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1965 Supreme(MP) 40

High Court Of Madhya Pradesh
Shiv Dayal and S. P. Bhargava, JJ.
SUMATRA BAI - Appellant
Versus
STATE OF MADHYA PRADESH - Respondents
Misc. (First) Appeal 78 Of 1963
Decided On : 03/29/1965

Advocates Appeared:
N.ROY CHOWDHURY

Headnote:(1) Land Acquisition Act, 1894-Ss. 18 & 53-District Court holding award proceedings to be illegal-should set aside the award-the compensation should be determined by the District Court-award when may be remitted.

       When a reference is made under, section 18 of the Land Acquisition Act, it is the duty of the District Judge to frame issues, record evidence and determine the amount of compensation payable to the applicant, having regard to the settled principles Even if an award is erroneous, defective or invalid, the reference does not become, invalid or incompetent; indeed it is all the more reason for interference by the Court and to give to the person interested relief which he is entitled to. [Para 6

       The District Court has the power to set aside an illegal award as invalid and direct the Land Acquisition Officer to make a fresh award according to law. But in appropriate cases, the District Court should itself determine the compensation. [Para 7

       (2) Land Acquisition Act, 1894-Ss. 11 & 18-award of Lund Acquisition Officer-nature of-powers of the District Court in reference.

       'The award of the Land Acquisition 'Officer is an offer of compensation to the person entitled to it Any, person interested may refuse to accept the award and require the Land Acquisition Officer that the matter may be referred to the Court for the determination of the amount of compensation among other things. Thus it is the Court which determines the amount of compensation and, in doing so, it is invested with a special and exclusive jurisdiction. [Para 4

SHIV DAYAL, J.

( 1 ) CERTAIN land of the appellant, together with a house standing thereon, has been acquired by the Land Acquisition Officer, Balaghat. The acquisition is for the purposes of a school. For her khasra No. 310/1, area 0. 68 acre, and the house standing thereon, the Land Acquisition Officer, by his award dated 29 May 1956, assessed Rs. 1131/- as compensation payable to her. She did not accept the award and applied for a reference to the Civil Court under Section 18 of the Land acquisition Act.

( 2 ) THE Additional District Judge, Balaghat disposed of the reference in the following manner. He found that the award made by the Land Acquisition Officer was based purely on the report of the Revenue Inspector and his own impressions which he formed on spot inspection. It appeared to him that the Land Acquisition officer did not at all apply his mind to the question of valuation and just accepted the report of the Revenue Inspector and in doing so the Land Acquisition Officer "abdicated his functions to the Patwari and the Revenue Inspector and pronounced the award without even considering the correct ness of the report". The learned Judge further observed that the Patwari gave some information to the land Acquisition Officer mentioning therein sales of some lands in favour of different persons in particular areas, but the parties were not called upon to. file any sale deeds, nor was any evidence recorded by the Land Acquisition Officer. He further remarked that it was the duty of the Land Acquisition Officer to permit the parties to file sale deeds in respect of the neighbouring lands and to see that they were duly proved. But even the Parwari and the Revenue Inspector were not examined; nor was any evidence given on behalf of the State Government. Having said all this the learned Additional District Judge merely held that the award given by the Land Acquisition Officer was invalid being not in accordance with law. From this he concluded that the proceedings before the Civil Court also became ineffective. In the result, he declared the reference incompetent and rejected it on the ground that there was no valid award.

( 3 ) IT is impossible to sustain the decision of the learned Additional District Judge. In the penultimate paragraph of his order, the Additional District Judge points out what should have been done by the Land Acquisition Officer. He says that the assessment of the compensation is normally made on the basis of the prices of the lands in the vicinity sold within a reasonable time prior to the date of acquisition. He expressed surprise that the Land Acquisition. Officer made no effort to find out the prices fetched in such sales. If any such sales were made, the prices would indicate the fair market value. If such data were not available, the other considerations relevant for determining the market value of the land were the profit or loss which was derived from similar lands nearabout. It was for the Land acquisition Officer to find out the value of such lands and also consider other data which might be available, but the Land Acquisition Officer made no such endeavour.

( 4 ) BUT what did the Additional District Judge himself do? Merely finding fault with the award was not enough; it gave no redress to the party aggrieved by the award. The Additional District Judge, in rejecting the reference, virtually maintained the award; he did not even set aside the award, nor remitted it to the land Acquisition Officer. Having made weighty observations against the manner in which the Land Acquisition Officer reached his conclusions, the Additional District judge did nothing to undo the wrong. Furthermore, it is clear to us that he did not care to peruse the provisions of the Land Acquisition Act as regards the powers of the Court under Section 18. That section enjoins the Court, inter alia, to determine the amount of compensation. That is an important duty of the Court. It is quite clear from the scheme of the Act t











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