Supreme Court Allows Landowner Appeal in Land Acquisition Reference Case; No Court-Fee Required for Section 18 Application. Court Sets Aside Civil Court and High Court Orders Dismissing Reference for Deficit Court-Fee, Holding Land Acquisition Act, 1894 Is a Self-Contained Code.

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Case Note & Summary

The appeal by special leave arose from a land acquisition dispute under the Land Acquisition Act, 1894. The appellant owned part of the land notified for acquisition for the construction of 'Panzar Talaw'. The State of Maharashtra was the respondent. The notification under Section 4(1) of the Act was published on January 16, 1975. The Collector made his award under Section 11 on November 15, 1977, and notice of the award under Section 12 was served on the appellant on November 17, 1977. The appellant sought a reference under Section 18 challenging the amount of compensation, measurement of land, or the person to whom compensation was payable. The Collector made the reference to the civil court. During the reference proceedings, counsel for the State raised a preliminary objection that the reference was not maintainable because the requisite court-fee had not been paid within the limitation of six weeks from the date of receipt of the notice of award, as required under clause (b) of the proviso to sub-section (2) of Section 18. The civil court upheld this objection and dismissed the reference. The Bombay High Court dismissed the appellant's appeal by judgment dated 27th to 29th April, 1982. The only question before the Supreme Court was whether a claimant is required to pay court-fee on an application seeking reference under Section 18. The appellant contended that no court-fee was required under the Act; the State argued that non-payment within limitation made the reference invalid. The Supreme Court observed that the Land Acquisition Act is a self-contained Code and does not speak of payment of any court-fee. What is required under Section 18(2) is only a written application with the necessary particulars, to be made within the limitation prescribed in clause (a) or (b) of sub-section (2). Non-payment of deficit court-fee, though wrongly made by the appellant, was not necessary. The owner or person interested is not enjoined under law to pay any court-fee on an application made under Section 18(1) seeking reference for determination of compensation. The civil court and the High Court committed a grave error of law in rejecting the appellant's claim. The Supreme Court allowed the appeal, set aside the orders of the courts below, and directed the civil court to proceed to determine the compensation according to law. No costs were awarded.

Headnote

A) Land Acquisition - Reference Under Section 18 - No Court-Fee Payable - Land Acquisition Act, 1894, Sections 4(1), 11, 12, 18(1), 18(2) - The Collector made an award under Section 11 and reference was sought under Section 18 to challenge compensation. The civil court dismissed the reference on a preliminary objection that deficit court-fee was not paid within six weeks from receipt of notice of award under Section 18(2)(b) proviso. The Supreme Court held that the Land Acquisition Act is a self-contained Code and does not require payment of any court-fee for an application under Section 18(1); only a written application with particulars within the prescribed limitation under clauses (a) or (b) of Section 18(2) is necessary. Non-payment of deficit court-fee is not a necessary condition for a valid reference. Accordingly, the orders of the civil court and High Court were set aside and the civil court directed to determine compensation according to law. Held that the owner or person interested is not enjoined under law to pay any court-fee on the application made under Section 18(1) (Para 1).

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Issue of Consideration

Whether the claimant is required to pay court-fee on an application seeking reference under Section 18 of the Land Acquisition Act, 1894.

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Final Decision

Appeal allowed; orders of civil court and High Court set aside; civil court shall proceed to determine compensation according to law; no costs.

Law Points

  • Land Acquisition Act
  • 1894 is a self-contained code
  • no court-fee is required on an application under Section 18(1) seeking reference
  • only a written application with particulars within limitation under Section 18(2)(a) or (b) is necessary
  • non-payment of deficit court-fee is not a necessary condition
  • civil court and High Court erred in rejecting claim for determination of compensation
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Case Details

1995 LawText (SC) (10) 22

1995-10-31

K. Ramaswamy, B.N. Kirpal

1996 SCC (1) 289 : JT 1995 (8) 157 : 1995 SCALE (6)303

Kashi Ram Namdeo Zambro

State of Maharashtra

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Nature of Litigation

Appeal by special leave against High Court judgment upholding civil court dismissal of reference under Section 18 of Land Acquisition Act, 1894 for non-payment of court-fee within limitation.

Remedy Sought

Appellant sought to set aside orders of civil court and High Court and for the civil court to proceed to determine compensation according to law.

Filing Reason

Civil court and High Court held reference under Section 18 not maintainable because requisite court-fee was not paid within six weeks from receipt of notice of award as required under clause (b) of proviso to Section 18(2).

Previous Decisions

Collector made award under Section 11 on November 15, 1977; reference made to civil court; civil court upheld preliminary objection and dismissed reference; Bombay High Court dismissed appeal on 27-29 April 1982.

Issues

Whether the claimant is required to pay court-fee on an application seeking reference under Section 18 of the Land Acquisition Act, 1894.

Submissions/Arguments

State contended that the reference application was not maintainable because the requisite court-fee was not paid within six weeks from the date of receipt of notice of award as required under clause (b) of proviso to Section 18(2). Appellant contended that the Land Acquisition Act does not require payment of court-fee for an application under Section 18(1) and that only a written application with particulars within the prescribed limitation is necessary.

Ratio Decidendi

The Land Acquisition Act, 1894 is a self-contained code and does not require payment of any court-fee on an application under Section 18(1) seeking reference to the civil court. Only a written application with particulars as required under Section 18(2) within the limitation prescribed under clauses (a) or (b) is necessary. Non-payment of deficit court-fee is not a necessary condition for a valid reference.

Judgment Excerpts

We are at a loss to understand that a claimant is required to pay ad valoram court fee on an amount awarded by the Collector under Section 11 for seeking reference under Section 18. The Act is a self-contained Code and it does not speak of payment of any court-fee. The owner or person interested is not enjoined under law to pay any court-fee on the application made under Section 18(1) seeking reference for determination of the compensation by the civil court etc.

Procedural History

Notification under Section 4(1) of Land Acquisition Act, 1894 published on January 16, 1975 for acquisition of land for construction of 'Panzar Talaw'; Collector made award under Section 11 on November 15, 1977; notice of award under Section 12 served on appellant on November 17, 1977; appellant filed application seeking reference under Section 18 and made good deficit court-fee; Collector made reference to civil court; during reference proceedings, State raised preliminary objection as to maintainability on ground of non-payment of court-fee within six weeks under Section 18(2)(b) proviso; civil court upheld objection and dismissed reference; Bombay High Court dismissed appeal by judgment dated 27th to 29th April, 1982; appellant filed special leave petition before Supreme Court.

Acts & Sections

  • Land Acquisition Act, 1894: Section 4(1), Section 11, Section 12, Section 18(1), Section 18(2)
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