acquisition of its portion and acquisition of similar portions of properties of others Whenever the remainder property gets the benefit of improved street formed with acquired portions of lands, it can be presumed in the absence of contrary evidence that there is increase in its value, although the quantum of increase ought to depend on extents or strips of lands acquired for the improvement of the street and importance gained by it.</p><p style="text-align: justify;">(3) If the amount of the market value of the property, as determined under item (2) falls short of the amount of market value of the property as determined in item (1), it is that amount of the short-fall, which could be regarded as the loss to the owner for his acquired portion of the property, the principal component of compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired portion of property or land. </p><p style="text-align: justify;">(4) Expenses incurred by the owner, if any, on account of acquisition of a portion of his property if not already taken into consideration in determining the market value of the remainder property under item (2), then that amount of expenses incurred by the owner should be regarded as the other component of compensation payable to him under Sub-section (1) of Section 301 of the BMC Act.</p><p style="text-align: justify;">(5) The amount of loss in item (3) and the amount of expense in item (4) together constitute the total compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property or land. </p><p style="text-align: justify;">16. How, by adoption of the said method the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act is determinable could be illustrated with reference to a hypothetical case of acquisition of 20 sq. mts. of land out of 100 sq. mts. of land whereby the owner is allowed to retain the remainder land of 80 sq. mts. of land. </p><p style="text-align: justify;">17. Amount of market value to be fetched for 100 sq. mts. of land before acquisition of its portion, is found to be, say Rs. 180 per sq. mt. Such market value would be 100 times of Rs. 180, that is, Rs. 18,000.00. </p><p style="text-align: justify;">18. Amount of market value to be fetched for 80 sq. mts. of remainder land, is found to be, say of Rs. 200 per sq. mt., such market value would be 80 times of Rs. 200, that is, Rs. 16,000.00. </p><p style="text-align: justify;">19. The amount of market value of the entire 100 sq. mts. of land before a portion of it was acquired, minus the amount of market value of the remainder land would furnish the amount of loss sustained by the owner, that is, Rs. 18,000.00 minus Rs. 16,000.00 = Rs. 2,000.00. </p><p style="text-align: justify;">20. The loss so sustained by the owner as a consequence of acquisition of a portion of his land and the amount of expenses, say Rs. 1,000.00 incurred by him because of the acquisition, (such expenses if not already included in determining the market value of the reminder land of 80 sq. mts), together, would be the compensation. That is Rs. 2,000.00 + Rs. 1,000.00 = Rs. 3,000.00. </p><p style="text-align: justify;">21. Therefore, compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired land, would be Rs. 3,000.00. </p><p style="text-align: justify;">22. Hence, our answer to the question is that the method of determination of compensation payable under Section 301 (1) of the BMC Act to the owner for his acquired property or land under either Section 298 or Section 299 thereof, requires the assessment of the loss sustained by the owner as a consequence of acquisition, such loss being the amount of market value of the property or land as a whole, as stood before its acquisition, minus the amount of market value of the remainder property or land and assessment of the expenses incurred by the owner as a consequence of acquisition. The said method has commended itself for our acceptance, since it accords with the principle specified in Sub-section (1) of Section 301 of the BMC Act for determination of compensation payable to the owner of a property or land acquired under either Section 298 or Section 299 thereof. However, what method should be adopted for determining the market value of the whole property of the owner or remainder property of the owner, shall, as it ought to be, depend on the nature of property concerned.</p><p style="text-align: justify;">23. There is, however, another question which requires our consideration and answer. That question concerned the payment of interest on the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act to the owner for his acquired property referred to therein. </p><p style="text-align: justify;">24. Sub-section (1) of Section 301 of the BMC Act as it stands does not provide for payment of interest on the amount of compensation payable to the owner for his properties acquired either under Section 298 or Section 299 of the BMC Act. There is no other provision also found in the BMC Act providing for payment of interest on such amount of compensation. The question is, if the statute which provides for acquisition of property and payment of compensation therefor, does not provide for payment of interest on such compensation, does any interest become payable.</p><p style="text-align: justify;">25. It is now settled by three-Judge Bench decision of this Court in Union of India v. Harikrishnan Khosla : 1992(2)SCALE621 that no interest is payable on the compensation payable under the Requisitioning and Acquisitioning of Immovable Property Act, since there is no provision made in that regard in that Act. The ratio of the said decision since forbids payment of interest on the amount of compensation payable under Sub-section (1) of Section 301 of the BMC Act, we are constrained to hold that no liability arises for payment of interest on such compensation.</p><p style="text-align: justify;">26. Now coming to facts of the cases which have led to the filing of the present appeals by the BMC, what has been done in the judgments of the Chief Judge of the Court of Small Causes and the High Court appealed against, is to determine the amount of market value, as such, of the acquired portions of the lands of respondents in the appeals and order payment of such amounts of market value as compensation along with 6 per cent interest per annum from the date of taking possession of the land till the date of its payment.</p><p style="text-align: justify;">27. In answering the various questions considered by us herein-before, we have held that the compensation payable under Sub-section (1) of Section 301 of the BMC Act for the properties acquired under either Section 298 or Section 299 thereof cannot be determined on the basis of their market value, as it would go against the principle of determination of compensation specified in that sub-section and that no interest shall be payable on such amount of compensation for delayed payment, as the same is not made payable by any provision in the BMC Act. Hence, the judgment of the Chief Judge of Small Causes Court, as well as, the judgment of the High Court, appealed against in these appeals, directing payment of compensation for the acquired portions of lands, according to their actual market value along with interest thereon @ 6 per cent per annum, become unsustainable and are liable to be set aside by allowing the present appeals. Then, do the cases under present appeals, require to be remanded to the Chief Judge of the Court of Small Causes, Bombay for their disposal in the light of this judgment, is the question, which calls for our consideration.</p><p style="text-align: justify;">28. It was submitted by learned Counsel for the respondents that we should instead of remanding the cases under appeals to the Chief Judge of the Court of Small Causes at Bombay for fresh disposal in accordance with this judgment, as was suggested by us, the amounts of compensation awarded to the respondents in the appeals having regard to the fact that a period of 20 years has elapsed from the year in which the acquisitions concerned were made, and the total amounts awarded, that is, about eleven lakhs, not being a very big amount from the point of the BMC, should be allowed to stand undisturbed. We have given our anxious consideration to the submission. What has been now done by the Court of Small Causes, as well as, the High Court is, to determine the market value of the whole of the land of each of the respondent/s in the appeals, as stood before its portion was acquired, on square yard basis and award out of that amount of compensation, the amount of market value apportionable to the acquired portion of the land, according to its area on square yard basis. If the material, as to what was the total extent of land of the respondent/s in each of the appeals, before a portion of it was acquired, was made available to us, we would have ourselves determined the compensation, according to the method which is already suggested by us for adoption. When such material, is unavailable, we have no option but to remand the cases for disposal by the Chief Judge of the Court of Small Causes at Bombay in the manner which we shall presently indicate. </p><p style="text-align: justify;">29. The market value of the remainder land (land left out after acquisition) of respondent/s in each of the appeals, will have naturally increased, due to the advantage got by it on account of improved road made by acquisition of their several parcels of lands. In the absence of evidence of such increased value, in our view, the facts and circumstances of the present cases warrant granting of an increase in the market value of the remainder land of each of the respondent/s by ten per cent.</p><p style="text-align: justify;">30. Therefore, the Chief Judge, Court of Small Causes must firstly, find out the total market value of the remainder land of each of the respondent/s in the appeals, according to the rate per square yard already fixed for it by the High Court and secondly add to such market value ten per cent increase adverted to. Then, the Chief Judge must also find out, separately, the amount of market value of the whole land of respective respondent/s in each of the appeals again finding out such market value according to the rate per square yard already fixed by the High Court.</p><p style="text-align: justify;">31. The amount of market value of the whole land of the respondent/s in each of the appeals arrived at, as stated, minus the amount of market value of the remainder land of respective respondent/s arrived at, as stated, shall be treated as the loss sustained by each of them, as a consequence of acquisition of their respective portions of land. Such amount of loss, if any, shall alone be the amount, to be ordered to be paid to the concerned respondent/s, as compensation payable to him/them, under Sub-section (1) of Section 301 of the BMC Act, inasmuch as there is no claim or evidence in the cases as to the expenses incurred, by him/them, as a consequence of acquisition, which would have otherwise become payable as a component of compensation under that sub-section. That no interest is payable on the amount of compensation to be ordered to be paid, shall, however, be noted. </p><p style="text-align: justify;">32. In the result, we allow these appeals set aside the judgments of the Chief Judge of Small Causes Court at Bombay and of the High Court of Bombay appealed against, and remit the cases to the Court of the Chief Judge of Small Causes Court at Bombay for deciding them according to the directions contained and indications given in this judgment, after hearing parties or their counsel. 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LAW: Section 301, the BMC Act', Section 301, the BMC Act, Section 301, the BMC Act, the BMC Act, Section 298, Section 299, the BMC Act, Section 301, the BMC Act, Section 504, the BMC Act, Section 301, the BMC Act, Section 298 or Section 299, Section 301, the BMC Act, Section 301, the BMC Act, Section 301, the BMC Act, Section 301, the BMC Act, Section 301, the BMC Act, Section 301, the BMC Act, Section 298, Section 298 or Section 299, the BMC Act, Section 298, the BMC Act, Section 299, Section 301, the BMC Act, Section 301, the BMC Act, Section 301, Section 298 or Section 299, Section 301, Section 299, Constitution, Section 216, Section 301, the BMC Act, Section 301, the BMC Act, the Section 298, Section 298 or Section 299, Section 301, the BMC Act, Section 301, the BMC Act, Section 298 or Section 299, the Land Acquisition Act, Section 301, the BMC Act, the BMC Act, Section 298, the BMC Act, Section 301, the BMC Act, the BMC Act, Section 301, the BMC Act, Section 301, the BMC Act, Section 301, the BMC Act, the Section 298, Section 301, the BMC Act, Section 298 or Section 299, Section 301, the BMC Act, Section 301, the BMC Act, Section 298 or Section 299, the BMC Act, Section 298 or Section 299 of the BMC Act, Section 301, the BMC Act, Section 301, Section 301, the BMC Act, Section 301, the BMC Act, Section 301, the BMC Act, Section 301, the BMC Act, Section 298 or Section 299, Section 301, the BMC Act, Section 298 or Section 299, Section 301, the BMC Act, Section 301, the BMC Act, Section 298 or Section 299, the BMC Act, the BMC Act, the Requisitioning and Acquisitioning of Immovable Property Act, Section 301, the BMC Act, Section 301, the BMC Act, Section 298 or Section 299, the BMC Act, Section 301, the BMC Act

ORG: ORDERN, First Appeals Nos, the High Court of Judicature, the Bombay Municipal Corporation Act, Sections 298, Sections 298, the Bombay Municipal Corporation - ', BMC, BMC, the Court of Small Causes, BMC, the High Court of Judicature, the High Court, the Court of Small Causes, the High Court, Court of Small Causes, the High Court, BMC, the Court of Small Causes, the High Court, BMC, the Court of Small Causes, the High Court, Sections 298, the Court of Small Causes, the High Court, the Court of Small Causes, the High Court, BMC, Court, Privy Council, Municipal Council of Colombo, Sections 298, The State of Gujarat and Ors, the Bombay Municipal Corporation Act, Sections 298, the Sections 298, the Sections 298, Legislature, the Privy Council in Municipal Council of Colombo, Court of Small Causes, the High Court, the Sections 298, The Privy Council, Supreme Court of Colombo, the Privy Council, Supreme Court, the Privy Council, Statute, Union of India, BMC, the Court of Small Causes, the High Court, Small Causes Court, the High Court, the Court of Small Causes, the Court of Small Causes, BMC, the Court of Small Causes, the High Court, the Court of Small Causes, Court of Small Causes, the High Court, Small Causes Court, the High Court, the Court of the Chief, Small Causes Court

GPE: Venkatachala, Bombay, Bombay, Bombay, Counsel, mt., Bombay, Bombay, Bombay, Bombay, Bombay, Bombay

NORP: J.1

ORDINAL: 5th, 6th, 7th, 5th, 6th, 7th, firstly, secondly

DATE: 1974, 1968, 1888, the year 1962, 14th March, 1968, August, 1974, 1947, 1949, 1894, 18,000.00. 18, 2,000.00 + Rs, 21, 20 years, the year, 32

CARDINAL: 386-395, three, 1, 299, 1, 299, 1, 2, 2, 1, 1, 80, 450, 640, one, 1, 1, 1, 3, 1, 299, 1, 298, 299, 1, 1, 299, 1, 301, 1, 299, 1, 1, 1, 1, 298, 1973]1SCR1, 1, 1, 1, 1, 299, 1, 1, 1, 299, 301, 1, 299, 299, 1, 299, 1, 10, 1, 299, 1, 299, 1, 1, 1, 1, 2, 2, 1, 1, 4, 2, 1, 3, 4, 1, 16, 1, 20, 100, 80, 17, 100, 180, 100, 180, 80, 200, 80, 200, 16,000.00, 19, 100, 18,000.00, 16,000.00, 2,000.00, 20, 1,000.00, 80, 1,000.00, 3,000.00, 1, 3,000.00, 22, 1, 1, 1, 24, 1, three, 1992(2)SCALE621, 1, 1, about eleven, 29, ten, 1

FAC: Gowalia Tank Road, the BMC Act.(5

PERSON: Bhulabhai Desai Road, Navanna Suna Pana Latchiman Chettiar, App Cas 1884, Counsel, Statutes, Kunamana Navanna Suna, App Cas 188, Question, compensation.14, Bench, Harikrishnan Khosla, Counsel

PERCENT: 6%

PRODUCT: Bombay Act 1 of

MONEY: 6 per cent, 6 per cent, ten per cent