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Supreme Court of India

BHARATSING S/O GULABSINGH JAKHAD & ORS.versusTHE STATE OF MAHARASHTRA & ORS.

Citation
2017 INSC 1218
Decided
12 December 2017
Disposal
Disposed off

Holding

The Collector must keep a Section 28A application pending until the appeal is finally disposed and decide based on the final judgment; only one application is allowed, but if the Collector acted prematurely, the earlier application may be reconsidered afresh.

Summary

The appellants sought re‑determination of compensation under Section 28A of the Land Acquisition Act, 1894, filing an application on 31‑12‑1992 based on a 1992 award. While the award was under appeal, the Land Acquisition Collector prematurely decided the application on 25‑10‑2000. After the High Court enhanced compensation in 2009, the appellants filed a second Section 28A application, which the High Court dismissed, holding that only one application is permissible. The Supreme Court held that although the principle of a single application stands, the Collector erred by deciding the first application while the appeal was pending; therefore the first application must be reconsidered afresh in light of the High Court’s judgment, and the second application remains non‑maintainable. The Court directed the Collector to set aside the 2000 order, re‑examine the 1992 application, and adjust any amounts already paid.

Issues considered

  • Whether a Section 28A application for re‑determination of compensation must be kept pending until an appeal against the underlying award is disposed.
  • Whether successive applications under Section 28A are permissible when the first application was decided while the award was under appeal.

Legislation cited

Subjects

Land acquisitionSection 28ACompensation re‑determinationPending appealSingle application ruleBeneficial provisionAward enhancement

Judgment

                           [2017] 14 S.C.R. 470


A        BHARATSING S/O GULABSINGH JAKHAD & ORS.
                                    v.
               THE STATE OF MAHARASHTRA & ORS.
                     (Civi!Appea!No.21792 of2017)
B                         DECEMBER 12, 2017
           [KURIAN JOSEPH AND R. BANUMATHI, JJ.)
         Land Acquisition Act, 1894:
        s. 28A - Re-determination of compensation amount on the
C basis of award of the Court - When the award, based on which re-
  determination is sought. is pending in appeal - Held: During
  pendency of the appeal, s. 28A application is required to he kept
  pending till the disposal of the appeals - In the present case. the
  Land Acquisition Collector wrongly decided application u!s. 28-A
D while the appeal was pending.
          Disposing of the appeal, the Court
          HELD: 1. Though there is no quarrel with the principle
    that only a single application is maintainable, in the instant case,
    the High Court omitted to take note of the fact that the appeals
E   on the relied on awards were pending when application u/s 28A
    of Land Acquisition Act, 1894 was decided. That is the special
    and distinctive factual position in the instant case. It must also
    be kept in mind that Section 28A is a beneficial provision. [Para
    16)(477-D-E]
F        2. Section 28A application based on the awards passed by
  Reference Court was decided when the appeals therefrom were
  pending. The Collector ought to have kept the application pending
  till the appeals were decided. On principle, the High Court is
  correct and justified in the view taken in the impugned judgment
  that there cannot be successive applications under Section 28A.
G No doubt, the second application dated 27.05.2009 for re-fixation
  in light of the appellate court judgment is not maintainable.
  However, since the Collector is also at fault in deciding the
  application when the matter was pending in appeal, in the peculiar
  facts of the instant case, the application dated 31.12.1992 should
H
                                    470
   BHARATSING S/O GULABSINGH JAKHAD v. STATE OF                         471
                  MAHARASHTRA

be considered afresh. Accordingly, the appeal is disposed of. The A
Land Acquisition Collector is directed to consider afresh the
Section 28A application dated 31.12.1992 and pass orders in the
light of the judgment of the High Court. [Para 17][477-E-H]
                                                    .
      Babua Ram and Ors. v. State of U.P. and Am: (1995) 2
      SCC 689 : [1994) 4 Suppl. SCR 148; U.P. State                     B
      Industrial Development Corpn. Ltd v. State of U.P. and
      Ors. (1995) 2 SCC 766 : [1994) 4 Suppl. SCR 581;
      Union of India v. Munshi Ram (Dead) By Lrs. and Ors.
      (2006) 4 SCC 538 : (2006) 2 SCR 816; Kendriya
      Karamchari Sehkari Grah Nirman Samiti Limited Naida
      v. State of Uttar Pradesh and Am: (2009) 1 SCC 754 :
                                                                        c
      (2008) 15 SCR 810 - relied on.
      Union of India and Anr. v. Pradeep Kumari and Ors.
      (1995) 2 SCC 736 : [1995) 2 SCR 703; Jose Antonio
      Cruz Dos R. Rodriguese and Anr. v. Land Acquisition
      Collector Union of India v. Munshi Ram (Dead) By                  D
      Lrs. and Ors. (1996) 6 SCC 746 : (1996) 8 Suppl. SCR
      910 - distinguished.
                        Case Law Reference
      (1994] 4 Suppl. SCR 148          relied on        Para9           E
      (1994) 4 Suppl. SCR 581          relied on        Para 10
      [2006) 2 SCR 816                 distinguished Para 11
      (1996) 8 Suppl. SCR 910          distinguished Para 12
      [1995) 2 SCR 703                  relied on       Para 13         F
      [2008) 15 SCR 810                relied on        Para 14
     CIVIL APPELLATE JURISDICTION: Civil Appeal No. 21792
of2017.
       From the Judgment and Order dated 13.08.2015 of the High Court   G
of Judicature at Bombay, Bench at Aurangabad in Writ Petition No. 309
of2015.
       M. Y. Deshmukh, Shakti Pandey, Sagar N. Pahune Patil, Advs.
for the Appellant.
                                                                        H
472            SUPREME COURT REPORTS                        [2017] 14 S.C.R.


A          Ajay K. Tyagi, Abhishek Sharma, Nishant Ramakantrao
      Katneshwarkar, Advs. for the Respondents.
            The Judgment of the Court was delivered by
            KURIAN, J. 1. Leave granted.
B           2. What is the course to be adopted by the Land Acquisition
      Collector under Section 28A of The Land Acquisition Act, I 894
      (hereinafter referred to as "the Act"), when the award based on which
      enhancement is sought is pending in appeal, is the issue arising for
      consideration in this case.
c       3. The Section 4(1) Notification was issued on 17.01.1974. The
  compensation was determined by the Land Acquisition Officer on
  04.06.1977. The appellants did not pursue the matter further under Section
  18 of the Act in Reference. However, other claimants of the lands
  covered by the same Section 4( l) Notification took up the matter further
  and the Reference Court allowed enhancement and fixed the land value
D at Rs.5,000/- per acre in the place of Rs.3,000/3,500 offered by the
  Land Acquisition Officer, as per the award dated 0 I. I 0.1992 in LAR
  Nos. 123 and 129of1983 on the file of the Second Additional District
  Judge, Aurangabad. The appellants filed an application on 31.12.1992
  under Section 28A of the Act seeking similar enhancement within the
E period of three months as required under Section 28A.
             4. While the application under Section 28A of the Act was pending,
      the award under LAR Nos. 123 and 129 of 1983 was challenged in
      appeals and there were also cross objections. The High Court disposed
      of these appeals by judgment dated 23.03.2009 granting compensation
 F    at the rate of Rs.18,000/- per acre.
          5. During the pendency of the appeal, it is seen that the Land
   ·Acquisition Collector passed an award dated25. l 0.2000 on the application
    filed by the appellants under Section 28A of the Act, awarding
    compensation at the rate of Rs.5,000/- per acre, as awarded in LAR
 G Nos. 123 and 129of1983 referred to above.
            6. On 27.05.2009, the appellants filed fresh applications under
      Section 28A for enhancement of compensation based on the judgment
      of the High Court dated 23.03.2009. They also approached the High
      Court praying for the Writ of Mandamus. By the impugned order, the

 H
   BHARATSING S/O GULABSINGH JAKHAD v. STATE OF                                  473
                  MAHARASHTRA

Writ Petition was dismissed holding that Section 28A of the Act permits          A
only one application, and successive applications as and when further
enhancement is made; are not permissible.
      7. Thus aggrieved, the present appeal.
      8. Section 28A of the Act which was inserted in 1984 reads as
follows:-                                                                        B

      "28A. Re-determination 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 excess of the amount awarded by the Collector
      under section 11, the persons interested in all the other land covered C
      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 from the date of the award of the Court require D
      that the amount of compensation payable to them may be re-
      determined on the basis of the amount of compensation awarded
      by the Court:
         Provided that in computing the period of three months within
       which an application to the Collector shall be made under this            E
       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 ~o all the persons
       interested and giving them a reasonable opportunity ofbeing heard,
                                                                                 F
       and make an award determining the amount of compensation
       payable to the applicants.
       (3) Any person who has not accepted the award under sub-
       section (2) may, by written application to the Collector, require
       that the matter be referred by the Collector for the determination        G
       of the Court and the provisions of sections 18 to 28 shall, so faras
       may be, apply to such reference as they apply to a reference
       under section 18."
      9. The nuances of Section 28A have been subject matter of various
decisions of this Court. In Babua Ram and others v. State of U.P.
                                                                                 H
474               SUPREME COURT REPORTS                            [2017] 14 S.C.R.


A and another 1, one of the questions considered by a two-judge Bench of
  this Court was whether the Collector/LAO on receipt of application
  under Section 28A (1) is bound to re-determine the compensation when
  the award is pending in appeal before the High Court or appellate
  forum. This Court, at paragraph- 39 held as follows-
B              "39. The next question is whether the Collector/LAO on receipt
               of the application under sub-section (1) of Section 28-A is bound
               to redetermine the compensation while the award and decree under
               Section 26 is pending consideration in the appeal in the High Court
               or appellate forum. Ifhe does so, whether award under Section
               28-A(2) is illegal? It is settled law that the decree of the trial court
c              gets merged in the decree of the appellate court which alone is
               executable. The finality of the determination of the compensation
               is attained 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 Section 4( 1) and the
D              compensation determined in the award under Section 11. 'A'
               received the compensation without protest. 'B' and 'C' received
               the compensation under Section 31 under protest and sought and
               secured reference under Section 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 Section 54 while 'C' filed the
E              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 excess amount awarded either by the award and decree of
               the court under Section 26 but he will not get the enhancement of
F              further sum of Rs 5000 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 emerge.
               Suppose the State filed appeal in this Court under Article 136
               against the High Court decree and this Court confirms the award
G              of the Collector and sets aside the decree of civil court under
               Section 26 and of the High Court under Section 54. There is nothing
               left for redetermination. With a view to save 'A' or 'B' or the
               State from the consequences of such incongruous situations, the
               Collector/LAO should stay his hands in the matter of
H     1
          (1995) 2 sec 689
    BHARATSING S/O GULABSINGH JAKHAD v. STATE OF                                          475
                   MAHARASHTRA

       redetermination of compensation till the appeal is finally disposed                A
       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 ofredetermined compensation but
       also avoids needless burden on public exchequer. As soon as the                    B
       award of the civil court is carried in appeal, it becomes obligatory
       for the Collector to keep the application/applications 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 .... "
      Babua Ram (supra), also dealt with the question as to when the
                                                                                          c
period of limitation of three months begins to run under Section 28A.
The Court held that the period of three months prescribed for application
under Section 28A has to be computed from the date of the first award.
       10. Soon after the decision in Babua Ram (supra), this Court in
U.P. State Industrial Development Corpn. Ltd v. State of U.P. D
and others2, reiterated Babua Ram (supra) to hold that since an appeal
preferred by the State against the award of the District Judge under
Section 26 was pending, the proper course would have been to keep the
application under Section 28A ( 1) pending till the appeal was disposed
0£                                                                      E
        11. In Union of India and another v. Pradeep Kumari and
others3, a three-judge Bench of this Court disagreed with Babua Ram
(supra) on the point that an application for redetermination of
compensation can be made only on the basis of the first award made
after coming into force of Section 28A. It was clarified that compensation F
under Section 28A could be availed of on the basis of any one of the
awards that has been made by the court after coming into force of
Section 28A provided that the application is made within the prescribed
period of three months from the making of the award on the basis of
which rel.determination is sought. This Court also laid down six conditions
for filing an application under Section 28A and the sixth condition is- G
"only one application can be moved under Section 28A for redetermination
of compensation by an applicant". 4
2
  (1995) 2 sec 766
, (1995) 2 sec 736
' The other five conditions are- l. The award has been made by the court under Part III
   after coming into force of Section 28A; 2. By the said award the amount of             H
   compensation
476              SUPREME COURT REPORTS                                [2017] 14 S.C.R.


A      · 12. Subsequently, in Jose Antonio Cruz Dos R. Rodriguese
  and another v. Land Acguisition Collector5, a three-Judge Bench of
  this Court explained the scheme of the Act and noted that Section 28A
  was under Part llI of the Act. Further, Section 2( d) of the Act defines
   'court' to mean principal Civil Court of original jurisdiction unless a special
B judicial officer is appointed. Therefore, this Court was of the opinion
  that in Section 28A the 'award' means an award under Part III and
   'court' can only mean the court to which reference is made by the
  Collector under Section 18. It was held that "the plain language of
   Section 28-A, therefore, prescribes the three months period oflimitation
  to be reckoned from the date of award by the Court disposing of the
C reference under Section 18, and not the appellate court dealing with the
  appeal against the award of the Reference Court".
           13 .. In Union of India v. Munshi Ram (Dead) By Lrs. and
  others 6, while dealing with a situation where the compensation awarded
  by the Reference Court was modified by the High Court and further
D modified by the Supreme Court in appeal, this Court held as follows at
  paragraph-9:
             "9. We hold that under Section 28-A of the Act, the compensation
             payable to the applicants is the same which is finally payable to
             those claimants who sought reference under Section 18 of the
             Act. In case of reduction of compensation by the superior courts,
 E           the applicants under Section 28-A may be directed to refund the
             excess amount received by them in the light of reduced
             compensation finally awarded."
                                                                  (Emphasis supplied)
 F           14. In Kendriya Karamchari Sehkari Grab Nirrnan Samiti
      Limited, Noida v. State of Uttar Pradesh and another 7, this Court
      held that in the facts of the case, the Collector was justified in not deciding
      the Section 28A application on account of pendency of an appeal before
      in excess of the amount awarded by the Collector under Section 11 has been allowed to
 G    the applicant in that reference; 3. The person moving the Section 28A application is
      interested in other land covered by the same Section 4 (I) notification to which the
      award related; 4. The person moving the application did not make an application under
      Section 18; 5. The application is moved within three months from the date of the award
      on the basis of which redetermination ofamount ofcompensation is sought.
       '(1996) 6 sec 746
       '(2006) 4 sec 538
 H     1
         (2009) 1 sec 754
    BHARATSING S/O GULABSINGH JAKHAD v. STATE OF                                   477
                   MAHARASHTRA

the High Court. In that case, the appellant had also challenged the A
Government Orders as per which the Collector could not have decided
the Section 28A application in case the order of the Reference Court
enhancing the compensation is challenged and the appeal is pending
before the High Court/Supreme Court. This Court, specifically held that
the Government Orders were in consonance with the law laid down in
                                                                        B
Babua Ram (supra).
       15. In the case of the appellants, when their Section 28A application
 was decided, based on awards in LAR Nos. 123 and 129 of 1983, the
 very same awards were pending in appeal before the High Court.
'However, the Collector proceeded to consider their application and
 decided the same on 25.10.2000. Thereafter, fresh application under               C
 Section 28A was filed on 27.05.2009 based on the judgment of the High
 Court dated 23.03.2009. It was this application that was held to be not
 maintainable, being a second application.
       16. Though there is no quarrel with the principle that only a single
application is maintainable, in the instant case, unfortunately, the High D
Court omitted to take note of the fact that the appeals on the relied on
awards were pending when the Section 28A application was decided.
That is the special and distinctive factual position in the instant case. It
must also be kept in mind that Section 28A is a beneficial provision.
          17. The Section 28A application dated 31.12.1992 based on the            E
 awards in LAR Nos. 123 and 129of1983 was decided on 25.10.2000
  when the appeals therefrom were pending. The Collector ought to have
  kept the application pending till the appeals were decided on 23.03.2009.
 On principle, the High Court is correct and justified in the view taken in
! the impugned judgment that there cannot be successive applications under         F
·Section 28A in view of Pradeep Kumari (supra). But that is not the
 point arising for consideration here. No doubt, the second application
  dated 27 .05.2009 for re-fixation in light of the appellate court judgment
  is not maintainable. However, since the Collector is also at fault in deciding
  the application when the matter was pending in appeal, we are of the
  view that in the peculiar facts of the instant case, the application dated       G
  31.12.1992 should be considered afresh. Accordingly, the appeal is
  disposed of as follows. The Land Acquisition Collector is directed to
  consider afresh the Section 28A application dated 31.12.1992 and pass
  orders in the light of the judgment of the High Court dated 23.03.2009 in
  First Appeal Nos.569 and 570 of 1997 on the file of the High Court of            H
478             SUPREME COURT REPORTS                   [2017) 14 S.C.R.


A Bombay, Bench atAurangabad. For enabling the Collector to pass orders
  as above, the orderdated25.10.2000 is set aside. However, the amounts
  already paid are to be duly adjusted.
          18. The orders as above shall be passed by the Land Acquisition
  Collector within three months from the date of presentation of a copy of
B this judgment by the appellants and the consequential benefits shall be
  disbursed to them within another one month.
             19. There shall be no order as to costs.


      Kalpana K. Tripathy                                  Appeal disposed of.


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