The Amending Act of 1974, which reduced the maximum compensation for mines and minerals to three times the net annual income, did not have retrospective effect and, therefore, the unamended Section 25(4) of the Bihar Land Reforms Act, 1950 applied to the appellant's case.

Headnote:
BIHAR LAND REFORMS ACT, 1950 - SECTION 25 - Retrospective effect of Amending Act - Compensation for mines and minerals - Interpretation of provisions.
Fact of the Case:

The appellant, a proprietor under the Bihar Land Reforms Act, 1950, received compensation for mines and minerals at ten times the net annual income, as determined by the Compensation Officer. The Member Board of Revenue later directed the appellant to refund the excess amount, holding that the compensation should have been determined at three times the net annual income as per the unamended Section 25(4) of the Act. The appellant challenged this order, arguing that the Amending Act of 1974, which reduced the maximum compensation to three times the net income, should not be applied retrospectively.
Finding of the Court:

The court held that the Amending Act of 1974 did not have retrospective effect and, therefore, the unamended Section 25(4) of the Act applied to the appellant's case. The court further held that the appellant had accepted the compensation without protest and, therefore, there was an implied agreement between the parties as per Clause (a) of sub-section (4) of Section 25 of the Act. As a result, the appellant forfeited his right to have the matter referred to a Tribunal for arbitration under Section 25(4)(b) and could not claim compensation at more than ten times the net income.
Issues: 1. Whether the Amending Act of 1974 had retrospective effect, thereby reducing the maximum compensation for mines and minerals to three times the net annual income. 2. Whether the appellant's acceptance of the compensation without protest constituted an agreement under Section 25(4)(a) of the Act, barring him from seeking arbitration under Section 25(4)(b).
Ratio Decidendi: 1. The court applied the principle of prospective operation of statutes, holding that a statute is presumed to be prospective unless expressly or necessarily intended to be retrospective. The Amending Act did not contain any provision indicating retrospective effect, and its application retrospectively would have affected the appellant's vested right to compensation. 2. The court interpreted Section 25(4) of the Act, holding that the appellant's acceptance of the compensation without protest amounted to an agreement between the parties, as per Clause (a) of the sub-section. This agreement barred the appellant from seeking arbitration under Section 25(4)(b) to claim compensation at a higher rate.
Final Decision: The court dismissed the appellant's appeal, upholding the order of the Member Board of Revenue directing the refund of excess compensation. The court held that the Amending Act of 1974 did not have retrospective effect and that the appellant's acceptance of the compensation without protest constituted an agreement under Section 25(4)(a) of the Act, barring him from seeking arbitration under Section 25(4)(b).

Judgement Key Points

Based on the provided legal document, the decisions in the case are not overruled. The judgment explicitly affirms the application of the unamended provisions of the relevant law, upholds the interpretation that the amending legislation does not have retrospective effect, and confirms the validity of the actions taken under the existing legal framework. The court dismissed the appeal, reinforcing that the prior decisions remain binding and effective. Therefore, there is no indication within this document that the decisions have been overruled.

Judgement

PHUKAN, J. :- This is an appeal against the judgment and order dated 9-5-90 passed by the Division Bench of Patna High Court, Ranchi Bench in L.P.A. No. 133 of 1989(R). By 3610 impugned judgment the Division Bench in the appeal refused to interfere with the judgment and order of the learned single Judge dated 13-9-87 passed in Civil Writ No. 540/83(R).

2. The admitted facts are as follows :-

The appellant herein was the proprietor within the meaning of Bihar Land Reforms Act, 1950 (for short the Act) in the interest in the estate including the subsisting lease of mines and minerals vested in the State of Bihar under the Act. A proceeding for payment of compensation was initiated under Chapter-V of the Act in the compensation Case No. 1/r/8 of 1951. The assessment roll dated 12-5-1978 was published under Section 28 of the Act for a sum of Rupees 4,29,527.50 paise. Payment was made under Section 32 of the Act to the appellant in the form of bond which was accepted.

3. The assessment roll was revised and a fresh roll was prepared on 3-11-1979 and compensation was assessed as Rs. 46,66,014.76 paise calculated at three times of net annual income. This amount also included the earlier amount of Rs. 4,29,527.50 paid and received by the appellant in the form of bond.

4. The appellant made a grievance to the Government regarding the compensation assessed and claimed at 15 times the net income but thereafter Additional Collector, respondent No. 4, who was the Compensation Officer, asked the appellant to file an affidavit if he was ready and willing to accept compensation for mines and minerals at ten times of net annual income which was duly agreed to by the appellant on 6-8-1982. Accordingly, a fresh compensation assessment roll was prepared and additional compensation of Rs. 25,87,300/- was paid to the appellant through his agent.

5. The Member Board of Revenue-respondent No. 2 in March, 1982 took suo motu action, reopened the compensation case of the appellant and held that compensation so computed was contrary to Section 25(4) of the Act which prescribed only three times the net income and directed the Deputy Commissioner-respondent No. 3 to issue notice to the appellant for refund of the excess amount of Rs. 25,87,300/-. Accordingly the notice was issued followed by a certificate case and being aggrieved the appellant approached the High Court.

6. The appellant took a plea that the Member Board of Revenue was not authorised under the Act to pass impugned order and if the authority was of the opinion that any excess amount was paid, an appeal under Section 27 of the Act could have been filed.

7. Before the High Court respondent pleaded that under Section 25 of the Act compensation on account of mines and minerals was paid and determined at three times of the amount of net income and, therefore, determination at ten times was under the Amending Act, 1974, wholly without jurisdiction. It is further pleaded that the appellant received the compensation as earlier determined without any protest and, therefore excess amount was liable to be refunded. According to the respondents the Member Board of Revenue had power of superintendence, direction and control and, therefore, the order was legally and validly passed.

8. It may be stated that the Act was amended including Section 25 by Bihar Land Reforms (Validation and Amendment) Act, 1974 (The Bihar Act No. 15 of 1974) (for short the amending Act). A question arose before the High Court as to whether the amending Act would have retrospective effect. The High Court decided that unamended provisions of Section 25 of the Act would apply to the present case. The High Court was of the view that the appellant having accepted compensation without protest in the year 1979 vide form G the matter could not have been reopened as there was implied agreement between the parties in terms of Section 25(4)(a) of the Act. It was also held that under Section 30(A) no fresh compensation assessment roll could

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1999 Supreme(SC) 1169

The Amending Act of 1974, which reduced the maximum compensation for mines and minerals to three times the net annual income, did not have retrospective effect and, therefore, the unamended Section 25(4) of the Bihar Land Reforms Act, 1950 applied to the appellant's case.

Cases Referred (2)