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Smart Summary

Summary of Opinion

Factual and Procedural Background

The disputed land measuring 1.01 acre was acquired. The petitioner claimed the entire disputed land as belonging to him. The Land Acquisition Officer (LAO) negatived his claim and held that the opposite parties were entitled to compensation. An award was prepared and signed on 12-12-1964. On 15-12-1964 the petitioner filed a written application requesting that the matter be referred by the Collector to the District Judge for determination of the person to whom the compensation is payable under Section 18 of the Land Acquisition Act, 1894. By an order dated 29-12-1964 the Land Acquisition Officer held that the petitioner had failed to establish any interest in the acquired property and refused the application for a reference. The petitioner filed a civil revision against the LAO's order refusing to make a reference under Section 18 of the Act.

Legal Issues Presented

  1. Whether the petitioner is a "person interested" within the meaning of Section 3(b) of the Land Acquisition Act, 1894, and thus entitled to seek a reference under Section 18 when he has not accepted the award.
  2. Whether the Land Acquisition Officer acted within jurisdiction in refusing to make a reference under Section 18 by deciding the petitioner's claim on the merits and holding it to be fictitious.
  3. Whether, because the petitioner's name did not appear in the drawn-up award, the petitioner could only seek a reference under Section 30 and not under Section 18.
  4. Whether a civil revision lies against an order of the Collector refusing to make a reference under Section 18 (taking into account the Orissa amendment).

Arguments of the Parties

Appellant / Petitioner's Arguments (Mr. Ranjit Mohanty)

  • The petitioner is a "person interested" under S.3(b) of the Act because he claimed an interest in the compensation.
  • The Land Acquisition Officer acted in excess of his jurisdiction by recording a finding that the petitioner had no interest and by rejecting the application for reference without leaving the matter to the competent Court under S.18.

Opposing Parties' Arguments

Mr. K.C. Mohanty

  • Because the petitioner's name does not occur in the award as drawn up, the petitioner could claim a reference only under Section 30 and not under Section 18 of the Act.
  • Against an order refusing to make a reference under Section 20 (?) (as argued), no civil revision lies. (The opinion records his contention that no civil revision lies.)
  • Relied on majority view in paragraph 13 of AIR 1966 SC 237, Dr. G.H. Grant v. State of Bihar, to support the contention about the award and reference provisions.

Mr. J.K. Mohanty

  • Relied on Title Suit No. 392 of 1942 (decided 25-10-1943) in which the title of Satyabadi Das against certain predecessors-in-interest of Opposite Party-1 was negatived; since the petitioner derived title from Satyabadi Das, he is bound by that previous decree and his present claim is frivolous.
  • On that basis, contended the petitioner is not a "person interested" entitled to ask for a reference under S.18.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Chintada Kasiviswanadham v. Sub Collector, Berhampur (26 Cut LT 552 : AIR 1961 Ori 39) That the Collector (or LAO) cannot decide an application under S.18 on its merits and then refuse to refer the matter to the Civil Court. The court relied on this authority to support the proposition that the LAO acted improperly in deciding the petitioner's claim to be fictitious and refusing to make a reference under S.18.
Dr. G.H. Grant v. State of Bihar (AIR 1966 SC 237) Majority view in paragraph 13 explaining interaction between S.18(1) and S.30, and describing the circumstances in which a person shown in the apportionment part of the award may apply for a reference. The court examined the cited passage and held it does not mean a person must necessarily appear in the award to seek a S.18 reference; rather, a person not party to the acquisition proceeding may seek a S.30 reference. The court rejected the opposing counsel's contention that the Grant decision supported excluding the petitioner from S.18 remedies.
Samanta Radhaprasanna v. Province of Orissa (AIR 1952 Orissa 98) Held in that case that no civil revision lay against an order of the Collector refusing to make a reference; the order was set aside by exercise of Article 227 of the Constitution. The court noted this decision (and its follow-up in 26 Cut LT 552) but held that both overlooked the Orissa Amendment (Land Acquisition (Orissa Amendment) Act, 1948) and are therefore contrary to law regarding the competence of civil revision under the amendment.

Court's Reasoning and Analysis

The court began by stating the statutory definition in Section 3(b) of the Act: the expression "person interested" includes all persons "claiming an interest" in compensation payable on account of acquisition of land. The court emphasized that the underlined phrase "claiming an interest" puts emphasis on the act of laying a claim. Whether the claim proves true or fictitious is a matter of investigation.

The court explained the distinct roles of the Land Acquisition Officer and the competent Civil Court under Section 18. While the LAO may examine a claim initially and accept a true claim and reject a fictitious one, he is not the final authority to determine the nature and character of the claim when a reference is sought under Section 18. Once a petitioner whose claim has been negatived does not accept the award and seeks a reference, the LAO is bound to make the reference and cannot refuse it solely on his own finding that the claim is fictitious, because such refusal denies the exercise of jurisdiction vested in him under S.18.

The court relied on the prior decision in Chintada Kasiviswanadham v. Sub Collector which held it is not open to the Collector to decide an application under S.18 on the merits and then refuse to refer the matter to the Civil Court.

The court then set out Section 18(1) text and tested the facts against its requisites. It found all conditions of Section 18 satisfied: the petitioner was a party to the acquisition proceeding, claimed interest in the entire compensation, no award was made in his favour, he did not accept the award, and he applied in writing within the statutory time to require reference to the competent Civil Court. The LAO's refusal to make a reference was therefore an illegal exercise of jurisdiction.

Addressing the contention based on the majority passage in Dr. G.H. Grant v. State of Bihar, the court interpreted the passage and concluded it does not require that a person's name appear in the award before seeking a Section 18 reference. Rather, the Grant decision acknowledges that a person who did not appear in the acquisition proceedings may seek a Section 30 reference; it does not negate a party's entitlement under Section 18 where the person was a party and had made a claim.

The court observed the procedural facts: though an earlier judgment on 2-9-1963 found the petitioner not entitled, the award finally drawn up on 12-12-1964 omitted the petitioner's name — a clerical mistake. The court indicated the proper corrective measure is to amend the award by inserting the petitioner's name with an endorsement that compensation payable is nil. The omission did not change the substantive fact that the petitioner was a party to the acquisition proceeding and had advanced a claim.

On the availability of civil revision, the court reviewed earlier decisions (including Samanta Radhaprasanna and the Division Bench in 26 Cut LT 552) which held no civil revision lay. The court pointed out that the Land Acquisition (Orissa Amendment) Act, 1948 inserted a sub-section after Section 18(2) providing that any order made by the Collector on an application under Section 18 is subject to revision by the High Court as if the Collector were a subordinate Court within the meaning of Section 115 CPC. Because of this statutory amendment, the court held that civil revision is competent and that the earlier decisions which held otherwise overlooked the Orissa amendment and are contrary to law.

Holding and Implications

Core Ruling: The impugned order refusing to make a reference under Section 18 is set aside and the civil revision is allowed.

Direct consequences for the parties:

  • The Land Acquisition Officer is directed to make a reference under Section 18 of the Land Acquisition Act, 1894 in accordance with law.
  • The civil revision filed by the petitioner is allowed.
  • Parties are directed to bear their own costs.

Broader legal implication addressed in the opinion:

  • Because of the Land Acquisition (Orissa Amendment) Act, 1948 (inserting a provision that Collector's orders on Section 18 applications are subject to High Court revision as if the Collector were a subordinate court under Section 115 CPC), a civil revision lies against the Collector's order refusing to refer under Section 18. Earlier decisions to the contrary (AIR 1952 Orissa 98; 26 Cut LT 552 : AIR 1961 Ori 39) overlooked this amendment and are stated to be contrary to law and not to be followed to that extent.

The opinion does not purport to decide the substantive entitlement to compensation on the merits; it directs that the claim be referred to the competent Civil Court for adjudication under Section 18.


End of summary based exclusively on the provided opinion.

    Narayan Das v. Kasinath Pani And Others Opp. Parties.

    1. The disputed land measuring 1.01 acre was acquired. The petitioner claimed the entire disputed land as belonging to him. The Land Acquisition Officer negatived his claim and held that the opp parties were entitled to compensation. The award was prepared and signed on 12-12-64. On 15-12-64 the petitioner filed an application praying that the matter may be referred by the Collector to the District Judge for determination of the person to whom the compensation is payable. The Land Acquisition Officer in his order dated 29-12-64 held that the petitioner failed to establish that he had any interest in the acquired property. The revision is filed against this order refusing to make a reference under Section 18 of the Land Acquisition Act, 1894 (hereinafter referred to as the Act). Mr. Ranjit Mohanty contended that the petitioner is a “person interested” within the meaning of the expression in S. 3(b) of the Act and that the Land Acquisition Officer acted in excess of his jurisdiction in recording a finding that the petitioner had no interest in the land and in rejecting his application for reference on that finding without leaving the matter to be determined by the competent Court under S. 18 of the Act. Mr. K.C Mohanty, on the other hand, contended that the petitioner's name did not occur in the award and, as such, he could claim a reference only under S. 30 and not under S. 18 of the Act and that against an order refusing to make a reference under S. 20, no civil revision lies. Mr. J.K Mohanty contended that in Title Suit No. 392 of 1942, decided on 25-10-43, the title of Satyabadi Das as against Bharat Chandra Pani, Ramchandra Pani and Luxman Pani, the predecessors-in-interest of Kasinath Pani (Opp. Party-1), was negatived; as the petitioner derived title from Satyabadi Das, he is bound by the previous decree and his present claim is frivolous. As such, he is not a person interested to ask for a reference under S. 18.

    2. All these contentions require careful examination.

    3. Section 3(b) of the Act defines “a person interested” thus—

    “3. In this Act, unless there is something repugnant in the subject or context—

    (a) xxx

    (b) the expression “person interested” includes all persons ‘claiming an interest’ in compensation to be made on account of the acquisition of land under this Act; and a person shall be deemed to be interested in land if he is interested in an easement affecting the land.”

    4. The underlined (here in ‘ ’) expression “claiming an interest” puts emphasis on laying a claim. On investigation the claim may be true or fictitious. The Land Acquistion Officer would accept a true claim and not a fictitious one. He is, however, not the final authority to dispose of the claim if a reference under S. 18 is sought. The nature and character of the claim is to be finally determined by the competent Court to whom the reference is made under S. 18. Doubtless it was open to the Land Acquisition Officer to examine in the first instance whether the petitioner had a true claim to be accepted on the basis of which compensation was payable. But once the petitioner's claim was negatived and he did not accept the award, reference at his instance is bound to be made by the Land Acquisition Officer under S. 18 and cannot be rejected on his own finding that the claim is fictitious. Refusal to make a reference on his own finding that the claim is fictitious is denying the exercise of a jurisdiction vested in him under S. 18.

    5. The identical argument was advanced before a Bench of this Court in 26 Cut LT 552 : (AIR 1961 Ori 39) Chintada Kasiviswanadham v. Sub Collector, Berhampur. Their Lordships held that it is not open to the Collector to decide an application under S. 18 on the merits of the objections raised therein and then refuse to refer the matter to the Civil Court.

    6. Section 18 of the Act runs thus, so far as relevant—

    “18(1)—Any person interested who has not accepted the award may, by written application to the Collector, require that the matter may 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 persons to whom it is payable, or the apportionment of the compensation among the persons interested.”

    7. In this case, all the conditions of S. 18 have been satisfied. The petitioner was a party to the land acquisition proceeding. He claimed interest in the entire compensation. No award was made in his favour. He did not accept the award. By a written application to the Collector he required that the matter be referred by the Collector for determination of the Court, which, by S. 3(d) of the Act, means a principal civil Court of original jurisdiction. The application was filed within six weeks of the date of the Collector's award. The Land Acquisition Officer (the Collector) illegally exercised his jurisdiction in refusing to make a reference. The contention advanced by Mr. J.M Mohanty has no substance and is rejected.

    8. Mr. K.C Mohanty contends that as the award does not contain the name of the petitioner, he can ask for a reference only under S. 30 and not under S. 18 of the Act. Reliance is placed on the majority view in paragraph 13 of AIR 1966 SC 237, Dr. G.H Grant v. State of Bihar. The passage runs thus—

    “There are two provisions. Ss. 18(1) and 30, which invest the Collector with power to refer to the Court a dispute as to apportionment of compensation or as to the persons to whom it is payable By Sub-s. (1) of S. 18 the Collector is enjoined to refer a dispute as to apportionment or as to title to receive compensation, on the application within the time prescribed by Sub-s. (2) of that section by a person who has not accepted the award. Sec. 30 authorises the Collector to refer to the Court after compensation is settled under S. 11, any dispute arising as to the apportionment of the same or any part thereof or as to the persons to whom the same or any part thereof is payable. ‘A person shown in that part of the award which relates to apportionment of compensation’ who is present either personally or through representative, or on whom notice is served under Sub-s. (2) of S. 12 must, if he does not accept the award, apply to the Collector within the time prescribed under S. 18(2) to refer the matter to the Court.”

    9. Mr. K.C Mohanty puts emphasis on the underlined (here in ‘ ’) portions and contends that before a reference under section 18 is competent, the name of the person must appear in the award itself. The sentence relied upon does not say so. The observations of their Lordships in the very passage — “but a person who has not appeared in the acquisition proceeding before the Collector may, if he is not served with the notice of the filing, raise a dispute as to apportionment or as to the person to whom it is payable and apply to the Court for a reference under S. 30 for determination of his right to compensation which may have existed before the award” — clearly indicate that a person, who was not a party to the land acquisition proceeding, can ask for a reference under S. 30 and not under S. 18 of the Act.

    10. The reason why Mr. K.C Mohanty advanced such a contention may be noticed. The petitioner was a party to the land acquisition proceeding. On 2-9-63 the Land Acquisition Officer passed his judgment that the petitioner was not entitled to any compensation. The award was not, however, drawn up till 12-12-64. In the award drawn up, the name of the petitioner was completely omitted. The correct procedure would have been to insert the name of the petitioner in the award and to write against his name that the compensation payable was nil. The omission of the name of the petitioner from the award ultimately drawn up was a clerical mistake. Such clerical mistake could be rectified by sending the award back for inserting the name of the petitioner in the award and writing against his name that compensation payable is nil. When this case goes back, the Land Acquisition Officer would amend the award by writing the name of the petitioner therein with an endorsement that the compensation payable to him is nil. It would not affect the position that he was a party to the land acquisition proceeding claiming the entire interest in the land acquired. The substantive right is derived not from the formal drawal up of the award but from the fact of the petitioner being a party to the land acquisition proceeding and advancing a claim. He could not have, however, asked for a reference until the award was drawn up in accordance with the judgment passed on 2-9-63. This position is made clear in the Commentary under Section 7 of the Law of Land Acquisition and Compensation by Ramchandran, 3rd Ed. at page 371. The learned author puts the matter thus—

    “The Collector cannot omit from his award the name of any person who has made a claim (for he is, from the definition, a person interested) [S. 3(b)], although the Collector finds him not entitled to any compensation and would award nil for him, unless such person withdraws his claim.”

    11. There is no substance in the contention advanced by Mr. K.C Mohanty and it is accordingly rejected. The application filed by the petitioner before the Collector asking for a reference under S. 18 of the Act was competent.

    12. The next question for consideration is whether a civil revision lies against the impugned order. In AIR 1952 Orissa 98, Samanta Radhaprasanna v. Province of Orissa, his Lordship Panigrahi, J. held that no civil revision lay. The order of the Collector in that case refusing to make a reference was, however, set aside in exercise of power under Article 227 of the Constitution of India. This Single Judge decision was followed by the Division Bench in 26 Cut LT 552 : (AIR 1961 Ori 39) (see paragraph 2).

    13. It is unfortunate that the attention of their Lordships in the aforesaid two decisions was not invited to Orissa Act XIX of 1948. The Land Acquisition (Orissa Amendment) Act, 1948. By Section 2 of this Act, sub-sec. (3) was inserted after Section 18(2) of the Act. Sub-s. (3) runs thus—

    “Any order made by the Collector on an application under this section shall be subject to revision by the High Court as if the Collector were a Court subordinate to the High Court within the meaning of Section 115 of the CPC, 1908.”

    14. By this amendment, a civil revision is competent. The view expressed in AIR 1952 Orissa 98 and 26 Cut LT 552 : (AIR 1961 Ori 39) that no civil revision lies is contrary to law. Both the decisions overlooked the Orissa Amendment and to that extent are not to be followed.

    15. In view of the aforesaid finding the impugned order is set aside. The Land Acquisition Officer is directed to make a reference under S. 18 of the Act in accordance with law. The civil revision is allowed. In the circumstances, parties to bear their own costs.

    DRR

    16. Revision allowed.

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    Comments

    Narayan Das v. Kasinath Pani And Others Opp. Parties.
    (Dec 12, 1967)