IMPORTANT POINTS
Limitation starts running from the date of actual or constructive knowledge.
Sale of land belonging to scheduled caste in Rajasthan is void ab initio u/s 42 of the Rajasthan Tenancy Act. Title cannot claimed by a non SC person on Sc land even by adverse possession.
Circular issued by Deputy Secretary, not in the name of the Governor cannot be deemed to be policy decision of the Government.
Documentary evidence will prevail over oral evidence.

Headnote:(a) Rajasthan Land Acquisition Act, 1953 – Section 12(2) and 18(2) – Possession taken from Society on 22.5.1982 – Society submitting objections on 20.7.1982 – Rejected on 4.9.1982 – Award passed on 30.11.1982 – Society having constructive knowledge and notice of the award way back in 1982 – Notice issued on 31.12.1988, although not warranted – Reference bad in law and time barred. (Para 17, 18)
       AIR 1961 SC 1500 – Relied upon
       (2014) 2 SCC 720; AIR 1951 Mad. 204 – Referred
       (b) Rajasthan Tenancy Act – Section 42 – Society purportedly entering into agreements to sell on 17.2.1974, 21.2.1974 and 21.2.1976 – Agreements not been placed on record – Khatedars belonging to Scheduled caste – Caste not denied by Society – Agreements void ab initio. (Para 19, 21)
       (c) Rajasthan Tenancy Act – Section 42 r/w Article 341, Constitution of India – Purported agreement for sale between Scheduled caste khatedars and the Society – Being a juristic person does not help the Society – It is not Scheduled caste – Some members of the Society belonging to Scheduled caste not material – Alleged agreement hit by section 42 – Not valid – Society could not claim title on the lands of Scheduled caste khatedars even on ground of adverse possession. (Para 22, 26, 27
       (2012) 10 SCC 283; (1984) 3 SCC 301; (1984) 3 SCC 301; (1977) 2 SCC 435; AIR 2004 SC 3457; AIR 2004 SC 3782 – Relied upon
       (d) Rajasthan Tenancy Act – Section 42 r/w section 4, Land Acquisition Act, 1894 and Article 341 and 342, Constitution of India – Transaction of the Society with the Scheduled caste khatedars void ab initio – Not entitled to compensation. (Para 30, 31)
       (1996) 3 SCC 124; (2012) 12 SCC 133 – Distinguished
       (e) Land Acquisition Act, 1894 – Section 9 and 18 – Agreement with khatedars being void ab initio – Society not ‘interested person’ – Not entitled to apportionment of compensation. (Para 32, 33)
       (1980) 3 SCC 223 – Relied upon
       1958 (60) Bom.LR 1208 – Cited with approval
       (f) Rajasthan Tenancy Act – Section 175 – Agreement of Society with Scheduled caste khatedars void ab initio – Land taken possession by State – Section 175 not attracted. (Para 36, 37)
       (2004) 13 SCC 585; (2014) 8 SCC 282 – Distinguished
       (g) Property law – Right to property – Cannot be taken away except in accordance with the provisions of the statute – Applicable when such right has been acquired – Instantly, transaction being void ab initio, Society not acquiring right to the land – Question does not arise. (Para 41)
       (2007) 10 SCC 448; (2013) 1 SCC 353; (2013) 11 SCC 1; (2014) 5 SCC 610 – Distinguished
       (h) Land Acquisition – Circular dated 27.10.2005 – In the form of guidelines for future acquisitions in case of surrender by owners – Instant case not a case of surrender – Further, Circular introduced at the appellate stage for the first time – Circular not applicable. (Para 46)
       DB Special Appeal No.697/1995 – Distinguished
       (i) Administrative law – Circular – Allotment of developed land – Circular issued by Deputy Secretary – Not in the name of the Governor – Cannot be deemed to be policy decision of the Government – Not enforceable – Decree on that basis would be a nullity – Article 166, Constitution of India (Para 48, 52, 53)
       (2011) 12 SCC 94; (1994) 4 SCC 370; (1997) 1 SCC 35 – Relied upon
       (2010) 3 SCC 621; (2013) 4 SCC 210 – Distinguished
       (j) Land Acquisition Act, 1894 – Section 18 and 23 – Determination of price of land – Oral evidence can be relied upon – But where documentary evidence is available, it will prevail. (Para 57)
       (1997) 2 SCC 693; (2011) 15 SCC 133; (2013) 14 SCC 50; (1997) 2 SCC 693 – Relied upon
       (2011) 15 SCC 133; (2013) 14 SCC 50 – Distinguished
       (k) Land Acquisition Act, 1894 – Section 18 and 23 – Only the khatedars or their legal representatives held entitled to receive compensation. (Para 60, 61)
       Facts of the case:
       The State Government issued a notification for acquisition of land for the purpose of housing scheme of Rajasthan Housing Board. On 22.5.1982 the possession had been handed over to Rajasthan Housing Board. The Society preferred objections before the Land Acquisition Officer (LAO). The objections preferred by the Society were rejected vide order dated 4.9.1982.
       Award was passed with respect to four cases on 30.11.1982 in favour of Khatedars. With respect to the remaining cases the award was passed on 2.1.1989. Notice under section 12(2) of the Act of 1953 was issued to the Society with respect to the award of 30.11.1982 on 31.12.1988.
       The Society applied for reference under section 18 of the Act of 1953. One of the Khatedars namely Prabhu also sought reference registered. The Civil Court answered the reference determining the compensation at Rs.260 per sq.yd. The objection raised by the Housing Board with respect to the entitlement of Society under section 42 of the Rajasthan Tenancy Act, was brushed aside.
       The High Court reduced the compensation to Rs.100 per sq.yd. The Division Bench has not only affirmed the aforesaid award but has additionally directed to consider allotment of 25% of developed land in view of circular dated 27.10.2005 in terms of the order passed by a Division Bench in Special Appeal No.697/1995.
       Finding of the Court:
       Society is not entitled to any relief.
       Result: The direction of the High Court granting 25% of the developed land set aside.
       Appeals preferred by the Rajasthan Housing Board and the Khatedars partly allowed; remaining appeals dismissed.

JUDGMENT

ARUN MISHRA, J.

1. Leave granted in SLP [C] Nos.21344-21353/2015.

2. The appeals arise out of a common judgment and order dated 29.10.2009 passed by a Division Bench of the High Court of Rajasthan in Special Appeal No.13/2001 and other connected matters. The Rajasthan Housing Board, original Khatedars and the New Pink City Housing Construction Co-operative Society Ltd. (transferee) (hereinafter referred to as the Society’) have assailed the impugned judgment and order on different grounds. The Rajasthan Housing Board has prayed for setting aside direction to consider 25% of developed land and compensation, whereas the original khatedars have prayed for payment of compensation to them. Similarly, the Rajasthan Housing Board has also questioned the entitlement of the Society to claim compensation. The Society has also claimed for more value of land.

3. The State Government issued a notification under section 4 of the Rajasthan Land Acquisition Act, 1953 (for short ‘the Act of 1953’) on 12.1.1982. The land had been acquired for the purpose of housing scheme of Rajasthan Housing Board. On 22.5.1982 the possession had been handed over to Rajasthan Housing Board under section 9 of the Act of 1953. The Society preferred objections before the Land Acquisition Officer (LAO). The objections preferred by the Society were rejected vide order dated 4.9.1982.

Thereafter, Award was passed with respect to four cases by the LAO on 30.11.1982 in favour of Khatedars. With respect to the remaining cases the award was passed on 2.1.1989 by the LAO. Notice under section 12(2) of the Act of 1953 was issued to the Society with respect to the award of 30.11.1982 on 31.12.1988.

4. The Society applied for reference under section 18 of the Act of 1953. On 17.4.1989, the reference was made to the Civil Court. One of the Khatedars namely Prabhu also sought reference registered as Case No.43/1989. The Civil Court answered the reference on 23.1.1994 determining the compensation at Rs.260 per sq.yd. The objection raised by the Housing Board with respect to the entitlement of Society under section 42 of the Rajasthan Tenancy Act, was brushed aside. On appeal to the High Court, the single Bench vide impugned judgment and order dated 22.3.1999 reduced the compensation to Rs.100 per sq.yd. The Division Bench has not only affirmed the aforesaid award but has additionally directed to consider allotment of 25% of developed land in view of circular dated 27.10.2005 in terms of the order passed by a Division Bench in Special Appeal No.697/1995.

5. The Khatedars have claimed that they are ‘Bairwa’ by caste which is a Scheduled Caste notified under the Constitution Scheduled Castes Order, 1950.

6. The Society has claimed that it had entered into an agreement to sell with Khatedars of the land on 15.2.1974, 17.2.1974, 21.2.1974 and 22.1.1976. The Society has also claimed that it had applied to the Rajasthan Housing Finance Society Ltd. for financial assistance for construction of houses and an NOC dated 7.6.1982 was issued to it by the Urban Improvement Trust, Jaipur. The Society objected to the acquisition but objections were rejected on 3.9.1982 in four cases out of which Reference Case No.1989, 2089, 3089 and 4089 arose. The award was passed on 30.11.1982. Later on, the Society appears to have filed a civil suit for specific performance of agreement to sell in the year 1986 against the Khatedars and compromise decrees are said to have been passed on 2.10.1986, 3.10.1986 and 24.1.1988 thereby decreeing the suit in favour of the Society.

7. It was submitted on behalf of the State Government, Rajasthan Housing Board and also by the Khatedars that the transactions between the Society and Khatedars, if any, were ab initio void in view of the provisions contained in section 42 of the Rajasthan Tenancy Act. Thus, decree obtained on the basis of void transaction is a nullity and no right had accrued to the Society to claim compensation.

8. It was urged before us on be