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Nirmal Chakravarti And Others v. The Land Acquisition Collector, Alipur And Others Opposite Party.
Structured Summary of the Opinion
Factual and Procedural Background
This is an application under Article 226 of the Constitution of India seeking cancellation of an award made by the Land Acquisition Collector of 24 Parganas and of orders directing refund of compensation money. The background facts, as presented in the opinion, are:
- Rai Bahadur Dwarka Nath Chakravartty created a trust over immovable property for payment of debts and distribution to named beneficiaries. He appointed himself, petitioner 1, and opposite parties 4 and 5 as trustees. The settlor died on 6 July 1945.
- Disputes among the trustees led to an application under Section 20 of the Arbitration Act, registered as Title Suit No. 70 of 1947. By order dated 12 July 1949, Kalikananda Mukherjee (opposite party 2) was appointed receiver of the trust estate.
- Certain trust plots were acquired by the Government. On 15 March 1950 the Land Acquisition Collector made an award of Rs. 9,112-8-0 in favour of the Receiver for plot No. 135. Compensation for other plots was awarded to opposite party 3, Sitaram Kapur.
- On 20 March 1950 the compensation was paid to the Receiver after he gave an undertaking to refund the amount if called upon later.
- Opposite party 2 thereafter applied to the Collector to amend the award, representing himself to be purchaser of plot Dag No. 135. The Collector purported to amend the award and called upon the Receiver to refund the sum.
- The Receiver was notified on 17 August 1950 and again on 20 March 1951 to refund the money. On 9 April 1951 the Receiver applied in Suit No. 70 of 1947 to the Subordinate Judge, Alipore for directions. On 19 May 1951 the Subordinate Judge directed the Receiver to comply with the Collector's requisition, after hearing petitioners and other beneficiaries who opposed such direction.
- No steps were taken to set aside or modify the Subordinate Judge's order, and the petitioners then moved this Court under Article 226 challenging the amendment of the award and related directions for refund.
Legal Issues Presented
- Whether beneficiaries of the trust (petitioners), who were not parties to the land acquisition proceedings, can maintain an application under Article 226 to challenge the Land Acquisition Collector's amendment of the award and the directions for refund of compensation.
- Whether the Land Acquisition Collector had power to amend or correct his award after it became final and conclusive under Section 12 of the Land Acquisition Act, or whether the remedy for aggrieved persons was to invoke Section 18 of the Act.
- Whether provisions of the Code of Civil Procedure (Section 152) could apply to permit correction of the award on the theory that the acquisition proceeded from prior Defence of India Rules requisitioning.
- Whether the court should, in the exercise of its discretion under Article 226, interfere with the Collector's action and related orders directing refund of the compensation money.
Arguments of the Parties
Petitioners' Arguments (as represented by Dr. Sen Gupta)
- The petitioners sought to challenge the amendment of the award and the orders requiring refund of compensation by invoking Article 226.
- Dr. Sen Gupta contended that once the Collector made an award, it became final and conclusive under Section 12 of the Land Acquisition Act and consequently the Collector had no power to amend it.
- He argued that an aggrieved person should use Section 18 of the Land Acquisition Act to have objections determined by the Court, rather than permitting post-award amendments by the Collector.
- He also indicated that the petitioners did not file an affidavit in reply because they were not asking the Court to investigate the merits of rival claims to the compensation money.
Land Acquisition Collector's / Opposite Parties' Contentions
- The Collector stated (in a counter-affidavit) that the application for amendment of the award was considered in the presence of parties and their advocates, and that the Receiver had full knowledge of the proceedings.
- The Collector asserted that an order amending the award was made after hearing and upon withdrawal of objections by concerned parties.
- Opposite party 3 (Sitaram Kapur) filed a counter-affidavit setting out his chain of title and stating that prior to acquisition the land had been requisitioned under the Defence of India Rules but a notice of derequisition was served and before possession was re-delivered the Land Acquisition Act proceedings were started.
Argument Raised by Mr. Mazumdar (for an opposite party)
- Mr. Mazumdar contended that the land had initially been taken under Defence of India Rules for military purposes, and that the award should be treated in continuation of those proceedings; accordingly, provisions of the Code of Civil Procedure (Section 152) would apply to permit correction of the award by the Collector.
- The Court treated this contention as based on a misapprehension and rejected it on the facts that derequisition had occurred and Land Acquisition Act proceedings were started before re-delivery of possession, so the Land Acquisition Act governs the matter and Section 152 CPC is not applicable.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The Court's analysis proceeded along the following lines, strictly reflecting the material and reasoning in the opinion:
- Scope of Article 226 and questions of title: The Court noted that questions of title cannot be determined in proceedings under Article 226 and must be decided in appropriate proceedings specifically taken for that purpose. This principle framed the threshold limitation on the relief sought by the petitioners.
- Who represented the estate in the acquisition: The Receiver (appointed in the trust suit) represented the beneficiaries' interests and was a party to the land acquisition proceedings. When the compensation was paid to the Receiver, he gave an undertaking to refund the amount if later called upon.
- Collector's action characterized: The Court treated the Collector's steps as a call on the Receiver to carry out his undertaking rather than an exercise of an extraordinary power to nullify a final award. The Collector had requested refund and the Receiver agreed; the Subordinate Judge subsequently directed compliance.
- Maintainability by non-parties: The petitioners were beneficiaries who were not parties to the land acquisition proceedings. Because the estate's interest was represented by the Receiver (who had given the undertaking and who sought directions in the trust suit), the petitioners could not, by invoking Article 226, challenge the amendment or the Collector's call to enforce the undertaking. The Court held that Article 226 was not the proper proceeding to ventilate any grievance solely against the Receiver's conduct.
- Absence of contest by the Receiver: The Receiver did not oppose the Collector's direction and had applied for directions from the civil court; the Subordinate Judge, after hearing the petitioners, directed the Receiver to comply. No steps were taken to set aside that order, diminishing the petitioners' basis for relief in this forum.
- On Section 12 of the Land Acquisition Act: The petitioners' submission that an award becomes final and conclusive under Section 12 and thus incapable of amendment was considered. The Court observed that the present steps were essentially enforcement of the Receiver's undertaking and the petitioners, as non-parties to the acquisition proceedings, could not properly attack the amendment under Article 226. Thus, the challenger’s reliance on Section 12 did not render this application maintainable.
- On Section 152 CPC and Defence of India Rules argument: The Court rejected the contention that Section 152 CPC applied by reason of an initial Defence of India Rules requisition. It accepted the affidavits indicating that derequisition had been served and that Land Acquisition Act proceedings had been started before actual re-delivery of possession; accordingly, the Land Acquisition Act governed and Section 152 (which deals with clerical/arithmetic mistakes or slips) was inapplicable to the nature of the amendment claimed.
- Discretion under Article 226: The Court expressly stated it would not interfere in the exercise of its discretion under Article 226. The Court found the application to be an attempt to circumvent the Subordinate Judge's order indirectly and regarded the petition as not bona fide.
Holding and Implications
Holding:
The Rule is discharged; the petition fails.
Implications and immediate consequences (as stated in the opinion):
- The petitioners' application under Article 226 seeking cancellation of the Collector's alleged amendment of the award and related reliefs is dismissed as not maintainable.
- The Subordinate Judge's order directing the Receiver to comply with the Land Acquisition Collector's requisition (given after hearing the petitioners) stands and has not been set aside in these proceedings.
- The Receiver remains subject to the undertaking given to refund the compensation if called upon, and the Collector's calls to enforce that undertaking were treated as proper steps that the Receiver and the Subordinate Judge have acted upon.
- Costs: The petitioners were ordered to pay two sets of costs — one to opposite party 1 and one to opposite party 3 — with the hearing fee for each set assessed at one gold mohur.
- No broader precedent or new legal principle was announced beyond the direct application of existing procedural limitations and statutory scheme: the Court confined its decision to the direct effect on the parties and declined to extend its supervisory jurisdiction under Article 226 to substitute for disputes properly pursued in other proceedings.
1. This is an application under Article 226, Constitution of India, for an appropriate writ for cancellation of an award made by the Land Acquisition Collector of 24 Parganas and of orders for refund of compensation money passed by him and the Subordinate Judge, Alipore, directing the Receiver to whom the compensation money had been paid to refund the same. The facts may shortly be stated as follows:—
One Rai Bahadur Dwarka Nath Chakravartty had created a trust in respect of his immovable properties for payment of debts and for distribution amongst the beneficiaries mentioned in the trust. By the said deed the settlor appointed himself and petitioner 1 and opposite parties 4 and 5 as trustees for carrying on the said trust. The settlor died on 6th July, 1945, and petitioners 1 and 2 and opposite parties 4 and 5 are the present trustees in respect of the trust estate. Disputes and differences arose amongst the trustees and there was an application made to Court under Section 20 of the Arbitration Act which was registered as Title Suit No. 70 of 1947 and by an order, dated 12th July, 1949, one Kalikananda Mukherjee, opposite party 2, was appointed receiver of the trust estate in that suit. It appears that thereafter some of the plots of lands belonging to the trust estate were acquired by the Government and the Land Acquisition Collector of 24 Parganas made an award on 15th March, 1950, by which a sum of Rs. 9,112-8-0 was awarded as compensation in favour of Mr. Mukherjee, Receiver to the Dwarkanath Trust Estate, in respect of plot No. 135. By the same award, other sums were awarded to opposite party 3 Sitaram Kapur in respect of other plots of land.
On 20th March, 1950, compensation money was paid to the Receiver upon his giving an undertaking to refund the amount subsequently if called upon to do so. Thereafter opposite party 2 applied to the Land Acquisition Collector for amendment of the award by representing himself to be a purchaser of the plot, being Dag No. 135, and the land Acquisition Collector has acceded to such application and amend the award and has called upon the Receiver to refund the sum to the Collector. On 17 August 1950, the Receiver was informed by a letter about the correction and refund of the money was actually asked for from him within a week from that date. On 20th March, 1951, the Land Acquisition Collector, by another letter, again called upon the Receiver to refund the sum of Rs. 9,112-8-0 forthwith. On 9th April, 1951, the Receiver applied in suit No. 70 of 1947 to the Subordinate Judge, Alipore for direction in respect of the order of the Land Acquisition Collector to refund the money and it appears that the Subordinate Judge has given directions upon the Receiver for complying with the order of the Land Acquisition Collector with liberty to the receiver to come up for further directions if necessary. This order was made on 19th May, 1951, after hearing the petitioners and other beneficiaries who opposed any such direction being given to the Receiver for refund of the money.
2. The special Land Acquisition Collector, 24 Parganas, has filed a counter-affidavit in this case. In para 5 of the said affidavit, it is stated that the Land Acquisition Collector considered the application for amendment of the award in the presence of the parties and the Advocates appearing on behalf of the parties. It is alleged that one Lalit Mohan Chakravartty, who was the Advocate appearing on behalf of the receiver, was present during the hearing on the different dates. It is pointed out by Dr. Sen Gupta that this Lalit Mohan Chakravartty is not an Advocate at all but he was a mere clerk. It is further stated in the said para 5 of the said affidavit that the order amending the award was made upon hearing the parties and upon withdrawal of objections by the parties concerned. The deponent further states that from a perusal of the Land Acquisition proceedings it is clear that the Receiver was represented by an Advocate and that the receiver had full knowledge of the proceedings. Opposite party 3, Sitaram Kapur, has also filed a counter-affidavit. In para 4 of the said affidavit he sets out the various facts showing his chain of title and the extent of his interest in the land in question. It is further stated that prior to the acquisition under the Land Acquisition Act, the lands had been requisitioned by the Government for military purposes under the Defence of India Rules and possession had been taken, but subsequently notice of derequisition was served upon opposite party 3, but before possession was re-delivered, proceedings under the Land Acquisition Act for acquisition of the property were parted.
3. It may be pointed out that questions of title cannot be determined in proceedings under Article 226, Constitution of India. Such questions have to be decided in appropriate proceedings taken for the purpose.
4. The petitioners are the beneficiaries in respect of the trust estate. They were not parties to the land acquisition proceedings at all. The receiver represented the interest of the beneficiaries at all material times and he was a party to these land acquisition proceedings. At the time the compensation money was paid to the receiver, the receiver had given an undertaking to refund the money if subsequently called upon to do so. The fact remains that the Land Acquisition Collector has called upon the receiver to carry out his undertaking and the receiver has agreed to do so. Not merely he has agreed but he has been directed by the Subordinate Judge to comply with the requisition of the Land Acquisition Collector. No steps have been taken to have the order of the learned Subordinate Judge which was passed after hearing the petitioners and in spite of the opposition, set aside or modified. But the petitioners have come forward to this Court in an application under Article 226, Constitution of India for having that order corrected. This relief the petitioners are not clearly entitled to in this application. The grievance of the petitioners is that they are affected by the conduct of the receiver who has acquiesced in carrying out the direction given by the Land Acquisition Collector for refund of the money. If they have any complaint against the conduct of the Receiver and have any grievance on that score, the proceeding under Article 226, Constitution of India is not the proper proceeding for ventilating such grievance.
5. It may be noted that no affidavit in reply has been filed on behalf of the petitioners to controvert the facts stated in the counter-affidavits filed by opposite parties 1 and 3. Dr. Sen Gupta submitted that as he is not asking this Court to enter into an investigation about the merits of the rival claims of the parties to the compensation, money in question, his clients did not file any affidavit in reply. It is clear, however, from the materials before this Court that the receiver who represents the trust estate is not actively taking up any obstructive attitude so far as the carrying out of the directions of the Land Acquisition collector and the Subordinate Judge is concerned and in fact as officer of the Court he cannot do so. He applied for directions from the Court which was the proper thing for him to do and he has been directed to comply with the order of the Land Acquisition Collector. No objection to the order of the Land Acquisition Collector, or the order of the Subordinate Judge has been raised on behalf of the receiver. It is only the beneficiaries interested in the estate who are not parties to the Land Acquisition proceedings who have come up before this Court and are challenging the order of the Land Acquisition Collector directing refund of the money, although the receiver had given an undertaking to refund it.
6. I am given to understand that the Land Acquisition Collector has not yet come to a decision as to the merits of the claims of the rival claimants.
7. It has been contended by Dr. Sen Gupta that the Land Acquisition Collector having made an award in favour of the receiver, the award became final and conclusive under Section 12 of the Land Acquisition Act and after that there is no power in the Land Acquisition Collector to amend his award. He further contends that if any person is aggrieved by the award and does not accept the award, he may have the matter referred to the Court for determination of his objections as to the amount of compensation, as to the person to whom the compensation is payable and as regards the apportionment of the compensation money amongst the persons interested (S. 18). In the circumstances, Dr. Sen Gupta contends that the order amending the award was wholly without jurisdiction and so should be set aside. As I have pointed out before, the order of the Subordinate Judge directing the receiver to comply with the requisition of the Collector cannot be interfered with by this Court in this proceeding. What the Land Acquisition Collector has done is merely to call upon the receiver, who had already given an undertaking at the time he received the compensation money, to carry out his undertaking. The interest of the estate was being represented by the receiver and pertain directions have been made upon him for Refund of the money by the Subordinate Judge and the Collector. The petitioners are strangers to the land acquisition proceedings. It is not open to them to challenge the amendment of the award in this proceeding under Article 226, Constitution of India. I am of the view that this application is not maintainable at the instance of the present petitioners.
8. It was contended by Mr. Mazumdar, appearing for opposite party that the land in question was acquired by the Government in the first instance under the Defence of India Rules for military purposes and it is in continuation of the proceedings taken for acquisition under the Defence of India Rules that steps under the Land Acquisition Act were taken and so the award is really an award in respect of the acquisition under the Defence of India Rules proceedings and so the provisions of the Code of Civil Procedure will apply and the Land Acquisition Collector has power to amend or correct the award as he has purported to do in this Case. This contention of Mr. Mazumdar is based on a misapprehension and cannot be accepted. It appears from the affidavit of opposite party 3 and the fact is also admitted by the learned Advocate for opposite party 3 that in fact a notice of derequisition was served upon opposite party 3 and the property was derequisitioned. But before possession was actually re-delivered to opposite party 3, proceedings under the Land Acquisition Act were started. In this state of facts, the matter must be governed by the provisions of the Land Acquisition Act and there is no question of Section 152 of the CPC applying to the facts of this case. Moreover, Section 152 of the CPC deals only with correction of clerical or arithmetical mistakes, or accidental slips or omissions. The nature of the amendment concerned cannot by any stretch of imagination be said to fall within the mistakes or slips as referred to in S. 152 of the Code.
9. I do think I shall be justified, in the facts and circumstances stated above and in the exercise of my discretion under Article 226, Constitution of India, in interfering with the order complained of.
10. The whole object of this application is to get round the effect of the order of the learned Subordinate Judge which was passed after contest by the petitioners (Para 14 of petition) by the indirect process of getting the order of amendment of the award, if it was amendment at all, set aside by this application under Article 226.
11. It is a debatable matter whether the Land Acquisition Collector has at all amended the award or not. An Undertaking was taken from the receiver to remind the money and the Land Acquisition Collector teas purported to enforce the undertaking. That is all that has really taken place so far. I do not think that it is a bona fide application.
12. In the circumstances, this petition fails and the Rule must be discharged. The petitioners will pay two sets of costs, one to opposite party 1 and the other to opposite party 3, the hearing fee for each set being assessed at one gold mohur.
A/M.K.S
13. Rule discharged.
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