KAJORI LAL AGARWAL Vs. UNION OF INDIA AND OTHERS

PETITIONER:
KAJORI LAL AGARWAL

Vs.

RESPONDENT:
UNION OF INDIA AND OTHERS

DATE OF JUDGMENT:
17/12/1965

BENCH:
GAJENDRAGADKAR, P.B. (CJ)
BENCH:
GAJENDRAGADKAR, P.B. (CJ)
WANCHOO, K.N.
HIDAYATULLAH, M.
RAMASWAMI, V.
SATYANARAYANARAJU, P.

CITATION:
1966 AIR 1538          1966 SCR  (3) 141

ACT:
West  Bengal  Land (Requisition and Acquisition) Act  (2  of
1948),    8(2)-Application  for reference to  Court-Period  of
limitation whether prescribed.

HEADNOTE:
The appellant’s lands were acquired under the provisions  of
the  West  Bengal Land (Requisition  and  ACquisition)    Act,
1948.  The  Land Acquisition Officer made an  award  on     5th
February  1951.      The appellant     accepted  the    compensation
amount    on  21st  March     1951, under  protest,    and  on     2nd
February  1953, filed an application under s. 8 of  the     Act
that a reference should be made to the Court regarding    his,
claim  for  a  larger  amount  of  compensation.   The    Land
Acquisition  Officer rejected the application on the  ground
that  it  was  barred  by time.     The  High  Court,  ‘in     its
revisional  jurisdiction,  remanded  the case  to  the    Land
Acquisition Officer for disposal according to law, with     the
observation, that, though no limitation-had been  prescribed
for making an application for reference, such an application
should    nevertheless  be made Within a reasonable  time     and
Chat whether the appellant moved within a reasonable time or
not should be determined.  The Land Acquisition Officer held
that  the appellant did not move Within reasonable time     and
rejected  the  application, and the High  Court     refused  to
interfere with- the order’
In appeal to this Court.
HELD:      Section 8(2) of the West Bengal Act, read with  s.
18(2)  of  the    Land  Acquisition  Act,     1894,    specifically
prescribes   the  period  of  limitation  for  making    such
applications, and having regard to these provisions, the  by
time  It  was  therefore  not  necessary  to  consider     the
appellant’s  plea  that the application was  made  within  a
reasonable time.[148 B-C]
The  fact  that s. 8(1) of the West Bengal  Act     imposes  an
obligation on  the Collector to refer the  matter  to  the
decision of the Court does not preclude the application of a
provision for limitation prescribed in regard to the  making
of  an application for reference.  Section 8(2) of the    West
Bengal    Act’  makes  the  provisions  of  the  Central     Act
applicable mutatis mutandis in respect of any reference made
to  the court under sub-s. (1).     In the context, the  clause
“in  respect  of any reference made to the Court”  does     not
mean that the provisions of the Central Act    have to apply
only  after a reference is made, but it includes  all  cases
where  reference is intended, or proposed, or asked,  to  be
made,  and  that  means that if a party     wants    to  make  an
application  for  reference,  he is  no     doubt    entitled  to
require     the  Collector to make such a    reference,  but     his
application in that behalf must be made within the period of
limitation  prescribed    by  s. 18(2)  of  the  Central    Act.
Further,  the amended s. 8(2) of the West Bengal Act,  which
makes s. 18(2) of the Central Act expressly applicable, also
uses  the same clause “in respect of any reference  made  to
the Court and that also lends support to this view. [144  G;
146 F; 147 G-H]
142
Kajori    Lal  Agarwal v. The Union of India, 59    C.W.N.    936,
overruled.

JUDGMENT:
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 666 of 1963.
Appeal    by special leave from the judgment and order,  dated
July  6, 1959 of the Calcutta High Court in Civil  Rule     No.
3886 of 1956.
Anoop Singh, for the appellant.
D.   N. Mukherjee and R. N. Sachthey, for respondent No. 1.
P.   K.     Chatterjee and P. K. Bose, for respondents  Nos.  2
and 3.
The Judgment of the Court was delivered by
Gajendragadkar,     C.J. The appellant Kajori Lal    Agarwal     was
the  owner-in-khas of 37.85 acres of land in Mouza  Shibnath
Das  J. L. No. 110 and Mouza Kholai Singh J. L. No.  112  in
Siliguri Town in the district of Darjeeling.  The said lands
were  acquired by the Union of India, and the State of    West
Bengal,     respondents 1 & 2 respectively, under the  relevant
provisions   of     the  West  Bengal  Land  (Requisition     and
Acquisition)  Act, 1948 (No’ 2 of 1948) (hereinafter  called
‘the Act) for the Assam Rail Link Project.  Respondent No. 3
is  the     Land  Acquisition Officer,  Darjeeling.   In  those
proceedings,  the appellant claimed compensation at  a    flat
rate  of Rs. 100 per cottah amounting to Rs.  2,27,100.      He
also  put  in  a  claim for Rs.     8,000    on  account  of     the
severance and other grounds.  Respondent No. 3 made an award
under  s. 7 of the Act on the 5th February,  1951  directing
the  payment of Rs. 22,074 to the appellant in lieu  of     his
lands at the rate of Rs. 600 per acre.    After the award     was
pronounced,  a notice was served on the appellant  under  s.
12(2)  of  the Land Acquisition Act, 1894 (No.    1  of  1894)
(hereinafter called ‘the Central Act’).     On the 21st  March,
1951, the appellant accepted the said amount as compensation
money under protest.
Thereafter,  the  appellant  filed  an    application   before
respondent No. 3 on the 2nd February, 1953 and claimed    that
a reference should be made by him to the Court for  decision
of his claim for a larger amount of compensation under s.  8
of  the Act.  The appellant alleged in his application    that
having    regard    to  the     market value of  the  land  at     the
relevant time, the amount awarded to him by respondent No. 3
was  grossly  inadequate.   Respondent No.  3  rejected     the
appellant’s application for reference on the ground that  it
was barred by time.
143
The  appellant    challenged  the validity of  this  order  by
moving     the   Calcutta     High  Court   in   its      revisional
jurisdiction (Civil Revision Case No. 676 of 1954).  On     the
16th June, 1955, a Division Bench of the Calcutta High Court
allowed the appellant’s revisional application and sent     the
case  to  respondent  No.  3  with  a  direction  that     the
appellant’s  application for reference should be dealt    with
in accordance with law.     In remitting the case to respondent
No. 3, the High Court observed that though, in its  opinion,
no limitation had been prescribed for making an     application
for reference, such an application must nevertheless be made
within a reasonable time.  On that view, the High Court left
it to respondent No. 3 to consider whether the appellant had
moved  for reference within a reasonable time  (vide  Kajori
Lal Agarwal v. The Union of India & Ors.) (1).
After  the  appellant’s     application was  thus    remanded  to
respondent No. 3, he filed an affidavit on the 27th  August,
1956 and explained in detail the reasons for the delay    made
by him in filing his application for reference.     On the 10th
September,  1956 respondent No. 3 rejected  the     appellant’s
application on the ground that he had neglected to move     for
reference within a reasonable time.
This  order was challenged by the appellant again by  moving
the  Calcutta High Court under Art. 227 of the    Constitution
read with s. 115 of the Code of Civil Procedure (Civil    Rule
No.  3886  of 1956).  On the 6th July, 1959, this  case     was
heard  by  a Division Bench of the said High Court  and     the
application  made  by  the appellant was  dismissed  on     the
ground    that the High Court saw no reason to interfere    with
the  order  passed by respondent No. 3. It is  against    this
order that the appellant has come to, this Court by  special
leave.
On  behalf of the appellant, Mr. Anoop Singh  contends    that
the High Court was in error in not reversing the decision of
respondent  No.     3; and in support of his argument,  he     has
relied    on  the     fact that on the 12th    January,  1953,     the
Calcutta  High Court had ruled in the case of Birendra    Nath
Ray Sarkar & Another v. Union of India & Another (2)  (Civil
Rule  No. 2940 of 1951) that there was no prescribed  period
of limitation for an application for reference under s. 8 of
the Act, and it was only after the appellant knew about this
decision that he was advised to make his present application
for reference.    Mr. Anoop Singh argues that this fact should
have been taken into account by the Calcutta High Court
(1) 59 C.W.N.     1936.
(2) 57 C.W.N. 283.
144
and  on     that  ground,    the decision  of  respondent  No.  3
rejecting  the    appellant’s  application  should  have    been
reversed.
Before we deal with this argument, however, it is  necessary
to  consider the basic question as to whether  the  Calcutta
High Court is right in holding that no period of  limitation
is  prescribed by S. 8 of the Act for making an     application
for reference.    If we hold that S. 8 prescribes a period  of
limitation,  then the question as to whether  the  appellant
moved  respondent No. 3 within a reasonable time,  will     not
fall  to be considered; and so, we must first consider    this
question.
Section 8 of the Act reads thus
“Reference to Court.
8.    (1) The Collector shall in every case–
(a)   where  any person aggrieved by an  award
made under sub-section (2) of section 7  makes
an  application  requiring the  matter  to  be
referred to the Court;
or
(b)   where  there  is any  disagreement    with
regard to the compensation payable under    sub-
section (3) of section 7 between the Collector
and the person to whom possession of any    land
is delivered under section 6 refer the  matter
to the decision of the Court.
(2)   The     provisions of the Land     Acquisition
Act,  1894  (No.    1 of  1894),  shall  mutatis
mutandis    apply  in respect of  any  reference
made to the Court under sub-section (1)”.
We  have already noticed that when the appellant  moved     the
Calcutta  High    Court on an earlier occasion,  the  Calcutta
High Court had ruled that no limitation had been  prescribed
by  s.    8,  though  it had added  that    an  application     had
nevertheless to be made within a reasonable time.  Mr. Anoop
Singh naturally supports this decision.
It is plain that S. 8(2) makes the provisions of the Central
Act applicable mutatis mutandis in respect of any  reference
made to the Court under sub-s. (1).  The Calcutta High Court
has  held  that the effect of the provisions  prescribed  by
this  sub-section is to make the relevant provisions of     the
Central     Act  applicable to proceedings     subsequent  to     the
making    of the reference.  This view proceeds on  the  basis
that  when  sub-s. (2) refers to any reference made  to     the
Court, it emphasises the fact that up to
145
the  making of the reference the provisions of    the  Central
Act  have  no application.  In other words,  this  provision
does  not permit the application of the relevant  provisions
of the Central Act in relation to all proceedings which take
place  prior  to  the  making  of  the    reference.   When  a
reference has been made under s. 8 ( 1 ), a stage is reached
for  the application of the provisions of the  Central    Act.
This  provision     does  not  allow  the    application  of     the
relevant provisions of the Central Act at any stage prior to
the  making of the reference.  One cannot  extend  backwards
the  said  provisions.     That is how  the  matter  has    been
succinctly put by the High Court in holding that the  period
of  limitation prescribed by s. 1 8 (2) of the    Central     Act
cannot    apply to an application for reference made under  s.
8(1) of the Act.
Section 18 of the Central Act reads thus
“     18. (1) Any person interested who  has     not
accepted the award may, by written application
to  the Collector, require that the matter  be
referred      by   the   Collector      for     the
determination   of  the  Court,  whether     his
objection     be to the measurement of the  land,
the amount of the compensation, the persons to
whom  it is payable, or the  apportionment  of
the    compensation    among    the    persons
interested..
(2)   The      a  application  shall     state     the
grounds  on  which objection to the  award  is
taken
(a)   if    the person making it was present  or
represented  before the Collector at the    time
when he made his award, within six weeks    from
the date of the Collector’s award;
(b)   in other cases, within six weeks of     the
receipt of the notice from the Collector under
section  12,  subsection (2),  or     within     six
months from the date of the Collector’s award,
whichever period shall first expire’.
There is no doubt that if the provisions of s. 18 (2) can be
said to apply to an application made for reference under  s.
8 of the Act, the periods of limitation prescribed by sub-s.
(2) of s. 1 8 of the Central Act would be attracted; and  if
they  apply, the appellant’s application originally made  to
respondent No. 3 for reference is barred by time.
In  our opinion, the High Court was in error in reading     the
clause “in respect of any reference made to the Court” in s.
8  (2) of the Act as referring to cases where reference     has
already been
146
made.    In  the context, what the clause means is  that     the
provisions  of the Central Act shall mutatis mutandis  apply
in  respect. of any reference intended, proposed, or  asked,
to  be    made, and not in respect of  any  reference  already
made.    Having regard to the scheme of s. 8,  considered  in
the light of the other provisions of the Act, it seems to us
clear  that  the  object of the Legislature  in     making     the
relevant  provisions  of  the  Central    Act  applicable      to
references was to take in all the relevant provisions of the
Central Act which had reference to the making of  reference;
and naturally, these provisions would begin with s.18 of the
Central     Act which is the first section in Part III  of     the
Central     Act dealing with reference to Court  and  procedure
thereon.  It would,. we think, be unreasonable to hold    that
until a reference in made, the said provisions do not  apply
and  it     is only after the reference is made that  the    said
provisions begin to operate.
It is true that S. 8(1) of the Act uses the mandatory  words
“the Collector shall refer the matter to the decision of the
Court”; but that does not mean that it necessarily  excludes
the application of the provision as to limitation.   Section
18(1)  of  the    Central     Act,  though  somewhat     differently
worded,     has in law the same effect.  It provides  that     any
person    interested  who has not accepted the award  may,  by
written     application  to  the Collector,  require  that     the
matter be referred by the.  Collector for the  determination
of  the     Court.      This    provision  also,  in  substance,  is
mandatory.   If an application is made by a person  entitled
to make such application, the Collector has no option in the
matter;     he  has  to refer it to the Court;  but  even    this
provision  is subject to the limitation prescribed  by    sub-
section     (2).    The position with regard  to  the  mandatory
provision  contained  in  s.  8(1) of  the  Act     is  exactly
similar.   Therefore,  the fact that s. 8(1) uses  the    word
“shall” and imposes an obligation on the Collector to  refer
the  matter to the decision of the Court, does not  preclude
the application of a provision for limitation prescribed  in
regard to the making of an application for reference.
On  principle,     it seems extremely unlikely  that  the     Act
which deals with acquisition and requisition of     properties,
could  have  intended to leave it to the sweet-will  of     the
parties     to  make an application for reference at  any    time
they  like.  The High Court no doubt realised the  anomalies
which would result in adopting such a construction; and     so,
while it upheld the appellant’s contention that there was no
limitation  prescribed for the making of an application     for
reference under s. 8 of the Act, it added the corollary that
even though no limitation is prescribed, the applica-
147
tion  must  nevertheless be made within a  reasonable  time.
In, our opinion, it is unnecessary to invoke such a  general
consideration,    because s. 8(2) of the Act, in terms,  makes
s.  18(2)  of the Central Act applicable, and  there  is  no
occasion  to consider whether a particular  application     has
been made within a reasonable time or not.
It  is somewhat remarkable that if the view accepted by     the
Calcutta High Court about the construction of s. 8(2) of the
Act is correct, even the amendment subsequently made by     the
Bengal    Legislature would be ineffective.  It  appears    that
presumably as a result of the decision of the Calcutta    High
Court,    s. 8 (2) of the Act has been amended by Act VIII  of
1954.  The amended provision reads. thus :-
“8.  (2) The provisions of sub-section (2)  of
section  18  and of sections 19 to 22  and  of
sections 25 to 28 of the Land Acquisition Act,
1894,  and  the  principles set  out  in    sub-
section  (1) and in clause (a) of     sub-section
(2) of section 7 of this Act, shall, so far as
they  may be applicable, apply in     respect  of
any  reference  made to the Court     under    sub-
section (1)”.
It  would be noticed that this amended provision  has  taken
the,  precaution of expressly referring to section 18(2)  of
the Central Act along with other sections as sections  which
are  applicable to the proceedings under the  provisions  of
the  Act.   Even so, the clause that these  provisions    will
apply  “in respect of any reference made to the Court  under
sub-section (1)” still occurs in the amended provision;     and
if  it    is held that the words “any reference  made  to     the
Court” speak about the proceedings that follow the making of
the reference, then the same difficulty may arise as to     the
application of s. 18(2) of the Central Act to an application
made  for reference under s. 8(1) of the Act.  This  amended
provision  lends  support to the view that  the     clause     “in
respect     of any reference made to the Court” does  not    mean
that the provisions have to apply after such a reference  is
made,  but  that it includes all cases    where  reference  is
intended, or proposed, or asked, to be made; and that  means
that if a party wants to make an application for  reference,
he  is    no doubt entitled to require the Collector  to    make
such a reference, but his application in that behalf must be
made  within  the limitation prescribed by s. 18(2)  of     the
Central     Act.  In our opinion, in regard to the     application
of  s. 18(2) of the Central Act in respect  of    applications
made  for reference under s. 8(1) of the Act,  no  amendment
was really
148
necessary;  but,  of  course,  the  Legislature     thought  it
necessary  to make the amendment in view of the decision  of
the  Calcutta  High  Court on the application  made  by     the
appellant on the earlier occasion to that High Court.
Since  we hold that the application originally made  by     the
appellant  to respondent No. 3 under s. 8(1) of the  Act  on
the 2nd February, 1953 for reference, was barred by time, it
is not necessary to consider the appellant’s plea whether it
was made within a reasonable time.  Section 8(2) of the     Act
read   with  S.     18(2)    of  the     Central  Act    specifically
prescribes  limitation for the making of such  applications;
and  there  is    no  doubt that having  regard  to  the    said
provisions, the appellant’s application is barred by time.
The result is, the appeal fails, and the order passed by the
High Court is confirmed, though on different grounds.  There
would be no order as to costs.
Appeal dismissed.
149

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