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1959 Supreme(Cal) 28

HIGH COURT OF CALCUTTA
S. C. Lahiri, A. N. Ray
STATE OF WEST BENGAL - Appellant
Versus
KESSON CHAND KOCHER - Respondent
A. F. O. D.  9  Of  1955
Decided On : FEBRUARY 3, 1959

Advocates Appeared:
Guru Prasad Ghose, MOHANLAL DEV, NAGENDRA MOHAN SHAH, P.N.MITTER, PRAFULLA KUMAR ROY, SOMENDRA C.BOSE, SUSHIL CHANDRA BANERJI

A compromise decree has the effect of an agreement between the parties with the command of the court super-added to it and it can be challenged on any of the grounds on which an agreement can be challenged under the Indian Contract Act.

Headnote:

LAND ACQUISITION - COMPROMISE DECREE - BINDING EFFECT - STATE NOT A PARTY - LIABILITY TO PAY ENHANCED COMPENSATION - NOT REVIVED.

Fact of the Case:

The State of West Bengal acquired four plots of land for the Calcutta Improvement Trust. Four land acquisition cases were started for the acquisition of these four plots of land. There were two grounds of rival claimants for compensation: (a) the landlords who may be collectively described as the Kochers and (b) the tenants who may be collectively described as the Mitras. The Collector made joint awards in favor of the landlords and tenants. The landlords filed applications for references disputing the amount of compensation and also claiming the entire amounts for themselves to the exclusion of the tenants. The Mitra tenants did not file any effective application challenging the amount of compensation awarded by the Collector and confined their claim to the shares they were entitled to get in the apportionment cases. The Calcutta Improvement Tribunal enhanced the valuation in the references. The Mitra tenants filed four First Appeals to the Calcutta High Court, which held that the Kocher landlords were entitled to get only thirty times the annual rent as compensation and the entire balance was to go to the Mitra tenants. The Kocher landlords filed four appeals to the Supreme Court, which were decreed on compromise. The Kocher landlords claimed in their petitions that under the terms of the compromise they were entitled to withdraw the entire amounts of the enhancements made by the Tribunal in the valuation references. The State of West Bengal resisted this claim on the ground that under the High Court judgment they had lost their right to get any portion of the enhancement and that right could not be revived by a compromise to which the State of West Bengal was not a party.

Finding of the Court:

The State of West Bengal is not liable to pay any part of the enhanced compensation to the Kocher landlords.

Issues: Whether the State of West Bengal is bound by four compromise decrees passed by the Supreme Court on the 2nd March, 1954, although it was not a party to any of them.

Ratio Decidendi: 1. Any right which accrues in favor of a litigant cannot be varied or modified by any contract or agreement to which he is not a party. 2. The compromise between the Kocher landlords and the Mitra tenants in the Supreme Court did not, in any way, affect the liability of the State of West Bengal. 3. The State of West Bengal was not a necessary party in the apportionment cases, but where without any dispute as to the total amount of the compensation payable by the collector, the liability of the State to pay compensation to any person is enlarged or enhanced, the State, in my opinion, seems to be a necessary party. 4. The compromise decree no doubt expressly states that the decrees made by this Court be set aside in their entirety, and that the judgment of the President of the Improvement Tribunal in the corresponding apportionment cases be restored. This provision in the compromise decree was based upon an agreement to which the State of West Bengal was no party and consequently the judgment of this Court in so far as it determined the liability of the State of West Bengal to pay the enhanced compensation, still subsists.

Final Decision: The appeals are allowed, and the order of the President of the Tribunal is set aside. The enhanced compensation is to be refunded to the Land Acquisition Collector.

LAHIRI, J.

( 1 ) THE decision of these four appeals turns on a single question and that is whether the State of West Bengal is bound by four compromise decrees passed by the Supreme Court on the 2nd March, 1954, although it was not a party to any of them. The facts upon which this question arises are not in dispute and are as follows:

( 2 ) ON divers dates in the years 1938 and 1939, certain plots of land together with structures and trees standing thereon were acquired by the Land Acquisition Collector for the Calcutta Improvement Trust. Four land acquisition cases were started for the acquisition of these four plots of land. There were two grounds of rival claimants for compensation: (a) the landlords who may be collectively described as the Kochers and (b) the tenants who may be collectively described as the Mitras. In respect of the lands which formed the subject-matter of the acquisition the Collector made joint awards in favour of the landlords and tenants. Against the awards of the Collector the Kocher landlords filed applications for references disputing the amount of compensation and also claiming the entire amounts for themselves to the exclusion of the tenants. Those applications gave rise to four references which were cases Nos. 33, 61, 87 and 93 of 1939. The State of West Bengal was a party to all these valuation references. Besides the above four valuation references, four apportionment cases were also started upon the landlords' plea that they were exclusively entitled to the entire amount of compensation, and these apportionment cases were Nos. 117, 118, 119 and 123 of 1941 in which the State of West Bengal was not impleaded as a party. The Mitra tenants did not file any effective application challenging the amount of compensation awarded by the Collector and confined their claim to the shares they were entitled to get in the apportionment cases. In the valuation references made at the instance of the Kocher landlords the Calcutta Improvement Tribunal enhanced the valuation in the following manner: (1) In F. A. 6 of 1955, corresponding to apportionment case No. 117 of 1941, the Collector awarded Rs. 13,627-8-0 as the value of the land and this amount was increased by the Tribunal by Rs. 652-10-0 with costs and interest at the rate six per cent per annum. (2) In F. A. No. 7 of 1955, corresponding to apportionment case No. 123 of 1941, the Collector awarded Rs. 4,140/- as the value of the land which was enhanced by the Tribunal by Rs. 1,384-5-0 with costs and interest at the rate of six per cent per annum. (3) In F. A. No. 8 of 1955, corresponding to apportionment case No. 118 of 1941, the Collector awarded Rs. ll,063/- as the value of the land which was enhanced by the Tribunal by Rs. 2,598-10-9 with costs and interest at the rate of six per cent per annum. (4) In F. A. No, 9 of 1955, corresponding to apportionment case No. 119 of 1941, Collector's award of Rs. 48,012-8-0 was increased by the Tribunal by Rs. 11,199/- with costs and interest at the rate or six per cent per annum.

( 3 ) IT is common ground that since the Mitra tenants did not file any application challenging the Collector's valuation they were not entitled to any part of the enhancement allowed by the Tribunal. This proposition follows from the provisions of Sections 12, 20 (b) and 21 of the Land Acquisition Act and also the decisions of the Judicial Committee and of this Court referred to in the judgment of the Tribunal and is not disputed before us. In the apportionment cases to which the State of West Bengal was not a party the Tribunal held that the Kocher landlords were entitled to 13% annas of the compensation and the Mitra tenants to the remaining 2 1/2 annas share. Against the order of the Tribunal the Mitra tenants filed four First Appeals to this Court which were registered as First Appeals Nos. 91, 93, 94 and 242 of 1945. By a judgment delivered in First Appeal No. 91 of 1945, which was to govern the other three appeals, this Court he






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