Friday, 25 July 2014

Procedure to be followed by collector when there is conflicting claims between family members in land reference case


I have carefully considered the rival submissions. The fact that the Petitioner is the daughter of original owner Govind, is not in dispute. Whether the Petitioner is entitled to get any share in the land and whether she is entitled to get 50% share as claimed by her is the matter which will have to be decided by the Civil Court on the basis of the evidence to be led by the parties and by applying provisions of the Hindu Succession Act, 1956. The question is whether in the facts of this case, the Collector could have decline to make reference though the objection for disbursing compensation only in favour of Respondent Nos. 5 to 9 was raised well in advance even prior to making of award.
It is thus clear that the Supreme Court has clearly held that the proper procedure which is to be adopted by the Collector in case of dispute is that such a dispute is not to be decided by the Land Acquisition Officer under the Act and the procedure is that the Collector has to necessarily deposit the amount of compensation under Section 31 of the Act into the Court and he has to make a reference to the Court under Section 30 of the Act to decide the dispute between the contesting Claimants. In my opinion, the ratio of the Judgment in the case of Arulmighu (supra), is squarely applicable to the facts of this case and completely covers the controversy. It is thus clear that the action of the Collector to refuse to make the reference under Section 30 is clearly unsustainable and contrary to the law laid down by the Supreme Court. The Writ Petition will have to be allowed with a direction that the Respondent Nos. 5 to 9 shall deposit 50% of the amount of compensation with the Collector, who shall deposit the same in the Court which shall remain invested. This direction will apply only in respect of the disputed amount of compensation i.e. 50% of the total amount of compensation and will not apply in respect of the remaining 50% of the amount. Once the reference is made by the Collector, the reference will have to be decided by the Civil Court along with the Civil Suit filed by the Petitioner so as to ensuring that the contradictory Judgments and Orders are not passed. 
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.5679 OF 2011 

Sakhubai @ Shakuntala V
. Chopde
V/s.
National Thermal Power Corporation
& Others

CORAM:  G.S.GODBOLE,J.
DATE    :   22nd MARCH, 2012.
 Citation: 2012(5)ALLMR378, 2013(3)BomCR770, 2012(114)BOMLR1636, 2012(4)MhLj147

On 11th November, 2011, following order was passed:­
“1. Notice before admission is already issued by order dated 
28/7/2011.  This notice is now being issued for final disposal at 
the stage of admission.  Learned AGP waives service on  behalf 
of the Respondent Nos.1 to 3.  Mr. Deshmukh waives service on 
behalf of the Respondent Nos.5 to 9.  Respondent No.4 is really 
a formal party since the dispute is regarding reference under 
section 30 and 31 of the L.A. Act, 1984.  Mr. Thokade however 
to serve private notice on the Central Government Advocate for 
Union   of   India,   Ministry   of   Law   and   Justice,   Aykar   Bhavan, 
New   Marine   Lines,   Mumbai   AGP   to   get   original   record 
pertaining   to   award.   Stand   over   to   22nd  November,   2011   at 
3.p.m.
2.
The   learned   Advocates   to   circulate   compilation   of 
relevant judgments on or before 19th November, 2011.

3.
In   case   the   amount   is   deposited   in   Fixed   Deposit   or 
Savings bank account as on today, the Respondent No.5 to 9 
shall not withdraw the same until further orders.”
RULE. Rule made returnable forthwith and heard by consent 
of the parties.   Record was already produced and inspection was taken. 
The   learned   AGP   waives   service   on   behalf   of   Respondent   Nos.2   &   3. 
Respondent Nos.1 and 4 are the formal parties.   Mr. Deshmukh waives  service on behalf of Respondent Nos.5 to 9.
The dispute involved in this Petition lies in a narrow compass 



and the facts are as under:­
It is an admitted position that the land in question namely – 
(a)
land   bearing   gat   No.50/1   situated   at   Village   Aherwadi,   Taluka   South 
Solapur,   District   Solapur   was   owned   by   deceased   Govind   Narayan 
Chormule.  He died on 13th August, 1991 .  It is also not disputed that the 
Petitioner is the daughter of late Govind Chormule whereas he had one 
son named Bhagwat who died on 16th June, 1998.  Respondent Nos.5 to 9 
are the widow and children of the said Bhagwat. These facts are admitted. 
After the death of Govind, Mutation Entry was made and the name of only 
Bhagwat was recorded in the Revenue Record and the name of Petitioner 
was not recorded. There were some proceedings initiated by the Petitioner 
regarding Certification of Mutation Entry under the provisions of the MLR 

(b)
Code 1966 which were decided against the Petitioner.
The   land   was   thereafter   proposed   to   be   acquired   for 
Respondent   No.1   and  the   notification   under   Section   4  of   the   L.A.  Act, 
1894   is   issued   on   10th  November,   2008.   On   13th  November,   2008,   the 
Petitioner has filed RCS No.880 of 2008 before the learned Civil Judge, 
Junior   Division,   Solapur   for   partition   and   separate   possession   against 
Respondent Nos.5 to 9 and the same is pending.   On 18th  August, 2010, 

the Petitioner issued notice to the Divisional Commissioner, Collector and 
the SLAO No.2 Solapur to claim a share in the compensation and objected 
to distribute  compensation  to Respondent Nos.5 to 9.   On 3 rd  October, 
2010, the Petitioner submitted another application to SLAO, Solapur who 
exercised the power of Collector under the Act and demanded 50% of the 
compensation.  The SLAO/ Collector did not send any notice of award to 
the   Petitioner   and   the   award   under   Section   11   was   declared   on   29 th 
January, 2011.   No compensation was awarded to the Petitioner and the 
entire compensation was awarded to Respondent Nos.5 to 9.  In fact, it is 
the   consent   award   and   the   Respondent   Nos.5   to   9   did   not   raise   any 
objection regarding the compensation or about the area of land.  
(c)
Thereafter, on 11th April, 2011, the Petitioner filed Application 
before   the   Collector,  seeking   reference   under   Section   30   of   the   Act   by 
impugned   order   dated   3rd  May,   2011,   the   said   application   has   been 

rejected, giving rise to the present Writ Petition.

Advocate Thokade submitted that the Collector had no right 
to decide the interse dispute relating to the title and merely because the 
name of the Petitioner is not entered in the revenue records, he could not 
have   declined   to   make   the   reference   under   Section   30.     Mr.   Thokade 
relied upon the following Judgments:­
Dr. G. H. Grant v/s. The State of Bihara 
(ii) Sharda Devi v/s. State of Bihar and Anotherb
(iii) Arulmighu   Lakshminarasimhaswamy   v/s.   Union   of   India   and 

(i) 
Othersc
Sri Prasad Rao Mikkilineni and Others v/s. State of A. P
. and Othersd
(iv)

On the other hand, Mr. Deshmukh submitted that the power 
under Section 30 is a discretionary power.  Mr. Deshmukh submitted that 
the name of the Petitioner was not appearing in the revenue record and, 
hence, the Petitioner was not a person interstated in the compensation 
under the said Act. He, therefore, submitted that since the Petitioner was 
not   participating   in   the   proceedings   under   Section   11,   there   was   no 
obligation to make a reference under Section 18 or 30. Mr. Deshmukh 
relied upon the following two Judgments:­
(i)
a
b
c
d
e
Mahendra Prasad and etc. v/s. State of Bihar and others e 
AIR 1966 SC-237
(2003) 3 SCC-128
(1996) 6 SCC-408
(2000) 9 SCC-371
AIR 2004 Patna 26

Govind   Narayan   Lotlikar   v/s.   Savitibai   Raghuvira   Lotlikar   and 
(ii)

I have carefully considered the rival submissions.   The fact 
6
that the Petitioner is the daughter of original owner­ Govind, is not in 
dispute.   Whether the Petitioner is entitled to get any share in the land 
and whether she is entitled to get 50% share as claimed by her is the 
matter which will have to be decided by the Civil Court on the basis of the 

evidence to be led by the parties and by applying provisions of the Hindu 
Succession Act, 1956.   The question is whether in the facts of this case, 
the Collector could have decline to make reference though the objection 
for disbursing compensation only in favour of Respondent Nos.5 to 9 was 
raised well in advance even prior to making of award.
7
After examining the scheme of the entire Act, the Judgment 
of the Supreme Court in the case of Dr. G. H. Grant (supra) lays down the 
following   propositions   in   paragraphs   18   and   19   of   the   said   Judgment 
which read thus:­

“Para­18:­ The scheme of the Land Acquisition Act is that all  
disputes about the quantum of compensation must be decided by  
resort to the procedure prescribed by the Act; it is also intended  
that disputes about the rights of owners to compensation being  
ancillary to the principal dispute should be decided by the Court  
to   which   power   is   entrusted.   Jurisdiction  of   the   Court   in   this 
behalf is not restricted to cases of apportionment, but extends to  
adjudication  of disputes as to the persons who are entitled' to  
receive   compensation,   and   there   is   nothing   in   S.   30   which  
1986 Mh. L. J.-844

excludes a reference to the Court of a dispute raised by a person  
on whom the title of  the owner of  land  has, since the award,  
devolved.”

Para­19:­ It was strongly pressed that under S.. 31 of the Land  
Acquisition   Act   the   Collector   is   bound   to   tender   payment   of  
compensation   awarded   by   him   to   the   persons   entitled'   thereto  
according   to   the   award   and   that   implied   that   a   right   in   the  
amount   of   compensation   arises   to   the   person   to   whom  
compensation   is   directed   to   be   paid   under   the   award,   and  
therefore the only persons who can raise a dispute under S. 30  
are those whose names are set out in the award. This contention  
stands refuted by the plain terms of S. 30. The Collector is not  
authorised to decide finally the conflicting rights of the persons 
interested   in   the   amount   of   compensation:   he   is   primarily  
concerned with the acquisition of the land. In determining the  
amount of compensation which may be offered, he has, it is true,  
to apportion the amount of compensation between the persons  
known or believed to be interested in the land, of whom, or of  
whose   claims,   he   has   information,   whether   or   not   they   have  
appeared before him. But the scheme of apportionment by the  
Collector   does   not   finally   determine   the   rights   of   the   persons  
interested   in   the   amount   of   compensation:   the   award   is   only  
conclusive between the Collector and the persons interested and  
not among the persons interested. The Collector has no power to  
finally   adjudicate   upon  the title  to  compensation,  that  dispute  
has to be decided either in a reference under S. 18 or under S. 30  
or in a separate suit. Payment of compensation therefore under S.  
31 to  the person  declared  by  the award  to  be entitled  thereto  
discharges the State of its liability to pay compensation (subject  
to any modification by the Court), leaving it open to the claimant  
to compensation to agitate his right in a reference under S. 30 or  
by a separate suit.”
8
In the subsequent Judgment of the Supreme Court in the case 
of Sharda Devi (supra) , after the complete analysis of the provisions of 
Sections   18   and   30   of   the   Act,   three   differences   in   the   provisions     of 
Sections  18   and  30   were   noted  by   the   Court.  The  Supreme  Court   has 

observed thus in paragraphs 25 and 26 as under:­
“Para­25:­ Keeping   in   view   the   principles   laid   down   by   this  
Court in Dr. G.H. Grant's case   (supra) and analyzing in­depth  
the provisions of the Act the difference between reference under  
Section 18 and the one under Section 30 can be summarized and  
set out as under. 
By reference to nature of power

Under Section 18 of the Act the Collector does not have power to  
withhold   the   reference.     Once   a   written   application   has   been 
made   satisfying   the   requirements   of   Section   18,   the   Collector  
shall make a reference. The Collector has no discretion in the  
matter; whether the dispute has any merit or not is to be left for  
the determination of the Court. Under Section 30 the Collector  
may refer such dispute to the decision of the Court. The Collector  
has discretion in the matter. Looking to the nature of the dispute  
raised,   the   person   who   is   raising   the   dispute,   the   delay   in  
inviting   the   attention   of   the   Court,   and   so   on   are   such  
illustrative factors which may enter into the consideration by the  
Collector while exercising the discretion. If the Collector makes 
the   reference   it   may   be   decided   by   the   Court   subject   to   its  
forming an opinion that the dispute was capable of reference and  
determination under Section 30 of the Act.  In case the Collector  
refuses   to   make   a   reference   under   Section   30   of   the   Act,   the  
person   adversely   affected   by   withholding   of   the   reference   or  
refusal to make the reference shall be at liberty to pursue such  
other remedy as may be available to him under the law such as  
filing a writ petition or a civil suit. 
Para­26:­ Section 30 is not confined in its operation only to  
'persons interested'.  It   would,   therefore,   be   available   for   being  
invoked by the 'persons interested' if they were neither present nor  
represented in proceedings before the Collector, nor were served  
with notice u/s 12(2) of the Act or when they claim on the basis 
of  a title  coming   into  existence post award.   The definition of  
'person interested' speaks of  'an interest in compensation to be  
made'.  An interest coming into existence post award gives rise to  
a   claim   in   compensation   which   has   already   been   determined.  
Such a person can also have recourse to Section 30. In any case,  
the  dispute  for   which  Section   30  can  be  invoked  shall   remain  
confined   only   (i)   as   to   the   apportionment   of   the   amount   of  

compensation or  any  part thereof, or  (ii) as to the persons to  
whom the amount of compensation (already determined) or any  
part thereof is payable.  The State claiming on the basis of a pre­
existing   right   would   not   be   a   'person   interested',   as   already  
pointed out hereinabove and on account of its right being pre­
existing, the State, in such a case, would not be entitled to invoke  
either   Section   18   or   Section   30   seeking   determination   of   its  
alleged pre­existing right.  A right accrued or devolved post award 
may be determined in a reference u/s 30 depending on Collector's  
discretion to show indulgence, without any bar as to limitation.  
Alternatively, such a right may be left open by the Collector to be  
adjudicated   upon   in   any   independent   legal   proceedings.     This  
view is just, sound and logical as a title post award could not  
have been canvassed upto the date of the award and should also  
not   be   left   without   remedy   by   denying   access   to   Section   30.  
Viewed from this angle, Section 18 and 30 would not overlap and  
would have fields to operate independent of each other.
Thereafter, the Supreme Court has held that Section 30 is not 
confined   in   its   operation   only   to   “persons   interested”   and,   it   would, 
therefore, be applicable for being invoked by person interested, if they 
were   neither   present   or   represented   in   the   proceedings   before   the 
Collector nor were served with the notice under Section 12 (2) of the Act 
or when they claimed on the basis of the title coming in to existence post 
award.   We are not concerned with a claim coming into existence post 
award.  
10
What is clear from the Judgment of the Supreme Court in the 
case of Sharda Devi (supra) is that the discretion which is conferred on 
the   Collector   under   Section   30   is   not   uncontrolled   discretion.   The 
Collector has to consider the nature of the dispute raised, the person who 

is   raising   the   dispute,   the   delay   if   any   in   inviting   the   attention   of   the 
Collector to the dispute etc.   In this case, the relationship between the 
Petitioner and Respondent Nos.5 to 9 was not disputed.   The  fact will 
indicate that even prior to making of the award, on two occasions, the 
attention of the Collector was invited to the fact that the Petitioner is the 
daughter of the original owner Govind Chormule and was claiming to be 
entitled to 50% of the compensation.  In such a situation, in the present 

case, it cannot be held that the discretion has been properly  exercised by 
11
the Collector.  
In the present case, the Judgment of the Patna High Court is 
relied upon by Respondent Nos.5 to 9. It is  true that the facts are similar. 
Even   in   the   present   case,   the   Petitioner   had   filed   an   application   for 
temporary injunction in the suit.   What is interesting to note is that the 
Respondent Nos.5 to 9 had opposed the application by contending that 
the Petitioner has a remedy of making an application for reference under 
Section 30 of the Act.  Accepting this defence, the Civil Court rejected the 
application   for   injunction.     Thereafter,   when   the   Petitioner   made   an 
application for reference, that has been rejected and the Respondent Nos.
5 to 9 are now supporting the order of rejection of reference.  In view of 
this situation, the Judgment of the Patna High Court relied upon by the 
Advocate for Respondent Nos.5 to 9 is clearly distinguishable. Similarly, 

the Judgment of this Court in the case of Govind Lotlikar (supra) will not 
also  be  of   much  use.  That  was   the   case  where   the  issue   involved   was 
about the applicability of Order I Rule 10 of the Code of Civil Procedure, 
1908 in a pending reference under Section 30, that is the case here.
12
In the case of Sharda Devi (supra), the Supreme Court has 
held that in case the Collector refuses to make reference under Section 30, 
the   person   adversely   affected   by   withholding   of   the   reference   has   a 

remedy of filing Writ Petition or a Civil Suit.   In this case, the Civil Suit 
filed by the Petitioner for partition is also pending but that does not mean 
that the remedy of Writ Petition for challenging this order of Collector is 
not available. In fact, in view of the two subsequent Judgments of the 
Supreme Court, to which reference will be made by me, the Petitioner has 
chosen the proper remedy. 

In   the   case   of   Arulmighu   (supra),   the   Supreme   Court   has 
observed thus in paragraphs 2 and 3 as under:­
“Para­2:­   On   the   admitted   facts,   the   approach   of   both   the  
learned   single   Judge     and   of   the   Division   Bench   in     the   writ  
petition and the W.A. No.   1358/95 indicated in the   impugned  
order   made   on   January   30,   1996   cannot   be   sustained.  
Notification   under   Section     4(1)   of   the   Land     Acquisition   Act.  
1894   was   published   on   June   4,   1987   acquiring   the   land   in  
question for the public   purpose. After compliance of   the notice  
under Sections 9 and 10 of the Act and enquiring the award came  
to be passed by the land Acquisition Office on February 7,1990.  
The possession thereafter  was taken on October 30, 1990. The  
question,   therefore,     would   be   what   would     be   the   proper  
procedure to  be adopted, in case of dispute as to the title of the  

land acquired  under the  Act ? The learned  single Judge declared  
title of the petitioner in the writ petition and the Division Bench  
directed civil Court to decide the title. Both   views are obviously  
erroneous in law. The Land Acquisition Officer has to determine 
the extent of the land, the persons  entitled to  compensation and  
the compensation to be  determined under Section 23  (1) of  the 
Act.  If  he finds that  there is  any dispute  as to  person entitled  
to  receive  the    compensation,  necessarily  he  has  to  deposit  the  
amount under   Section 31   of the Act into the Court to which  
reference would lie. On such a dispute having arisen, he has to  
make   a   reference   to   the   Court   under   Section   30   of   the   Act   to  
decide   the   dispute   between   the   Competing   persons   who   set   up  
rival  title   to the   compensation.  Under   those  circumstances,  
the  only  legal  course  open is  that  a direction be  issued to the  
Land Acquisition Officer to make a reference under Section 30 to  
decide the inter se title to receive the  compensation either  by the  
appellant or by the 4th respondent, as the case may be and the  
reference Court would decide the matter in accordance with law.
Para­3:­     The appeal is accordingly allowed. The orders passed  
by the learned   single Judge   and the   Division Bench stand set  
aside. The Land Acquisition Officer is directed to make a reference  
to     the   Court     under   Section   30.   We   are   informed   that   the  
compensation   has   already   been   deposited   in   interest   earning  
security   Therefore, if the parties so require, the reference Court  
may be approached in this   behalf or the order of the learned  
single Judge may conclude in force till the reference  is decided in  
accordance with law. The latter would be the appropriate course.  
No costs. 
14
In the subsequent Judgment of Supreme Court in the case of 
Sri   Prasada   Rao   (supra),   the   Supreme   Court   has   observed   thus   in 
paragraph 4 which reads thus:­
“Para­4:­ We find that there is a dispute about the title as also  
regarding   computation   of   appropriate   compensation   for  
acquiring the land in question.  Hence, this is a fit case where the 
High   Court   should   have  allowed   the  writ   petition   and   should  
have   directed   the   Land   Acquisition   Officer   to   make   reference  
under Section 18 read with Section 30 of the Land Acquisition  

Act, 1894. Only on this short ground, therefore, this appeal is  
allowed.   The impugned order passed by the High Court is set  
aside   and   the   Land   Acquisition   Officer   is   directed   to   make   a  
reference, under  Section 18 read  with  Section 30  of  the Land  
Acquisition Act, to the appropriate court within eight weeks from  
the receipt of a copy of this order at his end.”
It is thus clear that the Supreme Court has clearly held that 
the proper procedure which is to be adopted by the Collector in case of 
dispute is that such a dispute is not to be decided by the Land Acquisition 

Officer   under   the   Act   and   the   procedure   is   that   the   Collector   has   to 
necessarily deposit the amount of compensation under Section 31 of the 
Act into the Court and he has to make a reference to the Court under 
Section   30   of   the   Act   to   decide   the   dispute   between   the   contesting 
Claimants.   In   my   opinion,   the   ratio   of   the   Judgment   in   the   case   of 
Arulmighu   (supra),   is   squarely   applicable   to   the   facts   of   this   case   and 
completely covers the controversy.   It is thus clear that the action of the 
Collector   to   refuse   to   make   the   reference   under   Section   30   is   clearly 
unsustainable and contrary to the law laid down by the Supreme Court. 
The   Writ   Petition   will   have   to   be   allowed   with   a   direction   that   the 
Respondent Nos.5 to 9 shall deposit 50% of the amount of compensation 
with the Collector, who shall deposit the same in the Court which shall 
remain invested.  This direction will apply only in respect of the disputed 
amount of compensation i.e. 50% of the total amount of compensation 
and will not apply in respect of the remaining 50% of the amount. Once 

the   reference   is   made   by   the   Collector,   the   reference   will   have   to   be 
decided by the Civil Court along with the Civil Suit filed by the Petitioner 
passed.

Hence, I pass the following order:­
(i)
so as to ensuring   that the contradictory   Judgments and Orders are not 
The impugned Judgment and Order dated 3rd May, 2011 
passed   by   the   Deputy   Collector   and   SLAO­1,   Solapur   in 
ig
Application dated 11th April, 2011 filed by the Petitioner under 
Section 30 of the Land Acquisition Act, 1849 being Exhibit D to 
this   Writ   Petition   thereby   declining   to   make   reference   under 
Section 30 of the Act, is quashed and set aside.
(ii)
The Deputy Collector and SLAO­1, Solapur is directed to 
make   the   reference   of   the   dispute   regarding   50%   of   the 
compensation between the Petitioner and Respondent Nos.5 to 
9 under Section 30 of the said Act of 1894.  Reference shall be 
made on or before 30th April, 2012.
(iii)
The said reference shall be heard and decided with RCS 
No.880 of 2008 which is already filed by the Petitioner and is 
pending in the Civil Court at Solapur.
(iv)
The Respondent Nos.5 to 9 shall deposit 50% of amount 
of   compensation   within   one   month   from   today   with   the 

Collector who shall forthwith deposit the same in the Court to 
which   the   reference   is   made.     The   Court   shall   immediately 
invest the said amount in a Fixed Deposit in the Nationalized 
Bank till the decision  of the reference under Section 30 and the 
suit.  It is clarified that rights and contentions of the Petitioner 
and   Respondent   Nos.5   to   9   regarding   entitlement   of   the 
Petitioner to get the share in the compensation are kept open to 
The suit and the reference shall be decided expeditiously 
(v)

be decided by the Civil/ Reference Court.
and in any case on or before 31st March, 2013.
Rule made absolute in the aforesaid terms with no order 
(vi)
as to costs.
(G.S.GODBOLE,J.)


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