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Structured Summary of the Judgment (R.F.A. 82 of 1968 & R.F.A. 115 of 1968)

Factual and Procedural Background

The Punjab Government acquired approximately 316 acres of land by notification dated 27 March 1963. The claimant, Sangeet Mohinder Singh, owned 41 bighas 12 biswas of that land. Dissatisfied with the Collector's award, the claimant filed a reference under Section 18 of the Land Acquisition Act to the District Judge, Patiala. The reference was decided by the learned Additional District Judge on 30 December 1967. Both the claimant and the respondents (the State of Punjab and the Punjabi University) were aggrieved by the Additional District Judge's award and filed cross appeals: R.F.A. 82 of 1968 (Sangeet Mohinder Singh v. The Punjabi University) and R.F.A. 115 of 1968 (State of Punjab v. Sangeet Mohinder Singh). These cross appeals arise out of that award and are disposed of together by the present judgment.

Legal Issues Presented

  1. Whether the claimant's appeal is maintainable when the claimant named only the Punjabi University as respondent and did not make the State of Punjab a party, given that the land was acquired by the State.
  2. Whether the claimant's appeal can be treated as cross-objections to the appeal filed by the State of Punjab and the Punjabi University.
  3. What is the correct market value of the different parcels of acquired land as on 27 March 1963 (Issue No. 1 framed by the Additional District Judge)?
  4. Whether the claimant is entitled to enhanced compensation for a building and, if so, the amount (Issue No. 2).
  5. Whether the claimant is entitled to enhanced compensation for fruit-trees and, if so, the extent (Issue No. 3).
  6. Whether the claimant filed a claim pursuant to the notice under Section 9 of the Act and what effect that has; alternatively, whether the petition is barred under Section 25 if no such claim was filed (Issues No. 4 and No. 5).
  7. Relief to be granted (Issue No. 6).

Arguments of the Parties

Respondents' (State of Punjab and Punjabi University) Arguments

  • Preliminary objection that the claimant's appeal is not maintainable because the claimant failed to make the State of Punjab a party; the State (not the University) acquired the land and, therefore, any claim for enhanced compensation must be pursued against the State.
  • Submission under Section 25 of the Land Acquisition Act that the claimant had claimed only Rs. 50,000 in response to the Section 9 notice and the Court could not award more than that total amount; hence the Additional District Judge's award (Rs. 57,425) exceeded the permitted limit.

Claimant's Arguments

  • The claimant contended that his appeal could be treated as cross-objections to R.F.A. 115 of 1968 filed by the State and the University and invoked the Full Bench decision in Labhu Ram v. Ram Partap to support treating his appeal as cross-objections (i.e., to avoid maintainability objections).
  • The claimant advanced specific valuations in his Section 18 reference: for land, for fruit trees (claimed Rs. 10,000 in the Section 18 application though earlier he had claimed Rs. 2,000 before the Collector), for a tube-well (claimed Rs. 8,000 in Section 18 application but Collector found none), and for a building (claimed Rs. 3,000 before the court while the Collector had awarded Rs. 700).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Andhra Pradesh Agricultural University v. Began Savanna, AIR 1974 Andh Pra 299 Stated principle: land acquired under the Act is acquired by the Government; compensation is payable by the Government; the lis is between Government and claimant; the beneficiary company (for whose benefit land is acquired) is not a proper party for compensation claims. The Court relied on this dictum to uphold the preliminary objection that the claimant's appeal was incompetent because the claimant had not made the State of Punjab a party and could only claim enhanced compensation from the State.
Labhu Ram v. Ram Partap, AIR 1944 Lah 76 (Full Bench) Interpreted Order 41, Rule 22 CPC: a respondent's right to file cross-objections accrues when notice of hearing is issued (not necessarily upon service), and a cross-appeal may be treated as cross-objections in appropriate circumstances. The claimant relied on this authority to argue his appeal should be treated as cross-objections; the Court examined Labhu Ram but distinguished the facts, noting that Labhu Ram permitted treatment of a later-filed cross-appeal as cross-objections when the appeal had already been filed; in the present case the claimant's appeal was filed earlier and thus could not be treated as cross-objections to the State's appeal.
Dasrulal Bhagchand Lal v. Naravan Mahadeo, AIR 1937 Nag 105; Bawa Singh v. Thakur Singh, AIR 1922 Lah 423; Bhagat Ram v. Raghbar Dial, AIR 1925 Lah 57 Authorities cited in Labhu Ram in support of the proposition that a cross-appeal may be treated as cross-objections in certain circumstances under Order 41, Rule 22. These cases were referenced within the Labhu Ram discussion; the Court noted them as part of the body of authority considered in Labhu Ram but ultimately applied Labhu Ram's timing-based conclusion to the facts before it.
Mt. Koshalia v. Riaz-ud-Din, AIR 1936 Lah 362 Authority cited as indicating a contrasting view on the timing/limits of cross-objections under Order 41, Rule 22. Labhu Ram considered and rejected a restricted interpretation similar to Mt. Koshalia; in the present judgment the Court treated the timing of filing (claimant filed before the State's appeal) as decisive and so did not treat claimant's appeal as cross-objections.
Charu Prokash v. State of West Bengal, AIR 1967 Cal 631 Explained that while the total amount awarded by the Court on reference cannot exceed the total amount claimed under Section 9, the Court is not strictly bound by itemized amounts and may enhance some items and reduce others provided the aggregate does not exceed the total claim. The Court relied on this authority (and its reasoning) to reject the State's submission under Section 25 that the claimant was barred from obtaining an award exceeding the itemized amounts; the Court held the Additional District Judge did not err in awarding amounts that altered itemized figures so long as the total did not exceed the claimant's aggregate claim under Section 9.
Province of Bengal v. P. L. Nun, AIR 1945 Cal 312; Province of Bengal v. Ram Chandra, AIR 1944 Cal 247 Cases explaining the scope of restrictions under Section 25/claim-limits; used to support the view that while aggregate claim limits apply, item-by-item adjustments are permissible. Charu Prokash relied on these Calcutta High Court decisions; the present Court cited Charu Prokash (which in turn cited these cases) to support its interpretation of Section 25 and to repel the State's objection.
Pramatha Nath v. Secretary of State, 57 Ind APD 100 = AIR 1930 PC 64; V. Naravana Gaiaoatiraiu v. Revenue Divisional Officer, Vizagapattam, 66 Ind APP 104 = AIR 1939 PC 981 Privy Council decisions referenced in Charu Prokash and earlier Calcutta decisions to explain the interplay between claims before the Collector and awards on reference. The Court referenced Charu Prokash which relied on these Privy Council decisions; this chain of authority supported the Court's conclusion that the overall award cannot exceed the total amount claimed under Section 9 but that item-wise adjustments are permissible.
Ravendra Singh (case name mentioned; no formal citation provided in the opinion) Referred to in the opinion as the basis for instances used to determine market value for certain Khasra parcels; the opinion does not state the legal principle from that case beyond its use in valuation. The Court stated that market value was determined on the basis of instances considered in the case of Ravendra Singh and that the award of the Additional District Judge in respect of land was affirmed (reference made to R.F.A. No. 174 of 1968 decided the same day).

Court's Reasoning and Analysis

The Court proceeded in two main strands: (A) preliminary/maintenance objections concerning parties and procedural posture; and (B) the substantive determination and confirmation of compensation amounts on the issues framed by the Additional District Judge.

A. Maintainability and Procedural Questions

- The Court accepted the respondents' preliminary objection grounded on the authority of Andhra Pradesh Agricultural University v. Began Savanna: because acquisition is effected by the Government and compensation is payable by the Government, the Government is a necessary party where enhancement of compensation is sought. The claimant had not made the State a party to his appeal and had named only the Punjabi University; therefore, the appeal was, in principle, not competent.

- The claimant sought to avoid this consequence by asking that his appeal be treated as cross-objections to the State's R.F.A. The Court examined the Full Bench decision in Labhu Ram v. Ram Partap concerning Order 41, Rule 22 (CPC) and the permissibility of treating cross-appeals as cross-objections. Labhu Ram permits treating a cross-appeal as cross-objections where the right to file cross-objections accrues (i.e., once notice of hearing on the appeal is issued) and need not await actual service; Labhu Ram relied on earlier authorities but rejected a restrictive timing view.

- Applying that principle to the present facts, the Court observed that the claimant's appeal had been filed before the State and University filed their appeal; Labhu Ram's rationale operates where cross-objections are filed after an appeal is pending (or after notice issuing), but here the sequence was reversed. Consequently the claimant's appeal could not be treated as cross-objections to the State's appeal.

B. Substantive Determinations on Compensation

- Issue No. 1 (Market value of land): The Additional District Judge had determined market values for different Khasra parcels (Rs. 1,500 per bigha for certain parcels totalling 31 bighas 13 biswas, and Rs. 1,000 per bigha for other parcels totalling 9 bighas 19 biswas). The Court upheld the Additional District Judge's finding, noting that the market value was determined based on instances considered in the case of Ravendra Singh and that the Court affirmed the award in the related R.F.A. No. 174 of 1968 decided the same day. Therefore there was no scope for enhancement or reduction of the land compensation.

- Section 25 objection (aggregate claim limit): The State argued that because the claimant had claimed only Rs. 50,000 in response to the Section 9 notice, the court could not award more than that sum. The Court examined subsection (1) of Section 25 and its proper meaning: the total amount awarded by the Court on reference cannot exceed the total amount claimed by the claimant in reply to a Section 9 notice, nor be less than the amount awarded by the Collector under Section 11. The Court accepted the interpretation in Charu Prokash (and the authorities it relied upon) that the claimant is not strictly limited by the itemized amounts in the petition of reference; the Court may enhance certain items and reduce others provided the aggregate awarded does not exceed the total claimed. Applying that understanding, the Court repelled the State's objection that the Additional District Judge had improperly awarded more than the claimed aggregate.

- Issue No. 3 (Fruit-trees): The claimant claimed Rs. 10,000 in the Section 18 application, but had claimed only Rs. 2,000 before the Collector. The Additional District Judge accepted a fruit-specialist's report and awarded Rs. 3,498.20. The Court found no error in the specialist report or the Additional District Judge's reliance on it and therefore affirmed the award for fruit-trees.

- Tube-well claim: Although Rs. 15,000 was claimed before the Collector (who found no tube-well) and Rs. 8,000 was claimed in the Section 18 reference, the Additional District Judge found support in Khasra/Girdawari entries and witness statements for the existence of a well/tube-well but observed that there was no evidence as to its precise value. He therefore allowed Rs. 2,000 for a well. The Court found no scope for enhancement or reduction and affirmed that finding.

- Building claim: The claimant demanded Rs. 3,000; the Collector had awarded Rs. 700. A draftsman (PW4) prepared a plan and estimated construction cost of Rs. 1,850 (Exhibit P-6). The Additional District Judge accepted that estimate in the absence of rebuttal by the State. The Court found no error in accepting the draftsman's estimate and affirmed the award for the building.

Holding and Implications

HOLDING: The appeals are dismissed. The parties are directed to bear their own costs.

Implications:

  • The Court upheld the Additional District Judge's determinations on market value for the land parcels, compensation for fruit-trees, the allowance for a well/tube-well, and the compensation for the building — confirming there was "no scope either for enhancement or reduction" of those specific amounts as found by the trial court.
  • On the procedural point, the Court accepted the principle (as stated in Andhra Pradesh Agricultural University v. Began Savanna) that where land is acquired by the State the State is a necessary party for claims to enhanced compensation; a claimant who omits the State risks an inadmissible appeal. The claimant's attempt to recharacterize his appeal as cross-objections failed because of the sequence in which appeals were filed in this matter.
  • The Court applied the interpretation of Section 25 (via Charu Prokash and related authorities) that the aggregate award cannot exceed the aggregate amount claimed under Section 9, but item-wise adjustments by the Court are permissible so long as the overall cap is observed. The State's objection under Section 25 was therefore repelled on that basis.
  • The judgment disposes of the cross appeals without altering the monetary awards made by the Additional District Judge; the decision operates as a final determination between the parties in these matters. The opinion does not announce a new rule of law beyond the application and clarification of existing authorities cited in the text.

If any specific detail (for example, full citations or the contents of some precedent decisions beyond the excerpts included) appears abbreviated above, that reflects the limited exposition of those authorities within the provided opinion; no external material has been introduced.

    Shri Sangit Mohinder Singh, v. The Punjabi University, Patiala, .

    1. This judgment will dispose of R. F. A. 82 of 1968 Sangeet Mohinder Singh v. The Punjabi University. Patiala, and R. F: A. 115 of 1968. State of Punjab v. Sangeet Mohinder Singh. as they are cross appeals arising out of the award of the learned Additional District Judge. Patiala. dated December 30. 1967.

    2. The Punjab Government acquired about 316 acres of land situated in villages Sheikhupura Kamboan, Nasinpur. Karheri and Phaloli. by notification dated March 27. 1963. The land of Sangeet Mohinder Singh (hereinafter called the claimant), measuring 41 bighas 12 biswas formed Dart of the acquired land. Not satisfied with the award made by the Land Acquisition Collector, the claimant filed an application under Section 18 of the Land Acquisition Act (hereinafter referred to as the Act) for reference of the dispute with regard to the compensation to the Court of District Judge, Patiala. That reference was heard and decided by the learned Additional District Judge. Patiala. Both the parties have felt aggrieved and filed the present appeals which are being disposed of together.

    3. The learned counsel for the State of Punjab and the Punjabi University has raised a preliminary objection to the maintainability of the appeal filed by the claimant. The claimant in his appeal only made the Punjabi University respondent and not the Punjab State. The land was acquired by the State of Punjab and not by the Punjabi University. It has been held by a learned Single Judge of the Andhra Pradesh High Court in the Andhra Pradesh Agricultural University v. Began Savanna, AIR 1974 Andh Pra 299 as under: --

    "Part VII of the Act deals with acquisition of land for companies and Provides for agreements to be entered into by the company with the Government for the payment of the cost of the acquisition. among other matters. This brief survey of the provisions of the Act shows that the land is acquired by the Government, the land vests in the Government after acquisition, compensation has to be paid to the claimant by the Government and it is to the Government alone that a claimant must look for payment of compensation. If any issue is raised by the claimant the issue has to be settled with the Government only and none else. The lis if any. is between the Government and the claimant. The person for whose benefit the land is acquired and who may ultimately pay to the Government the cost of acquisition has nothing to do with the lis."

    According to this dictum, the Punjab State was a necessary party to the appeal as the claimant could only claim enhanced compensation from the Punjab State and not from the Punjabi University. There is thus merit in the preliminary objection of the learned counsel for the Punjab State and the Punjabi University to the effect that the appeal filed by the claimant is not competent.

    4. The learned counsel for the claimant, however, submits that the appeal can be considered as cross-objections to R. F. A. 115 of 1968 filed by the State of Puniab and Puniabi University and reliance is placed on a Full Bench judgment of the Lahore High Court in Labhu Ram v. Ram Partap. AIR 1944 Lah 76 (FB), wherein the following observations occur:--

    "The third question whether the cross-appeal submitted by Labhu Ram and others can be treated as cross-objections is also not free from conflict of authority. Under Order 41. Rule 22. Civil Procedure Code, cross-objections are entertainable if filed within one month from the date of service on the respondent or his pleader of notice of the day fixed for hearing the appeal or within such further time as the appellate Court may see fit to allow. Counsel for the appellants urges that inasmuch as their appeal had been filed after the appeal of Ram Partap and others had been admitted to a hearing and notice to the respondents had been issued, it could be heard as cross-objections to the appeal of Ram Partap and others, even if as appeal it was not competent. Reliance in this connection is placed on Dasrulal Bhagchand Lal v. Naravan Mahadeo. AIR 1937 Nag 105. Bawa Singh v. Thakur Singh. AIR 1922 Lah 423 and Bhagat Ram v. Raghbar Dial. AIR 1925 Lah 57. Counsel for the respondents, on the other hand, relied on a Bench judgment of this Court as reported in Mt. Koshalia v. Riaz-ud-Din. AIR 1936 Lah 362. and urges that this could not be done inasmuch as the cross-appeal had not been filed after the service of notice on Labhu Ram and others but before. That a cross-appeal can be treated as cross-objection admits of no doubt and there is no authority contrary to the rulings relied upon by the appellants in this connection. The only question is whether the right of a respondent to file his cross-objections is so restricted as is adumbrated in AIR 1936 Lah 362. In other words, could it be the intention of the Legislature in enacting Order 41. Rule 22 to specify the point of time in which such cross-objections could be filed at both ends? After giving this matter my careful consideration, I have reached the conclusion that it could serve no purpose to restrict the right of a respondent to prefer his cross-objections in the manner suggested. No doubt, they cannot be presented after the expiry of one month from the date of the service of the notice on him or his pleader, but the right to submit his cross-objections, in my view, accrues to a respondent as soon as an order is made issuing notice of the date of hearing of the appeal to him and it is not necessary for him to wait until the service is actually effected on him. It is even open to him to appear in a Court of appeal on the date of hearing and present his objections there and then though not served at all. To Put the restricted interpretation upon this provision of law would create situations which may look anomalous. I would, therefore, hold that, in the circumstances of this case, the cross appeal presented by Labhu Ram and others could be treated as cross-objections.

    Counsel for the respondents, however, argues that inasmuch as the list of parties attached to the cross-objections did not contain the names of the two respondents. Krishen Kumar and Inder Kumar. that defect would still be fatal to the cross-objections, as they would not be heard as against those two respondents. There is, however, no substance in this objection. The cross-objections are always preferred to an appeal that is pending and the title of the cross-objections remains the same as that of the appeal. It is admitted that the names of these respondents appear in that memorandum of appeal and consequently the appellants' cross-objections in respect of the decree granted against them would be entertainable even as regards those respondents."

    According to this judgment, the cross-objections are preferred to an appeal which means that the appeal must have been filed prior to the filing of the cross-objections. In the instant case, the claimant had filed his appeal before the State of Punjab and the Punjabi University filed their appeal and, therefore, his appeal cannot be treated as cross-objections to the appeal of the Punjab State and the Punjabi University. Moreover, we find no merit in the appeal of the claimant even if it is considered as cross-objections to the appeal filed by the State of Punjab and the Punjabi University.

    5. The following issues were framed by the learned Additional District Judge for determination of the amount of compensation to which the claimant was entitled:--

    1. Whether the market value of the land acquired on 27th March. 1963. was more than what had been awarded by the Land Acquisition Collector and if so. what was that price ?

    2. Whether the claimant is entitled to enhanced compensation for the building and tube-well existing on the land acquired, if so how much ?

    3. Whether the claimant is entitled to enhanced compensation in respect of the fruit-trees standing in the land acquired and if so, to what extent ?

    4. Whether the claimant filed a claim in pursuance to the notice served on him under section & of the land acquisition act. if so, what is its effect ?

    5. In case no such claim was filed, whether the claimant is entitled to any enhancement and this petition is not barred under Section 25 of the Land Acquisition Act ?

    6. Relief.

    Under issue No. 1 it has been held that the claimant was entitled to the market value of the land comprised in Khasra Nos. 45. 46. 47. 48. 51 and 52 (total 31 bighas and 13 biswas) at the rate of Rs. 1,500/- per bigha and for the land comprised in Khasra Nos. 49 and 50 (9 bighas and 19 biswas) at the rate of Rs. 1,000/- per bigha. This market value has been determined on the basis of the instances considered in the case of Ravendra Singh. We have upheld the award of the Additional District Judge with regard to that land in R. F. A. No. 174 of 1968, decided today. For the reasons stated in that judgment, the decision of issue No. 1 by the Additional District Judge is affirmed. There is thus no scope either for enhancement or reduction in the amount of compensation with regard to the land.

    6. However, the learned counsel for the State of Punjab and the Punjabi University has submitted that in his claim filed in pursuance of the notice under Section 9 of the Act, the claimant had claimed only Rs. 50,000/- for the land whereas the learned Additional District Judge has allowed Rs. 57,425/- which he could not do in view of the provisions of Section 25 of the Act. According to that provision, the claim for compensation of the land could not exceed Rs. 50,000/-. We are of the opinion that the learned counsel has misread that provision. subsection (1) of section 25 is in the following terms:--

    "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."

    It only means that the total amount that may be awarded by the Court on a reference under Section 18 of the Act shall not exceed the total amount claimed by the claimant under Section 9 of the Act. It may be that the claim consists of various items and it is open to the Court to enhance the compensation in respect of some items and reduce it in respect of others. The overall limit is that the amount of compensation awarded is not to exceed the total amount of compensation claimed by the claimant in reply to a notice under Section 9 of the Act. A reference in this connection may be made to the observations of a Division Bench of the Calcutta High Court in Charu Prokash v. State of West Bengal. AIR 1967 Cal 631, which are contained in para. 12 of the report and are pertinent on the point:--

    "It was urged further on behalf of the State that, in any view, the claimant was not entitled to any amount beyond Rs. 1,50.000 for the structures as that was the figure, mentioned by the claimant for the said structures in his petition of reference. This objection was overruled by the learned Land Acquisition Judge upon the view that the claimant was not restricted to the different valuations for the different items in Ms petition of reference, although he might be held limited to the amount, claimed for the entire property in the said petition. This view appears to us to be well supported by the decision of this Court, reported in Province of Bengal v. P. L Nun. AIR 1945 Cal 312, explaining the earlier decision of this Court, reported in Province of Bengal v. Ram Chandra. AIR 1944 Cal 247. in the light of the two Privy Council decisions, reported in Pramatha Nath v Secy, of State, 57 Ind APD 100 = ( AIR 1930 PC 64) and V. Naravana Gaiaoatiraiu v. Revenue Divisional Officer. Vizagapattam. 66 Ind APP 104 = ( AIR 1939 PC 981. We are. accordingly, of the view that the State's objection to the award of the learned Land Acquisition Judge is unsustainable and its appeal F A. No. 133 of 1965, would fail."

    The objection is thus repelled.

    7. The claimant had. claimed Rs. 10,000/- on account of the value of the fruit trees in his application under Section 18 of the Act against which the learned Additional District Judge allowed Rs. 3,498.20. It is worthy of note that in his claim before the Land Acquisition Collector under Section 9 of the Act. The claimant had claimed only Rs. 2,000/- as the price of the fruit trees. The learned Additional District Judge based this value on the report of a fruit specialist which has not been shown to be erroneous. We, accordingly, affirm the decision of the learned Additional District Judge on the point and hold that there is no scope either for enhancement or reduction.

    8. A sum of Rs. 15,000/- was claimed on account of the price of a tube-well in the claim filed before the Land Acquisition Collector but he found that there was no tubewell on the spot and none was acquired by the State Government. In his application under Section 18 of the Act the claimant claimed a sum of Rs. 8,000/- on account of the price of the tubewell. The learned Additional District Judge has observed that the entries in the Khasra Girdawaris support the statement of Shri preet Mohinder Singh. The father of the claimant, about the existence of a tubewell on the land but there was no evidence as to the value of the tubewell and, therefore, its price could not be determined. He allowed Rs. 2,000/-on account of compensation for a well and in view of what has been stated by the learned Additional District Judge, there is no scope either for enhancement Or reduction in the amount.

    9. The only other claim relates to a building on the acquired land. The claimant demanded Rs. 3,000/- for the same but the Collector awarded a sum of Rs. 700/- only. Shri Raj Kumar Goel Draftsman, prepared plan, Exhibit P-5, and estimated the cost of construction of the building as Rs. 1,850/- in his report. Exhibit P- 6. He appeared as P. W. 4 to support his report. That report was accepted in the absence of any rebuttal on behalf of the State of Punjab. There is, therefore, no scope either for enhancement or reduction in the amount of compensation for the building.

    10. As a result of the above discussion, we find no merit in these appeals which are dismissed but the parties are left to bear their own costs.

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    Comments

    Shri Sangit Mohinder Singh, v. The Punjabi University, Patiala, .
    (Jan 24, 1975)