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Smart Summary

Summary of Opinion: Revision Application in a Land Acquisition Matter (Order of V.B. Raju, J.)

Factual and Procedural Background

This opinion arises from a Land Acquisition case in which the Collector made a reference to the District Court at Bhuj under the Land Acquisition Act. The learned District Judge refused to hear the reference, holding that the reference was barred by time and that it was not a valid reference. The Collector's reference therefore was rejected by the District Court on limitation/validity grounds, and the aggrieved party filed the present revision application challenging that refusal.

The applicant's principal contention in the revision application was that once a reference is made by the Collector under Section 19 of the Land Acquisition Act the District Court lacks jurisdiction to decide whether the reference was within limitation or conformed with the provisions of Section 18. The opponent disputed this proposition and relied on authorities to the contrary. The Court framed and analysed the issue by reference to Sections 18, 19 and 20 of the Land Acquisition Act and by examining conflicting High Court decisions.

Legal Issues Presented

  1. Whether, once the Collector makes a reference under Section 19 of the Land Acquisition Act, the District Court has jurisdiction to determine the validity of that reference (in particular whether it is within the time-limits or otherwise in conformity with Section 18).
  2. Whether the District Court may go behind the Collector's reference to inquire into compliance with conditions prescribed by Section 18 before exercising jurisdiction under Part III (Section 20) of the Act.

Arguments of the Parties

Applicant's Arguments

  • Once the Collector makes a reference under Section 19, the District Court has no jurisdiction to decide whether the reference is within limitation or whether it conformed with Section 18 of the Land Acquisition Act.
  • The applicant relied on a number of authorities in support of this proposition (see Table of Precedents below as cited in the opinion).

Opponent's Arguments

  • The opponent disputed the applicant's proposition and relied on High Court decisions (including Mahadeo Krishna v. Mamialdar of Alibag and related authorities) that supported the view that the Court must satisfy itself that the conditions in Section 18 have been complied with before entertaining the reference.
  • The opponent relied on the conflict of opinion in the High Courts to support the District Court's power to examine the validity/limitation of the reference.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hari Krishan v. State of Pepsu, AIR 1958 Punj 490 Relied on by the applicant in support of the proposition that once reference is made under Section 19 the District Court cannot decide limitation/Section 18 conformity. The Court records that the applicant relied on this authority; no further detailed treatment of its ratio is given in the opinion.
Venkateswaraswami v. Sub-Collector, Pezwada, AIR 1943 Mad 327 Authority cited as supporting the proposition that the District Court should accept the Collector's determination and not go behind the reference. The Court notes this authority as one that has favoured the view that the District Court is bound to accept the Collector's conclusion on whether a reference was justified.
Secretary of State v. Bhag-wan Prasao, ILR 52 All 96 : AIR 1929 All 769 Cited among authorities bearing on whether the District Court may go behind a Collector's reference. The Court records this case as part of the body of decisions on the point; it is treated as one of the authorities supporting the proposition that the Court cannot go behind the Collector's decision.
Secretary of State v. Bhagwan Prasad, AIR 1932 All 597 Cited in the list of authorities relied upon by the applicant. The opinion records the citation but does not elaborate further on the specific application of this authority.
Mahadeo Krishna v. Mamialdar of Alibag, ILR 1944 Bom 90 : (AIR 1944 Bom 200) Relied on by the opponent; holds that Section 18 prescribes conditions precedent for the right of a reference and that those conditions must be satisfied before the Court can have jurisdiction to entertain the reference. The Court discusses this Bombay decision at length, treats its observations as persuasive but ultimately distinguishes it on its facts and regards some observations as obiter; the Court disagrees with its holding as a general proposition for the present facts.
G. J. Desai v. Abdul Mazid Kadri, 53 Bom LR 257 : (AIR 1951 Bom 1561) Cited by the opponent in support of the proposition that the Court may examine validity of a reference. The Court notes the citation as part of the opponent's reliance; the opinion does not expand on a detailed application of its ratio.
ILR 30 Bom 275 (In the matter of Government and Nanu Kothare) (FB) Contains the view (per Justice Chandavarkar) that the Court is bound to satisfy itself that the conditions in Section 18 have been complied with before entertaining a reference. The Court engages with this decision, recognises its reasoning, but finds it difficult to agree that the Section 18 conditions are conditions precedent to the exercise of the District Court's jurisdiction; distinguishes it on procedural posture and original-side aspects.
Nusserwanjee Pestonjee v. Meer Mynoo-deen Khan, (1865) 6 Mod Ind App 134 (PC) Principle quoted: where jurisdiction is given upon specified terms those terms must be complied with to create jurisdiction; compliance may be substantial so as to be intelligible and clear. The Court quotes this authority to state the general principle about jurisdictional conditions, but then uses it in the context of distinguishing the roles of Collector and Court (i.e., Section 18 conditions are for the Collector; Section 20 prescribes the Court's action upon reference).
Sukhbir Singh v. Secretary of State, ILR 49 All 212 : AIR 1926 All 766 Cited as following the principle in ILR 30 Bom 275 that a reference without the requisite application is not a valid reference. The Court records this as part of the body of decisions that have taken the view that non-compliance with Section 18 vitiates a reference; it is discussed as forming part of the conflict of authority.
Mangalbhai Revabhai v. Kalyanpuri, Civil Revision Application No. 1122 of 1960 (Guj) Judge's own earlier judgment cited for the proposition that a High Court is not bound by another High Court's decisions except the Supreme Court. The Court refers to its own prior judgment to support the view that judgments of other High Courts are not strictly binding on this High Court.

Court's Reasoning and Analysis

The Court's analysis proceeds from the statutory text. The judge set out the relevant provisions of the Land Acquisition Act:

  • Section 18 describes the procedure by which a person interested who has not accepted the award may, by written application to the Collector, require that the matter be referred to the Court, and prescribes the grounds and time-limits for such application.
  • Section 19 prescribes what the Collector must state in his written statement to the Court when making the reference (situation and extent of land, names of persons he thinks interested, amounts awarded/paid/tendered, grounds for amount of compensation if objection to amount, and an attached schedule of notices/statements).
  • Section 20 provides that upon a reference being made the Court shall thereupon cause a notice specifying the day on which it will proceed to determine the objection etc., and sets out the Court's action after receipt of a reference.

From these provisions the Court draws a distinction between:

  • Conditions prescribed by Section 18 as conditions which affect the Collector's power to make a reference (i.e., conditions precedent to the Collector's exercise of power to refer); and
  • The fact of a reference being made under Section 19 as the event that gives the District Court jurisdiction under Part III (and triggers the mandatory duties of Section 20).

The Court reasons that in making a reference the Collector is required to state the matters specified in Section 19, and it is not necessary for that statement to recite whether a written application under Section 18 was made or whether any time-limit in Section 18 was complied with. The judge held that the District Court's jurisdiction under Section 20 arises "upon a reference being made" and that Section 20 is mandatory — when a reference is received the Court must act as provided in Section 20.

The Court rejected the proposition that the District Court, while exercising jurisdiction under Part III, may adjudicate upon the validity of that reference as a jurisdictional foundation. The judge analogised the situation to a judicial officer denying the validity of the instrument that gives the court its power, saying the Court cannot decide the validity of the very thing that gives it jurisdiction.

The opinion engages with conflicting High Court authorities (notably ILR 30 Bom 275 and ILR 1944 Bom 90) that held the Court must satisfy itself that Section 18 conditions were complied with. The judge reviews the reasoning in those decisions, quotes the Privy Council principle (Nusserwanjee Pestonjee) that jurisdictional terms must be complied with (substantially), but ultimately distinguishes those decisions on facts and procedural posture. The Court finds the view that Section 18 conditions are conditions precedent to the exercise of the District Court's Part III powers to be incorrect in principle: those are conditions precedent to the Collector's power to refer, not to the Court's receipt and action on a reference under Section 20.

The Court also said that if a party wished to challenge the validity of the reference other fora exist: the District Court might decide validity if exercising jurisdiction apart from the reference; a Civil Court in original jurisdiction or the High Court exercising constitutional powers or a suit under Section 45 Specific Relief Act could be used to determine whether a reference was wrongly made or refused. But a Court whose jurisdiction arises solely upon a reference cannot hold the reference invalid as a preliminary matter when exercising Part III powers.

Holding and Implications

Core Ruling: The revision application is allowed; the order of the District Judge setting aside the Collector's reference on the ground of limitation/invalidity is set aside, and the District Judge is directed to hear the reference in the manner provided in Part III of the Land Acquisition Act.

Direct consequences for the parties:

  • The District Court's order that the Collector's reference was out of time is quashed and set aside.
  • The District Judge at Bhuj is directed to hear the reference under Part III of the Act (i.e., to proceed under the procedures mandated by Section 20 and the rest of Part III).
  • The revision application is allowed with costs (the applicant awarded costs).

Broader implications noted by the Court: the opinion rejects the view (expressed in certain Bombay and Allahabad High Court decisions) that the District Court may, as part of its Part III jurisdiction, go behind the Collector's reference to inquire whether conditions of Section 18 were satisfied. The Court distinguishes those authorities on their facts and on principle and notes that only the Supreme Court's decisions are binding on a High Court.

This summary is prepared strictly from the content of the provided opinion. No information beyond the text of that opinion has been added.

    Shree Madansinhji Saheb Of Kutch v. State Of Gujarat

    ORDER V.B. Raju, J.

    1. In a Land Acquisition Case a reference was made by the Collector to the District Court at Bhuj. The learned District Judge rejected the reference holding that it was barred by time and that that was not a valid reference. He, therefore, refused to hear the reference and hence this revision application. It is contended by-the learned counsel for the applicant that once a reference is made by a Collector under Section 19 of the Land Acquisition Act to the District Court, the District Court has no-jurisdiction to decide whether the reference is within limitation or whether the reference was in conformity with the provisions of Section 18 of the Land Acquisition Act.

    2. In support of this contention, the learned counsal for the applicant relies on Hari Krishan v. State of pepsu; AIR 1958 Punj 490, Venkateswaraswami v. Sub-Collector, Pezwada, AIR 1943 Mad 327, Secretary of State v. Bhag-wan Prasao, ILR 52 All 96: AIR 1929 All 769, and Secretary of State v. Bhagwan Prasad, AIR 1932 All 597. But the learned counsel for the opponent disputes this proposition and relied on Mahadeo Krishna v. Mamialdar of Alibag, ILR 1944 Bom 90 : (AIR 1944 Bom 200) G. J. Desai v. Abdul Mazid Kadri, 53 Bom LR 257: (AIR 1951 Bom 1561 and In the matter of Government and Nanu Kothare, ILR 30 Bom 275 (FB). To decide this point, it is necessary to refer to the relevant provisions of the Land Acquisition Act. Section 18 reads as follows:

    Reference to Court:-- (1) Any person interested, who has not accepted the award may, by written application to the Collector, require that the matter be referred by the Collector for the determination of the Court, whether his objection be to the measurement of me land, the amount of the compensation, the persons to whom it is payable or the apportionment of the compensation among the persons Interested.

    (2) The application shall state the grounds on which objection to the award is taken;

    Provided that every such application shall be made:--

    (a) If the person making it was present or re presented before the Collector at yhe time when he made his award within six weeks from the date of the Collector's award .

    (b) in other cases, within six weeks of the receipt of the notice from the Collector under Section 12, Sub-section (2), or within six months from the date of the Collector's award, whichever period shall first expire."

    Section 19 of the Act reads as follows:

    "Collector's statement to the Court.-- (1) In making the reference, the Collector shall state for the information of the Court, in writing under his hand-

    (a) the situation and extent of the land, with parculars of any trees, buildings or standing crops thereon;

    (b) the names of the persons who he has reason to think are interested in such land;

    (c) the amount awarded for damages and paid or tendered under Sections 5 and 17, or either of them, and the amount of compensation awarded under Section 11; and

    (d) if the objection be to the amount of the compensation, the grounds on which the amount of compensation was determined.

    2. To the said statement shall be attached a schedule giving the particulars of the notices served upon, and of the statements in writing made, or delivered by the parties interested respectively."

    Section 20 of the Act reads as follows:

    deciding the objection itself, the Collector who has administratively passed an award makes a reference to the Judicial Court. In making a reference, he has only got to state the points mentioned in Section 19 of the Act. It is not necessary for him to set out whether a written application has been given to the Collector under Section 18 or that the application that was given to him was made within six weeks from the date of the Collector's award or within six weeks of the receipt of the notice as stated in Section 18.

    4. Even when it is held that the District Court has jurisdiction to determine whether the collector acted rightly in making a reference or not, the District court will have to call for materials to decide that point from the Collector. The District Court has no such powers to call, the Collector to furnish the materials outside the ambit of Section 19 of the Act.

    5. Moreover, Section 20 of the Act is mandatory. Alter a reference is received, the Court has got to act as provided in Section 20. The Court has no option but to act under Section 20 after a reference has been received.

    6. The District Court gets jurisdiction under Part III of the Act only upon a reference being made and by exercising such a jurisdiction, the Court cannot say that what gave it jurisdiction is itself Invalid, it is the reference made under Section 19 that gave jurisdiction to the District Court to proceed under part III. While exercising jurisdiction under Section 20 of the Act, the District Court cannot say that the reference which gives the District Court jurisdiction is itself invalid. It would be like a High Court Judge saying that the High Court Charter creating the High Court is itself invalid.

    7. It is, however, necessary to consider the weighty reasons given in ILR 30 Bom 275 (FB) and ILR 1944 Bom 90 : (AIR 1944 Bom 200). In this Bombay case reference is made to Section 18 of the Act and it is observed that this section prescribes the conditions for the right of a reference by the Collector to come into existence. They are the conditions to which the power of the collector to make a reference is subject. It is also observed that they are also the conditions which must be fulfilled De-fore the Court can have jurisdiction to entertain the reference. The following observations were made in this Bombay case :

    "Now, as was said by the Judicial Committee of the Privy Council in Nusserwanjee Pestonjee v. Meer Mynoo-deen Khan, (1865) 6 Mod Ind App 134 at p. 155 (PC)., "wherever jurisdiction is given to a Court by an Act ot Parliament, or by a Regulation in India (which has the same effect as an Act of Parliament}, and such jurisdiction is only given upon certain specified terms contained in the Regulation itself. It is a universal principle that these terms must be complied with, in order to create and raise the jurisdiction, for If they be not complied with the jurisdiction does not arise." The same case is also authority for the proposition that' the compliance need only be substantial so as to be "intelligible and clear"."

    This proposition is indisputable, but the question here is as to the jurisdiction of the District Court and not as to the jurisdiction of the Collector. If certain conditions are prescribed which were conditions precedent before the District Court can exercise its powers under the Land Acquisition Act, then It is the duty of the District Court to see that the conditions precedent have been fulfilled. Section 20 of the Act provides that and a reference is made, the Court shall cause a notice specifying the day on which the Court will proceed to determine the objection etc.....What the court has to do is to construe Section 20 of the Act. The only condition mentioned in Section 20 of the Act is to be gathered from the word "thereupon" and the word "thereupon" has been interpreted with reference to Section 19 which precedes Section 20 in which the word "thereupon" has been used, me effect of Section 20 is that upon a reference being made, the District Court shall exercise its powers as specified in Section 20. The only condition precedent, therefore, to the District Court exercising its powers is the fact that a reference is made. This is the only condition precedent. It would not be correct to speak of the conditions mentioned in Section 18 as amounting to conditions precedent to the District Court exercising its powers. The conditions mentioned in Section 18 are conditions precedent to the Collector exercising his powers of making a reference. They are not conditions precedent to the exercise of the District Court of its powers. If this distinction is borne in mind, the conclusion must be arrived at, namely, that the District Court can only see whether a reference has been made or not.

    8. In ILR 1944 Bom 90 : (AIR 1944 Bom 200) the question was considered. That case is distinguishable on facts because the Collector himself had requested the District Court to decide the question whether the application for a reference was within time or not. As the Collector himself did not decide the point and left it to the decision of the District Court, the District Court had to decide this question and the question whether the District Court had power to decide the point of limitation or not had not, therefore, clearly arisen for decision. However, the learned Judges of the Bombay High Court made the following observations on the point:

    "There has been a conflict of opinion in the High Courts in India on' that question. In In re. Land Acquisition Act, ILR 30 Bom 275, Mr. Justice Chandavarkar held that the Court was bound to go into the question wither the reference under Section 18 was in time. He held that the Court was not only entitled, but bound, to satisfy itself that the conditions laid down in Section 18 had been complied with. The principle acted upon in that case was followed by a bench of the Allahabad Hign Court in Sukhbir Singh v. Secretary of State, ILR 49 All 212 : (AIR 1926 All 766). In that case the collector had made a reference, although theie was no application before him such as is required by Section 18, and the Court held that that being so, there was no valid reference, But in a later case, which came before another bench or the Allahabad Nigh Court, ILR 52 All 96 : (AIR 1929 All 769), the Court held that it was not open to the District Court under Section 18 to go behind the reference, tnat it was for the Collector to decide whether the conditions justifying a reference had been complied with, and if he thought that they had been, the Court was bound to accept that conclusion. That view has found favour witn a single Judge in the Madras High Court in AIR 1943 Mad 327.

    There being a conflict in the High Courts, it is desirable to consider the matter afresh. Section 18(1) provides that any person interested who has not accepted the award may, by written application to the collector, require that the matter be referred by the Collector for the determination of the Court, whether his objection be to the measurement of the land, the amount of the compensation, the person to whom it is payable, or the apportionment of the compensation among the persons interested. Then Sub-section (2) provides that the application shall state the grounds on which objection to the award is taken. Then there Is a proviso that every such application shall be made within the time specified. Then Section 13 provides the information which the reference is to contain. Section 20 provides that the Court shall thereupon cause a notice specifying the day on which the Court will proceed to determine the objection to be served, amongst others, on the applicant.

    The basis of the appellant's argument is that the Collector, acting under Section 18, is not a Court, or at any rate not a Court subordinate to the District Court or to this Court, and that the Court cannot interfere with his decision either in appeal or in revision. That, no doubt is true but that is not really the position. The Collector has power to make a reference on certain specified conditions. The first condition is that there shall be a written application by a person interested who has not accepted the award, the second condition is as to the nature of the objections which may be taken, and the third condition is as to the time within which the application shall be made. It seems to me that the court is bound to satisfy itself that the reference made by the Collector complies with the specified conditions, so as to give the Court jurisdiction to hear the reference. It is rot a question of the Court sitting in appeal or revision on the decision of the Collector; it is a question af the Court satisfying itself that the reference made under the Act is one which it is required to hear, it the reference does not comply with the terms of the Act, then the Court cannot entertain it. I have myself same difficulty in seeing on what principle the court is to be debarred from satisfying itself that the reference, which it is called upon to hear, is a valid reference. I am in entire agreement with the view expressed by Mr. Justice Chandavarkar that it is the duty of the Court to see that the statutory conditions have been compile a with."

    9. As already observed above, the District wart gets jurisdiction under S, 20 of the Act only upon a reference being made by the Collector under Section 19. While exercising its jurisdiction under Section 20 of the Act, the District Court cannot go into the question whether the reference made under Section 19 of the Act which along gives the District Court jurisdiction was itself valid or not. As already observed, it will be like a High Court Judge exercising jurisdiction over the High Court Charter to hold that the High Court Charter is itself invalid.

    10. It is of course open to Courts of law to decide about the validity or invalidity of certain matters; but the Court cannot decide the validity of that which gives it jurisdiction.

    11. The District Court can consider the question ct validity or Invalidity of the reference' made by the Collector if the District Court is exercising its ordinary jurisdiction apart from the reference made, [t is also open to a Court hearing an application or suit and under Section 45, Specific Relief Act, if applicable, to decide whether a reference was wrongly refused or was wrongly made. It would also be open to the High Court exercising its powers under the Constitution to decide whether the Collector wrongly refused to make a reference or wrongly made a reference. The Civil Court exercising its original jurisdiction may, if called upon to do so and if that question is necessary to be determined, decide the question whether the reference was validly made or not. But a Court which exercises its jurisdiction only upon a reference being made cannot decide that the reference is not validly made. Moreover part III of the Act enumerates the points which the District Court acting under part III of the Act can decide. The District Court exercising its jurisdiction under part III cannot decide any point not enumerated in part III of the Act. With great respect therefore, I find it very difficult, inspite of my best efforts to do so, to agree with the view taken in ILR 30 Born 275 and ILR 1944 Bom 90: (AIR 1944 Bom 200). The learned counsel for the opponent contended that the rule contained in ILR 1944 Bom 90: (AIR 1944 Bom 200) is binding upon this Court. I have already given lengthy reasons in my judgment in Mangalbhai Revabhai v. Kalyanpuri, Civil Revn. Appln. No. 1122 of 1960 (Guj). -- In my humble view no judgment except that of the Supreme Court is binding on High Court Judges.

    12. Further, as I have already pointed out above, ILR 1944 Bom 90; (AIR 1944 Bom 200) is distinguish on facts. There the Collector himself had asked the District Court to decide the question of limitation, me observations in this case are obiter but an the same are entitled to the most profound respect and consideration which I have given to them. The case reported in ILR 30 Bom 275 was one from the Original Side and there is no Original Side in the Gujarat High court.

    13. The District Court had, therefore, no right to hold that the reference was out of time. The order made by the learned District Judge, is, therefore, set aside and he is directed to hear the reference in the manner provided in part III of the Act. In view of this conclusion reached, it is not necessary to decide whether an oral notice is sufficient or whether a written notice is necessary and, in my view, for the reasons already given, that point cannot be decided by me in a revision application filed against the order of the District Court, whether I can decide such a point in a revision application filed upon the order of Collector need not be decided now.

    14. The application is allowed with costs.

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    Shree Madansinhji Saheb Of Kutch v. State Of Gujarat
    (Oct 13, 1962)