Holding

Only awardees who accepted the compensation under protest and filed a written application within the six‑month period prescribed by the proviso to Section 18(2) are entitled to a reference; those who accepted without protest or filed belatedly are barred, and an association cannot file reference applications under Section 18.

Summary

The Steel Authority of India Ltd. (SAIL) acquired land for a steel plant, awarding compensation to landholders; some accepted the award without protest, others accepted under protest and filed applications for reference under Section 18 of the Land Acquisition Act, 1894. The High Court directed the authorities to complete references for all awardees, including those who had accepted without protest or filed after the statutory period, prompting appeals by SAIL and the Tamil Nadu Housing Board. The Supreme Court examined whether acceptance without protest bars a reference, whether applications filed beyond the six‑month limitation are maintainable, and whether an association can file reference applications on behalf of its members. It held that the provisions of Sections 18 and 31 must be read together, making the limitation period mandatory and limiting references to those who protested and filed within time; acceptance without protest extinguishes the right to reference, and the association lacks locus standi to file under Section 18. Consequently, SAIL's appeal was allowed, while the Housing Board's appeal was dismissed.

Issues considered

The right of awardees who accepted compensation without protest to seek reference under Section 18 of the Land Acquisition Act.
Whether applications for reference filed beyond the six‑month limitation period prescribed in the proviso to Section 18(2) are maintainable.
Whether a registered association can file reference applications on behalf of its members under Section 18.
The effect of a Collector’s promise to make a reference and the applicability of estoppel.
The applicability of Section 5 of the Limitation Act, 1963 to the limitation period in Section 18(2).

Legislation cited

Land Acquisition Act, 1894s. 12, s. 18, s. 23, s. 28, s. 31, s. 34, s. 4, s. 50, s. 6, s. 7, s. 8, s. 9
Limitation Act, 1963s. 5

Subjects

Land AcquisitionCompensationSection 18Section 31LimitationAssociation standingEstoppelPurposive constructionStatutory interpretation

Judgment

[2009] 12 S.C.R. 929 .·.

MIS. STEEL AUTHORITY OF INDIA LTD. A
-\
v.
S.U.T.N.I. SANGAM & ORS.
(Civil Appeal No. 3874 of 2006 etc.)

• JULY 29, 2009
[S.B. SINHA AND CYRIAC JOSEPH, JJ.]
B

Land Acquisition Act, 1894:

ss. 18, 31 second proviso and 50 (2) - Acquisition of land c
- Compensation - Acceptance of, with and without protest by
different awardees - Reference for enhancement .of
compensation amount - Reference courl allowing the case

.
"'
-I
of the awardees who received the amount under protest -
Rejection of reference of the awardees who accepted the D
amount without protest and of those whose reference was filed
beyond statutory period - Writ petition by the Association of
land-holders - High Court directing the authorities to
complete process of reference - On appeal, held: The
awardees, who received compensation without any protest not
E
entitled to referencf! - An objection in response to a notice
u/s. 9, cannot have the same effect as if an application has
been filed u/s. 18 - When statute provides for limitation,
compliance thereof is mandatory - It was not permissible to
direct reference to the awardees whose applications were
belated - Limitation Act, 1963 - s. 5. F

Acquisition of land - Reference made on the direction
of High Courl - State and the parly for whom land was
acquired, not raising any objection in the reference
proceedings - Held: Are estopped from challenging the G
reference.

Interpretation of Statutes - As statute must be read as a
whole - If the principles of interpretation of statutes resorled
929 H
930 SUPREME COURT REPORTS [2009] 12 S.C.R.

A to by the court leads to a fair reading of the provision, it would
fulfill the conditions of applying the principles of purposive
construction.

Doctrines/Principles:
B Principles of purposive construction - Applicability of.

Statute prescribing a thing to b°e done in a particular
manner - Is applicable to the statutory authority alone.
,.
C Land acquisition proceedings were initiated on the
requisitions of appellant-Authority and appellant-Housing
Board. In respect of land acquisition for the Auth,ority,
some of the land-holders had accepted the
compensation amount without protest and some
accepted it with protest. Applications u/s. 18 of Land
0 Acquisition Act were filed for reference to Land
Acquisition Court. Reference court granted enhanced
compensation for the awardees who had accepted the
-
same under protest. Reference court rejected the
reference applications of those, who had accepted the
E amount without protest. Some awardees filed reference
application after the expiry of limitation period prescribed
therefor. Their applications were also dismissed by
reference court. Some land-owners formed an
Association for protection of their legal rights.
F Association filed writ petition and the same was allowed
by High Court directing the authorities concerned to
complete the process of reference. Intra-court appeals
were also dismissed. Hence the present appeals.

G In respect of the case of acquisition for Housing
Board, the land owner, at the time of fixation of market
value of the acquired land made a statement expressing
his dissatisfaction over the quantum of compensation. He
also stated that he would receive the amount under
H protest. No reference was made by the Collector suo-
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 931
SANGAM & ORS.
motu. Representations were made for reference. A
Pursuant to filing of writ petition seeking reference, State
made reference of some-cases which was not questioned
by the appellant-Board. Representations for making
reference for rest of the cases was rejected on the ground
(
of limitation. Another writ petition seeking direction for s
reference was allowed by High Court. State did not raise
any objection with regard to the maintainability of order
of reference. Reference court enhanced the amount of
compensation. Appeals by the appellant-Board were
dismissed. The judgment was further upheld in intra- c
court appeal. Hence the present appeals.

Allowing the appeals filed by appellant-Authority and
dismissing the appeals filed by appellant-Board, this
Court,
D
HELD: 1.1. The provisions of Land Acquisition Act,
1894 must be read in their entirety. A holistic approach
is required to be made for the purpose of interpretation
of application of the provisions of the Act and so given,
the provisions thereof meet the tests of Article 300A of E
the Constitution of India. The Act provides for a fair ·
procedure. The Parliament in its wisdom is entitled to lay
down conditions for application of other or further relief.
While it does so, it is entitled to lay down a procedure
therefor in its respect. Such a procedure although meets F
the tests of fairness and reasonableness for the purpose
of determining the constitutionality thereof, ordinarily, the
mode and manner in which the provisions are required
to be applied should be adhered to. The same shall,
. however, be subject to the interpretation of the statute as G
to whether the procedures laid down therein would be
treated to be mandatory or directory. From the scheme
of the Act, the mode and manner in which the amount of
compensation is required to be determined is in several
phases, i.e., notice to the persons interested, making of
H
932 SUPREME COURT REPORTS [2009] 12 S.C.R.

A an award, the period for doing so and publication of the
award itself. [Para 40] [954-D-H; 955-A-C]

1.2. Section 18 of the Act is required to be read with
the provisos appended to Section 31 of the Act. The
person interested may question the correctness or
B
legality of the award on one or the other grounds
specified in Section 18 of the Act. He, even, for the
purpose of payment of the amount of compensation and/
or acceptance thereto, would be governed by the
provisos appended to Section 31 of the Act. Section 31
c of the Act, however, enables the person interested to
accept the award under protest. Acceptance of such an
award under protest, however, is circumscribed by the·
conditions laid down in the provisos appended both to
Sub-section (2) of Section 18 of the Act as also Sub- ...
D section (2) of Section 31 thereof. The said provisos,
.,
therefore, circumscribe the rights of the persons
interested. The right to receive compensation, thus,
having been circumscribed by the conditions attached,
ordinarily, they should be held to be imperative in
E character. [Paras 45 and 46]
1.3. The law does not contemplate that even before
an award is made, a general or vague objection can be
entertained by the Collector. Objection to the award,
F therefore, must be specific. When a reference is made, the
court shall ordinarily be bound by the terms of the
reference. The Reference Court does not have a plenary
jurisdiction. It does not have any original jurisdiction to
entertain an application directly from the Collector or from
the land holders. [Para 44] [955-H; 956-A-B]
G
1.4. When the statute provides for a law of limitation, J.
compliance thereof is mandatory. For the purpose of
applying the statute of limitation, the courts should,
however, be liberal in their approach. Section 18 (2) (b)
H of the Act provides for the maximum period of six months
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 933
SANGAM & ORS.

from the date of the Collector's award. It was, therefore, A
impermissible to direct references to be made after a long
period particularly when the provisions of Section 5 of
the Limitation Act, 1963 cannot be said to have any
application. [Paras 4.7 and 48] [956-G-H; 957-A-B]
B
Officer on Special Duty (La~d Acquisition) 'and Anr. v.
Shah Manila/Chandulal and Ors. 1996 (9) SCC 414; State
of Kamataka v.Laxuman 2005 (8) SCC 709, relied on.

Mirza Majid Hussain v. State of M.P. and Anr. (1995) 2
sec 422, referred to. c
· 1.5. The expression "person interested" for the
purpose of Section 18 of the Act may be given a restricted
- meaning. A State is not a person interested. A company
or a local authority for whose ,benefit the lands are [)
~ acquired, having regard to the provisions,of S~~-section
(2) of Section 50 of the Act, is not entitled to file any
application for reference. [Para 55] [961-A-B]
'
1.6. The Association, tl)erefore, could file a writ
application representing its members but, stricto sensu, E
it ·could not have filed any application for reference in
terms of Section 18 of the Act. For the purpose of making
such an application, indisputably, the period of limitation
provided for therein must be resorted to. However, there
cannot be any doubt whatsoever that a statute of F
limitation should receive strict construction. [Para 57]
[961-D-E]

Kamataka State Road Transport Corporation v. KSRTC
Staff andWorkers' Federation and Anr. (1999) 2 SCC 687, G
J relied on.

1.7. In a land acquisition matter, the question of a
body of the persons being represented by Association
does not arise. The statute provides for filing of claim
H
934 SUPREME COURT REPORTS [2009] 12 S.C.R.

A applications as also filing of objections by the land
holders and not by and/or on behalf of the Association
and that too an independent body corporate. [Para 59)
[962-G]

B 1.8. An owner of a land has a right to receive just
compensation. He, having regard to his human right of
access to justice as has been declared by the ICESCR
on December 10, 2008 should be given an opportunity to
make a reference. A person may get an opportunity to get
a reference only when he is informed about the making
c of an award. [Para 60) [962-H; 963-A]

1.9. Constructive knowledge would also subserve
the purpose of the Act. Whether a person had the actual
or constructive knowledge of the contents of a document
D is essentially a question of fact. The onus would be on
-
the landholder to show that he did not have any ..
knowledge of the contents of the award. In a case where
communication gives rise to a cause of action, the same
must be held to be mandatory in nature. [Para 66 and 67)
E [964-G-H; 965-A]
Raja Harish Chandra Raj Singh v. The Deputy Land
AcquisitionOfficer and Anr. (1962) 1 SCR 676; State of
Punjab v. Mst. QaisarJehan Begum and Anr. (1964) 1 SCR
971, relied on.
F
State of Punjab v. Amar Singh Harika AIR 1966 SC 1313;
State ofPunjab v. Khemi Ram (1969) 3 SCC 28; Land
Acquisition officer v.Shivabai and Ors. (1997) 9 SCC 710;
Parsottambhai MaganbhaiPatel and Ors. v. State of Gujarat
G Through Dy. Collector Modasaand Anr. (2005) 7 SCC 431,
referred to.

1.10. The State issued a notification directing the
Collector to exercise its jurisdiction under Section 18 of
the Act. Such a notification, therefore, would amount to
H
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 935
SANGAM & ORS.

a constructive knowledge. It was obligatory on the part A
of the land owners to file an appropriate application within
the prescribed period. [Para 71] [966-D-E]

1.11. The State, however, clarified the said
notification stating that its earlier notification would not B
mean that the statutory period of limitation provided for
under the Act should be given a complete go-by. [Para
72] [966-E-F]

1.12. Pursuant to or in furtherance of the notification
of the State of Tamil Nadu issued in the year 1981, no C
reference was made as the awards were made principally
during the period 1972 to 1974. [Para 73] [966-F-G]

1.13. Those who received compensation without any
protest keeping in view the second proviso appended to 0
Section 31, it must be held that they have expressed no
reservation in regard thereto whatsoever. [Para 76] [967-
D-E]

1.14.0bjections, however, appeared to have been
filed in printed forms contending that all awards should E
be subject to objections and payments would be received
on protest. Raising of such an objection in response to
a notice u/s. 9 of the Act, cannot have the same effect as
if an application has been filed for reference u/s. 18 of the
Act. [Para 77] [967-E-F] F

1.15. A statute must be read as a whole and then
chapter by chapter, Section by Section, and then word
by word. For the said purpose, the Scheme of the Act
must be noticed. If the principle of interpretation of G
J statutes resorted to by the court leads to a fair reading
of the provision, the same would fulfil the conditions of
applying the principles of purposive construction. [Para
79] [968-A-B]
H
936 SUPREME COURT REPORTS [2009] 12 S.C.R.

A New India Assurance Co. Ltd. v. Nusli Neville Wadia
(2008) 3 SCC279; Chairman, Indore Vikas Pradhikaran v.
Pure Industrial Cokeand Chemicals Ltd. (2007) 8 SCC 705,
referred to.

1.16. The Court does not intend to lay down a law that
8
the protest in regard to making of an award must be done
in a manner specified expressly. When an application for
reference is filed, protest to the award is implicit. [Para 82]
[969-E]

C Ajit Singh and Ors. v. State of Punjab and Ors. (1994) 4
sec 67, relied on.
R. v. Medical Appeal Tribunal (1957) 1 QB 574, 583,
referred to.
D 1.17. No case for exercising extraordinary jurisdiction
under Article 142 of the Constitution of India has been
made out. [Para 86] [971-D]

H.M. Kelogirao and Ors. v. Govt. of A.P. and Ors. (1997)
E 7 SCC 722;0rissa Industrial Infrastructure Development
Corpn. v. Supai Mundaand Ors. (2004) 12 SCC 306,
distinguished.

Supreme Court Bar Association v. Union of India and
F Anr. (1998) 4SCC 409; Vinay Chandra Mishra, Re (1995) 2
SCC 584; JayaChandra Mohapatra v. Land Acquisition
Officer, Rayagada(2005) 9 SCC 123; Union of India vs.
Pramod Gupta (Dead) by Lrs. and Ors. (2005) 12 SCC 1;
Union of India v. Pramod Gupta(Dead) by LRs. Tamil Nadu
-
Electricity Board v. Status Spinning Millsltd. (2008) 7 SCC
G 353, referred to.

2.1. The appeals preferred by the Tamil Nadu Housing
Board, however, stand on a different footing. Therein, the
writ petition was allowed by a Single Judge of the High
H Court. Pursuant thereto or in furtherance thereof,
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 937
SANGAM & ORS.

reference was made. A finding of fact had been arrived A
at. A prayer was also made for reference to the Civil Court
The Land Acquisition Officer assured them that a
reference shall be made. The promise, however, was not
kept.. In the aforementioned situation, the writ petition
was filed. [Para 92) [975-B-C] B

2.2. The judgment of the Single Judge having been
actE!d upon and the Housing Board, having participated
--;
in the proceedings without any demur whatsoever,
cannot be permitted to turn round and contend that the
pro 1.:eeding was illegal. They not only participated in .the
c
.Prciceedings but. allso questioned. the adduction of
evidence in regard to the quantum of compensation and
prnferred appeals against the judgment and award of the
Reference Judge. The said proceedings hav'ing attained
firnality, the writ appeals preferred by them should not D
-./
h;ave been entertained. [Para 93) (975-D-E]

2.3. In a case of this nature, in the absence of any
material brought or11 rncord by the State and/or the
appellant, it is assum<~d that the Land Acquisition Officer E
is a Collector within the meaning of. Sectioll' 3(c) of the
Act. He was, therefor·e, bound by his promise. ,(Para 94)
(975-F]

2.4. In the aforementioned situation, it would not be
F
" a case where a statuiory authority has been asked by a
higher authority to pe1form his jurisdicti1on in a particular
manner. No form of pl'otest, is prescribed under 1the Act.
,,..,..., No form of application in writing has alsc1 been
prescribed. In a giver1 case, keeping in view the object
and purport the statute seeks to achieve, a Collector G
being a statutory auth,ority and having the jurisdidion to
make a reference can waive the same. If a rleference been
made pursuant to the request made by thE! award'ees, it
could not be held to be wholly illega! or without
jurisdiction only because thr~ protest made in regard to H
938 SUPREME COURT REPORTS [2009] 12 S.C.R.

A the quantum of compensation under the award is oral
and not in writing. The form, mode and manner of protest
are procedural in nature. The statute does not provide for
a thing to be done in a particular manner. [Para 95] [975-
G-H; 976-A-B]
8
2.5. The doctrine that where a statute prescribes a
thing to be done in a manner as prescribed or not at all
is applicable where statutory authority is to perform his
function in terms of the provisions of the statute. It is not
meant to be applied to a litigant. A procedure, is hand
C maid of justice. A substantive provision providing for
substantive right or a statutory provision providing for a
substantive right shall prevail over the procedural aspect
of the matter. In a situation of this nature, therefore, the
Land Acquisition Collector could have been, having
D regard to the principles of promissory estoppel, held
bound to fulfil his promise. [Para 96] [976-C-E]

Case Law Reference:
(1957) 1 QB 574 Referred to Para 29
E
1996 (9) sec 414 Relied on. Para ·49

2005 (8) sec 109 Relied on. Para 50
(1999) 2 sec 687 Relied on. Para 58
F
(1962) 1 SCR 676 Relied on Para 64
(1964) 1 SCR 971 Relied on. Para 65

G
AIR 1966 SC 1313
(1969) 3 sec 2a
Referred to
Referred to
Para 67
Para 68
-
(1997) 9 sec 110 Referred to Para 69
(2005) 1 sec 431 Referred to Para 70
(1995) 2 sec 422 Referred to. Para 75
H
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 939
SANGAM & ORS.

(2008) 3 sec 219 Referred to Para 80 A

(2001) 8 sec 105 Referred to. Para 81
(1994) 4 sec 67 Relied on. Para 82
(1998) 4 sec 409 Referred to. Para 84 B
(1995) 2 sec 584 Referred to. Para 84
(1997) 1 sec 122 Distinguished. Para 85
! " (2004) 12 sec 306 Distinguished. Para 87
c
(2005) 9 sec 123 Referred to. Para 89
(2005) 12 sec 1 Referred to. Para 90
c2008) 1 sec 353 Referred to. Para 91
D
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
3874 of 2006.

From the Judgment & Order dated 13.12.2005 of the High
Court of Judicature at Madras in Writ Appeal No. 1073 of 1992.
E
.WITH

C.A. No. 5763, 5764, 5765, 5766, 5767 of 2006 and 4793-
4794 of 2009.

·- Ranjit Kumar, L.N. Rao, Sunil Kumar Jain, Ajay Bhatia,
Aneesh Mittal, Siddharth Jain, S. Thananjayan, Jayanth Muthraj
F
.~

(for C.K. Sasi), R. Nedumaran, Pranab Kumar Mullick for the
appearing parties.
~"''
The Judgment of the Court was delivered by
G
S.B. SINHA, J. 1. Leave granted in both the SLPs.

2. These appeals involving common questions of law and
fact were taken up for hearing together and are being disposed
H
940 SUPREME COURT REPORTS [2009] 12 S.C.R.

A of by this common judgment.

3. On the requisition of M/s. Steel Authority of India Ltd.
(hereinafter called and referred to for the sake of brevity as the
'SAIL') for establishment of a steel plant at Salem commonly
known as Salem Steel Plant, 3651 acms of land was acquired
8
wherefor a notification under Section 4(1) of the Land
Acquisition Act, 1894 (hereinafter called and referred to for the
sake of brevity as 'the Act') was issued in the year 1964 and a
declaration under Section 6 was published in 1969.

C 4. Land acquisition proceedings for preparation of awards
were initiated in 1971 during the period 1971 to 1975. 305
awards were made. A large number of landholders being
satisfied with the quantum of compensation awarded to them
by the Land Acquisition Officer received the same without
D protest.

5. Some of the land owners, however, at the time of
passing of the award being not satisfied with the amount of
compensation awarded in their favour not only received the
E amount under protest but also filed applications for reference
to the Land Acquisition Court in terms of Section 18 of the Act
pursuant whereto and in furtherance whereof references to the
Civil Court were made. Admittedly enhanced amount of
compensation, as determined by the Land Acquisition Judge,
F have also been paid.

6. Some of the land owners, however, filed applications
for reference although they had not accepted the amount of
compensation with protest which was rejected by the Land
Acquisition Officer. Some of the awardees filed their · ~-
G applications for making reference after the period prescribed
therefor. Those applications were also rejected.

7. It is stated that most of the claim petitions were
determined upto 1979. Some of the land owners, however,
H formed an association SUTNI Sangam {(hereinafter called and
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 941
SANGAM & ORS. [S.B. SINHA, J.]

referred to for the sake of brevity as 'the Association') for A
protecting the legal rights of the agriculturists whose lands were
sought to be acquired.

8. A gist of the circular letter directing reference of cases
for the purpose of enhancement of compensation reads as
8
under:

"POINT I

I Awardees who received the compensation amount with
"
J protest and submitted their applications requesting a c
reference under Section 18 of the Land Acquisition Act

1 after the expiry of the stipulated time.

POINT II

Awardees who received the compensation amount without D
protest but submitted applications requesting reference
" under Section 18 of the Land Acquisition Act.

POINT /II

Awardees who received the compensation amount without E
protest but failed to submit applications under Section 18
of the Land Acquisition Act."

9. A clarificatory order, however, was issued by the said
authority on or about 5.1.1983 stating that the earlier F
instructions issued by the Government were not intended to
override the provisions of the said Act and they should be
meticulously followed and, thus, if a person had accepted the
award without protest, he would lose his right to claim any
reference in terms of Section 18 of the Act. G

10. Respondent Association thereafter filed a writ petition
before the High Court of Judicature at Madras marked as Writ
Petition No.55144 of 1983 praying, inter alia, for the following
reliefs:
H
942 SUPREME COURT REPORTS [2009] 12 S.C.R.

A "... a WRIT OF MANDAMUS or any other appropriate writ,
order or direction, directing the Respondents to give effect
to the instructions of the 2nd Respondent contained in
letter No. D.Dis.11/3748/80 dated 21.5.1981 and Section
18 of the Land Acquisition Act and consequently direct
B Respondents 4 to 8 to refer the cases of the persons
included in Annexures I, II, Ill and IV herein to a Civil Court
for grant of enhanced compensation in respect of the lands
acquired from them for the purpose of the Salem Steel
Project, ... "
c 11. In the said writ proceedings, the State Government filed
a counter affidavit, inter alia, contending that in most of the
cases the awardees and the interested persons were served
with notices under Section 12 (2) of the Act who were present
during the land acquisition proceedings. It is furthermore
D averred that the awardees in any view of the matter had
knowledge thereabout and, thus, applications of those
awardees who had accepted amounts of compensation under
protest and filed requisite applications for reference, the
matters at their instance had been referred to the Civil Court
E in terms of Section 18(2) of the Act. Indisputably, the appellant
herein was not initially impleaded in the said writ petition. On
or about 19.11.1984, it filed an application for impleading itself
in the said writ petition which was allowed. By a judgment and
order dated 6.3.1992, a learned Single Judge of the said Court
F allowed the said writ application directing that a mere protest
or expression of dissatisfaction of the award without there being
anything in writing would be sufficient for the concerned
authorities to refer the matters to the Civil Court. On the said
premise, the Collector was directed to complete the process
G of reference within a period of one year therefrom. ·-
12. Aggrieved by and dissatisfied with the said judgment
and order dated 6.3.1992, intra court appeals were preferred
both by the State Government as also by the Appellant. By
reason of the impugned judgment, the writ appeal was
H
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 943
SANGAM & ORS. [S.B. SINHA, J.]

dismissed, opining : A

-( "15. In so far as the category of persons who did not
receive notices under Section 12(2) are concerned, the
learned Single Judge has rightly directed the Government
to issue notices under Section 12(2) of the Act to those 8
persons and it is for the said persons to consider whether
they are seeking reference in accordance with Section
18(2) of the Act or not.

21. Having regard to this settled legal position laid down
by the Apex Court as well as various High Courts it is clear C
that mere protest or expression of dissatisfaction to the
award of compensation without there being anything in
writing may be sufficient and that the authority concerned
is under· an obligation to refer the matter to the Court in
accordance with Section 18(2) of the Act. In view of this D
legal position various categories as indicated
hereinabove, expressing their protest and filing their
applications for reference and some having not even
received notice~ under Section 12(2) of the Act, cannot be
denied the right to refer their cases to the Court under E.
Section 18(2) of the Act and, therefore, we do not find any·
ground to interfere with the judgment of the learned Single
Judge. Writ appeal is, therefore, dismissed with no order
as to costs."
F
13. The other batch of Civil Appeals being Civil Appeal
Nos.5763, 5764, 5765, 5766 and 5767 of 2006 have been filed
by the Tamil Nadu Housing Board aggrieved by and
dissatisfied with the judgment and order dated 14.7.2006
passed by a Division Bench of the High Court affirming the
order dated 30.6.2001 passed by a learned Single Judge of G
the Court allowing the writ applications filed by the respondent
herein relying on or on the basis of the decision referred to in
the case of Steel Authority of India Ltd. (supra).

14. We may, however, before adverting to the common H
944 SUPREME COURT REPORTS [2009] 12 S.C.R.

A questions raised before us notice the broad facts from Civil
Appeal No.5763 of 2006.

15. The State of Tamil Nadu on a requisition made by the
appellant herein for acquiring about 90 acres of land for the
purpose of building houses through it issued a notification
8
under Section 4(1) of the Act on or about 26.6.1985 and a
declaration under Section 6 thereof on 4. 9.1985.

16. Awards were passed on 30.6.1988. The land owners,
while the awards were made fixing market value of the land at y

C Rs.1,61,538/ per hectare and on being communicated
thereabout, made the following statement before the Land
Acquisition Collector :

"Award enquiry notice was served on the pattadar.
D Pattadar appeared for award enquiry and gave statement
stating that the acquired lands belong to him by
inheritance. The quantum of compensation at Rs.1,61,538/
- per Hectare to be awarded is too low and the lands are
abutting Salem - Dharmapuri National Highways and the
adjoining lands are being sold at Rs.25,00,000/- per acre
E
and hence compensation must be paid on that rate and
there is no proof. ,_

He also stated that the compensation amount may be paid
to him and that he would receive the same under protest.
F For getting higher compensation, he requested to make
reference to Sub-Court. In addition to make payment of
compensation to the pattadar, a reference under Section
18 of the Land Acquisition Act will be sent to Sub-Court."

G 17. However, despite the same, no reference was made
by the Collector suo motu. Representations, therefore, were
made for reference by the Association on or about 10.6.1988.
Reminder thereto was sent on 21.1.1991. As despite such
representations and reminders thereto, no action was taken by
H the Land Acquisition Collector to make references under
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 945
SANGAM & ORS. [S.B. SINHA, J.]

Section 18 of the Act, a writ petition was filed by the A
,.. respondents herein praying, inter alia, for -the following reliefs :

" ... this Hon'ble Court may be pleased to issue a writ, order
or direction or any other writ in the nature of a Writ of
Certiorarified Mandamus, calling for the records in 8
connection with the impugned order of the 2nd respondent
in Na. Ka No.549/96 dated 18.10.2000 quash the same
and direct the second respondent to refer for higher
compensation to the competent Civil Court under Section
18 of the Land Acquisition Act, 1894 in respect of the C
lands belonged to the petitioners in S.No.475/1 B-0.09.5
. hes. S.No.475/1A.B-0.04.5 hes, S.No.475/1AF-0.05,
S.No.475/1ai-0.07.0, S.No.475/1k-0.03.5 part, S.No.475/
1L-0.03.5 hes., S.No.475/1A-0,08.5, S.No.475/1T-0.21.5,
S.No.475/1 M-0.03.5, S.No.475/1 N-0.16.0, S.No.475/1W-
0.04.5, S.No.475/1X-0.1.5, S.No.475/1AA-0.01.0, D
S.No.475/1AE-0.5.5, S.No.475/1Z-0.106.0, situated at A.
Jetty Halli Village, Dharamapuri Taluk and pass such
further or other orders as this Hon'ble Court may deem fit
and proper in the circumstances of the case and thus
render justice. E

It is prayed that this Hon'ble Court may be pleased
to direct the second respondent to refer for higher
compensation to the competent Civil Court under Section
18 of the Land Acquisition Act, 1894 in respect of the F
lands belonged to the petitioners in S.No.475/1 B-0.09.5
hes. S.No.475/1AB-0.04.5 hes, S.No.475/1AF-0.05,
S.No.475/1 ai-0.07.0, S.No.475/1 k-0.03.5 part, S.No.475/
1L-0.03.5 hes., S.No.475/1A-0,08.5, S.No.475/1T-0.21.5,
S.No.475/1 M-0.03.5, S.No.475/1 N-0.16.0, S.No.475/1W- G
0.04.5, S.No.475/1X-0.1.5, S.No.475/1AA-0.01.0,
S.No.475/1AE-0.5.5, S.No.475/1Z-0.106.0, situated at A.
Jetty Halli Village, Dharmapuri Talum, pending disposal of
the above writ petition and pass such further or other
orders as this Hon'ble Court may deem fit and proper in H
946 SUPREME COURT REPORTS [2009] 12 S.C.R.

A the circumstances of the case and render justice."

18. It is stated that in the year 1996, the State Government
made reference in about 80 matters the validity and/or legality
whereof was not questioned by the appellant. Representations,
B therefore, were again made for making reference in the rest of
the cases which were rejected by an order dated 18.10.2000,
stating that the representations had been made after a period
of 12 years.

19. Questioning the validity of the said order dated y

c 18.10.2000, a writ petition was filed by the respondent in
November 2000. A prayer was furthermore made for insurance
of a direction upon the Land Acquisition Collector to refer those·
cases for grant of higher compensation before the Civil Court
in terms of Section 18 of the Act. By reason of a judgment and
D order dated 30.1.2001, the said writ petition was allowed.

20. We may place on record that the State Government
did not raise any contention with regard to the maintainability
of the orders of reference. Pursuant to or in furtherance of the
said direction issued by the learned Single Judge, references
E
were made by the Land Acquisition Collector. Appellant-
Housing Board participated therein without any demur
whatsoever. By reason of a judgment dated 19.4.2003, the
Reference Court enhanced the amount of compensation from
Rs.1.50 per square foot to Rs.6.00 per square foot. Appellant
F preferred appe~ls thereagainst before the High Court.
However, by an order dated 19.7.2004, on the appellant's
failure to comply with the directions given by the Division
Bench, the appeals were dismissed. The said order of the
learned Single Judge dated 30.1.2001, by reason of the
G impugned judgment, has been upheld by the Division Bench
of the High Court.

21. Mr. Ranjit Kumar, learned counsel appearing on behalf
of the Steel Authority of India Ltd., would raise the following
H contentions :
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 947
SANGAM & ORS. [S.B. SINHA, J.]

1. The provisions of Section 18(1) of the Act being A
imperative in character; it was obligatory on the part
of the land owners to file appropriate applications
strictly in terms thereof and no such application
having been filed by them within a period of six
weeks from the date of passing of the award in the B
cases where awardees were present and within a
period of six months from the date of
communication thereof in the cases where they
were not present, the awards attained finality.

2. Both the learned Single Judge as also the Division C
Bench committed a manifest error of law insofar as
they failed to take into consideration that even
assuming that the land owners had constructive
notice of the award in the year 1981, appropriate
applications for references should have been filed D
within a period of six months thereafter and not
beyond the same.

3. In view of the fact that most of the individual land
owners had received the amount of compensation E
without any protest were estopped and precluded
from filing a writ application through their
Association or otherwise in view of the second
proviso appended to Section 31 of the Act.

4. The High Court committed a serious error in
F
entertaining the writ petition at the instance of the
respondent association which was neither a
'person interested' within the meaning of Section
3(b) of the Act nor being entitled to act within the
meaning of Section 3(g) thereof and that too after G
a long period of 20 to 25 years from the date of
making of the award.

5. Section 5 of the Limitation Act, 1963 being not
applicable, the High Court could not have issued H
948 SUPREME COURT REPORTS [2009) 12 S.C.R.

A any writ after expiry of the period of limitation or as
specified in sub-section (2) of Section 18 of the Act.

6. The reliefs prayed for in the writ petition by the
association for enmass reference under the Land
Acquisition Act is wholly impermissible in law
B
inasmuch as even the Land Acquisition Collector
is required to go into the merit of each individual
case independently.

7. Unless the impugned judgment is set aside, the
c appellant, which is a Public Sector Undertaking,
shall incur huge financial liabilities without any legal
justification whatsoever.

22. Mr. V. Krishnamurthy, learned counsel appearing on -
0 behalf of the Tamil Nadu Housing Board, adopted the said
arguments of Mr. Ranjit Kumar. He furthermore contended that
Tamil Nadu Housing Board being a person interested in the
matter of enhancement of compensation should have been
given due notice by the Reference Judge. Had such notice been
E granted in the writ petition, it could have been pointed out that
the writ pe.tition was not maintainable.

23. Mr. Jayant Mukhraj, learned counsel appearing on
behalf of the respondent, on the other hand, urged :

F 1. The provisions contained insub-section (1) of
Section 18 being procedural in nature, filing of an
application for reference in writing is not imperative.

2. By reason of the representations made by the land
owners that they were not satisfied with the amount
G of compensation awarded in their favour, they
called upon him to make a reference which has
been agreed upon by the Land Acquisition Collector
and consequently the State Government and the
appellant herein are estopped and precluded from
H contending that sub-section (1) of Section 18 is
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 949
SANGAM & ORS. [S.B. SINHA, J.]

mandatory in nature. A
. ,.
3. The land owners of the area being poor
agriculturists and having not been informed about
their legal rights, no illegality has been committed
by the High Court in entertaining the writ petition of
the respon?ent-Association. 8

4. The right of a land owner to obtain a fair market
value of the land, being a valuable right, the same
would prevail over the procedure contained in
Section 18 of the Act. C

5. The High Court, in exercise of. its power of judicial ·
review is entitled to issue such directions which are

- ·i
necessary for doing complete justice to the parties,
keeping in view the ignorance of the small farmers
who are residents of remote villages.
0

24. The State exercises its power of eminent domain for
the purpose of acquisition of private land as also its own land.
Such acquisition is permissible not only for a public purpose
but also for a company. The Parliament as also the State E
Legislatures enacted a large number of statutes with a view to
give effect to its power of eminent domain vis-a-vis the
constitutional safeguard provided to the owners of the land, as
envisaged under Article 300A of the Constitution of India.
F
25. While a land is acquired in terms of the provisions of
the Act not only a public purpose therefor must exist, acquisition
must also take place within a required time-frame. Provisions
have been made for grant of compensation, procedures
wherefor have been laid down in the statute itself. Unlike some G
other statutes, the Act makes elaborate provisions for payment
of compensation. The constitution of forums had several
hierarchical levels including appellate forums. A land
acquisition collector is a statutory authority. He may or may not
be a collector within the meaning of the provisions of Section
H
950 SUPREME COURT REPORTS [2009] 12 S.C.R.

A 2(c) of the Act.

26. If he is not a collector within the meaning of the
. '

provisions of the Act, he, subject to the just exceptions to which
we would refer to a little later, would not be entitled to act as a
collector for the purpose of Part Ill of the Constitution of India.
8
27. Section 4( 1) of the Act provides for the publication of
the preliminary notification for acquiring any land in three modes
viz. in the Official Gazette, in two daily newspapers circulating
in that locality- of which one shall be in the regional language,
C and at convenient places in the locality where the Collector is
enjoined to publish a substance of the notification.

28. Section 12(1) of the Act reads as follows:

D
"12. Award of Collector when to be final.-(1) Such award
shall be filed in the Collector's office and shall, except as
hereinafter provided, be final and conclusive evidence, as
-
between the Collector and the persons interested, whether
they have respectively appeared before the Collector or
not, of the true area and value of the land, and the
E apportionment of the compensation among the persons
interested." ·

29. The finality of the awards is, however, subject to review
by the Reference Court under Section 18 read with Section
F 31 (2) or Section 30 of the Act. Except for the finality of these
three factual matters, there is nothing in the Act making the
award final as regards its legality. Moreover, the use of the
word "final" in the statute only means that there would be no
appeal. The use of the expression "final" or "conclusive" in a
G statutory provision has been interpreted by Lord Denning, M.R.
in R. v. Medical Appeal Tribunal (1957) 1 QB 574, 583 in the
following words:

"The word 'final' is not enough. That only means 'without
appeal'. It does not mean 'without recourse to certiorari'. It
H makes the decision final on the facts, but not on the law.
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 951
SANGAM & ORS. [S.B. SINHA, J.]

Notwithstanding that the decision is by a statute made A
~- 'final', certiorari can still issue for excess of jurisdiction or
for error of law on the face of the record."

30. For the purposes of Land Acquisition Act, proceedings
are carried on by an officer appointed by the Government known B
as Land Acquisition Collector. The proceeding under the Land
Acquisition Collector is of an administrative nature and not of
a judicial or quasi judicial character. When a Government
intends to occupy a land in any locality it has to issue a
notification under Section 4 in the official gazette as also
newspaper and give a public notice which entitles anyone on
c
behalf of the Government to enter i_nto the land for the purposes
of digging, taking level, set out boundaries etc. The notification
puts forward the intention of the Government to acquire the land,
in terms whereof the government officials became entitled to
D
investigate and ascertain whether the land is suitable for the
~ purpose for which the land is sought to be acquired. The
section also makes it mandatory for the officer or person
.... authorised by the Government to give a notice of seven days
signifying his intention to enter into any building or enclosed
court or garden in any locality. This is a mandatory provision of E
the process of land acquisition

" 31. An officer or authorised person of the Government has
to tender payment for all necessary damage, and all disputes
as to insufficiency of amount lie before the Collector. Under F
Section 5(a) any person interested in land which is notified
under Section 4 (who is entitled to claim an interest in
compensation) can raise an objection, in writing and in person.
The collector after making inquiry to such objections has to
~-
forward the report to the Government whose decision in this G
respect would be final. After considering such report made by.
) the collector under Section SA the Government may issue a
declaration within one year of the notification under Section 4
to acquire land for public purposes or company and this
declaration is a mandatory requirement of the acquisition.
H
952 SUPREME COURT REPORTS [2009] 12 S.C.R.

A 32. After the declaration under Section 6, collector has to
take order from the appropriate Government whether State or .,
Central for the acquisition of land in terms of Section 7. The
next step in the process of acquisition is that Collector has to
cause land to be marked out, measured and appropriate plan
B to be made accurately , unless it is already done. Requirement
of this section deals only with approximation and does not
require exact measurement. An important process that takes
place under this section is demarcation which consists of
marking out boundaries of land to be acquired, either by cutting
c trenches or fixing marks as posts. Object is to facilitate
measurement and preparation of acquisition plan and also let
the private persons know what land is being taken. It is to be
done by requiring a body that is the Government department
or company whichever be the case. Obstruction under Section
8 and Section 4 are offences punishable with an imprisonment
0
not exceeding one year and with fine not exceeding fifty rupees.

33. Section 9 requires the collector to cause a public
notice displayed at convenient places expressing the
Government's intention to take possession of the land and
E requiring all persons interested in the land to appear before him
personally and mak"e claims for compensation before him. In
effect this section requires the Collector to issue two notices;
one in the locality of acquisition and other to occupants or •
people interested in the lands to be acquired. It is a mandatory
F provision.

34. Next step in the process of acquisition requires a
person to deliver names or information regarding any other
person possessing interest in the land to be acquired and the ......
G profits out of the land for the last 3 years. It also binds the person
by requiring him to deliver such information to the collector by
making him liable under Sections 175 and 176 of the Indian
Penal Code.
35. The Final stage of the proceedings before the Collector
H involves an enquiry by him into the objections made by the
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 953
SANGAM & ORS. [S.B. SINHA, J.]

interested persons regarding the proceedings under Sections A
8 and 9 and making an award to persons claiming
compensation as to ihe value of land as on the date of
notification under Section 4. The enquiry involves hearing of
parties who appear in response to the notices, investigate their
claims, consider the objections and take all the information B
necessary for ascertaining the value of the land. Such an enquiry
can be adjourned from time to time as the collector thinks fit.
An award is to be made at the end of the enquiry. The award
made must be under the following three heads:

Correct area of land
c
• Amount of compensation he thinks should be given

Apportionment of compensation, if any.
D
36. Section 11 makes it obligatory on the part of the
collector to safeguard the interests of all persons interested,
even though they might not have appeared before him. In
awarding compensation the Land Acquisition Collector should
look into the estimate value of land and give due consideration
to the other factors specified therein. Value of the property in E
the neighbourhood can be used as a crfterion. The award
should be made within a period two years.

37. A perusal of the provisions of Sections 12, 18, 30, 31
and the procedure for reference as contained in Part Ill of the F
Act, reveals that except for the right of reference on the said
three factual matters, the Act does not provide for appeal from
the award of the Collector. Of course, an appeal lies under
J ,
Section 54 to the High Court from an award of the Reference
Judge made under Section 26 of the Act, and a second appeal G
lies to the Supreme Court from the decision of the High Court.
But the remedy of appeal is restricted only to the questions
relating to the aforesaid three factual matters. At most,
therefore, the Act can be said to be a complete code, only for
the special purpose of adjudicating any dispute with respect
954 SUPREME COURT REPORTS [2009] 12 S.C.R.

A to the three factual matters of the area, value of the land and
the apportionment of the compensation among the interested
persons.

38. Besides the same, there exists neither any express
B provision that no order or proceeding taken under the Act shall
be called in question in any court, nor any implied intendment
barring the jurisdiction of the civil court. There is no finality
attached to any of the proceedings taken under the Act or as
to the validity of tl1e award, which cannot be called in question
in a court of iaw on any judicially recognized grounds. A perusal
c of the scheme also reveals that there is no machinery for
determining all questions of law, which may conceivably arise
under the Act. The Act also does not contain a machinery for
restoration of any land, which may be unauthorizedly taken
away.
D
39. Sven those who had not made any application for
referenc;~ in terms of Section 18 of the Act have, however, a
right to obtain a similar amount of compensation in terms of
Section 28A thereof. Thus, only because at one stage, a holder
E of a land does not file any application for reference, the same
would not mean that they do not have any further remedy at all.
Section 2.BA of the Act seeks to deal with a situation where a
person because of ignorance of his right was not in a position
to file any applic:ation for enhancement of compensation. It
F provides that even in such a case, he should receive a just
amount of compensation.
40. The provisions of the Act must be read in their entirety.
A holistic approach is required to be made for the purpose of .'
interpretation of ap~ lication of the provisions of the Act and so
G given, we are of thn opinion that the provisions thereof meet
the tests of Article ]00A of the Constitution of India. The Act
provides for a fair procedure. The Parliament in its wisdom is
entitled to lay down conditions for application of other or further
relief. While it does so, it is entitled to lay down a procedure
H therefor in respect thereof. Such a procedure although meets
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 955
SANGAM & ORS. [S.B. SINHA, J.]

the tests of fairness and reasonableness for the purpose of A
determining the constitutionality thereof, ordinarily, the mode
and manner in which the provisions are required to be applied
should be adhered to. The same shall, however, be subject to
the interpretation of the statute as to whether the procedures
laid down therein would be treated to be mandatory or directory. B
From the scheme of the Act, as noticed hereinbefore, the mode
and manner in which the amount of compensation is required
to be determined is in several phases, i.e., notice to the
persons interested, making of an award, the period for doing
so and publication of the award itself. c
41. Section 12 of the Act provides that the award of
Collector is to be final. It also provides for a duty upon the
Collector to issue notice of his award to such of the persons
interested as are not present personally or by their
representatives when the award is made. Knowledge of making D
and/or publication of the award, therefore, plays an important
role.

42. For the purpose of invoking Section 18 of the Act, the
person interested is required: E

(i) not to accept the award;

(ii) that the matter may be referred to the Collector for
determination by the court by way of a written
application inter alia pointing out his objection with F
regard to: (a) amount of compensation, (b) person
to whom it is payable or (c) apportionment thereof

.
..
amongst the persons interested .

43. Reference, thus, may be made by the Collector on G
receipt of the application in writing keeping in view the
objections of the land owners or land holders in regard to one
or all the matters as enumerated hereinbefore.

44. The law does not contemplate that even before an
award is made, a general or vague objection can be H
956 SUPREME COURT REPORTS [2009] 12 S.C.R.

A entertained by the Collector. Objection to the award, therefore,
must be specific. When a reference is made, the court shall
ordinarily be bound by the terms of the reference. The
Reference Court does not have a plenary jurisdiction. It does
not have any original jurisdiction to entertain an application
B directly from the Collector or from the land holders.

45. Once an award is made, having regard to the
conclusiveness and finality attached thereto, the Collector has
also a statutory duty to offer payment of the awarded amount
c subject, of course, to the provisions for reference. For the
aforementioned purpose, Section 18 of the Act is required to
be read with the provisos appended to Section 31 of the Act.
The person interested may question the correctness or legality
of the award on one or the other grounds specified in Section
0 18 of the Act. He, even, for the purpose of payment of the
amount of compensation and/ or acceptance thereto, would be
governed by the provisos appended to Section 31 of the Act.
When payment of awarded amount is tendered, under the
common parlance, a person may not accept the same, if he
E objects thereto. Section 31 of the Act, however, enables the
. person interested to accept the award under protest.
Acceptance of such an award under protest, however, is
circumscribed by the conditions laid down in the provisos
appended both to Sub-section (2) of Section 18 of the Act as
also Sub-section (2) of Section 31 thereof.
F
46. The said provisos, therefore, circumscribe the rights
of the persons interested. The right to receive compensation,
thus, having been circumscribed by the conditions attached,
ordinarily, they should be held to be imperative in character.
G
47. When the statute provides for a law of limitation,
compliance thereof is mandatory. For the purpose of applying
the statute of limitation, the courts should, however, be liberal
in their approach.

H 48. Section 18 (2) (b) of the Act provides for the maximum
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 957
SANGAM & ORS. [S.B. SINHA, J.]

period of six months from the date of the Collector's award. It A
.. was, therefore, impermissible to direct references to be made
after a long period particularly when the provisions of Section
5 of the Limitation Act, 1963 cannot be said to have any
application.
B
49. In Officer on Special Duty (Land Acquisition) & Anr.
v. Shah Manila/ Chandu/al & ors. [1996 (9) SCC 414], this
Court held:

" "8. The right to make application in writing is provided
under Section 18(1 ). The proviso to sub-section (2) c
prescribes the limitation within which the said right would
be exercised by the claimant or dissatisfied owner. In
Mohd. Hasnuddin v. State of Maharashtra, this Court was
called upon to decide in a reference under Section 18
made by the Collector to the court beyond the period of D
J limitation, whether the court can go behind the reference
and determine the compensation, though the application
for reference under Section 18 was barred by limitation?
This Court had held that the Collector is required under
Section 18 to make a reference on the fulfilment of certain E
conditions, namely-, (i) written application by interested
person who has not accepted the award; (ii) nature of the

" objections taken for not accepting the award; and (iii) time
within which the application shall be made. In paragraph
22 after elaborating those conditions as conditions F
precedent to be fulfilled, it held that the power to make a
reference under Section 18 is circumscribed by the
conditions laid down therein and one such condition is a
condition regarding limitation to be found in the proviso.
The Collector acts as a statutory authority. If the application
G
is not made within time, the Collector will not have the
~ power to make reference. In order to determine the
limitation on his own power, the Collector will have to
decide whether the application presented by the claimant
is or is not within time and specify the conditions laid down
H
958 SUPREME COURT REPORTS [2009] 12 S.C.R.

A under Section 18. Even if the reference is wrongly made
by the Collector, the court will have to determine the
validity of the reference because the very jurisdiction of the
court to hear a reference depends upon a proper reference
being made under Section 18. If the reference is not proper
B there is no jurisdiction in the court to hear the reference. It
was, therefore, held that it is the duty of the court to see
that the statutory conditions laid down in Section 18
including the one relating to limitation, have been complied
with and the application is not time-barred. It is not
c debarred from satisfying itself that the reference which it
is called upon to hear is a valid reference. It has to
proceed to determine compensation and if it is time-
barred, it is not called upon to hear the same. It is only a
valid reference which gives jurisdiction to the court.
D Therefore, the court has to ask itself the question whether
it has jurisdiction to entertain the reference. If the reference
is beyond the prescribed period by the proviso to sub-
section (2) of Section 18 of the Act and if it finds that it
was not so made, the court would decline to answer the
E reference. Accordingly, it was held that since the reference
was made beyond the limitation, the court was justified in
refusing to answer the reference.

9. It would thus be clear that one of the conditions
precedent to make a valid reference to the court is that the
F application under Section 18(1) shall be in writing and
made within six weeks from the date of the award when
the applicant was present either in person or through
counsel, at the time of making of the award by the Collector
under clause (a) of proviso to sub-section (2). The
G Collector, when he makes the reference, acts as a statutory
authority."

It was furthermore held:

"17. It is to be remembered that the Land Acquisition
H
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 959
SANGAM & ORS. [S.B. SINHA, J.]

-~ (Amendment) Act (68 of 1984) was enacted prescribing A
the limitation to exercise the power under Sections 4, 6
and 11 and also excluded the time occupied due to stay
granted by the courts. Taking cognizance of the limitation
prescribed in proviso to sub-section (2) of Section 18, the
provisions of the Limitation Act were not expressly B
extended. Though Section 29(2) of the Limitation Act is
available, and the limitation in proviso to sub-section (2)
of Section 18 may be treated to be special law, in the
~
absence of such an application by Land Acquisition
(Amendment) Act (68 of 1984), the Act specifically c
maintains distinction between the Collector and the court
• and the Collector/LAO performs only statutory duties under
the Act, including one while making reference under
Section 18. It is difficult to construe that the Collector/LAO
while making reference under Section 18, as statutory D
t authority still acts as a court for the purpose of Section 5
.. of the Limitation Act.

18. Though hard it may be, in view of the specific limitation
provided under proviso to Section 18(2) of the Act, we are
of the considered view that sub-section (2) of Section 29 E
cannot be· applied to the proviso to sub-section (2) of
Section 18. The Collector/LAO, therefore, is not a court
when he acts as a statutory authority under Section 18(1).
Therefore, Section 5 of the Limitation Act cannot be
applied for extension of the period of limitation prescribed F
under proviso to sub-section (2) of Section 18. The High
Court, therefore, was not right in its finding that the
Collector is a court under Section 5 of the Limitation Act."

50. In State of Karnataka v. Laxuman [2005 (8) SCC 709], G
,._. it was opined :
~ "9. As can be seen, no time for applying to the court in
terms of sub-section (3) is fixed by the statute. But since
the application is to the court, though under a special
H
960 SUPREME COURT REPORTS [2009] 12 S.C.R.

A enactment, Article 137, the residuary article of the i'
Limitation Act, 1963, would be attracted and the
application has to be made within three years of the
application for making a reference or the expiry of 90 days
after the application ... "
B
51. The cause of the owners of the land is purported to
have been espoused by the respondent - Association.
Association is stated to have been registered under the
Societies Registration Act in the year 1970. There is, however,
nothing on record to show as to whether it had filed any
c application for reference before the Collector.

52. It is, however, a matter of some significance that mostly
awards were passed during the period 1972 and 1974. Only
some awards were passed in the years 1970, 1975, 1976,
D 1977 and 1978. The State expressed its helplessness to
specify exactly the number of the persons who had received
the amount of award under protest or who had filed applications
fo( reference.

53. We will, however, proceed on the assumption that
E
most of the awardees were poor. and illiterate and they were
not aware of their rights. It is one thing to say that an
Association, like the first respondent, takes up its cause but it
would be another thing to say that only due to the said reason
the mandatory provisions of the statutes would not be necessary
F to be complied with.

54. The Act uses the expression "person interested". The
definition of the expression "person interested" as contained
in Section 3(b) of the Act is an inclusive definition although not
G an exhaustive one. Primarily it includes "all persons claiming
an interest in compensation to be made on account of the •
acquisition of land under this Act; and a person shall be
deemed to be interested in land if he is interested in an
easement affecting the land".
H
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 961
SANGAM & ORS. [S.B. SINHA, J.]

"'>. 55. The expression "person interested" for the purpose of A
Section 18 of the Act may be given a restricted meaning. A
State is not a person interested. A company or a local authority
for whose benefit the lands are acquired, having regard to the
provisions of Sub-section (2) of Section 50 of the Act, is not
entitled to file any application for reference. B

56. The Collector is a statutory authority. He, therefore,
ordinarily must exercise its statutory jurisdiction within the four-
~
corners of the statute, although this would not mean that a
superior court in exercise of its power of judicial review would
be denuded of its power to interfere with an order of reference
c
or issue a directi.on when the same has unjustly been withheld
in appropriate cases, but, such a power as is well known should
-be exercised only in exceptional situations and subject to the
./
condition that adequate grounds exist therefor.
}
' D
57. The Association, therefore, could file a writ application
representing its members but, stricto sensu, it could not have
filed any application for reference in terms of Section 18 of the
Act. For the purpose of making such an application,
indisputably, the period of limitation provided for therein must E
be resorted to. However, there cannot be any doubt whatsoever
• that a statute of limitation should receive strict construction .

58. Reference has been made to Kamataka State Road
Transport Corporation v. KSRTC Staff & Workers' Federation
& Anr. [(1999) 2 SCC 687], wherein in regard to a matter F
relating to conditions of employment of the workers of the
Karnataka State Road Transport Corporation, the Association
was held to have a locus standi to challenge the Government
Order and consequent notification issued by the corporation,
,. . stating: G

"9. So far as the locus standi of the Union in the present
proceedings is concerned, it must be kept in view that the
Corporation itself by its order dated 24-12-1987 granted
recognition to the Union as the sole bargaining agent for H
962 SUPREME COURT REPORTS [2009] 12 S.C.R.

A its members. It was noted by the office memorandum of
the Corporation dated 24-12-1987 that the Federation
having secured 53.04% of the votes polled at the
Corporation level in the referendum held on 11-12-1987,
the Corporation was pleased to accord recognition to the
B respondent-Federation as the sole bargaining agent at the
Corporation level. However, this was subject to the
conditions stipulated under the notification dated 30-4-
1987 which prescribed four years' period from the date of
such conferment of the right of collective bargaining with
c the employer by the Union concerned. It is also not in
dispute between the parties that even in the subsequent
referendum, the respondent-Federation/Union secured
61.07% of the votes polled at the Corporation level and
the Corporation, by its office memorandum dated 16-7-
1992, continued recognition to the Union as the sole
D
bargaining agent subject to the conditions stipulated in the
earlier notification dated 3-12-1991. It is, therefore, not in
dispute between the parties that till 16-7-1996, the
respondent-Federation/Union remained a recognised
Union. We fail to appreciate how the said Union cannot
E challenge the government order dated 10-9-1993 and the
consequent notification issued by the Corporation on 21- ...
9-1993. On both these occasions, the respondent-Union
was admittedly a recognised Union of the employee·s and
had got the benefit of the payroll check-off facility under the
F settlement of 28-7-1988 .... "

59. In a land acquisition matter, the question of a body of
the persons being represented by Association does not arise.
The statute provides for filing of claim applications as also filing
G of objections by the land holders and not by and/or on behalf
of the Association and that too an independent body corporate.

60. An owner of a land has a right to receive just
compensation. He, having regard to his human right of access
to justice as has been declared by the ICESCR on December
H
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 963
SANGAM & ORS. [S.B. SINHA, J.]
10, 2008 should be given an opportunity to make a reference. A
A person may get an opportunity to get a reference only when
""" he is informed about the making of an award.

61. We may notice that before the High Court it was
conceded that in the cases where the award of the Collector
B
was served on the claimant and yet reference was not made
within time, prayer for reference was not maintainable.

62. The High Court in its judgment had divided the
II>. claimants in four categories. So far as the first category of
claimants is concerned, there cannot be any doubt that their c
applications for reference would be maintainable. So far as the
second category of claimants is concerned, their applications
being barred by limitation, the same could not have been
entertained by the Collector, being beyond his jurisdiction. So
far as the third category of claimants is concerned, the time for D
J making application would indisputably run from the date. of
communication thereof. As far as the land holders belonging
to the fourth category of claimants are concerned, the question
being of some importance would be discussed a little later.
E
63. We may notice a few precedents operating in the field.

64. In Raja Harish Chandra Raj Singh v. The Deputy
Land Acquisition Officer and Another[(1962) 1 SCR 676], this
Court referring to Section 12 of the Act held:
F
"It is significant that the section requires the Collector
to give notice of the award immediately after making it.
This provision lends support to the view which we have
taken about the construction of the expression "from the
date of the Collector's award" in the proviso to Section 18. G
It is because communication of the order is regarded by
Jo.
the legislature as necessary that Section 12(2) has
imposed an obligation on the Collector and if the relevant
clause in the proviso is read in the light of this statutory
requirement it tends to show that the literal and mechanical
H
964 SUPREME COURT REPORTS (2009] 12 S.C.R.

A construction of the said clause would be wholly
inappropriate. It would indeed be a very curious result that
the failure of the Collector to discharge his obligation under
Section 12 (2) should directly tend to make ineffective the
right of the party to make an application under Section 18,
B and this result could not possibly have been intended by
the legislature."

65. Similar observations have been made in State of
Punjab v. Mst. Qaisar Jehan Begum & Anr. ((1964) 1 SCR
971, thus:
c
"... Now knowledge of the award does not mean a mere
knowledge of the fact that an award has been made. The
knowledge must relate to the essential contents of the
award. These contents may be known either actually or
D constructively. If the award is communicated to a party
.under Section 12(2) of the Act, the party must be obviously
fixed with knowledge of the contents of the award whether
he reads it or not. Similarly when a party is present in court
either personally or through his representative when the
E award is made by the Collector, it must be presumed that
he knows the contents of the award. Having regard to the
scheme of the Act we think that knowledge of the award
must mean knowledge of the essential contents of the
award. Looked at from that point of view, we do not think
F that it can be inferred from the petition dated December
24, 1954 that the respondents had knowledge of the
award."

66. The said decision, therefore, itself is an authority for
the proposition that constructive knowledge would also subserve
G the purpose of the Act. Whether a person had the actual or
constructive knowledge of the contents of a document is
essentially a question of fact. The onus would be on the
landholder to show that he did not have any knowledge of the
contents of the award.
H
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 965
SANGAM & ORS. [S.B. SINHA, J.]

., 67. We may furthermore notice that in a case where
communication gives rise to a cause of action, the same must
A

be held to be mandatory in nature.

{See State of Punjab v. Amar Singh Harika [AIR 1966
SC 1313)}
B
68. But in State of Punjab v. Khemi Ram [(1969) 3 SCC
28: AIR 1970 SC 214), it was stated :

J.:.. "16. The last decision cited before us was that of
State of Punjab v. Amar Singh Harika where one of the c
questions canvassed was whether an order of dismissal
can be said to be effective only from the date when it is
made known or communicated to the concerned public
servant. The facts of the case show that though the order
of dismissal was passed on June 3, 1949, and a copy D
thereof was sent to other 6 persons noted thereunder, no
~·
copy was sent to the concerned public servant who came
to know of it only on May 28, 1951, and that too only
through another officer. On these facts, the Court held,
rejecting the contention that the order became effective as
E
soon as it was issued, that the mere. passing of the order
of dismissal would not make it effective unless it was
\< published and communicated to the concerned officer."

69. In Land Acquisition officer v. Shivabai and Others
[(1997) 9 SCC 710), this Court held : F

" ... The limitation begins to run from the date of the notice
as per the proviso to Section 18(2). The date of the award
and the date of the receipt of the compensation were
incidentally the same. Under these circumstances, it must
G
be presumed that they were present on the date when the
• award was made and the compensation was received
without any protest. Under these circumstances, they are
not entitled to seek any reference."

70. In Parsottambhai Maganbhai Patel and Others v. H
966 SUPREME COURT REPORTS (2009] 12 S.C.R.

A State of Gujarat Through Dy. Collector Modasa and Another
((2005) 7 sec 431], it was observed : ....
"7. This Court, therefore, held that the limitation under
the latter part of Section 18(2)(b) of the Act has to be
computed having regard to the date on which the claimants
B
got knowledge of the declaration of the award either actual
or constructive. This principle, however, will apply only to
cases where the applicant was not present or represented
when the award was made, or where no notice under
Section 12(2) was served upon him. It will also apply to a
c case where the date for the pronouncement of the award
is communicated to the parties and it is accordingly
pronounced on the date previously announced by the
Court, even if, the parties are not actually present on the
date of its pronouncement."
D
71. The State issued a notification directing the Collector
to exercise its jurisdiction under Section 18 of the Act. Such a
notification, therefore, would amount to a constructive
knowledge. It was obligatory on the part of the land owners to
E file an appropriate application within the prescribed period.
72. The State, however, clarified the said notification on
or about 25.01.1983 stating that its earlier notification of the
year 1981 would not mean that the statutory period of limitation
•
provided for under the Act should be given a complete go-by.
F It is only on or about 2.12.1983 that the writ petition was filed.

73. Indisputably, pursuant to or in furtherance of the
notification of the State of Tamil Nadu issued in the year 1981,
no reference was made as the awards were made principally
G during the period 1972 to 1974.
74. The writ petition, therefore, was also filed after
inordinate delay.

75. In Mirza Majid Hussain v. State of M.P. and Another
H ((1995) 2 SCC 422], this Court held:
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 967
SANGAM & ORS. [S.S. SINHA, J.]

"4. Then we have to see whether the appellant was A
justified in approaching the High Court after an inordinate
delay of more than 10 years from the date of the order of
the Collector or at any rate from the date of the order
passed by the District Judge. The High Court exercised
its jurisdiction under Article 226 but not under Section 115 B
CPC. Even if it is to be converted as a revision under
Section 115 CPC, the order of the High Court is not
vitiated by any error of jurisdiction or material irregularity
in the exercise of its jurisdiction. The High Court has rightly
~-
refused to exercise its discretionary jurisdiction after an c
inordinate delay of more than 5 years from the date of the
order of District Judge and more than 10 years from the
date of the order of the Land Acquisition Collector. Under
these circumstances, we do not think that it is a case
warranting interference by this Court under Article 136."
D
J. 76. Indisputably, those who received compensation without
any protest keeping in view the second proviso appended to
Section 31 ·must be held to have expressed no reservation in
regard thereto whatsoever.
E
77. Objections, however, appeared to have been filed in
printed forms contending that all awards should be subject to
• objections and payments would be received on protest. Raising
of such an objection in response to a notice under Section 9
of the Act, in our opinion, cannot have the same effect as if an F
application has been filed for reference under Section 18 of the
Act.

78. We may, however, notice that in terms of the proviso
.,Y..-. (b) appended to sub-Section (2) of Section 18, the maximum
period fixed for filing of an objection is six months from the date G
).. of the Collector's award. The statute, therefore, imposed a duty
on the owner of land to keep track as to what has happened to
his objection.

79. The learned counsel, however, invited our attention to H
968 SUPREME COURT REPORTS [2009] 12 S.C.R.

A take recourse to the purposive interpretation doctrine in
preference to the literal interpretation. It is a well settled
principle of law that a statute must be read as a whole and then
chapter by chapter, section by section, and then word by word.
For the said purpose, the Scheme of the Act must be noticed.
B If the principle of interpretation of statutes resorted to by the
court leads to a fair reading of the provision, the same would
fulfil the conditions of applying the principles of purposive
construction.

80. In New India Assurance Co. Ltd. v. Nusli Neville
c Wadia [(2008) 3 SCC 279], this Court held:
"49. Section 5 of the Act, on a plain reading, would place
the entire onus upon a noticee. It, in no uncertain terms,
states that once a notice under Section 4 is issued by the
D Estate Officer on formation of his opinion as envisaged
therein it is for the noticee not only to show cause in 1
respect thereof but also adduce evidence and make oral
submissions in support of his case. Literal meaning in a
situation of this nature would lead to a conclusion that the
E landlord is not required to adduce any evidence at all nor
is it required even to make any oral submissi0ns. Such a
literal construction would lead to an anomalous situation
because the landlord may not be heard at all. It may not
even be permitted to adduce any evidence in rebuttal to
F the one adduced by the noticee nor it would be permitted
to advance any argument. Is this contemplated in law? The
answer must be rendered in the negative. When a landlord
files an application, it in a given situation must be able to
lead evidence either at the first instance or after the ' .. .,.._,_
evidence is led by the noticee to establish its case and/or
G
in rebuttal to the evidence led by the noticee."
I

81. In Chairman, Indore Vikas Pradhikaran v. Pure
Industrial Coke & Chemicals Ltd. [(2007) 8 SCC 705], this
Court held:
H
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 969
SANGAM & ORS. [S.B. SINHA, J.]

"57. The Act being regulatory in nature as by reason A
-\ thereof the right of an owner of property to use and develop
stands restricted, requires strict construction. An owner of
land ordinarily would be entitled to use or develop the same
for any purpose unless there exists certain regulation in a
statute or a statutory rules. Regulations contained in such B
statute must be interpreted in such a manner so as to least
interfere with the right to property of the owner of such land.
Restrictions are made in larger public interest. Such
restrictions, indisputably must be reasonable ones. (See
""- Bairam Kumawat v. Union of India; Krishi Utpadan Mandi c
Samiti v. Pilibhit Pantnagar Beej Ltd. and Union of India
v. West Coast Paper Mills Ltd.) The statutory scheme
contemplates that a person and owner of land should not
ordinarily be deprived from the user thereof by way of
reservation or designation. D
~- 58. Expropriatory legislation, as is well-known, must be
given a strict construction .
......
82. We may, however, hasten to add that we do not intend
to lay down a law that the protest in regard to making of an E
award must be done in a manner specified expressly. When
an application for reference is filed, protest to the award is
• implicit as has been held by this Court in Ajit Singh & Ors. v.
State of Punjab & ors. [(1994) 4 SCC 67]:

"5. Having regard to the contiguity of these lands the High F
Court is correct in its valuation. Besides, the date of
notification, issued under Section 4 of the Act, is October
4, 1978 while Exh. R-6 is nearer to it, namely, August 16,
----- 1978, in comparison to Exh. A-6 dated January 14, 1977.
Inasmuch as the appellants have filed an application for G
... reference under Section 18 of the Act that will manifest
their intention. Therefore, the protest against the award of
the Collector is implied notwithstanding the acceptance of
compensation. The District Judge and the High Court;
therefore, fell into patent error in denying the enhanced H
970 SUPREME COURT REPORTS [2009] 12 S.C.R.

A compensation to·the appellants."
,.._
83. The learned counsel for the respondents would,
however, make an appeal that in a situation of this nature we
should exercise our jurisdiction under Article 142 of the
Constitution of India. The learned counsel for the said purpose
B
refers to a large number of cases. We may notice some of
them.

84. ·in Supreme Court Bar Association v. Union of India
& Anr. [(1998) 4 SCC 409], a Constitution Bench of this Court .4
c was dealing with a decision rendered in Vinay Chandra
Mishra, Re [(1995) 2 SCC 584], wherein the statutory
provisions dealing expressly with the subject were said to have
been ignored by this Court while exercising power under Article
142 of the Constitution of India. In that case itself, it was held:
D
"47. The plenary powers of this court under Article 142 of
~
the Constitution are inherent in the court and are

E
complementary to those powers which are specifically
conferred on the court by various statutes though are not
limited by those statutes. These powers also exist
independent of the statutes with a view to do complete
-
justice between the parties. These powers are of very wide
amplitude and are in the nature of supplementary powers. ..
This power, exists as a separate and independent basis
of jurisdiction, apart from the statutes. It stands upon the
F foundation, and the basis for its exercise may be put on a
different and perhaps even wider footing, to prevent
injustice in the process of litigation and to do complete
justice between the parties. This plenary jurisdiction is, thus,

G
the residual source of power which this Court may draw
upon as necessary whenever it is just and equitable to do
. -·
so and in particular to ensure the observance of the due ~

process of law, to do complete justice between the parties,
while administering justice according to law. There is no
doubt that it is an indispensable adjunct to all other powers
H and is free from the restraint of jurisdiction and operates
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 971
SANGAM & ORS. [S.B. SINHA, J.]

-', as a valuable weapon in the hands of the court to prevent A
"clogging or obstruction of the stream of justice" ..... "

85. In H.M. Kelogirao & Ors. v. Govt. of A.P. & ors. [(1997)
7 sec 722], this Court was dealing with a case where the
appellants had not accepted the award which was put in issue
B
by them in the Writ Petition. It was in the aforementioned
extraordinary situation and particularly having regard to the fact
that they had filed writ petitions, this Court granted time to them
~- to seek reference under Section 18 of the Act in exercise of
its equitable jurisdiction as also in the interests of justice.
c
86. A foundational fact, therefore, in that case for reference
has been made out. Such is not the position here. As indicated
hereinbefore, no application for reference has been made in
these cases either by the land holders or by the Association
i. for a long time. Therefore, in our opinion, no case for exercising D
our extraordinary jurisdiction under Article 142 of the
.,, Constitution of India has been made out.

87. Reliance has also been placed on Orissa Industrial
Infrastructure Development Corpn. v. Supai Munda & ors.
[(2004) 12 SCC 306] wherein this Court was dealing with a E
case where State Authorities awarded compensation which
was supported by convincing evidence. It was also furthermore
found that the claimant made oral protest as regards the
sufficiency of the amount of compensation which had been
cowed down by resorting to coercive methods. It is in the F
aforementioned situation, it was held that the benefit of the
proviso appended to sub-Section (2) of Section 31 of the Act
.......- was not available to the State as the claimants had received
compensation under duress. The direction to proceed with the
reference by this Court in the aforementioned situation was not G
made in exercise of its extraordinary jurisdiction under Article
142 of the Constitution of India but on the principle that a
decision obtained under coercion ·is no decision in the eye of
law and was liabie to be ignored.
H
972 SUPREME COURT REPORTS [2009] 12 S.C.R.

A 88. Land Acquisition Collector is a statutory authority. The ,~
proceeding before the Land Acquisition Collector is a quasi-
judicial Proceeding. A party before it may waive its right.

89. In Jaya Chandra Mahapatra v. Land Acquisition
Officer, Rayagada [(2005) 9 SCC 123], this Court held:
B
"8. In law, there is no bar in filing applications for review
successively if the same are otherwise maintainable in law.
The Civil Court herein admittedly had not granted to the .~
Appellant the benefit of solatium at the rate of 30% of the
c amount of enhanced compensation as also the addi(ional
amount and interest as contemplated under the Amending
Act of 1984. To the said benefits, the Appellant was entitled
to in terms of Section 23(1A), Section 23(2) as also
Section 28 of the Act. It is one thing to say that the
D omission to award additional amount under Section
~
23(1A), enhanced interest under Section 28 and solatium
under Section 23(2) may not amount to clerical or
arithmetical mistake in relation whereto an executing court
will not be entitled to grant relief but it is another thing to
E say that the grant thereof would be impressible in law even
if the Reference Court on an- appropriate application made
in this behalf and upon application of its mind holds that .,
the statutory benefits available to the claimant had not been
granted to him and pass an order in that behalf by directing
amendment of decree. In a case of former nature, an
F executing court may not have any jurisdiction to pass such
an order on the ground that it cannot go behind the
decree, but in law there does not exist any bar on a
Reference Court to review its earlier order if there exists -"
an error apparent on the face of the record in terms of
G Order 47, Rule 1 of the Code of Civil Procedure. Such a
jurisdiction cannot be denied to the Reference Court. The '
Act 68of1984 is a beneficial statute and, thus, the benefits
arising thereunder cannot ordinarily be denied to a
claimant except on strong and cogent reasons."
H
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 973
SANGAM & ORS. [S.8. SINHA, J.]

•' 90. In Union of India v. Pramod Gupta (Dead) by LRs. & A
ors. [(2005) 12 sec 1):

"104. It ma/ not, thus, be correct to contend that the said.
provisions are so imperative in character that waiver
thereof is impermissible in law or would be against public 8
interest. Grant of interest in terms of Section 28 of the Land
Acquisition Act is discretionary. Only rate of interest
specified therein is mandatory. Section 34 of the Act ex
facie, however, appears to be imperative in character as
the word 'shall' has been used. A discretion vested in the C
court, it is trite, may not be exercised where the right to
claim interest has been waived. expressly by the parties
and/or their counsel. Even a mandatory provision of a
statute can be waived.

xxx xxx xxx D

108. It is not in dispute that if a person alters its position
pursuant to the representation made by the other side, the
principles of ~stoppel would be applicable and by reason
thereof, the person making the representation would not E
be allowed to raise a plea contra thereto. In Kris.hna
Bahadur v. Puma Theatre and Ors. (2004) 8 SCC 229,
this Court held: (SCC p. 233, paras 9-10)

"9. The principle of waiver although is akin to the
principle of estoppel; the difference between the F
two, however, is that whereas estoppel is not a
cause of action; it is a rule of evidence; waiver is
contractual and may constitute a cause of action; it
is an agreement between the parties and a party
fully knowing of its rights has agreed not to assert G
a right for a consideration.

10. A right can be waived by the party for whose
benefit certain requirements or conditions had been
provided for by a statute subject to the condition that H
974 SUPREME COURT REPORTS [2009] 12 S.C.R.

A no public interest is involved therein. Whenever
'
•
waiver is pleaded it is for the party pleading the
same to show that an agreement waiving the right
in consideration of some compromise came into
being. Statutory right, however, may also be waived
B by his conduct."

[See also Vijay Cotton & Oil Mills Ltd. v. The State of
Gujarat (1969) 2 SCR 60, SCR at p. 63].
~

109. Yet again recently in State of Kamataka and Anr. v.
c Sangappa Dyavappa Biradar and Ors.(2005) 4 SCC 264,
the principles of estoppel was applied in relation to a
consent award holding that once a consent award had
been passed, the claimants were precluded from applying
for a reference under Section 18 of the Act."
D
91. In Tamil Nadu Electricity Board v. Status Spinning
Mills Ltd. [(2008) 7 SCC 353], this Court held:

"34. Validity of the notifications on the ground that they are
unreasonable has not been raised before the High Court.
E We, therefore, cannot go into the issue. If that be so, it is
difficult to agree ·with Mr Parasaran that we should
+
undertake an exercise to interpret the notifications in a
manner which would not lead to unreasonableness. For the
purpose of declaring a statute unconstitutional,
F foundational facts have to be laid therefor. (See Seema
Silk & Sarees v. Directorate of Enforcement11.) Grounds
are required to be raised therefor. In absence thereof it
would not be possible for us to enter into the debate of
constitutionality of the said provisions. The Division Bench
..
G of the High Court had rightly or wrongly opined that the
doctrine of promissory estoppel has no application. The
fact that the said doctrine may apply even in relation to a
statute is beyond any dispute as has been held by this
Court in Mahabir Vegetable Oils (P) Ltd. v. State of
H Haryana12, A.P. Steel Re-Rolling Mill Ltd.9, Pawan
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 975
SANGAM & ORS. [S.B. SINHA, J.]

Alloys and Casting (P) Ltd. v. U.P. SEB13 and Southern A
\ Petrochemical Industries Co. Ltd. v. Electricity Inspector
& ET/014."

92. The appeals preferred by the Tamil Nadu Housing
Board, however, stand on a different footing. Therein, the writ B
petition was allowed by a learned single judge of the High Court.
Pursuant thereto or in furtherance thereof, reference was made.
A finding of fact had been arrived at. A prayer was also made
y._ for reference to the Civil Court. The Land Acquisition Officer
assured them that a reference shall be made. The promise,
however, was not kept. In the aforementioned situation, the writ
c
petition was filed.

93. The judgment of the Single Judge having been acted
upon and Tamil Nadu Housing Board, having participated in the
proceedings without any demur whatsoever, cannot be D
-f. permitted to turn round and contend that the proceeding was
illegal. They not only participated in the proceedings but also
questioned the adduction of evidence in regard to the quantum
of compensation and preferred appeals against the judgment
and award of the Reference Judge. The said proceedings E
having attained finality, the writ appeals preferred by them
°t'
should not have been entertained.

94. In a case of this nature, in the absence of any material
brought on record by the State and/or the appellant, we may
F
assume that the Land Acquisition Officer is a Collector within
the meaning of Section 3(c) of the Act. He was, therefore,
bound by his promise.

95. In the aforementioned situation, it would not be a case
where a statutory authority has been asked by a higher G -
\- authority to perform his jurisdiction in a particular manner. No
form of protest, as indicated hereinbefore, is prescribed under
the Act. No form of application in writing has also been
prescribed. In a given case, keeping in view the object and
purport the statute seeks to achieve, a Collector being a H
976 SUPREME COURT REPORTS (2009] 12 S.C.R.

A statutory authority and having the jurisdiction to make a
reference can waive the same. We may consider it from another
angle. Had a reference been made pursuant to the request
made by the awardees, could it be held to be wholly illegal or
without jurisdiction only because the protest made in regard to
B the quantum of compensation under the award is oral and not
in writing? The answer to the said question must be rendered
in the negative. The form, mode and manner of protest are
procedural in nature. The statute does not provide for a thing
to be done in a particular manner.
c 96. Submission of Mr. Krishnamurthy that the doctrine that
where a statute prescribes a thing to be done in a manner as
prescribed or not at all is applicable where statutory authority
is to perform his function in terms of the provisions of the statute.
It is not meant to be applied to a litigant. A procedure, as is
D well known, is hand maid of justice. A substantive provision
providing for substantive right or a statutory provision providing
for a substantive right shall prevail over the procedural aspect
of the matter. In a situation of this nature, therefore, the Land
Acquisition Collector could have been, having regard to the
E principles of promissory estoppel, held bound to fulfil his
promise.

97.ln Nagar Palika Nigam v. Krishi Upaj Mandi Samiti
& Ors. (2008 AIR SCW 7114], this Court held:
F "8. The normal function of a proviso is to except something
out of the enactment or to qualify something enacted
therein which but for the proviso would be within the
purview of the enactment. As was stated in Mullins v.
Treasurer of Survey 1880 (5) QBD 170, (referred to in
G Shah Bhojraj Kuverji Oil Mills and Ginning Factory v.
Subhash Chandra Yograj Sinha (AIR 1961 SC 1596) and I

Calcutta Tramways Co. Ltd. v. Corporation of Calcutta
(AIR 1965 SC 1728); when one finds a proviso to a
section the natural presumption is that, but for the proviso,
H the enacting part of the section would have included the
STEEL AUTHORITY OF INDIA LTD. v. S.U.T.N.I. 977
SANGAM & ORS. [S.B. SINHA, J.]

subject matter of the proviso. The proper function of a A
proviso is to except and to deal with a case which would
otherwise fall within the general language of the main
enactment and its effect is confined to that case. It is a
qualification of the Page 4544 preceding enactment which
is expressed in terms too general to be quite accurate. As B
a general rule, a proviso is added to an enactment to
qualify or create an exception to what is in the enactment
and ordinarily, a proviso is not interpreted as stating a
general rule. "If the language of the enacting part of the
statute does not contain the provisions which are said to c
occur in it you cannot derive these provisions by implication
from a proviso." Said Lord Watson in West Derby Union
v. Metropolitan Life Assurance Co. 1897 AC 647 (HL).
Normally, a proviso does not travel beyond the provision
to which it is a proviso. It carves out an exception to the D
main provision to which it has been enacted as a proviso
and to no other. (See A.N. Sehgal and Ors. v. Raje Ram
Sheoram and Ors. (AIR 1991 SC 1406), Tribhovandas
Haribhai Tamboli v. Gujarat Revenue Tribunal and
Ors.(AIR 1991 SC 1538) and Kera/a State Housing Board
and Ors. v. Ramapriya Hotels (P) Ltd. af)d Ors. (1994 (5) E
sec 672)."

98. For the reasons aforementioned, the appeal preferred
by M/s Steel Authority of India Ltd. is allowed with no order as
to costs and the appeals filed by the Managing Director, Tamil F
Nadu Housing Board are dismissed with costs. Counsel's fee
assessed at Rs. 25,000/- each.

K.K.T. Appeal disposed of.