Judgment:
C.K.
Thakker, J.
The present appeal
is filed against the judgment dated March 14, 2000, of the High Court of
Judicature at Bombay (Nagpur Bench) in Writ Petition No. 810 of 1986. By
the said judgment, the High Court held that land acquisition proceedings
in respect of acquisition of land bearing Survey No. 187/3A, admeasuring
30 ares of Malkapur Town, District Buldhana had lapsed. Shortly stated,
the facts leading to the institution of present appeal are that the
appellant is a 'Society' registered on June 26, 1961 under the Societies
Registration Act, 1860. It is also registered as 'Public Trust' under
the Bombay Public Trusts Act, 1950 on August 17, 1962. The appellant is
running a school in Buldhana. It approached the Government requesting
for acquisition of land for school as also for garden. It appears that a
letter was written by the Under Secretary,
Revenue & Forest
Department, Government of Maharashtra to the appellant informing it
about acquisition of land of Survey Nos. 186 and 187 of Malkapur in
Buldhana District for public purpose, viz. for running a school by the
appellant. It was stated by the appellant that the respondent
authorities prepared Final Development Plan of Malkapur Town under the
Maharashtra Regional Town Planning and Development Act, 1966 wherein 59
ares of land of Survey No. 186/4A and 30 ares of land of Survey No.
187/3A was reserved for the purpose of school and open space for garden
for the appellant. A Resolution dated May 15, 1976 was also passed
giving sanction to the Development Plan. Necessary proceedings were
thereafter taken in accordance with law for the acquisition of land. So
far as acquisition of 59 ares of land of Survey No. 186/4A for school is
concerned, the question is no more under controversy. It had been
finalized and the challenge to the said acquisition failed. The High
Court in the impugned judgment has observed that in its opinion, "no
fault can be found with the award of the Land Acquisition Officer in
relation to 59 ares of land." To that extent, therefore, the petition
filed by the first respondent herein (original petitioner) came to be
dismissed. With regard to 30 ares of land of Survey No. 187/3A earmarked
for garden for the school, the contention of the first respondent
original petitioner was that the award had not been passed in accordance
with the provisions of Section 11A of the Land Acquisition Act, 1894
(hereinafter referred to as the 'Act') and the proceedings lapsed. The
said contention was upheld by the High Court and it was ruled that after
the final notification under Section 6 of the Act, award ought to have
been made within a stipulated period of two years as required by Section
11A which was not done and hence the proceedings lapsed. The judgment of
the High Court to the extent to which it held that the proceedings in
respect of 30 ares of land of Survey No. 187/3A had lapsed that the
appellant-Mandal is aggrieved and has challenged it by filing the
present appeal.
It is not in dispute
by and between the parties that proceedings had been initiated by the
authorities for acquisition of land of two Survey Nos. (i) Survey No.
186/4A admeasuring 59 ares of land for school; and (ii) Survey No.187/3A
admeasuring 30 ares of land for garden. It is also clear from the
decision of the High Court impugned in the present appeal that though
the first respondent had challenged land acquisition proceedings for
both Survey Nos., the High Court negatived all contentions as to
acquisition of land admeasuring 59 acres of Survey No. 186/4A and the
petition was dismissed. It was only for 30 ares of land of Survey No.
187/3A that the Court held that though the notification under Section 6
was published on July 2, 1986, no award was made within two years as
required by Section 11A of the Act and the proceedings had lapsed.
On July 28, 2000,
the matter was placed for admission-hearing. Notice was issued and
parties were directed to maintain status quo. On November 20, 2000,
leave was granted and interim relief was ordered to continue. The matter
has now been placed for final hearing.
We have heard the
learned counsel for the parties. Dr. Rajeev Dhawan, Senior Advocate
appearing for the appellant contended that the High Court has committed
an error of law as also of jurisdiction in holding that the proceedings
had lapsed under Section 11A of the Act. It was submitted that the Court
ought to have taken into account the fact that the acquisition was
challenged by the first respondent by instituting a Writ Petition which
was entertained by the High Court. In view of pendency of proceedings,
no award could be passed by the Land Acquisition Officer and Section 11A
of the Act had no application. It was also urged that on the one hand,
the first respondent challenged the proceedings and obtained interim
relief and on the other hand, it sought to contend that since the
proceedings could not be completed as required by law, they lapsed. Such
argument, submitted the counsel, would not lie in the mouth of the
person who had questioned the legality of the proceedings. It is settled
law that a party cannot take undue advantage of its own delay.
The High Court ought
to have appreciated the said fact and dismissed the petition. According
to the appellant, when the proceedings were pending in the High Court
and the matter was sub-judice, the Land Acquisition Officer was
justified in not passing an award. Once public purpose had been
established and notification under Section 6 of the Act had been issued,
it could not have been set at naught or nullified on a technical ground
that award had not been made within a particular period. It was,
therefore, submitted that the appeal deserves to be allowed by setting
aside the judgment of the High Court and by upholding the action of the
authorities that land acquisition proceedings were in consonance with
law. Learned counsel for the first respondent, on the other hand,
supported the judgment of the High Court. According to him, the language
of Section 11A is explicitly clear. It is bounden duty of the Land
Acquisition Officer to make award within two years from the date of
publication of declaration under Section 6 of the Act. Since it was not
done, the proceedings had lapsed. The counsel stated that admittedly the
proceedings were not stayed by the High Court. If it is so, Explanation
to Section 11A of the Act had no application and in computing the period
of two years under Section 11A, the period of pendency of Writ Petition
could not be excluded. He, therefore, submitted that the appeal deserves
to be dismissed.
Respondent Nos. 2
and 3, in their affidavit contended that after the notification under
Section 6 of the Act was issued, the first respondent approached the
High Court and challenged the acquisitions proceedings. In the light of
pendency of Writ Petition, the authorities did not proceed further with
the acquisition proceedings and the first respondent, who had challenged
the proceedings cannot take advantage of that situation. It was,
therefore, submitted that the High Court was in error in allowing the
petition.
The question before
this Court is as to whether the High Court was right in holding that
award which ought to have been made under Section 11A of the Act was not
made within the stipulated period. The learned counsel for both the
sides, in this connection, drew our attention to the relevant provisions
of law as also to the decisions of this Court.
Now it cannot be
gainsaid that every State has power of eminent domain, which is the
essential attribute of sovereignty. In exercise of the said power, the
State can acquire private property of its subjects for a public purpose.
The expression 'public purpose' is defined in Clause (f) of Section 3 of
the Act. Section 4 enables the 'appropriate Government' to issue
'preliminary notification' if it appears to such Government that any
land is needed or is likely to be needed for public purpose. Section 5A
of the Act then provides for hearing of objections against the proposed
acquisition. Section 6 empowers the 'appropriate Government' to issue
'final notification'. Such action, however, has to be taken after
considering the report, if any, submitted by the Collector under Section
5A of the Act. It also provides modes of publication of notification and
contains a provision in sub-section (3) that such declaration 'shall be
conclusive evidence that the land is needed for a public purpose'. The
law also provides for giving of notice to persons interested before
taking over possession of land as also for payment of compensation.
Section 11 of the Act deals with award of compensation by the Collector.
Section 11A, as inserted by the Land Acquisition (Amendment) Act, 1984
(Act 68 of 1984) prescribes the period within which an award should be
made by the Collector. The said section is material and may be quoted in
extenso :-
"11A. Period within
which an award shall be made (1) The Collector shall make an award under
Section 11 within a period of two years from the date of the publication
of the declaration and if no award is made within that period, the
entire proceedings for the acquisition of the land shall lapse:
Provided that in a
case where the said declaration has been published before the
commencement of the Land Acquisition (Amendment) Act, 1984 (68 of 1984),
the award shall be made within a period of two years from such
commencement.
Explanation. In
computing the period of two years referred to in this section, the
period during which any action or proceeding to be taken in pursuance of
the said declaration is stayed by an order of a Court shall be
excluded."
Section 12 of the
Act makes the award of the Collector final. We are not concerned with
other provisions of the Act in the present matter.Bare reading of
Section 11A leaves no room of doubt that the Collector is enjoined to
make an award within a period of two years from the date of publication
of declaration under Section 6 of the Act. "If no award is made within
that period, the entire proceedings for the acquisition of the land
shall lapse." Explanation to Section 11A, however, states as to how
period of two years should be counted. It clarifies that in computing
the period of two years referred to in the section, the period during
which any action or proceedings is stayed by an order of a court would
be excluded. Whereas it is contended by the first respondent that the
case on hand is governed by the main provision of Section 11A, the
argument of the appellant is that it is governed by the Explanation to
the said provision. Let us now consider the relevant decisions of this
Court on the interpretation of the provision.,
In Yusufbhai
Noormohmed Nendoliya v. State of Gujarat, (1991) 4 SCC 531, a
question came up for consideration before this Court probably for the
first time. In that case, proceedings under the Act had been initiated
for acquisition of land of the appellant and final notification under
Section 6 of the Act was issued on May 12, 1988. The land-owner
challenged the notification by filing a petition in the High Court of
Gujarat. A prayer was made for quashing the notification and acquisition
proceedings. During the pendency and final disposal of the Writ
Petition, interim relief of operation and implementation of the
notification was also sought. The High Court, however, granted limited
interim relief by restraining the authorities from taking possession of
the land pending the Writ Petition.
The Land Acquisition
Officer then issued a notice under sub-section (1) of Section 9 of the
Act for the purpose of determining compensation of land. The land-owner
in the inquiry inter alia contended that two years had lapsed after the
publication of final notification under Section 6 of the Act and, hence,
no award could be passed as the proceedings lapsed under Section 11A.
The contention of the land-owner, however, was rejected by the
Authorities. The said decision was challenged by the land-owner in the
High Court by filing another petition contending that there was no stay
of 'further proceedings' by the Court restraining the Authorities and
hence it was obligatory on the authorities to proceed further under the
Act. As it was not done, the award ought to have been made within two
years as required by Section 11A. As the award was not passed within a
period stipulated by Section 11A of the Act, it was barred by statutory
limitation and the proceedings lapsed. The High Court rejected the
contention observing that "the Explanation to Section 11A is not
confined to the staying of the making of the award pursuant to Section 6
of the notification, but it is widely worded and covers in its sweep the
entire period during which any action or proceeding to be taken in
pursuance of the declaration under Section 6, is stayed by a competent
court". The award, therefore, could not be said to have been passed
beyond the statutory period, concluded the High Court. The aggrieved
land-owner challenged the said decision in this Court.
This Court was
called upon to consider whether the High Court was right in invoking the
Explanation to Section 11A of the Act though limited interim relief was
granted qua possession only and had not stayed 'further proceedings'. On
behalf of the land-owner, reliance was placed on a decision of the High
Court of Kerala in S. Bavajan Sahib v. State of Kerala, AIR 1988 Ker 280
that the question of taking possession of the land arises only when an
award is passed under the Act except the cases covered by Section 17
(Cases of urgency). When Section 17 of the Act was not invoked, the case
would be governed by Section 11A of the Act and not by Explanation
thereto and if the award is not made within a period of two years from
the date of final notification under Section 6 of the Act, the
proceedings would lapse. This Court, however, negatived the contention,
disagreed with Kerala view and observed; "We find ourselves unable to
agree with the learned Single Judge of the Kerala High Court in the
aforesaid judgment". The Court then considered the scheme of the Act and
the phrase "any action or proceedings", to be taken in pursuance of the
notification and held that even if limited interim relief was granted,
the Explanation to Section 11A would apply.
Interpreting the
Explanation liberally, the Court stated;
"The said
Explanation is in the widest possible terms and, in our opinion, there
is no warrant for limiting the action or proceeding referred to in the
Explanation to actions or proceedings preceding the making of the award
under Section 11 of the said Act. In the first place, as held by the
learned Single Judge himself where the case is covered by Section 17,
the possession can be taken before an award is made and we see no reason
why the aforesaid expression in the Explanation should be given a
different meaning depending upon whether the case is covered by Section
17 or otherwise. On the other hand, it appears to us that Section 11-A
is intended to limit the benefit conferred on a land holder whose land
is acquired after the declaration under Section 6 is made to in cases
covered by the Explanation. The benefit is that the award must be made
within a period of two years of the declaration, failing which the
acquisition proceedings would lapse and the land would revert to the
land-holder. In order to get the benefit of the said provision what is
required, is that the land-holder who seeks the benefit must not have
obtained any order from a court restraining any action or proceeding in
pursuance of the declaration under Section 6 of the said Act so that the
Explanation covers only the cases of those land-holders who do not
obtain any order from a court which would delay or prevent the making of
the award or taking possession of the land acquired. In our opinion, the
Gujarat High Court was right in taking a similar view in the impugned
judgment."
In Government of T.N. & Anr. v. Vasantha Bai,
(1995) Supp (2) SCC 423, in a similar situation, this Court reiterated
the principle laid down in Yusufbhai and observed that while calculating
the period of limitation of two years for making an award under Section
11A of the Act, the period during which action or proceedings were
stayed by an order of the High Court would be excluded. It was held that
even if there was stay as to dispossession only, it would tantamount to
stay of further proceedings and the entire period had to be excluded.
In M. Ramalinga
Thevar v. State of T.N. & Ors.,
(2000) 4 SCC 322 : JT 2000 (5) SC 27, this Court held that as per
Explanation to Section 11A of the Act, the period of exclusion from time
is the period during which "any action or proceedings" to be taken in
pursuance of the said declaration is stayed. Undoubtedly, one of the
actions contemplated pursuant to the declaration under Section 6 is
taking possession of the land though, such action is a post award step
in normal circumstances. Nonetheless, it is one of the actions to be
adopted as a follow-up measure pursuant to the declaration envisaged by
Section 6 of the Act. Observing that the consequence mentioned in
Section 11A is a self-operating statutory process, the Court held that
it can operate only when the conditions specified therein conjoin
together. The consequences would step in only when there is fusion of
all the conditions stipulated therein. If there is any stay regarding
any of the actions being taken pursuant to the declaration then the
consequence of lapse would not happen.
This Court,
therefore, concluded:-
"Thus, the position is now well settled that even when dispossession
alone is stayed by the Court the period during which such stay operates
would stand excluded from the time fixed for passing the award, the
expiry of which would render the acquisition proceedings lapsed."
Recently, in
Bailamma (Smt.) @ Doddabailamma (dead) & Ors. v. Poornaprajna House
Building Coop. Society, (2006) 2 SCC 416 : JT 2006 (2) SC 108, it
has been held that period of stay of any action or proceedings taken in
pursuance of the declaration would take out the matter from the main
part to Section 11A of the Act attracting the Explanation to the said
section.The Court stated;
This Court
emphasized the fact that Section 11A was enacted with a view to prevent
inordinate delay being made by Land Acquisition Officer in making the
award which deprived owners of the enjoyment of the property or to deal
with the land whose possession has already been taken Delay in making
the award subjected the owner of the land to untold hardship. The
objects and reasons for introducing Section 11A into the Act were that
"the pendency of acquisition proceedings for long periods often causes
hardship to the affected parties and renders unrealistic the scale of
compensation offered to them" and "it is proposed to provide for a
period of two years from the date of publication of the declaration
under Section 6 of the Act within which the Collector should make his
award under the Act". The emphasis, therefore, was on the Collector
making his award within the period prescribed. However, the legislature
was also aware of the reality of the situation and was not oblivious of
the fact that in many cases acquisition proceedings were stalled by stay
orders obtained from courts of law by interested parties. It, therefore,
became imperative that in computing the period of two years, the period
during which an order of stay operated, which prevented the authorities
from taking any action or proceeding in pursuance of the declaration,
must be excluded. If such a provision was not made, an acquisition
proceeding could be easily defeated by obtaining an order of stay and
prolonging the litigation thereafter.
Explanation to
Section 11A was meant to deal with situations of this kind. The
explanation is in the widest possible terms which do not limit its
operation to cases where an order of stay is obtained by a land-owner
alone. One can conceive of cases where apart from land-owners others may
be interested in stalling the land acquisition proceeding. It is no
doubt true that in most of the reported decisions the party that
obtained the stay order happened to be the owner of the land acquired.
But that will not lead us to the conclusion that the explanation applied
only to cases where stay had been obtained by the owners of the land.
There may be others who may be interested in obtaining an order of stay
being aggrieved by the acquisition proceeding. It may be that on account
of development of that area some persons in the vicinity may be
adversely affected, or it may be for any other reason that persons in
the locality are adversely affected by the project for which acquisition
is being made. One can imagine many instances in which a person other
than the owner may be interested in defeating the acquisition
proceeding. Once an order of stay is obtained and the Government and the
Collector are prevented from taking any further action pursuant to the
declaration, they cannot be faulted for the delay, and therefore, the
period during which the order of stay operates must be excluded. In a
sense, operation of the order of stay provides a justification for the
delay in taking further steps in the acquisition proceeding for which
the authorities are not to blame.
Dr. Dhawan strongly
relied upon a decision of the Division Bench of the High Court of
Allahabad in Smt. Kamla Pandey v. Collector, Agra & Ors., 1989 AWC 686.
In that case, no award was passed within a period of two years from the
date of publication of final notification under Section 6 of the Act. It
was, therefore, contended on behalf of the land owner that the
acquisition proceedings had lapsed under Section 11A of the Act. The
Court, however, negatived the contention observing that it was a
'technical plea' and the omission on the part of the Authorities was
that the "Special Land Acquisition Officer did not determine the
compensation regarding the petitioner's plot" on the ground that the
question whether the property should be exempted from acquisition was
pending consideration before the State Government.
The Court then
stated :-
"The only question, therefore, that arises for consideration is whether
the petitioner himself had requested for exemption of the land from
acquisition or the Development Authority or the Collector on their own
requested the Government to exempt the same from acquisition. The normal
course of human conduct persuades us to think that it is the persons
whose land or houses are being taken away who would be interested in
getting the land exempted from acquisition. Ordinarily, no one likes
expropriation even if he might get compensation in lieu of acquisition.
We would, therefore, prefer to rely on the version of the Agra
Development Authority that it was the petitioner and others at whose
instance the matter was referred to the Government for the exemption of
their land. At any rate, there is nothing which might persuade us to
accept the petitioners' version in preference to that of the Agra
Development Authority."
It was also observed
that when the land owner himself contributed to the delay in making the
award by approaching the Government against acquisition, the proceedings
could not be quashed. The Court said:-
"The omission was
not a fraud on the statute but was clearly bona fide based on the
consideration that there was a move afoot for the release of the land
from acquisition. Moreover, the persons who would be hit by the quashing
of the acquisition proceedings are not before us. To quash the
proceedings in this state of things would not, in our considered view,
be appropriate. It would defeat the larger public interest if we were to
quash the proceedings on the technicality, assuming that the omission to
make an award in respect of the petitioners' land within time produced
the effect of vitiating the entire acquisition proceedings.
Apart from the fact
that the above decision has no binding effect, the question is no longer
res integra and had been finally settled by this Court in Yusufbhai and
reiterated from time to time. In our opinion, therefore, the above
decision is of no help to the appellant.In our considered opinion, Dr.
Dhawan is also not right in contending that as interim relief was
granted, the case was covered by Explanation to Section 11A and not by
the main provision of Section 11A. It is, therefore, necessary to
consider the nature of order passed by the High Court when the
acquisition proceedings were challenged by the first respondent. Now
from the record, it is clear that the first respondent filed Writ
Petition No. 810 of 1986 in the High Court on April 2, 1986. On April
30, 1986, the Court admitted the petition by issuing Rule and the
following order was passed:-
"Rule. To be put up
with connected matter. Rule on stay. Liberty to move Vacation Judge."
(Emphasis supplied)
It is, thus, clear
that the petition was admitted by issuing rule nisi. Rule was also
issued on stay. In our opinion, however, the learned counsel for the
first respondent is right in contending that the Court had not granted
stay against "any proceeding". Merely Rule was issued on the prayer of
stay made by the petitioner in the petition.
The matter then came
up before the Court on July 31, 1986 for hearing on Rule on stay and
following order was passed
"The respondent No.3 if proceeds with the construction of building that
will be subject to the decision of this petition."
Dr. Dhawan
vehemently contended that even if it is assumed for the sake of argument
that on April 30, 1986, no actual stay was granted by the Court, interim
relief was granted on July 31, 1986. He also drew our attention to the
communication of the order by the Registry to the appellant herein,
usually known as writ issued in pursuance of an Order passed by the
Court. The communication inter alia stated "Upon reading the petition of
the applicant presented to this High Court of Judicature Bombay on the
21st day of April, 1986 praying that to restrain the Respondent No. 2
and its institutions and its employees, agents, servants etc. from
changing the nature of the lands admeasuring 0.59 from Survey No. 186/4A
and 187/3A as referred by the Award purported to be dated 27.2.1986 in
Land Acquisition Case No. LAQ/Malkapur/4/1977-78 at Annexure-L are
concerned till the decision of this petition and further to refrain them
from making any construction on changes therein till the decision of
this petition "
Then quoting the
order of the Court, it was stated:-
"It is hereby accordingly directed that if you proceed with the
construction of building, that will be subject to the decision of this
petition."
Dr. Dhawan submitted
that it was an interim order communicated by the Assistant Registrar of
the High Court to the appellant.
Upon reading the writ also, there is no doubt in our minds that the
above communication by the Registry of the High Court did not state that
acquisition proceedings were stayed by the Court. The writ, in our
opinion, was in consonance with the order passed by the Division Bench
of the High Court and expressly stated that if the appellant will
proceed with the construction of building, it will be subject to the
decision of the petition. The above communication thus does not take the
case of the appellant anywhere.
It was then argued
by Dr. Dhawan that the Land Acquisition Officer was of the view that the
acquisition proceedings could not continue due to stay granted by the
Court and he proceeded to dispatch the relevant files to the Government
Advocate of the High Court. For that, the Counsel invited our attention
to the facts stated in the judgment that though there was no specific
order from the Court, a letter was issued by an Officer of the
Government Pleader to the Land Acquisition Officer to send the record of
the case. The Court, however, observed that the case file relating to
the land bearing Survey No. 187/3A was never sent by the Land
Acquisition Officer and the file which was sent related to acquisition
of land bearing Survey No. 186/4A. The appellant also referred to a
letter dated June 27, 2000 written by the President of the appellant-Mandal
to the Land Acquisition Officer seeking information on the file movement
of the acquisition proceedings in the High Court which was replied by
the Land Acquisition Officer vide his letter dated July 20, 2000 stating
therein that the proceedings were stayed by the High Court in Writ
Petition No. 810 of 1986. From the letter, it is clear that it pertained
to the proceedings of Survey No. 186/4A. But even otherwise, the order
passed by the Court was abundantly clear. No stay was granted by the
Court, and hence, it could not be said that Explanation to Section 11A
got attracted and such period would be excluded from computing the
period of two years.
It may also be
stated that the High Court decided the petition on March 14, 2000
whereas the letter on which reliance is placed by the appellant was
written by the appellant-Mandal to the Land Acquisition Officer on June
27, 2000 and the reply was sent by the Land Acquisition Officer on July
20, 2000 both after the disposal of the writ petition in the High
Court.In our opinion, therefore, the High Court was right in observing
that even if Order dated April 30, 1986, issuing Rule on stay would mean
that the Court had granted stay of proceedings, (though no stay was
granted on that date), the Rule on stay was disposed of on July 31, 1986
clarifying that any construction would be subject to the decision of the
petition. Thereafter there was no question of any stay in the matter and
as such the case was squarely covered by main part of Section 11A of the
Act.
It was urged that
the term 'stay' was interpreted by this Court very widely and it was
held that even if stay was limited to maintenance of status quo or
against dispossession of the owner, extension of period of limitation
would apply. There is no dispute about the said proposition of law. It
is also immaterial and irrelevant as to which party had obtained such
stay. The only question is whether there was any stay by the High Court.
In the case on hand, to us, the High Court was right and wholly
justified in holding that there was no stay of any proceeding and hence,
Explanation to Section 11A had no application. If it is so, it cannot be
held that the High Court had committed an error of law or misconstrued
Section 11A by holding that since award was not made within a period of
two years from the date of publication of final notification under
Section 6 of the Act, the proceedings lapsed. Since the order passed by
the High Court impugned in the present appeal by the appellant is in
consonance with law, the appeal deserves to be dismissed.
For the foregoing
reasons, we see no infirmity in the order of the High Court. The appeal
deserves to be dismissed and is accordingly dismissed, however, without
any order as to costs.
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