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Nitai Dutt v. Secretary Of State For India In Council

Patna High Court
Dec 20, 1923
Smart Summary (Beta)

Structured Summary of the Provided Opinion

Factual and Procedural Background

The appellant, Nitai Dutt, was one of three brothers who were tenants of a house and some land in Jharia, Manbhum. The Collector acquired the property under the Land Acquisition Act, 1894. Notices under section 9 were issued to the three brothers (Brojo Dutt, Nitai Dutt and Bhusan Dutt); the record shows that a notice issued to Nitai Dutt was accepted by Bhusan Dutt for himself and on behalf of Brojo and Nitai.

Proceedings under section 11 were conducted and concluded on 18 December with the Collector making an award. The total award for the land was Rs.3,300 (approx.), with Rs.900 awarded as the share to each brother. On 17 January the appellant petitioned for a reference to the District Judge under the relevant provisions (Part III / Part IIIs references in the text) asserting, among other things, that (a) the land belonged to him alone, (b) compensation for the house was inadequate, (c) the proper compensation based on market rate should be much higher (he stated not less than Rs.7,000), and (d) that he had not received the notice required by section 9.

The Judge (District Judge) refused the petition on a preliminary basis, concluding there was no allegation of non-service in the petition and ultimately dismissed the reference, upholding the Collector’s award. The appellant appealed. The present opinion reviews that decision and addresses whether the appellant should have been permitted to have the matter referred and whether omission to claim before the Collector was for a "sufficient reason" under section 25(3) of the Act.

Legal Issues Presented

  1. Whether the appellant falls within clause (3) of section 25 of the Land Acquisition Act (i.e., whether he omitted to make a claim before the Collector for a sufficient reason because he did not receive the section 9 notice), entitling him to a reference to the Judge and to an award that may exceed the Collector's award.
  2. Whether the acceptance of a section 9 notice by one brother (Bhusan Dutt) on behalf of the appellant (Nitai Dutt) suffices to constitute valid service on the appellant in circumstances where no evidence of authority was produced.
  3. Whether an appeal to the High Court lies under section 54 from the decision of the District Judge in this case (noting the respondent’s contention that no appeal lay because there was no "award of the Court" to appeal from).

Arguments of the Parties

Appellant's Arguments

  • The land belonged solely to the appellant (Nitai Dutt).
  • The compensation awarded for the house was very small and inadequate.
  • Based on market rates at Jharia, fair compensation for the land should have been not less than Rs. 7,000.
  • The appellant had received no notice as required by section 9 of the Land Acquisition Act and therefore did not and could not make a claim under section 11 before the Collector.
  • Because he omitted to make a claim before the Collector for a sufficient reason (non-service), he should be treated under section 25(3) and the Court may award him not less than and possibly more than the Collector's award.

Respondent / Objector's Arguments

  • The Government Pleader and the objector took a preliminary point that the petitioner had not preferred any claim under section 9 (i.e., he made no claim before the Collector), and therefore the reference should be dealt with accordingly (this was used to justify refusal of time to produce evidence).
  • A separate preliminary objection was raised that no appeal lay from the District Judge's decision to the High Court, relying on section 54 of the Act on the ground that there was no "award of the Court" in any proceedings under the Act following dismissal of the reference.
  • The Vakil for the objector asserted that his client had been served with notice (or that notices were duly served), which the District Judge treated as a presumption to be rebutted by evidence from the appellant.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court proceeded through a sequence of factual and legal observations:

  1. The appellate court first observed that the District Judge was mistaken in stating that the petition contained no allegation of non-service; the petition explicitly asserted that the appellant had received no notice as to the area of the land acquired and that a notice had subsequently been issued in his name (but in practice accepted by Bhusan Dutt).
  2. The District Judge had refused to grant the appellant time to produce documents supporting his valuation claim because the appellant had not met the Government Pleader's preliminary objection that he had not made any claim under section 9. The District Judge relied on a supposed presumption that notices were duly served and that the appellant bore the onus to rebut such a presumption.
  3. The appellate court rejected the existence of any such presumption in these circumstances, because the factual record showed that the notice in respect of Nitai Dutt had been accepted by Bhusan Dutt. The court held that acceptance of a notice by one brother does not, without evidence, establish authority to accept on behalf of another brother.
  4. The court analyzed the statutory scheme:
    • Section 9 requires the Collector to serve notice on the occupier and on all persons known or believed to be interested.
    • Section 3(b) defines "persons interested" to include all persons claiming an interest in compensation under the Act.
    • Section 3(g) enumerates the limited classes of persons who are entitled to act for others (trustees, certain married women, guardians of minors, committees or managers of lunatics), and does not include an ordinary brother as a person automatically entitled to act for another.
    From this statutory framework, the court concluded that it was incumbent on the Collector to serve notice upon each person interested and that service upon one of three equally interested brothers was not sufficient as a matter of law absent proof of authority.
  5. Given the absence of evidence about authority, the relationship of the brothers, or whether the appellant in fact knew of the notice and authorized his brother, the appellate court held that speculation was impermissible. The matter required evidence.
  6. Consequently, the court remanded the case to the District Judge to take appropriate evidence and determine whether the appellant omitted, for a sufficient reason, to make a claim before the Collector within the meaning of section 25(3). The court specifically recommended that the Judge seek:
    • Evidence from the serving peon as to the manner of service;
    • Testimony from the appellant to give his version;
    • Testimony from Bhusan Dutt to explain the basis of his accepting or acting on behalf of the appellant and whether he had authority to do so.
  7. On the respondent's preliminary objection that no appeal lay under section 54 because there was no award of the Court, the appellate court rejected that contention. It reasoned that the District Judge's dismissal of the reference had the effect of affirming the Collector's award, and whether the award is varied or confirmed, an appeal under section 54 is permissible. The decree reflected that the reference was dismissed and the Collector's award upheld; therefore the preliminary objection lacked substance.
  8. The appellate court also observed that the District Judge had dismissed the petition on a preliminary point which, on appeal, proved to be without substance; given that, the appellant was entitled to a refund of the court-fee. Finally, the appellate court directed that general costs of the appeal should await the final result of the reference before the District Judge.

Holding and Implications

Holding: Case remanded to the District Judge for further evidence and determination under section 25(3) of the Land Acquisition Act as to whether the appellant omitted to make a claim before the Collector for a sufficient reason (specifically whether he was not served or whether he authorized his brother to accept service). The appeal court also held that an appeal under section 54 was available in these circumstances.

Immediate consequences for the parties:

  • The matter is sent back to the District Judge to receive evidence (serving peon, the appellant, and Bhusan Dutt) and to determine whether the appellant was properly served or had sufficient reason under section 25(3) for omitting to claim.
  • The appellant is entitled to a refund of the court-fee paid on this appeal; a certificate should issue to that effect.
  • General costs of the appeal are ordered to abide the final result of the reference before the District Judge (i.e., costs reserved until final determination).

Broader legal implication: The opinion interprets statutory service and procedural protections in the Land Acquisition Act (sections 3, 9 and 25) and rejects the application of a blanket presumption of service where the record shows that notice was accepted by another brother without proof of authority. The judgment does not purport to lay down a new broad precedent beyond the application of the cited statutory provisions to the facts of the case.

Disposition

Case remanded. Foster, J. agreed with the disposition.

Show all summary ...

Dawson Miller, C.J:— The appellant in this case is Nitai Dutt, one of three brothers who were the tenants of a house and some land in the town of Jharia in district Manbhum. The house and land were taken over by the Collector on behalf of the Government under the provisions of the Land Acquisition Act, 1894. Under section 9 of the Act notices were ordered to issue upon Nitai Dutt and his two brothers Brojo Dutt and Bhusan Dutt who were presumably members of a joint family occupying the house or a portion of the house and land in question. What happened when the notices were issued appears from the proceedings on page 3 of the paper book which states that notices issued to Brojo Dutt, Nitai Dutt and Bhusan Dutt were accepted by Bhusan Dutt for himself and for Brojo Dutt and Nitai Dutt. In due course proceedings took place under section 11 of the Act when some of the parties appeared and put forward objections and those objections were heard and disposed of. Before that it further appears that Bhusan Dutt appeared before the Collector on the 21st October and obtained time purporting to act on behalf of himself and his two brothers, including the appellant. Time was allowed, the proceedings were put off until the 27th October and on the latter date there was a further adjournment at the instance of Bhusan Dutt until the 13th November. No further action appears to have been taken by any party and on the 18th December the proceedings, under section 11 of the Act, were concluded and an award was made by the Collector. The total amount awarded in respect of the land was Rs. 3,300 some odd annas. The proportion of that sum awarded to Brojo Dutt, Nitai Dutt and Bhusan Dutt was Rs. 900. On the 17th January following the appellant presented a petition claiming a reference to the Court under the provisions of Part Til of the Act and in that petition he gave as his reasons for wishing to have the matter referred to the Judge and the award re-opened first of all that the land belonged to him alone, that the compensation which had been awarded for the house was very small and that according to the market rate obtaining at Jharia the compensation for the acquired land was not less than Rs. 7,000 and also gave further reasons which need not be gone into. In the same petition he stated that he had received no notice as required under section 9 of the Act. The reason for stating that he had no notice was no doubt because of the provisions of section 25 of the Act which section is a part of Part III of the Act which refers to procedure in cases of reference to a Judge. That section provides for three classes of cases. The first clause of the section refers to the case where the applicant has made a claim for compensation pursuant to a notice given under section 9. In that case the amount awarded to him by the Court, that is to say by the Judge to whom the, reference is made, shall not exceed the amount so claimed, and, at the same time, it shall not be less than the amount awarded by the Collector under section II. The appellant contends that he did not come within that clause of the section as having had no notice he made no claim at all under the provisions of section 11. The second clause provides for the case where the applicant has refused to make such a claim or has omitted, without sufficient reason, to make such a claim. In such a case the amount awarded by the Court shall, in no case, exceed the amount awarded by, the Collector. It follows, therefore, that if without any sufficient reason he has refused to take action before the Collector when the award is made he cannot afterwards ask the Court, to which the matter may be referred, to award him more than the Collector has already done. The third case is under clause 3 and that relates to cases when the applicant has omitted, for a sufficient reason, to make such a claim. In such a case the amount awarded to him by the Court shall not be less than and may exceed the amount awarded by the Collector. The appellant's contention is that he comes within clause 3. He did omit to make a claim before the Collector under section 11 but he contends that there was sufficient reason for so doing, that reason being, as stated in his petition, that he received no notice as provided under section 9 and if he can make out such a case it seems to me quite clear that he is entitled to come within section 25, clause 3, and ask the Court to reconsider the question upon the grounds stated in his petition for reference.

When the matter came before the Judge he considered that there was no allegation in the petition for reference, that the petitioner was not served with notice and was therefore incapable of filing a claim. On looking to the notice of reference, to which I have already referred, it appears quite clear that the learned Judge was in error in stating that there was no allegation in the petition, that the petitioner was not served. On the contrary the petition begins by submitting that the petitioner has received no notice as to the area of the land which was acquired on the 18th December, 1918, but he states that after the acquisition of the land a notice was issued in his name and in the names of two other persons to the effect that the sum of Rs. 900 would be paid to them as compensation. The learned Judge, when the matter came before him, refused to grant the petitioner time to produce certain documents to prove the rate for the land which he had asserted and the reason apparently why he did so was that the petitioner had made no attempt to meet by evidence the preliminary objection taken by the Government Pleader that he had preferred no claim at all under section 9 of the Act in pursuance of notice under that section. The Vakil for the objector had stated that his client was not served with notice but no evidence was taken before the learned Judge upon this question and the learned Judge said:

“The presumption is that notices were duly served and the reference contains a statement to that effect. It was for the objector to rebut that presumption and the allegation was evidently only an after-thought.”

In my opinion no such presumption as that which the learned Judge relied upon arises in this case for the simple reason that we know what the actual facts were. Those facts are stated in the reference itself from which it appears, as already stated, that the notice issued upon Nitai Dutt was not served upon him but was served upon his brother who apparently accepted it on his behalf. The mere fact that one of the three brothers accepts a notice on behalf of one or other of the others does not, in my opinion, raise any presumption that he had any authority to do so. Under section 9 of the Act it is provided in terms that in addition to a general notice the Collector shall also serve notice on the occupier, if any, and on all such persons known or believed to be interested therein or to be entitled to act for persons so interested. By section 3 of the Act, clause (b), the expression “Persons interested” includes all persons claiming an interest in compensation to be made on account of the acquisition of the land under the Act. It was, there-, fore, incumbent upon the Collector to serve a notice upon each of the persons interested as defined in that section and it was not sufficient for him to serve a notice merely upon one of three brothers each of whom was equally interested under the Act. Nor can it be suggested that Bhusan Dutt was a person entitled to act for the appellant because, under section 3 clause (g), the persons entitled to act are there set out and they comprise only trustees, a married woman in certain cases and the guardians of minors or the committees or managers of lunatics. It cannot, therefore, be said that Bhusan Dutt in this case was a person authorized to act on behalf of his brother. It may turn out when the facts are actually known that the appellant was well aware that the notice had been issued upon him and did in fact authorize his brother to act on his behalf but in the absence of any express evidence to that effect we can only speculate as to what the real truth was. We do not know in the least what the relationship between these brothers was, or whether when Bhusan Dutt acted on behalf of his brother he was doing so bonâ fide or with some other motive. At any rate there is no evidence before the Court at all from which it can come to any satisfactory conclusion upon this matter and it seems to me that the case will have to go back to the Judge for him to determine under section 25, clause (3), whether, in the circumstances to be ascertained by evidence, the appellant has omitted for a sufficient reason to make a claim under section 11 of the Act.

I ought to state that a preliminary point was taken on behalf of the respondent to the effect that no appeal lay from the decision of the Judge in this case and in support of that contention he relied upon section 54 of the Act which provides that subject to the provisions of the Civil Procedure Code, applicable to appeals from original decrees, an appeal shall lie to the High Court from the award or any part of the award in any proceedings under this Act. The Court there referred to is the Court of the District Judge to whom the matter was referred and the argument is that in the present case the petitioner's application for revision having been rejected there was in fact no award of the Court in any proceedings under the Act and that, therefore, there was no appeal permissible within the provisions of section 54. This argument, in my opinion, cannot be sustained. What in fact happened was that the award made by the Collector was affirmed by the District Judge when the reference to him took place. The result of dismissing the claim referred had the effect of confirming the Collector's award and whether the award was varied or whether it was confirmed there is, in my opinion, in either case, an appeal permissible under section 54. Moreover it appears from the decree drawn up in pursuance of the Judge's decision that the order was that the reference be dismissed and the Collector's award be upheld. In my opinion there is no substance in the preliminary objection.

The result is that this matter must go back to the learned Judge to determine upon evidence whether or not the appellant was actually served, or, if in fact he was not served, whether he afterwards authorized his brother to appear and act on his behalf. I think that the Judge should have evidence, if possible, from the serving peon. It may be that the service in the circumstances was perfectly regular because if the appellant could not be found then it was permissible for the peon to serve another member of the family instead of the appellant himself. I also think that the learned Judge should insist upon having before him both the appellant himself to give his version and Bhusan Dutt who certainly purported to act on behalf of his brother, and if he had no authority in fact to act on behalf of his brother, then some explanation would certainly be required from that witness. I think the appellant is entitled to a refund of the court-fee. Let a certificate issue to that effect. The case was not tried by the learned Judge. It was dismissed upon a preliminary point which has turned out to be without substance. I think that the general costs of this appeal should abide the final result of the reference before the learned Judge.

Foster, J.:— I agree.

Case remanded.