Bombay High Court Allows Appeal by Konkan Railway Corporation in Land Acquisition Compensation Case — Remands Matter for Fresh Adjudication on Merits. Non-joinder of Acquiring Body as Party in Land Reference Proceedings Held Fatal to Award-Decree.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

The case involves a land acquisition for the Konkan Railway project. The Special Land Acquisition Officer acquired 78.40 Ares of land from the respondent-claimant, Manohar Shankar Parkar, on 31.3.1994. The claimant received the award amount under protest on 31.8.1994 and filed a land reference before the Special Land Acquisition Officer, which was referred to the Civil Judge, Senior Division, Ratnagiri, and numbered as Land Reference No.29 of 1995. The Civil Judge decided the reference on 23.3.2001, directing that the claimant was entitled to compensation at Rs.7,500/- per Are, totaling Rs.5,88,000/-, plus 12% component from 22.4.1991 to 31.3.1994, and 6% per annum interest from 31.3.1994 till realization, after deducting the already paid amount of Rs.2,80,833/-. The Konkan Railway Corporation Ltd., the acquiring body, was not made a party to the land reference proceedings. Consequently, they filed an appeal along with a leave application, which was granted by the High Court on 14.2.2003. The High Court heard the appeal and found that the award-decree was passed without giving the acquiring body an opportunity to be heard. The Court set aside the award-decree and remanded the matter to the Civil Judge, Senior Division, Ratnagiri, for fresh adjudication after impleading the appellant and allowing them to contest the compensation. The Court directed that the proceedings be expedited and disposed of within six months from the date of appearance of the parties.

Headnote

A) Land Acquisition - Compensation - Non-joinder of Acquiring Body - Land Acquisition Act, 1894 - The acquiring body, Konkan Railway Corporation Ltd., was not made a party to the land reference proceedings before the Civil Judge, Senior Division, Ratnagiri. The Court held that the award-decree passed in the absence of the acquiring body, which is a necessary party, cannot be sustained and must be set aside. The matter was remanded for fresh adjudication after impleading the appellant and giving them an opportunity to contest the compensation. (Paras 4-6)

B) Civil Procedure - Leave to Appeal - Non-party Appeal - Code of Civil Procedure, 1908 - The appellant, not being a party to the original proceedings, sought and obtained leave from the High Court to file the appeal. The Court granted leave on 14.2.2003, recognizing the appellant's interest as the acquiring body. (Para 5)

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Issue of Consideration

Whether the award-decree passed in a land reference proceeding is sustainable when the acquiring body (Konkan Railway Corporation Ltd.) was not impleaded as a party and was denied an opportunity of hearing.

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Final Decision

The appeal is allowed. The award-decree passed in Land Reference No.29 of 1995 by the Civil Judge, Senior Division, Ratnagiri, is set aside. The matter is remanded to the Civil Judge, Senior Division, Ratnagiri, for fresh adjudication after impleading the appellant (Konkan Railway Corporation Ltd.) as a party and giving them an opportunity to contest the compensation. The proceedings are to be expedited and disposed of within six months from the date of appearance of the parties.

Law Points

  • Land Acquisition
  • Compensation
  • Non-joinder of necessary party
  • Remand
  • Right to be heard
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Case Details

2005 LawText (BOM) (03) 78

First Appeal (ST) No.27278 of 2002 in Land Reference No.29 of 1995

2005-03-01

S.B. Mhase, D.B. Bhosale

Ms. Kiran Bhagalia for the appellants, Mr. B.G. Tangsali for the respondent (Org.Claimant)

Konkan Railway Corporation Ltd.

Manohar Shankar Parkar (Org.Claimant) and The Special Land Acquisition Officer, Ratnagiri (Referee)

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Nature of Litigation

Appeal against award-decree in land reference proceedings for compensation for acquisition of land for Konkan Railway project.

Remedy Sought

The appellant (Konkan Railway Corporation Ltd.) sought to set aside the award-decree passed in Land Reference No.29 of 1995 and to remand the matter for fresh adjudication after impleading them as a party.

Filing Reason

The appellant was not made a party to the land reference proceedings and was denied an opportunity to contest the compensation awarded.

Previous Decisions

The Civil Judge, Senior Division, Ratnagiri, by judgment dated 23.3.2001, awarded compensation of Rs.7,500/- per Are with 12% component and 6% interest, after deducting the amount already paid.

Issues

Whether the award-decree passed in the land reference is sustainable when the acquiring body was not impleaded as a party. Whether the matter should be remanded for fresh adjudication after giving the appellant an opportunity to be heard.

Submissions/Arguments

The appellant submitted that they were not a party to the land reference proceedings and were not heard before the award-decree was passed. The respondent-claimant did not object to the remand, as the appellant was a necessary party.

Ratio Decidendi

An award-decree passed in land reference proceedings without impleading the acquiring body, which is a necessary party, is not sustainable and must be set aside. The matter should be remanded for fresh adjudication after giving the acquiring body an opportunity to be heard.

Judgment Excerpts

The land of the respondent-claimant admeasuring 78.40 Are from Survey No. 26, Hissa No. 1/67/4/1 was acquired by the Special Land Acquisition officer on 31.3.1994 for the Konkan Railway project. This court by order dated 14.2.2003 granted leave to file this appeal. The learned Advocate for the appellants submitted that the appellants were not party to the land reference proceedings and were not heard.

Procedural History

The Special Land Acquisition Officer acquired land on 31.3.1994. The claimant received award under protest on 31.8.1994 and filed a land reference, which was referred to the Civil Judge, Senior Division, Ratnagiri, as Land Reference No.29 of 1995. The Civil Judge decided the reference on 23.3.2001, awarding compensation. The Konkan Railway Corporation Ltd., not being a party, filed an appeal with a leave application. The High Court granted leave on 14.2.2003 and heard the appeal finally on 1.3.2005.

Acts & Sections

  • Land Acquisition Act, 1894:
  • Code of Civil Procedure, 1908:
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High Court Bombay High Court Allows Appeal by Konkan Railway Corporation in Land Acquisition Compensation Case — Remands Matter for Fresh Adjudication on Merits. Non-joinder of Acquiring Body as Party in Land Reference Proceedings Held Fatal to Award-Decree.
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