Supreme Court of India
BABUA RAMversusSTATE OF U.P.
- Citation
- 1994 INSC 437
- Decided
- 4 October 1994
- Disposal
- Disposed off
- Bench
- K RAMASWAMY
Holding
Section 28A is prospective, applies only to original civil‑court awards under Section 26 made after 24‑September‑1984, and a person who did not seek a reference under Section 18 becomes an aggrieved person entitled to redetermination, with the three‑month limitation running from the date of that award and no fresh cause of action arising from later awards.
Summary
The case concerned the interpretation of Section 28A of the Land Acquisition Act, 1894 as amended by the 1984 Amendment Act, particularly its prospective operation, the definition of “aggrieved person”, the computation of the three‑month limitation period, and whether awards of higher compensation by civil courts or appellate courts trigger redetermination for other landowners. The petitioners, owners of land acquired under a notification, claimed that they were entitled to a fresh determination of compensation under Section 28A after a neighbouring claimant obtained a higher award in a reference under Section 18. The State argued that Section 28A was either retrospective or a transitional provision and that the petitioners were not aggrieved persons within its scope. The Court held that Section 28A is prospective, applies only to awards of the civil court of original jurisdiction under Section 26 made after 24‑September‑1984, and that a person who did not make a reference under Section 18 becomes an aggrieved person when another landowner under the same notification receives a higher award. The three‑month limitation begins from the date of the civil court’s award, excluding the time taken to obtain the copy, and successive awards do not revive a lapsed limitation period. The Collector must defer redetermination until any appeal of the underlying award is finally disposed of. Accordingly, the appeals were allowed with directions to the Collector to follow the prescribed procedure.
Issues considered
- The prospective or retrospective operation of Section 28A of the Land Acquisition Act, 1894 as amended by the 1984 Amendment Act
- Whether a person who did not make a reference under Section 18 becomes an "aggrieved person" under Section 28A when another landowner under the same notification receives a higher compensation award
- The computation of the three‑month limitation period under Section 28A and whether successive court awards create fresh causes of action
- Whether awards of higher compensation by appellate courts (High Court, Supreme Court) fall within the meaning of "award" for purposes of Section 28A
- The right of the State or a beneficiary to seek a reference under Section 18 in the context of Section 28A
Legislation cited
- Code of Civil Procedure, 1908s. 11, s. 2(2)
- Land Acquisition Act, 1894s. 11, s. 18, s. 19, s. 20, s. 21, s. 23, s. 24, s. 26, s. 28A, s. 31, s. 4(1), s. 5, s. 54, s. 96
- Land Acquisition (Amendment) Act, 1984s. 23(1A), s. 28A, s. 30
Subjects
Land acquisitionCompensationSection 28AProspective legislationAggrieved personLimitation periodArticle 14Statutory interpretationReference under Section 18Redetermination of compensation
Judgment
A BABUARAM
v.
STATE OF U.P.
OCTOBER 4, 1994
B [K. RAMASWAMY AND N. VENKATACHALA, JJ.]
Land Acquisition Ac~ 1894 as amended by Land Acquisition (Amend-
ment) Act, 1984 (w.e.f September 24, 1984}-S.28A-/nterpretation of-Held,
S.28A is prospective and does not apply to awards made prior to
C 24.9.84-Also, held, where owner of other land covered by same notification
is awarded higher compensation by civil court on a reference under S.18, any
interested person in land acquired under same notification who did not avail
right and remedy of reference is aggrieved persolt-Award of civil court of
original jurisdiction on reference is award referred to in S.28A ( 1)-:ludgment
and decree of High Court or Supreme Court not award under
D s.28A(l}-Redeterrnination under s.28A should however be kept pending by
Collector/LAO till appeals are finally disposed of-Where appellate forum
affinns or reduces award of civil court, redetennination shall be on that
basis-Held further, provision intended for poor and inarticulate, and is not
available for (hose who had sought and secured reference and failed in civil
E court or further in appeaf-Ss.18(1) r/w 31 (2), 4( 1), 26.
Land Acquisition Act, 189.f-Ss.28A Proviso, 26-Limitatiolt-Whether
successive aw{lTds made by civil court at different times in respect of land
covered by same notification furnish separate causes of action-Held, limita-
tion begins to nm from date of award of court under S.26-Where there is
F more fhan one reference, (he earliest award is relevant for computing limita-
tion.
Land Acquisition Ac~ 189.f-S.28A-Whether a transitional prpvision
-Held, Land Acquisition (Amendment) Act, 1984 Expressly provided for
G transitional provision and S.28A is apart from it-Further, language of
provision indicates that it is intended to operate in perpetuity-Land Acquisi-
tion (Amendment) Act 1984, S.3(}-{nterpretation of Statutes.
Constitution of India-Article 14-Land Acquisition Act, 189.f-S.28A
-Difference in treatment between those who failed to avail the remedy of
H reference and (hose who were unsuccessful interested persons--Whether viola-
i48
BABUARAMv. STATE 149
tive of Article 14-Held, similar persons who availed of remedy but were A
unsuccessful are a distinct class-Legislature having intended to relieve
hardship to poor, indigent and inarticulate interested persons, classification
based on intelligible differentia and bears reasonable relation to object of
according another opportunity.
Land Acquisition Act, 189-f-Ss.26, 28A, 11, 18, 5-f-Whether B
beneficiary has right of reference from award of Collector under S.28A-Held,
offer of Collector being on behalf of State and the beneficiary, they may not
seek reference under S.llf-Award of Collector under S.28A (2) partakes the
same character as offer and not a decision, and beneficiary stands excluded
under S.28A(3 ). C
Constitution of Indiir-Articles 226, 227-Land Acquisition Ac~ 189-f-
S.28A-Held, State or beneficiary may challenge award of Collector under
S.28A only under Articles 226 and 227.
Land Acquisition Act, 189-f-S.28A-Haryana and H.P. Amend- D.
ments-S.18(2A)-Held, permit the state to seek reference against an award
under s.28A.
Intepretation of statutes-Aids to constrnctio1t-Statement of Objects
and Reasons-Held, it may be looked into to know what induced introduction
~- E
S.28A of the Land Acquisition Act, 1894 ('Act') was introduced by
the Land Acquisition (Amendment) Act, 1984. It provided for the redeter-
mination of the amount of compensation on the basis of the award of the
court, to be paid to persons interested notwithstanding that they had not
made an application for reference under s.18 to the Collector. Various
F
issues arising as to the Import of S.28A, including questions about
prospectivity, the persons included within its scope, whether 'award'
referred to therein is an award of only the original civil court or also of
the appellant courts,the computing of limitation, and the right of a
beneficiary to seek a reference, this Court issued notice to all the State G
Government and the Central Government.
Disposing of the appeals, this Court
HELD : 1. S.28A is prospective from the date the Act came into force,
i.e. September 24, 1984. It does not apply to an award under S.26 made H
150 SUPREME COURT REPORTS (1994] SUPP. 4 S.C.R.
A prior to that date. The verb "allows" in S.28(1) indicates that the right to
an aggrieved person arises under the provision only when the reference
Court grants compensation in excess of the amount awarded by the
Collector/Land Acquisition officer under S.11 after September 24, 1984.
The proviso, when it speaks of exclusion of time take to obtain copy of the
award by S.26 till it is supplied, also amplifies this position. Moreover, the
B transitional provision enacted in S.30 of the Land Acquisition (Amend·
men!) Act; 1984 provided variously for retrospective effect of some parts
of the provision, some without limitation and some with limited retrospec·
tivity. The legislature however not having given s.28 retrospectivity, it is
only prospective in operation. [172-A·C·F]
c Union of India v. Raghubir Singh, [1989] 2 SCC 754; Nyadar Singh v.
Union of India, [1988) 4 SCC 170; Maharashtra State Financial Corporation
v. Jaycee Dmgs and Pharmaceuticals (P) Ltd., [1991) 2 SCC 637; State of
Orissa v. Sukanti Mahapatra, [1993) 2 SCC 486; A.C. Sharma v. Delhi
Admn., [1973) 3 SCR 477; D.S. Nakara v. Union of India, [1983) 1 SCC
D 305; D. C.M. Ltd. v. Union of India, [1983) 4 SCC 166 and K.S. Paripooman
v. State of Kera/a, [1994] 5 SCC 593, referred to.
2. Where a civil court in a reference under S.18 awards compensation
higher than that awarded by the Collector, any person interested in other
land acquired by the same notification and who has not availed of the right
E
and remedy of reference is a person aggrieved, and is entitled to redeter·
mination under S.28A(l). [168·D)
Mewa Ram v. State of Haryana, [1986] 4 SCC 151 and K Rangiah v.
Sp!. Dy. Collector (Land Acquisition), [1982) 2 SCC 374, relied on.
F Collins English Dictionary, Webster Comprehensive Dictionary (In·
temational Edition), p.28 and Black's Law Dictionary (6th Edn.) p. 65,
referred to.
3. The award of the court referred to in S.28A(l) is that of the civil
G court of original jurisdiction or of judicial officer performing the functions
of such court under s.26 of the Act on reference under S.18. Since the
ju.dgment or the High Court under S.54 and of this Court do not come
within Part Ill or the Act, they stand excluded from an award envisaged
under S.28A(l). [168-C]
H 4. Limitation begins to run from the date the award is pronounced
BABUARAMv. STATE 151
by the court under S.26. Where there Is more than one reference under A
S.18 at the behest of different claimants of the lands covered by the same
S.4(1) notification, and the Court makes successive and varying awards at
various times, S.28A(l) expressly states that once limitation expires in
respect of the earliest award by effiux of time, none of the later awards
could revive the lapsed time under S.28A(l). Nor does it provide a fresh
B
cause of action on successive causes of action when multiple awards are
made at different times or dates. The judgment and decree of the Court of
appeal either under S.54 of under S.96 CPC or under Article 132, 133 or
136 of the Constitution does not furnish a fresh cause of action for
purposes of limitation. [169·A, D-G]
c
Raja Harish Chandra Raj Singh v. Dy. LAO, [1962] 1 SCR 676,
considered and distinguished.
S. If the objections relate to 'determination of compensation' and the
civil court enhances compensation on the basis of excess compensation
awarded under S.26, the other person interested in other lands covered by D
the same Notification, are entitled to an award nnder S.28A(l) and (2). If
it relates to any other objection, S.28-A becomes inapplicable. (179-F)
6. The right and remedy provided by S.l8A(l) Is not available to
those who sought and secured reference under S. 18, be they poor or E
others, and failed before the civil court or In appeal. The doctrine of res
judicata operates against such persons. [182-B, 181-G)
Mewa Ram v. State of Haryana (supra) and Scheduled Caste Co-
operative Land Owning Society, Batinda v. Union of India, (1991] 1 SCC
174, relied on. F
7. S.28A is just and fair and does not violate Article 14. The class of
similar persons who availed the right and remedy but were unsuccessful
are treated as a distinct class. It is not arbitrary as the classification is
based on intelligible differentia and bears a reasonable relation to the G
object of according another opportunity. (182-G]
8. Where the award is appealed against in the High Court or this
Court, the Collector/LAO should effect redetermination only after the
appeal is finally disposed of. Redetermination of compensation shonld
only be on the basis of the final judgment and decree of the appellate H
152 SUPREME COURT REPORTS [1994] SUPP. 4 S.C.R.
A forum, though it may not exceed the amount of the award of the original
court under reference. Before proceeding with the determination, he
should obtain ~n affidavit from the party making the application under
S.28A that no appeal against the award made under s.26 relied upon by
him was filed or if had been filed was disposed of by the appellate court
and to produce the certified copy of decree and judgment, if already
B disposed of. (184-E, 185-A)
9. The Collector should explain to the claimant his right to protest
against the compensation determined under S.11 and the right to seek a
reference under S.18. In case of his failur~ to avail of the same, he would
C not he entitled to further right and remedy to seek higher compensation.
The Collector should append a certificate to this effect and obtain the
signature/thumb impression of all the claimants and this should be a part
of the record of the award proceedings. A register should be maintained in
seriatim. The Collector/LAO should also maintain another register of the
application made under S.28A. (183-C-F)
D
10. The offer of the Collector being on behalf of the State and the
beneficiary, the State does not get the right to seek a reference under S.18.
Under S.28A, the State and the beneficiary are persons interested in
determination of just and proper compensation. However, acceptance of
E the awa~d under sub- section (3) is acceptance by the claimant and not by
the beneficiary or the State as the Collector acts on their behalf as an
agent. The award of the Collector under S.28A (2) partakes the character
of an offer and not a decision. The right to a reference under S.28A(3) by
the beneficiary therefor does not arise and stands excluded.
(186-C-G, 187-C-E)
F 11. In view of the local amendments to the Act by Haryana and
Hlmachal Pradesh, the State may seek reference under S. 28A (3). (188-B)
12. When applications made under S.28A create a doubt that the
award under s.26 which forms the basis for such application had been
G secured on an antedated or fraudulent application purported to have been
made under s.18, it shall be open to the State to have the matter thoroughly
examined by an Officer of the status of the District Collector/Commis-
sioner. [188-D) .
13. Where the Collector/LAO decides a S.28A application, the same
H amount of compensation need not be given where there are differences in
BABUARAMv. STATE [K. RAMASWAMY,J.] 153
nature and quality and situation of comparable land. (188-F) A
14. The Statement of Objects and Reasons can be referred to ascer-
tain the reason for the statute, and to ascertain the mischief sought to be
remedied by the statute. (162-G)
Utkal Contractors & Joinery Pvt. Ltd. v. State of Orissa, (1987) 3 SCR B
3.17; S.C. Prashar, Income Tux Officer v. Vasantsen Dwarkadas, (1964) 1
SCR 29; Shivnarayan Kabra v. State of Madras, (1967) 1 SCR 138; Workmen
of Mis. Firestone Tyre & Rubber Co. of India v. Management, (1973) 3 SCR
587 andA.C. Shanna v. Delhi Administration, (1973) 3 SCR 477, relied on.
Jia Lal v. The Delhi Administration, (1963) 2 SCR 864; Aswani Kumar
c
Ghosh v. Arabinda Bose, [1953) SCR 1 and Union of India v. Majur
Mahajan Manda/, (1977) 1 SCC 548, referred to.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 563 of
~ D
From the Judgment and order dated 24.10.91 of the High Court of
Judicature at Allahabad in C.M.W.P. No. 7276/87.
D.P. Gupta, Solicitor General, B.D. Agarwa~ G.L. Sanghi, A
Raghuvir, H.N. Salve, D.V. Sehgal, B. Sen, N.N. Goswami, M.L. Verma, E
Mrs. K. Amareshwari, S.K. Mehta, Dhruv Mehta, Aman Vachhar, Sudhir
Rawat, AS. Rawat, K.C. Bajaj, Ms. Indu Malhotra, Ms. Ayesha Khatr~ Raj
Kumar Mehta, Ranbir Yadav, G.K. Bansal, T.C. Sharma, B.K. Prasad, Ms.
A Subhashini, Heman! Sharma, P. Parmeswaran, A Mariarputtarn, Ms.
Arona Mathur, Dr. R.B. Masdokar, K.L. Taneja, M. Veerappa, K.H. Nobin F
Singh, P.N. Puri, Rajendra V. Pai, N.M. Adarkar, A K. Srivastava, R.
Sasiprabhu, Ranjan Mukherjee, P.L. Debey, S.K. Agnihotr~ Pradeep
Misra, K. Ram Kumar, Yashank Adharyu, C. Badrinath Babu, Anip Sach-
they, Y.P. Mahajan, W.S. Qadri, C.V.S. Rao, Ms. S. Janani, P. Gaur, S.M.
Sood, Anil Kumar Gupta-II, Y.P. Rao, AK. Panda, Aruneshwar Gupta, G
Anand Y adav and Rajeev Kr. Singh for the appearing parties.
The Judgment of the Court was delivered by
K. RAMASWAMY, J. Notification issued under Section 4(1) of the
Land Acquisition Act, 1894, (for short 'the Act') proposing acquisition of H
154 SUPREME COURT REPORTS [1994] SUPP. 4S.C.R.
A large extents of land situated in Auri and Anpara villages of U.P., was
published in the State Gazette on July 1, 1978 for public purpose, namely,
establishment of thermal power plant. The Special Land Acquisition Of-
ficer gave two awards for the respective villages, on June 28 and July 25,
1979. The amounts were said to have been paid to the claimants on diverse
dates between October 7, 1979 to August 8, 1983. One Krishna kumar on
B receiving the compensation under protest on June 28, 1979 made an
application under Section 18 for reference to the civil court. The Addi.
District Judge-II, Mirzapur, in his award and decree dated May 25, 1985
enhanced the compensation to Rs. 25,000 per bigha with enhanced
statutory benefits under Land Acquisition (Amendment) Act 68 of 1984
C (for short "Amendment Act"). The State carried the matter in Appeal No.
306/85 to the High Court which is pending disposal. On August 5, 1985,
the appellants moved the Special Land Acquisition Officer under Section
28-A to redetermine and award compensation at par with Krishna Kumar.
They also simultaneously moved the High Court under Article 226 to direct
the Special L.A.0. to decide their applications under Section 28-A. The
D High Court by its order dated January 28, 1987, when directed Special
L.A.O. to do the same, the latter rejected their applications on two grounds
namely, the appellants are not aggrieved persons and that the decree and
award made in favour of Krishna Kumar was pending - appeal in the High
Court. They again challenged it in Civil Misc. Writ Petition No. 7276/87
and by the impugned judgment dated October 24, 1991, the Division Bench
E dismissed the writ petition holding that the appellants are not aggrieved
persons within the meaning of Section 28-A read with Sections 11, 18 &
31 of the Act.
Civil Appeal Nos. 6675-89/94
F Leave granted.
The facts are that the Notification under Section 4(1) of 'the Act'
was published in the State Gazette on November 17, 1982. The Addi.
Deputy Collector and Land Acquisition Officer awarded compensation on .
G October 25, 1985 and the respondents received compensation without
protest. But one of the claimants with protest received the compensation
and on his reference under Section 18 the Addi. District Judge by his
award and decree dated October 25, 1990, enhanced the compensation.
The State carried the matter in appeal. In the meanwhile, on January 19,
1991, the respondents moved an application under Section 28-A of the Act
H to redetermine the compensation as awarded by the District Judge. The
BABUARAMv. STATE[K. RAMASWAMY,J.] 155
appellant being beneficiary, objected to its maintainability contending that A
the respondents are not aggrieved person. In the meanwhile, the High
Court set aside the decree of the District Judge and remitted the case for
fresh determination. We are informed that the Court awarded at Re.l per
sq. meter. The Land Acquisition Officer by his proceedings dated Novem-
ber 13, 1992, rejected their application finding that the respondents are not
aggrieved persons and no application after remand was made. The respon- B
dents filed writ petitions No. 350/93 and batch questioning the correctness
of the order passed by the LA.O. The High Court Court allowed the writ
petitions holding that the respondents are persons aggrieved and that since
applications have already been filed under Section 28A(l) within three
months from the date of award of the civil court dated January 25, 1990 C
there was not need for them to make fresh applications.
Civil Appeal No. 132 of 1992.
With
D
Civil Appeals Nos. 4823, 1067-80, 2030-31 of 1992.
Notification under s.4(1) was published on March 22, 1985 and the
award s.11 was made on may 18, 1985. The Addi. District Judge, by his
. award and decree dated 30.8.89 enhanced the compensation, on reference
under s.18, at the instance of others, at a sum of Rs. 59 ,290 per acre. The E
State filed an appeal under s.54 which is pending disposal. The respondents
made an application under s.28-A on 3.10.89 to which the appellants,
beneficiaries under the acquisition, had objected to the petition contend-
ing, inter alia, that the respondents are not aggrieved persons, the appeal
against the award of the Addi. District Judge was pending, yet the Collec-
tor overruling the objections, by his award dated May 1, 1990 has enhanced F
the compensation to Rs. 59,290 per acre with interest @ 6% per annum
from the date of filing the application. Therefore, the appellant filed an
application under s.28-A(3) seeking reference and by his proceedings
dated 5.2.91, the Collector rejected the request for reference under s.18.
The appellant carried in revision to the High Court in C.R. No. 2313/91 G
and the High Court of Punjab and Haryana by its order dated 17.7.91
summarily dismissed the· petition.
On April 27, 1994, this Court, while noticing divergence of opinion
expressed by different High Courts on the scope of Section 28-A, issued
notice to all the State Governments and the Central Government, since the H
156 SUPREME COURT REPORTS (1994) SUPP. 4S.C.R.
A decision will have effect on all the Governments and directed them to
appear and file their written arguments. Notice was also issued to the
. learned Solicitor-General to assist the Court. Though notices were served
accordingly to all the State Governments and the Central Government, only
the Central Government and some of the State Governments have entered
appearance through their counsel. However, none has filed written argu-
B ments till date despite opportunity afforded therefor.
It is contended for the State Governments that Section 28-A since
speaks of persons "interested' and 'aggrieved", a claimant who received
compensation without protest, becomes disentitled to make an application
under s.18 because of the second proviso to sub-s (2) of s.31. He being a
C non-protester cannot be an aggrieved person. A claimant who receives
compensation under protest but makes no application under Section 18,
becomes a person aggrieved under Section 28-A of the Act and is entitled
to seek redetermination for higher compensation. The question of redeter-
mination of compensation would arise only if an award under section 11
D had been made by the Land Acquisition Officer/Collector after the
Amendment Act had come into force, namely, September 24, 1984. In
other words, their contention was that section 28-A is prospective in
operation and has no application to any award made by the Collector/
L.AO., prior to the Amendment Act had come into force. It was also
contended that such an application should be made within three months
E from the date of the award of the court, i.e., civil court on reference under
Section 18 and not on each successive award or decree in appeal. The
limitation of three months should be computed from the date of the award
of the civil court, first in point of time and that neither the subsequent
award under Section 26 or the Judgment or decree of the High Court
under Section 54 of this Conrt, does furnish any cause of action nor does
F the limitation of three months under Section 28-A start running from the
later dates. When an appeal was filed by the State/beneficiary against the
award and decree of the civil court, the Collector/L.A.0. has to await the
decision of the High Court or of this Court before redetermining the
compensation under s.28A(2). Be it the award made before the Act came
G into force, or the award of the court made after the Amendment Act has
come into force, no application under Section 28-A would lie. The award
of the court envisaged under Section 28-A can only be of the civil court
made on a reference under Section 18 and not the judgment and decree
of the High Court or of this Court. The claimants who did not receive
compensation under protest or unsuccessful applicants under ss.18 or 54
H
',•
BABVARAMv. STATE [K.RAMASWAMY,J.] 157
of the Act or under Art. 136 etc. are not the persons aggrieved when the A
compensation was further enhanced under Section 26 or by the High Court
1mder s.54 or by this Court. It was also contended that the person aggrieved
under Section 28-A, must be one who has an interest in the land which is
sine qua non to claim for higher compensation. Even one who was hand-
icapped due to illiteracy, ignorance or poverty had to receive the compen-
sation only under protest. Only that class of persons who had received the B
compensation under protest could be aggrieved persons to avail of the right
to claim redetermination of compensation. Section 28A is a transitional
provision and does not apply to future awards. The Collector when redeter-
mined the compensation under s.28A(2), the beneficiary being person
interested not having accepted the award, such person becomes entitled to C
seek reference, under s.28-A(3). ,
Shri Harish Salve, the learned senior counse~ who argued for the
claimants, contended that when compensation was enhanced by court, be
it court of original or appellate jurisdiction, for the land in the neighbour-
hood of the claimant acquired under the same Notification, such claimant D
also becomes entitled to receive higher compensation for his land by
making an application under s.28-A in that behalf. The grant of higher
compensation would furnish the cause of action even to 'the non-protester
claimant to make an application under s.28-A(l) for redetermination.
Payment of inadequate compensation provides him grievance to seek
redetermination. Therefore, he is an aggrieved person, whether received E
compensation with or without protest or omitted to pursue the right and
remedy under Section 18 or 54 or under Article 136. The right to receive
adequate compensation is the object of the Amendment Act as it was
intended to relieve hardship of the poor or inarticulate claimants who
receive inadequate compensation as stated in the Statement of Objects and
Reasons of the Bill and the Financial Memorandum annexed to it. There- F
fore, whether a claimant received the compensation under protest or
without protest, the moment the claimant of the neighbouring land gets
higher compensation, he also becomes entitled to make an application
under Section 28-A for redetermination. Appeal is a continuation of the
original proceedings under Section 18. The limitation begins to run as soon G
as higher compensation is awarded either by the civil court or by the High
Court or by this Court. Excluding the time taken for obtaining a copy of
the judgment, within three months thereafter, the application in writing
should be made for redetermination. As the LA.O. is enjoined to redeter-
mine the compensation on the basis of the enhanced ·award of compensa-
H
158 SUPREME COURT REPORTS [1994] SUPP. 4 S.C.R.
A tion made under s.26 by the court after September 24, 1984, an award made
under Section 11 even before coming into force of Section 28A, would also
be liable to be reopened. Each or successive award or decree of the Court,
original or appellate jurisdiction would furnish fresh cause of action to
those who had not sought reference under Section 18 or appellate
remedres. An unsuccessful applicant for reference under Section 18, who
B did not avail of appellate remedies, cannot unjustly be denied payment of
compensation of parity with his affluent neighbour who had been given
higher compensation; be it under s.26 or 54 of the Act or article 136 of the
Constitution etc. Denial would be invidious discrimination between persons
similarly situated, violating article 14 when the remedy was intended to be
C given by the legislature to the poor and inarticulate who usually do not take
advantage of the remedy of reference to higher forums. Sections 28-A(2)
and (3) throw sufficient light on the interpretation of Sections 28-A(l), 11,
18 and 31. Payment of equal compensation to all the people having interest
in the lands acquired under the same Notification is the quintessence and
running thread to avail of the right and the remedy provided for under
D Section 28-A for redetermination of the compensation as required by the
aggrieved persons. It was also contended that the finality of the disposal of
the reference uoder ss. 18 and 54 or Article 136 crystalises the quantum of
compensation payable to the lands under acquisition and that should not
only furnish the remedy the lay claim but also provide a starting point to
compute the limitation. This beneficial interpretation would subserve the
E purpose of Section 28-A. A harmonious interpretation to advance the
object of Section 28-A should be adopted to achieve the legislative anima-
tion of according parity in payment of compensation to all claimants who
have an interest in the lands under the acquisition. Restricted interpreta-
tion canvassed for the State frustrates the object of the right and remedy
F given by Section 28-A of the Act. Section 28-A is not a transitional
provision but one enacted to given benefit in perpetuity even to non-
protester of the right and remedy of redetermination when his neighbour
secured higher compensation.
Before considering the sweep and effect of Section 28-A, it would be
G profitable to advert to the scheme of compensation awardable to a land
acquired pursuant to the Notification published uoder Section 4(1) and
declaration made under Section 6 thereof. By issuing notices uoder Section
9 & 10 to persons interested in the acquired land, they are required to
putforth their claims for compensation payable therefor. The Collector
H defined under Section 3(c) who issues such notices is enjoined by S.11 to
BABUARAMv. STATE[K.RAMASWAMY,J.] 159
hold an enquiry on the claims for making an award of the compensation A
which in his opinion should be allowed for the land. In determining the
amount of compensation, the Collector shall guided by the provisions of
ss.23 and 24, as is enjoied by s.15. However, such award carmot be made
by the Collector without the prescribed approval of the appropriate
government or of such officer as the appropriate government may authorise B
in this behalf because of the proviso. However, sub-s.(2) of s.11 empowers
the Collector, without any further enquiry, to make an award in terms of
an agreement, where such agreement is made by writing by persons inter-
ested in the land on appearing before him. The award shall be made within
the period of limitation fixed by S.11-A. That award is required to be filed
in this office and shall be final and conclusive evidence between the C
Collector and the persons interested as regards matters specified in s.12.
When the award is made, the Collector shall give immediate notice to such
of the interested persons as are not present personally or by their repre- .
sentatives. Section 31 mandates the Collector to tender payment of the
compensation awarded by him to the persons interested thereto according D
to the award and to pay to them unless prevented by one or more of the
contingencies enumerated in Sub-sections (2) and {3) or the latter sub-sec-
tion or by reason of a reference made under s.30. By operation of second
proviso to S\lb-section (2) it was "provided also that no person who has
received the amount otherwise then under protest shall be entitled to make
any application under s.18". On receiving the payment under protest, an E
application for reference under s.18 shall be made within six weeks from
the date of the Collector's award when the person interested was present
when award was armounced. In other cases, within 6 weeks from the date
of the reeeipt of the notice from the Collector under sub-s.(2) of s.12 or
within 6 weeks from the dete of the Collector's award whichever period F
shall first expire. Under s.16, unless possession of the acquired land was
taken under s.17, the Collector shall take its possession and such land
thereafter vests in the State absoi>Jtely free from all encumbrances.
The person receiving compensation under protest because of the first G
proviso to s.31(2), gets right under s.18{1) to make an application in writing
to the Colle_ctor requiring him to refer the matter to the Court 'for
determination of his claim for compensation and the Collector/LA.0. in
such an event, is enjoined to refer the matter with the required particulars.
Court has been defined in s.3( d)to mean principal Civil Court of original
jurisdiction unless the appropriate Government has appointed, a special H
,
160 SUPREME COURT REPORTS [1994] SUPP. 4 S.C.R.
A Judicial Officer within specified local limits to perform the functions of the
Court under the Act. Under the respective Civil Courts Act of each State,
different Courts have been conferred with original civil jurisdiction like the
Courts of civil judges or Sub-ordinate Judges in South India, the Addi.
District Judge in other States or Special or Senior Civil Judge etc. The Civil
Court will follow the procedure prescribed in Part III of the Act and C.P.C.
B in determining the compensation as envisaged under s.23 of the Act and
determine the market value of the lands acquired and award the compen-
sation in terms of the provisions of the Act. The details thereof are not
material for the present purpose. However, by operation of s.25 the amount
of compensation to. be awarded by the Court shall not be less than the
c amount awarded by the Collector under s.11. Under s.26, the Civil Court
shall make its award as enjoined in sub-s.(1) and it is a decree under
sub-s.(2) thereof.
In Raja Harish Chandra Raj Singh v. The Dy. Land Acquisition Officer
D and Anr., (1962) 1 SCR 676, the Dy. Collector on making an award on
March 19, 1950, did not notice or award to the appellant. On January 13,
1953, on coming to know of the making of the award, the appellant made
an application on February 24, 1953 under s.18 requesting the Collector to
refer the matter for determination by the Court. That application was
dismissed as barred _by limitation. In dealing with question of limitation,
E this Court held that the decision of the Collector under Section 11 is in
respect of the amount of compensation which should be paid to the person
interested in the property acquired. Legally such award cannot be treated
as a decision. It is in law an offer or tender of the Compensation deter-
mined by the Collector to the owner of a property acquired. If !he owner
F accepts the offer, no further proceeding is required to be pursued, the
amount is paid and compensation proceedings comes to an end. If, how-
ever, the oWiler does nQt accept the offer, Section 18 gives him the statutory
right of having the q~stion determined by court and it is the amount of
compensation which the court may determine that would bind both the
owner and the Collector. The Collector does not determine the amount
G with legal authority but if the court determines the amount judicially, the
acquisition proceedings would be concluded. The award, therefore, was
considered as a tender or offer made by the Collector on behalf of the
Government to the owners of the property for acceptance. Although the
Government is bound by the proceedings of the Collector, the persons
H interested are not concluded by the findings in the award. Therefore, he
BABUARAMv. STATE[K.RAMASWAMY,J.] 161
makes the offer binding on the Government as well as on the owner of the A
property. Communication of the award is required to be done if he is not
present at the time of the making of the award or none represented them.
Service of notice of award is made mandatory. Therefore, this Court held
that "the date of the award cannot be determined solely by reference lo
the time when the award is signed by the Collector or delivered by him in B
his office; it must involve the consideration of the question as to when it
was know to the party concerned either actually or constructively. The date
of the award should be construed in that perspective. The knowledge of
the party affected by the decision of the Collector, either actual or con-
structive, is an essential element which must be satisfied before the decision
can be brought into force. The communication of the award to the party C
concerned, actually or constructively, is therefore, necessary. If the award
is pronounced in the presence of the party whose rights are affected by, it
can be said to be made when pronounced. If the date for the pronounce-
ment of the award is communicated to the party and it is accordingly
pronounced on the date previously armounced, the award is said to be D
communicated to the said party even if the said party is not actually present
on the date of its pronouncement. If the party is represented, the party is
presumed to have the knowledge of the date. In other cases, the com-
munication to the party is necessary." Knowledge of the party affected by
the award eight actual or constructive is essential to satisfy the require-
ments of fairness and principles of natural justice. The legal position E
enunciated in Barish Chander's case being the law under Art. 141 and the
legislature being presumptively aware of this legal position, has altered
the law by enacting s.28A by the Amendment Act.
The State having regard to the Directive Principles of State policy in F
Part IV of the Constitution which has to undertake diverse measures in a
massive scale to promote public welfare and to accelarate economic
development has to inevitably acquire land needed for public purposes -
industrial development, housing, educational institutions etc. Cases of land
acquisition of land have become far more numerous than ever before. G
Exercising the power of eminent domain when the State takes recourse to
acquisition of lands of the individuals or institutions for public purpose, to
balance the right of the individual whose land is acquired for promotion
of the public purpose, the deprived owner of the land is required to be
adequately compensated for his own rehabilitation keeping in view the ·
sacrifice he makes in the larger public interest. Taking into consideration H
162 SUPREME COURT REPORTS (1994) SUPP. 4 S.C.R.
A the stark realities that many a poor and inarticulate owner of acqnired land
are not usually taking advantage of the reference provided in Section 18
for obtaining adequate compensation for their acqnired lands, Parliament
while bringing about certain amendments to the Act, has enacted Section
28-A through the reintroduced 1984-Bill, with the object mentioned in para
2(IX) of the Statement of Objects 'and Reasons, which says : - "considering
B that the right of reference to the civil court under Section 18 of the Act is
not usually taken advantage by poor and inarticulate and is usually exer-
cised only by the comparatively affluent land owners and that this causes
considerable inequality in the payment of compensation for the same or
similar quality of land to different interested persons, it was proposed to
C provided an opportunity to all aggrieved parties whose land is covered
under the same Notification to seek redetermination of compensation, once
any one of them has obtained orders of payment of higher compensation
from the reference court under Section 18 of the Act." In para 3 of the
Financial Memorandum, it is stated thus : "Clause (19) of the Bill seeks
D to commensurate a new s.18A of the Act whjch provides that if a party in
a land acquisition proceeding obtains the orders of the court under s.18 of
the Act for higher compensation, another person whose lands are covered
under the same Notification under s.4(1) of the Act and who may have
reason to be similarly aggrieved by the award of the Collector, may file to
the Collector for redetermination of their amount of compensation payable
E to them on the basis of the amount of compensation awarded by the Court".
The Statement of Objects and Reasons, as seen eloquently manifests
the legislative animation in enacting s.28A of the Act. This Court in Utkal
Contractors & Joinery Pvt. Ltd. v. State of Orissa, (1987] 3 SCR 317-28 E &
F, held that the safest guide to the interpretation of statutes is the reason
F for it, which can be discovered through the external and internal aids, the
external aids are Statement of Objects and Reasons when the Bill was
presented in Parliament and internal aids are the preamble, the scheme
and the provisions of the Act. The Statement of Objects and Reasons can
be referred to ascertain the mischief sought to be remedied by the statute
G vide S.C. Prashar, Income Tax Officer v. Vasantsen Dwarkadas, (1964) 1
SCR 29, Shivanarayan Kabra v. State of Madras, [1967] 1 SCR 138,
Workmen of Mis Firestone Type & Rubber Co. of India v. Management &
Ors., [1973) 3 SCR 587; and inA.C. Sharma v. Delhi Administration, (1973)
3 SCR 477.
H InJia Lal v. The Delhi Administration, [1963) 2 SCR p.864 at 877, a
BABVARAMv. STATE[K RAMASWAMY,J.) 163
Constitution Bench held that the Statement of Objects and Reasons is not A
admissible in evidence for construing the statute. In Aswini Kumar Ghosh
& Anr. v. Arabinda Bose & Anr., (1953] SCR p.l at 28, another Constitution
Bench held that the Statement of Objects and Reasons only would explain
what reasons induced the mover to introduce the Bill in the House and
what objects he sought to achieve. They may or may not correspond to the
B
objectives, the majority of members had in view when they passed it into
law. The Bill may have undergone radical changes during its passage
through the House or Houses, and there is no guarantee that the reasons
which led to its introduction and the objects thereby sought to be achieved
have remained the same throughout till the Bill emerges from the House
as an Act of the Legislature, for they do not form part of the Bill and are C
not voted upon by the members. Therefore, it would not be an aid for the
construction of the statute. In Union of India & Anr. v. Majur Mahajan
Manda/ & Ors., (1977] 1 SCC 548 at 554 para 28], this Court held that the
statement of objects and reasons would be looked into when there is
ambiguity in the language used in the statute.
D
Now let us see the text of Section 28-A. It reads as follows :
"28-A. Redetennination of the amount of compensation on the basis
of the award of the Court - (1) Where in an award under this Part,
the Court allows to the applicant any amount of compensation in E
excess of the amount awarded by the Collector under Section 11,
the persons interested in all the other land covered by the same
notification under Section 4, sub-section (1) and who are also
aggrieved by the award of the Collector may, notwithstanding that
they had not made an application to the Collector under Section
18, by written application to the Collector within three months F
from the date of the award of the Court require that the amount
of compensation payable to thern may be redetermined on the basis
or the amow.1t of compensation awarded by the Court:
Provided. that in computing the period of three months within G
which an application to the collector shall be made under this
sub-section, the day on which the award was pronounced and the
time requisite for obtaining a copy of the award shall be excluded.
(2) The Collector shall, on receipt of an application under
sub-section (1), conduct an inquiry after giving notice to all the H
164 SUPREME COURT REPORTS (1994] SUPP. 4 S.C.R.
A persons interested and giving them a reasonable opportunity of
being heard and make an award determining the amount of com-
pensation payable to the applicants.
(3) any person who has not accepted the award under sub-sec-
tion (2) may, by written application to the Collector, require that
B the matter be referred the Collector for the determination of the
Court and the provisions of Section 18 to 28 shall, so far as may
be, apply to such reference as they apply to a reference under
Section 18."
c A bare reading of Sub-section (1) of Section 28-A would indicate
that wherein an award under this Part, (Part III consists of Section 18 to
28), Court allows to the applicant any amount of compensation in excess
of the amount awarded by the Collector under s.11, the persons interested
in all other lands covered by the same Notification under s.4(1) and who
D are also aggrieved by the award of the Collector, may, notwithstanding that
they had not made an application to the Collector under s.18, by writing
make an application to the Collector within three months from the date of
the award of the Court requiring that the amount of compensation payable
to them may be redetermined on the basis of the amount of compensation
awarded by the court. The proviso gives a right to exclude the time taken
E from the day on which the award was pronounced and the time required
to obtain a copy of the award in computation of three months within which
the application for redetermination has be made in writing to the Collector
under sub-s.(1) of Section 28-A. The basis for redetermination is the award
of the Court and the compensation awarded therein. Sub-section (2)
F thereof enjoins the Collector to issue notice to all the persons interested,
i.e. the applicant, the State and the beneficiary, if any, to give them
reasonable opportunity of being heard in the inquiry conducted thereon
and to make the award determining the amount of compensation payable
to the applicants under sub-s.(l). Sub-section (3) gives a right to the
applicant either to accept the award or to accept the compensation under
G protest. In the latter case he has been given a right under sub-s.(3) to make
a written application to the Collector to refer the matter for determination
under s.18 to the Court. The provisions of Sections 18 to 28, as far as may
be, apply to such references. Thus, s.28-A is a complete Code in itself ,
providing substantive right to an interested owner who received compen-
H sation under s.18 without protest for higher compensation, and remedy has
BABUARAMv. STATE[K.RAMASWAMY,J.] 165
been provided to make a written application within the prescribed period. A
The non-obstanate clause lifts the rigour of the bar created by s.18(1) and
the second proviso to s.31 and makes him eligible to be at par with his
neighbour to claim parity for compensation to the land similarly situated
as the land covered by the court award.
The first question that arises for determination is, who is a person
B
."aggrieved" within the meaning of s.28-A(l) of the Act. Para 2 (IX) of the
Statement of the Objects and Reasons read with para 3 of the Financial
Memorandum would indicate that s.28-A was introduced for the first time
in the second Bill to benefit poor and inarticulate people who by reason
of their poverty, ignorance and illiteracy fail to take advantage of their right C
of reference to the Civil Court under s.18. By operation of second proviso
to sub-s.(2) of s.31 and s.18(1), though such people are interested persons,
if due to their ignorance, illiteracy or indigence, receive compensation for
their lands without prates~ would be denied of their right to obtain higher
compensation while the comparatively affluent land owners of their neigh- D
bouring lands who take advantage of the reference under s.18 would get
higher compensation determined by the court. Hence s.28-A makes the
award under s.26, the foundation for obtaining higher compensation by
poor and inarticulate people. In Mewa Ram v. State of Haryana, [1986] 4
SCC 151, this court held that right and remedy under s.28-A was meant
for that class of persons who were poor and inarticulate and by reason of E
their poverty and ignorance, should have failed to take advantage of the
right of reference to the court for higher compensation under s.18. How-
ever, this Court concluded that to avail of the remedy under s.28-A, the
conditions laid down therein were io be fulfilled.
F
In K Rangiah v. Special Dy Collector (Land Acquisition), [1982] 2
sec 374; this court observed that in an acquisition proceedings, lands
situated in the same locality and in the neighbouring locality when are
possessed of the same comparable advantages, the owners of the former
lands are entitled to the same rate of compensation as the owners of other G
lands as determined by the judgment of the High Court which had become
final as otherwise, it would be inequitable and discriminatory. In other
words, the owners of the lands possessing the same kind and same quality
etc. are entitled to parity in payment of compensation for their lands.
Section 28-A(l) is intended to overcome the hurdle created by s.18(1) and
2nd proviso to s.31(2) in the matter of obtaining equal compensation for H
166 SUPREME COURT REPORTS [1994] SUPP. 4 S.C.R.
A similar acquired lands. Equal compensation for similar acquired lands
could be got by all the interested persons, if their lands are acquired under
the same Notification. In other words, if an owner fails to a".ail of the right
and remedy under s.18(1), s.28-A(l) grants an extra right and remedy for
redetermination of the compensation payable to him for his land on the
B basis of an award of the court giving to an owner of another land covered
by the same Notification under s.4(1) and under the same award. The
payment of higher compensation to his neighbouring land owner makes an
applicant an aggrieved person to claim redetermination of the compensa-
tion payable to him for his land. The person aggrieved is, therefore, in this
context, would mean a person who had suffered legal injury or one who
C has been iinjustly deprived or denied of something, which he would be
interested to obtain in the usual course or similar benefits or advantage or
results in wrongful affection of his title to compensation.
In Collins English Dictionary, the word 'aggrieved" has been defined
D to mean "to ensure unjustly especially by infringing a person's legal rights".
In Webester Comprehensive Dictionary, International Edition at page 28,
aggrieved person is defined to mean 'subjected to ill-treatment, feeling an
injury or injustice. Injured, as by legal decision adversely infringing upon
one's rights". In Strouds Judicial Dictionary, Fifth Ed., Vol.1, pages 83-84,
person aggrieved means "person injured or damaged in a legal sense''. In
E Black's Law Dictionary, Sixth Ed. at page 65, aggrieved has been defined
to mean 'having suffered loss or injury; damnified; injured", aggrieved
persons has been defined to mean "One whose legal right is invaded by an
act complained of, or whose pecuniary interest is directly and adversely
affected by a decree or judgment. One whose right of property may be
F established or divested. The word "aggrieved' refers to a substantial
grievance, a denial of some personal, pecuniary or property right, or the
imposition upon a party of a burden or obligation."
The person aggrieved must; therefore, be one who 'has suffered a
G legal grievance because of a decision pronounced by Civil Court giving
higher compensation for the acquired lands similar to his own while he is
denied of such higher compensation for his land because of operation of
s.18 read with s.31 of the Act resulting in affectation of his pecuniary
interest in his acquired land directly and adversely by that award of the
Collector made under s.11. As such he becomes as such aggrieved person
H and entitled to avail of the right and remedy conferred upon him under
BABUARAMv. STATE[K.RAMASWAMY,J.] 167
s.28A(1) to make good his denied right to receive compensation in excess A
of the amount awarded by the Collector/L.A.0. Acceptance of the conten-
tion of Shri G.L. Sanghi, learned senior counsel and his companions, that
persons who under protest received payment of compensation for their
lands but failed to avail of the right and remedy under s.18 waiting in the
wings for success of the land owners of the adjoining lands to get higher
B
compensation under s.28-A(l) as person aggrieved robs the poor and
inarticulate who. by reason of their poverty or ignorance failed to avail of
the right and remedy under s.18, and creates not only invidious discrimina- ·
tion between same class of person similarly sitnated but would be highly
unjust and arbitrary offending Article 14 of the Constitution, apart from
flying in the face of express animation of the statute as espoused in its C
Statement of Objects and Re.asons and the Financial Memorandum. In this
context, we make it clear that we have looked into Statement of Objects
and Reasons and the Financial Memorandum to know what is it that
induced the introduction of the Bill but not as an aid to interpret s.28-A(l).
Therefore, we have no hesitation to hold that any interested person in the D
land acquired under the same Notification published under s.4(1) who
failed to avail the right and remedy under s.18(1) read with second proviso
to s.31(2), becomes a person aggrieved under s.28-A(l) of the Act, when
the owner of the another land covered by the same notification is awarded
higher compensation by the Civil Court on a reference got inade by him
under s.18. E
The next question is as to when the period of limitation of three
months beings to run under s.28-A and whether successive awards made
by Civil Court at different times in respect of the land covered by the same
Notification furnish separate causes of action for making applications F
under s.28A. Let us consider the meaning of the words "an award under
this part' referred to in s.28-A(l) which is Part III of the Act. The heading
to that part begins by reference to court and its procedure. The "court"
means a principal civil court of original jurisdiction or a special judicial
officer appointed to perform the functions of the court under the Act as G
becomes clear as is noticed already. What are the matters to be considered
in determining the compensation on a reference made to it under s.18, is
detailed in s.23 while matters to be neglected in determining such compen-
sation is indicated in s.24. By operation of sub-s.(2) of s.26, the award made
determining the amount of compensation shall be deemed to be a decree
while the statement of the grounds of every such award is deemed to be H
168 SUPREME COURT REPORTS (1994) SUPP. 4 S.C.R.
A the judgment, for the purpose of Code of Civil Procedure. The above
perspectives from Part III make it clear that the award of the court is that
of the civil court of original jurisdiction in that part. It is decree for the
purpose of an appeal under s.54 which falls in Part VIII of the Act
(Miscellaneous). The decree as defined in s.2(2) C.P.C. is the decree of
the High Court, which shall be appealable to the Supreme Court under
B
Articles 132, 133 and 136 read with Order 45 C.P.C. Hence, the award of
the court referred to in sub-section (1) of s.28-A is only the award of the
civil court of original jurisdiction or of judicial officer performing the
functions of such court under the Act on reference received by it under
s.18 and an award and decree pronounced under s.26 of the Act. Since,
C the judgment and decree of the High Court under s.54 or of this Court do
not come in part III of the Act, they stand excluded from an award
envisaged under sub-s.(1) of s.28-A. The aggrieved interested person,
therefore, is entitled to the right and remedy of making an application
under s.28A for redetermination of compensation for his acquired land
D only on the basis of the award of the civil court or judicial officer which is
a judgment and decree under s.26 when such award grants compensation
in excess of the amount awarded by the Collector under s.11. When such
an application is made in writing by the aggrieved person, notwithstanding
the fact of his having received compensation under s.31 without protest and
of not availing the right and remedy of the reference under s.18, the
E redetermination of the compensation under s.28A(l) is required to be
done.
The question then is when exactly the period of limitation starts
running for making an application in writing under sub-s.(1) of s.28-A. A
p bare reading of sub-s. (1) along with its proviso would indicate that the
making of the award by the civil court or judicial officer which becomes
the judgment and decree under s26, is the starting point from which the
period of limitation is allowed for making an application under s.28A.
However, the person aggrieved in computing the period of three months
allowed for making an application under s.28-A would be entitled to
G exclude the day on which the award was pronounced by the court or the
judicial officer and the time requisite for obtaining the certified copy of
the award which is a judgment and decree under s.26. In other words, the
proviso to sub-s.(1) of s.28-A excludes the requisite time taken for obtain-
ing the copy of the award and in computation of the period of three months
H from the date of the award, the time required to obtain a certified copy of
BABUARAMv. STATE [K. RAMASWAMY,1.] 169
the award should be excluded. Limitation begins to run from the date the A
award was pronounced by the court under s.26. It is well-settled that the
Jaw of limitation limits the time after which a suit or other proceedings
cannot be entertained in court of justice or before appropriate authority,
though it does not affect the substantive rights of the parties. Once the
limitation begins to run, it runs in its full course until its running is B
interdicted by an order of the court. Explanation to s.11 provides internal
evidence in this behalf to make the point poignantly clear which states that
in computing two years period to make award under s.11, the period during
which any action or proceeding to be taken in pursuance of the declaration
under s.6 is stayed by an order of a court, should be excluded. The C
legislature prescribed three months' limitation to quicken diligence like
caveat emtor and provided to a non-protester right to redetermination
provided the application in writing is made to the Collector within three
months from the date of the award of the civil court of original jurisdiction,
excluding the requisite time taken to obtain a copy of the award. In other
words, the right and remedy provided by s.28-A(l) stands extingoished D
with the expiry of three months from the date of the award under s.26. It
is true that in a given set of facts, there could be more than one reference
under s.18 at the behest of different claimants of the lands covered by s.4(1)
Notification and the court may make successive awards at various times.
Compensation given in the respective awards may vary and may be higher E
than the one given in an earliest award. In the teeth of the express language
in sub-s.(1) of s.28-A, limitation of three months once expires in respect of
earliest award by efflux of time, none of the later awards could provide any
assistance to revive the lapsed time under s.28-A(l) nor provide fresh cause ·
of action or successive causes of action when multiple awards are made at
F
different times or dates. Application under s.28A(l) may be made at the
instance of the self-same person or different persons. Any other interpreta-
tion would amount to re-writing the proviso to sub-s.(1) of s.28A. The
judgment and decree of the Court of appeal either under s.54 or under s.96
of CFC or under Articles 132, 133 or 136 of the Constitution does not
furnish fresh cause of action nor provide fresh limitation to make applica- G
tion under s.28-A(l) of the Act as has already been held in that they are
not covered under Part III of the Act. May be that they are continuation
of original decree made in s.26(2) and in law the executable decree is that
of the Supreme Court or the High Courts. But the legislature has conferred
•the right of reopening the award under s.11 only when the civil court under H
170 SUPREME COURT REPORTS (1994] SUPP. 4 S.C.R.
A s.26 awarded higher compensation in Part III to a person having an interest
in the land covered by the same Notification under s.4(1) and an applica-
tion ir. writing if made within limitation.
The next question is when the person aggrieved is entitled to invoke
B s.28A(l)? If an award under s.11 was made prior to September 24, 1984
and reference made thereon under s.18 was decided either before that date
or thereafter or if an award under s.11 was made after September 24, 1984
and the reference made thereon to court under s.18 was decided after that
date. At one point, we were inclined to agree that Section 28-A operates
from April 30, 1982, the date on which the first Land Acquisition (Amend-
C ment) Bill, 1982, was introduced in the Parliament but para 3 of the
Financial Memorandum made it explicit that the original Bill did not
contain Section 28-A. On a review, Section 28-A was introduced for the
first time in 1984 Bill. Admittedly, the Amendment Act 68 of 1984 has
come into force on September 24, 1984. Section 28-A was not given
D retrospective effect unlike section 34 of the Act, as amended by Section 20
of the Amendment Act. Section 30(3) of the Amendment Act gives
retrospective effect to s.34 to award interest in any proceedings, at any
stage, of determining computation as provided in clauses (a) and (b) of
s.30(3) of Amendment Act. By operation of s.30(1) of the Amendment Act
s.23(1-A) was given prospective operation under s.30(1) (a) and limited
E retrospective operation as transitional provision and confined the right to
interest therein to the award of the Collector pending on April 30, 1982
and made before the commencement of the Amendment Act or the civil
court covered by s.30(1)(b). In these cases we are not concerned with the
interpretation of s.23(1-A) read with s.30(1) of the Act. So it is unnecessary
F to. enter into elaborate discussion. In Union of India v. Raghubir Singh
(Dead) by Lrs. etc., (1989] 2 SCC 754, construing the wide language in
Sub-section (2) of Section 30 of the Amendment Act, this Court held that
the enhanced solatium by 30 per cent under Section 23(2) as amended by
Section 15(b) of the Amendment Act would apply to an award of the
Collector or a decree of the civil court pending between April 30, 1982 and
G September 24, 1984 and the High Court or the Supreme Court, in appeal
would award enhanced solatium or interest under Section 28 as amended
by Section 18 of the Amendment Act and does not apply to appeals
pending in the High Court or this court. In other words, despite the wide
language of Sub-section (2) of section 30 of the Amendment Act (Transi-
H tional Provisions), this Court had given restricted interpretation. This is the
BABUARAMv. STATE[K. RAMASWAMY,J.] 171
internal evidence available from the Amendment Act itself. A
Now we consider the external aid to get at the crux of the question.
When the language is not only plain but admits of but one meaning, the
task of interpretation can hardly be said to arise. Such language best
declares, without more, the intention of the legislature and is decisive on B
it. Therefore, when the language is clear and capable of only one meaning,
anything enacted by the legislature, must be enforced, even though it be
absurd or result in startling consequences. The endeavour, therefore, must
be to collect the meaniag of the statute from the expressions used therein
rather than from any notions which may be entertained by the court as to
what is just or expedient. When two interpretations are possible, the task C
of the Court would be to fi11d which one or the other interpretation would
promote the object of the statute, serves its purposes, preserve its smooth
working and prefer the one which subserves are promotes the object to the .
other which introduces inconvenience or uncertainty in the working of its
system.
D
The purpose of interpretation is, therefore, to ascertain the inten-
tions of the legislature and to make it effective. If the statute is ambiguous
or its meaning is uncertain, interpretation is resorted to for ascertaining
what the le~lature meant by the words in the statute, although they do
not express the legislative interest clearly and perfectly. In other words, if E
the statute is plain, certain and free from ambiguity, a bare reading of its
suffices and its interpretation can never arise. In discovering the legislative
intent, courts are not exercising legislative power but apply the rules of
common ·sense applying certain legal principles.
F
Sub-s.(1) of s.28A reads that where an award under this part, the
court allows to the applicant any amount of compensation in excess of the
amount awarded by the. Collector under s.11, the person interested in all
other lands covered by the same notification under s.4(1) and who are also
aggrieved by the award of the Collector may, notwithstanding that they had
not made an application to the .Collector under s.18, by written application G
to the Collector within three months from the date of the award of the
Coun require that the amount of compensation payable to them may be
redetermined on the basis of the amount of the compensation awarded by
the Court. A person interested becomes aggrieved, when for other lands
covered by the same notification under s. 34(1) of the Ac~ the court awards H
172 SUPREME COURT REPORTS [1994] SUPP. 4 S.C.R.
A compensation in excess of the compensation awarded under s.11 to him for
his land and to others for their land. Such aggrieved persons who had not
made an application to the Collector under s.18 earlier becomes entitled
to invoke s.28-A. Therefore, the verb 'allows' indicates that the right to an
aggrieved person under s.28-A(l) arises only when the reference court
grants compensation in excess of the amount awarded under s.11 i.e. after
B
September 24, 1984. It is prospective in operation after the Act had come
into force. The amount "awarded" speaks of past tense. In other words
there must be an award in existence under s.26 made after the Amendment
Act come into force. The right and remedy to claim redetermination
accrues to an interested aggrieved persons after September 24, 1984. The
C proviso amplifies it when it speaks of exclusion of the time taken to obtain
copy of the award under s.26 till it is supplied, i.e. it operates in future. It
is, therefore, clear that s.28-A does not not apply to an award under s.26
made prior to September 24, 1984.
D Whether it would apply to pending reference made after September
24, 1984? The language is not unambiguous. Therefore, the need for its
interpretation to find the legislative intention arises. Section 28-A not only
provides right and remedy for redetermination of the compensation but
also prescribes limitation within which it could be availed of and the
procedure under s.28-A(2) to make to award. It also gives the further rights
E of reference by sub-s.(3). The procedural part thereof on reference under
s.28-A(3) is relegated to what is envisaged in ss.18 to 28. It is thereby a
complete Code in itself. The language of past tense to certain words and
present tense to certain words emphasised hereinbefore would appear to
indicate that s.28-A does operate prospectively. Having made s.30 of the
F Amendment Act (Transitional provisions) with retrospective effect some
without limitation, others with limited retrospectivity and the third confin-
ing only to the award of the Collector, and being aware of enacting s.28A,
legislature had not given to s.28-A retrospectivity. In other words s.28-A is
prospective in its operation.
G The question therefore, is under what circumstances the award under
s.11 is liable to reopen under s.28-A and redetermination is done? Normal-
ly the legislative purpose is to remedy some existing evil or to correct some
defect in existing law or to create a new right and remedy. Section 18 or
s.31 have not been amended. Non-availment of right of reference to claim
H higher compensation has been lost either by receiving compensation. from
BABUARAM v. STATE [K RAMASWAMY,J.] 173
the Collector without protest or failed to make an application within the A
prescribed limitation due to poverty, indigence or inarticulation. Without
suitably amending ss.18 and 31, s.28-A was enacted creating new rights and
remedies as a complete Code in itself.
Maxwell on the Interpretation of Statutes, 11 the Ed. at p.79, it is B
stated thus : -
"general words and phrases, therefore, however wide and com-
prehensive they may be in their literal sense, must, usually, be
construed as being limited to the actual objects of the Act. It would
be "perfectly monstrous' to construe the general words of the Act C
so as to alter the previous policy of the law. In construing the words
of an Act of Parliament we are justified in assuming the legislature
did not intend to go against the ordinary rules of law, unless the
language they have used obliges the court to come to the con-
clusion that they did so intend". Craies on Statute Law, 7th Ed. at D .
p.177, it is stated that but in some cases a limitation may be put
on the construction of the wide terms of a statute. At p.178 it is
stated that one of the safest guides to the construction of sweeping
general words, which it is difficult to apply in their full literal
sense, is to examine other words of like imi)ort in the same
instrument, and to see what limitations must be imposed on them. E
If it is found that a number of such expressio~ have to be subjected
to limitations or qualifications,. and that such limitations or
qualifications are of the same nature, that forms a strong argument
for subjecting the expression in dispute to a like limitation or
qualification. In Bennion's Statutory Interpretation at p.385, it is F
stated that however the true view is not that strict and liberal
construction are not themselves interpretative criteria They are
simply methods or techniques by which the court applies the
interpretative criteria. In statutory interpretation by Cross at p.145
in the chapter presumption against unclear changes in the law, it G
is stated that the name prescription against unclear changed in the
law goes back to the days when, by far, the greater proportion of
law was common law and statutes were, for the most part, thought
of as minor emendations of that law. In modern times it is possible
to make a traversity of the presumption by stating it in some such
form as that 11 it is to be presumed that a statute alters the common H
174 SUPREME COURT REPORTS [1994] SUPP. 4 S.C.R.
A law as little as possible." At p.146 it is stated that no useful purpose
would be served by multiplying examples, but it should be pointed
out that "the presumption applies to changes in statute law".
Craies on Statute Law, 7th Ed. at p.177, it is stated that but in some
cases a limitation may be put on the construction of the wide terms of a
B statute. At p.178 it is stated that one of the safest guides to the construction
of sweeping general words, which it is difficult to apply in their full literal
sense, is to examine other words of like import in the same instrument, and
to see what limitations mnst be imposed on them. If it is found that a
number of such expressions have to be subjected to limitation or qualifica-
C tions, and that such limitations or qualifications are of the same nature,
that forms a strong argument for subjecting the expression in dispute to a
like limitation or qualification. In Bennion's Statutory Interpretation at
p.385, it is stated that however the true view is not that strict and liberal
construction are in themselves interpretative criteria. They are simply
D methods or techniques by which the court applies the interpretative
criteria. In Statutory Interpretation by Cross at p.145 in the Chapter
presumption against unclear changes in the law, it is stated that the name
"prescription against unclear changed in the law" goes back to the days
when, by far, the greater proportion of law was common law and statutes
were, for the most part, thought of as minor emendations of that law. In
E modern times it is possible to make a travesty of the presumption by stating
it in some such form as that "it is to be presumed that a statute alters the
common law as little as possible." At p.146 it is stated that no useful
purpose would be served by multiplying examples, but it should be pointed
out that "the presumption applies to changes in statute law."
F
Crawford's Interpretation of Laws at p.277, quoting Dwarris from his
treatise it is stated that all new laws, though penned with the greatest of
technical skill and passed upon the fullest and most mature deliberation,
are considered as more or less obscure and equivocal until their meaning
be fixed and ascertained by a series of particular discussions and adjudica-
G tions. At p.283 it is stated that in ascertaining the legislative intent, where
a statute is susceptible to two or more interpretations, should surely be
accepted by the courts as constituting the one intended by the law-makers,
"which operates most equitably, justly and reasonably as determined by our
existing standards of proper conduct and by our conceptions of what is
H right and what is wrong, of what is just and what is unjust". At p.296 it is
BABUARAMv. STATE[K.RAMASWAMY,J.] 175
stated that at one time the doctrine of equitable construction was applied A
by the courts, but as such it has now been generally abandoned. By virtue
of this doctrine, the letter of the law might be disregarded and its
provisions extended to cases which were within the same mischief which
the law undertook to remedy, even though they were not expressly in-
cluded, or cases might be excepted from the statute, although covered by B
its terms, where they were not fairly included, on considerations of justice
and reason.
The construction or interpretation, must therefore, be construed with
reference to its intended purpose and the scope of meaning of the statute
must be determined by the language used therein. Necessary implications C
may be read into the statute. True implications, sense and spirit are as
much a part of the language which makes up the statute as the meanings
of the various words as a part of it. The statute must, therefore, be analysed
and expressed meaning ascertained. Whether liberal or strict construction
will b'e given depends largely upon a finding whether the given determinate D
was intended from the alternative part of the statute, the type and its
nature. Often in some statute if the same parts are subjected to different
types of construction, whether liberal or strict construction is a means by
which the scope of the statute is expounded or restricted in order to convey
the legislative meaning. According to Crawford, 'if that be the proper
position to be accorded to strict or liberal construction, it would make no E
difference whether statute involved was penal, criminal, remedial or in
derogation of any rights as a distinction based upon its classification would
then mean nothing." Strict or liberal construction, therefore, should be used
as a tool in the process of ascertaining the legislative intent when it is in
doubt. Otherwise they will have little or no value. This is a part of F
interpretive process assigned to the court as a subject to make the legisla-
tive intent, clear, effective and efficacious.
In Union of India &Anr. v. Raghubir Singh (Dead) by Lrs. etc., (1989]
2 SCC 754 at p.780 in para 32, the Constitution Bench, consideration the
scope of s.30(2) of the Amendment Act had applied restricted interpreta- G
tion to the words of width employed in s.30(2) holding that s.30(2) clearly
intended to refer to the awards made by the Collector or Court between
April 30, 1982 and September 24, 1984. In other words s.30(2) of the
Amendment Act extends the benefit of enhanced solatium to cases where
the award by the Collector or the Court is made between April 30, 1982 H
176 SUPREME COURT REPORTS (1994] SUPP. 4 S.C.R.
A and September 24, 1984 or to appeals arising from such awards and
decided by the High Court and the Supreme Court whether the decisions
of the High Court or the Supreme Court are rendered before September
24, 1984 or after that date. All that is material is that the award by the
Collector or by the Court should have been made between April 30, 1982
B end September 24, 1984. In para 33 at p.781 it was further elaborated that
the Amendment Act had not been made generally retrospective with effect
from any particular date, and such retrospectivity as appears is restricted
to certain areas covered by the Parent Act and must be discovered from
the specific terms of the provision concerned. Since it is necessary to spell
C out the degree of retrospectivity from the language of the relevant provision
itself, close attention must be paid to the provisions of s.30(2) for deter-
mining the scope of retrospective relief intended by Parliament in the
matter of enhanced solatium." As stated earlier the Constitution Bench had
given restricted interpretation and cut down the width of the language of
s.30(2) to be in conformity with the legislative intent. In Nyadar Singh v.
D Union of India & Ors., (1988] 4 SCC 170 at 179, this Court held that even
though the statute itself may not use in limiting language the interpretative
factors, relevant to the provision may impose such a limitation. In
Maharashtra State Financial Corporation v. Jaycee Drugs and Pharmaceuti-
cals Pvt. Ltd. & Ors., (1991] 2 SCC 637 at 666-68, this Court held that
E legislature does not effect a fundamental alteration in general system or
policy of law without expressing such intention with irresistible clearness.
In State of Orissa & ors. v. Sukanti Mohapatra & Ors., (1993] 2 SCC 486 in
para (a), it was held that rules of relaxation should be construed strictly.
InA.C. Shanna v. Delhi Administration, (1973] 3 SCR 477 at 483, this Court
F held that the legislature does not intend to make any substantial alternation
in the existing law beyond what it expressly declares or beyond the mini-
mum scope and object of the statute. In D.S. Nakara v. Union of India,
(1983] 1 SCC 305 relied on by Shri Salve, and followed in D.C.M. Ltd. v.
Union of India, (1983] 4 sec 166 at 193 that a statute is not properly called
G a retroactive statute because a part of the requisites for its action is drawn
from a time antecedent to its passing. So it was held that the statute is not
retroactive in operation. A statute is not retroactive merely because it
affects existing rights no~ it is retroactive merely because a part of the
requisites for 'its action is drawn from the time anticident to its passing.
However, in KS. Paripooman v. State of Kera/a, S.L.P. (Civil) No.5514-
H
BABUARAMv. STATE [K. RAMASWAMY, J.] 177
17/90 etc., dated September 12, 1994, a Constitution Bench per majority A
interpreting s.23(1A) and s.30 of Transitory Provisions and the Scheme of
the Amendment Act held that s.23(1A) does not apply to the award of the
Collector or Civil Court made prior to April 30, 1982 and restricted to the
cases covered by ss.30(1)(a) and (b). In other words it again reiterated the
restricted interpretation given in Raghubir Singh's case. B
At this juncture, it is necessary to dispose of yet other contention
argoed on behalf of the States that s.28-A is only a transitional provision
applicable to pending cases only. After the Amendment Act has come into
force the legislature did not intend to provide remedy of reference under
s.28-A to the unsuccessful person at the first instance when one or several C
claimants had reference and become successful to get higher compensation
by ways of second remedy of reopening the concluded award that had
become final upsetting budgetary estimates to large projects so as to throw
the economy out of gear and create uncertainty. There would thus be no
finality to an award under s.11. The interpretation, therefore, should lean D
in favour of the construction that s.28-A be treated as transitional
provision. Otherwise s.28-A itself would be violative of Article 14. The
contention is not well-founded. Section 30 of the Amendment Act expressly
treated differently the provision contained therein and the operation of the
Amendment Act in its application to be transitional provisions as the
marginal note thereof itself clearly stated as such. Had the legislature E
intended to treat s.28-A also as a transitional provision, nothing prevented
the legislature to expressly state so. The omission thereof by necessary
implication leads to the conclusion that the legislature did not intend that
s.28-A to be a transitional provision. The langoage in which s.28A is
couched would indicate that it was intended to operate in perpetuity. It is F
true that reopening an award made under s.11 after the Amendment Act
came into force would unsettle the finality of s.11 award and the budgetary
estimates made for acquisition get upset but the legislature being the giver
of the law, has chosen.to give prospective operation and the consequences
that would flow from the operation of s.28-A are inescapable. The court
while interpreting s.28-A, cannot avoid to give effect to the consequences G
that would flow from the operation of s.28-A. It is for the parliament to
remedy the situation, if situation not intended by it is brought about by the
legislation.
Thns considered from the internal and external aids of interpretation, H
178 SUPREME COURT REPORTS [1994] SUPP. 4 S.C.R.
A we are of the view that an award made under s.11 is final and cannot be
reopened by having recourse to s.28A if an award was made under s.26 on
reference under s.18 before Sept. 24, 1984. Therefore, if an owner of the
land or person interested in compensation of the land acquired by the
same Notification under s.4(1) had not sought reference under s.18 in
respect to an award made under s.11 by the Collector/L.A.0., but if on a
B reference made under s.18 prior to Sept.24, 1984 in respect of land covered
by the same notification any award made under s.26, prior to the Amend-
ment Act had come into force, the award under s.11 is not liable to be
reopened for redetermination of compensation even though three months'
period had not expired by September 24, 1984 for to hold otherwise would
c amount to giving retrospective operation to s.28-A. Any other non-
protester claim will not be entitled to get an award reopened under s.11
though on reference at the instance of one or other of the owner or
interested person had the benefit -0f determination of higher compensation
by an award made under s.26 before Sept. 24, 1984 on his reference under
D s.12 made prior to Sept. 24, 1984. An award under s.11 made prior to Sept.
24, 1984 and a reference under s.18 sought and secured was pending in the
civil court on September 24, 1988 an Civil Court determines higher wm-
pensation on or after Sept. 24, 1984, persons interested in other land
covered by the same Notification under s.4(1), would be entitled to make
an application/applications in writing to the Collector to redetermine the
E compensation and to make an award under s.28A(2) on the basis of the
award and decree under s.26. It would be so, for that would not amounts
to retrospective reopening of an award made under s.11 but drawing
antecedents facts from a pending reference for giving effect to the prospec-
tive operation of the provisions in s.28-A(l) consistent with the language
as explained earlier and the subject of the amendment.
F
The next question is at whose instance and in what circumstances an
award under s.11 would be reopened consequent on the court enhancing
the compensation in a reference under s.18. A deep into provisions in
sub-s.(1) of s.4 and onwards upto the making of the award of the court
G under s.26, would furnish us the clue for answering the question. Section
4(1) Notification gives the right to the State to propose acquisition of the
lands for the specified public purpose and enables its officers to enter upon
land and take measurements, draw up the map take other particulars
required by them. Section 6 declatation or successive declarations are
H conclusive evidence that particular land is needed for the public purpose
BABUARAMv. STATE [K RAMASWAMY,J.] 179
and the appropriate government becomes entitled to acquire the land in A
the manner provided in the Act. The award under s.11(1) require specific
number of "the respective interests of person claiming compensation
(pursuant to their statement under s.10) indicating (i) the true area of the
land; (ii) the compensation which in his opinion should be allowed for the
land; (iii) the apportionment of the said compensation among all the B
persons known or believed to be interested in the land, whether they were
represented or appeared before the Collector or not. On receiving the
compensation under protest and making the application within the
prescribed period of limitation, the interested person should specify the
nature of his objections whether (a) to the measurement of the land (b)
the amount of compensation (c) the persons to whom it is payable or ( d) c
the apportionment or the compensation among the persons interested
made by the Collector. On receipt of the objection/objections, the Collec-
tor by operation of s.19, make the reference to the court furnishing the
information in writing to the court of the circumstances enumerated in
clauses (a) to (d) of sub-s.(1) of s.19 together with the Schedule attached D
thereto under sub-s.(2) thereof. Under s.20, the notice to be issued to the
person interested, other than non-protesters to specify the date on which
the court will proceed to detennine the objection specified in s.21. The
notice shall be served on all persons interested in the objection-vide
s.20(b), if the objection relates to the area of the land or to the amount of
compensation, the notice also shall be served on the Collector. Section 21 E
expressly restricts the scope of the proceedings and consideration of the
interest of the persons affected only to the extent of "objection" and the
determination is restricted to those objects only. If the objections relate .to
'determination of compensation' ·and the civil court enhances compensa-
tion, on the basis of excess compensation awarded under s.26, the other F
person interested in other lands covered by the same Notification, are
entitled to the award under s.28-A(l) and (2). If it relates to any other
objections, s.28-A becomes inapplicable and, therefore, the award of the
Collector under s.11, unless properly challenged, by a reference under s.18
should not be reopened.
G
As regards claim for higher compensation, subs-(1) of s.28-A en-
visages the awarding of higher compensation by the court on reference
under s.18 in excess of the amount awarded under s.11 by the Collector.
The aggrieved person must be the person interested in all other lands
covered by the same Notification of s.4(1) and.the amount of the compen- H
180 SUPREME COURT REPORTS [1994] SUPP. 4 S.C.R.
A sation determined by the court is relatable to the land similarly situated,
possessed of the same value or potentialities etc. Despite their failure to
seek and secure reference under s.18, they became entitled to make an
application in writing to the Collector within the prescribed three months'
limitation. Therefore, any other non-applicant is not entitled to the benefit
of the award of the Collector made on redetermination under sub- s.(1) of
B S.28-A. The contention of B.D. Aggrawal, learned counsel for the
claimants, that all persons despite their failure to make an applications for
redetermination of the compensation, are entitled to compensation under
the redetermined award under sub- s.(l) of s.28-A, is without substance. It
is accordingly rejected. Sub-s.(1) of s.28-A would apply only to a person
c who had failed to seek and secure reference under s.18 when one or other
persons similarly interested in the land covered under the same notification
published under s.4(1) received on reference under s.18 higher compensa-
tion in an award under s.26 and should make a written application under
s.28A(l). The Collector then is enjoined to redetermine the compensation
D in the manner laid in s.28(1) and to make an award under s.28-A(2).
The next question is whether an interested person who sought and
secured reference under s.18 but was either unsuccessful and filed no
appeal or had carried in appeal but unsuccessful, would be entitled to
redetermination when the compensation was enhanced by the appellate
E court either under s.54 or on further appeal under Articles 132, 133 and
136 of the Constitution. In Mewa Ram's case, this Court held in paragraph
5 that s.28-A provides for the determination of amount of compensation
subject to the conditions laid down therein are fulfilled. For such redeter-
mination, the forum is the Collector and the application has to be made
F before him within 30 days from the date of the award under s.26 and the
right is restricted to persons who had applied for reference under s.18 of
the Act. If these conditions are satisfied, the petitioner could have availed
of the remedy provided under s.28-A of the Act. In Scheduled Caste Co-
operative Land Owning Society, Batinda v. Union of India and Ors., [1991)
1SCC174, this Court held that "it is obvious on a plain reading of sub-s.(1)
G s.28-A that it applies to only to those claimants who had failed to seek
reference under s.18 of the Act. The redetermination has to be done by
the Collector on the basis of the compensation awarded by the Court. In
the reference under s.18 of the Act, an application in that behalf has to be
made to the Collector within 30 days from the date of the award. Thus only
H those claimants who had failed to apply under s.18 are conferred with the
BABUARAMv. STATE [K. RAMASWAMY,J.] 181
right to apply to the Collector for redetermination and not all those like A
the petitioners who had not only sought a reference under s.18 but had also
filed an appeal in the High Court'. This is also clear from a reading of the
scheme of the Act in Part II and III and in particular the self-contained
Code in s.28·A. It is already held that an interested person who received
compensation without protest becomes an aggrieved person when another B
person interested in ihe land covered by the same Notification under s.4(1)
gets higher compensation for his land from the Civil Court. By. operation
of the non-obstante clause within s.28A(l), the embargo created by s.18(1)
and the second proviso to sub·s. (2) of s.31 is lifted and he has been given
the right and remedy under s.28-A. But a person who received compensa· C
tion under protest and sought and secured a reference but was unsuccessful
or partially successful, does· come within the embargo· created by s.18(1)
and the second proviso to sub-s. (2) of s.31 and the non-obstante clause in
s.28A(1) does not relieve him from it. Legislature made a discriminatory
policy between the poor and inarticulate as one class of person to whom
the benefit of s.28-A was to be extended and comparatively affluent who D
had taken advantage of the reference under s.18 and the latter as a class
to which the benefit of s.28-A was not extended. Otherwise, the pharageol-
ogy of the language of the non-obstante clause would have been differently
worded, i.e. "notwithstanding that they had not made in application to the
Collector under s.18 or an appeal under s.54 or under Articles 132, 133, E
136 or unsuccessful etc.". Such is not the language. Transitional Provisions
of s.30 of the Amendment Act itself discriminates among claimants, in
payment of solatium in whose favour award was made by the Collector or
court etc., as has already been made clear while dealing with the effect of
sub-ss. (1) to (3) of s.30 in the earlier part of the judgment obviating the
need for reiteration. The Parliament thereby made discrimination in pay·
F
ment of compensation to persons though similarly situated t\l varied
benefits of Amendment Act. Even payment of compensation under s.23(1)
is varied, based on same quality of the land capable to fetch same price or
the value of the land situated in close proximity and payment of market
value is not uniform. The doctrine of res judicata under s.11 of C.P.C. G
operates against such persons. Having pursued the remedy in a competent
civil court and allowed the decree under s.26 or under s.54, to become
final, it binds the parties and the State and operates as res judicata and he
or they cannot fall back upon the right and remedy under. sub-s.(1) of
s.28-A as the public policy envisaged is that such a party cannot agitate his H
182 SUPREME COURT REPORTS [1994] SUPP. 4 S.C.R.
A right twice over. Sub-section (1) of s.28-A, therefore, by the non obstante
clause made available the right and remedy to the poor and inarticulate
persons interested in other lands covered by the same Notification under
s.4(1) and made no application under s.18 to avail the right and remedy
under s.28-(1). But those who sought and secured reference under s.18 be
the poor or others, and failed before the civil court or in appeal under
B
s.54 or under Article 136 etc., the right and remedy provided by s.28A(l)
is not available to him/them. In other words, the operation of s.28-A is
confined to the award made in Part III only and not to the judgment or
decree of the High Court or the appellate court under s.54 or of this court
under Article 132, 133 or 136 of the Constitution. Therefore, the unsuc-
c cessful interested persons who sought and failed in the reference under
s.18 or in appeal under s.54 or under Article 136 etc., are not persons
aggrieved under sub-s.(1) of s. 28-A, when other similar person had higher
compensation by pursuing that remedy. Therefore, he or they, though
interested in the land covered by the same Notification under s.4(1), are
D not entitled to make an application/applications for redetermination under
sub-s.(1) s.28-A.
The next question is whether the denial of such right and remedy
under sub-s.(1) of s.28-A violates Art. 14 of the Constitution. It is true that
the legislature intended to relieve hardship to the poor, indigent and
E inarticulate interested persons who generally failed to avail the reference
under s.18 which is an existing bar and to remedy it, s.28-A was enacted
giving right and remedy for redetermination, when another person had got
higher compensation under s.26 in excess of the compensation awarded
under s.11. In other words, the statute makes him to be conscious of his
_F right even though the presumption that everyone knows law goes against
him and failed to avail the right and remedy under s.18. Yet s.28-A gives
the self-same relief. The class of similar persons who availed the right and
remedy but were unsuccessful are treated as a distinct class. It by no means
be said to be arbitrary as the classification is based on intelligible differen-
G tia and bears reasonable relation to the object of according an another .
opportunity. The legislature appears to have presumed that the same state
of affairs continue to subsist among the poor and inarticulate persons and
they generally fail to avail the right under sub-s.(1) of s.18 due to poverty
or ignorance or avoidance of expropriation. It is already seen that the
Parliament made conscious discrimination between the poor and inarticu-
H late as a class and comparatively affluent as another class and conferred
BABUARAMv. STATE(K. RAMASWAMY,J.] 183
the rights under s.28-A in favour of the former. Discrimination is writ large A
in s.30 of Transitional Provisions of Amendment Act which provided
payment of solatium and additional compensation covered by different
situations, though the persons interested are same class. Section 28A is jnst
and fair and does not violate Art.14. The procedure, therefore, is just and
fair and does not violate Art.21.
B
However,. with a view to avoiding uncertainty and fluctuation, it
would be appropriate that, the Collector, while paying compensation under
s.31 should explain in vernacular language of the claimant, informing all
persons interested in the compensation that they have a right to protest
against the compensation determined under s.11 before receiving the same; C
has right to seek reference in writing under s.18 to the civil court and that
the application should be made expressing the specific objections in writing
within the limitation prescribed under s.18. In case of his failure to avail of .
the same, he would not be entitled to further right and remedy to seek
higher compensation. In case the claimant to be illiterate, it should be D
properly explained to him in his mother tongue. The statement made in
this behalf by the collector should be in the mother tongue of the claimant.
The Collector should append a certificate that it was truly, correctly and
properly explained and obtain the signature or thumb impression in token
thereof and 'this should be kept as part of the record of the award
proceedings. He should also maintain a regular register in his office in the E
serietum duly signed by him and sealed and be kept in the personal custody
of the Collector. This would not only obviate the hardship to the interested
persons but also prevent corrupt practices in fabricating the applications
for reference after the bar of limitation. In this behalf, it is also necessary
that the Collector/L.A.0. should also maintain another register for receipt F
of the applications under s.28-A indicating the date of its receip~ seal of
the office and personal signature of the Collector/L.A.0. concerned and
the receipt thereof duly communicated to the government or the authorised·
officer in proviso to s.11 of the Act.
The next question is .whether the Collector/L.A.0. on receipt of the G
application under sub-s.(1) of s. 28-A is bound to redetermine the com-
pensation while the award and decree under s.26 is pending consideration
in the appeal iij the High Court or appellate forum. If he does so, whether
award under s.28-A(2) is illegal? It is settled law that the decree of the trial
Court gets merged in the decree of the appellate court which alone is H
184 SUPREME COURT REPORTS [1994) SUPP. 4 S.C.R.
A executable. The finality of the determination of the compensation is at-
tained with the decree of the appellate forum, be it the High Court or this
Court. Take for instance that 'A', 'B' and 'C' are interested persons in the
land notified under s.4(1) and the compensation determined in the award
under s.11 'A' received the compensation without protest. 'B' and 'C'
received the compensation under s.31 under protest and sought and
B
secured reference under s.18. The court enhanced the compensation from
the Collector's award of Rs.10,000 to Rs.20,000. 'B' did not file appeal
under s.54 while 'C' filed the appeal. The High Court, suppose, further
enhances the compensation to Rs. 25,000 or reduces the compensation to
Rs. 15,000 per acre. 'A' is a person aggrieved only to the extent of the
c excess amount awarded either by the award and decree of the court under
s.26 but he will not get the enhancement of further sum of Rs. 5,000 granted
by the High Court in favour of 'C'. The decree of the High Court is the
executable decree made in favour of 'C'. Unless redetermination is kept
back till the appeal by the High Court is disposed of incongruity would
D emerge. Suppose the State filed appeal in this Court under Article 136
against the High Court decree and this court confirms the award of the
Collector and sets aside the decree of civil court under s.26 and of the High
Court under s.54. There is nothing left for redetermination. With a view to
save 'A', or 'B' or the State from the consequences of such incongruous
E situations, the Collector/ L.A.0. should stay his hands in the matter of
redetermination of compensation till the appeal is finally disposed of and
he should redetermine the compensation only on the basis of the final
judgment and decree of the appellate forum. Adoption of such course,
would not merely avoid the chance element in the claimants getting the
amounts of redetermined compensation but also avoids needless burden
F on public exchequer. As soon as the award of the civil court is carried in
appeal, it becomes obligatory for the collector to keep the application/ap-
plications for redetermination of compensation filed within limitation
pending awaiting decision by the appellate forum and to redetermine the
compensation on the basis of the final judgment and decree. Normally, the
G L.A.0. would file the appeal against the enhanced compensation in a
decree of either the civil court or the High Court and will know their
pendency. In the case appeal filed by the interested persons, the latter
should inform the Collector/L.A.0. of the pendency of appeal or otherwise
comes to know of it should keep the applications for redetermination,
H received under sub-s.(1) of s.28-A within limitation pendi~g, awaiting the
BABUARAMv. STATE[K.RAMASWAMY,J.] 185
decision by the appellate court. Before proceeding with the determination, A
he should obtain an affidavit from the party making the application under
s.28A that no appeal against the award made under s.26 relied upon by
him was filed or if had been filed was disposed of by the appellate court
and to produce the certified copy of decree and judgment, if already is
disposed of.
B
Smt. K. Amareshwari, learned senior counsel appearing for the
Union, contended that the beneficiary is a person interested under sub-
s.(2) of s.28-A read with s.18 of the Act. An award when made by the
Collector under sub-s.(2) of s.28-A redetermining the compensation, the
appellant beneficiary, had not accepted the award and that, therefore, a C
reference under s.28-A(3) read with s.18 was sought for and the Collector
has illegally rejected it. When civil revision was filed, the High Court
committed grievous error of law or jurisdiction in rejecting the revisions.
According to her, the award made under s.11 was with the prior approval
of the appropriate government or the authorised officer, while the award D
under s.28-A(2) was without their approval. It was reopened in conse-
quence to the award and decree of the court under s.26 against which the
appellant being an interested person carried in appeal and the appeal is
pending. The award under sub-s.(2) of s.28-A was not acceptable to the
appellant and that, therefore, the appellant is an interested person to seek
reference to assail the correctness of the award of the Collector. The E
statutory change of the effect of the award under s.28-A(2) clothes the
appellant with the right to seek reference under sub-s.(3) of s.28-A. The
contention was forcibly resisted by the counsel for the respondent cpntend-
ing that the award under s.11 is an offer made on behalf of the State. The
appellant a beneficiary is bound by the offer made by the Collector on
behalf of the beneficiary. The right to seek reference arises when the F
claimant does not accept the award and receives compensation under
protest. The acceptance of the award without protest concludes the
proceedings and binds the claimants. The non-acceptance keeps the award
at large, subject to determination of compensation, on reference, under
s.18 by the court, which alone is a decision and a decree which would bind G
the claimant as well as the State. Against that decision, an interested
person, i.e. the claimant as well as the beneficiary are given the right to file
appeal against the decree and award under s.26 but that does not clothe
either the State or the beneficiary to seek a reference under s.18. Though
the Collector and the High Court had not considered the case from this
perspective, for these reasons, the case does not warrant interference. H
186 SUPREME COURT REPORTS [1994) SUPP. 4 S.C.R.
A Having given our anxious consideration to the respective contentions,
we are of the view that the respondents are right in their contention. Award
under dl is only an offer made by the Collector on behalf of the State
and the State is bound by the offer. If the offer is accepted without protest
and the claimant receives the compensation under s.31, the proceedings
get concluded and no further steps need be taken under the Act. The
B claimant, if receives the compensation under protest and makes an applica-
tion under s.18 in the prescribed manner within the limitation, the Collec-
tor is enjoined to refer the objection under s.18 to the court and the
controversy would be at large, subject to determination by the Court. The
decision of the court is an award and decree under s.26 and is conclusive
C between the parties subject to appeal under s.54 etc. Thereby the deter-
mination of the compensation under s.26 even without acceptance binds
the parties. The offer of the Collector being on behalf of the State and the
beneficiary, the State does not get the right to seek a reference under s.18
against the award of the Collector. The beneficiary is only an interested
person to adduce evidence in determining proper compensation. However,
D the Collector/L.A.O. is its/his agent and the acts of the agent binds the
principal-beneficiary. The beneficiary does not stand on a higher footing
than the State. This should not be understood to mean that the beneficiary
has no right to appeal under s.54 against the award made under s.26 or
further right to question the decree made in appeal before this court.
E No doubt s.28-A(2) speaks of interested persons and s.28-A{l) of
person aggrieved. As interpreted by this court of the said expressions, the
beneficiary is also an interested person to see that proper compensation is
determined by the court, gets right to hearing before award is made and
to carry in appeal under s.54 and has a right to appear before the Collector
F during award inquiry which right is only limited to participation in the
inquiry and to adduce evidence or to file an appeal to determine just and
proper compensation for the lands under acquisition. Sub-section (2) of
s.28-A equally gives right of an opportunity of hearing to an interested
person in the inquiry under s.28- A{l). The State and the beneficiary are
persons interested in determination of just and proper compensation.
G However, acceptance of the award under sub-s.(3) appears to us to be, an
acceptance by the claimant and not by the beneficiary or the State, as the
Collector acts on their behalf as an agent. It is true that the award under
s.11 was made with prior approval of the State Government or its
auihorised officer and that limitation expressly was not laid in s.28-A(2)
H but the legal effect does not get altered by virtue of the above distinction
BABUARAMv. STATE[K.RAMASWAMY,J.] 187
or omission in s.29-A(2). The participation in the proceedings and right to A
an opportunity of hearing including the right to adduce evidence by the
beneficiary though the normal parlance carries with it the right to an
appeal, in view of the scheme and the language of s.11 under s.28-A(2)
does not clothe the beneficiary with a right to seek reference when he does
not have such a right under s.18. The award of the Collector under B
sub-s.(2) of s.28-A though as a post s.11 stage, nonetheless, the award
under s.28- A(2) is award and partakes the same character as an offer and
not a decision. Therefore, if the applicant accepts the award, the award
becomes complete and acceptance brings the proceedings under s.28-A(l)
to a terminus and the award binds the claimant and the Collector. On non
acceptance and seeking a reference under s.28-A(3), the award made C
under s.28-A(2) is at large subject to the decision by the court by applica-
tion of ss.18 to 26 as is envisaged in s.28-A(3) itself. Section 2A of the local
amendment made by the Haryana State Legislature adopting the Amend-
ment made by the legislature of the Himachal Pradesh, manifests that
despite the offer made by the Collector under s.11, the State is entitled to D
·seek reference under s.18 but the sub-s.(2) expressly excludes the right of
reference under s.18 to the Union when the land was acqnired on behalf
of the Union of India. Thereby it is clear that the right to such reference
under s.28-A(3) by the beneficiary does not arise and stands excluded.
Though not apposite, but we can have a clue from s.50 of the Act which
prohibits reference at the behest of the beneficiary when the acquisition E
was made on behalf of a local authority or a company. It is true that there
arises an anomalous situation when an award is made under s.28-A(2) the
Collector may award compensation in excess of the amount given under
s.26, while the claimant was provided with remedy under s.23(3), ·the
beneficiary or the State are left with no remedy under the Act However, F
the Collector being an authority under the Act, the award of the Collector
made under s.28A is not totally immune from jurisdiction of the High Court
under Articles 226 and 227 of the Constitution, if required to be challenged
by the State or the beneficiary, who have no other legal remedy in the
matter.
G
•
Thus considered, we are of the view that the beneficiary is not an
aggrieved person and the Collector/L.A.0. has no power to make, at the
instance of the beneficiary or the State to make a reference under sub-s.(3)
of s.28-A read with s.18 subject to local amendments as was done by
Haryana and the Himachal Pradesh Legislatures. This factor may be an H
188 SUPREME COURT REPORTS [1994] SUPP. 4 S.C.R.
A additional reason for the Collector to await the decision of the High Court
or of this Court, when the award of the Court under s.26 was carried in
appeal under s.54 or the latter under Article 136. Pending decision, he
should stay his hands and take up the matter only after the decision is
rendered by the High Court or by this Court. Yet, in view of the local
amendments to the Act like that made by Haryana Legislature, the State
B may seek reference under s.28-A(3), since s.18 gets attracted by operation
of sub-s(2)-A of s.18 of Haryana local amendment. When the land was
acquired for and on behalf of the State, it becomes also entitled to a
reference under s.28-A(3) and all the provisions of ss.18 to 28 shall apply
to such a reference.
c
After becoming aware of the introduction of s.28-A, it would appear
that several antedated applications under s.28-A or s.18 were made to use
the award made under s.26 to get the benefit of s.28-A. Therefore, applica-
tions made under s.28-A create a doubt whether the award made nnder
s.26 which forms the basis for snch application had been secured on an
D antedated or frandulent application purported to have been made under
s.18, it shall be open to the State to have the matter thoroughly examined
by an officer of the status of the District Collector/Commissioner Jo find
the truth and such officer if one enquiry made with reference to the
relevant records, finds that the applications under s.28A(l) are genuine
and was/were made within limitation or the award under s.26 is founded
E
on genuine application made on reference under s.18 within limitation. He
would cause proper enquiry made so that the benefit of the award under
s.26 may become unavailable for such spurious applicants who fraudulently
or collusively made application under s.28-A. However, it has to be remem-
bered by the Collector/L.A.O. deciding s.28A application that the compen-
F sation for land given in the award under s.26 or judgment in appeal should
form the basis of redetermination of compensation for the applicants' land;
the same amount of compensation need not be given where there are
differences in nature and quality and situation of the comparable land.
In the light of the above findings, our conclusion in each appeal/ap-
G peal on their facts, would be as under :
In Babua Ram's case, though we hold that the appellants are persons ·
aggrieved within the meaning of sub-s.(1) of s.28-A to avail the right under
s.28-A(l) yet the High Court is right in directing that the Collector/L.A.O.
H ought to have awaited the decision of the High Court. After the receipt of
BABUARAM v. STATE [K. RAMASWAMY,J.] 189
the decision of the High Court, the Collector/L.A.O., after issuing notice A
to the respondents and giving reasonable opportunity of hearing should
enquire into (i) whether the application/applications was/were filed as
written application/applications satisfying the requisites of s.28A and within
limitation, and (ii) in case those findings recorded are in favour of the
applicants, still the Collector should decide .whether the applicants are B
persons interested in other lands covered by the same notification and the
award made by the Collector under s.11. He should, therefore, enquire into
the record findings in this behalf. In case, the Collector/L.A.O. records
findings in favour of the claimants then he should consider whether enhan-
cement of compensation can be made on the basis of the award under s.26
by the civil court or High Court and redetermine the same in accordance C
with law. If he records findings in favour of the claimant/claimants, he shall
make the award under sub-s.(2) of s.28-A and follow the procedure under·
s.28-A and the reievant provisions in Part III in that behalf. The order of
the High Court is set aside and writ petition is disposed of accordingly.
The appeals, therefore, are allowed subject to the above directions. D·
In Goa, Daman & Diu Industrial Devi. Corporation and State ap-
peals, though we uphold the order of the High Court in its findings that
the respondents are persons aggrieved, it is not the end of the journey. The
direction issued in the impugned judgment is set aside. The matter is
remitted to the Collector/L.A.O. He should issue notice to the applicant E
in each petition and give reasonable opportunity of being heard in per-
son/counsel. He should consider whether the written applications satisfy
the requirements of s.28A(1) and were, in fact, filed within the limitation.
Before proceeding as above, he should satisfy himself whether the award
under s.26 relied upon in support of th~ application made under s.28A, F
was not made on the basis of antedated or fraudulent application under
s.18 or the applications made under s.28A(l) are antedated or fraudulently
brought on record to claim the benefit under s.28(1). In case the findings
are in favour of the claimant/claimants, then it is not necessary that there
should be a second application, since the application already filed for G
redetermination of the compensation after the earlier award and decree of
the civil court under s.26 is sufficient compliance with the requirement of
s.28-A(l). On the basis of the judgment and decree of the High Court
which has become final i.e. later one, the Collector/L.A.0. should redeter-
mine the compensation taking into account .all the relevant facts and
circumstances enumerated in s.23 and s.28-A(l) and other related H
190 SUPREME COURT REPORTS [1994) SUPP. 4 S.C.R.
A provisions applicable to the facts.
In Union of India and connected appeals, though the appellants are
the person interested under sub-s.(2) of s.28-A for the purpose of enabling
them to adduce evidence in redetermination of the compensation, the Land
Acquisition Officer acted as an agent on behalf of the State as well as the
B beneficiary-Union of India. The appellant is bound by the offer made by
the Collector/L.A.O. Therefore, the question of their accepting the award
made under s.28-A(2) does not arise. It cannot seek reference under
s.28-A(3) or under s.18 of the Act. However, it would he open to the
appellant to challenge the correctness of the award made under s.28-A(2)
C in a writ petition under Articles 226 and 227. However, in view of our
finding that the Collector should await the final decision of the High Court
or of this court, the Collector/L.A.O. committed grievous error of law in
proceeding to make an award under s.28-A(Z). He should have awaited the
decision of the High Court in that pending appeal. The order of the High
D Court and that of the Collector are set aside. The cases are remitted to the
Collector to keep them back pending disposal of appeal by the High Court.
In case the decree of the High Court granting compen5ation is in excess
of the award of the Collector/L.A.O. under s.11, then the Collector should
enquire whether the application satisfy the requirements of s.28A and
whether the application had been properly made and within limitation. In
E case the finding/findings is/are in favour of the applicants, then he should
redetermine the compensation on the basis of the award under s.26, and
make the award under. s.28-A(2) and should follow the procedure
prescribed in Part III. Therefore, the orders of the Collector and that of
the High Court of Punjab & Haryana in revisions are set aside and the
Collector shall follow the procedure indicated hereinbefore and decree as
F
per the law and the judgment. Accordingly, the appeals are allowed.
All appeals in this judgment are disposed of accordingly and the
parties are directed to bear their own costs. The SLP Nos. 17268/93,
21652/93, 17164/93 and 1670/94 have been delinked and the Registry is
G directed to list these matters, separately, but immediately. •
U.R. Appeals disposed of.
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