• Chances of getting land out of reservation

We own a property leased from trust for lifetime. 
we pay some fixed amount as monthly rent to the trust, 
We have got the tax , electricity bills in our name. 
Now , Municipal corporation has sent us a notice for acquiring this property for public purpose reservation. 
what are the chances of getting rid of this acquisition ? and will we benefit from this or the Trust benefit from this as we are just the tenants for life long lease. 

Please comment.
Asked 2 years ago in Property Law from Pune, Maharashtra
Religion: Muslim
1)since land is being acquired for public purpose chances of acquisition being set aside are remote

2) amount of compensation awarded would be apportioned between the landlord and tenant . 

3) Indraprastha Ice and Cold Storage Ltd., New Delhi v. Union of India, AIR 1987 Delhi 171. was a case where the acquired land was under lease for a period of 40 years i.e. after every 10 years, right of renewal on enhanced rent was provided for. In such circumstances, it was stated that the owner could not be said to have intended to give up his right. The acquisition in that case was of open land and the remaining portion of the land was at the disposal of the lessee. In such circumstances, apportionment of compensation in the ratio of 7: 1 between the owner and the tenant was considered justified. It may further be noticed that in that case the landlord had not applied for enhancement of the compensation but the tenant had. The Delhi High Court enhanced the rate of compensation and gave benefit of the Amending Act of 1984 and apportioned the compensation as stated above. It was observed as under (at p. 172 of AIR) :--

"Now, the question arises how the compensation of this acquired land is to be apportioned between the owner and the tenant or lessee. If we feel that the tenant is a kind of permanent fixture then perhaps he can get more compensation but if we treat him as a transitory property then a very small pro-port ion of the compensation has to be paid to the lessee. The actual proportion will depend on the nature of the right of the lessee tenant."

It was further held as under fat p. 173 of AIR):--

"Furthermore, if we treat the case as one covered by the Rent Control Act, then we have a further difficulty in assessing the compensation payable to the tenant. By definition, a protected tenancy under the Rent Control Act prohibits the creation of transfer of sub-lease. So, the interest of a person protected by the Rent Control Act is not marketable, being not saleable, i.e. non-transferable and non-assignable. So, though the protection to the tenant makes the right a safe one, it also prevents a legal transfer giving rise to a market value. This is the result of the prohibition contained in S. 14 of the Delhi Rent Control Act. If there is any assignment, transfer or creation of small interest the tenancy is liable to be determined and protection under the Act is withdrawn. Therefore, there is no market value. On the other hand, if we treat interest of the appellant as one under the lease then it will continue for a maximum 32 years which remained at the time of acquisition and allowing for the maximum increase being permitted at the increased rent. Even the period of 32 years is a very short one compared to the perpetual lease. Therefore, it follows that a very small proportion of the compensation can be paid to the tenant and the major portion had to be paid to the owner. Another important aspect of this particular case is that the factory and the other land have remained intact even after the removal of the area taken under acquisition. We feel that in the circumstances the amount determined is payable to the tenant lessee and the remaining to the owner seems a fair one and we have not been able to find any superior ratio or other reasoning which would help us to give a different ratio."
Ajay Sethi
Advocate, Mumbai
45570 Answers
2677 Consultations

5.0 on 5.0

Is it a public or private trust? Has the trust not initiated legal proceedings to prevent the acquisition of the property? The notice has to be perused but as tenants you also have the right to take out the required legal proceedings to stop the acquisition. Lay the notice before a lawyer to chalk out further recourse. 
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

The notice to acquire the property by Municipality for public purpose reservation should accompany a government order or a reference about it in the GO number mentioned and the compensation for the acquisition. 
As a lease holder or lessee you also can obtain an injunction to this decision to acquire or you may seek compensation from the authorities for the losses you would incur due to this.Being a life time leasehold, you will certainly incur heavy loss for which you may give a detailed pleading before court seeking relief and remedy. 
T Kalaiselvan
Advocate, Vellore
35723 Answers
387 Consultations

5.0 on 5.0

you should inquire about notification of acquisition from collector's office. if part of the trust property comes under acquisition you can challenge it before the collector. according to land acquisition act part of the property cannot be acquired, in this case either whole property is acquired or that property will be excluded from the notification. this is the only ground for challenge. 
Shivendra Pratap Singh
Advocate, Lucknow
5066 Answers
78 Consultations

4.9 on 5.0

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