Supreme Court Allows State Appeals in Land Acquisition Limitation Case; High Court's Direction to Make Reference Set Aside. Application Under Section 18 Land Acquisition Act Filed After Three Years Was Time-Barred Under Section 18(2) Read with Section 31, and High Court's Direction Was Illegal.

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Case Note & Summary

The dispute arose from land acquisition proceedings under the Land Acquisition Act, 1894. The State of Gujarat, as the acquiring authority, preferred appeals by special leave against the judgment of the High Court of Gujarat dated March 9, 1988, which had directed the State to make a reference to the civil court under Section 18 of the Act. The respondent claimants had sought a reference for enhancement of compensation. The Land Acquisition Officer passed an award under Section 11 of the Act on June 26, 1981, and issued notice under Section 12(2) on September 18, 1981. The claimants filed an application for reference under Section 18 on July 30, 1985, after a lapse of about three years from the award. The Land Acquisition Officer (Deputy Collector) rejected the application on December 16, 1985. The claimants then challenged the rejection in writ petition before the High Court. The High Court directed the State to make a reference. The State appealed to the Supreme Court, contending that the application was barred by limitation. The Supreme Court examined the provisions of Section 18(2) read with Section 31 of the Land Acquisition Act, 1894. The Court noted that after receipt of notice under Section 12(2), the claimants are required to file an application under Section 18 within 30 days from the date of the award when present or represented, or within six months from the receipt of the notice, whichever period first expires. In this case, since the notice was issued on September 18, 1981, the application should have been filed within six weeks from the date of the Collector's award or six weeks from the receipt of notice under Section 12(2), or within six months from the date of the Collector's award, whichever first expired. The application was filed after about three years, which was clearly beyond the prescribed period. The Supreme Court held that the direction issued by the High Court was clearly illegal. Accordingly, the appeals were allowed and the High Court's direction was set aside. No order as to costs.

Headnote

A) Land Acquisition - Limitation for Reference - Application under Section 18 of Land Acquisition Act, 1894 must comply with limitation under Section 18(2) read with Section 31 - Land Acquisition Act, 1894, Sections 11, 12(2), 18(2), 31 - The award was passed on June 26, 1981 and notice under Section 12(2) issued on September 18, 1981, but the application for reference was filed on July 30, 1985 after about three years. The High Court directed the State to make a reference, but the Supreme Court held that the application was barred by limitation as it was filed long after the expiry of the period specified in Section 18(2) read with Section 31. Held that the High Court's direction was clearly illegal and set aside, and the appeals were allowed with no costs (Paras Not mentioned).

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Issue of Consideration

Whether the High Court was justified in directing the appellant to make a reference to the civil court under Section 18 of the Land Acquisition Act, 1894 despite the application being filed beyond the period of limitation prescribed under Section 18(2) read with Section 31.

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Final Decision

The appeals were allowed; the High Court's direction to make a reference to the civil court was set aside. No costs.

Law Points

  • Application under Section 18 of Land Acquisition Act
  • 1894 must be filed within limitation under Section 18(2) read with Section 31
  • limitation period is 30 days from award if present or represented
  • or six months from receipt of notice under Section 12(2)
  • whichever first expires
  • filing after three years is barred
  • High Court direction to make reference is illegal.
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Case Details

1996 LawText (SC) (08) 76

Civil Appeal Nos. 1965-73 of 1989

1996-08-21

K. Ramaswamy, G.B. Pattanaik

1996 SCALE (6)270

The State of Gujarat

Gopalbhai Becharbhai

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Nature of Litigation

Writ petitions challenging rejection of application for reference under Section 18 of Land Acquisition Act by Deputy Collector.

Remedy Sought

The respondents/claimants sought a direction to the appellant to make a reference to the civil court under Section 18 of the Land Acquisition Act.

Filing Reason

The Land Acquisition Officer rejected the application for reference as time-barred; the claimants challenged the rejection in writ petition.

Previous Decisions

High Court of Gujarat directed the appellant to make a reference to the civil court; the State appealed by special leave.

Issues

Whether the application under Section 18 of the Land Acquisition Act, 1894 filed on July 30, 1985 was within the period of limitation prescribed under Section 18(2) read with Section 31, when the award was passed on June 26, 1981 and notice under Section 12(2) issued on September 18, 1981.

Ratio Decidendi

An application for reference under Section 18 of the Land Acquisition Act must be filed within the limitation prescribed under Section 18(2) read with Section 31: within 30 days from the date of award if present or represented, or within six months from the receipt of notice under Section 12(2), whichever period shall first expire. Filing after three years is barred and High Court's direction to make reference is illegal.

Judgment Excerpts

The controversy is no longer res integra. Since the application came to be filed a long, after about three years from the date of the award, the direction issued by the High Court is clearly illegal. The appeals are accordingly allowed. No costs.

Procedural History

Award under Section 11 of Land Acquisition Act passed on June 26, 1981; notice under Section 12(2) issued on September 18, 1981; application for reference under Section 18 filed on July 30, 1985; Land Acquisition Officer rejected application on December 16, 1985; writ petition filed; High Court of Gujarat directed appellant to make reference on March 9, 1988; State filed appeals by special leave; Supreme Court allowed appeals.

Acts & Sections

  • Land Acquisition Act, 1894: Section 11, Section 12(2), Section 18, Section 18(2), Section 31
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