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2024 Supreme(Mad) 2238

IN THE HIGH COURT OF JUDICATURE AT MADRAS
V. LAKSHMINARAYANAN, J.
Geetha Devi - Petitioner
Versus
Special Tahsildar (L.A.), Land Acquisition Officer, Chennai Collectorate, Chennai and Ors. – Respondents
C.R.P.(NPD). Nos.2656, 2678, 2646, 2665, 2966, 2644 & 2649 of 2023 and CMP.No.27676 of 2023
Decided On : 02-08-2024

Important Points

The latter decree prevails over the former in cases of conflict, and courts can modify decrees under Section 151 of the Code of Civil Procedure to ensure justice.

Subject

Civil Law - Land Acquisition

Act Referred

CIVIL PROCEDURE CODE : S.152, S.151
LAND ACQUISITION ACT : S.30

Headnote

(A) Land Acquisition Act, 1894 - Section 30 - Code of Civil Procedure, 1908 - Section 151 - Arbitration and Conciliation Act, 1996 - Conflict between decrees - The court held that the latter decree overrides the former, and the learned Trial Judge erred in not modifying the decree in light of the arbitration award. The claimants were recognized as lawful owners of the acquired land, and the court emphasized the need for justice in disbursing compensation. (Paras 13, 15, 20)

(B) Decrees - Construction of conflicting decrees - The principle that the latter decree prevails over the former was reiterated, emphasizing the court's duty to harmonize decrees where possible. (Paras 14, 17)

Facts of the case:
The civil revision petitions arose from a land acquisition case where the compensation distribution was disputed among partners of a firm. The court found that the claimants were lawful owners and addressed the conflict between a court decree and an arbitration award.

Findings of Court:
The court allowed the civil revision petitions, set aside the previous orders, and directed the disbursement of compensation according to the arbitration award.

Issues: The main issues included the authority of the court to modify a decree in light of an arbitration award and the rightful distribution of compensation among claimants.

Ratio Decidendi: The court ruled that the latter decree must prevail over the former in cases of conflict, and the learned Trial Judge should have invoked Section 151 to modify the decree in accordance with the arbitration award.

Result: Civil revision petitions allowed.

Advocates Appeared:
For the Petitioner: Mr. K. Jeyachandran
For the Respondents: Dr. S. Suriya, Additional Government Pleader, Mr. D. Kulasekaran.

ORDER :

(V. Lakshminarayanan, J.)

These civil revision petitions arise out of the orders passed in the interlocutory applications in LAOP.No.30 of 2012 on the file of the learned VI Assistant City Civil Judge at Chennai.

2. The civil revision petitioners before me are all claimants in LAOP.No.30 of 2012. The Government had acquired lands belonging to a partnership firm under the name and style of "M/s.Venkateswara Roller Flour Mill". Since the land acquisition officer could not come to a conclusion as to who was entitled to the compensation, he made a reference under Section 30 of the Land Acquisition Act to the City Civil Court. This reference was taken on file as LAOP.No.30 of 2012.

3. The referring authority namely, the Special Tahsildar, Land Acquisition Ennore Express Highway, Chennai, also deposited Rs.45,88,574/- on 29.06.2012. The Court, on receipt of the said amount, has also deposited the same in an interest bearing account. The LAOP was disposed of by the City Civil Court on 23.03.2018. In terms of the order passed in the reference, the following persons were held entitled to the shares as denoted in the Order:

Rajkumar Gupta

- 9%

Gajananda Gupta

- 7%

Nandhakishore

- 9%

Geethadevi

- 9%

Sarwana Kumari

- 15%

Vijay Kumar Goel

- 9%

Shambu Kumar Gupta

- 9%

Sheela Gupta

- 9%

R ajkumar Gupta

- 9%

Renu Devi

- 9%

Mahendra Kumar Gupta

- 15%

It had committed an error in granted Mr.Rajkumar Gupta a share twice.

4. The Court came to a categorical conclusion that the claimants were the lawful owners of the acquired land. While this proceedings was under way, the partners, who are entitled to decide amongst themselves as regards dissolution of the partnership itself, approached this court by way of a petition under the Arbitration and Conciliation Act in O.P.No.383 of 2016. This Court appointed Mr.K.Palanisamy, B.Sc., B.L., formerly a District Judge, as the Arbitrator. The prayers in the claim petition is as hereunder:

“(i) winding up of the partnership dated 07.11.1980 in respect of the partnership firm namely Venkateswara Roller Flour Mills by declaring the percentage of share of the claimant and respondents in the partnership assets described in the A and B schedule properties.

(ii) ordering sale of the property described in the “A” schedule property by public auction or by private sale by identifying the buyers.

(iii) distributing the sale proceeds from the sale of the “A” schedule property, to the claimant and the other partners and the legal heirs of the deceased partners, as per their shareholdings as per the partnership deed dated 07.11.1980.”

5. Pending the litigation, the parties entered into a compromise on 16.01.2018, and the learned Arbitrator passed an Award on 26.03.2018. It was three days after the date of order of the reference court. The award reads in the following terms:

“The parties of the Tenth Part and Eleventh part herein agree that they shall take necessary steps and vacate the aforesaid order of Status Quo passed in O.S.No.328 of 2005 pending on the file of the XIII Additional Chief Judge, City Civil Court, Hyderabad before the sale of the Schedule “A” mentioned property.”

6. In terms of the Award, the partners of Venkateswara Flour Mills agreed that they would take the shares in the following terms:

S.No.

Name

% of share

1

Mr.Nand Kishore Goel – Party of the First Part

10.50%

2

Mrs.Geetha Devi – Party of the Second Part

1.50%

3

Mr.Vijay Kumar Goyal – Party of the Third Part

11.00%

4

Mr.Shambu Kumar – Party of the Fourth Part

11.50%

5

Mr.Rajkumar Gupta – Party of the Fifth Part

11.50%

6

Mr.Mahendra Kumar Gupta – Party of the Sixth part

28.50%

7

Mrs.Sheela Gupta – Party of the Seventh Part

15.50%

7. The compensation that

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2
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5
6
7
8
9
10
11
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