1965 Supreme(Pat) 74
PATNA HIGH COURT
H.Mahapatra and G.N.Prasad JJ.
Kanika Haldar
Versus
State Of Bihar
Appeal from Original Decree No. 440 of 1957 ;
Decided On : JULY 20, 1965
The vesting of title in the State Government under the Land Acquisition Act occurs upon taking possession of the land either under Sec. 16 or Sec. 17. Ex-landlords whose estate has vested in the State Government under the Land Reforms Act are not entitled to compensation for the acquired land.
Headnote:
LAND ACQUISITION - COMPENSATION - ENTITLEMENT OF EX-LANDLORDS - VESTING OF ESTATE UNDER LAND REFORMS ACT - LAND ACQUISITION ACT, 1894, SECS. 16, 17(1), 30 - BIHAR TENANCY ACT, SEC. 40B.
Fact of the Case:
The appellant, an occupancy tenant, challenged the entitlement of the ex-landlords to a portion of the compensation awarded for the acquisition of her land under the Land Acquisition Act, 1894. The ex-landlords claimed a share based on their bhaoli rent and the capitalised value of the commuted rent for trees under Sec. 40B of the Bihar Tenancy Act.
Finding of the Court:
The court held that the ex-landlords were not entitled to any part of the compensation as their estate had vested in the State Government under the Land Reforms Act before the award was made under the Land Acquisition Act. The court found that there was no evidence of possession being taken by the Collector under Sec. 17(1) before the award was made, and thus the land had not vested in the Government at the time of the award.
Issues: 1. Whether the ex-landlords were entitled to compensation for the acquired land after the vesting of their estate in the State Government under the Land Reforms Act. 2. Whether the ex-landlords were entitled to a share of the compensation based on their bhaoli rent and the capitalised value of the commuted rent for trees.
Ratio Decidendi: 1. The court interpreted Secs. 16 and 17(1) of the Land Acquisition Act and held that the vesting of title in the State Government occurs upon taking possession of the land either under Sec. 16 or Sec. 17. In the absence of evidence of possession being taken before the award was made, the court concluded that the land had not vested in the Government at the time of the award. 2. The court held that the ex-landlords were not entitled to any compensation as their estate had vested in the State Government before the award was made, and thus they had no interest in the land at the time of the acquisition.
Final Decision: The court allowed the appeal and set aside the judgment and decree of the District Judge. The entire compensation awarded by the Collector was granted to the tenant-appellant.
1. This appeal arises out of a land acquisition Reference case under Sec.30 of the Land Acquisition Act. The occupancy tenant of the land which was acquired is the appellant. The ex-landlords, that is, the landlords before the vesting of the estate as well as the State of Bihar are the respondents. A notification under Sec. 4 and a declaration under Sec. 6 of the Land Acquisition Act, 1894, (to be referred to hereafter as the Act) were issued in respect of 3.396 acres with a jama of Rs. 36-4-0 in plot No. 3377 under tauzi No. 2698 in the district of Monghyr. The present tenant appellant filed her claim before the Collector and on the 25th March, 1955, an award was made under Sec.11 of the Act determining the amount of compensation. Since there was some dispute about the apportionment of compensation, a reference was made by the Collector under Sec.30 of the Act. We have looked to the original reference and found that the name of ex-landlords were not mentioned in that reference. But it appears from Ext. 1, a certified copy of the application which was filed by some of the ex-landlords before the Collector on the 31st of March, 1955, that they had asked notice to he given to all the ex-landlords and for that purpose process fee of Rs. 3 was attached to that petition. Subsequent to that, on the 3rd of May, 1955, the reference was made by the Collector under Sec.30, yet the name of the ex-landlords did not appear in that. One batch of the ex-landlords, that is, the Singhs made ah application on the 10th of April, 1957, before the Court where the reference was pending to he added as parties, and an order was passed by it on the 29th April, 1957, for bringing them on record as parties. A similar application from another set of ex-fandlords. the Chaudharis, who had 8 annas interest, was made on the 17th of December. 1956, for the same purpose of being added as parties to the pending reference, but no order was passed on that application till the reference case was disposed of and the decree was drawn up, subsequent to which the notice of the Court was drawn to their previous application, and on the 11th of September, 1958, the decree was amended and they were included in the decree as entitled to receive a portion of the compensation. The State of Eihar was already before the reference Court as the reference appears to have been made at their instance by the Collector.
2. By, the judgment passed on the 8th of July, 1957, in a number of reference cases, the particular reference case No. 33 of 1956 out of which the present appeal arises was disposed of The tenant, Srimati Kanika Haldar, contended before the reference Court that she was entitled to the entire compensation money as awarded by the Collector except the portion that may be payable to the landlords on the basis of capitalisation of the cash rent that was determined under Sec. 40B of the Bihar Tenancy Act in respect of the rent of the trees standing on the land in question. Admittedly there were 116 trees on this land and a proceeding under Sec. 40B of the Tenancy Act ended in commuting that rent of trees at Rs. 36-4-0 per year. The land had been described as bhaoli in the settlement papers. The ex-landlords contend that they were entitled in addition to the capitalised amount of the cash rent for the trees, a portion of the total compensation in proportion to what they were entitled to get by way of bhaoli rent from the land. The learned District Judge came to the conclusion that the ex-landlords as well as the tenants were entitled to get the compensation, the former on the capitalised value of the rent that was payable to them for the land which was acquired. IK his view the land still continued to be bhauli and the landlords were entitled to get 9/11th share out of the compensation fixed under the award. It is against this that the tenant has come in appeal. We should also mention here that the learned District Judge also took the view that the land should be dee