Summary
The Court upheld BIADA’s policy assessing its share of unearned increase on transferred industrial land by reference to the applicable circle rate, rather than merely the original allotment price plus development charges. Valuation was to relate to the date of transfer. Relief varied between the appeals because of earlier protection, payments already made and an unresolved shareholding question.
Issues
- Whether BIADA could assess unearned increase using the circle rate and which date governed valuation.
- What relief followed in the individual appeals.
Provisions considered
- Clauses 4(i) and 4(ii), Industrial lease deedAssignment and changes in the lessee’s constitution required prior consent, forming the setting for transfer charges. (¶¶ 3, 4)
Held
- BIADA could receive a reasonable portion of the unearned increase in land originally allotted at low or subsidised rates. Its circle-rate policy was valid; the charge concerned land value, excluding machinery, goodwill and other components of the industrial transaction. (¶¶ 10, 11)
- The relevant land value was that at the date of transfer. In the amalgamation matter, the Court nevertheless declined to reopen the principal payment already made and confined further recovery to specified interest. (¶¶ 14, 15)
- In Appeal 8219, an earlier High Court direction protecting the arrangement prevented further recovery despite BIADA succeeding on the legal question. In Appeal 8221, the initial shareholding in the transferee company required factual determination under the stated policy, so the writ petition was restored for that purpose. (¶¶ 12, 17)
Result
The appeals were disposed of with separate directions. No recovery was permitted in Appeal 8219. The specified Rs.4,25,250 payment carried 9% interest from 10 March 2005 to 14 April 2007, payable within two months, followed by execution of the lease within two further months. Appeal 8222 was disposed of accordingly. Appeal 8221 was remitted to the High Court to determine the initial shareholding and resulting transfer-charge liability.