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2004 Supreme(Kar) 506

Karnataka High Court
Judges : V.Gopala Gowda
BHIMASHANKAR CO-OPERATIVE SUGAR FACTORY LIMITED - Appellant
Versus
SPL.LAND ACQUISITION OFFICER AND ASST.COMMISSIONER - Respondent
W. P. 16801 Of 2004
Decided On : 08/11/2004
Advocates Appeared :
Gangadhar, KEMPANNA, R.Gurumath, S.A.Kalagi

The central legal point established in the judgment is the requirement to adhere to principles of natural justice and provide opportunity to the beneficiary in land acquisition proceedings.

Headnote:

Natural Justice - Land Acquisition - The court set aside the impugned judgment and award due to violation of principles of natural justice. The matter was remanded to the Reference Court with a direction to give opportunity to the petitioner and dispose of the same within six months.

Fact of the Case:

The petitioner, a Sugar Factory, was aggrieved by the compensation awarded by the Reference Court for acquired lands. The petitioner claimed violation of principles of natural justice as it was not heard in the matter.

Finding of the Court:

The court set aside the impugned judgment and award, remanding the matter to the Reference Court with a direction to give opportunity to the petitioner and dispose of the same within six months.

Issues: Violation of principles of natural justice, entitlement to seek to set aside the award passed under Section 18 of the Land Acquisition Act.

Ratio Decidendi: The court held that it is open for the beneficiary to invoke the jurisdiction either under Article 226 of the Constitution or avail the remedy provided under the Act. The court also emphasized the need to provide opportunity to the beneficiary and decided afresh after giving such opportunity.

Final Decision: The impugned judgment and award were set aside, and the matter was remanded to the Reference Court with a direction to give opportunity to the petitioner and dispose of the same within six months.

GOPALA GOWDA, J.

( 1 ) THE petitioner is a Sugar Factory. For its benefit certain lands belonging to respondents 2 to 6 had been acquired. Not satisfied with the compensation awarded by the Land Acquisition officer, the owners sought reference to Civil Court and by the impugned Judgment and Award the Reference Court enhanced the compensation. Being aggrieved by the same the petitioner has filed these Writ Petitions. The grievance of the petitioner is that it was not heard in the matter and hence the Judgment and Award are violative of principles of natural justice.

( 2 ) COUNSEL for the owners contends that against the award passed by the Reference Court, alternative remedy is available to the petitioner under Section 54 of the Land Acquisition Act and hence sought for dismissal of the Writ Petitions. The decision reported in HIMALAYAN tile AND MARBLE (Pvt) Ltd. v. FRANCIS V. COUTINHO, AIR1971 Bom 341 , (1970 )72 BOMLR910 is pressed into service to contend that the beneficiary is not entitled to seek to set aside the award passed under Section 18 of the Act.

( 3 ) THE contention urged by the learned Counsel for the owners cannot be accepted and the decision relied upon cannot be applied to the case on hand in view of the Constitutional Bench decision reported in 1995 (5) SC 724, wherein it is held that it is open for the beneficiary to invoke the jurisdiction either under Article 226 of the Constitution or avail the remedy provided under the Act.

( 4 ) SUPREME Court in the decision reported in NEELAGANGABAI v. STATE OF karnataka, AIR1990 SC 1321 , JT1990 (2 )SC 330 , (1990 )3 scc617 , [1990 ]3 SCR20 , 1990 (2 )UJ145 (SC ) since notice was not issued to the beneficiary, direction was issued to re-open the proceedings and to decide afresh after giving opportunity to the beneficiary.

( 5 ) FOR the reasons stated above, the impugned judgment and award is set aside. The matter is remanded to the Reference Court with a direction to give opportunity to the petitioner and dispose of the same within six months from the date of receipt of a copy of this order.

( 6 ) THE acquisition proceedings are of the year 1995 and the Award was of the year 1998. Therefore, the petitioner is directed to deposit 50% of the enhanced compensation within four weeks. If deposit is not made within the stipulated period, the benefit of this order will not enure to the petitioner.

( 7 ) THESE Writ Petitions are disposed of accordingly.

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