Login
  • Bookmark
  • PDF
  • Share
  • CaseIQ

Anthony D'Silva v. Kerala State

Kerala High Court
Oct 7, 1969
Important Paras
Please sign up to view Important Paras.
Smart Summary (Beta)

Structured Summary of the Court's Opinion

Factual and Procedural Background

The proceedings arose from the compulsory acquisition of 12.55 acres of land near the beach within the limits of the Corporation of Trivandrum. The land belonged to three brothers who resided in Malaya and held the property as tenants‑in‑common. The acquisition process began under provisions of the (Travancore) Land Acquisition Act and was completed under identical provisions of the Kerala Land Acquisition Act (referred to in the opinion as "the Act").

The Collector (referred to as the Land Acquisition Officer) issued notices under Section 9 on 12‑3‑1963 calling for claims by 29‑3‑1963; notices sent by registered surface mail reached the owners on 26‑3‑1963. On 30‑3‑1963 the Land Acquisition Officer made an award fixing compensation at Rs. 40/- per cent (thereby occurring before the owners had opportunity to file claims). Notice of that award under Section 12(2) was issued on 30‑3‑1963 and reached the owners on or before 2‑5‑1963.

On 2‑5‑1963 the owners sent a communication (marked Ext. C1) to the District Collector — purporting to be by all three brothers but signed by only one — objecting to the inadequacy of compensation and asking that the award be sympathetically reconsidered, asserting a claim of at least Rs. 5,000 per acre. A copy of that communication was sent to the Land Acquisition Officer and was received by him on 10‑5‑1963. On 28‑8‑1963 one brother, armed with powers of attorney from the other two, made a formal application for a reference to the Court under Section 20. On that basis the Land Acquisition Officer made a reference to the Court.

The trial Court held the reference incompetent because the Section 20 application had been made out of time, declined to treat Ext. C1 as an application under Section 20, nevertheless considered the merits and concluded the proper compensation was Rs. 60/- per cent but then proceeded to award only the amount fixed by the Land Acquisition Officer (Rs. 40/- per cent). The owners appealed, claiming Rs. 80/- per cent. The present appeal followed, with an additional procedural question arising because a Division Bench considered whether a Full Bench decision (Padmanabhan v. State of Kerala) required reconsideration.

Legal Issues Presented

  1. Whether a reference under Section 20 of the Act is competent when the application for such reference is made out of time.
  2. Whether Ext. C1 (the communication signed by one brother but purporting to be by all three) can be treated as an application under Section 20.
  3. Whether one co‑owner may initiate proceedings and apply for a reference on behalf of all co‑owners.
  4. Whether a statement in Ext. C1 that the owners should get "at least Rs. 5000/- per acre" operates as an admission or estoppel preventing a claim for higher compensation.
  5. Whether the Court (and this Court on appeal) had jurisdiction to entertain the matter and whether an appeal lies where the reference to the Court was held to be incompetent but the Court nevertheless made an award.

Arguments of the Parties

Appellants' Arguments

  • Counsel for the appellants contended that Article 31(2) of the Constitution requires the Act to be read so as to ensure adjudication by the Court whether or not an application for a reference is made under Section 20 or, if made, is made in time.
  • After the case proceeded in Court, the appellants filed pleadings claiming compensation at the rate of Rs. 80/- per cent (their formal, late application for reference had claimed Rs. 120/- per cent).

Respondent / Opposing Arguments

  • It was urged (by respondents or opposing counsel) that Ext. C1's statement that the owner should get at least Rs. 5,000/- per acre constituted an admission and/or an estoppel by pleading precluding the appellants from claiming higher compensation later.
  • A preliminary objection was raised to the maintainability of the appeal on the ground that, if there was no proper reference to the Court, the Court had no jurisdiction to pass an award and therefore no appeal would lie under Section 60 (appeal lies only against an award).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Padmanabhan v. State of Kerala, 1962 Ker LJ 510 (AIR 1963 Ker 3 (FB)) Full Bench decision that a Court should not entertain a reference made on an application preferred out of time (i.e., such references are incompetent). The Court upheld this view and held that it does not require reconsideration; if an application under Section 20 is out of time the Collector has no jurisdiction to make a reference and the Court has no jurisdiction to entertain it.
Harish Chandra v. Dy. L.A. Officer, AIR 1961 SC 1500 Held that the Collector's award takes the place of an offer and is not an adjudication binding on owners. The Court stated that this principle has no bearing on the competency question whether a reference made on an out‑of‑time application can be entertained.
Grant v. State of Bihar, AIR 1966 SC 237 Similar principle: Collector's award is akin to an offer not an adjudication. The Court noted the decision but held it irrelevant to the central question of competency of a reference made on an out‑of‑time application.
State of Travancore‑Cochin v. Kuttipparu Amma, 1958 Ker LJ 1012 (AIR 1959 Ker 136) Concerned a co‑owner applying for reference in respect of his own share (not on behalf of all co‑owners). The Court distinguished that case: here Ext. C1 purported to be on behalf of all co‑owners and one co‑owner can initiate proceedings for all, so Kuttipparu Amma did not apply.
M. Ibrahim Sahib v. L.A. Officer, AIR 1958 Andh Pra 226 Similarly involved a co‑owner applying only for his own share. The Court distinguished it on the same basis: in the present case the communication purported to be by all co‑owners and one co‑owner could act for all.
Veeraraghava Iyer v. S.T.M. Project, 1957 Ker LT 1040 Application contained no ground of objection to the award. The Court distinguished the present case because Ext. C1 did state a ground of objection (inadequacy of compensation).
Trichur Dt. Co‑operative Bank v. Dy. Collector, 1963 Ker LJ 193 Application contained only a request that the amount awarded be paid under protest (no substantive objection). The Court distinguished that case: Ext. C1 did more than merely request payment under protest — it sought enhancement on specified grounds and thus satisfied Section 20 requirements.

Court's Reasoning and Analysis

The Court proceeded by addressing jurisdictional and substantive points in a stepwise manner:

  1. Jurisdiction and the competency of a reference: The Court reaffirmed the principle that its jurisdiction to adjudicate depends on a proper reference being made under Section 20, and such a reference can only be made on an application within the time prescribed by the Act. If an application is out of time the Collector lacks jurisdiction to make a reference and any reference made would be incompetent and not confer jurisdiction on the Court. The Court accepted the Full Bench view in Padmanabhan that an out‑of‑time application produces an incompetent reference.
  2. Relevance of other authorities and constitutional provision: The Court held that whether the Collector acts quasi‑judicially or in an executive capacity makes no difference to the competency question. It further observed that Supreme Court decisions (Harish Chandra; Grant) holding that the Collector's award is not a binding adjudication do not affect the competency issue. The appellants' argument based on Article 31(2) of the Constitution was rejected — Article 31(2) could not be used to compel the Court to read the Act so as to require adjudication by the Court irrespective of whether a timely application under Section 20 had been made. Section 23 (Section 21 of the Central Act) limiting the scope of inquiry on a properly entertained reference was also found irrelevant to the question whether a reference should be entertained at all.
  3. Whether Ext. C1 was an application under Section 20: The Court concluded that Ext. C1 could properly be regarded as an application under Section 20. Reasons given:
    • Ext. C1 expressly objected to the quantum of compensation, made a clear claim for enhancement and indicated that the owners wished to have the award considered by an authority competent to grant higher compensation.
    • Although addressed to the District Collector (and mistakenly assuming the Collector had adjudicatory competence), a copy was sent to the Land Acquisition Officer; this copy put the Land Acquisition Officer on notice that the owners wished to take the award before a competent authority. The Court treated that as satisfying Section 20.
    • The Court held that one co‑owner can, by himself, initiate legal proceedings for the protection of the interests of all co‑owners; hence the fact that Ext. C1 was signed by only one brother did not defeat its character as an application on behalf of all three.
    • The Court distinguished cases where no ground of objection was stated (Veeraraghava Iyer) or where the communication merely sought payment under protest (Trichur Dt. Co‑operative Bank), because Ext. C1 contained a substantive objection and a claim for enhancement.
  4. Estoppel and the Rs. 5,000/- figure: The Court rejected the submission that the statement in Ext. C1 that the owners should get "at least Rs. 5,000/- per acre" was an admission or estoppel limiting the owners to that figure. The Court reasoned:
    • Ext. C1 also expressly stated that even at Rs. 5,000/- per acre it was impossible to acquire land in the locality — a statement which, read fairly, indicates the market value was more than Rs. 5,000/-. Thus the phrase "at least Rs. 5,000/-" was not a waiver of any claim to a higher value.
    • Subsequently, when the matter reached Court, the appellants filed statements claiming Rs. 80/- per cent, and their later (but out‑of‑time) formal application had claimed Rs. 120/- per cent; on this evidence the Court would not treat the Ext. C1 figure as preclusive.
  5. Merits and final assessment: On the factual evidence before the trial Court, the present Court found the trial Court's conclusion that Rs. 60/- per cent was the fair compensation to be a reasonable conclusion. No party demonstrated error in that finding.
  6. Maintainability of the appeal: Addressing the objection that no appeal lay because there was no proper reference (and hence any award was void), the Court noted two points:
    • The trial Court did make an award; an appeal under Section 60 lies against an award, and the fact of an award being made brings Section 60 into play irrespective of the jurisdictional questions.
    • Independently, the Court found that Ext. C1 satisfied Section 20 and thus a proper reference existed, removing the very basis of the objection to maintainability.

Holding and Implications

Holding: The appeal was partly allowed. The Court held that Ext. C1 could be regarded as an application under Section 20 (and therefore that a proper reference existed), rejected the estoppel argument based on the "at least Rs. 5,000/-" statement in Ext. C1, found the trial Court's factual conclusion that fair compensation was Rs. 60/- per cent to be reasonable, and ordered payment accordingly.

The direct orders made by the Court were:

  • Appellants awarded compensation at the rate of Rs. 60/- per cent.
  • Usual solatium of 15% to be added.
  • Interest at 4% per annum from 20‑4‑1963 (the date possession was taken).
  • No order as to costs.

Implications (as stated or implicit in the opinion):

  • The Court reaffirmed the principle that a reference under Section 20 is competent only if based on an application made within the time prescribed; an out‑of‑time application does not confer power on the Collector to make a valid reference (the Full Bench view in Padmanabhan was upheld, not reconsidered).
  • The Court clarified that one co‑owner may initiate proceedings on behalf of all co‑owners, and that a communication which reasonably notifies the Land Acquisition Officer that the owners seek to have the award reviewed by a competent authority can satisfy the requirements of Section 20 even if misdirected in form (e.g., addressed to the District Collector rather than the Court) and even if it lacks an express request for referral.
  • The Court rejected treating a conservative or minimum figure stated in an initial communication as an automatic estoppel where the communication also indicates the market value may be higher and later pleadings assert higher claims.

The Court stated no order as to costs and described the appeal simply as "partly allowed."

Show all summary ...

1. This appeal arises out of a land acquisition proceeding begun under the provisions of the (Travancore) Land Acquisition Act and completed under the provisions of the Kerala Land Acquisition Act. The relevant provisions of the two Acts are identical and therefore we shall refer, only to the provisions of the latter Act which we shall hereafter call, the Act. The property acquired, 12.55 acres of land, situated, we are told by the learned Advocate General, near the beach within the limits of the Corporation of Trivandrum, belonged to three brothers who were at the relevant time residing in Malaya. They are Christians and held the property as tenants-in-common. Notice under Section 9 of the Act was issued to them by the Collector (a Special Land Acquisition Tahsildar, whom we shall hereafter refer to as the Land Acquisition Officer) on 12-3-1963 calling upon them to file their claims by 29-3-1963. The notices, it would appear, were sent by registered surface—mail, and, seeing that the section requires at least 15 days' time to be given for filing claims, this conduct on the part of the Land Acquisition Officer calling for claims from persons resident in Malaya within 17 days of the issue of the notice probably less after the posting of the communication hardly impresses us as a responsible way of discharging statutory functions affecting valuable property rights. The notices were actually received by the owners only on 26-3-1963. Four days later, on 30-3-1963, the award was made allowing compensation at the rate of Rs. 40/- per cent. This was, of course, before the owners could put in their claim. Notice of the award was issued under Section 12(2) of the Act on 30-3-1963 and it admittedly reached the owners on or before 2-5-1963. On 2-5-1963 a communication. Ext. C1, purporting to be by all the three brothers but signed by only one of them was sent to the District Collector, Trivandrum. This was in the form of an appeal against the award of the Land Acquisition Officer. It said that the compensation awarded was inadequate, that on the evidence put forward the owner should get at least Rs. 5000/- per acre, and that even at that price it was impossible to get land in the locality. It ended up with the prayer that the appeal should receive the sympathetic consideration of the District Collector and that it was left to him to enhance the valuation at his discretion. A copy of this communication was sent to the Land Acquisition Officer and seems to have been received by him on 10-5-1963. On 28-8-1963, one of the brothers who had come to India armed with a power of attorney from the remaining two made a formal application for a reference to the Court under Section 20 of the Act, (Section 18 of the Land Acquisition Act, 1894) and, on the basis of this application, the Land Acquisition Officer made a reference to the Court.

2. The Court held that the reference was incompetent since the application under Section 20 had been made out of time. It declined to regard Ext. C1 as an application under Section 20. Nevertheless, it considered the claim made by the owners on the merits, and, on the evidence, came to the conclusion that the proper compensation for the land was Rs. 60/- per cent. And notwithstanding that it was of the view that the reference to it was incompetent, it proceeded to make an award to the effect that the owners were entitled to get only the amount awarded by the Land Acquisition Officer and rejecting their claim for enhanced compensation. The owners have appealed claiming compensation at the rate of Rs. 80/- per cent. The case has come up before us since a Division Bench of this court thought that the decision of a Full Bench of this court in Padmanabhan v. State of Kerala, 1962 Ker LJ 510 - (AIR 1963 Ker 3 (FB)) to the effect that the Court should not entertain a reference made on an application preferred out of time required reconsideration.

3. The Court gets jurisdiction only on a reference being made to it; and that reference, needless to say, must be a proper reference made in accordance with the provisions of the Act. A reference can be made under Section 20 of the Act only on application made for the purpose and the section expressly provides that every such application shall be made within the time specified therein. If an application is made out of time, the Collector has no jurisdiction to make a reference and if he does make a reference, it is, strictly speaking, no reference, and the Court has no jurisdiction to entertain it. This was the view taken in 1962 Ker LJ 510 : (AIR 1963 Ker 3 (FB)) and, with great respect, we do not think that it requires reconsideration. Whether in making the reference the Collector acts as a quasi-judicial or a mere executive authority makes no difference whatsoever to the question of his competency to make a reference on an application made out of time. In either case, the reference would be incompetent, and the Full Bench decision we have referred to in no way depends for its conclusion on the circumstance of the Collector acting in a judicial capacity. That being so, the decisions in Harish Chandra v. Dy. L.A Officer, AIR 1961 SC 1500 and Grant v. State of Bihar, AIR 1966 SC 237 to the effect that the Collector's award only takes the place of an offer and cannot be regarded as an adjudication binding on the owners seems to us to have no bearing on the question. Nor are we in the least able to see how, as contended by counsel for the appellants, Article 31(2) of the Constitution can compel us to read the provisions of the Act as requiring that there should be an adjudication by the Court whether or not an application for a reference is made under Sec. 20, or if made, is made in time. We also fail to see what bearing Section 23, (Section 21 of the Central Act), which restricts the scope of the inquiry on a reference properly entertained, can have on the question whether the reference should be entertained at all. It might or might not be that the Collector acts as an agent of the State — we are inclined to think that in making a reference under Section 20 he acts in discharge of his own statutory duty and not as an agent of the State. But, even if he does act as an agent of the State, we do not think that the State can be permitted to so discriminate between persons as to be allowed, when it is so pleased, to make references which under the law are incompetent. Or that the Court to which a reference is made is bound to entertain an incompetent reference merely because it is made by the party who stands to be prejudiced thereby.

4. We are however of the view that the Court was wrong in thinking that Ext. C1 could not be regarded as an application under Section 20. If it can be so regarded, it is not disputed that it is in time. It is true that it was signed by only one of the three co-owners. But, it purports to be by all the three, and we regard it as a settled law that one co-owner by himself can initiate legal proceedings for the protection of the interests of all the co-owners. The decisions in State of Travancore-Cochin v. Kuttipparu Amma, 1958 Ker LJ 1012 : (AIR 1959 Ker 136) and M. Ibrahim Sahib v. L.A Officer, AIR 1958 Andh Pra 226 are readily distinguishable, for, in those cases it would appear that the co-owner concerned applied for a reference to the Court only in respect of his own share in the property and not for and on behalf of all the co-owners.

5. Ext. C1 it is true was addressed to the District Collector, but a copy of it was sent to the Land Acquisition Officer, and, indeed, it is this copy that has been marked as Ext. C1. What is the substance of Ext. C1? It clearly states that the compensation awarded is too low and that the owners are not prepared to accept it. It definitely contains the claim that the compensation should be enhanced. And it clearly shows that the owners are appealing to an authority whom they regarded, though mistakenly, as competent to adjudicate in the matter. The communication of the copy to the Land Acquisition Officer amounts, in these circumstances, to a notice to him that the owners want to take his award before an authority competent to grant them higher compensation; and this, it seems to us satisfies the requirements of Section 20. That the authority competent to adjudicate on the award was wrongly assumed to be the District Collector, and not the Court, cannot affect the position. Nor can the absence of an express request to the Collector to refer the matter to the Court. The objection, it is expressly stated, is with regard to the amount of compensation, and that distinguishes this case from the case in Veeraraghava Iyer v. S.T.M Project, 1957 Ker LT 1040 where no ground of objection whatsoever was stated. That also distinguishes this case from the case considered in Trichur Dt. Co-operative Bank v. Dy. Collector, 1963 Ker LJ 193 wherein the application contained nothing more than a request that the amount awarded may be paid under protest.

6. It is urged that Ext. C1 says that the owner should get at least Rs. 5000/- per acre and that this constitutes not merely an admission but an estoppel by pleading against a higher claim. But, apart from that to say that compensation of at least Rs. 5000/- per acre should be paid is not to say that the land is not worth more, it will be recalled that Ext. C1 expressly states that even at that rate it is impossible to get land in the locality. This is clearly a statement to the effect that the market value of the land is more than Rs. 5000/- per acre. Moreover, after the case came to the Court, both sides filed statements which the Court regarded as the pleadings before it, and, in the statement filed by the appellants they claimed compensation at the rate of Rs. 80/-. per cent. In their formal application for a reference, made out of time, they had claimed compensation at the rate of Rs. 120/- per cent. In these circumstances we are unable to regard the claim of at least Rs. 5000/- per acre made in Ext. C1 as an estoppel or an admission precluding the appellants from showing that the land is worth more.

7. So far as the merits of the appellants' claim are concerned, we think that the conclusion reached by the Court is a fair conclusion on the evidence adduced before it. Neither side has been able to show us that it is wrongs indeed neither has attempted to do so.

8. We might perhaps mention that a preliminary objection was taken to the maintainability of this appeal on the ground that there being no proper reference to it the Court had no jurisdiction to adjudicate in the matter and therefore could not have passed an award. It is only against an award that an appeal lies under Section 60 of the Act. But, the Court did make an award, and, whether that was with or without jurisdiction, the provision for appeal is attracted. Moreover, as we have found, there was in this case, a proper reference under Section 20 of the Act, and hence the very basis of the objection fails. In the result we allow this appeal in part and award the appellants compensation at the rate of Rs. 60/- per cent, with the usual solatium of 15% and interest at 4% per annum from 20-4-1963 on which date possession was taken. We make no order as to costs.

9. Appeal partly allowed.