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IN THE HIGH COURT OF ALLAHABAD
D. K. Seth
BHARAT IMMUNOLOGICALS AND BIOLBGICALS corporation LTD. - Appellant
Versus
RAMESHWARI DEVI - Respondents
First Appeal 127 Of 1995
Decided On : 09/01/1997
LAND ACQUISITION ACT - SECTION 18 - STAY OF EXECUTION - DEPOSIT OF DECRETAL AMOUNT - ORDER 41, RULE 1 (3) AND RULE 5 (5) - ORDER 27, RULE 8-A - GOVERNMENT EXEMPTED FROM FURNISHING SECURITY - STAY GRANTED IN FAVOR OF APPELLANT.
Fact of the Case:
Land Acquisition Act was resorted to for acquiring the desired land for a project of the appellant company, a Government of India Undertaking. The Special Land Acquisition Officer published its award fixing compensation at the rate of 69,417.39 per Bigha. The respondent received compensation under the said award. The respondent filed an appeal under Section 18 of the Act, which was allowed by the learned District Judge, enhancing the compensation by 13 times. The appellant filed an appeal against the said judgment and decree. The appellant filed an application for stay of operation of the judgment and decree, which was dismissed. The appellant filed a fresh application for stay, which was granted subject to depositing one-fourth (1/4) of the decretal amount by the appellant within four months. The appellant filed an application for extension of the said time, which was granted by two months. The appellant filed an application for recalling the two orders dated 16.8.1996 and 19.12.1996, along with a prayer for stay of operation of the judgment and decree dated 24.11.1994. The respondent filed an application for recalling the order dated 6.2.1997, by which the operation of the award was stayed till the date of listing.
Finding of the Court:
The Court held that the appellant, being a Government of India Undertaking, was exempted from furnishing security under Order 27, Rule 8-A of the Code of Civil Procedure. The Court also held that the appellate Court had erred in enhancing the compensation by 13 times without considering the relevant factors under Sections 23 and 24 of the Land Acquisition Act. The Court further held that the project undertaken by the appellant was of national importance and that staying the operation of the judgment and decree would be in the interest of the nation.
Issues: 1. Whether the appellant, being a Government of India Undertaking, was exempted from furnishing security under Order 27, Rule 8-A of the Code of Civil Procedure? 2. Whether the appellate Court had erred in enhancing the compensation by 13 times without considering the relevant factors under Sections 23 and 24 of the Land Acquisition Act? 3. Whether staying the operation of the judgment and decree would be in the interest of the nation?
Ratio Decidendi: 1. The Court held that the appellant, being a Government of India Undertaking, was exempted from furnishing security under Order 27, Rule 8-A of the Code of Civil Procedure. The Court relied on the fact that the Government had undertaken the defence of the suit and that the appellant was defending the Government cause. 2. The Court held that the appellate Court had erred in enhancing the compensation by 13 times without considering the relevant factors under Sections 23 and 24 of the Land Acquisition Act. The Court observed that the appellate Court had not discussed anything with regard to the award passed by the Special Land Acquisition Officer and had not discarded any of the grounds supporting the award. 3. The Court held that staying the operation of the judgment and decree would be in the interest of the nation. The Court considered the fact that the project undertaken by the appellant was of national importance and that staying the operation of the judgment and decree would prevent the project from being financially crippled.
Final Decision: The Court granted a stay of operation of the impugned judgment and decree dated 24.11.1994 till the disposal of the appeal. The Court also directed that it would be open to the respondent to apply for expeditious hearing of the appeal.
( 1 ) TWO applications for recalling certain orders passed in connection with the above appeal is the subject matter of decision. Civil Misc. Application No. 9460 of 1997 filed oft 4. 2. 1997 by the appellant contains a prayer for recalling the order dated 16. 8. 1996 passed by Honble S. C. Verma. J. and the order dated 19. 12. 1996 passed by honble Alok Chakkraborty, J. together with a prayer for stay of operation of the judgment and decree dated 24. 11. 1994 passed by the learned District Judge, Bulandhshahr in L. A. Ref. No. 162 of 1992 appealed against. The other application being Civil Misc. Application No. 28319 of 1997 filed on 22. 4. 1997 seeks recalling of an order dated 6. 2. 1-997 passed by this Court. Mr. Sunil Ambwani appearing for tlie appellant and Mr. L. C. Srivastava appearing for the respondent No. 1 addressed the Court on the said applications at length.
( 2 ) IN order to appreciate the situation, it is necessary to refer to the brief facts and the backgrounds out of which the present controversy addressed by the counsel of either of the parties had arisen.
( 3 ) THE appellant is a "company promoted by the Central Government holding 76 percent of the equity shares for indigenous production of Oral Polio vaccine as a Government of India Undertaking under the National immunisation programme considered of an extreme national urgency. For housing, the project of the Company, Land Acquisition Act was resorted to for acquiring the desired land. Notification under Section 4 (1) for acquiring 16 Bighas (10 acres) land was issued on 21. 11. 1988 followed by a Notification under section 6 (1) read with Section 17 of the Act published on 16. 2. 1989, pursuant to which possession was taken on 1. 6. 1989. The Special Land Acquisition Officer published its award on 24. 3. 1990 fixing compensation at the rate of 69,417. 39 per Bigha. The respondent No. 1 received compensation under the said award in respect of plot No. 173 measuring about 18 Biswa 4 Biswansi. The Appeal no. L. A. Ref. No. 162 of 1992 under Section 18 of the said Act filed by the respondent No. 1 was allowed by the learned District Judge, bulandshahr on 16th August. 1994 enhancing the compensation by 13 times namely at a rate of Rs. 325/- per sq. yard which calculates at Rs. 8,94,643. 75 per Bigha. First appeal No. 127 of 1995 was filed by the appellant against the said judgment and decree dated 16. 8. 1994. It is alleged that albngwith the appeal an application for was also filed. The appeal having been filed without sufficient Court fees, the stay application was dismissed. Thereafter, sufficient Court fees having been paid appeal was registered thereupon a stay application was filed. While admitting the appeal on 28. 3. 1995, an interim order was issued staying realisation of the enhanced amount provided the appellant deposits half of the enhanced amount within two months from the date of the said order and remaining half within six months thereafter. In default the order of stay would stand automatically vacated. The appellant did not deposit any of the amount. A fresh application was filed on 17. 7. 1995 with better particulars pointing out the entire amount of the award passed by the Special Land Acquisition officer being 18,00,ooo/- was deposited by the appellant and the same has. accordingly. been withdrawn by the respondent No. 1 and had also pointed out the aims and objects of the Company as well as its financial condition and the grounds on which the judgment and decree was challenged. By an order dated 20. 7. 1997, the operation of the award was stayed unconditionally. After counter affidavits were filed, by an order dated 16. 8,1996 passed by Honble S. C. Verma, J. the operation of the award was stayed subject to depositing one-fourth (1/4) of the decretal amount by the appellant within four months. On 19. 12. 1996, an application for extension of the said time was filed. On the said application two months time was granted by any
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