78. Abandonment of Acquisition in consideration of special payment. - (1) In any case in which the [State Government] has sanctioned the acquisition of land, in any area comprised in an improvement scheme, which is not required for the execution of the scheme, the owner of the land, or any person having an interest therein, may make an application to the Board, requesting that the acquisition of the land should be abandoned in consideration of the payment by him of a sum to be fixed by the Board in that behalf.
(2)The Board shall admit every such application if it -(a)reaches them before the time fixed by the Collector, under section 9 of the Land Acquisition Act, 1894, for making claims in reference to the land, and(b)is made by all persons who have interests in the land greater than a lease for years having seven years to run.(3)If the Board [* * *] admit any such application, they shall forthwith inform the Collector; and the Collector shall thereupon stay for a period of three months all further proceedings for the acquisition of the land, [and if the Board decide to allow the application they shall proceed] to fix the sum in consideration of which the acquisition of the land may be abandoned.(4)Within the said period of three months, or, with the permission of the Board, at any time before the Collector has taken possession of the land, under section 16 of the Land Acquisition Act, 1894, the person from whom the Board have arranged to accept the sum so fixed may, if the Board are satisfied that the security offered by him is sufficient, execute an agreement with the Board, either -(i)to pay the said sum three years after the date of the agreement, or(ii)to leave the said sum outstanding as a charge on his interest in the land, subject to the payment in perpetuity of interest [at such rate not exceeding [ten per cent, per annum] as the [State Government] may fix by notification,] and to make the first annual payment of such interest four years after the date of the agreement:Provided that the Board may, at any time before the Collector has taken possession of the land under section 16 of the Land Acquisition Act, 1894, accept immediate payment of the said sum instead of an agreement as aforesaid.(5)When any agreement has been executed in pursuance of sub-section (4), or when any payment has been accepted in pursuance of the proviso to that sub-section, in respect of any land, the proceedings for the acquisition of the land shall be deemed to be abandoned.(6)Every payment due from any person under any agreement executed under sub-section (4) shall be a charge on the interest of that person.(7)If any instalment of interest payable under an agreement executed in pursuance of clause (ii) of sub-section (4) be not paid on the date on which it is due, the sum fixed by the Board under sub-section (3) shall be payable on that date, in addition to the said instalment.(8)At any time after an agreement has been executed in pursuance of clause Hi) of sub-section (4), any person may pay off the charge created thereby, with interest, [at the rate fixed under the provisions of that clause] up to the date of such payment.(9)When an agreement in respect of any land has been executed by any person in pursuance of sub-section (4), no suit with respect to such agreement shall be brought against the Board by any other person (except an heir, executor or administrator of the person first aforesaid) claiming to have an interest in the land.[(10) Notwithstanding anything contained in clause (ii) of sub-section (4) or in sub-section (8) the rate of interest payable, under the provisions of that clause or that sub-section, as the case may be, shall be, or continue to be, four per cent, per annum in cases where the sum, in consideration of which the acquisition of the land has been abandoned, has been fixed under sub-section (3) before the date of the commencement of the Calcutta Improvement (Amendment) Act, 1923, and the agreement in respect of the payment of the same is executed before, on or within two months after, that date].[(11) Notwithstanding anything contained in clause (ii) of sub-section (4) or in sub-section (8), the rate of interest payable under the provisions of that clause or that sub-section, as the case may be, shall be, or continue to be, six per cent, per annum in cases where the sum, in consideration of which the acquisition of the land has been abandoned, has been fixed under sub-section (3) on or after the date of the commencement of the Calcutta Improvement (Amendment) Act, 1923, but before the date of the commencement of the Calcutta Improvement (Amendment) Act, 1934, and the agreement in respect of the payment of the same is executed during the period commencing with the date of the commencement of the Calcutta Improvement (Amendment) Act, 1923, and ending two months after the date of the commencement of the Calcutta Improvement (Amendment) Act, 1934].[(12) When an application has been made under sub-section (1) and the Board are of opinion that the whole or any part of the land belonging to the applicant is not required for the execution of the scheme but that it is necessary that some adjoining land should be purchased by the applicant and amalgamated with his land or the portion not so required, in order to conform to the general layout of the scheme, they may permit the applicant to execute an agreement to purchase the adjacent land abovementioned and may at the same time fix a fee in consideration of which the land not required for the execution of the scheme may be exempted from acquisition. The price of the land sold together with the sum fixed as exemption fee shall then be dealt with in the manner provided in sub-section (4), and if the whole sum payable or any part of it is kept outstanding, it shall he secured as a charge on the interest of the applicant in the total area of the land sold to the applicant and of the land exempted. Sub-sections (5), (7) and (8) shall apply to such agreements in the same manner as in the case of total abandonment under the foregoing provisions of this section].[Betterment Fee.][78A. Payment of betterment fee]. - (1) When by the making of any improvement scheme, any land in the area comprised in the scheme which is not required for the execution thereof will, in the opinion of the Board, be increased in value, the Board, in framing the scheme, may, in lieu of providing for the acquisition of such' land, declare that a betterment fee shall be payable by the owner of the land or any person having an interest therein in respect of the increase in value of the land resulting from the execution of the scheme.(2)Such betterment fee shall be an amount equal to one-half of the increase in value of the land resulting from the execution of the scheme, and shall be calculated upon the amount by which the value of the land on the completion of the execution of the scheme estimated as if the land were clear of buildings exceeds the value of the land prior to the execution of the scheme estimated in like manner.[78B. Assessment of betterment fee by Board]. - (1) When it appears to the Board that an improvement scheme is sufficiently advanced to enable the amount of the betterment fee to be determined, the Board shall by a resolution passed in this behalf declare that for the purpose of determining such fee the execution of the scheme shall be deemed to have been completed and shall thereupon give notice in writing to every person on whom a notice in respect of the land to be assessed has been served under clause (t) of sub-section (1) of section 45 that the Board propose to assess the amount of the betterment fee payable in respect of such land under section 78A.(2)The Board shall then assess the amount of betterment fee payable by each person concerned after giving such person an opportunity to be heard and such person shall within three months from the date of receipt of notice in writing of such assessment from the Board, inform the Board-by a declaration in writing whether he accepts or dissents from the assessment.(3)When the assessment proposed by the Board is accepted by the person concerned within the' period specified in sub-section (2), such assessment shall be final.(4)If the person concerned dissents from the assessment made by the Board or fails to given the Board the information required by sub-section (2) within the period specified therein, the matter shall be determined by arbitrators in the manner provided by section 78C.[78C. Settlement of betterment fee by arbitrators]. - (1) For the determination of the matter referred to in sub-section (4) of section 78B, the [State Government] shall constitute a penal of arbitrators consisting of two parts, the first part of which shall be composed of persons having special knowledge of the valuation of land and the second part of other suitable persons.(2)When the Board have, in accordance with the provisions of section 78B, assessed the amount of betterment fee payable by all persons in respect of land in the area comprised in the scheme the Board shall serve a notice on all those persons who have dissented from the assessment made by the Board, requiring them to meet at such time and place as may be fixed by the Chairman for the purpose of electing an arbitrator.(3)For each scheme there shall be a body of two arbitrators, one of whom shall be elected by vote by the persons present at the meeting referred to in sub-section (2) from one part of the panel, and the other shall be appointed by the [State Government] from the other part of the panel:Provided that for the purposes of a particular scheme the Words substituted by the Adaptation of Laws order, 1950. [State Government] may, prior to the election referred to in this sub-section, if it thinks fit, modify either part of the panel.(4)In the event of a difference of opinion on any matter between the two arbitrators, a third arbitrator [who shall act as an umpire] shall be selected by lot from the first part of the panel, and [the decision of the umpire on the matter shall be final],(5)If an arbitrator dies, resigns, becomes disqualified, is removed under sub-section (6), or refuses to perform or in the opinion of the [State Government] neglects to perform or becomes incapable of performing his functions, the authority who elected or appointed him shall forthwith elect or appoint a fit person to take the place of such arbitrator.(6)If the [State Government] is satisfied after such inquiry as it thinks fit that the arbitrator has misconducted himself, it may remove him.(7)When [an award has been made under and this section by the arbitrators or the umpire, as the case may be,] they shall sign it and forward it to the Board, and such award shall subject to the provisions of sub-section (8) be final and conclusive and binding on all persons.(8)If the [State Government] is satisfied after such inquiry as it thinks fit that an award has been improperly procured or that an arbitrator has misconducted himself in connection with an award, the [state Government] may set aside the award.[78D. Fees for arbitrators]. - The Board shall pay to each arbitrator a fee to be determined by the [State Government] in respect of the whole of the scheme for which his services are utilized.[78E. Proceedings of arbitrators].-Notwithstanding anything contained in any other enactment the proceedings of arbitrators under section 78C shall be governed by rules to be made in this behalf under section 137:Provided that every party to such proceedings shall be entitled to appear before the arbitrators either in person or by his authorized agent.[78F. Board to give notice to persons liable to payment of betterment fee].-When the amount of all betterment fees payable in respect of land in the area comprised in the scheme has been determined under section 78B or section 78C, as the case may be, the Board shall, by a notice in writing to be served on all persons liable to such payment, fix a date by which such payment shall be made, and interest, at the rate of [ten per cent, per annum] upon any amount outstanding shall be payable from that date.[78G. Agreement to make payment of betterment fee a charge on land]. - (1) Any person liable to the payment of a betterment fee may, at his option, instead of making a payment thereof to the Board, execute an agreement with the Board to leave the said payment outstanding as a charge on his interest in the land, subject to the payment in perpetuity of interest at the rate of [ten per cent per annum] the first annual payment of such interest to be made one year from the date referred to in section 78F.(2)Every payment due from any person in respect of a betterment fee and every charge referred to in sub-section (1) shall, notwithstanding anything contained in any other enactment and notwithstanding the existence of any mortgage or other charge whether legal or equitable created either before or after the commencement of the Calcutta Improvement (Amendment) Act, 1931, be the first charge upon the interest of such person in such land.(3)The provisions of sub-sections (7), (8) and (9) of section 78 relating, in the case of the payments mentioned in that section, to the non-payment of instalments of interest, the paying off of the charge with interest, and the restrictions in respect of suits against the Board shall apply, mutatis mutandis, to the payment of the money payable under an agreement made in pursuance of sub-section (1) and of the interest payable in respect thereof.[Recovery of special payments and betterment fees.]
