Login
  • Bookmark
  • PDF
  • Share
  • CaseIQ

Tarwadi Ravishanker Mohanlal v. Collector, Panchmahals .

Gujarat High Court
Jun 21, 1968
Important Paras
Please sign up to view Important Paras.
Smart Summary (Beta)

Analytical Summary of the Opinion — Land Acquisition References Nos. 9 & 14 of 1961

Factual and Procedural Background

These two appeals arise from an order dated 20 June 1962 of the Civil Judge (Senior Division), Godhra, disposing of Land Acquisition References Nos. 9 and 14 of 1961 (para 1). Both references were heard with other references and a common judgment was recorded in Reference No. 13 of 1961.

In Reference No. 9 the claimant sought compensation for 14 mango trees (11 in Survey No. 52/9, Tankivaju; 3 in Survey No. 217/1/2, Garbada) and did not claim ownership of the lands; she asked for Rs. 150 per tree plus 15% solatium under Section 23 of the Land Acquisition Act (para 2). In Reference No. 14 the claimant sought Rs. 150 for one mango tree (Survey No. 451/3, Garbada), claiming Rs. 172.50 inclusive of 15% solatium (para 3).

The Special Land Acquisition Officer, Halol, by award dated 12 March 1958 valued each mango tree at Rs. 50 and awarded Rs. 50 plus 15% solatium per tree. The claimants made references under Section 18 to the District Court, Panchmahals at Godhra, dissatisfied with the Land Acquisition Officer's award (para 4).

The Civil Judge (S.D.), on the material before him, concluded that the claimants had admitted in evidence that they had not made the higher claim before the Land Acquisition Officer and held that Section 25(2) barred any award exceeding the Collector's award. He also found that the lands were submerged by the time the Section 4 notification was published and that the trees were not standing on the date of publication, and accordingly rejected the claims, confirming the Land Acquisition Officer's award (para 4). The Civil Judge, however, added that if those findings were incorrect the claimants would be entitled to Rs. 150 per tree plus 15% solatium (para 4).

Legal Issues Presented

  1. Whether the appellants' additional claims for higher compensation are barred by Section 25(2) of the Land Acquisition Act given their admissions in evidence (para 5).
  2. Whether the fact that the lands (and trees) were submerged by the time the Section 4 notification was published means the trees were not "standing" and thus not entitled to compensation (para 4, para 6).
  3. Whether compensation for trees falls under clause "firstly" (market value of land at date of notification) of Section 23(1), making the claim subject to the 15% solatium in Section 23(2), or whether it is a damage under clause "secondly" (para 8–9, para 15–19).

Arguments of the Parties

Respondent's Arguments (as presented by Mr. Desai, Government Pleader)

  • The claimants had admitted in evidence that they had not made the higher claims before the Land Acquisition Officer; therefore, Section 25(2) bars the Court from awarding an amount in excess of the Collector's award (para 5).
  • The trees were submerged by the time the Section 4 notification was published; hence the trees were not "standing" on the relevant date and are not entitled to compensation (para 6).
  • The compensation for trees is in the nature of damages falling under clause "secondly" of Section 23(1); consequently Section 23(2) (the 15% solatium) does not apply — relying on Collector, Raigarh v. Chaturbhuj Pande (AIR 1964 Madh Pra 196) (para 8–13).

Appellants' Position (as reflected in the record)

  • The appellants claimed Rs. 150 per tree plus 15% solatium under Section 23 (paras 2–3).
  • The record also shows that in evidence the claimants admitted they had not made such claims before the Land Acquisition Officer (para 4); beyond this factual admission the opinion does not set out a developed adversarial argument by the claimants on these specific legal points.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Collector, Raigarh v. Chaturbhuj Pande, AIR 1964 Madh Pra 196 Held that the additional 15% under Section 23(2) is available only on items covered by clause "firstly" and not on damages covered by clauses "secondly" to "sixthly"; amounts awarded as damages under those clauses are not to be increased by 15% (para 12–13). The court considered this decision and explicitly disagreed with it, finding that it had not considered the effect of both clauses (para 11) and preferring the approach of other High Courts which treat trees as part of "land" for Section 23(1) and hence eligible for solatium under Section 23(2) (para 11, para 19).
Sub-Collector of Godavari v. Seragam Subbaroyadu, (1907) ILR 30 Mad 151 Held trees are "things attached to the earth" within the definition of "land" in Section 3(a) and that the value of such trees present when the declaration is made is included in the market value of the land for the purpose of the 15% under Section 23(2) (para 20). The court relied on and followed this view as supportive authority for treating trees as part of the land and, therefore, for awarding solatium under Section 23(2) on their market-value component (para 20).
Collector of Bareilly v. Sultan Ahmad Khan, AIR 1926 All 689 Held that damage for taking trees under clause "secondly" is independent of the market value of the land and of the "value" of trees as part of the market value (para 20). The court cited this decision as supporting the proposition that clause "secondly" deals with a distinct head (damage between declaration and possession) and that trees forming part of the land at the date of notification are covered by clause "firstly" (para 20).
Bhusan Chandra Samanta v. Secretary of State for India in Council, (1936) 40 Cal WN 1034 Considered clause "secondly" of Section 23(1) and held that it contemplates the value of crops or trees grown on the land between the date of declaration of intention to acquire and the date of the Collector taking possession — an independent head from clause "firstly" (para 20). The court relied on this decision to show that clause "secondly" covers growth between declaration and possession and is therefore separate from market-value compensation at the date of notification covered by clause "firstly", reinforcing the conclusion that trees present at the date of notification fall under clause "firstly" and attract Section 23(2) solatium (para 20).

Court's Reasoning and Analysis

The opinion addresses three interrelated legal questions and applies statutory text and precedents to each.

On Section 25(2) (bar where claimant omitted to claim before Collector):

  • The court analysed Section 25 as a two-step scheme: subsection (1) presupposes that a notice under Section 9 was served enabling an applicant to make a claim; subsection (2) operates where the applicant refused or omitted to make such claim (para 9; paras 6–7 reproducing the statutory text).
  • The court emphasised that before invoking the bar under Section 25(2) the Government must show that the notice required by Section 9 was served on the claimant; the materials on record contained nothing to show that the required Section 9 notice had been served (para 9).
  • Further, no plea was taken in the written statement asserting the Section 25(2) bar, and the trial court did not frame any issue on this point — depriving the claimants of the opportunity to meet the plea or to show "sufficient reason" for omission (para 9).
  • The court concluded that it would be inappropriate to act solely upon an oral admission in evidence that the claimant did not make the higher claim before the Land Acquisition Officer, when the statutory preconditions for applying Section 25(2) (notice under Section 9, raised as a pleaded and contested issue, and established by evidence) were not shown to have been satisfied (para 9).

On submergence of land and existence of trees:

  • The trial court's finding that the trees did not exist for compensation purposes because the land was submerged at the time of publication of Section 4 notification was examined (para 6).
  • The opinion reasons that the trees were on the land, albeit submerged, and that mere submergence does not negate their existence as things attached to the earth; therefore submergence alone does not justify rejecting claims (para 6).
  • Again, the court noted that no plea or issue was raised about submergence at trial, so it was procedurally improper for the court to reject claims on that ground without enabling focused evidence on the point (para 6).

On applicability of Section 23(2) solatium to trees:

  • The crucial interpretive question was whether compensation for trees falls under clause "firstly" of Section 23(1) (market value at the date of publication of Section 4 notification) or under clause "secondly" (damage for taking standing crops or trees at the time of Collector's taking possession) (para 8–9, para 15–19).
  • The court relied on the statutory definition of "land" in Section 3(a), which includes "things attached to the earth or permanently fastened to anything attached to the earth," and concluded that trees are "things attached to the earth" and therefore form part of the land for the purpose of clause "firstly" (para 18–19).
  • The court analysed clause "secondly" and found it contemplates damages for crops or trees that may arise between declaration and possession (a different period from the date of notification in clause "firstly"), making clause "secondly" an independent head of damage for new growth or similar post-notification losses (para 19).
  • On this basis the court held that trees standing on the land at the date of the Section 4 notification fall within clause "firstly" and therefore the market-value component of compensation for such trees attracts the 15% solatium under Section 23(2) (para 19).
  • The court considered and rejected the contrary Madhya Pradesh High Court decision relied on by the respondent (Collector, Raigarh v. Chaturbhuj Pande) as not having addressed the interplay of both clauses or the relevant authorities; it followed earlier High Court decisions (Madras, Allahabad, Calcutta decisions cited) holding that solatium must be awarded on compensation for trees forming part of the land (para 11, para 20).

Holding and Implications

The Court held that the trial judge erred in (a) treating the appellants' additional claims as barred by Section 25(2) of the Land Acquisition Act, and (b) rejecting the claims on the ground that the trees were submerged and therefore not "standing" at the date of the Section 4 notification; further, the Court held that compensation for trees which form part of the land at the date of the notification falls under clause "firstly" of Section 23(1) and thus attracts the 15% solatium under Section 23(2). (See paras 9, 6, 18–19, 11.)

Implications:

  • Direct effect on the parties: The reasons relied on by the trial court to reject the higher claims — the asserted bar under Section 25(2) (without evidence of service of the Section 9 notice or a pleaded issue) and the submergence finding — were held erroneous; accordingly, the claimants' entitlement to press their claims (including a claim under clause "firstly" for trees) cannot be dismissed on those bases (paras 9, 6, 19).
  • The court endorsed the view that trees present on land at the date of notification are part of the land for market-value purposes and therefore the market-value component of compensation for such trees attracts the 15% solatium under Section 23(2) (paras 18–20).
  • On precedent: the court expressly disagreed with the Madhya Pradesh High Court decision cited by the respondent and followed the contrary line of authority from other High Courts; the opinion therefore aligns the present decision with those earlier authorities (para 11, para 20).
  • No new statutory principle beyond the interpretive conclusions set out above is announced; the court's conclusions depend on statutory construction and the authorities cited rather than creating a novel rule of law beyond what is discussed in the opinion.

Note: This summary strictly follows the reasoning and statements contained in the provided opinion. It does not attempt to describe any subsequent order or final disposition beyond what is stated in the text.

Show all summary ...

1. These two appeals arise out of an order passed on 20th June 1962 by Mr. T. P. Shah, Civil Judge, Senior Division, Godhra in Land Acquisition References Nos. 9 and 14 of 1961 respectively. These two References were heard along with three others and a common judgment was recorded in Land Acquisition Reference No. 13 of 1961.

2. The claimant in Land Acquisition Reference No. 9 of : 1961 (the appellant in First Appeal No. 63 of 1963) had claimed compensation for 14 mango trees of which 11 were in Survey No. 52/9 in Tankivaju and 3 in Survey No. 217/1/2 in village Garbada. She did not claim any ownership over those lands and her claim was in respect of those mango trees only. She claimed Rs. 150/- per tree together with solatium at the rate of 15% under Section 23 of the Land Acquisition Act.

3. The claimant in Land Acquisition Reference No. 14 of 1961 (the appellant in First Appeal No. 576 of 1962} claimed Rs. 150/- in respect of one mango tree standing on Survey No. 451/3 in village Garbada. He had, thus, claimed Rs. 172-50 np. including solatium at the rate of 15%.

4. The Special Land Acquisition Officer, Halol, by his award dated 12th March 1958 valued each mango tree at the rate of Rs. 50/- and he accordingly allowed compensation for these mango trees at the rate of Rs. 50/- together with solatium at the rate of 15% thereon. Feeling dissatisfied with that part of the award, the two claimants got the references made under Section 18 of the Act to the District Court, Panchmahals at Godhra, in respect of the claims disallowed by the Special Land Acquisition Officer, Halol. These two references along with three others were heard by the Civil Judge (S. D.) Godhra to whom those matters had been transferred by the District Judge. On a consideration of the evidence before him, he found that since the claimants admitted before him to have not made any claim of compensation in respect of the trees in question, they were not entitled to claim anything more than what was already awarded by the Land Acquisition Officer in view of Section 25(2) of the Land Acquisition Act. He also found that the lands on which those trees were standing were submerged in water by the time when the notification under section 4 was published and since those trees were not standing on the date of the publication of notification under Section 4 of the Act, they were not entitled to claim any compensation in respect of those trees. In those circumstances, he rejected the claims and confirmed the award passed in respect thereof by the Land Acquisition Officer. However, he has stated that in the event of his findings so recorded being not correct and in case the claimants are entitled to compensation in respect of those trees, they would be entitled to at the rate of Rs. 150/- per mango tree. They would be also entitled to solatium at the rate of 15% on that amount.

5. It was urged by Mr. Desai, the learned Govt. Pleader for the respondent, that in view of the claimants having admitted in evidence about their having not made any such claims before the Land Acquisition Officer, it was not open to them to claim any additional amount by way of compensation having regard to Section 25(2) of the Act. The question that, therefore, arises to be considered is, as to whether the claim made out by the appellants is barred by reason of Section 25(2) of the Land Acquisition Act. Before we consider that point, it is essential to set out section 25 of the Land Acquisition Act, hereinafter to be referred to as 'the Act'. It runs thus:--

"25. (1) When the applicant has made a claim to compensation, pursuant to any notice given under Section 9, the amount awarded to him by the Court shall not exceed the amount so claimed or be less than the amount awarded by the Collector under Section 11.

(2) When the applicant has refused to make such claim or has omitted without sufficient reason (to be allowed by the Judge) to make such claim, the amount awarded by the Court shall in no case exceed the amount awarded by the Collector.

* * * * *"

It follows therefrom that Sub-section (2) of Section 25 of the Act would operate in case Sub-section (1) is complied with. Sub-section (1) of Section 25 requires that a notice under Section 9 must have been served on any such applicant in order to enable him to make a claim for compensation. In other words, before invoking the bar contemplated under Section 25(2) of the Act by the Government, it has to show that a notice required to be given under section 9 to the claimant was served on him. From the papers on record, we find nothing which would show that the applicant has been so served with the notice required to be given under Section 9 of the Act. Apart from that position, if we were to turn to the written statement filed by the respondents before the Court, no such plea has at all been raised. The material question raised appears to be that the claimant is not entitled to get compensation at the rate of Rs. 150/- and that the compensation of Rs. 50/- per one mango tree awarded by the Special Land Acquisition Officer was perfectly proper. Even no such issue was sought for by the respondent and none raised by the Court as well. If any issue were raised, it would have been open to the claimants to even show some sufficient reason which may justify the Court to allow them to claim additional compensation as contemplated under Section 25(2) of the Act. They have had no such opportunity to meet any such ground. Whenever any such bar is claimed, it is essential that a plea to that effect ,is raised. Besides, an issue is raised by the Court in that respect so as to enable the other party to meet the same. Not only that, but the person who claims such a bar must show that the conditions required to be fulfilled before the bar is available, are established by evidence on record. Nothing of the kind is shown, and in those circumstances, it would be too much to act upon the statement made by the claimant in his evidence about his having not claimed Rs. 150/- or any amount before the Land Acquisition Officer so as to necessarily justify the Court to hold that no additional claim was permissible under Section 25 of the Act. In our view therefore, the learned Judge was not right in holding that the additional claims made before him by the claimants in both the cases was barred under Section 25(2) of the Act.

6. The next point raised was that since the lands over which these trees were standing were submerged in water by about the time before the notification for acquisition of this property under section 4 was issued, the trees cannot be said to be existing on those lands, so as to entitle them to claim any compensation! for the same. Those trees were on the land though no doubt submerged in water. The existence of the trees cannot, therefore, be denied and the mere fact that they were in water at the material time cannot justify rejection of their claims in respect of those trees. In fact no such plea was raised and no issue was sought for even in regard to this point. It was that way hardly proper for the trial Court to reject the claim on some such points in respect of which no issues were raised enabling the parties to focus their attention to lead evidence on that account. The finding on that point appears to be erroneous and on that basis the claims cannot be rejected.

7. * * * * *

8. Mr. Desai, the learned Govt. Pleader, then urged that such a claim would be in the nature of damages in respect of trees and the compensation awarded to them would, therefore, fall under clause secondly of section 23(1) of the Act. That being so, according to him, Sub-section (2) of Section 23 would not help the appellants in getting any amount by way of solatium at the rate of 15% on the amount awarded in respect of the mango trees. Such an amount can be only had provided the claim of compensation is awarded under clause first in section 23(1) of the Act. In support thereof, he invited a reference to the case of the Collector, Raigarh v. Chaturbhuj Pande, AIR 1964 Madh Pra 196, where it was held as follows:-

"The additional sum of 15% admissible under Section 23(2) is not available on items covered by all clauses of Section 23(1). The additional sum is available on the items covered by clause firstly only. The other clauses do not deal with market price. The sum awarded under them is by way of damages. The amount of damages awarded in accordance with clause secondly to sixthly is not to be increased by adding 15%."

In order to consider this point, it would be necessary to refer to the relevant provisions of section 23. They are :--

"23 (1) In determining the amount of compensation to be awarded for land acquired under this Act, the Court shall take into consideration-

First, the market value of the land at the date of the publication of the notification under section 4, Sub-section (1);

Secondly, the damage sustained by the person interested, by reason of the taking of any standing crops or trees which may be on the land at the time of the Col lector's taking possession thereof;

Now it is true that the effect of subsection (2) of Section 23 of the Act is to award a sum of 15% on such market-value of the land as above provided, and that it is contemplated in respect of cases which fall under the first clause of Section 23(1) of the Act. The point to be considered is as to whether the claim of compensation in respect of trees falls under clause secondly as urged by Mr. Desai, or under clause first which relates to the fixing of market-value of the land. If the trees in question fall under clause firstly of section 23(1) of the Act, and not under the second clause, the claimants would be entitled to an amount of compensation at the rate of 15% by way of solatium as is ordinarily called, on the market value thereof by virtue of subsection (2) of Section 23 of the Act. Now, the expression "land" used in clause 'firstly' of section 23(1) of the Act, as defined in Section 3(a) of the Act, "includes benefits to arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth." The trees can no doubt be called things attached to the earth and consequently, the expression "land" used in Section 23(1) would include trees also. It follows, therefore, that the compensation in respect of the lands acquired would also carry with it the compensation for any such trees standing thereon. When that is so, the solatium at the rate of 15% on the market-value of the land would have to be awarded as compensation awarded for the trees standing thereon,

9. If we now refer to clause 'secondly' in Section 23(1) of the Act, it refers to "the damage, if any, sustained by the person interested, by reason of the taking of any standing crops or trees which may be on the land at the time of the Collector's taking possession thereof". In the 1st place since the expression "land" includes trees standing thereon, the second clause in so far as it refers to trees would appear to be redundant. That clause, therefore, must be taken as independent and dealing with damages in respect of trees under different head. That it is independent of the first clause in Section 23(1) of the Act, becomes clear from the words "at the time of the Collector's taking possession thereof" occurring in the second clause. Those words give an indication of a different period and that is after the notification under Section 4 of the Act is issued in respect of the land in question as against the compensation to be fixed at the date of the notification issued, in clause first. The reference to trees is along with standing crops and that again at the time when possession is taken. Damages are therefore contemplated to be given for the standing crops or trees on any such land acquired arising after the notification and before possession is taken. Thus, on a consideration of both the clauses, it appears clear that the claim for compensation for trees standing on land at the date of the notification under Section 4 of the Act falls under clause firstly in Section 23(1) of the Act.

10. We find support for this view from some of the decisions of different High Courts as against the one of Madhya Pradesh High Court relied upon by the learned Government Pleader. In Sub-Collector of Godavari v. Seragam Subbaroyadu, (1907) ILR 30 Mad 151, it was held that trees are 'things attached to earth' and are thus included in the definition of land in Section 3(a) of the Land Acquisition Act; and this definition must be applied in the construction of Section 23 of the Act. It was further held that the value of such trees as are on the land when the declaration is made under Section 6 is included in the market value of the land on which the allowance of 15 per cent, is to be calculated under: Section 23(2) of the Land Acquisition Act This decision has been followed in the case of Collector of Bareilly v. Sultan Ahmad Khan, AIR 1926 All 689. As observed in that case in the judgment delivered by Boys, J.: "Damage, if any, for taking trees under Section 23(1), secondly, would similarly appear as an item altogether independent of the market value of the land and of the "value" of the trees as part of the market value of the land." In the case of Bhusan Chandra Samanta v. Secretary of State for India in Council, reported in (1936) 40 Cal WN 1034, clause secondly of Section 23(1) came to be considered and it was held that it contemplates the value of the crops or trees that may have grown on the land between the date of the declaration of the intention to acquire and the date of the Collector's taking possession. In other words, the claim that was set up is altogether independent from the one that would fall under clause firstly of Section 23(1).

11. The decision of the Madhya Pradesh High Court has not considered the effect of both the clauses relating thereto, and there has been no reference to any of the decisions referred to above. With respect, we are unable to agree with that view, and on the other hand we agree with the other view expressed by three other High Courts when they hold that the amount by way of solatium under Section 23(2) of the Act must be awarded on the claim of compensation awarded in respect of the trees since that forms a part of the land which came to be acquired by the Government. It makes no difference whether the trees belong to the same person who owned the land on which they stand, or to another person as We have in the present case. There is no justification for making any such distinction in order to deprive the claimant of his legitimate right to claim the amount by way of solatium on the value of the trees under section 23(2) of the Act.