Holding

A party cannot be permitted to pay deficit court fees after filing the appeal; the valuation and court fee fixed at the time of filing are conclusive.

Summary

The appellants filed appeals under Section 54 of the Land Acquisition Act seeking compensation of Rs.75,000 per acre but paid court fees based on a lower valuation of Rs.60,000 per acre. After a separate case enhanced compensation to Rs.75,000, they applied to pay the deficit court fee to obtain the higher amount. The Karnataka High Court refused the application, holding that the valuation and fee fixed at the time of filing cannot be altered. The Supreme Court examined whether a party may later pay deficit court fees to claim higher compensation and held that permitting such a practice would be unhealthy and contrary to orderly litigation. Consequently, the Court affirmed the High Court’s refusal and dismissed the appeals.

Issues considered

Whether a party filing an appeal under Section 54 of the Land Acquisition Act may later pay deficit court fees to claim a higher compensation amount.

Legislation cited

Code of Civil Procedure, 1908s. Order 41
Court Fees Act
Land Acquisition Act, 1894s. 54

Subjects

Land acquisitionCompensationSection 54Court feeDeficit court feeAppeal valuationSupreme Court

Judgment

MR. M. GOVINDA RAJU A
v.
THE SPECIAL LAND ADDITIONAL LAND ACQUISITION
OFFICER AND ANR. ETC.

JULY 24, 1996
B
[K. RAMASWAMY AND G.B. PATTANAIK, JJ.]

Land Acquisition Act, 1894: Section 54.
.•
Code of Civil Procedure, 1908 : Order 4 I. c
Land Acquisition-Compensation-Appeal for enhancement
of-Memo of appeal-Landowner claiming compensation @Rs. 75,000 per
acre but paid Cowt fee @ Rs. 60, 000 per acre-Dwing pendency of appeals
compensation @ Rs. 75, 000 per acre granted by a Civil Judge in another
acquisition case-On that basis landowner filed application for pennission to D
pay deficit Cowt fe,,-Jfigh Cowt holding that since the appellants had
restlicted their claim only to Rs. 60, 000 and paid the court fee accordingly,
they were not entitled to make payment of the additional cowt fee and
compensation @.Rs. 75,000 per acre-Appeal-Held High Cowt was light in
refusing to pennit the claimants to pay the deficit cowt fee for award of E
enhanced compensation @ Rs. 75,000 per acre-A party makes a conscious
decision and fixes the valuation and the court fee is paid accordingly-It
would be unhealthy practice to keep on changing the valuation and then to
pay deficit cowt fee thereon.

Bhag Singh v. United Tenit01y of Chandigarh, [1985) 3 SCC 737; F
Schedule Caste Co-operative Land Owning Society Ltd., Bhatinda v. Union
of India & Ors., [1991] 1 SCC 174, distinguished.

Ruta Singh (dead) by Lrs. v. Union of India, (1995) 5 SCC 284, relied
on.
G
Ont Bhargava v. S.B. (Mrs.) & Ors., [1994] 4 SCC 662, referred to.

CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 4830-31
of 1994.

From the Judgment and Order dated 21.11.89 of the Karnataka High H
13
14 SUPREME COURT REPORTS [1996] SUPP. 4 S.C.R.

A Court in M.F.A. Nos. 727 and 728 of 1984.

C.S. Vaidyanathan, S.R. Setia and Shivram for the Appellant.

P.R. Ramasesh for Surya Kant and M.T. George for the Respon-
dents.
B
The following Order of the Court was delivered :

We have heard learned counsel on both sides.

These appeals arise from the judgment of the Division Bench of the
•.
c Karnataka High Court made on November 21, 1989 in MFA No. 2114/85
and batch. The only controversy raised and argued before us is : whether
the High Court was justified in refusing to permit the appellants to pay the
deficit court fees and to enhance the compensation @ Rs. 75,000 per acre?
The admitted facts are that notification under Section 4(1) of the Land
D Acquisition Act, 1894 (For short, the 'Act') was published on September
29, 1977 acquiring large extent of land by the Bangalore Development
Authority for the formation of a layout called "Byrasandra Tavarekere
Madiwala Scheme" (for short, 'BTM Layout'). The Land Acquisition Of-
ficer awarded compensation ranging from Rs. 10,000 to Rs. 16,000 per acre
in 1981. On reference by judgment dated October 18, 1985, the Civil Judge
E enhanced the compensation to Rs. 45,000 per acre. The appellants filed
the appeals in 1986 and though they valued the appeals at Rs. 75,000 per
acre, they paid court fee @ Rs. 60,000 per acre on the basis of which the
appeals came to be numbered. Subsequently, while the appeals were •
pending, it would appear that in another acquisition, the XVI Addi. City
F Civil Judge, Bangalore enhanced the compensation in respect of some
other lands @ Rs. 75,000 per acre and on that basis, the appellants filed
an application in August 1989 for permission to pay deficit court fee. That
application was directed to be posted along with the appeals. When they
came up before the Division Bench, it held that since the appellants had
G restricted their claim only to Rs. 60,000 and paid the court fee accordingly,
they are not entitled to make payment of the additional court fee and
compensation @ 75,000 per acre. Thus, these appeals.

Shri Vaidyanathan, learned senior counsel for the appellants, con-
tended that in Bhag Singh v. United Te11ito1y of Chandigarh, [1985] 3 SCC
H 737 referred to in Scheduled Caste Co-operative Land Owning Society Ltd.,
~ M. GOVINDA RAJU v. SPL LAND ADDL. LAND ACQN. OFFICER 15

Bhatinda v. Union of India & Ors., [1991] 1SCC174, though the appellants A
therein had filed LPA and had paid deficit court fee, they had reserved
the right to claim higher compensation and this Court had awarded higher
:)... compensation after condonation of delay in payment of deficit Court free.
That ratio was not upset by another three-Judge Bench in Schedule Caste-
Co-operative Land Ow11ing Society Ltd. case (supra). The ratio in the later
B
case was upheld by the Constitution Bench on reference in Buta Singh
(Dead) by Lrs. v. U11io11 of India, [1995] 5 SCC 284. Therefore, the appel-
]ants having kept the claim alive for higher compensation, though paid
deficit court fee, are entitled to make good the deficit court fee and to be
allowed higher compensation @ Rs. 75,000 per acre.
c
We find no force in the contention. It is true that in Bhag Singh's
case, the appeHants were directed to pay the deficit court fee and were
granted enhanced compensation. In that case, since some of the claimants
covered by same notification were given higher compensation and other
were denied, this Court appears to have proceeded on the premise to pay
D
~
them equal compensation. In Scheduled Caste Co-operative La11d Ow11ing
Society's case this court pointed out that whereas in that case, the parties
"1 allowed the appeals to become final in the former case, and the party filed
an appeal and kept the matter alive and denied the relief. In later case, no
opinion was expressed· in that behalf on keeping alive the claim, though no
court fee was paid. In Buta Singh's case, after the reference was answered E
by the Constitution Bench, similar situation had arisen therein. The parties
filed the appeal, paid the court fee paid at a particular amount and after
. the arguments were heard in the matter, they filed an application for
permission to pay the deficit court fee. The Division Bench did not permit
them and dismissed the petition. Dealing with that situation, this Court had
F
held that :

"The claim cannot be kept_ in uncertainty. If in a appeal under
Section 54 of the Land Acquisition Act, the amount is initially kept
low and then depending upon the mood of the appellate court,
. ~ payment of deficit court fee is sought to be made, it would create G
an unhealthy practice and would .become a game of chess and a
matter of chance. That practice would not be conducive and
proper for orderly conduct of litigation."

It would be seen that an appeal was filed under Section 54 of the H
16 . SUPREME COURT REPORTS [1996] SUP,P. 4 S.C.R.

A Act. The Memo of Appeal in terms of Order 41, CPC came to be raised
that the party is at liberty to determine what would be the rate at which
compensation would be payable for his acquired land. The relevant
provisions of the Court Fees Act, State Legislature prescribes the court ..,o
fees payable on money claims on the Memo of Appeal. When a party
chooses to value the appeal and court fees paid at a particular rate, it
B would be obvious that the party is seeking to determine the compensation,
in respect of his land, at the rate he claims, subject to determination by the
Court whether he would be entitled to the rate at which he valued the
appeal and laid the claims or would not at all be entitled etc. If higher
compensation is sought for, necessarily he has to pay court fee thereon.
c When higher amount was stated in Memo of Appeal but court fee was paid
at a lessor amount, it would be obvious that the appellant had valued and
restricted his claim to the extent to which the court fee had been paid.

The question arises : whether the party would be permitted to pay
the deficit court fee at a later stage on the difference of the amount claimed
D in the appeal? As indicated earlier, party makes a conscious decision and ...
fixes the valuation and the court fee paid; it would be unhealthy practice
~
and it will not be conducive to encourage the practice to keep on changing
the valuation and then lo pay deficit court fee thereon. As seen, after the
appeal was filed by the appellants they claimed compensation@ Rs. 75,000
E but paid the court fee at Rs. 60,000 per acre. After the Civil Judge in
another case had enhanced the compensation, they came forward to claim
higher compensation on the basis of that judgment. It will not be conducive
to permit the parties to go on changing the valuation and giving permission
to pay the deficit court fee for higher compensation. The Division Bench,
therefore, was right in refusing to permit them to pay the deficit court fee
F to award enhanced compensation @ Rs. 75,000 per acre.

Om Blzargava v. S.B. (Mrs.) & Ors., [1994] 4 SCC 662 was pressed by
the learned counsel for consideration. In \1ew of the fact that this Court in
Bula Singh 's case had laid the above principles per incuriam, it is not
necessary for us to go into the same that being not a good law.
G "'
The appeals are accordingly dismissed. No costs.

T.N.A. Appeals dismissed.