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K. Muralidhar Reddy And Others v. The Special Deputy Collector, L.A Unit, Gadwal And Another

Andhra Pradesh High Court
Apr 27, 1993
Smart Summary (Beta)

Structured Summary of the Opinion

Factual and Procedural Background

The petitioners own lands in several survey numbers in Nandimalla village, Atmakur mandal, Kurnool district which were acquired in 1981 for construction of an earth dam. A notification under section 4(1) of the Land Acquisition Act was issued on 26-9-1981. An award was passed on 31-8-1982 fixing compensation at Rs. 2,000/-, Rs. 3,000/- per acre for dry lands and Rs. 4,500/- per acre for wet lands. The petitioners sought a reference under Section 18 of the Act for enhancement of compensation.

The learned Subordinate Judge, Gadwal, by common order dated 26-4-1990 in O.P. No. 42/85 and batch partly allowed the reference and awarded enhanced compensation at Rs. 10,000/- per acre for dry lands and Rs. 18,000/- per acre for wet lands, along with 30% solatium and interest as per the Act. Both parties have preferred appeals to the High Court (appeal suit nos. 1851/91 and 1963/91 and batch), which were pending at the time of the opinion.

Although the civil court disposed of O.P. No. 42/85 and batch on 26-4-1990, respondents had not paid the compensation. The petitioners filed E.P. No. 95/90 and batch for realization and obtained an order of attachment of movable properties belonging to the respondents' office.

Legal Issues Presented

  1. Whether the High Court, in exercise of its jurisdiction under Article 226 of the Constitution, can direct payment of compensation awarded by a civil court despite appeals being pending in the High Court.
  2. Whether the mere pendency of appeals or the availability of execution proceedings precludes the petitioners from invoking writ jurisdiction under Article 226 to compel payment of compensation.

Arguments of the Parties

Petitioners' Arguments

  • The lands were compulsorily acquired in 1981 and, notwithstanding the civil court's enhanced award of 26-4-1990, the respondents have not paid the compensation even after more than a decade.
  • Respondents made inconsistent submissions in execution proceedings: at times alleging appeals are pending, at other times claiming insufficient funds, thereby seeking repeated adjournments and frustrating execution.
  • Respondents have been selectively depositing compensation in other matters (later disposed OPs) according to their preferences, creating a "vested interest group" and disregarding seniority of awards.
  • A Division Bench of the court in W.A. No. 1044/88 (dated 12-7-1988) directed payments to be made according to seniority; despite that, respondents continue a selective payment practice.
  • The usual practice when government files appeals is to seek conditional stay with deposit; in the petitioners' case respondents have not followed that practice, thereby avoiding conditional deposits and perpetuating non-payment.
  • Given the delay and the respondents' conduct, petitioners seek issuance of a writ of mandamus under Article 226 directing immediate payment as per the 26-4-1990 decree.

Respondents' Arguments

  • The High Court under Article 226 cannot direct respondents to pay the compensation while appeals are pending in the High Court.
  • Execution proceedings are pending and the petitioners can pursue available remedies in execution; therefore they should not invoke writ jurisdiction under Article 226.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Comptroller and Auditor General v. K. S. Jagannathan (Supreme Court) High Courts under Article 226 have the power to issue a writ of mandamus (or in the nature of mandamus) to compel a public authority or the government to properly and lawfully exercise discretion; to intervene where discretion is exercised mala fide, on irrelevant considerations, by ignoring relevant materials, or in a manner frustrating the object of the discretion; and where appropriate the court may itself pass orders which the authority should have passed. The court relied on this ratio to hold that it is competent under Article 226 to direct the respondents to pay compensation when the respondents have failed to discharge their obligation and injustice has resulted to the petitioners; pendency of appeals does not automatically bar such relief where no stay of payment exists.
Writ Appeal No. 1044/88 (Division Bench, dated 12-7-1988) The Division Bench directed respondents to deposit compensation in accordance with seniority — persons whose OPs were disposed of earlier should be paid earlier. The court noted this prior direction as part of the background establishing that respondents had previously been directed to follow seniority but nonetheless continued selective payments; this supported the finding of unfair and arbitrary conduct justifying writ relief.

Court's Reasoning and Analysis

The court began by accepting the factual position: the execution proceedings are pending and the respondents have taken inconsistent pleas before the civil court, including assertions that appeals are pending and that sufficient funds are unavailable. The court observed that such tactics — seeking delays, making inconsistent pleas, and selectively paying certain award-holders — are prevalent in land acquisition matters and have caused extended denial of compensation.

The court considered the respondents' contention that the petitioners should pursue execution proceedings and that the High Court cannot intervene while appeals are pending. It rejected a categorical bar to writ jurisdiction in such circumstances, noting two controlling considerations:

  1. There was no stay of payment as regards the awards, so pendency of appeals alone could not be used as an excuse to avoid payment; where no stay exists, respondents cannot refuse to pay on the ground that appeals are pending.
  2. The Supreme Court's dictum in Comptroller and Auditor General v. K. S. Jagannathan authorizes High Courts under Article 226 to issue mandamus to compel lawful exercise of statutory discretion by public authorities and to prevent injustice resulting from failure to perform obligations or from mala fide/irrational exercise of discretion.

Applying those principles to the facts, the court concluded that the petitioners had been subjected to injustice — their lands were acquired in 1981 and, more than 12 years later, compensation remained unpaid. The court found the respondents' selective payment practices and inconsistent excuses to be an improper exercise (or non‑exercise) of discretion justifying intervention under Article 226. Consequently, the court held it was competent and appropriate to direct immediate payment of the compensation awarded by the civil court, without regard to the pending appeals.

Holding and Implications

Holding: The writ petition was allowed. The court directed the respondents to pay the entire compensation amount to the petitioners in terms of the judgment and decree dated 26-4-1990 in O.P. No. 42 of 1985 and batch on the file of the Subordinate Judge's Court, Gadwal, within three months from the date of receipt of this order, without regard to the appeals pending in the High Court.

Direct consequences for the parties: The respondents are required to make payment of the awarded compensation (as specified in the 26-4-1990 decree) within three months. The writ petition was allowed and there was no order as to costs.

Broader implications: The opinion applies the established principle (from the cited Supreme Court authority) that writ jurisdiction under Article 226 can be exercised to compel public authorities to perform statutory obligations when they have failed or acted improperly. The opinion does not state that it establishes a new legal precedent beyond applying those existing principles to the facts of this case.

Show all summary ...

(1) Petitioners seek a writ of mandamus declaring the action of the respondents in not paying the enhanced compensation strictly in accordance with the seniority of the decree, as illegal and arbitrary, and consequently seek a direction to the respondents to pay the amount of compensation as per the order dated 26 - 4 - 1990 in o. P. No. 42 of 1985 and batch on the file of the subordinate judge's court, gadwal.

(2) Lands of the petitioners in s. Nos. 57, 69, 82, etc. , of nandimalla village, atmakur mandal in kurnool district were acquired for the purpose of constructing earth dam pjp left bank of nandimalla village. Pursuant to acquisition, notification under section 4 (1) of the land acquisition act (for short 'the act') was issued on 26 - 9 - 1981. Respondent no. 1 passed award on 31 - 8 - 1982 fixing compensation at the rate of rs. 2,000/ - and rs. 3,000/ - per acre for dry lands and rs. 4,500/ - per acre for wet lands. Aggrieved by the said award, petitioners sought reference under section 18 of the act to the civil court for enhancement of the compensation.

(3) The learned subordinate judge, gadwal by common order dt. 26 - 4 - 1990 partly allowed o. P. No. 42/85 and batch awarding compensation at the rate of rs. 10,000/ - per acre for dry lands and rs. 18,000/ - per acre for wet lands along with 30% solatium and interest as per the provisions of the act. It is stated that aggrieved by the judgment and decree of the civil court, the petitioners preferred appeal suit no. 1851/91 and batch while the respondents preferred appeal suit no. 1963/91 and batch, which are pending in this court. It is also stated that though o. P. No. 42/85 and batch were disposed of way back on 26 - 4 - 1990, no compensation is paid so far to the petitioners and, therefore, they filed e. P. No. 95/90 and batch for realisation of compensation amount and pbtained order of attachment of movable properties belonging to the office of respondents.

(4) Sri. C. Ramakrishna, learned counsel for the petitioners, has mainly contended that the lands in question were compulsorily acquired in 1981; award was passed in 1982; though we are in 1993, so far the respondents have not paid the compensation awarded by the civil court in o. P. No. 42 of 1985 and batch. It is further stated that inconsistent submissions were made by the respondents in the execution petitions that appeals are pending on the file of the high court and that sufficient funds were not available to pay the compensation; thus the efforts of the petitioners in getting the compensation are being frustrated by this type of methods adopted by the respondents. It is further contended that the respondents are adopting a subtle device by depositing the amounts in other ops. Which were disposed of much later than the present ops. , as the respondents have developed soft comer towards some of the land owners whose lands have been subsequently acquired and orders are passed by the civil courts much later. Sri. Ramakrishna further submits that the procedure normally adopted in the high court in all the cases where the government files appeals is to file a petition for stay of execution proceedings and that on such stay petition being filed, the high court normally grants interim stay on condition of the authorities depositing at least some amount till the disposal of the appeal. In the instant case, it is stated, the respondents have developed such method that no stay petition is filed, with the result no conditional order is passed in the appeals filed in the high court. It is further stated that in many cases, appeals have been filed and along with appeals, stay petitions have also been filed and this court granted conditional stay. Consequent upon such order, amounts have been deposited and the land owners withdrew the amounts. Unfortunately,sri ramakrishna submits, in the case of the petitioners, the respondents are adopting a step - motherly treatment, as the petitioners are not prepared to negotiate with the officials. Sri ramakrishna states that where thousands of acres of land was acquired for projects, where official respondents were adopting difference devices for paying the compensation to land owners, some of the aggrieved land owners, whose lands though acquired earlier and though civil court passed awards earlier in the ops. , yet the officials connected with land acquisition proceedings had created a "vested interest group" and were depositing compensation according to their whims and fancies irrespective of the age of the award. Under those circumstances, some of the land owners whose lands were acquired had filed writ petitions and also writ appeals seeking a direction for depositing the amounts. A division bench of this court in writ appeal no. 1044/88 dated 12 - 7 - 1988 considered the issues raised therein and directed the respondents to deposits the amount of compensation in accordance with the seniority. Despite the direction of the division bench, the respondents are following convenient methods to suit their interest. Under these circumstances, sri ramakrishna states that the petitioners are exposed to high and dry and have no other go than to approach this court under article 226 of the constitution of india seeking indulgence of this court for a direction to the respondents to pay the compensation immediately.

(5) The allegations made by the petitioners are not denied by the respondents. The grounds made out by the learned government pleader are that this court under article 226 of the constitution of india cannot direct the respondents to pay the compensation when appeals are pending in the high court. Secondly, when execution proceedings are pending, it is open to the petitioners to pursue the remedy available in the execution petitions and, therefore, they cannot invoke the jurisdiction under article 226 of the constitution of india.

(6) There is no dispute as to the fact of pendency of the execution proceedings. It is made known to me at the time of arguments that the civil court is also placed in helpless situation when the respondents are pleading before it that appeals have been pending on the file of the high court. It is also to be noticed that the respondents have been taking inconsistent pleas before the civil court that sufficient amounts are not available to discharge the obligation and, therefore, are seeking time repeatedly on one pretext or the other,. This method is very much prevalent in land acquisition proceedings. In similar circumstances, when the respondents were adopting various methods of pick and choose in paying compensation, some of the aggrieved persons moved this court by way of writ petitions and writ appeals seeking a direction to pay the compensation. The division bench of this court in w. A. No. 1044/88 has categorically directed the respondents to make payments strictly in accordance with the seniority, that! is to say, the persons whose ops. Are disposed of earlier should be paid earlier. That being the background of this case, it is not open to the respondents to say that remedy is available to the petitioners in execution proceedings and they cannot invoke the jurisdiction of this court under article 226 of the constitution of india. The appeals are no doubt pending on the file of this court, but there is no stay insofar as payment of compensation is concerned. Where there is no stay as regards payment of compensation, it is not open to the respondents to execuse themselves from making payment on the pretext that appeals are pending before the high court. This attitude of the respondents looks to me quite unnatural, as the lands in question have been acquired in 1981. Even after more than 12 years, the land owners are not paid their legitimate compensation. There is no rationale in denying the compensation to them.

(7) The question whether this court under article 226 of the constitution of india can come to the rescue of the petitioners in circumstances of this nature and direct the appropriate authority to discharge its obligation when this court has realised that such authority has failed to discharge its obligation, fell for consideration in the comptroller and auditor general vs. K. S. Jagannathan, wherein the supreme court held;

"there is thus no doubt that the high courts in india exercising their jurisdiction under article 226 have the power to issue a writ of mandamus or a writ in the nature of mandamus or to pass orders and give necessary directions where the government or a public authority has filed to exercise or has wrongly exercised the discretion conferred upon it by a statute or a rule or a policy decision of the government or has exercised such discretion mala fide or on irrelevant considerations or by ignoring the relevant considerations and materials or in such a manner as to frustrate the object of conferring such discretion or the policy for implementing which such discretion has been conferred. In all such cases and in any other fit and proper case a high court can, in the exercise of its jurisdiction under article 226, issue a writ of mandamus or a writ in the nature of mandamus or pass orders and give directions to compel the performance in a proper and lawful manner of the discretion conferred upon the government or a public authority,and in a proper case, in order to prevent injustice resulting to the concerned parties, the court may itself pass an order or give directions which the government or the public authority should have passed or given had it properly and lawfully exercised its discretion."

(8) Thus, it is evident from the ratio decidendi laid down by the supreme court that a high court under article 226, in given circumstances, can issue a writ of mandamus or a direction to compel performance in a proper and lawful manner of the discretion conferred upon the government or the public authority in order to prevent injustice resulting to the concerned parties. The entire history of the case would undoubtedly go to show that injustice has been done to the petitioners whose lands have been acquired way - back in 1981. Even after 12 years, the legitimate compensation if denied to the petitioners, can this not be termed as 'injustice' done to the petitioners? i have no doubt in my mind to hold that injustice is done to the petitioners on one pretext or the other. The mere pendency of appeals or alternative remedy in execution proceedings cannot be a ground for the respondents to excuse themselves in discharging their obligation which they are bound to discharge. Therefore, in my considered view, this court is competent to direct the respondents to act upon and pay the compensation to the petitioners.

(9) Accordingly, the respondents are directed to pay the entire compensation amount to the petitioners in terms of the judgment and decree dated 26 - 4 - 1990 in o. P. No. 42 of 1985 and batch on the file of the subordinate judge's court, gadwal, within three months from the date of receipt of this order, without regard to the appeals pending in the high court.

(10) The writ petition is accordingly allowed. No order as to costs.