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2023 Supreme(Kar) 974

IN THE HIGH COURT OF KARNATAKA
S.R. Krishna Kumar, J.
Nagendrappa – Appellant
Versus
Special Land Acquisition Officer – Respondent
Writ Petition No. 23514 of 2021 (LA-RES)
Decided On : 13-04-2023

Advocates appeared:
K.R.Nithyananda, Advocate, Chethan Kumar H., Advocate

The court established that under the Land Acquisition Act, 1894, the Deputy Commissioner has a mandatory duty to make a reference within 90 days, and failure to do so, along with the claimant's inaction within the subsequent three years, results in the application being time-barred.

Headnote:

LAND ACQUISITION - COMPENSATION ENHANCEMENT - Land Acquisition Act, 1894, Sec. 18 - The court discussed the provisions of Sec. 18 of the Land Acquisition Act, 1894, particularly focusing on the time limits for filing applications for reference and the implications of the Limitation Act. It emphasized that the Deputy Commissioner has a mandatory duty to make a reference within 90 days, and failure to do so, along with the claimant's failure to act within the stipulated time, results in the application being time-barred. The court upheld the dismissal of the petition for enhancement of compensation based on these interpretations.

Fact of the Case:

The writ petition challenged the dismissal of a petition for enhancement of compensation under the Land Acquisition Act, 1894, by the reference court, which ruled the application was barred by limitation. The petitioners had filed for reference after the SLAO failed to act within the prescribed period.

Finding of the Court:

The court found that the reference made by the SLAO was beyond the permissible time frame, as the petitioners did not file an application within three years after the expiry of the initial 90 days from their application date. The trial court's dismissal was deemed justified.

Issues: Whether the reference made by the SLAO was valid given the time limits set by the Land Acquisition Act, and whether the petitioners had any recourse after the expiration of these limits.

Ratio Decidendi: The court held that the provisions of Sec. 18 of the Land Acquisition Act impose strict time limits for both the Deputy Commissioner to make a reference and for the claimants to seek such a reference. The failure to adhere to these timelines results in the loss of the right to seek enhancement of compensation.

Final Decision: The court upheld the dismissal of the writ petition, affirming that the reference was barred by limitation and that the trial court had correctly applied the law.

JUDGMENT

1. This writ petition is directed against the impugned judgment and award dtd. 7/9/2013 passed in LAC No.1/2011 & connected matters by the Senior Civil Judge, Harihar, whereby the said petition filed by the petitioners under Sec. 18 of the Land Acquisition Act, 1894 (for short 'the L.A.Act') seeking enhancement of compensation was dismissed by the reference court.

2. Heard learned counsel for the petitioners, learned AGA for the 1st respondent - State as well as learned counsel for the 2nd respondent and perused the material on record.

3. The material on record discloses that pursuant to the acquisition proceedings initiated in respect of the subject lands, the respondents passed an award on 18/8/2004 and a notice of the same was served upon the petitioners - claimants on 2/4/2005, pursuant to which, the petitioners filed reference applications before the 1st respondent - SLAO on 20/5/2005 within the prescribed period of 90 days. However, the SLAO did not refer the matter to the reference court, as a result of which, the petitioners submitted a reminder application on 20/3/2008 to the SLAO, who did not refer the matter at that time also. However, subsequently, on 29/3/2009, i.e., after a lapse of more than 3 years 90 days from the date of the application filed by the petitioners on 20/5/2005, the SLAO referred the matter to the civil court, which proceeded to dismiss the same as barred by limitation in view of the judgment of the Apex Court in the case of State of Karnataka vs. Laxuman - (2005) 8 SCC 709, by holding as under:-

    " 15. This Court has also held that in proceedings under the Land Acquisition Act before the authorities under that Act, Sec. 5 of the Limitation Act has no application. [See Officer on Special Duty (Land Acquisition) v. Shah Manilal Chandulal [(1996) 9 SCC 414] .] Therefore, Sec. 5 of the Limitation Act cannot be resorted to while making an application under Sec. 18(1) of the Act and the application has to be made within the period fixed by Sec. 18(2) of the Act.

16. The Division Bench of the High Court in Special Land Acquisition Officer v. G.C. Paramraj [ILR (1991) 2 Kant 1109] held that the Reference Court has not only the power, but also the duty, to consider whether the reference was time-barred and therefore invalid. It also held that Article 137 of the Limitation Act applies to an application under Sec. 18(3)(b) of the Act, a position approved by this Court. Then the Division Bench held that the power to make a reference under Sec. 18(3) subsists till the right of the party to make an application before the court seeking a direction to the Deputy Commissioner to make a reference exists and from this it followed that there is no power in the Deputy Commissioner to make a reference thereafter and if such a reference is made by the Deputy Commissioner it is invalid. An application to the court not made within 3 years after the expiry of 90 days from the date of the application under Sec. 18(1) of the Act, had to be rejected in limine. The Division Bench laid down the law thus: "It is a well-recognised rule of construction that in order to ascertain the true meaning of a provision the intention of the legislature, as ascertainable from the language of the provision is the safe guide. From the amendment of Sec. 18, it is clear that in addition to the time-limit of 90 days fixed in Sec. 18, the legislature intended to create a duty in the Deputy Commissioner to make a reference within 90 days and further if within the said period the Deputy Commissioner/Land Acquisition Officer failed to make a reference, to confer a right on the party to make an application before the court seeking a direction to the Deputy Commissioner to make the reference. If that right is not exercised by the party within time, then the right ceases. Once the right of the party to get a reference is time-barred, it would be incongruous to hold that the Deputy Commissioner can still make a reference, at any time even after

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