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2019 Supreme(Pat) 444

IN THE HIGH COURT OF JUDICATURE AT PATNA
AMRESHWAR PRATAP SAHI, ANJANA MISHRA, JJ.
The Union of India, Ministry of Defence, Government of India, through the Defence Estate Officer - Appellant
Versus
Arjun Yadav Son of Kishun Yadav & Ors. - Respondents
Letters Patent Appeal No.418 of 2018 In Civil Writ Jurisdiction Case No.20058 of 2012
Decided On : 22-04-2019

Advocates Appeared:
For the Appellant :Mr. S.D. Sanjay, Add;. S.G., Ms. Priya Gupta, Advocate, Mr. Mohit Agarwal, Advocate, Mr. A.B. Mathur, CGC, Mr. Alok Kumar Agarwal, Advocate
For the Private Respondents:Mr. Mrigank Mauli, Advocate, Mr. Sanjay Kumar, Advocate, Mr. Jainandan Singh, Advocate, Mr. Sanket, Advocate, Mr. Prince Kumar Mishra, Advocate
For the Respondent: Mr. Prabhu Narayan Sharma, AC to AG.

Headnote:

Right to Fair Compensation and Transparency in Land Acquisition, Rehabititation Act, 2013 Section 24(1) (b) & 64 read with Land Acquisition Act, 1894 – Section 18 – Reference to Authority – Reference to Authority – The application was under Section 18 of the 1894 Act and the proceedings were under challenge before the High Court before Hon'ble Single Judge – If the writ petitions were to be allowed and relief granted, then it was to be for a limited purpose namely to decide as to Whether Section 18 application was within the limitation prescribed and was otherwise entertainable and therefore, the said proceedings could have been continued being procedural in nature that are saved under Section 24(1) (b) of the 2013 Act, as allowing of the writ petition would only make the application under Section 18 of the 1894 Act pending before the authority – The Hon'ble Single Judge went beyond the aforesaid scope of the proceedings and held that the award was not a valid award in the eyes of law and was a purported award and then directed the authorities to proceed afresh which was taken by the authorities to be a proceeding available under Section 64 of the 2013 Act – The process adopted by the respondent authorities by taking recourse to Section 64 of 2013 Act is not correct and, therefore, all consequential actions culminating into a fresh award are a nullity as the impugned judgment of the Hon'ble Single Judge is clearly vitiated and deserves to be set aside – Proceedings being outcome of the impugned judgment, which is being set aside, the proceedings for fresh award held as nullity – Appeal allowed – Impugned judgment set aside and all consequential proceedings undertaken by the respondent authorities pursuant to the impugned judgment set aside. (Paras 59 to 61)

Patna High Court Rules – Chapter 10 – Appendix E – Letters Patent Appeal – Delay – Settled rights should not unsettled on account of such delay unless there is some valid explanation – By the passage of time prescribed for filing an appeal, an appropriate explanation is required that may be not strictly a day-today explanation but there has to be a plausible explanation so as to justify the cause in the delay – In the present case, appellant has made its best efforts to approach the High Court – Delay deserves to be condoned. (Paras 21 & 24)

Land Acquisition Act, 1894 – Section 18 – Reference to Authority necessary party in the Land Acquisition Proceeding – Interest of Union of India (Appellant) is not a pure commercial interest but a vital public interest involving huge exchequer of tax payers money where the Union of India sought to be settled with compensation 80 time more than what was awarded – Appellant is a person interested and, therefore, a proper and necessary party. (Paras 37)

(2012)3 SCC 563, (1987) 2 SCC 107, AIR 1991 All 241, (2011) 2 SCC 54, AIR 1996 SC 1164, (2005) 6 SCC 733, AIR 1978 Pun & Har 192, AIR 1978 Pun & Har 30, (1997) 2 SCC 524, AIR 1980 SC 1118, (1993) 1 SCC 608, (1995)2 SCC 326, (1994) 1 SCC 367, 1963 Supp (1) SCR 676, AIR 1963 SC 786, AIR 1980 SC 775, (2009) 16 SCC 1 (Para 33 to 35), (2010) 3 SCC 545, 1980 PLJR Part 16 Page 562, (187) 2 SCC 666, (2015) 7 SCC 601, AIR 1961 SC 1500 – Referred.

JUDGMENT :

This appeal is by the Union of India arising out of a writ petition in proceedings under the Land Acquisition Act, 1894 where the appellant was not made a party and the writ petition was allowed vide impugned judgment dated 7th of May, 2014 in C.W.J.C. No. 20058 of 2012 and other analogous cases and in compliance whereof proceedings under the 2013 Act were drawn up and orders were passed in exercise of powers under Section 64 of the 2013 Act, thereby considerably enhancing the amount of compensation payable to the respondent-petitioners applying the rates as per the new Act. The appeal had been entertained and notices were issued on 17th of April, 2018 and, simultaneously, an interim order was passed staying the operation of the impugned judgment.

2. The order dated 17th of April, 2018 is extracted here-in-under:-

“Issue notice to the respondents on the memorandum of appeal and on I.A. Nos. 2477 of 2018, both under registered cover with A/D and by ordinary process, on requisites etc. within two weeks, returnable within four weeks.

List for analogous hearing along with L.P.A. No. 1731 of 2017.

In the meanwhile, all actions and further proceedings before the Presiding Officer, Land Acquisition & Rehabilitation Authority, Patna, in furtherance to the impugned order passed on 07.05.2014 by the learned Writ Court in the writ petition in question, shall remain stayed till the next date.”

3. Thereafter vide order dated 18th December, 2018 leave to appeal was granted to the appellant and the delay in the filing of the appeal was condoned where after the respondents were called upon to file their response. The interim order extracted hereinabove was directed to continue until further orders.

4. The matter was thereafter taken up and, ultimately, after hearing the learned counsel for the parties, a direction was issued to list the matter for delivery of judgment on the date fixed.

5. The background in which the present appeal has been filed is that the Ministry of Defence, Government of India, for the setting up of an Ordnance Factory at Rajgir, District- Nalanda, Bihar, required land. For this, acquisition process was set into motion and on 15th of September, 1999 a notification under Section 4 of the Land Acquisition Act, 1894 was issued, followed by a Section 6 notification simultaneously invoking the provisions of Section 17(4) of the said Act.

6. The sanction was granted by the Central Government for deposit of the amount of 80 per cent. This amount was deposited and further steps were taken for acquisition of 50 acres of land for rehabilitation of the displaced persons on the land that was acquired for the Ordinance Factory.

7. According to the appellant, the District Land Acquisition Officer, on 12th of June, 2001, pronounced an award. The respondent had every knowledge of the said proceeding, but since there was a dispute with regard to the ownership and the extent of compensation payable, a reference was made under Section 30 of the 1894 Act on 12th of October, 2002 vide letter dated 21.10.2002 for being adjudicated by the concerned Court at Nalanda, Biharsharif, Prior to this, possession of the land was taken over on 6th July, 2002. The balance of the 20% amount was also deposited by the appellant with the respondent Collector.

8. On 30th January, 2010, the reference under Section 30 was answered whereby the claim of the respondents was accepted and a direction was issued to apportion the award accordingly.

9. A notice was issued under Section 12(2) of the 1894 Act on 24th April, 2010 calling upon the respondents to receive the award of the land stated therein.

10. The respondent-petitioners thereafter moved an application on 24th May, 2010 to exercise their right for making a reference under Section 18 of the 1894 Act. The fact that an award was passed on 12th June, 2001 was accepted in the said proceedings, but the amount awarded was disputed contending that the respondent-petitioners were entitled to payment of compensation a

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