Case Note & Summary
The State of Maharashtra appealed against a judgment and order dated 21st February 1992 passed by the Reference Court (Joint District Judge, Nashik) in Land Reference No.157 of 1982. The Reference Court had originally passed an award on 11th September 1984 enhancing the compensation for acquisition of the respondents' lands under the Land Acquisition Act, 1894. However, the original award did not grant any interest on the enhanced compensation. Subsequently, on 21st February 1992, the Reference Court passed a separate order purporting to correct its earlier award by directing the State to pay interest at 15% per annum from 19th February 1992 until the entire compensation amount was paid or deposited. The State challenged this order on the ground that the Reference Court had become functus officio after signing and pronouncing its award on 11th September 1984, and therefore had no jurisdiction to modify or alter the award. The High Court examined the provisions of the Land Acquisition Act, 1894, particularly Sections 18, 28, and 34, and the principle that a court becomes functus officio once its award is signed and pronounced. The Court noted that the only permissible corrections are clerical or arithmetical mistakes under Section 152 CPC or Section 13-A of the LA Act, and the impugned order did not fall within these exceptions. The High Court allowed the appeal, set aside the impugned order dated 21st February 1992, and restored the original award dated 11th September 1984. The Court held that the Reference Court had no jurisdiction to modify the award after it was signed and pronounced.
Headnote
A) Land Acquisition - Reference Court - Functus Officio - Once a Reference Court signs and pronounces its award under Section 18 of the Land Acquisition Act, 1894, it becomes functus officio and cannot modify or alter the award except for clerical or arithmetical mistakes under Section 152 CPC or Section 13-A of the LA Act. The Court held that the Reference Court erred in passing a subsequent order directing payment of interest at 15% p.a. from the date of the order until payment, as the original award did not grant any interest and the Court had no jurisdiction to review or modify its own award. (Paras 1-8)
B) Land Acquisition - Interest - Sections 28 and 34 of Land Acquisition Act, 1894 - The award of interest under Sections 28 and 34 is part of the compensation and must be determined at the time of the award. The Reference Court cannot later enhance the rate of interest or direct interest from a date not specified in the original award. The Court set aside the impugned order and restored the original award. (Paras 6-8)
Issue of Consideration
Whether the Reference Court, after passing an award under Section 18 of the Land Acquisition Act, 1894, has the jurisdiction to subsequently modify the award by directing payment of interest at a higher rate, especially when the original award did not grant such interest.
Final Decision
The High Court allowed the appeal, set aside the impugned judgment and order dated 21st February 1992 passed by the Reference Court, and restored the original award dated 11th September 1984. The Civil Application also stands disposed of.
Law Points
- Reference Court functus officio after signing award
- cannot modify award
- Land Acquisition Act 1894 Section 18
- Land Acquisition Act 1894 Section 28
- Land Acquisition Act 1894 Section 34
- interest on compensation
- correction of award only under Section 152 CPC or Section 13-A of LA Act
Case Details
2017 LawText (BOM) (05) 44
First Appeal No.615 of 1994 with Civil Application No.2548 of 1995
Dr. Shalini Phansalkar-Joshi, J.
Mr. Ameet Palkar, A.G.P., for the Appellant/Applicant-State. None for the Respondents-Claimants.
Raoji Ragho Dighe (Since Deceased) Through his Legal Heirs
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Nature of Litigation
Appeal against order of Reference Court modifying its earlier award to grant interest on enhanced compensation in land acquisition matter.
Remedy Sought
The State of Maharashtra sought setting aside of the Reference Court's order dated 21st February 1992 directing payment of interest at 15% p.a. from 19th February 1992 until payment.
Filing Reason
The Reference Court passed an order on 21st February 1992 purporting to correct its earlier award dated 11th September 1984 by directing payment of interest, which the State contended was without jurisdiction as the Court had become functus officio.
Previous Decisions
The Special Land Acquisition Officer made an award for acquisition of lands. The Reference Court, on a reference under Section 18 of the LA Act, passed an award on 11th September 1984 enhancing compensation but did not grant any interest. Subsequently, on 21st February 1992, the Reference Court passed an order directing payment of interest at 15% p.a. from 19th February 1992.
Issues
Whether the Reference Court, after passing an award under Section 18 of the Land Acquisition Act, 1894, has jurisdiction to subsequently modify the award by directing payment of interest at a higher rate?
Whether the Reference Court becomes functus officio after signing and pronouncing its award?
Submissions/Arguments
The Appellant-State argued that the Reference Court had become functus officio after passing the award on 11th September 1984 and had no jurisdiction to modify it on 21st February 1992. The only permissible corrections are under Section 152 CPC or Section 13-A of the LA Act, which were not applicable.
The Respondents-Claimants did not appear to contest the appeal.
Ratio Decidendi
A Reference Court under the Land Acquisition Act, 1894 becomes functus officio once it signs and pronounces its award under Section 18. It cannot subsequently modify or alter the award except for correcting clerical or arithmetical mistakes under Section 152 CPC or Section 13-A of the LA Act. The award of interest under Sections 28 and 34 is part of the compensation and must be determined at the time of the award; the Court cannot later enhance the rate or direct interest from a date not specified in the original award.
Judgment Excerpts
The challenge in this Appeal is to the Judgment and Order dated 21st February 1992 passed by the Reference Court of Joint District Judge at Nashik, thereby correcting its Award dated 11th September 1984 in Land Reference No.157 of 1982 and directing the State to pay the interest @ 15% p.a. from 19th February 1992 until the entire compensation amount is paid to the Respondents-Claimants or it is deposited in the Court.
Once the Reference Court has signed and pronounced the Award, it becomes functus officio. It cannot modify or alter the Award except for correcting clerical or arithmetical mistakes under Section 152 CPC or Section 13-A of the LA Act.
The impugned order dated 21st February 1992 is without jurisdiction and is liable to be set aside.
Procedural History
The State of Maharashtra acquired lands of the respondents under the Land Acquisition Act, 1894 vide notification dated 17th July 1980. The Special Land Acquisition Officer made an award. The respondents sought a reference under Section 18, which was decided by the Joint District Judge, Nashik, who passed an award on 11th September 1984 enhancing compensation but not granting interest. On 21st February 1992, the Reference Court passed an order directing payment of interest at 15% p.a. from 19th February 1992. The State appealed against this order to the High Court.
Acts & Sections
- Land Acquisition Act, 1894: Section 4, Section 18, Section 28, Section 34, Section 13-A
- Code of Civil Procedure, 1908: Section 152
