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Poshetty And Others v. State Of A.P .
Factual and Procedural Background
The Collector passed an award under Section 11 of the Land Acquisition Act, 1894 (“the Act”). A dispute arose as to whether, under Section 12(2) of the Act, the notice of the award that must be served on interested persons must also enclose a copy of the award itself. A Full Bench of the High Court of Andhra Pradesh, in Writ Petition No. 12604 of 1987, held on 21-2-1991 that service of a copy of the award is not required. Pursuant to leave granted under Article 133 of the Constitution, the present appeal was filed before the Supreme Court challenging that Full Bench view.
Legal Issues Presented
- Whether service of the notice of an award under Section 12(2) of the Land Acquisition Act, 1894 must be accompanied by a copy of the award itself.
- Consequent to the above, when does the limitation period under the proviso to Section 18(2) of the Act begin to run for seeking a reference to the civil court?
Arguments of the Parties
Appellants’ Arguments
- Relied on the Division Bench decision in Special Deputy Collector, Land Acquisition (S.S.P.) v. C. Sai Reddy, AIR 1984 AP 24, to contend that Section 12(2) requires service of the award itself along with the notice.
- Submitted that the Full Bench of the High Court erred in disregarding the requirement of serving a copy of the award, especially in light of the omission of the second clause in the proviso to Section 18(2).
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Special Deputy Collector, Land Acquisition (S.S.P.) v. C. Sai Reddy, AIR 1984 AP 24; (1983) 2 Andh WR 235 | Earlier Andhra Pradesh High Court view that Section 12(2) requires service of the award copy along with notice. | Cited by the appellants; the Supreme Court declined to follow it in view of subsequent authoritative pronouncement. |
| State of Punjab v. Satinder Bir Singh, (1995) 3 SCC 330 | Interpretation of Sections 11, 12(2) and 18(2): notice under Section 12(2) is merely an intimation; supplying a copy of the award is not mandatory; limitation under Section 18(2) runs from receipt of notice. | Relied on as binding authority to uphold the High Court’s conclusion that service of a copy of the award is not required. |
Court's Reasoning and Analysis
The Court examined the statutory scheme of Sections 11, 12 and 18 of the Act. Section 12(1) makes the award final and conclusive evidence as between the Collector and interested persons. Section 12(2) obliges the Collector to give “immediate notice” of the award to persons who were not present when the award was made. The Court reasoned that:
- The Act differentiates between persons present at the time of the award and those absent. If a copy of the award need not be supplied to a person who was present, it would be illogical to require such a copy for a person who was absent.
- Notice under Section 12(2) is a ministerial act meant only to intimate the making of the award so that the person interested can decide whether to accept compensation with or without protest.
- The limitation periods in the proviso to Section 18(2) start either from the date of the award (for those present) or from receipt of notice (for those absent). These periods are not contingent upon service of the full award or any particular form of notice.
- The Supreme Court’s earlier ruling in State of Punjab v. Satinder Bir Singh authoritatively settled that communication of the award itself is not a precondition; therefore, the Full Bench’s view accords with established law.
- Any local amendment to the Act in Andhra Pradesh did not materially alter this statutory interpretation.
Holding and Implications
The appeal is dismissed. The Supreme Court affirmed the High Court’s interpretation that service of a copy of the award is not necessary under Section 12(2) of the Land Acquisition Act, 1894. Consequently, limitation for seeking a reference under Section 18 runs from the receipt of notice itself. The decision leaves the statutory framework unchanged and imposes no costs on either party; it reinforces existing precedent without creating new legal doctrine.
Order
1. This appeal by leave granted by the High Court of Andhra Pradesh under Article 133 of the Constitution arises from its Full Bench judgment dated 21-2-1991 in Writ Petition No. 12604 of 1987. In this appeal, the only controversy is whether service of notice of award passed under Section 11 of the Land Acquisition Act, 1894 (for short, “the Act”) along with its enclosure, is a precondition under sub-section (2) of Section 12 of the Act. The Full Bench of the High Court by judgment dated 12-9-1990 in Writ Petition No. 13203 of 1985 and batch held that service of the award with notice is not necessary. The learned Judges relying upon the omission of second clause in proviso to Section 18(2) of the Act held that it is not necessary that copy of the award should be served. It is contended by Shri D.P Reddy, the learned counsel for the appellants, that sub-section (2) of Section 12 was interpreted by a Division Bench of the Andhra Pradesh High Court in Special Dy. Collector, Land Acquisition (S.S.P) v. C. Sai Reddy AIR 1984 AP 24, (1983) 2 Andh WR 235. The Full Bench, therefore, was not right in its construction. The controversy is no longer res integra. This Court in State of Punjab v. Satinder Bir Singh (1995) 3 SCC 330 has considered the scope of sub-section (2) of Section 12 vis-à-vis proviso to sub-section (2) of Section 18 and held as under:
“The question then is whether the notice under Section 12(2) is a valid notice. From a conjoint reading of Sections 11 and 12, it is clear that notice is only an intimation of making of the award requiring the owner or person interested to receive compensation awarded under Section 11. On receipt of the notice, if the person interested receives compensation without protest, obviously no reference need be made. The determination of compensation becomes final and binds the parties. When he receives the compensation under protest as contemplated under Section 31 of the Act, the need to make the application for reference under Section 18(1) would arise. At that juncture it will be open to the person interested either to make an inspection of the award which was conclusive between him and the Collector by operation of sub-section (1) of Section 12, or seek a certified copy of the award from the Collector and the contents. Thereon he could make necessary objection for the determination inter alia, of compensation for the land. It is not necessary that the notice should contain all the details of the award including his consideration and its manner of determination of the compensation as opined by the learned Judge of the High Court. It is not incumbent that the person interested should immediately make the reference application on his receiving compensation under Section 31. In other words receipt of the amount and making the reference application are not simultaneous. The statutory operation of limitation mentioned by Section 18(2) does not depend on the ministerial act of communication of notice in any particular form when the Act or Rules has not prescribed any form. The limitation begins to operate from the moment the notice under Section 12(2) is received or as envisaged by Section 18(2).”
2. It is seen that sub-section (1) of Section 12 postulates that award made under Section 11 shall be filed in the Collector's Office and the same shall be final and conclusive evidence as between the Collector and the persons interested, whether or not they have respectively appeared before the Collector, of the true area of the land acquired, the value of the land acquired and the apportionment of the compensation among the persons interested. The Collector is, therefore, required to issue notice of his award to such of the persons interested who were either not present personally or were present through representatives when the Collector made his award. Sub-section (2), therefore, requires him to give immediate notice of award to such interested persons and not simply the communication of the award as contended for. If such interested person who was present personally or through the representative at the time of making of the award, is not required to be supplied the copy of the award, would it be intended that the award should be served along with notice to a person who was not present. This question was considered in the above case and it was held that the service of notice is a ministerial act and the Act did not intend to supply the copy of the award. The limitation provided under proviso to sub-section (2) of Section 18 prescribes that if an applicant is present or represented, he has to make an application when he receives the compensation under protest within six weeks from the date of the Collector's award and where he was not present within six weeks of the receipt of the notice from the Collector under sub-section (2) of Section 12 or within 6 months from the date of the Collector's award, whichever period shall first expire. In other words, the proviso to sub-section (2) of Section 18 prescribes the limitation within which the application for reference under sub-section (1) of Section 18 is required to be made and the failure thereof puts an end to the right of the claimant to seek a reference under Section 18. This Court has already held that communication of the award is not a precondition and, therefore, the Full Bench of the High Court was right in its interpretation of the provisions of Section 18, proviso read with sub-section (2) of Section 12. The local amendment does not, therefore, make any material change to the aforesaid interpretation.
3. The appeal is accordingly dismissed but, in the circumstances, without costs.
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