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- advocatemmmohan
- since 1985 practicing as advocate in both civil & criminal laws. This blog is only for information but not for legal opinions
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Thursday, February 9, 2012
Delay -6500- On the part of Government litigant - Condonation of - Land ceiling proceeding - Land Tribunal holding that declarants were holding lands in excess of the ceiling limit - Writ petitions challenging the order of Tribunal by declarants and also by State - Writ by declarants withdrawn - State's writ dismissed - Review filed by State alleging fraud on the part of declarant and the Secretary of Land Tribunal - Delay of 14 years in filing the Review - Dismissal of Review Petition - Special Leave Petition - Delay in filing of 6500 days against original order and 300 days against order in Review
Held: Delay, specially in cases where large tracts of land and large sums
of revenue involved, is done to protect unscrupulous litigants at the cost
of public interest/public exchequer - Courts though take liberal attitude
in delay by Government, yet such attitude can be extended upto a certain
limit - s.5 of Limitation Act must receive liberal construction so as to
advance substantial justice - In the instant case, in order to protect
public justice, delay condoned, subject to payment of exemplary cost of
Rs.10 Lakhs - SLP to be admitted subject to payment of the cost -
Limitation Act, 1963 - s.5 - Cost - Imposition of as a condition for
condonation of delay - Constitution of India, 1950 - Article 136 -
Admission of SLP, subject to payment of cost - Practice and Procedure -
Karnataka Land Reforms Act, 1961 - s.66(4) - Administration of justice.
G. Ramegowda, Major etc. v. The Special Land Acquisition Officer, Bangalore
AIR 1988 SC 897 - relied on.
State (NCT of Delhi) v. Ahmed Jaan 2008 (11) SCALE 455; Nand Kishore v.
State of Punjab 1995(6) SCC 614 - referred to.
Case Law Reference
2008(11)SCALE 455 Referred to. Para 15
1995 (6) SCC 614 Referred to. Para 16
AIR 1988 SC 897 Relined on. Para 19
CIVIL APPELLATE JURISDICTION : Special Leave Petiton (C ) Nos. 11398-11400
of 2009
From the Judgement and Order dated 07.11.1990 of the High Court of
Karnataka at Bangalore in W.P. No. 40425 of 1982, W.P. No. 10920 of 1983
and order dated 26.09.2007 in R.P. 817 of 2004 in WP No. 40425 of 1982, C/W
WP No. 10920 of 1983
Sanjay R. Hegde, for the Appellant(s).
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
SPECIAL LEAVE PETITON (C ) NOS. OF 2009
(Arising out of CC Nos. 3324-3326 OF 2009)
State of Karnataka ...Petitioner
Versus
Y. Moideen Kunhi( dead) by Lrs. And Ors. ...respondents
JUDGMENT
Dr. ARIJIT PASAYAT, J
1. The special leave petitions are directed against the judgment and order
dated 7.11.1990 in Writ Petition No.40425 of 1982 and Writ Petition
No.10920 of 1983 and order dated 26.9.2007 in Review Petition No.817 of
2004 passed by a learned Single Judge of the Karnataka High Court. It
appears that there is a delay of more than nearly 6500 days against the
original order and about 300 days so far as the review petition is concerned.
2. Before dealing with the question of delay it is necessary to take note
of the State's case before the High Court.
3. The records disclose that the agricultural lands to the extent of 50.89
acres, 30.00 acres, 462.00 acres, 3485.83 were purchased through registered
partnership firm M/s Y. Moideen Kunhi & Company. All the lands are sub-
divisions of Sy. No.146 of Neriya Village, Puttur Taluk.
4. The declaration under Section 66 (4) of the Karnataka Land Reforms
Act, 1961(hereinafter referred to as the `Act') was filed by the three
partners of the firm i.e.. respondent Nos. 1,2 and 3 herein for determination
of the excess holding. In the very declaration it is stated that the lands being
the plantation lands, are exempted under Section 104 of the Act. It is further
mentioned therein that all the declarants are the partners of the firm, having
1/3rd share in the properties purchased and that the declarants have furnished
the declaration without prejudice to their contentions that the provision of
the Act and the provisions of the Karnataka Ordinance No. 11 of 1975 are
not applicable to the aforesaid lands. The Land Tribunal, Belthangady by the
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order dated 27.9.1982, held that the declarants are holding the lands to an
extent of 368.16 acres in excess of the ceiling limit. The tribunal opined that
2820 acres are exempted lands. After deducting the tenanted lands and
exempted lands, the Tribunal ultimately held that an area of 530.16 acres has
to be taken into consideration for the purpose of determining excess holding.
After deducting 10 units for each of the declarants, the Tribunal held that an
area of 368.16 acres is the excess land. Thereafter the Land Tribunal suo
motu initiated review proceedings under Section 122 A of the Act for
reviewing its order dated 27.9.1982. The review proceedings were also
dropped on 10.11.1982.
5. The order of the Land Tribunal was questioned before the High Court
by the three declarants in W.P. no. 40425/1982. So also the State of
Karnataka challenged the order of the Land Tribunal by filing W.P. No.
10920 of 1983. During the course of hearing, the three declarants withdrew
W.P. No, 40425/1982. However, W.P. No. 10920/1983 filed by the State of
Karnataka was dismissed by the High Court on 7.11.1990 on merits holding
that there is no error in the order passed by the Land Tribunal.
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6. It was contended on behalf of the State that the Tahsildar being the
Secretary of the Land Tribunal should have sent the declaration filed under
Section 66 of the Act by the three declarants, to the Deputy Commissioner to
be dealt with under the provision of Section 79B of the Act, to consider the
question by the registered partnership firm is valid or not; instead he
proceeded to submit the report to the Land Tribunal which has no
jurisdiction to decide the question about the lands purchased by the firm, the
Tahsildar should not have been merely dependant upon the certificates of the
Cardamom Board and Rubber Board to conclude that the lands in question
are plantation lands, the Tahsildar has fraudulently prepared the inspection
report according to which he visited the lands in question within a day and
that he could not visit every nook and corner of the lands in question, that
the Land Tribunal should also not have entertained the declaration filed
under Section 66 of the Act as the lands have been purchased and held by
the registered firm, that the Tribunal also says that the members of the Land
Tribunal inspected the lands within one day, which is a make believe affair;
that the statement made before the High Court in W.P. No. 42774/1982 that
the excess lands have been surrendered, is also a fraud practiced on the
Court inasmuch as the declarants have not actually surrendered the excess
lands; that the learned Judge who decided W.P. No. 10920/1983 has opined
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that the Tahsildar being the Government official, there was no need to send
notice to the State or other officials, that when the Tahsildar who is directly
concerned with the case has practiced fraud, learned Judge should have
issued notice to the Deputy Commissioner or Revenue Secretary; that the
learned Judge while disposing of W.P. No. 10920/1983 has opined that the
declarants claim the lands not as partners but in their personal capacity
which is an error apparent on the face of the record as the declaration itself
has been filed as the partners of firm; that fraud vitiates everything and
therefore the order passed by the Tribunal as well as by the High Court in
W.P. No. 10920/1983 are null and void as they are obtained by the
declarants by practicing fraud. Therefore the review petition was filed.
7. Stand of the respondents on the other hand was that no fraud was
committed by the respondents or by the Secretary of the Land Tribunal.
Error of judgment cannot be equated to fraud and since there was a delay of
14 years in filing the review petition even after the Deputy Commissioner
allegedly discovered the alleged fraud on 10.2.2003 the delay in filing the
review petition which was in fact filed on 8.10.2004 has not been explained.
It was their stand that non filing of the appeal by the State will not amount to
fraud by the officials of the State.
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8. The High Court found that there was no element of fraud and,
therefore, the review petition was dismissed. However, liberty was given to
the State or the Tribunal to get the land to the extent of 368.16 acres
surrendered in accordance with law.
9. The State found that the allegation of fraud related to non surrender of
the land. Stand of the respondents was that lands were surrendered by the
declarants before the surveyor of the State who had accepted the possession.
The High Court accepted that the land was surrendered before the Tribunal
as is required under law. It was further observed that if the State felt that the
lands surrendered by the respondents are not suitable, it is open to the State
to initiate action under Section 67 (3A) of the Act. Liberty was given to the
Tribunal or the State to initiate steps for getting the land surrendered in
accordance with Section 67 by initiating necessary proceedings.
10. It is submitted by learned counsel for the appellant that this Court
while dealing with an application for condonation of delay especially those
filed by governments, has held that adoption of strict standard of proof
sometimes fails to protect public justice, and it would result in public
mischief by skilful management of delay in the process of filing an appeal.
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11. It is submitted that many government matters are delayed by either
the nature of the bureaucratic process or by deliberate manipulation of the
same by taking advantage of loopholes in the conduct of litigation.
12. By way of an example only reference is invited to Chapter 3 of a
report for the year 2003 of the Comptroller and Auditor General of India.
The chapter entitled REVIEW ON HANDLING OF APPEAL CASES IN
THE CENTRAL EXCISE DEPARTMENT reads in pertinent part as under:
3.5 Analysis of adverse decisions due to departmental lapses
3.5.1 Dismissal of Appeals on account of delay
in filing of appeals
13. As per instructions issued by the Board in October 1991, the
Commissioner of Central Excise, must ensure that all the documents
including the original certified copy of the CEGAT order, photocopies of
the order-in-original & order-in-appeal alongwith application for
condonation of delay are enclosed with the proposal sent to the Board for
filing civil appeal before the this court. The time limit prescribed for
review by the Commissionerate is 10 days from the date of receipt of
certified copy of the order. The processing of case at the Board's office
includes drafting, vetting and finalisation of appeal. The jurisdictional
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Commissioner within 60 days may file the appeal from the date of receipt
of the CEGAT orders in the Commissionerate of Central Excise.
14. Test check of the records, in 16 Commissionerates of Central Excise,
revealed that 32 appeals filed by the department involving revenue of
Rs.50.41 crore were dismissed by this Court and 3 cases involving Rs.2.00
crore by CEGAT on account of abnormal delays in filing of the appeals.
Audit scrutiny revealed that delays had occurred at all the stages viz. receipt
of certified copy, submission of papers to the Board, examination of papers
at Board's office, drafting of appeal by the Panel Counsel; and filing of
appeal by the CCE. The total period of delay varied. from 119 to 691 days.
Some of the illustrative cases are discussed below: -
(i) Delay by Panel Counsel
The CEGAT set aside (March 1997) an order issued by CCE in April
1992 confirming demand of Rs.29.13 crore and penalty of Rs.2 crore,
against M/s. National Organic Chemicals. India Limited, in Mumbai VI
Commissionerate of Central Excise, for invoking Section 11A without
adequate evidence of intention to evade duty. This Court on 15 January,
1999 dismissed the appeal filed by the department against the CEGAT order
dated 5 March 1997, on account of delay in filing of appeal by seven
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months. The period of delay included four months taken by the Panel
Counsel in drafting the appeal.
(ii) Delay by the Board
In the case of M/s. Time Pharma, involving revenue of Rs.1.83 crore ,
the Commissionerate of Central Excise Mumbai II (now Mumbai III)
received certified copy of the CEGAT's order after 14 days on 4 February
1997 and sent comments to the Board after 23 days as against prescribed
period of 10 days. Although the Board decided before 17 April 1997 to go in
appeal, the appeal was filed only on 5 June 1998. This court dismissed the
appeal on the ground that there was an inordinate delay of about 360 days in
filing the appeal without giving any satisfactory explanation. The
Commmissionerate of Central Excise attributed the delay to the Board.
(iii) Supplementary appeal filed after six years Mumbai II
Commissionerate of Central Excise, filed an appeal in CEGAT on 14 June,
1993 against an order of the Commissioner dated 31 March 1992 regarding
irregular availment of SSI exemption and consequent availment of Modvat
credit at higher rates by a group of six assessees (M/s. Azo Dye Chem and
five others). The appeal was, however, filed in respect of only one assessee
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whereas the case was against all the six manufacturing units and fourteen
others being Directors and Managers of the said units. After six years, on the
instructions from Junior Departmental Representative, the supplementary
appeals alongwith application for condonation of delay in filing appeals
against the others were filed in CEGAT on 11 October 1999 under section
35 E (4) of the Act. However, CEGAT dismissed these appeals on 21 July,
2000 borrowing a Larger Bench decision dated 12 July, 2000 in the same
case where it was held that CEGAT has no power to condone the delay.
The main appeal filed in time (14 June 1993) was also dismissed by CEGAT
on 21 July, 2000 on the ground that no appeal had been filed against the
other noticee. The revenue involved in this case was Rs.1.18 crore.
(iv) Frivolous reasons for condonation
In Hyderabad I Commissionerate of Central Excise, two appeals filed
by the department against order of Commissioner (Appeals) on whether
certain products manufactured by the assessees (M/s.Neyland Laboratories
Limited and M/s. Aurbindo Pharma Ltd.) are bulk drugs under `Drugs and
Cosmetics Act', were dismissed (17 August 2002) by CEGAT as time
barred as there was a delay of 48 days in filing the appeals. The reasons put
forth by the department that the new Collector of Central Excise needed time
to familiarize to the work were not accepted. Failure to file an appeal before
10
CEGAT in time resulted in dismissal of the appeal involving revenue of
Rs.81.81 lakh.
15. It is submitted that even with the introduction of safeguards against
delay in the process, in an occasional case delay occurs which is inexplicable
in normal circumstances. The question is whether such delay, should result
in the negation of the state's claim and at the cost of the interest of the
members of the public whose cause has not been carefully espoused. It is
submitted by the appellant-State that in such cases, delay must be visited
with consequences but the interest of the inhabitants of the State must be
protected.
In State (NCT of Delhi) v. Ahmed Jaan 2008 (11) SCALE 455 it was
held as follows:
....It is axiomatic that decisions are taken by officers/ agencies
proverbially at slow pace and encumbered process of pushing
the files from table to table and keeping it on table for
considerable time causing delay - intentional or otherwise - is a
routine. Considerable delay of procedural red-tape in the
process of their making decision is a common feature.
Therefore, certain amount of latitude is not impermissible. If
the appeals brought by the State are lost for such default no
person is individually affected but what in the ultimate analysis
suffers, is public interest. .....In the event of decision to file
appeal needed prompt action should be pursued by the officer
responsible to file the appeal and he should be made personally
11
responsible for lapses, if any. Equally, the State cannot be put
on the same footing as an individual. The individual would
always be quick in taking the decision whether he would pursue
the remedy by way of an appeal or application since he is a
person legally injured while State is an impersonal machinery
working through its officers or servants"
Further at para 15 this court held that:
"... The above position was highlighted in State of Haryana v.
Chandra Mani and Ors. 1996 (3) SCC 132; Special Tehsildar,
Land Acquisition, Kerala v. K V.Ayisumma (1996 (10) SCC
634) and State of Nagaland v. Lipok AO and Ors. (2005 (3)
SCC 752). It was noted that adoption of strict standard of
proof sometimes fail to protract public justice, and, it would
result in public mischief by skilful management of delay in the
process of filing an appeal."
16. This Court has in appropriate cases even condoned delays of over
30 years in filing of SLPs. In Nand Kishore v. State of Punjab 1995 (6)
SCC 614 this court held:
".........13. The step of the three-member Bench so taken reveal its mind
as reflected in the above proceedings. Their Lordships wanted to do
substantial justice. It was thought better to advise the petitioner to file
special leave petition. As we view this order, having invited the
petitioner to file the special leave petition, it is no longer advisable or
appropriate for us to retrace back the step put forward by the three-
member Bench. It is significant to recall that the writ application was
dismissed on 5-2-1962 and the moment Moti Ram Deka case appeared
on the scene, the appellant or 24-2-1964, within limitation, brought
forward his suit which got strengthened by Gurdev Singh case appearing
within a couple of months of its filing. The appellant-special leave
petitioner was thus bona fide pursuing an appropriate remedy for all
these years. In these circumstances, we think that an appropriate case for
12
condonation of delay of the intervening period has been made out. We,
therefore, allow CC 11644 of 1991 and condone the long durated delay
in these exceptional circumstances. On doing so, we grant leave to
appeal. The appeal thus arising and the Civil Appeal No. 632 of 1975
may now be disposed of together...."
17. On perusal of the explanation offered it is clear that the officials who
were dealing with the matter have either deliberately or without
understanding the implications dealt with the matter in a very casual and
lethargic manner. It is a matter of concern that in very serious matters action
is not taken as required under law and the appeals/petitions are filed after
long lapse of time. It is a common grievance that it is so done to protect
unscrupulous litigants at the cost of public interest or public exchequer.
This stand is more noticeable where vast tracts of lands or large sums of
revenue are involved. Even though the courts are liberal in dealing with the
belated presentation of appeals/applications, yet there is a limit upto which
such liberal attitude can be extended. Many matters concerning the State
Government and the Central Government are delayed either by the nature of
bureaucratic process or by deliberate manipulation of the same by taking
advantage of loopholes in the conduct of litigation. Several instances have
come to the notice of this Court where as noted above appeals have been
filed where the revenue involved runs to several crores of rupees. It is true
13
that occasionally delay occurs which is inexplicable in normal
circumstances.
18. The case at hand is a classic example where the circumstances are the
same. More than 4000 acres of land are involved out of which, according to
the State, nearly 3500 acres constitute forest land. Ultimately, the Court has
to protect the public justice. The same cannot be rendered ineffective by
skillful management of delay in the process of making challenge to the order
which prima facie does not appear to be legally sustainable.
19. The expression `sufficient cause' as appearing in Section 5 of the
Indian Limitation Act, 1963 (in short the `Limitation Act') must receive a
liberal construction so as to advance substantial justice as was noted by this
Court in G. Ramegowda, Major etc. v. The Special Land Acquisition
Officer, Bangalore (AIR 1988 SC 897). Para 8 of the judgment reads as
follows:
"8. .......The law of limitation is, no doubt, the same for a
private citizen as for governmental authorities. Government,
like any other litigant must take responsibility for the acts or
omissions of its officers. But a somewhat different complexion
is imparted to the matter where Government makes out a case
where public interest was shown to have suffered owing to acts
of fraud or bad faith on the part of its officers or agents and
where the officers were clearly at cross-purposes with it.
14
Therefore, in assessing what, in a particular case,
constitutes "sufficient cause" for purposes of Section 5, it
might, perhaps, be somewhat unrealistic to exclude from the
considerations that go into the judicial verdict, these factors
which are peculiar to and characteristic of the functioning of the
government. Governmental decisions are proverbially slow
encumbered, as they are, by a considerable degree of procedural
red tape in the process of their making. A certain amount of
latitude is, therefore, not impermissible. It is rightly said that
those who bear responsibility of Government must have "a little
play at the joints". Due recognition of these limitations on
governmental functioning -- of course, within reasonable limits
-- is necessary if the judicial approach is not to be rendered
unrealistic. It would, perhaps, be unfair and unrealistic to put
government and private parties on the same footing in all
respects in such matters. Implicit in the very nature of
governmental functioning is procedural delay incidental to the
decision-making process. In the opinion of the High Court, the
conduct of the law officers of the Government placed the
Government in a predicament and that it was one of those cases
where the mala fides of the officers should not be imputed to
Government. It relied upon and trusted its law officers. Lindley,
M.R., in the In re National Bank of Wales Ltd. (1899) 2 Ch. 629
at p.673 observed, though in a different context:
"Business cannot be carried on upon principles of
distrust. Men in responsible positions must be trusted by
those above them, as well as by those below them, until
there is reason to distrust them."
20. Keeping in view the importance of questions of law which are
involved we are inclined to condone the delay subject to payment of
exemplary costs which we fix at rupees ten lakhs to be paid within a period
15
of 8 weeks to the respondents. The delay is condoned subject to the
payment of the aforesaid amount as costs. After making the payment the
receipt thereof shall be filed before this Court alongwith an affidavit. Only
after the payment is made the special leave petitions shall be listed for
admission. We make it clear that we have not expressed any opinion on
the merits of the case.
21. It is imperative that the State shall immediately initiate action as
available in law against every person responsible for the alleged fraud and
delay in persuing the remedies, fix responsibility and recover the amount
paid as costs from them. Needless to say orders shall be passed in this
regard by the competent authority after grant of opportunity to the concerned
person(s). If any, action under criminal law(s) is to be taken, same shall be
taken.
..........................................J.
(Dr. ARIJIT PASAYAT)
..........................................J.
(ASOK KUMAR GANGULY)
New Delhi,
May 04, 2009
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Land Acquisition: Land Acquisition Act, 1894: Section 18 (as amended and adopted in State of Karnataka)-Reference to Court-Application under S. 18(3)(b)-Limitation period-Applicability of S. 5 of the Limitation Act-Notice of award under S. 12(2) served on the claimant-Claimant filed application under S. 18(1) seeking reference within 90 days as laid down in S. 18(2)-Deputy Commissioner failed to make a reference within 90 days as laid down in S. 18(3)(a)-Claimant approached civil court under S. 18(3)(b) after 10 years-Application for condonation of delay under S. 5 of the Limitation Act also filed-Civil Judge condoned delay and directed Deputy Commissioner to make a reference-High Court refused to interfere-Correctness of-Held: On expiry of a period of three years and 90 days right of Deputy Commissioner to make a reference and that of claimant to move the court gets extinguished-Section 5 of the Limitation Act cannot be invoked to an application under S. 18(3)(b)-High Court's judgment set aside-Limitation Act, 1963, S. 5. The notice of award under S. 12(2) of the Land Acquisition Act, 1894 (as amended and adopted in the State of Karnataka) was served on the respondent-claimant. The respondent filed an application under Section 18(1) of the Act (as amended and adopted in the State of Karnataka) within 90 days as prescribed under Section 18(2) of the Act. But the Deputy Commissioner did not make a reference within 90 days as provided under Section 18(3)(a) of the Act. The respondent approached the civil court under Section 18(3)(b) of the Act after more than 10 years after receipt of the notice of the award. The respondent also filed an application for condonation of delay under Section 5 of the Limitation Act, 1963. The civil judge condoned the delay and directed the Deputy commissioner to make a reference in terms of Section 18 of the Act. In revision, the High Court refused to interfere on the ground that Section 5 of the Limitation Act had application and there was no reason to interfere with the condoning of the delay by the civil judge. Hence the appeal. The following questions arose before the Court:- (1) Whether on expiry of the period of three years and 90 days the right of the Deputy Commissioner to make a reference and that of the claimant to move the court get extinguished? (2) Whether Section 5 of the Limitation Act, 1963 can be invoked to an application under Section 18(3)(b) of the Land Acquisition Act, 1894 (as amended and adopted in the State of Karnataka)?
Allowing the appeal, the Court
HELD: 1. The State Legislature by an amendment brought to Section 18 of the Land Acquisition Act, 1894 substituted the proviso to Section 18(2) by replacing the period of six weeks by a period of 90 days and making the starting point, the date of service of notice from the Deputy Commissioner under Section 12(2) of the Act. Section 18(3) was added directing that the Deputy Commissioner should make the reference to the court within a period of 90 days from the date of receipt of the application under Section 18(1) of the Act. If he failed to do so within the period of 90 days, the party was given a right under Section 18(3)(b) of the Act to apply to the court to direct the Deputy Commissioner to make the reference and the court was conferred the power to direct the Deputy Commissioner to make the reference within such period as may be fixed by the court. [543-d-f]
2. No time for applying to the court in terms of Section 18(3) of the Act is fixed by the statute. But since the application is to the court, though under a special enactment, Article 137, the residuary article of the Limitation Act, 1963 would be attracted and the application has to be made within three years of the application for making a reference or the expiry of 90 days after the application. [544-d-e]
The Addl. Spl. Land Acquisition Officer v. Thakoredas, Major, AIR (1994) SC 2227, Kerala State Electricity Board v. T.P. Kunhaliumma, [1976] 4 SCC 634 and Officer on Special Duty (Land Acquisition) v. Shah Manilal Chandulal, [1969] 9 SCC 414, relied on.
Special Land Acquisition Officer v. G.C. Paramraj, ILR 1991(2) Karnataka 1109, approved.
3. On a plain understanding of the Scheme of Section 18 of the Act as amended in Karnataka, it is apparent that a claimant has to make an application for reference within a period of 90 days of the service of notice under Section 12(2) of the Act. The Section casts a duty on the concerned officer to make a reference within 90 days of the receipt of the application for reference. The mere inaction on the part of the officer does not affect or straightaway extinguish the right of the claimant-applicant. The claimant is conferred the right to approach the court but he has to do so, within three years of his having made an application for reference in view of the general law of limitation. It is in this context that it has been held that the time available to a claimant for approaching the court for getting a reference made, is in all three years and 90 days from the date of the accrual of the cause of action. That accrual is when he makes an application for reference within the time prescribed by Section 18(2) of the Act. The controversy that is generated in these appeals is whether on the expiry of the said period of three years and 90 days, the right of the Deputy Commissioner to make a reference and that of the claimant to move the court get extinguished. It is to be remembered that the claimant had made his application for reference within the 90 days prescribed by the statute. Should a construction be adopted which will lead to a position that a claimant who has done his part, loses his right on the failure of the Deputy Commissioner to make the reference within 90 days of the receipt of the application for reference? That will depend on the statutory scheme. [545-g-h; 546-a-d]
4. Under the Karnataka scheme, the period for making an application for reference has been enhanced from six weeks to 90 days and the terminus a quo is the receipt of notice from the Collector under Section 12(2) of the Act. The Section proceeds further and imposes a duty on the Deputy Commissioner to make the reference to the Court within 90 days from the date of receipt of the application under Section 18( 1) of the Act. Though it may not be conclusive what one has to notice is that expression used is "shall" and not "may". The scheme does contemplate a situation where the Deputy Commissioner, in spite of the peremptory nature of the duty cast on him, still fails to make the reference within the time stipulated by Section 18(3)(a). The claimant is, therefore, given the right to approach the Court, namely, the Court that is to deal with the claim on the reference being made, to direct the Deputy Commissioner to make the reference within a time to be fixed by the Court. This right to apply to the Court which is to deal with the reference, is not available under the Central Act. [547-d-f]
5. Extinguishment of a right can be expressly provided for or it can arise by the implication from the statute. Section 18 of the Act as in Karnataka sets out a scheme. Having made an application for reference within time before the Deputy Commissioner, the claimant may lose his right by not enforcing the right available to him within the time prescribed by law. Section 18(3)(a) and Section 18(3)(b) read in harmony, casts an obligation on the claimant to enforce his claim within the period available for it. The scheme brings about a repose. It is based on a public policy that a right should not be allowed to remain a right indefinitely to be used against another at the will and pleasure of the holder of the right by approaching the court whenever he chooses to do so. When the right of the Deputy Commissioner to make the reference on the application of the claimant under Section 18( 1) of the Act stands extinguished on the expiry of 3 years and 90 days from the date of application for reference, and the right of the claimant to move the Court for compelling a reference also stands extinguished, the right itself loses its enforceability and thus comes to an end as a result. This is the scheme of Section 18 of the Act as adopted in the State of Karnataka. The High Court is, therefore, not correct in searching for a specific provision bringing about an extinguishment of the right to have a reference and on not finding it, postulating that the right would survive for ever. [551-e-h; 552-a-b]
State of M.P. v. Bhai Lal AIR (1964) SC 1006, referred to.
6. Under the scheme .of Section 18 of the Act as in Karnataka the claimant loses his right to move the Court for reference on the expiry of three years and 90 days from the date of his making an application to the Deputy Commissioner under Section 18 (1) of the Act within the period fixed by Section 18(2) of the Act. This loss of right to move the court precludes him from seeking a remedy from the court in terms of Section 18 of the Act. This loss of right in the claimant puts an end to the right of the claimant to seek an enhancement of compensation. To say that the Deputy Commissioner can make a reference even after the right in that behalf is lost to the claimant would be incongruous. Once the right of the claimant to enforce his claim itself is lost on the scheme of Section 18 of the Act, there is no question of the Deputy Commissioner who had violated the mandate of Section 18(3)(a) of the Act, reviving the right of the claimant by making a reference at his sweet will and pleasure, whatever be the inducement or occasion for doing so. On a harmonious understanding of the scheme of the Act in the light of the general principle that even though a right may not be extinguished, the remedy may become barred, it would be appropriate to hold that on the expiry of three years and 90 days from the date of application for reference made within time under Section 18(1) of the Act the remedy of the claimant to have a reference gets extinguished and the right to have an enhancement becomes unenforceable. The Deputy Commissioner would not be entitled to revive a claim which has thus become unenforceable due to lapse of time or non-diligence on the part of the claimant. [552-b-f]
The Addl. Spl. Land Acquisition Officer v. Thakoredas, Major AIR (1994) SC 2227, relied on.
Assistant Commissioner v. Laxmi Bai ILR 1987 Karnataka 2132, approved.
Hanamappa v. The Special Land Acquisition Officer ILR (1998) Karnataka 4071 (FB), overruled.
7. On the failure of the Deputy Commissioner to make a reference within 90 days from the date of an application under Section 18(1) of the Act, the claimant is given the right to approach the Land Acquisition Court seeking the compelling of a reference by the Deputy Commissioner. Once the right to move for a compelled reference is lost to the claimant on the scheme of Section 18, the very right to have a claim for enhancement, would come to an end in view of the fact that the remedy in that behalf becomes barred. Thereafter, the Deputy Commissioner cannot revive that right to a reference. [553-f-g]
8. The right to have a reference enforced through Court or through the Deputy Commissioner becomes extinguished on the expiry of three years and 90 days from the date of the application for reference made in time. Consistent with this position it has necessarily to be held that Section 5 of the Limitation Act, 1963 would not be available since the consequence of not enforcing the right to have a reference made on the scheme of Section 18 of the Act as obtaining in Karnataka, is to put an end to the right to have a reference at all. Since in that sense it is an extinguishment of the right, the right cannot be revived by resorting to Section 5 of the Limitation Act. [554-g-h; 555-a]
The Addl. Spl. Land Acquisition Officer v. Thakoredas, Major AIR (1994) SC 2227, relied on.
The Addl. Spl. Land Acquisition Officer v. Thakoredas, Major AIR (1994) SC 2227 and Assistant Commissioner v. Laxmi Bai, ILR (1987) Karnataka 2132, approved.
Sanjay R. Hegde, Anil K. Mishra, A. Rohen Singh and N. Ganpathy, (NP) for the Appellant.
K. Radhakrishnan and Mrs. K. Sarada Devi for the Respondent No. 1566/2001.
2006 AIR 24 , 2005(4 )Suppl.SCR535 , 2005(8 )SCC709 , 2005(8 )SCALE768 , 2005(9 )JT89
CASE NO.:
Appeal (civil) 2024 of 1999
PETITIONER:
STATE OF KARNATAKA
RESPONDENT:
LAXUMAN
DATE OF JUDGMENT: 25/10/2005
BENCH:
CJI R.C. LAHOTI,G.P. MATHUR & P.K. BALASUBRAMANYAN
JUDGMENT:
J U D G M E N T
WITH
CIVIL APPEAL NOs. 4459/1999, 607-609/2000,
5547/2000, 1566/2000 and 1567/2001
P.K. BALASUBRAMANYAN, J.
All these appeals involve questions connected with the scope
and effect of Section 18 of the Land Acquisition Act as amended and
adopted in the State of Karnataka. The brief facts leading to the appeals are
as under.
CIVIL APPEAL NO.2024 OF 1999
The State challenges the order of the learned Single Judge of
the Karnataka High Court in Civil Revision Petition No.3682 of 1995 by
which the learned Judge dismissed the revision filed by the State challenging
the order of the Civil Judge, being the land acquisition court, purporting to
condone the delay in filing an application under Section 18(3)(b) of the Land
Acquisition Act, as amended in Karnataka. The notice of the award under
Section 12(2) of the Act was served on the claimant on 6.1.1984. Under
Section 18(2) of the Act, the claimant had 90 days from the date of service
of that notice, to seek a reference under that Section for enhancement of
compensation. The respondent claimed that an application under Section
18(1) of the Act seeking a reference was filed on 15.3.1984, within 90 days
of 6.1.1984, but the reference was not made by the Deputy Commissioner
within 90 days thereafter as enjoined by Section 18(3)(a) of the Act. The
claimant approached the civil court under Section 18(3)(b) of the Act only in
April 1994, more than 10 years after the receipt of the notice of the award.
The claimant also purported to file an application for condoning the delay in
making the application. This was in view of the fact that it had been held
that an application to the court under Section 18(3)(b) of the Act had to be
made within three years of the expiry of 90 days of the date of making an
application seeking a reference for enhancement of compensation. The
State opposed the application for condoning the delay on the ground that
Section 5 of the Limitation Act had no application and that, in any event, no
ground was made out for condoning the long delay of ten years in filing the
application. The civil judge proceeded to condone the delay and proceeded
to direct the Deputy Commissioner to make a reference in terms of Section
18 of the Act. In revision, the High Court refused to interfere on the ground
that Section 5 of the Limitation Act had application and there was no reason
to interfere with the condoning of the delay by the civil judge. The High
Court apparently without even a verification, merely accepted the evidence
of PW 1 that he had made an application within 90 days of the receipt of the
notice of the award under Section 12(2) of the Act. Feeling aggrieved by
that order, this appeal by special leave has been filed by the State.
CIVIL APPEAL NO.4459 OF 1999
In this case, the civil judge dismissed the application made
under Section 18(3)(b) of the Act by the respondent on the ground that the
application was barred by limitation. This order of the civil judge was
challenged in an appeal before the District Judge. It is not clear under what
provision such an appeal was filed, since under Section 54 of the Land
Acquisition Act as amended in Karnataka no appeal is provided to the
District Court from such an order of the civil judge and an appeal is
provided only against the award. The appellate court is seen to have held
that Section 5 of the Limitation Act was applicable and the learned civil
judge was in error in dismissing the application for compelling the reference
under Section 18(3)(b) of the Act without deciding the prayer for
condonation of the delay in filing that application. This order of the District
Judge was challenged in revision before the High Court. The High Court
held that Section 5 of the Limitation Act had application and declined to
interfere with the order of remand made by the Additional District Judge.
The High Court, thus, dismissed the revision filed by the State. Aggrieved
by this order, the State has come up with this appeal by special leave.
CIVIL APPEAL NOs.607-609 of 2000
In the first case it appears that the application for reference
under Section 18(1) of the Act itself was made only two years after the
award. Another seven years thereafter an application for compelling a
reference was made under Section 18(3)(b) of the Act. The civil judge
dismissed the application on the ground that it was out of time. Ten years
thereafter, the claimant filed a revision as C.R.P. No.1505 of 1997 before the
High Court. The High Court ignored the delay of ten years in filing the
revision in a somewhat cavalier manner and allowing the revision remitted
the reference application to the Land Acquisition Court for entertaining the
application under Section 18(3)(b) of the Act. The others were cases of a
similar nature. In all of them there was considerable delay in making the
application for reference and also delay in approaching the court. In these
revisions also, same lack of application of mind was exhibited by the High
Court and the revisions were allowed and the applications remitted. The
common order thus passed, is subjected to challenge in these appeals.
CIVIL APPEAL NO.5547 OF 2000
The State challenges the order of the High Court passed under
the same circumstances leading to the challenge in C.A. No.4459 of 1999.
Here the application for compelling a reference was dismissed on the ground
that it was out of time. The District court permitted the claimant to file an
application under Section 5 of the Limitation Act and directed its
consideration. The High Court refused to interfere.
CIVIL APPEAL NO.1567 OF 2001
In this appeal, the State of Karnataka challenges the order in
Civil Revision Petition No.956 of 1998. In this case also the civil judge
dismissed the application under Section 18(3)(b) of the Act in view of the
fact that it was not within time. An appeal was purported to be filed by the
claimant under Order 43 Rule 1 of the Code of Civil Procedure. The same
was allowed and the matter was remanded. Against the order of the District
Court, the revision was filed by the State challenging the competence of the
order. The High Court refused to interfere based on the same reasons it had
adopted in the order giving rise to Civil Appeal No.4459 of 1999. Feeling
aggrieved, the State has filed this appeal by special leave.
CIVIL APPEAL NO.1566 OF 2001
This appeal challenges the decision of the Full Bench of the
Karnataka High Court which by a majority held that even though the right to
the claimant to apply for compelling a reference under Section 18(3)(b) of
the Land Acquisition Act, as amended in the State of Karnataka may be lost,
the Deputy Commissioner could still make a reference even if it be after ten
years, if he so chose and that in such a situation, the court could also compel
a reference notwithstanding that the period for applying for reference has
expired. The State challenges the above view adopted by the Full Bench by
a majority and contends that the minority view holding that once the right to
the claimant to apply has come to end, the question of reference does not
arise, is the correct one and deserves to be accepted.
2. Section 18 of the Land Acquisition of the Act, 1894 (for short
"the Act") as amended by Act 68 of 1984 provided that a person interested
in a land acquired and who has not accepted the award of compensation by
the Collector, could apply to the Collector for a reference of his claim within
six weeks of the date of the award if he was present at the time of making of
the award and within six weeks of the notice from the Collector under
Section 12(2) of the Act if he was not so present. In a case that may not be
covered by either of the above situations, the claimant has to make his
application within six months of the date of the award of the Collector. The
State Legislature by an amendment brought to Section 18 of the Act
substituted the proviso to Section 18(2) by replacing the period of six
weeks by a period of 90 days and making the starting point, the date of
service of notice from the Deputy Commissioner under Section 12(2) of the
Act. Sub-section (3) was added directing that the Deputy Commissioner
should make the reference to the court within a period of 90 days from the
date of receipt of the application under sub-section (1) of Section 18 of the
Act. If he failed to do so within the period of 90 days, the party was given a
right under Section 18(3)(b) of the Act to apply to the court to direct the
Deputy Commissioner to make the reference and the court was conferred the
power to direct the Deputy Commissioner to make the reference within such
period as may be fixed by the court. For the purpose of convenience it will
be better to quote the section as amended in the State of Karnataka:
"18. REFERENCE TO COURT(1) Any person
interested who has not accepted the award or amendment
thereof, may by written application to the Deputy
Commissioner require that the matter be referred by the Deputy
Commissioner for determination of the court, whether his
objection be to the measurement of the land, the amount of the
compensation, the person to whom it is payable, or the
apportionment of the compensation among the persons
interested.
(2) The application shall state the grounds on which
objection to the award is taken:
Provided that every such application shall be made
within ninety days from the date of service of the notice from
the Deputy Commissioner under sub-section (2) of Section12.
3. (a) The Deputy Commissioner shall, within ninety
days from the date of receipt of an application under sub-
section (1) make a reference to the Court.
(b) If the Deputy Commissioner does not make a
reference to the Court within a period of ninety days from the
date of receipt of the application, the applicant may apply to the
court to direct the Deputy Commissioner to make the reference,
and the Court may direct the Deputy Commissioner to make the
reference within such time as the Court may fix."
The court to which the application was to be made was the
principal civil court of original jurisdiction.
3. As can be seen, no time for applying to the court in terms of
sub-section (3) is fixed by the statute. But since the application is to the
court, though under a special enactment, Article 137, the residuary article of
the Limitation Act, 1963, would be attracted and the application has to be
made within three years of the application for making a reference or the
expiry of 90 days after the application. The position is settled by the
decision of this Court in The Addl. Spl. Land Acquisition Officer,
Bangalore vs. Thakoredas, Major and others (AIR 1994 SC 2227). It
was held:
"Admittedly, the cause of action for seeking a reference had
arisen on the date of service of the award under Section 12(2) of
the Act. Within 90 days from the date of the service of notice,
the respondents made the application requesting the Deputy
Commissioner to refer the cases to the Civil Court under
Section 18. Under the amended sub-section 3(a) of the Act,
the Deputy Commissioner shall, within 90 days from
September 1, 1970 make reference under Section 18 to the Civil
Court which he failed to do . Consequently, by operation of
sub-section 3(b) with the expiry of the aforestated 90 days, the
cause of action had accrued to the respondents to make an
application to the Civil Court with a prayer to direct the Deputy
Commissioner to make a reference. There is no period of
limitation prescribed in sub-section 3(b) to make that
application but it should be done within limitation prescribed by
the Schedule to the Limitation Act. Since no Article expressly
prescribed the limitation to make such application, the residuary
article under Article 137 of the Schedule to the Limitation Act
gets attracted. Thus, it could be seen that in the absence of any
special period of limitation prescribed by clause (b) of sub-
section (3) of Section 18 of the Act, the application should have
been made within three years from the date of expiry of 90 days
prescribed in Section 18(3)(b) i.e. the date on which cause of
action had accrued to the respondent-claimant. Since the
applications had been admittedly made beyond three years, it
was clearly barred by limitation. Since, the High Court relied
upon the case in Municipal Corporation of Athani (AIR 1969
SC 1335), which has stood overruled, the order of the High
Court is unsustainable."
This position is also supported by the reasoning in Kerala State Electricity
Board vs. T.P. Kunhaliumma ( 1976 (4) SCC 634). It may be seen that
under the Central Act sans the Karnataka amendment there was no right to
approach the principal civil court of original jurisdiction to compel a
reference and no time limit was also fixed for making such an approach.
All that was required of a claimant was to make an application for reference
within six weeks of the award or the notice of the award, as the case may be.
But obviously the State Legislature thought it necessary to provide a time
frame for the claimant to make his claim for enhanced compensation and for
ensuring an expeditious disposal of the application for reference by the
authority under the Act fixing a time within which he is to act and conferring
an additional right on the claimant to approach the civil court on satisfying
the condition precedent of having made an application for reference within
the time prescribed.
4. A statute can, even while conferring a right, provide also for a
repose. The Limitation Act is not an equitable piece of legislation but is a
statute of repose. The right undoubtedly available to a litigant becomes
unenforceable if the litigant does not approach the court within the time
prescribed. It is in this context that it has been said that the law is for the
diligent. The law expects a litigant to seek the enforcement of a right
available to him within a reasonable time of the arising of the cause of action
and that reasonable time is reflected by the various articles of the Limitation
Act.
5. On a plain understanding of the scheme of Section 18 of the
Act as amended in Karnataka, it is apparent that a claimant has to make an
application for reference within a period of 90 days of the service of notice
under Section 12(2) of the Act. The section casts a duty on the concerned
officer to make a reference within 90 days of the receipt of the application
for reference. The mere inaction on the part of the officer does not affect or
straightaway extinguish, the right of the claimant-applicant. The claimant is
conferred the right to approach the court but he has to do so, within three
years of his having made an application for reference in view of the general
law of limitation. It is in this context that it has been held that the time
available to a claimant for approaching the court for getting a reference
made, is in all, three years and 90 days from the date of the accrual of the
cause of action. That accrual is when he makes an application for reference
within the time prescribed by Section 18(2) of the Act. The controversy that
is generated in these appeals is whether on the expiry of the said period of
three years and 90 days, the right of the Deputy Commissioner to make a
reference and that of the claimant to move the court, get extinguished. It is
to be remembered that the claimant had made his application for reference
within the 90 days prescribed by the statute. Should a construction be
adopted which will lead to a position that a claimant who has done his part,
loses his right on the failure of the Deputy Commissioner to make the
reference within 90 days of the receipt of the application for reference? That
will depend on the statutory scheme. If we construe the provision as
conferring on the litigant a further right to approach the court for getting the
matter referred, in case a Deputy Commissioner fails to make a reference
within 90 days of the receipt of the application, we have prima facie to say
that on his failure to approach the court and get the reference made, he
would lose his right to have a reference for enhancement of compensation.
Obviously, the mischief that was sought to be averted by the Legislature was
the causing of undue delay by Deputy Commissioners in making references
and the making of highly belated references, sometimes based on
applications clandestinely received long after the award itself had been
made. If we keep this object in view, the conclusion possible is that, if a
claimant does not get his claim referred to the court within three years of his
making the application before the Deputy Commissioner within the period
fixed and the accrual of a cause of action, his right to claim enhancement of
compensation would get extinguished. In the context of Section 28A of the
Act, there will be no irreparable prejudice caused to the claimant since he
can always make a claim for more based on any enhancement of award by a
court in any other reference arising out of the acquisition under the same
notification. The difference may be only in the matter of interest and the
like.
6. Section 18 of the Land Acquisition Act as amended in
Karnataka is self contained. The amendments substantially alter the
position as obtaining under Section 18 of the Central Act. Under the
Central Act, there is only an obligation on the claimant who is not
satisfied with the award of compensation and receives it under protest,
to make an application to the Collector for making a reference of his
claim for enhancement to the Court and to ensure that his application is
made within the time provided under sub-Section (2) of that Section.
In other words, once an application has been made for making a
reference for enhancement, no further right is conferred on him, except,
may be that he can approach the High Court in its writ jurisdiction,
seeking the issue of a writ of mandamus directing the Collector to
perform the duty imposed on him by Section 19 of the Act, by making
an appropriate reference. Even in such a case, it is open to the High
Court to decline to issue a writ as sought for by a claimant, when the
approach to the High Court is unduly delayed or the petitioner is guilty
of latches.
7. Under the Karnataka scheme, the period for making an
application for reference has been enhanced from six weeks to 90 days
and the terminus a quo is the receipt of notice from the Collector under
Section 12(2) of the Act. The Section proceeds further and imposes a
duty on the Deputy Commissioner to make the reference to the Court
within 90 days from the date of receipt of the application under Section
18(1) of the Act. Though it may not be conclusive what one has to
notice is that expression used is "shall" and not "may". The scheme
does contemplate a situation where the Deputy Commissioner, in spite
of the peremptory nature of the duty cast on him, still fails to make the
reference within the time stipulated by sub-Section 3(a) of Section 18.
The claimant is, therefore, given the right to approach the Court,
namely, the Court that is to deal with the claim on the reference being
made, to direct the Deputy Commissioner to make the reference within
a time to be fixed by the Court. This right to apply to the Court which
is to deal with the reference, is not available under the Central Act.
8. Whatever might have been the controversy in the High
Court in that regard, after the decision of this Court in The Addl. Spl.
Land Acquisition Officer, Bangalore vs. Thakoredas, Major and others
(supra), the time for approaching the court under Section 18(3)(b) of the Act
stands crystalised. The application has to be made within three years of the
expiry of 90 days from the date of application under Section 18(1) of the Act
made by the claimant. If the application is not made within that time the
right to move is lost. In that case, the court dismissed the application under
Section 18(3)(b) of the Act. We have, therefore, to proceed on the basis that
the remedy of approaching the court under Section 18(3)(b) of the Act gets
extinguished on the expiry of the period limited therefor.
9. This Court has also held that in proceedings under the Land
Acquisition Act before the authorities under that Act, Section 5 of the
Limitation Act has no application (See Officer on Special Duty (Land
Acquisition) and another vs. Shah Manilal Chandulal and others
(1996 (9) SCC 414). Therefore, Section 5 of the Limitation Act cannot
be resorted to while making an application under Section 18(1) of the
Act and the application has to be made within the period fixed by
Section 18(2) of the Act.
10. The Division Bench of the High Court in Special Land
Acquisition Officer vs. G.C. Paramraj (ILR 1991(2) Karnataka
1109) held that the reference court has not only the power, but also the
duty, to consider whether the reference was time barred and therefore
invalid. It also held that Article 137 of the Limitation Act applies to an
application under Section 18(3)(b) of the Act, a position approved by
this Court. Then the Division Bench held that the power to make a
reference under Section 18(3) subsists till the right of the party to make
an application before the court seeking a direction to the Deputy
Commissioner to make a reference exists and from this it followed that
there is no power in the Deputy Commissioner to make a reference
thereafter and if such a reference is made by the Deputy Commissioner,
it is invalid. An application to the court not made within 3 years after
the expiry of 90 days from the date of the application under Section
18(1) of the Act, had to be rejected in limini. The Division Bench laid
down the law thus:-
"It is a well recognized rule of construction that in order to
ascertain the true meaning of a provision the intention of
the Legislature, as ascertainable from the language of the
provision is the safe guide. From the amendment of
Section 18, it is clear that in addition to the time limit of 90
days fixed in Section 18, the Legislature intended to create
a duty in the Deputy Commissioner to make a Reference
within 90 days and further if within the said period the
Deputy Commissioner/Land Acquisition Officer failed to
make a Reference, to confer a right on the party to make an
application before the Court seeking a direction to the
Deputy Commissioner to make the Reference. If that right
is not exercised by the party within time, then the right
ceases. Once the right of the party to get a Reference is
time barred, it would be incongruous to hold that the
Deputy Commissioner can still make a Reference, at any
time even after decades. In our view, it is reasonable to
construe the provision to mean that the date on which the
right of the party to get a Reference comes to an end would
also be the date on which the power of the Deputy
Commissioner to make Reference comes to an end. We
are not persuaded to agree with the construction suggested
for the respondent that the power of the Officer continues
even after the right of the party comes to an end and
continues for ever. It means even after an application
made before the Court after three years is rejected as the
Court is powerless to entertain a time barred application,
the Deputy Commissioner would have the power to make a
Reference, nullifying the order of the Court rejecting the
application as time barred. Such a construction would lead
to a situation in which in one case the Deputy
Commissioner could make a Reference if he so desires and
in another he could refuse to do so, if he so desires, in
which even the party would be helpless. In other words,
the Deputy Commissioner could act according to his whims
and fancies. It is difficult to agree that the Legislature
intended to bring about such a result. Further, such a
construction which brings about anomalous and
incongruous results and gives ample scope for nepotism,
favouritism and corruption, should not be given. We have
come across several References made after two decades,
particularly after several additional benefits were conferred
by Amending Act 68 of 1984 amending the Land
Acquisition Act. In our opinion, the correct view to take
is, just as the party loses the right to the Reference if no
application is made within 90 days in terms of Section
18(2), the party, who had made an application within 90
days loses the right to secure a Reference if he fails to make
an application within three years after the expiry of 90 days
from the date of the Reference application and
consequently the power of the Deputy Commissioner/Land
Acquisition Officer to make Reference comes to an end.
We are, therefore, of the view that the date of cessation of
the Deputy Commissioner to make the Reference also
constitutes the date of cessation of power of the Deputy
Commissioner. To put it in a nutshell the latter comes to
an end on the date on which the former ends and the award
of the Land Acquisition Officer becomes final. Therefore,
neither the party can seek a Reference nor the Deputy
Commissioner can make the Reference after the expiry of 3
years and 90 days from the date of the Reference
application."
11. In view of some differences of opinion that subsequently
arose mainly because of the failure to appreciate the reasoning of the
Division Bench as above, the question was referred to a Full Bench.
The Full Bench, by a majority has overturned the above view. That
decision of the Full Bench is reported as Hanamappa vs. The Special
Land Acquisition Officer (ILR 1998 Karnataka 4071). That decision
is challenged in Civil Appeal No.1566 of 2001.
12. While one of the Judges agreed with the position exponded
by the Division Bench in G.C. Paramraj (supra), two of the learned
Judges proceeded to hold that the Division Bench in G.C. Paramraj
(supra) did not lay down the correct law. It is seen that while holding
so, the court stated that there was no mandatory obligation on the
Deputy Commissioner to make a reference within 90 days as provided
under Section 18(3)(b) of the Act and there is no provision for loss of
right in the claimant once he had made an application for reference
under Section 18(1) of the Act within the time prescribed by Section
18(2) of the Act. The consequences flowing from the claimant not
seeking to enforce his right under Section 18(3)(b) of the Act in a case
where the reference was not made within the time mandated by the
statute was got over by invoking the theory that there was no provision
for extinguishment of the right and that a party cannot be penalised for
the failure of the Deputy Commissioner to make the reference. The
majority stated that the decision in The Addl. Spl. Land Acquisition
Officer, Bangalore vs. Thakoredas, Major and others (supra) rendered by
this Court would not in any manner suggest that the view they are adopting
was erroneous. The question whether the expression "shall" used in Section
18(3)(a) of the Act made it mandatory for the Deputy Commissioner to
make a reference within 90 days or whether the provision was only directory
was discussed at length. The presiding Judge, on the other hand,
adopted the approach made in Paramraj's case and held that there was
no reason to reconsider the view expressed therein. The learned Judge
noticed that even in the matter of issue of a writ of mandamus under
Article 226 of the Constitution of India, in State of M.P. vs. Bhai Lal
(AIR 1964 SC 1006) this Court had held that after the expiry of the
period of limitation and on the ground of uncondonable laches, the
same cannot be sought for or issued.
13. The majority, in our view, was not justified in mixing up
the position obtaining under Section 18 of the Central Act and the
position obtaining under Section 18 of the Act as amended in
Karnataka. The Court had to consider the scheme of Section 18 as
obtaining in Karnataka, the scope of the relevant provisions and the
consequences arising from it, unaffected by what might be the position
under Section 18 of the Central Act. Section 18 of the Act as in
Karnataka, in fact, confers additional rights on a claimant by providing
an extended time for making a claim for reference, possibly considering
the situation available in the State and a further right on the claimant to
approach the Land Acquisition Court for directing a reference to it,
based on the application already made by him before the Deputy
Commissioner. The High Court, in our view, erred in proceeding on an
enquiry as to whether the obligation under Section 18(3)(a) of the Act
on the Deputy Commissioner was mandatory or directory. In fact, if
one were to go by the use of the expression "shall", and the
introduction of Section 18(3)(b) and the right conferred thereunder,
there is no difficulty even in taking the view that it is mandatory for the
Deputy Commissioner to make the reference within 90 days of receipt
of the application for reference. When he fails to perform the mandate
of the statute, the provision gives the claimant a right to approach the
Court which could compel the reference to be made by the Deputy
Commissioner who had failed to perform his duty under Section
18(3)(a) of the Act and in that process, even award costs of the
proceedings against the Deputy Commissioner, and in appropriate
cases, to be recovered from him personally. But what is relevant is not
the question whether the duty cast on the Deputy Commissioner under
Section 18(3)(a) of the Act as in Karnataka is mandatory or it is
directory. On its scheme, the Deputy Commissioner is expected to
make the reference within 90 days of the receipt of the application. On
his failure to do so, the claimant has to approach the Land Acquisition
Court for getting the matter referred.
14. Extinguishment of a right can be expressly provided for or
it can arise by the implication from the statute. Section 18 of the Act as
in Karnataka sets out a scheme. Having made an application for
reference within time before the Deputy Commissioner, the claimant
may lose his right by not enforcing the right available to him within the
time prescribed by law. Section 18(3)(a) and Section 18(3)(b) read in
harmony, casts an obligation on the claimant to enforce his claim within
the period available for it. The scheme brings about a repose. It is
based on a public policy that a right should not be allowed to remain a
right indefinitely to be used against another at the will and pleasure of
the holder of the right by approaching the court whenever he chooses to
do so. When the right of the Deputy Commissioner to make the
reference on the application of the claimant under Section 18(1) of the
Act stands extinguished on the expiry of 3 years and 90 days from the
date of application for reference, and the right of the claimant to move
the Court for compelling a reference also stands extinguished, the right
itself looses its enforceability and thus comes to an end as a result.
This is the scheme of Section 18 of the Act as adopted in the State of
Karnataka. The High Court is, therefore, not correct in searching for a
specific provision bringing about an extinguishment of the right to have
a reference and on not finding it, postulating that the right would
survive for ever.
15. Under the scheme of Section 18 of the Act as in Karnataka,
thus the claimant loses his right to move the Court for reference on the
expiry of three years and 90 days from the date of his making an
application to the Deputy Commissioner under Section 18 (1) of the
Act within the period fixed by Section 18(2) of the Act. This position
is now settled by the decision of this Court in The Addl. Spl. Land
Acquisition Officer, Bangalore vs. Thakoredas, Major and others
(supra). This loss of right to move the court precludes him from
seeking a remedy from the court in terms of Section 18 of the Act.
This loss of right in the claimant puts an end to the right of the claimant
to seek an enhancement of compensation. To say that the Deputy
Commissioner can make a reference even after the right in that behalf
is lost to the claimant, would be incongruous. Once the right of the
claimant to enforce his claim itself is lost on the scheme of Section 18
of the Act, there is no question of the Deputy Commissioner who had
violated the mandate of sub-Section 3(a) of Section 18 of the Act,
reviving the right of the claimant by making a reference at his sweet-
will and pleasure, whatever be the inducement or occasion for doing so.
On a harmonious understanding of the scheme of the Act in the light of
the general principle that even though a right may not be extinguished,
the remedy may become barred, it would be appropriate to hold that on
the expiry of three years and 90 days from the date of an application for
reference made within time under Section 18(1) of the Act, the remedy
of the claimant to have a reference gets extinguished and the right to
have an enhancement becomes unenforceable. The Deputy
Commissioner would not be entitled to revive a claim which has thus
become unenforceable due to lapse of time or non-diligence on the part
of the claimant.
16. The object of bringing in Section 18 in the amended form
in Karnataka has been highlighted in the decisions of that Court. The
object was to ensure that under-hand deals did not take place in the
office of the Deputy Commissioner and to prevent belated applications
and predated applications being received by his office and references
made, years after the acquisition is completed. The object was also to
ensure that all matters in connection with an acquisition were
completed within a reasonable time and claims for enhancement did not
hang like Damocles sword over the Government or over a company for
the benefit of which the acquisition is undertaken. Therefore, any
interpretation based on which the Deputy Commissioner is given the
power to revive a claim which has become unenforceable, would defeat
the very purpose for which Section 18 in the form in which it is, was
enacted in the State of Karnataka. The majority in the full bench was,
therefore, in error in thinking that the Deputy Commissioner could
make a reference at any time at his sweet-will and pleasure,
notwithstanding the fact that the right to move the court in that behalf
has been lost to the claimant himself.
17. The majority, in our view, has not properly appreciated the
position highlighted in the decision of that Court in Assistant
Commissioner Versus Laxmi Bai [I.L.R. 1987 Karnataka 2132) that
the power to make a reference under Section 18 (3) subsists till the
right of the party to make an application before the Court seeking a
direction to the Deputy Commissioner to make a reference exists and
that the cessation of the right of the party to apply to the court for
seeking a direction to the Deputy Commissioner to make a reference, is
also the point at which the power of the Deputy Commissioner to refer,
ceases. We think that this position logically emerges from the scheme
of Section 18 of the Act as adopted in Karnataka.
18. The language of Section 18 is plain as indicated by the
High Court. But the question is what is the scheme that has been
formulated by Section 18 of the Act vis-`-vis a claim for enhancement.
The scheme under Section 18 in Karnataka is a departure from the
Central Act and the scheme in Karnataka has to be understood, based
on the provisions in Section 18 as in Karnataka and the consequences
emerging from it. The question whether the time fixed under Section
18(3)(a) is mandatory or directory and whether time fixed for
performance of a duty is generally considered directory or mandatory
are all questions that may not have much relevance in the context of the
scheme of Section 18 of the Act. Whether mandatory or directory, on
the failure of the Deputy Commissioner to make a reference within 90
days from the date of an application under Section 18(1) of the Act, the
claimant is given the right to approach the Land Acquisition Court
seeking the compelling of a reference by the Deputy Commissioner.
Once the right to move for a compelled reference is lost to the claimant,
on the scheme of Section 18, the very right to have a claim for
enhancement, would come to an end in view of the fact that the remedy
in that behalf becomes barred. Thereafter, the Deputy Commissioner
cannot revive that right to a reference.
19. The High Court has made much of the fact that there is no
obligation on the Deputy Commissioner under Section 18 of the Act to
convey the information to the claimant about the making of the
reference or the declining of the application for reference. Once a
claimant has made his application for reference within the period
prescribed by Section 18 of the Act, and he does not get any notice
from the reference court regarding the reference made to that court for
enforcement of his claim for enhanced compensation, it is for the
claimant to move the concerned court for getting a reference made in
terms of Section 18 of the Act. If he gets intimation from the reference
court about the lodging of the reference, obviously, it becomes
unnecessary for him to approach the court for compelling a reference.
But in a case where he gets no intimation from the reference court
about the reference having been made, it is for him to invoke the
jurisdiction of the reference court under Section 18(3)(b) of the Act
within the time prescribed therefor by law. The extinguishment of the
remedy by way of moving the civil court is not dependent on receipt or
otherwise of an intimation from the Deputy Commissioner about the
fate of his application for reference.
20. The view we have taken, after all, does not deprive a
claimant who had protested, of his right to enhanced compensation in
view of the introduction of Section 28A of the Land Acquisition Act.
He could seek an enhancement based on any award that might have
been made within the time prescribed therefor in respect of land
covered by the same notification.
21. Then the question is, whether in the context of Section 18
of the Karnataka amendment, the decision of this Court in Thakoredas
(supra) and our discussion as above, Section 5 of the Limitation Act
could be invoked or would apply to an application under Section
18(3)(b) of the Act. This Court has held that Section 5 of the
Limitation Act has no application to proceedings before the Collector
or Deputy Commissioner here, while entertaining an application for
reference. We see no reason not to accept that position. Then arises
the question whether Section 5 could be invoked before the Land
Acquisition Court while making an application under Section 18(3)(b)
of the Act. We have held in agreement with the earlier Division Bench
of the Karnataka High Court, that the right to have a reference enforced
through court or through the Deputy Commissioner becomes
extinguished on the expiry of three years and 90 days from the date of
the application for reference made in time. Consistent with this
position it has necessarily to be held that Section 5 of the Limitation
Act would not be available since the consequence of not enforcing the
right to have a reference made on the scheme of Section 18 of the Act
as obtaining in Karnataka, is to put an end to the right to have a
reference at all. Since in that sense it is an extinguishment of the right,
the right cannot be revived by resorting to Section 5 of the Limitation
Act. We may incidentally notice that in Thakoredas (supra) this
Court rejected the application under Section 18(3)(b) of the Act which
was beyond time, though, of course, there was no specific discussion
on this aspect.
22. An application under Section 18(3)(b) of the Act is to compel a
reference by the Deputy Commissioner. We have held that on the expiry of
three years and 90 days from the date of the application for reference
seeking enhancement the right of the Deputy Commissioner to make the
reference comes to an end. In that context, and in the context of the fact
that the claimant himself loses his right to move the court for compelling a
reference, it is not possible to hold that by invoking Section 5 of the
Limitation Act before the Land Acquisition Court the claimant can get over
the bar to the remedy created by Section 18 of the Act. We are, therefore,
of the view that Section 5 of the Limitation Act would have no application
while approaching the court under Section 18(3)(b) of the Act and if the
application is not within the time as indicated above, the same has only to be
dismissed as was done in Thakoredas's case (supra).
23. In the light of our discussion as above, we hold that the High
Court was in error in holding that the Deputy Commissioner could make a
reference even after the expiry of three years and 90 days from the date of
the application for reference made by the claimant within the time prescribed
by Section 18(2) of the Act. We uphold the view of the High Court in
Paramraj's case (supra) that the remedy having become barred the right
could not thereafter be enforced. In that context, we hold that the claimant
while approaching the court under Section 18(3)(b) of the Act would not be
entitled to invoke Section 5 of the Limitation Act. In the light of these, we
allow these appeals and set aside the orders of the High Court. We dismiss
the applications for reference made by the claimants. We also uphold the
view of the Land Acquisition Court that a reference made beyond the expiry
of three years and 90 days from the date of application for reference by the
Deputy Commissioner is incompetent. We hold that the respondents are not
entitled to claim any enhancement by recourse to Section 18 of the Act. In
the circumstances we make no order as to costs.
CONSTITUTION OF INDIA, 1950: Articles 226 and 227 - High Court in writ jurisdiction setting aside orders of trial and revisional courts whereby they had rejected defendant's application under Or.8 r.10 CPC for extending time to file written statement =HELD: Jurisdiction of High Court under Articles 226 and 227 is limited - It could have set aside the orders only on the ground of illegality, irrationality and procedural impropriety - Trial court had assigned sufficient and cogent reasons in support of its orders - High Court erred in setting aside the orders without assigning any reason therefor - Judgment of High Court set aside - Code of Civil Procedure, 1908 - Or. 8, r.10. R.N. Jadi & Brothers and Ors. Vs. Subhashchandra (2007) 6 SCC 420 and M. Srinivasa Prasad & Ors. Vs. The Comptroller & Auditor General of India & Ors. 2007 (5) SCALE 171, relied on. Kailash Vs. Nanhku and Ors. (2005) 4 SCC 480, referred to. Case Law Reference: (2005) 4 SCC 480 referred to para 11 2007 (5) SCALE 171 relied on para 13 (2007) 6 SCC 420 relied on para 13 CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7209 of 2008. From the final Judgment and Order dated 20.9.2007 of the High Court of Judicature at Allahabad in Writ Petition No. 45197 of 2007. R.S. Hegde, Chandra Prakash and P.P. Singh for the Appellant. M.P. Shorawala, Jyoti Saxena, Vipin K. Saxena and T.N. Saxena for the Respondents.
, , , 2009(1 )SCALE71 ,
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 7209 OF 2008
(Arising out of S.L.P. (C) No.3311/2008)
Mohammed Yusuf ...Appellant
Versus
Faij Mohammad & Ors. ...Respondents
O R D E R
Leave granted.
1. This appeal is directed against a judgment and order dated 20.9.1997
passed by a learned Single Judge of the High Court of Judicature at Allahabad
allowing the writ petition filed by the respondents herein questioning the validity of
an order dated 29.8.2007 passed by the learned Additional District Judge, Mathura in
Civil Revision No. 322/2005 affirming the order dated 24.10.2005 passed by the
learned Civil Judge whereby and whereunder while rejecting the application filed by
the appellant herein under Order 8 Rule 10 of the Code of Civil Procedure, a date was
fixed for recording the evidence of the plaintiffs and the application filed by the
respondents herein praying for condoning the delay in filing the written statement
was rejected.
2. The basic fact of the matter is not in dispute.
3. Appellant herein filed a suit for a decree for permanent injunction in the
year 2002. A separate application
-1-
for grant of temporary injunction was also filed. Summons upon the defendants were
served on 6.7.2002. The defendants appeared through their learned advocate on
19.7.2002.
4. Appellant filed an application for grant of temporary injunction which was
rejected on 28.1.2004. An appeal was preferred thereagainst which was disposed of by
an order dated 14.5.2004. It is neither in doubt nor in dispute that the defendants-
respondents filed applications for extension of time for filing written statement
number of times. The matter was also adjourned on one ground or the other.
5. On or about 31.1.2005, the appellant also filed an application before the
learned trial Judge for pronouncing judgment in terms of Order 8 Rule 10 of the
Code of Civil Procedure, inter alia, on the premise that the defendants-respondents
did not file any written statement. It is on the same date the defendants filed an
application for filing written statement. No application for condonation of delay in
filing the written statement was, however, filed.
6. However, on 23.9.2005, as indicated hereinbefore by reason of an order
dated 24.10.2005, while rejecting the said application of the respondent, the trial
Judge allowed the plaintiff to examine his own witnesses in support of his case.
-2-
7. A Revision Petition was filed by the respondents which by reason of an
order dated 29.8.2007 was dismissed by the learned District Judge.
8. Being aggrieved by and dissatisfied with the said order, the respondents
filed a Writ Petition which was marked as CMWP No. 45197/2007 before the High
Court. By reason of the impugned judgment, the High Court has allowed the said
Writ Petition, directing:
" Considering the facts and circumstances of the case, this Court is of the
opinion that the petitioner should be permitted to contest the suit on merit.
In view of the aforesaid, the order of the trial court refusing to keep the
written statement on record is set aside. The written statement shall be kept on the
record and the defendant-petitioner shall be permitted to contest the matter on merit
subject to payment of cost of Rs.10,000/-, which shall be deposited by the defendant-
petitioner in favour of the plaintiff by means of a bank draft within two weeks. The
amount so deposited can be withdrawn by the plaintiff. The writ petition is allowed."
9. Mr. R.S. Hegde, learned counsel appearing on behalf of the appellant
would submit that keeping in view the fact that the summons upon the defendants
were served on 6.7.2002 and no step having been taken to file written statement for a
period of three years and only on 31.5.2005, an application for filing written
statement having been filed, the High Court committed a serious error in passing the
impugned judgment.
10. Learned counsel appearing on behalf of the respondents, on the other hand,
would contend that from a
-3-
perusal of the order-sheet before the trial Court, it would appear that dates after
dates were fixed for filing written statement and, furthermore, having regard to the
fact that the appellant himself preferred an appeal before the learned District Judge
against an order rejecting his application for grant of temporary injunction, the
written statement could not be filed.
11. It is urged that the provisions of Order 8 Rule 1 of the Code of Civil
Procedure having been held to be directory in nature by this Court in Kailash Vs.
Nanhku and Ors. - (2005) 4 SCC 480, this Court may not exercise its discretionary
jurisdiction under Article 136 of the Constitution of India.
12. Order 8 Rule 1 of the Code of Civil Procedure reads thus:
" [1. Written statement:- The defendant shall, within thirty days
from the date of service of summons on him, present a written statement of his
defence:
Provided that where the defendant fails to file the written
statement within the said period of thirty days, he shall be allowed to file the same on
such other day, as may be specified by the Court, for reasons to be recorded in
writing, but which shall not be later than ninety days from the date of service of
summons.]
13. Although in view of the terminologies used therein the period of 90 days
prescribed for filing written statement appears to be a mandatory provision, this
Court in Kailash(supra) upon taking into consideration the fact that in a given case
the defendants may face extreme hardship in
-4-
not being able to defend the suit only because he had not filed written statement
within a period of 90 days, opined that the said provision was directory in nature.
However, while so holding this Court in no uncertain terms stated that defendants
may be permitted to file written statement after expiry of period of 90 days only on
exceptional situation. The question came up for consideration before this Court in M.
Srinivasa Prasad & Ors. Vs. The Comptroller & Auditor General of India & Ors. -
2007 (5) SCALE 171, wherein a Division Bench of this Court upon noticing Kailash
(supra) held as under:
" 7. Since neither the trial Court nor the High Court have indicated any
reason to justify the acceptance of the written statement after the expiry of time fixed,
we set aside the orders of the trial Court and that of the High Court. The matter is
remitted to the trial Court to consider the matter afresh in the light of what has been
stated in Kailash's case(supra). The appeal is allowed to the aforesaid extent with no
order as to costs."
14. The matter was yet again considered by a three-judge Bench of this Court
in R.N.Jadi & Brothers and Ors. Vs. Subhashchandra - (2007) 6 SCC 420. P.K.
Balasubramanyan J., who was also a member in Kailash(supra) in his concurring
judgment stated the law thus:
" 14. It is true that procedure is the handmaid of justice. The court must
always be anxious to do justice and to prevent victories by way of technical
knockouts. But how far that concept can be stretched in the context of the
amendments brought to the Code and in the light of the mischief that was sought to
be averted is a question that has to be seriously considered. I am conscious that I was
a party to the decision in Kailash Vs. Nanhku which held that the provision was
directory and not mandatory. But there could be situations where even a procedural
provisional could be construed as mandatory, no doubt retaining a power in the
Court, in an appropriate case, to exercise a jurisdiction to
-5-
take out the rigour of that provision or to mitigate genuine hardship. It was in that
contest that in Kailash Vs. Nanhku it was stated that the extension of time beyond 90
days was not automatic and that the court, for reasons to be recorded, had to be
satisfied that there was sufficient justification for departing from the time-limit fixed
by the Code and the power inhering in the court in terms of Section 148 of the Code.
Kailash is no authority for receiving written statement, after the expiry of the period
permitted by law, in a routine manner.
15. A dispensation that makes Order 8 Rule 1 directory, leaving it to the
courts to extend the time indiscriminately would tend to defeat the object sought to be
achieved by the amendments to the Code. It is, therefore, necessary to emphasise that
the grant of extension of time beyond 30 days is not automatic, that it should be
exercised with caution and for adequate reasons and that an extension of time beyond
90 days of the service of summons must be granted only based on a clear satisfaction
of the justification for granting such extension, the court being conscious of the fact
that even the power of the court for extension inhering in Section 148 of the Code, has
also been restricted by the legislature. It would be proper to encourage the belief in
litigants that the imperative of Order 8 Rule 1 must be adhered to and that only in
rare and exceptional case, will the breach thereof will be condoned. Such an approach
by courts alone can carry forward the legislative intent of avoiding delays or at least
in curtailing the delays in the disposal of suits filed in courts. The lament of Lord
Denning in Allen Vs. Sir Alfred McAlpine & Sons that law's delay have been
intolerable and last so long as to turn justice sour, is true of our legal system as well.
Should that state of affairs continue for all times?"
15. In view of the authoritative pronouncements of this Court, we are of the
opinion that the High Court should not have allowed the writ petition filed by the
respondent, particularly, when both the learned trial judge as also the Revisional
Court had assigned sufficient and cogent reasons in support of their orders.
16. As indicated hereinbefore, the High Court allowed the writ petition and
thereby set aside the orders passed by the
-6-
trial Court as also the Revisional Court without assigning any reason therefor. The
jurisdiction of the High Court under Article 226 and 227 of the Constitution of India
is limited. It could have set aside the orders passed by the learned trial Court and the
Revisional Court only on limited ground, namely, illegality, irrationality and
procedural impropriety. The High Court did not arrive at a finding that there had
been a substantial failure of justice or the orders passed by the trial Court as also by
the Revisional Court contained error apparent on the face of the record warranting
interference by a superior Court in exercise of its supervisory jurisdiction under
Article 227 of the Constitution of India.
17. For the reasons stated above, the impugned judgment of the High Court
cannot be sustained. It is set aside accordingly. The appeal is allowed. In the facts and
circumstances of this case, there shall be no order as to costs.
18. In this view of the matter the respondents would be entitled to withdraw
the sum of Rs.10,000/- deposited by them as costs.
......................J.
[S.B. SINHA]
.....................J
[ CYRIAC JOSEPH ]
New Delhi,
December 2, 2008.
-7-
Apex court condon the 10 years delay in filing ..= In our opinion, in view of the facts narrated by us, the High Court has erred in rejecting the Letters Patent Appeal on the ground of delay and latches on the part of the appellant in approaching the court nearly after 10 years of passing the impugned order. 16) The High Court has also rejected the Letters Patent Appeal, on the ground that the wives of the original declarant Gelabhai had no right over the land and, therefore, they could not have executed any Will in favour of the applicant bequeathing the lands in question. This reasoning of the Division Bench of the High Court is also not correct in view of the orders passed by Mamaltdar, who had recognized the rights of the wives of the original declarant, who had died during the pendency of the proceedings before him and that finding has become final, since the respondents have not questioned the same before any superior forums. The impugned order is set aside. The matter is remitted back to the High Court, with a request to
NON-REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 7365 OF 2009
(Arising out of SLP(C) No. 11281 of 2006)
Haribhai Lakhmanbhai Seedhav ..........Appellant
Versus
State of Gujarat & Ors. ........Respondents
WITH
CIVIL APPEAL NO. 7366 OF 2009
(Arising out of SLP(C) No. 11368 of 2006)
Bhavanbhai Lakhmanbhai Seedhav ..........Appellant
Versus
State of Gujarat & Ors. ........Respondents
JUDGMENT
H.L. Dattu,J.
S.L.P(C) No. 11281 of 2006
Leave granted.
2) This appeal has been filed against the judgment of Gujarat High
Court dated 17.4.2006 in MCA No. 892 of 2006 in Letters Patent
1
Appeal No. 832 of 2006, wherein and whereunder, the application
for grant of leave to prefer Letters Patent Appeal is dismissed,
firstly, on the ground that the wives of the original declarant had no
right, title or interest over the land and, therefore, the Will executed
by them in favour of the appellant would not give him any right in
the land, secondly, on the ground of delay and latches in filing the
appeal nearly after ten years from the date of the judgment and order
passed in the writ petition by the learned Single Judge.
3) This case has a chequered history. Reference to all those
proceedings may not be necessary for the disposal of this appeal.
Suffice to notice the events and the orders passed by the authorities
under Gujarat Agricultural Land Ceiling Act, 1960 and the High
Court on or after the year 1986.
4) Sri Gelabhai Bhagwanbhai (hereinafter referred to as `Gelabhai'),
resident of Village Adariyana, Taluka : Dasada, District :
Surenderanagar, Gujarat, was an agriculturist and was owning large
extent of agricultural lands at Adariyana Village. During his life
time, he had filed an application on 27.9.1976, under Section 8 of
the Gujarat Agricultural Land Ceiling Act, 1960, (hereinafter
2
referred to as `the Act') before the competent authority under the
Act. The order passed under the Act was the subject matter of
several rounds of litigations before various forums under the Act.
During the pendency of these proceedings, the original declarant,
Gelabhai expired on 17.1.1979, leaving behind his two wives. He
had no sons or daughters. After the death of Gelabhai, the property
vested with the wives. The two widows of Gelabhai, Smt. Samuben
and Smt. Puriben expired on 18.6.1991 and 7.7.2000 respectively,
but during their life time, they had executed General Power of
Attorney in favour of Parmabhai Bhagwanbhai, resident of Village:
Adariyana, Taluka: Dasada, District: Surendranagar, Gujarat. Both
the widows before their demise had also executed a Will in favour of
their nephew, Sri Sindhav Bhavanbhai Laxmanbhai, who is the
appellant in this appeal.
5) Pursuant to the order passed by the Revenue Tribunal dated
21.1.1986 in Revision Application TEN/BA No. 1254 of 1984, the
Mamlatdar and Agricultural Land Tribunals, Patdi, by his order
dated 1st day of August, 1986, declared that the legal heirs of the
original declarant are entitled to hold 54.00 Acres of unirrigated
lands out of the total extent of 89.04 Acres and the excess lands of
3
nearly 35.04 Acres is to be treated surplus land and requires to be
surrendered to the State Government from the date of the order free
from all encumbrances, however, subject to provisions of Section
21(2) and Section 19 and Chapter 8 of Land Ceiling Act. The
Mamlatdar also recognized that the heirs of the original declarant
were entitled to hold the highest ceiling of one unit of land.
6) Dissatisfied with the order passed by the Mamlatdar dated 1.8.1996,
the appellant had filed Ceiling Appeal No. 1/90-91 before the
Deputy Collector, Dhangdhra Sub-Division, Dhangdhra. The
Deputy Collector rejected the Ceiling Appeal vide order dated
30.3.1991, holding that the order of the Mamlatdar declaring land
measuring 35 Acres 04 Gunthas to be surplus, was in consonance
with the provisions of the Act.
7) Being aggrieved by the said order dated 30.3.1991, the legal heirs of
the original applicant had filed Revision Application No.
TEN.BA/404/91 before the Gujarat Revenue Tribunal as provided
under Section 38 of the Gujarat Agricultural Lands Ceiling Act,
1961. The Tribunal vide its order dated 14.6.1993, partly allowed
the revision application by holding that "except transfer in respect of
4
Sy. No. 276 (A.5 Gs. 28-3/4), the rest of the transfers are to be
ignored in accordance with Sections 7 and 8 of the Act". As a result
of such order, the land measuring 5 Acres 28-3/4 Gs., was ordered to
be excluded from the holding of Gelabhai and the matter was
remanded back to the Mamlatdar for declaration of net area of
surplus land and further a direction was issued to the Mamlatdar to
give an opportunity to the declarant/landholders to exercise their
option regarding selection of the surplus land to be surrendered and
then to take possession of the surplus land.
8) Being aggrieved by the order dated 14.6.1993, the legal heirs of
Gelabhai along with others filed a writ petition before the High
Court in Special Civil Application No. 806 of 1993. The High Court
by its order dated 4.4.1996 dismissed the Writ Petition.
9) The office of the Mamlatdar addressed a letter dated 29.9.2004 to
the Power Attorney holder of legal heirs of the deceased Gelabhai
and requested him to inform the latest status of Special Civil
Application No. 8064 of 1993. It is apparent that even the State
Government was not aware of the order dated 4.4.1996 passed by
the High Court. The Power Attorney holder by his letter dated
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11.10.2004, informed the Mamlatdar that with the demise of both
the legal heirs of Gelabhai, he had ceased to be their Power Attorney
holder and had nothing to do with the dispute pending before various
forums.
10) The appellants and others were served with a notice dated
30.10.2006, under Rule 10 of the Ceiling Rules by the office of the
Mamlatdar, whereby they were informed that they were in
possession of some lands which had been declared surplus land
under the Ceiling Act in the hands of Gelabhai and they were
directed, apart from others, to submit any objections or suggestions
with regard to the surplus lands within one month from the receipt of
the notice; to select such part or such parts which they wish to
continue to possess; and to submit the details of the land selected
within one month.
11) The appellant who claims to be the beneficiary under the Will, said
to have been executed by both the wives of the original declarant,
filed Letters Patent Appeal, inter alia, challenging the order passed
by learned Single Judge in SCA No. 8064 of 1993, along with an
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application for leave to appeal being MCA No. 892 of 2006 and also
an application for condonation of delay in filing the appeal.
12) The Division bench of Gujarat High Court vide its order dated
17.4.2006, dismissed the application MCA No. 892 of 2006, inter
alia, holding that the wives of Gelabhai had no right over the land
and, if any Will was executed in favour of the appellant, no right
over the land could have been conferred by such a will and, lastly,
leave to file appeal cannot be granted against an order dated
4.4.1996 after a lapse of 10 years.
13) We have heard Sri L. Nageshwar Rao, learned Senior Counsel for
the appellant and Smt. Hemantika Wahi, learned counsel for the
respondent. Learned Senior Counsel for the appellant submitted
that the High Court was in error in rejecting the application filed by
the appellant for grant of leave to file the appeal against the order
passed by the learned Single Judge on the ground of delay and
laches on the part of the appellant in approaching the court nearly
after ten years from the date of passing the impugned order and,
secondly, the wives of late Gelabhai, the original declarant, had no
title, right or interest over the land and even, if any, Will was
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executed in favour of the appellant, the same did not confer any
right over the land in view of the provisions of the Ceiling Act. The
learned counsel for the respondent justifies the impugned order
passed by the High Court.
14) We do not propose to go into the question on the merits of the main
appeal, in view of the course, we propose to adopt while disposing
of this appeal, which is primarily against the order passed by the
Division Bench of the High Court rejecting the application filed for
leave to appeal against the order passed by the learned Single Judge
in SCA No. 8064 of 1993 dated 04.04.1996.
15) The first issue is, whether there was any delay in filing the
application for grant of leave to prefer Letters Patent Appeal in the
facts and circumstances of the case. The original declarant Gelabhai
Bhagwanbhai expired on 17.1.1979, leaving behind his two wives
Smt. Samuben and Smt. Puriben who had inherited the property of
the declarant. Since they did not have their own sons and daughters,
they had executed the General Power of Attorney in favour of Shri
Parambhai Bhagwanbhai and others, not only to manage the affairs
of vast extent of agricultural lands, and also several litigations
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pending before various forums including the authorities under the
Land Ceiling Act. The facts which are not in dispute and which
cannot be disputed would reveal that the Power of Attorney holders
were prosecuting the lis before various forums diligently. They had
also filed SCA No. 8064 of 1993 before the learned Single Judge of
Gujarat High Court challenging the order passed by the Gujarat
Revenue Appellate Tribunal. It has also come on record, that,
during their life time, they had executed a Will in favour of their
nephew Sri Sindhav Bhavanbhai Laxmanbhai, and they were not
aware of the execution of the Will in their favour till the year 2002
and, therefore, they could not take possession of the lands in
question till 2002. These details, in our view, may not be crucial
factors for deciding these appeals, but they are noticed only for
narration of completion of factual matrix. The question is whether,
the appellants who claim that they have some interest, right and title
in the land were not aware of the disposal of the SCA No. 8064 of
1993 dated 4.4.1996. The answer to this issue is not a vexed issue,
since, firstly, appellant was not a party to the proceedings before the
High Court nor was aware of the proceedings pending before the
High Court, since the affairs of litigation of the ceiling proceedings
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of the lands in question was taken care of by the General Power
Attorney holders of the wives of the original owner of the lands. It
is the case of the applicant that after the demise of the wives of the
declarant, the General Power of Attorney holder had not participated
in the pending proceedings before the High Court. It is also brought
on record the letter from the office of Mamlatdar dated 29.9.2004,
addressed to the Power of Attorney holder of the legal heirs of
Gelabhai to inform them the status of the proceedings pending
before the High Court. It only demonstrates that even the
respondents were not aware of the dismissal of the writ petition,
though they were parties in the writ petition. If this was the state of
affairs, what to say about the applicant who was not even a party to
any of the proceedings either before the Revenue authorities or
before the High Court. Therefore, the assertion made, that they
came to know the dismissal of the writ petition filed by General
Power of Attorney holder, only when they were served with notice
dated 30.1.2006 under Rule 10 of the Ceiling Rules by the office of
Mamlatdar. The applicant/appellant within a reasonable period
thereafter has taken steps to file Letter Patent's appeal accompanied
by an application for grant leave to file the appeal and also an
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application for condonation of delay in filing the appeal. In our
opinion, in view of the facts narrated by us, the High Court has erred
in rejecting the Letters Patent Appeal on the ground of delay and
latches on the part of the appellant in approaching the court nearly
after 10 years of passing the impugned order.
16) The High Court has also rejected the Letters Patent Appeal, on the
ground that the wives of the original declarant Gelabhai had no right
over the land and, therefore, they could not have executed any Will
in favour of the applicant bequeathing the lands in question. This
reasoning of the Division Bench of the High Court is also not correct
in view of the orders passed by Mamaltdar, who had recognized the
rights of the wives of the original declarant, who had died during the
pendency of the proceedings before him and that finding has become
final, since the respondents have not questioned the same before any
superior forums.
17) In view of the above discussion, we cannot sustain the impugned
order passed by the Division Bench of Gujarat High Court.
18) In the result, the appeal is allowed. The impugned order is set aside.
The matter is remitted back to the High Court, with a request to
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restore the Letters Patent Appeal No. 832 of 2006 on its board and
decide the appeal on merits. In the facts and circumstances of the
case, parties are directed to bear their own costs.
S.L.P.(C) No. 11368 of 2006
Leave granted.
In view of the judgment in the abovesaid Civil Appeal No......../2009
arising out of S.L.P.(C) No. 11281 of 2006 pronounced today by us, the
appeal is allowed and the parties are directed to bear their own costs.
.......................................J.
[ D.K. JAIN ]
.......................................J.
[ H.L. DATTU ]
New Delhi,
November 05, 2009.
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