MADAN & ANR.versusSTATE OF MAHARASHTRA

                       (2013] 12 S.C.R. 761


                          MADAN & ANR.                                    A
                                   v.
                  STATE OF MAHARASHTRA
                (Civil Appeal No. 10863 of 2013)

                      DECEMBER 06, 2013
                                                                          B
    [P. SATHASIVAM, CJI, RANJANA PRAKASH DESAI
               AND RANJAN GOGOi, JJ.]

      Land Acquisition Act, 1894:
                                                                          c
       s. 18 - Reference - Limitation - Expression, "the date of
- award" - Connotation of - Held: The expression "the date of
  the award" used in proviso (b) to s. 18(2) must be understood
  to mean the date when the award is either communicated to
  the party or is known by him either actually or constructively          D
  - In the instant case, it is for t/1e first time on the date of order
  u/s 30 that the appellants came to know that they were entitled
  to compensation and the quantum thereof - Reference u/s
  18 was made within 6 weeks from the said date - Therefore,
. the view taken by the High Court that reference u/s 18 was              E
  barred by limitation cannot be sustained - Order of High
  Court is set aside and the award of enhanced compensation
  made by reference court u/s 18 restored.

      ss. 18 and 30 - References under - Distinction between
 - Explained - Limitation for filing reference uls 18 - Held: The         F
 two Sections operate in entirely different circumstances -
 While s. 18 applies to situations where the apportionment
 made in the award is objected to by a beneficiary thereunder,
 s.30 applies when no apportionment whatsoever is made by
 the Collector on account of conflicting claims - In such a               G
 situation one of the options open to the Collector is to make
 a reference of the question of apportionment to the court uls
 30 of the Act - The other is to relegate the parties to the
 remedy of a suit - In either situation, the right to receive
                                  761                                     H
      762      SUPREME COURT REPORTS              [2013] 12 S.C.R.


 A compensation under the award would crystallize after
   apportionment is made in favour of a claimant - It is only
   thereafter that a reference u/s 18 for enhanced compensation
   can be legitimately sought by the claimant ;n whose favour
   the order of apportionment is passed either by the court in the
 B reference u/s 30 or in the civil suit, as may be.

           In a case of land acquisition, the Collector (Special
      Land Acquisition Officer) made the award on 16.8.1985.
      As there was a dispute with regard to the ownership of
 C    the land, the Collector referred the matter to civil court for
      apportionment of compensation u/s 30 of the Land
      Acquisition Act, 1894. The reference u/s 30 was disposed
      of by the Additional District Judge on 4.9.1991 holding
      that the appellants (claimants 1 and 2) were entitled to
      compensation in respect of 20 acres of the acquired land
 D    and the remaining parties (claimants 3 to 7) for
      compensation in respect of remainder of the acquired
      land. The appellants received the compensation on
      5.9.1991 and within six weeks from the date of the order
      dated 4.9.1991 they sought a reference uls 18 of the Act
- E   for enhancement of the compensation awarded. The said
      reference was numbered as L.A.R. No. 7511992 and was
      decided by the Additional District Judge, by order dated
      29.10.1993 enhancing the compensation amount by an
      additional sum of Rs.2, 10,000/- along with solatium,
 F    interest etc. The appeal filed by the State Government was
      decided by the High Court only on the issue of limitation
      by holding the same to be time barred.

            Allowing the appeal, the Court

 G        HELD: 1.1. In Raja Harish Chandra Raj Singh*, this
      Court has held that the expression "the date of the
      award" used in proviso (b) to s.18(2) of the Land
      Acquisition Act, 1894 must be understood to mean the
      date when the award is either communicated to the party
 H
     MADAN & ANR v. STATE OF MAHARASHTRA                   763


 or is known by him either actually or constructively. It has     A
  been further held that it will be unreasonable to construe
 the words "from the date of the Collector's award" used
. in the proviso to s.18 in a literal or mechanical way. [para
 10) [769-D-E]
                                                                  B
    Raja Harish Chandra Raj Singh Vs. The Deputy Land
                                         =
Acquisition Officer & Anr. 1962 SCR 676 AIR 1961 SC 1500
- relied on.

    1.2. In the instant case, a finding has been recorded
by the reference court in its order dated 29.10.1993 that         C
"the petitioners had no knowledge about the passing of the
award till the date of payment of compensation on 5.9.1991
because they were held entitled to receive the compensation
after the decision of Reference u/s 30 dated 4. 9. 1991." Thus,
it is for the first time on 4.9.1991 (date of the order u/s 30    D
of the Act) that the appellants came to know that they
were entitled to compensation and the quantum thereof.
It is not in dispute that the reference uls 18 was made
within 6 weeks from the said date i.e. 4.9.1991. Therefore,
the view taken by the High Court that the reference u/s           E
18 was barred by limitation, cannot be sustained. [para
10-11) [769-E-H]

     1.3. A cursory glance of the provisions of ss.18 and
30 of the Act may suggest that there is some overlapping
                                                                  F
between the provisions inasmuch as both contemplate
reference of the issue of apportionment of compensation
to the court. But, a closer scrutiny would indicate that the
two Sections operate in entirely different circumstances.
While s.18 applies to situations where the apportionment
made in the award is objected to by a benefieiary                 G
thereunder, s.30 applies when no apportionment
whatsoever is made by the Collector on account of
conflicting claims. In such a situation one of the options
open to the Collector is to make a reference of the
                                                                  H
    764      SUPREME COURT REPORTS            [2013] 12 S.C.R.


A question of apportionment to the court u/s 30 of the Act.
  The other is to relegate the parties to the remedy of a suit.
  In either situation, the right to receive compensation
  under the award would crystallize after apportionment is
  made in favour of a claimant. It is only thereafter that a
B reference u/s 18 for enhanced compensation can be
  legitimately sought by the claimant in whose favour the
  order of apportionment is passed either by the court in
  the reference u/s 30 or in the civil suit, as may be. [para
  12] [770-A-E]
c       Dr. G.H. Grant Vs. The State of Bihar 1965 SCR 576    =
    AIR 1966 SC 237 - relied on.

      1.4. This Court, therefore, holds that the High Court
  had erred in allowing the appeal filed by the State and
D reversing the order dated 29.10.1993 passed by the
  Second Additional District Judge. The award of
  compensation in the instant case having been made by
  the Collector as far back as in the year 1985 and the
  amount involved being exceedingly small, this Court has
E considered the basis on which enhancement of
  compensation was made by the reference court in its
  order dated 29.10.1993. There is no error in the view taken
  by the reference court. Therefore, in the peculiar facts of
  the case, the order dated 09.09.2008 passed by the High
F Court is set aside and the order dated 29.10.1993 passed
  by the Second Additional District Judge in L.A.R. No.75
  of 1992 restored. [para 14] [771-C-F]
                         Case Law Reference:

G         1962 SCR 676          relied on            para 7
          1965 SCR 576          relied on            para 7

        CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    10863 of 2013.
H
    MADAN & ANR v. STATE OF MAHARASHTRA                         765


    From the Judgment and Order dated 09.09.2008 of the                 A
High Court of Bombay at Aurangabad in FA No. 641of1994.

    Sudhanshu S. Choudhari, Mahesh Deshmukh for the
Appellants.
                                                                        B
    Anirudh P. Mayee, Asha Gopalan Nair for the Respondent

    The Judgment of the Court was delivered by

     RANJAN GOGOi, J. 1. Leave granted.

     2. This appeal is directed against the judgment and order          C
dated 09.09.2008 passed by the High Court of Bombay at
Aurangabad holding the Reference made by the Collector
under Section 18 of the Land Acquisition Act, 1894 (hereinafter
referred to as "the Act") to be barred by limitation. The High          D
Court, accordingly, reversed the Award dated 29.10.1993
passed by the Reference Court granting enhanced
compensation to the appellants. Aggrieved, this appeal has
been filed.

    3. The brief facts of the case may be usefully recited as           E
hereunder:

     Acquisition of a total area of 8 Hectares 40 Ares covered
by Survey No.49 situated at village Phule Pimpalgaon in Taluka
Majalgaon of Beed District was initiated by a Notification under        F
Section 4 of the Act which was published in the gazette on
13.03.1980. No objection under Section 5A of the Act was filed
by any person interested. Consequently, the Notification under
Section 6 of the Act was published on 18.04.1982 and an
Award was passed on 16.08.1985 granting compensation at                 G
the rate of Rs.50/-, Rs.65/- and Rs. 75/- per Are respectively for
different categories of land classified as Grade I, II and 111 in the
Award. As there was a dispute with regard to the ownership of
the land, the Collector (Special Land Acquisition Officer)
referred the matter to the civil court for apportionment of             H
    766     SUPREME COURT REPORTS               [2013] 12 S.C.R.


A compensation under Section 30 of the Act. The Reference
  under Section 30 made by the Collector which was registered
  and numbered as L.A.R. No. 94/1985 came to be disposed of
  by the learned Second Additional District Judge, Beed on
  4.9.1991 holding that the present appellants (claimants 1 and
B 2) are entitled to compensation in respect of 20 acres of the
  acquired land and the remaining parties (claimants 3 to 7) for
  compensation in respect of remainder of the acquired land.

       4. It appears that after the order dated 4.9.1991 was
C passed in the Reference under Section 30 of the Act, the
  appellants received the compensation on 5.9.1991. Though the
  precise date is not available, within six weeks from the date of
  the order dated 4.9.1991 the appellants sought a Reference
  under Section 18 of the Act for enhancement of the
D compensation awarded. The aforesaid Reference which was
  numbered as L.A. R. No. 75/1992 was decided by the Second
  Additional District Judge, Beed by order dated 29.10.1993
  enhancing the compensation amount by an additional sum of
  Rs.2, 10,000/- along with solatium, interest etc. as due under
E different provisions of the Act.

        5. Aggrieved by the aforesaid Award dated 29.10.1993,
  the State of Maharashtra filed an appeal before the High Court
  questioning the enhancement of the compensation awarded
  and also contending that the Reference made was barred by
F limitation in view of the provisions of Section 18(2) of the Act.
  The High Court by the impugned order dated 09.09.2008
  decided the appeal only on the issue of limitation by holding
  the same to be time barred. Accordingly, the appeal filed by
  the State was allowed and the Award passed by the Second
G Additional District Judge in L.A.R.No.75/1992 was reversed.

        6. We have heard Mr. Sudhanshu S. Choudhary, learned
    counsel for the appellants and Mr. Anirudh P. Mayee, learned
    counsel appearing on behalf of the respondent-State.
H
     MADAN & ANR v. STATE OF MAHARASHTRA                     767
               [RANJAN GOGOi, J.]
     7. Learned counsel for the appellants has vehemently            A
urged that from the materials placed on record it is evident that
the appellants did not participate in the enquiry leading to the
Award dated 16.08.1985 passed by the Land Acquisition
Collector. No notice of the Award under Section 12(2) of the
Act was served on the appellants either. It is pointed out that      B
the appellants became entitled to receive compensation under
the Award only on 4.9.1991 i.e. the date of the order of the court
in the Reference made under Section 30 of the Act. Such
compensation was received by the appellants on 5.9.1991.
Thereafter, the application for Reference under Section 18 of        C
the Act was made within the period of 6 weeks from the date
of the order passed under Section 30 of the Act. Relying on
the decision of this Court in Raja Harish Chandra Raj Singh
 Vs. The Deputy Land Acquisition Officer & Anr1• learned
counsel has urged that the date of knowledge of the Award            o
referred to in Section 18(2), in the present case, has to be
understood to be 4.9.1991 i.e. the date of the order under
 Section 30 of the Act. If that be so, according to the learned
counsel for the appellants, the High Court was clearly in error
 in holding the Reference under Section 18 of the Act to be          E
barred by limitation. Another decision of this Court in Dr. G.H.
 Grant Vs. The State of Bihaf has been relied onto emphasize
the true purport of Sections 18 and 30 of the Act.

      8. Controverting the submissions advanced on behalf of         F
the appellants, learned counsel for the State has contended that
the appellants having claimed to be the owners of the land were
at all times aware of the land acquisition proceeding leading
to the Award dated 16.08.1985 passed by the Collector.
According to the learned counsel for the State, the appellants,      G
therefore, should have sought a Reference under Section 18
within the time prescribed by Section 18(2). In this regard,
learned counsel for the State has pointed out that even under
1.   AIR 1961 SC 1500.
2.   AIR 1966 SC 237.                                                H
    768          SUPREME COURT REPORTS               [2013] 12 S.C.R.


A Section 18 of the Act it is open to an aggrieved party to seek
  a reference on the question of apportionment of the Award. The
  Award in the present case having been passed by the Land
  Acquisition Collector on 16.08.1985, the Reference under
  Section 18 for enhanced compensation made in the year 1991
B is inordinately delayed and the conclusion of the High Court to
  the said effect is fully justified.

        9. For ready reference it may be convenient to set out
    hereinunder the provisions of Sections 18 and 30 of the Act:-
c         "18. Reference to Court.-(1) Any person interested who
          has not accepted the award may, by written application to
          the Collector, require that the matter be referred by the
          Collector for the determination of the Court, whether his
          objection be to the measurement of the land, the amount
D         of the compensation, the persons to whom it is payable,
          or the apportionment of the compensation among the
          persons interested.

          (2) The application shall state the grounds on which
          objection to the award is taken:
E
          Provided that every such application shall be made,-

           (a)    if the person making it was present or represented
                  before the Collector at the time when he made his
F                 award, within six weeks from the date of the
                  Collector's award;

           (b)    in other cases, within six weeks of the receipt of the
                  notice from the Collector under section 12, sub-
                  section (2), or within six months from the date of the
G                 Collector's award, whichever period shall first
                  expire."

          "30. Dispute as to apportionment-When the amount
          of compensation has been settled under section 11, if any
H         dispute arises as to the apportionment of the same or any
    MADAN & ANR v. STATE OF MAHARASHTRA                        769
              [RANJAN GOGOi, J.]
     part thereof, or as to the persons to whom the same or any        A
     part thereof, is payable, the Collector may refer such
     dispute to the decision of the Court."

      10. From the order dated 29.10.1993 passed in L.A.R. No.
75/1992, it is, inter alia, clear that there was a dispute amongst     8
the land owners (the appellants are one set of such land owners)
in respect of their respective shares in the acquired land on
account of which no apportionment of compensation was made
by the Collector who made a Reference under Section 30 of
the Act to the court. Further, in the order dated 29.10.1993 it        C
is recorded that the appellants had no knowledge of the Award
till the order dated 4. 9.1991 came to be passed in the
Reference under Section 30. In Raja Harish Chandra Raj
Singh (supra) this Court has held that the expression "the date
of the award" used in proviso (b) to Section 18(2) of the Act
                                                                       0
must be understood to mean the date when the award is either
communicated to the party or is known by him either actually
or constructively. It was further held by this Court that it will be
unreasonable to construe the words "from the date of the
Collector's award" used in the proviso to Section 18 in a literal      E
or mechanical way. In the present case, it has already been
noticed that a finding has been recorded by the Reference
Court in its order dated 29.10.1993 that "the petitioners had
no knowledge about the passing of the award till the date of
payment of compensation on 5.9.1991 because they were                  F
held entitled to receive the compensation after the decision
of Reference under Section 30 dated 4.9.1991."

     11. What transpires from the above is that it is for the first
time on 4.9.1991 (date of the order under Section 30 of the Act)
that the appellants came to know that they were entitled to            G
compensation and the quantum thereof. It is not in dispute that
the Reference under Section 18 was made within 6 weeks from
the said date i.e. 4.9.1991. In the above facts, it is difficult to
subscribe to the view taken by the High Court to hold that the
Reference under Section 18 was barred by limitation.                   H
     770      SUPREME COURT REPORTS                [2013] 12 S.C.R.

 A        12. A cursory glance of the provisions of Sections 18 and
    30 of the Act, extracted above, may suggest that there is some
    overlapping between the provisions inasmuch as both
    contemplate reference of the issue of apportionment of
    compensation to the Court. But, a closer scrutiny would indicate
  B that the two Sections of the Act operate in entirely different
    circumstances. While Section 18 applies to situations where
    the apportionment made in the Award is objected to by a
    beneficiary thereunder, Section 30 applies when no
    apportionment whatsoever is made by the Collector on account
  C of conflicting claims. In such a situation one of the options open
    to the Collector is to make a reference of the question of
    apportionment to the Court under Section 30 of the Act. The
    other is to relegate the parties to the remedy of a suit. In either
    situation, the right to receive compensation under the Award
· D would crystallize after apportionment is made in favour of a
    claimant. It is only thereafter that a reference under Section 18
    for enhanced compensation can be legitimately sought by the
    claimant in whose favour the order of apportionment is passed
    either by the Court in the reference under Section 30 or in the
  E civil suit, as may be.

        13. The decision of this Court in Dr. G.H. Grant Vs. The
   State of Bihar (supra) would also support the above conclusion.
   In the aforesaid case, an Award was made by the Collector on
 F 25.3.1952. On 5.5.1952, the owner applied under Section 18
   for a Reference to the court for enhancement of the
   compensation payable to him. While the matter was so situated,
   by notification dated 22.5.1952 issued under Section 3 of the
   Bihar Land Reforms Act, 30 of 1950, the estate of the owner
 G vested in the State. The possession of the land was taken over
   on 21.08.1952 under Section 16 of the Act. On 15.10.1952, a
   Reference under Section 30 was sought on behalf of the State.
   After noticing the different situations in which the provisions of
   Sections 18 and 30 of the Act would apply, this Court
 H proceeded to hold the Reference sought by the State of Bihar
   MADAN & ANR v. STATE OF MAHARASHTRA                  771
             [RANJAN GOGOi, J.]
under Section 30 of the Act to be competent in law on the A
ground that after the award was passed by the Collector the
land had vested in the State by virtue of the notification dated
22.5.1952 under Section 3 of the Bihar Land Reforms Act,
1950. On a logical extension of the principle laid down in Dr.
G.H. Grant Vs. The State of Bihar (supra) the State would have B
been entitled in law to claim enhanced compensation under
Section 18 of the Act once its entitlement to receive such
compensation is to be decided in its favour under Section 30.
This is what has happened in the present case.
                                                               c
     14. For the reasons aforesaid, we hold that the High Court
had erred in allowing the appeal filed by the State and reversing
the order dated 29.10.1993 passed by the Second Additional
District Judge, Beed. The award of compensation in the instant
case having been made by the Collector as far back as in the D
year 1985 and the amount involved being exceedingly small we
have considered the basis on which enhancement of
compensation was made by the learned Reference Court in its
order dated 29.10.1993. On such scrutiny, we do not find any ·
error in the view taken by the learned Reference Court. E
Therefore, in the peculiar facts of the case, while allowing this
appeal and setting aside the order dated 09.09.2008 passed
by the High Court we deem it proper to restore the order dated
29.10.1993 passed by the Second Additional District Judge
in L.A.R. No.75 of 1995.
                                                               F
R.P.                                        Appeal allowed.