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2007 Supreme(Ori) 325

High Court Of Orissa
A. K. PARICHHA, J.
LAND ACQUISITION COLLECTOR - Appellant
Versus
SITA DEI - Respondent
L. A. A.  55  Of  2005
Decided On : 05/03/2007

The main legal point established in the judgment is that while the State Government appellant is exempted from furnishing security, it can be directed to deposit the disputed decretal amount as a condition for grant of stay, in line with the legislative intent for prompt payment of compensation to landowners.

Headnote:

Land Acquisition - Deposit of Awarded Amount - Order 27 Rule 8a, CPC - Summary of Acts and Sections: Order 41 Rule 1(3), Order 41 Rule 5(5), Order 27 Rule 8a, L.A. Act Section 53 - The judgment discusses the applicability of Order 27 Rule 8a of the CPC to a land acquisition appeal and concludes that while the State Government appellant is exempted from furnishing security for the disputed decretal amount, it can be directed to deposit the entire or part of the disputed decretal amount as a condition for grant of stay of execution of the money decree. The court also analyzes the provisions of the Land Acquisition Act and emphasizes the legislative intent for ensuring prompt payment of compensation to landowners. The judgment provides a comprehensive interpretation of the relevant legal provisions and their application in the context of the case.

Fact of the Case:

The claimant-respondent sought direction for the appellant to deposit the entire awarded amount and allow withdrawal of 50% without guarantee or security, citing undue hardship due to pending determination of fair market price for acquired lands. The appellant contended exemption from deposit or security under Order 27 Rule 8a of the CPC.

Finding of the Court:

The court analyzed the relevant provisions of the CPC and L.A. Act, concluding that the State appellant is exempted from furnishing security but can be directed to deposit the disputed decretal amount as a condition for grant of stay. It allowed the claimant's prayer, directing the State-appellant to deposit 50% of the differential award amount as a condition for grant of stay.

Issues: 1. Applicability of Order 27 Rule 8a, CPC to a land acquisition appeal. 2. Whether the State-appellant is exempted from depositing the differential decretal amount or security under Order 41 Rule 1(3) and Rule 5(5) of the CPC.

Ratio Decidendi: The court held that while the State Government is exempted from furnishing security, it can be directed to deposit the disputed decretal amount as a condition for grant of stay. It emphasized the legislative intent for prompt payment of compensation to landowners.

Final Decision: The State-appellant was directed to deposit 50% of the differential award amount in the executing court as a condition for grant of stay of the execution proceeding. The claimant-respondent was allowed to withdraw half of the deposited amount on furnishing security to the satisfaction of the executing Court.

( 1 ) THIS is a petition by the claimant-respondent No. 1 seeking direction of this Court to the appellant to deposit the entire awarded amount and to allow him (R-1) to withdraw 50% of such deposited amount without furnishing any guarantee or security and the balance 50% by furnishing bank guarantee or property security. According to the claimant-respondent, her lands were acquired in the year 1983 for bidanasi Triangular Development Project, but till date she has not received the compensation for the lands as the matter is still pending for determination of the fair market price, as a result, she is undergoing undue hardship and irreparable injury. Counter affidavit has been filed by the appellant wherein it is stated that in view of order 27, Rule 8a of the CPC the State Government cannot be asked to deposit the decretal amount or furnish security contemplated under Order 41 Rule 1 (3) or Order 41, Rule 5 (5) of the CPC.

( 2 ) LEARNED counsel for the claimant-respondent stated that as per the provision of order 41, Rule 1 (3) and Order 41. Rule 5 (5)of the CPC an appellant shall deposit the differential decretal amount or furnish security for such amount in order to obtain an order of stay of the decree. He states that despite existence of Order 27, Rule 8a of the CPC the State appellant has to make the deposit as Order 41, CPC nowhere exempts the State Government or the Development Authority from depositing the decretal amount and considering this aspect the depositing the decretal amount and considering this aspect the Apex Court and this court have in many cases directed a State appellant to deposit the entire or part of the decretal dues as a condition for grant of stay. In support of his contention he relied on the cases of State of Orissa v. Pratibha Prakash bhawan etc. (1990) 69 CLT 323; State of U. P. v. Ratan Lal etc. Spl. Land Acquisition officer, Bangalore v. Dyavappa, 1995 LACC 637; Chief General Manager, Telecom, orissa v. V. N. Enterprises, A Partnership firm, 2004 (1) OLR 687.

( 3 ) IT is also argued that the Land Acquisition Act is a special and self-contained Act where deposit of the awarded amount at different stages of the proceedings is contemplated and as such the provisions of the order 27, Rule 8a of the CPC would not be applicable in appeal filed u/s. 54 of the L. A. Act as 'provisions of CPC which are inconsistent with the provisions of the L. A. Act, have been made non-applicable to L. A. proceedings including appeals. In support of this plea, learned counsel cited the cases of gurpreet Singh v. Union of India, (2006) 8 scc 457 : (2006 AIR SCW 5813); Prem Nath kapur v. National Fertilizers Corpn. of India Ltd. (1996) 2 SCC 71.

( 4 ) LEARNED Addl. Standing Counsel contended per contra that the provisions of order 27, Rule 8a, CPC not being in conflict with the provisions of L. A. Act, the same would be applicable to L. A. proceedings. He states that right from the beginning the State government has been exempted from demand of security or deposit in appeals as a condition for grant of stay as even before order 27, Rule 8a, CPC came into force there was Order 41, Rule 7, CPC in this regard. He explained that this exemption has been provided, as solvency of the State Government cannot be doubted. In support of this contention he relied on the case of Collector, Cuttack v. Padma Charan Mohanty. (1980) 50 CLT 191. He further argued that the cases cited by the claimant-respondent would not be of any help as they do not lay down any ratio and never considered the provision of Order 27, Rule 8a of the CPC before passing the orders.

( 5 ) IN view of the rival submissions of learned counsel for the respective parties, the following points emerge for consideration:

(i) Whether in an appeal u/s. 54 of the l. A. Act the State without deposit of the differential decretal amount can get order of stay of the execution proceeding ? (ii) Whether in view of the Order 27, Rule 8a, CPC the State-appellant is exempt

















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