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1967 Supreme(Ori) 8

HIGH COURT OF ORISSA
R. K. Das And G. K. Misra, JJ.
STATE OF ORISSA - Appellant
Versus
AMARANDRA PRATAP SINGH - Respondent
First Appeal 105  Of  1964
Decided On : JANUARY 10, 1967

Advocates Appeared:
C.V.MURTHY, S.MOHANTY

A company for whose benefit land is acquired by the State is not a necessary party to the land acquisition proceeding and has no right to demand a reference under Section 18 or appeal against the judgment.

Headnote:

LAND ACQUISITION - SECTION 18, 20, 21, 29, 50 - COMPANY NOT A NECESSARY PARTY - RIGHT TO APPEAR AND ADDUCE EVIDENCE - NO RIGHT TO DEMAND REFERENCE OR APPEAL - INTEREST OF COMPANY SAFEGUARDED BY STATE.

Fact of the Case:

The State of Orissa acquired land for Belpahar Refractory Company (Respondent-2). Respondent-1 objected to the compensation awarded by the Collector and the matter was referred to the District Judge. The District Judge valued the land at Rs. 3300/- per acre and granted solatium under Section 23(2) of the Land Acquisition Act. The State appealed against the judgment.

Finding of the Court:

The court held that the company was not a necessary party to the land acquisition proceeding and had no right to demand a reference under Section 18 or appeal against the judgment. However, the company had the right to appear and adduce evidence for the purpose of determining the amount of compensation.

Issues: Whether the company was a necessary party to the land acquisition proceeding.

Ratio Decidendi: The court interpreted Sections 18, 20, 21, 29, and 50 of the Land Acquisition Act and held that the company was not a necessary party to the proceeding. The court also held that the company had the right to appear and adduce evidence for the purpose of determining the amount of compensation.

Final Decision: The appeal was dismissed with costs.

MISRA, J.

( 1 ) THE State of Orissa acquired 2. 75 acres of land in village Gamdera for the belpahar Refractory company (Respondent-2), hereinafter referred to as the: company Out of the aforesaid land, 0. 22 acre belonged to Respondent-1 The Land acquisition Collector fixed the compensation at the rate of Rs 420 per acre and passed an award for 92. 40 paise. On the objection of respondent-1, the Collector made a reference to the District Judge under Section 18 of the Land Acquisition act for determination of compensation. The matter was ultimately heard by the learned Subordinate Judge. Sambalpur, who valued the disputed land at Rs. 3300/ -. He also decreed a sum of Rs 495/- representing fifteen per cent of the basic. compensation towards solatium under Section 23 (2) of the Land acquisition Act Interest was granted at six per cent per annum from the date of. dispossession. Against the judgment of the learned Subordinate Judge the first appeal has been filed by the State of Orissa.

( 2 ) MR. Mohanty tor the Company contended that the Company was a necessary party and that though in fact it was added as a party by the learned Subordinate judge, no notice of the reference was given to it and that the case should be remanded and the Company, in whose interest the acquisition had been made, should be given an opportunity to adduce evidence in the matter of valuation of the disputed land. Though the cause title of the impugned judgment dated 4-9-64 indicates that the company has been impleaded as a party to the proceeding, in fact it was not added as a party. The reference made by the Collector under Section 18 did not make the company a party to the proceeding. The cause title of the judgment showing the Company as a party appears to have been inadvertently typed by the stenographer of the learned Subordinate Judge. In fact the Company has not been impleaded as a party, Inclusion of its name in e cause title of the judgment must accordgly be ignored.

( 3 ) IN law, the Company is not a necessary party to such proceedings. Under section 18, any person interested who has not accepted the award may, by written application to the Collector, require that the matter be referred by the collector for the determination of the Court, whether his objection is to the measurement of the land, the amount of the compensation, the person to whom it is payable, or the apportionment of the compensation among the persons interested. Under Section 3 (b), unless there is something repugnant in the subject or context, the expression persons interested" includes all persons claiming an interest in compensation to be made on account of the acquisition of land under the Act. Section 29 deals with service of notice. The Court shall cause a notice specifying the day on which the Court will proceed to determine the objection and directing their appearance before the Court on that day, to be served on the following person's, namely (a) the applicant, (b) all persons interested in the objection, except such (if any) of them as have consented without protest to receive payment of the compensation awarded, and (c) if the objection is in regard to the area of the land or to the amount of compensation, the Collector. It is quite clear that no provision has been made for issue of notice on any local authority or company on whose behalf the acquisition is to be made. The expression "all persons interested in the objection" in Section 20 (b) does not include a local authority or company on whose behalf the acquisition is made by the State. It includes only the persons as defined in Section 3 (b ). Under Section 21. the scope of the inquiry in every such proceeding shall be restricted to a consideration of the interests of the persons affected by the objection. Section 50 (2) lays down that in any proceeding held before a Collector or Court in cases where the acquisition is made for any local authority or company they may appear and adduce evidence for the purpose


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