Holding

Section 47 deems West Bengal to be substituted for Bihar, making it liable for the compensation decrees, while Section 17 requires certification for transfer of appeals; in its absence, the Patna High Court correctly retained jurisdiction.

Summary

Syedabad Tea Co. Ltd. owned three parcels of land in Bihar that were acquired by the State of Bihar in 1951 under the Land Acquisition Act. While the State of Bihar appealed the compensation awarded by the District Judge, the West Bengal (Transfer of Territories) Act, 1956 came into force, transferring the territory (and the lands) to West Bengal. Section 17 of that Act required that only appeals certified by the Chief Justice of the Patna High Court be transferred to the Calcutta High Court; no such certification was made, so the Patna High Court retained jurisdiction and dismissed the appeals. The State of Bihar then objected to execution of the compensation decrees, invoking Section 47, which deems West Bengal to be substituted for Bihar in all legal proceedings concerning the transferred property. The executing court upheld Bihar’s objection and dismissed the execution, a decision affirmed by the Patna High Court. The Supreme Court held that Section 47 creates a legal fiction binding West Bengal to the decrees, and that, absent certification, Section 17 does not require transfer of the appeals. Consequently, the Supreme Court allowed the appeal, set aside the lower courts' orders, and remanded execution against West Bengal.

Issues considered

Whether, under Section 17 of the West Bengal (Transfer of Territories) Act, 1956, pending appeals before the Patna High Court must be transferred to the Calcutta High Court in the absence of a certification by the Chief Justice.
Whether Section 47 of the same Act deems the State of West Bengal to be substituted for the State of Bihar in pending legal proceedings, thereby making West Bengal liable for compensation decrees.
Whether execution of the compensation decrees should be directed against the State of Bihar or the State of West Bengal.
Whether interest accrued on the compensation amount up to the date of service of notices should be disallowed.

Legislation cited

Code of Civil Procedure, 1908s. 47
Land Acquisition Act, 1894s. 18
West Bengal (Transfer of Territories) Act, 1956s. 17, s. 47, s. 48

Subjects

transfer of territoryjurisdictionlegal fictionsubstitution of partiesexecution of decreecompensationland acquisitionWest Bengal Transfer of Territories ActSection 17Section 47

Judgment

878
A
SYEDABAD TEA CO. LTD.
v.
STA TE OF BIHAR
November 30, 1982
•
[A.P: SBN, E.S. VBNKATARAMIAH AND R.B. MISRA, JJ.J

-
Interpretdtion of statUtes-Legal fiction-Should be carried to its logical
a end to achieve the desired result.

West Bengal (Transfer of. Territories) Act, 1956 Sections 17 and 47- {
Scope of.

In 1951 three pieces of land belonging to the appellant situated in Bihar
were acquired by the State of Bihar for a public purpose. When appeals against
0 the judgment of tbe District Judge enha,ncing the compensation payable in respect
of these lands were pending before the Patna High Court tho West Bengal
(Transfer of Territories) Act, 1956 came into force in consequenCe of which the
acquired lands stood transferred to the State Of West Bengal. The appeals pending
before the Patna High Court were, however, not trRnsferred to the Calcutta High
Court, nor was tbe State of West Bengal substituted in place of the State of Bibar.
The Patna'High Court dismissed the State's appeals.
E
In the execution petitions the appellant impleaded the State of Bihar as
the judgment~debtor but the State of Bi bar raised an objection tbat since the lands
were tlien situated in the State of West B!ngal it was th~t State which 'was liable
to pay the decretal amounts.

Upholding this contention the executing Court. dismissed the ~xecution .•
F petition. This was upheld by the High Court.

Allowing the appeal,

HELD: Section 17 of the Act enjoins that only such proceedings pending
in the High Court of Patna immediately before the appointed day as are certified
G by the Chi_ef Justice of that High Court hiiving regard to the pla~ of accrual of
the cause of act'ion and otber circumstances, have to be transferred to the High
Court of Calcutfa, which means that if th~re is no such certification th~y have to
be disposed of by the High Corirt of Patna even though' the cause of action might
have accrued in any ·part of the transferred territories as that court continues to
exercise jurisdiction over those cases. [862 E·G] ·
B
In the instant case since there was no such certificate the High Court of
Patna rightly disposed of the appeals. [882 G]
SYEDABAD TBA co. v. BiHAR ( Venkataramiah, 1) . 879

Under s. 47 of the Act the State of West Bengal should be deemed to.have A
,.J been substituted for the State of Bihar even though no such oi'der had been
passed. o~ a formal application for substitution. When the law says that some~
thing should be deemed to have been done, the legal fiction should be Carried to
its logical end to achieve the desired result .. The decrees must, there(ore,"'be
·deemed to .have been passed by the High Court -of Patna against the State of
West Bengal wheri the appeals were dismissed by the Patna High Court. ,. .
[882 H; 883 A-CJ ·e
By virtue of Section 47 the State of West Bengal would bo bound by tho
decrees or ordefs niade in re~pect of _matters referred to therein against.the·State
of Bibar both before a1id after the appointed day even though the" Sc~te ·Of -West
Bengal is not formally brought on record in the place of State of Bjhar. In all
such cases the State of Bihar should be considered as effectively representing the
State of West Bengal. [883 D'El ·
There is no merit in the submission that the interest 8.ccrued , on . the
amourits of compensation uptO-date or \ipto the date on which thO notices . were
served on the State of West Bengal should be d.isallowed. The e~ecuting court
· ~annot go behind the decree. 1883 B-C] · ·

. CIVIL APPELLATE JurusDiCTION : Civil ,Appeals Nos. 2563-l56S D
of 1969.

From the judgment and order dated the 17th May, 1968 of the
Patna High Court in Origillal Order Nos: 283-285 of 1963. . .
M.L. Lahoty, S.C. Patel and H. Roy for the Appellaat. E
G.S. Chatterjee, for the Respondent-State of Bengal.
I .
K.G. Bhagat Additional Solicitor General and D. Go/Ju,!lhan
for the Respondent, State of Bihar.

The Judgment of the Court was delivered by .F

VENKATARAMIAH, J. The question involved in these .three
.. appeals bf certificate relates to. the liability of the .State of Bihar to
pay the amount of compensation in respect of lands whi~h after their
acquisition by it under the Land Acquisition Act stood transferred
to ,the State of West Benga.l ul)der the Bihar and West Bengal
G
(Transfer of Territories) Act, 1956 (Act No. 40 of 1956 hereinafter
referred to as 'the Act').

" of these cases may be briefly stated ·thus : Three
The facts ;H
pieces of land belonging to the appellant which were situated in
village Madati in the District of Purnea in the State of Bihar were
sso SUP&lilliB COURT REPORfS [1983 J i s.c.a.

A acquired un<ler the pro~isions of the Land Acquisition Act by the
State of Bihar in the year 1~51 for a certain public purpose. After
the Land Acquisition Officer passed the awards in respect of the said
lands, the question of determination of proper compensation was
referred to the &District Judge, Purnea under section 18 of the Land
Acquisition Act at the instance of the appellant. The District Judge
B by his judgment and award dated May 7, 1954 enhanced the com·
pensation payable in each of the three cases. Against that judgment,
the State of Bibar filed three appeals before the High Court of Patna
in the year 1954. , When the appeals were pending before the High
Court the Act was passed and it came into force on the appointed
day i.e. November I, 1956. Under the Act, the area in which the
c acquired lands were situated stood transferred to the State of West
Bengal. The 'appeals were, however, not transferred to the Calcutta
High Court. The State of West Bengal was also .not substituted in
the place of the State of Bihar in the appeals. The appeals were
dismissed by the Patna High Court after bearing the counsel for the
State of Bihar on March 8, 1960. The appellant thereafter filed
D
execution ·petitions in the Court of the Additional District Judge
impleading the State of Bihar as the judgment debtor in 1961. The
State of .Bibar raised objections to the execution proceedings by way
of petitions under section 47 of the Code of Civil Procedure in
March, 1962 stating that its liability under the decree, had ceased by
E virtue of the provisions of the Act and that the State of West Bengal
within whose jurisdiction the acquired lands were situated was liable
to pay the decretal amounts. The executing court upheld the plea
of the State of Bihar and dismissed the ·execution petitions by its
·order dated July 9, 1963; ·The appellant preferred appeals against
.the orders of the executing. court before the High Couri of Patna.
F The said appeals were also dismissed. Hence these appeals. ·
' '
' '

It should be stated here that the State of West Bengal bad not
been impleaded as a party either in the executing court or in the
High Court. In these appeals by an order made by this Court in
the year 1972, the State of West Bengal was impleaded as a respoo·
dent in each of these cases. · ·
G
The decision in these appeals turns on the true construction of
the relevant provisions of the Act since it is not disputed that the
acquired lands are transferred to the State of We.st Bengal under the (
Act.. Section 47 of the Act reads :
H
· "47. Legal proceedings. -Where immediately before
the appointed day, the State of Bihar is a party to any legal
•
SYllDABAD TBA co. v. .BJHAR (Venkataramiah, J.) 8si.
proceedings with respect to any property rights or liabilities A
transferred to the State of West Bengal under this Act,· that
State shall be deemed to be substituted for the State of
Bihar as a party to th?se proceedings, or added as a party
thereto, as the case may be, and the proceeding~ may
continue accordingly."
B
Section .48 of the Act deals with the transfer of proceedings
·arising from the transferred territories and pending immediateiy
before the appointed day before a court (other than the High Court)
tribunal, authority .or officer in the State of Bihar to the correspon.-
ding court, tribunal, authority or officer in the State of West Bengal.
We are now concerned with the proceedings pending in the High c
Court. Section 17 of the Act is the relevant provision dealing with
them. It reads thus :

"17. Extension of jurisdiction of, and transfer of pro-
ceedings to, Calcutta High Court-

(If Except as hereinafter provided,
(a) the jurisdiction of the High Court at Culcutta, •
shall, as from the appointed day, extend to the
transferred territories ; and

(b) the High Court at Patna shall, as from that day,
E
hll;Ve no jurisdiction in respect of the transferred
territories. 1

(2) Such proceedings pending in the High Court at
Patna immediately before .the appointed day as are
certified by the Chief Justice of that High Court having F
regard to the place :or accrual of th'e cause of action
and other. circumstances, to be proceedings which
ought to be heard and decided by the High Court at
Calcutta shall, as soon as may be after such certifica-
tion, be transferred to the High Court at Calcutta.
G
(3) Notwithstanding anything contained in sub-sections (I)
and (2), but save as hereinafter provided, the High
-)
· Court at Patna shall have, and the High Court at
Calcutta shall not have, jurisdiction to eniertain, hear G
or dispose of appeals, applipations for lea.ve to appeal
to the Supreme Court, applications .for review anp
I

•
882 SUPREME couat REPORTS [!9831 1 s.c.a.

A other proceedings, where any such proceedings seek
any relief in respect of any order passed by the High
Court at Patna before the appointed day :

Provided that if, after such proceedings have been
entertained by the High Court at Patna, it appears to
. the Chief Justice of that High Court that they ought to
. B
be transferred to the High Court at Calcutta, he ·shall
order that they shall be so transferred· and such
proceedings shall thereupon be transferred accor-
dingly.

(4) Any otder made by the High Court at Patna :
c
(a) before the appointed day in any proceedings
·transferred to the High Court at Calcutta by virtue
of sub-section (2) or

(b) in any proceedings with respect tci which the High
D Court at Patna retains jurisdiction by virtue of
sub-section (3),

shall, for all purposes, have effect, not only as an order
of the High Court at Patna, but also as an order made
by the High Court at Calcutta."
E (underlining by us)

Sub-section (2) of section 17 of the Act states that only. such
proceedings pending in the High Court of Patna immediately before
the appointed day as are certified by the Chief Justice of that High.
Court having regard to the place of accrual of the cause of action
F and other circumstances, have to be transferred to the High Court at
Calcutta. It follows that [f there is no such certification, they have
to be disposed of by the High Court of Patna even though the cause
of action might have accrued in any part of the transferred terri-
torries as that court continues to· exercise jurisdiction over those
cases. In the instant case since .there was no such certificate, the
G High Court of Patna rightly disposed of the appeals. The liability,
however, would be that of the State of West Bengal because of
section 47 of the Act. The State of West Bengal should be deemed
to have been substituted for the State of Bihar even though no such
order had been passed on a formal application for substitution.
H When the law says that something should be deemed to have been
done in a given cease, the said legal fiction . should be carried to its
SYEDABAD TEA co. V. BIHAR (Venkataramiah, 1.) 883 .

logical end to achieve the desired result. The decrees must, therefore, A
be deemed to have been passed by the High Court of Patna against
the State of West Bengal when.the appeals were dismissed by the
Patna High Couri. It may be mentioned here that the State of
. West Bengal has not taken any steps to get those decrees revoked
till now before the Patna High Court· even though it had actual
notice of those proceedings when notices in these appeals were served
on it. It is also not contended by the State of West Bengal, and we
feel rightly, that the decrees are not binding on the State· of West

.. Bengal. The only submission' made on its behalf is ·that the interest.
that had accrued on the amount of compensation awarded by the
Court.upto date or at least upto the date on which the notices issued
. in these appeals were served on the State of West Bengal should be
c
disallowed. There is no merit in this submission.' The executing
court cannot go behind the decree. The judgment debtor bas to pay
the entire decretal amount.

By virtue of section 47 of the Act, the State of West Bengal
would be bound by the decrees or orders made in respect of matters
n
referred to therein against the State of Bihar before the appointed
day and also after the appointed day even though the State of West
Bengal is not formally brought on record in the place of the State of
Bihar. In all such cases the State of Bihar should be considered as
effectively representing the State of West Bengal. That is the true
E
effect of the 'deeming' provision con!ai_ned in that section. In this
situation /the executing ·court should have been directed by the High
Court to substitute the State of West Bengal in the place of the State
of Bihar in the execution petitions and to proceed to .execute the
decrees agains~ the State of West Bengal. ·

In view of the foregoing. these appeals are allowed, .the
F
judgments of the High Court and of the executing court are set aside
and execution applications are remanded to the executing court to
proceed with the execution. against the State of West Bengal after
substituting the State of West Bengal as the judgment debtil)in the
G
place of the State of Bihar. In the circumstances, the parhes shall
bear their costs throughout

P.B.R. Appeal al/qwed.

H