LAWS(SC)-2004-11-8

AHAD BROTHERS Vs. STATE OF M P

Decided On November 19, 2004
AHAD BROTHERS Appellant
V/S
STATE OF MADHYA PRADESH Respondents

JUDGEMENT

(1.) Pursuant to the Notification issued under Section 4(1) of the Land Acquisition Act, 1894 (for short the Act) an extent of 16.81 acres of land comprised in Khasra Nos.870, 871, 872, 973 and 1623/873 was acquired. The Land Acquisition Officer, considering the appellant as the owner, passed Award fixing the market value of the land acquired at the rate of Rs.450/- per acre and awarded a sum of Rs.15,307.58 paise as compensation. Not being satisfied with the amount of compensation, so awarded, the appellant sought for reference under Section 18 of the Act for enhancement of compensation claiming a sum of Rs.32,91,771.50. The Reference Court accepted the Award made by the Land Acquisition Officer holding that the compensation awarded was adequate. Consequently, it rejected the reference. Aggrieved by the order of the Reference Court the appellant filed First Appeal No.82 of 1969 in the High Court. The High Court allowed the appeal, set aside the order of Reference Court and remanded the matter to it to decide the reference afresh. The learned District Judge (Reference Court) framed an additional issue as to what was the market value of the land acquired on the date of Notification issued under Section 4(1) of the Act. On the basis of the evidence recorded learned District Judge recorded a finding that the market value of the land was Rs.2/- per square foot and awarded a sum of Rs.14,64,480 as compensation for the land and Rs.6,600/- as compensation for the trees standing thereon with solatium and interest. The State, aggrieved by the order of the Reference Court, filed First Appeal No.141 of 1980 in the High Court. The appellant also filed cross objections seeking further enhancement of the compensation as per the claim. During the pendency of the appeal State Government made application for amendment in the written statement to the effect that the appellant was not the owner of the land and was a licensee or a lessee. The State Government also made an application seeking permission to file additional evidence. The High Court allowed the applications made for amendment as well as for taking the additional evidence. The High Court after allowing the said applications set aside the Award made by the District Court and remitted the matter again to the Additional District Judge for determining the right of the appellant in the land and to determine the market value of those rights on the date of Notification issued under Section 4(1) of the Act. However, after the remand the State Government did not amend its written statement as directed by the High Court. But the learned District Judge in compliance of the order of the High Court framed additional issues and took additional evidence. On the basis of the material available on record the learned District Judge recorded findings that the appellant was having ownership rights in the acquired land. He determined the market value of the land acquired at Rs.16,64,480/- and Rs.6,600/- as compensation for the trees and solutium at the rate of 15% as also interest at the rate of 3% per year from the date of taking possession of the land. The State Government for the second time filed appeal in the High Court questioning the validity and correctness of the order made by the learned District Judge. The appellant also filed cross objections claiming enhancement of the compensation for the land acquired at the rate of Rs.5/- per square foot. The High Court partly allowed the appeal filed by the State and dismissed the cross objections filed by the appellant by the impugned judgment. In the impugned judgment the High Court fixed market value of the land acquired at the rate of Rs.2/- per square yard as against the market value fixed by the Reference Court at the rate of Rs.2/- per square foot. Further, the High Court held that the appellant was entitled for compensation only to the extent of leasehold interest in the acquired land and that they were not owners of the land. Hence the appellant is before this Court aggrieved by the impugned judgment and order passed by the High Court.

(2.) The learned counsel for the appellant strongly contended that (1) the jurisdiction of the civil Court in deciding reference under Section 18 of the Act is limited and is of special nature; reference proceedings could not be converted into a suit for adjudication for title over the land acquired; the High Court committed an error in deciding the question of title and holding that the appellant had only leasehold interest in the land acquired. (2) The High Court should have appreciated the fact that the respondent-State had throughout acknowledged the title of ownership of the appellant over the land right from the date of issuance of Notification under Section 4(1) of the Act; respondent-State was bound by their conduct and they were estopped from claiming otherwise at later stage, i.e., after the whole acquisition proceedings were completed, Award had been passed and that too in the second round before the High Court. (3) The High Court committed a serious error in interfering with the well-reasoned and justified findings recorded by the District Judge on proper appreciation of both oral and documentary evidence; the High Court did not dislodge the reasons recorded by the District Court in recording findings. (4) No material was placed on record to establish that the appellant was only a lessee and not the owner; the State had accepted the appellant as the owner of the land and it was bound by the same; even otherwise the State failed to establish by placing any material on record to show that the appellant was only a lessee. In support of his submissions the learned counsel placed reliance on few decisions of this Court.

(3.) Per contra, the learned counsel for the respondents made submissions supporting the impugned judgment adopting the very reasons recorded in favour of the State in the impugned judgment.