Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 2043 of 2011, Judgment Date: Mar 02, 2016

                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION



                        CIVIL APPEAL NO. 2043 OF 2011



SHAKUNTLA DEVI                                            ...  APPELLANT (S)

                                   VERSUS

STATE OF H. P. AND OTHERS                                 ... RESPONDENT (S)



                           J  U  D  G  M  E  N  T



KURIAN, J.:



We have heard learned counsel for the parties.

This appeal  by  special  leave  is  directed  against  the  judgment  dated
01.11.2010 of the High Court of Himachal Pradesh at  Shimla  in  C.W.P.  No.
2535 of 2010 whereby the High Court dismissed the writ petition.

A notification under Section 4(1) of the  Land  Acquisition  Act,  1894  (in
short, ‘the Act’) was issued at  the  instance  of  the  State  of  Himachal
Pradesh–Respondent No. 1 for the  purpose  of  widening  of  Theog  Kotkhai-
Hatkoti road (T.K.H.) on 13.06.2008. Being  a  time  bound  project,  having
found that acquisition proceedings might take a long time,  the  respondents
proposed settlement of the compensation on  negotiations  and  acquired  the
land accordingly. It appears that in respect of the land of  the  appellant,
a Negotiated Award dated 11.09.2008 was passed wherein it  was  stated  that
the land value had been fixed on negotiations and the  appellant  shall  not
be entitled for seeking any enhancement of the market  value  under  Section
18 of the Act. It was also specifically stated in the said Negotiated  Award
that “… But they are entitled for the market value for  the  structures  and
trees (if any) separately, as per the market value which will be  determined
by the expert agencies in due course of time at the time of announcement  of
Supplementary Award along with the market value of the land, which  will  be
notified by the government under Section 4(1) of the Act if required  to  be
acquired at a later stage. …”

Thereafter, according to respondents, a supplementary Negotiated  Award  was
passed  on  18.12.2009,  in  continuation  of  the  Negotiated  Award  dated
11.09.2009 in respect of the land. It is stated therein  that,  as  per  the
valuation report provided by  the  Superintending  Engineer  (PWD)  and  the
Deputy Director (Horticulture), total value of the building  and  trees  was
fixed at Rs.37,34,264/-, which according to the respondents  and  as  stated
in the Negotiated Award, “this valuation was negotiated as  full  and  final
rates and no statutory benefits under the Act will be  admissible  over  and
above.” However, it is also stated in the said Award that  “this  award  was
enhanced in absentia, therefore, the notice under Section 12(2) of  the  Act
be issued to interest holders immediately”.

It is the case of the  appellant  that  the  said  Negotiated  Supplementary
Award dated 18.12.2009 is not a negotiated  one  and  the  rates  have  been
fixed unilaterally. That it is not negotiated  is  evident  from  the  Award
itself wherein it is stated that the  rates  have  been  fixed  as  per  the
report  of  the  Superintending   Engineer   (PWD)   and   Deputy   Director
(Horticulture) and still further that  the  Award  has  been  so  passed  in
absentia, it was specifically stated in the Supplementary Award that  notice
under Section 12(2) would be issued.

The High Court, in the  impugned  judgment  took  the  view  that  the  writ
petitioner, having accepted the land value  on  negotiated  settlement,  was
not justified in seeking any statutory benefits. However, it  was  noted  at
paragraph 3 of the judgment that:

“3. As  far  as  the  payment  compensation  for  structures  and  trees  is
concerned, it is obvious that the settlement was only  with  regard  to  the
value of the land and not with  regard  to  the  structure  and  trees  and,
therefore, supplementary award in this regard was passed.”



Learned  counsel  appearing  for  the  State,  however,  submits  that   the
Negotiated Supplementary Award is  only  in  continuation  of  the  original
Award for land, and therefore,  Supplementary  Negotiated  Award  should  be
read as part of the Award on land value. It is also  contended  that  having
accepted the compensation, there is no justification  in  turning  down  and
seeking further benefits.

We are unable to appreciate the contentions advanced by the learned  counsel
for  the  State.  One  thing  to  be  noticed  is  that  the  appellant–writ
petitioner had not accepted the Award; if so, she  would  not  have  pursued
the inadequacy of compensation before the High Court in the  writ  petition.
Section 18 of the Act entitles interested persons who had not  accepted  the
Award to seek a reference to the Court. No doubt, as per  Section  18(2)  of
the Act, the reference should be made within six  weeks  from  the  date  of
receipt of notice from the Collector under  Section  12(2)  of  the  Act  or
within six months from the  date  of  Collector’s  Award,  whichever  period
shall first expire. The Negotiated Supplementary Award seems  to  have  been
made on 18.12.2009 and the writ  petition  was  filed  on  20.05.2010.  That
apart, in the State of H.P., the Collector is entitled to extend the  period
for receipt of the application for reference beyond six weeks and  upto  six
months, in case  he  is  satisfied  that  the  applicant  was  prevented  by
sufficient cause for making the application. By virtue of  Himachal  Pradesh
Act 17 of 1986, w.e.f., 22.07.1986, Section 18 of the  Act  was  amended  by
adding a proviso. The said proviso reads as follows:

“Provided further that the Collector  may  entertain  an  application  under
this section after the expiry of the  period  of  six  weeks  but  within  a
period of six months, if he is satisfied that the  applicant  was  prevented
by sufficient cause from making the application in time.”



 As we have noted above, this is an Award announced in  absentia  and  there
is a direction to serve notice under Section 12 (2) of the Act. It  is  also
seen from the counter affidavit filed by the State  before  the  High  Court
that the amount awarded, as per  the  Supplementary  Negotiated  Award,  had
been received by the appellant only on 01.06.2010,  after  filing  the  writ
petition before the High Court on 20.05.2010.

Thus, it is clear that the appellant  had  not  accepted  the  Award,  there
being an objection with  regard  to  amount  of  compensation,  particularly
regarding  statutory  benefits.  It  was  specifically  stipulated  in   the
Negotiated Award pertaining to the land, announced  on  11.09.2008  that  “…
The interested persons are not entitled for seeking  enhancement  of  market
value of land under Section 18 of  the  Act  ...”.  Such  a  stipulation  is
conspicuously  absent  in  the  Supplementary  Negotiated   Award   on   the
structures and trees announced  on  18.12.2009,  impugned  before  the  High
Court in writ petition. Filing the writ petition before the  expiry  of  six
months from the date of the Negotiated  Award,  would  also  show  that  the
appellant  had  taken   steps   to   vindicate   her   grievance   regarding
insufficiency of compensation, by approaching the High Court  under  Article
226 of the Constitution of India. That step taken by the  appellant  is,  in
any case, within six months.

In the above circumstances, we are of the view that in  the  peculiar  facts
and circumstances of the case and for doing complete justice, the  appellant
should be given an  opportunity  to  make  a  request  for  reference  under
Section 18 of the Act before the Land Acquisition Collector for  enhancement
of compensation and for all  other  original  benefits  in  respect  of  the
Supplementary Negotiated Award.

If such an application for reference is made  before  the  Land  Acquisition
Collector who passed  the  Award  within  four  weeks,  the  same  shall  be
referred to the Court of competent jurisdiction within  a  month  thereafter
and the said Reference Court shall dispose of  the  reference  expeditiously
and preferably with a period of six months thereafter.

The appeal is accordingly disposed of.   There  shall  be  no  order  as  to
costs.


                                   .......................................J.
                                                             (KURIAN JOSEPH)


                                                            ……………………………………J.
                                                     (ROHINTON FALI NARIMAN)

New Delhi;
March 2, 2016.
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                                                                  REPORTABLE





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