BIHAR INDUSTRIAL AREA DEVELOPMENT AUTHORITY & ORS. versus AMIT KUMAR & ORS.

BIHAR INDUSTRIAL AREA DEVELOPMENT AUTHORITY & ORS. versus AMIT KUMAR & ORS.

The policy of BIADA fixing the cost of the land on the basis of the circle rate applicable is legal and valid; BIADA is entitled to recover a reasonable portion of the unearned increase assessed on the basis of the circle rate where market value exceeds the allotment price.

Parties
Appellant: Bihar Industrial Area Development Authority & Ors.; Respondent: Amit Kumar & Ors.
Jurisdiction
India
Judgment Date
22 October 2019
Procedural Posture
Civil Appeal / Appeal to the Supreme Court; Judgment on Appeal
Outcome
Appeal disposed of; question of law decided in favour of appellant in respect of entitlement to recover unearned increase on basis of circle rate; case-specific directions and remittals issued.
Legal Topics
Recovery of Unearned Increase, Transfer of Leasehold Rights, Assessment Based on Circle Rate
Industrial Development Property Law Administrative Law Recovery of Unearned Increase Transfer of Leasehold Rights Assessment Based on Circle Rate

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Parties

Bihar Industrial Area Development Authority & Ors.

Appellant

Amit Kumar & Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal to the Supreme Court; Judgment on Appeal

Legal Issues

  1. 1 Whether BIADA is entitled to recover unearned increase on the basis of circle rate/market value of the land or only on the basis of the BIADA allotment value plus development charges

Ratio Decidendi

The policy of BIADA fixing the cost of the land on the basis of the circle rate applicable is legal and valid; BIADA is entitled to recover a reasonable portion of the unearned increase assessed on the basis of the circle rate where market value exceeds the allotment price.

Court Disposition

Appeal disposed of; question of law decided in favour of appellant in respect of entitlement to recover unearned increase on basis of circle rate; case-specific directions and remittals issued.

Orders

  • Held that the policy of BIADA fixing the cost of the land on the basis of the circle rate applicable is legal and valid.
  • Civil Appeal No.8219 of 2019: though question of law decided for appellant, the arrangement made by the Patna High Court order dated 09.03.2010 shall not be disturbed and BIADA shall not recover any amount from the respondent in that case.