Supreme Court Of India
S.N. VARIAVAAND H.K. SEMA, JJ.
NTPC LTD.-Appellant;
Versus
STATE OF BIHAR AND OTHERS-Respondents.
Civil Appeal No. 2780 of 1998, decided on January 14,2004
Land Acquisition - Impleadment of Acquiring Body - Land Acquisition Act - Section 11, Section 18 - The court discussed the right of the acquiring body to be impleaded in all references and the consequences of non-impleadment as established by the Constitution Bench judgment in the case of U.P. Awas Evam Vikas Parishad v. Gyan Devi. The court also referred to the cases of Abdul Rasak v. Kerala Water Authority and Kanak v. U.P. Avas Evam Vikas Parishad to support the position that non-impleadment of the acquiring body affects their rights and may vitiate the award, necessitating a retrial. The court held that the acquiring body has the right to be impleaded in the reference proceedings and set aside the awards in cases where compensation had been enhanced, remitting them back to the Reference Court with a direction to implead the acquiring body.
Fact of the Case:
Large tracts of lands were acquired for the purposes of constructing a thermal power station at Kahalgaon in the State of Bihar. The appellants, the body on whose behalf land was acquired, sought to be impleaded in all pending references and to quash awards where compensation had been enhanced.
Finding of the Court:
The court found that the acquiring body has the right to be impleaded in all reference proceedings and that non-impleadment affects their rights, potentially vitiating the award. The court set aside the awards in cases where compensation had been enhanced and remitted them back to the Reference Court with a direction to implead the acquiring body.
Issues: The main issue was whether the appellants, the acquiring body, have the right to be impleaded in all references and the consequences of non-impleadment.
Ratio Decidendi: The court relied on the Constitution Bench judgment in U.P. Awas Evam Vikas Parishad v. Gyan Devi and subsequent cases to establish the right of the acquiring body to be impleaded in the reference proceedings and the potential consequences of non-impleadment, including the vitiation of the award and the need for a retrial.
Final Decision: The court set aside the awards in cases where compensation had been enhanced and remitted them back to the Reference Court with a direction to implead the acquiring body. The appellants were deemed to have been brought on record in all these cases as well as all other pending cases. The Reference Court was directed to dispose of the references as expeditiously as possible and the appellants were granted the right to cross-examine witnesses and adduce evidence if they so desire.
Key Points: - The acquiring body has the right to be impleaded in all reference proceedings; non-impleadment affects their rights and may vitiate the award, necessitating retrial. (!) (!) - The High Court erred in not setting aside enhanced-award cases and remitting them to the Reference Court with direction to implead the acquiring body; the Awards in 492 cases where compensation was enhanced are set aside and remitted. (!) (!) - The Reference Court is to dispose of references expeditiously, with cross-examination rights preserved for the acquiring body and allowing further or recalled testimony as needed. (!)
ORDER
1. This appeal is against the judgment of the High Court dated 15-1-1998.
2. Briefly stated, the facts are as follows:
Large tracts of lands were acquired for the purposes of constructing a thermal power station at Kahalgaon in the State of Bihar. Not being satisfied with the amounts awarded by the Land Acquisition Officer, 1710 references were filed. Out of this 704 references have already been decided. 1006 references are still pending. From the 704 references, which have already a been decided, in 212 cases the compensation awarded by the Land Acquisition Officer has been confirmed. However, in 492 cases the Reference Court has enhanced the compensation. Out of 492 cases in which compensation has been enhanced the State has filed appeals in 302 cases and no appeals have been filed in 190 cases.
3. 1t must be mentioned that the appellants, who are the body on whose behalf land has been acquired, had made applications for being impleaded in two references. However, their applications for impleadment had been dismissed on 4-9-1992 and 6-1-1993 on the ground that they were neither necessary nor proper party.
4. The appellants then filed a writ petition in the High Court claiming that they were necessary and proper parties in all references and that they should be impleaded in all references which were pending. They further claimed that awards of the Reference Court by which compensation has been enhanced should be quashed and that those cases be referred back to the Reference Court with a direction that the appellants be impleaded as a party.
5. A learned Single Judge of the High Court, by his judgment dated 28-41995, held that in all the pending references i.e. the 1006 cases the appellants were to be impleaded as a party if not already impleaded. It was further held that in 302 appeals, which were pending before the High Court, the appellants could make an application for being impleaded. The learned Single Judge opined that if such applications were made, they were bound to be allowed unless and until it was shown that the appellants had notice of the reference proceedings and were not prejudiced. The learned Single Judge further gave liberty to the appellants to file appeals in the remaining 190 cases in which the Reference Court had enhanced the compensation. The delay in filing appeals was condoned. An appeal against this order was dismissed by the Division Bench by the impugned order dated 15-1-1998.
6. The question which arises for consideration is whether the appellants have a right to be impleaded in all references. This question is no longer res integra. The law is settled by a Constitution Bench of this Court in the case of u.P. Awas Evam Vikas Parishad v. Gyan Devil 1n that case, after considering various provisions of the Land Acquisition Act, it has been held that the body on whose behalf the land is acquired is not just a necessary party but is also a proper party before the Reference Court. It has been held that not giving them notice either at the stage of fixing compensation by the Collector or by the Reference Court affects their rights. It has been held that they must be impleaded as a party in the reference proceedings.
7. Thereafter, in the case of Abdul Rasak v. Kerala Water Authority2 a Bench of this Court, relying on the abovementioned judgment, has held that
an award given by the civil court on reference stands vitiated for want of notice to the acquiring body. It has been held that as the acquiring body had to be impleaded as a party to the proceedings before the civil court from the very beginning, a retrial becomes unavoidable. It has been held that in such cases the matters must be referred back to the Reference Court.
8. Again in the case of Kanak v. U.P. Avas Evam Vikas Parishad3 the abovementioned position has been reiterated.
9. Mr Sanyal, however, submitted that the Constitution Bench in Gyan Devi easel had not referred the matter back to the Reference Court. He submitted that the matte
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