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2015 Supreme(Mad) 3634

IN THE HIGH COURT OF MADRAS (MADURAI BENCH)
V. Ramasubramanian, N. Kirubakaran, JJ.
The Competent Authority-cum-Land Acquisition Officer, IOC Ltd. – Appellant
Vs.
The Principal District Judge, Madurai and Ors. – Respondent
Writ Appeal (MD) No. 478 of 2011 and M.P. (MD) No. 1 of 2011
Decided On : 04-12-2015

Advocates Appeared:
For the Appellant : G.R. Swaminathan

Headnote:

Central Act, 1962 - Section 10(2) - Petroleum and Minerals Pipeline (Acquisition of Rights of Users) Act, 1962 - Section 10(3)(i) – Maintainable - Pay compensation - Central Government to acquire right of user in any land in which pipelines may be laid by the Government for the purpose of transportation of petroleum or any other minerals from one locality to another locality. But, whenever rights of the land owner are affected or land gets damaged on account of the exercise of the said power by Government land owners are entitled to get compensation - Section 10 of Act speaks about the compensation - There is a two tire mechanism provided in Section 10 for determination of compensation - Under Section 10(1) of the Act, the compensation payable shall be determined by the competent authority - If compensation so determined is not acceptable to any of parties matter can be referred to District Judge within whose local limits of jurisdiction land is situated - Held, Civil Courts jurisdiction is barred under Section 14 - Therefore award passed by District Judge on application made under Section 10(2) cannot be challenged in a suit but challenged only in a writ petition even if award is treated as equivalent to award passed under Arbitration Act - Since provisions of Arbitration Act are not made applicable award of Court cannot even be challenged under that Act - In such only remedy available to petitioner is to file a writ petition - In view of above objections raised by Registry about maintainability of writ petition and sustained by learned Judge are not correct - Hence writ appeal is allowed and order of learned Judge is set aside - Miscellaneous Petition is closed.

JUDGMENT :

V. Ramasubramanian, J.

1. This Appeal arises out of an order passed by the learned Judge, sustaining the objections raised by the Registry that the writ petition filed by the appellant challenging an award passed by the Principal District Court, Madurai, to be not maintainable. Heard Mr. G.R. Swaminathan, learned Counsel appearing for the appellant.

2. The appellant herein issued a notice under Section 10(3)(i) of Petroleum and Minerals Pipeline (Acquisition of Rights of Users) Act, 1962, for the purpose of laying a pipeline in the land belonging to the respondents herein. The appellant also paid a compensation of Rs. 1,933/-.

3. Aggrieved by the fixation of compensation at such a low level, the second respondent filed a petition in O.P. No. 3 of 2006 on the file of the Principal District Court, Madurai. This original petition was filed under Section 10(2) of the Central Act 15 of 1962. By a judgment dated 30.09.2010, the District Court allowed the petition and directed the appellant to pay compensation in a sum of Rs. 3,00,000/- (Rupees Three Lakhs only) for closure of well that was in the land of the second respondent.

4. Aggrieved by the award so passed by the District Judge, the appellant herein filed a writ petition in W.P.(MD)SR. No. 59907 of 2010. The Registry raised objections as though a writ petition is not maintainable as against the award of this nature. The objection of the Registry was sustained by the learned Judge by an order dated 25.01.2011. Therefore/the appellant has come up with the above appeal.

5. The Central Act 50 of 1962 enables the Central Government to acquire the right of user in any land in which pipelines may be laid by the Government for the purpose of transportation of petroleum or any other minerals from one locality to another locality. But, whenever the rights of the land owner are affected or the land gets damaged on account of the exercise of the said power by the Government, the land owners are entitled to get the compensation. Section 10 of the Act speaks about the compensation. There is a two tire mechanism provided in Section 10 for the determination of the compensation. Under Section 10(1) of the Act, the compensation payable shall be determined by the competent authority. If the compensation so determined is not acceptable to any of the parties, the matter can be referred to the District Judge within whose local limits of jurisdiction, the land is situated. This reference is made under Section 10(2).

6. The other sub-Sections of Section 10 prescribe all procedures for determination of compensation by the District Judge. But once the District Judge determines the compensation, on an application under Section 10(2), the award passed by him attains finality. This is by virtue of sub-Section (6) of Section 10. Section 10 in entirety is extracted for useful reference as follows:

"10. Compensation-(1) Where in the exercise of the powers conferred by section 4, section 7 or section 8 by any person, any damage, loss or injury is sustained by any person interested in the land under which the pipeline is proposed to be, or is being, or has been laid, the Central Government, the State Government or the corporation, as the case may be, shall be liable to pay compensation to such person for such damage, loss or injury, the amount of which shall be determined by the competent authority in the first instance.

(2) If the amount of compensation determined by the competent authority under sub-section (1) is not acceptable to either of the parties, the amount of compensation shall, on application by either of the parties to the District Judge within the limits of whose jurisdiction the land or any part thereof is situated, be determined by that District Judge.

(3) The competent authority or the District Judge while determining the compensation under sub-section (1) or sub-section (2), as the case may be, shall have due regard to the damage or loss sustained by any person interested in the land by reas










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