Supreme Court Allows Appeal in Land Acquisition Case, Orders Restoration of Reference Dismissed for Default. Ex-Parte Dismissal for Non-Appearance Was Improper as Notice Was Not Properly Served; CPC Provisions Apply Through Section 53 of Land Acquisition Act, 1894.

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Case Note & Summary

The dispute arose from land acquisition proceedings under the Land Acquisition Act, 1894. The appellant's lands were acquired for a public purpose, and the Land Acquisition Officer passed an award on November 15, 1973, determining compensation at Rs. 1,000 per acre. Dissatisfied with the award, the respondent sought a reference under Section 18 of the Act on April 29, 1974, which was made to the Additional District Judge, Raipur. The reference court issued notice to the appellant on July 1, 1975, but service was allegedly effected on February 2, 1976, although the notice bore no date and was not signed by witnesses. On February 10, 1976, the reference court set the appellant ex-parte and dismissed the reference for default with a nil award. The appellant then filed an application under Order 9 Rule 13 of the Code of Civil Procedure, 1908 to set aside the ex-parte order. The Civil Judge allowed the application, but the High Court in revision held that no restoration application lay and that the only remedy was an appeal under Section 54 of the Land Acquisition Act. The appellant appealed to the Supreme Court by special leave. The core legal question was whether the CPC provisions, particularly Order 9, applied to proceedings before the reference court under the Land Acquisition Act. Section 53 of the Act expressly provides that CPC provisions apply to all proceedings before the court under the Act unless inconsistent with the Act. The court found no inconsistency and held that the reference court is a civil court for this purpose. It further held that notice service under Section 20 is mandatory, and the appellant was not properly served because the notice was served on his father, who had died earlier. Consequently, the ex-parte order was invalid. On the appropriate remedy, the court ruled that the claimant could invoke Order 9 Rule 9 read with Section 151 CPC to set aside the dismissal, and an application under Order 9 Rule 13 could be treated as such. The court distinguished Deep Chand v. Land Acquisition Officer and State of Mizoram v. Biakchhawna, as they involved different factual and legal contexts. The Supreme Court allowed the appeal, set aside the High Court's order, and restored the Civil Judge's order restoring the reference, with no order as to costs.

Headnote

A) Land Acquisition - Applicability of CPC - Section 53 Land Acquisition Act, 1894 - The provisions of the Code of Civil Procedure, 1908 apply to all proceedings before the court under the Land Acquisition Act, 1894 unless inconsistent with the Act. The court examined Section 53 and held that there is no inconsistency between the Act and CPC regarding restoration of a reference dismissed for default, so CPC remedies are available to the claimant. Held that the order dismissing reference for default was not an award and could be set aside through CPC provisions (Paras Not mentioned)

B) Land Acquisition - Notice Service - Sections 19, 20 Land Acquisition Act, 1894 - The court has a mandatory duty to cause notice served on all persons interested, including the claimant, before proceeding to determine objections. It was found that notice was served on the appellant's father who had died before the alleged service, so there was no proper service on the appellant. Held that the ex-parte order was vitiated because the appellant was deprived of an opportunity to be heard (Paras Not mentioned)

C) Civil Procedure - Restoration of Dismissed Reference - Order 9 Rule 9 read with Section 151 CPC - The appropriate remedy for a claimant to set aside an ex-parte dismissal for default of a land acquisition reference is an application under Order 9 Rule 9 read with Section 151 CPC. The court held that an application under Order 9 Rule 13 can be treated as one under Order 9 Rule 9 read with Section 151 CPC. The award under Section 26(2) is a decree and appeal under Section 54 is dealt with under Order 41 CPC (Paras Not mentioned)

D) Precedent - Distinguishing Earlier Decisions - Deep Chand (1994) 4 SCC 90; Biakchhawna (1995) 1 SCC 156; Hatkar (1995) 3 SCC 316 - None of the cited decisions applied to the facts. Deep Chand concerned an order under Section 49(1) which was neither a decree nor an award; Biakchhawna involved maintainability of a civil suit bypassing reference procedure; Hatkar involved amendment of a final decree under the 1984 Amendment Act. Held that those precedents were of little assistance to the State (Paras Not mentioned)

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Issue of Consideration

Whether application for restoration under Order 9 Rule 13 CPC is maintainable against ex-parte order dismissing land acquisition reference for default, or only appeal under Section 54 of Land Acquisition Act, 1894

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Final Decision

Appeal allowed; High Court order set aside; Additional District Judge's order restoring reference restored; no costs.

Law Points

  • Provisions of CPC apply to land acquisition proceedings unless inconsistent with Land Acquisition Act
  • 1894
  • notice service under Section 20 is mandatory
  • claimant treated as plaintiff upon service
  • ex-parte dismissal for default can be set aside under Order 9 Rule 9 read with Section 151 CPC
  • award under Section 26(2) is decree
  • appeal under Section 54 dealt under Order 41 CPC
  • Deep Chand and Biakchhawna not applicable
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Case Details

1996 LawText (SC) (07) 39

1996-07-25

K. Ramaswamy, G.B. Pattanaik

1996 SCALE (5)700

Shri Sahu, Shri Agnihotri

Rajmani

The Collector, Raipur

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Nature of Litigation

Appeal by special leave against High Court order holding that application for restoration of land acquisition reference dismissed for default did not lie under CPC.

Remedy Sought

Appellant sought setting aside of ex-parte order dismissing reference and restoration of case for hearing on compensation.

Filing Reason

Reference Court dismissed reference for default and nil award after alleged improper service; appellant had no opportunity to contest.

Previous Decisions

Additional District Judge allowed application under Order 9 Rule 13 CPC and set aside ex-parte order; High Court in revision held restoration application did not lie, only appeal under Section 54; hence appeal to Supreme Court.

Issues

Whether provisions of CPC apply to proceedings before reference court under Land Acquisition Act, 1894 Whether application under Order 9 Rule 13 or Order 9 Rule 9 read with Section 151 CPC is maintainable to set aside ex-parte dismissal of reference for default Whether only remedy available is appeal under Section 54 of Land Acquisition Act

Submissions/Arguments

Appellant: notice not properly served; within three days of knowledge filed application under Order 9 Rule 13; Additional District Judge rightly set aside; High Court view incorrect. State: reference court not a civil court; award not a decree; CPC provisions not applicable; Order 9 Rule 13 and Section 151 not available; only appeal under Section 54; relied on Deep Chand and Biakchhawna.

Ratio Decidendi

Provisions of CPC apply to land acquisition reference proceedings under Section 53 unless inconsistent; notice service under Section 20 is mandatory; ex-parte dismissal for default can be set aside by claimant under Order 9 Rule 9 read with Section 151 CPC; award under Section 26(2) is a decree.

Judgment Excerpts

Section 53 of the Act envisages that '[s]ave in so far as they may be inconsistent with anything contained in this Act, the provisions of the C.P.C. shall apply to all proceedings before the Court under this Act'. Accordingly we hold that an application under Order 9, Rule 9 read with Section 151, CPC is the proper remedy and procedure. It is settled law that the Statement under Section 19 in terms of the objection under Section 18 of the Act is not treated as a plaint.

Procedural History

Land Acquisition Officer passed award on 1973-11-15; respondent sought reference under Section 18 on 1974-04-29; Additional District Judge issued notice on 1975-07-01; on 1976-02-10 dismissed reference for default setting appellant ex-parte; appellant filed application under Order 9 Rule 13 CPC; Civil Judge allowed and set aside; State filed revision; High Court held restoration does not lie, only appeal under Section 54; appellant appealed to Supreme Court.

Acts & Sections

  • Land Acquisition Act, 1894: 2(d), 18, 19, 20, 22, 26(2), 53, 54
  • Code of Civil Procedure, 1908: Order 9 Rule 9, Order 9 Rule 13, Section 151, Section 2(3), Section 2(9), Order 41
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