Gujarat High Court
Kunvar Harijan Samudhayik Sahakari ... vs State Of Gujarat Thro Secretary & 7 on 16 January, 2014
Author: Ravi R.Tripathi
Bench: Ravi R.Tripathi, Mohinder Pal
C/SCA/142/2012 JUDGMENT
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SPECIAL CIVIL APPLICATION NO. 142 of 2012
With
CIVIL APPLICATION NO. 8422 of 2012
In
SPECIAL CIVIL APPLICATION NO. 142 of 2012
With
CIVIL APPLICATION NO. 986 of 2013
In
CIVIL APPLICATION NO. 142 of 2012
With
CIVIL APPLICATION NO. 10830 of 2013
In
SPECIAL CIVIL APPLICATION NO. 142 of 2012
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR.JUSTICE RAVI R.TRIPATHI
and
HONOURABLE MR.JUSTICE MOHINDER PAL
================================================================
1 Whether Reporters of Local Papers may be allowed to see
the judgment ?
2 To be referred to the Reporter or not ?
3 Whether their Lordships wish to see the fair copy of the
Page 1 of 30
C/SCA/142/2012 JUDGMENT
judgment ?
4 Whether this case involves a substantial question of law as
to the interpretation of the Constitution of India, 1950 or any
order made thereunder ?
5 Whether it is to be circulated to the civil judge ?
================================================================
KUNVAR HARIJAN SAMUDHAYIK SAHAKARI KHETI MANDALI
LIMITED....Petitioner(s)
Versus
STATE OF GUJARAT THRO SECRETARY & 7....Respondent(s)
================================================================
Appearance:
Mr.M.B. GANDHI, ADVOCATE WITH Mr.CHINMAY M GANDHI, ADVOCATE
for the Petitioner.
MR.RASHESH RINDANI, ASSISTANT GOVERNMENT PLEADER for the
Respondent no.1.
Mr.G P DEVMORARI, ADVOCATE for the Respondent(s) No. 3 - 6
MR DIPAK R DAVE, ADVOCATE for the Respondent(s) No. 7
MR RITURAJ M MEENA, ADVOCATE for the Respondent(s) No. 8
RULE SERVED for the Respondent(s) No. 2
RULE SERVED BY DS for the Respondent(s) No. 8
================================================================
CORAM: HONOURABLE MR.JUSTICE RAVI R.TRIPATHI
and
HONOURABLE MR.JUSTICE MOHINDER PAL
Date : 16/01/2014
ORAL JUDGMENT (PER: HONOURABLE MR.JUSTICE RAVI R.TRIPATHI)
The petitioner, a society is before this Court praying that, "(a) This Hon'ble Court be pleased to issue a writ of mandamus and/or any other appropriate writ, order or direction in the nature of mandamus directing the Page 2 of 30 C/SCA/142/2012 JUDGMENT respondents Nos. 1 & 2 herein to adhere to the agreement (Annexure-D) dated 30.04.2011 and to part with the amount of Rs. 13,16,02,320/- as stated therein forthwith together with interest at the rate of 12% per annum and issue an account payee cheque in the name of the petitioner society.
(b) By appropriate writ, order or direction, this Hon'ble Court be pleased to direct the respondents herein to complete the proceedings u/s 9 and pass further award u/s 11(2) forthwith. (c ) Pending admission, hearing and/or final disposal of this petition, this Hon'ble Court be pleased to direct the respondent No. 2 herein to issue an account payee cheque for an amount of Rs. 13,16,02,320/- together with interest @ 12% from 30.04.2011 till the date of payment.
(d) Costs of this petition be quantified at Rs. 25,000/- and the same be ordered to be paid to the petitioner."
2. It is thereafter, viz. after filing of the petition, GIDC is impleaded as respondent no.8. Respondents no.3 to 6 are added in view of an order dated 04.10.2012 passed in Civil Application No.5395 of 2012 (which was filed by respondent no.3 to 6) to be impleaded as a party- respondent in Special Civil Application. Similarly, respondent no.7 is impleaded pursuant to order dated Page 3 of 30 C/SCA/142/2012 JUDGMENT 04.10.2012 passed in Civil Application No.3069 of 2012-the Civil Application filed by respondent no.7 for being impleaded as a party respondent in the petition.
3. The aforesaid facts of respondents no.3 to 6 on one hand, respondent no.7 on the other and respondent no.8 on yet another become important for the purpose of appreciating the bona fides of the petitioner-society, which approached this Court with the aforesaid prayers. What is important is that it is the case of the society that they entered into an agreement with the GIDC, interestingly, which is not impleaded as a party. What is more strange conduct of the petitioner is that having entered into agreement with the GIDC a petition is filed against respondents no.1 and 2, viz. State of Gujarat and Collector/ Officer on Special Duty, to honour that agreement and not only that the agreement should be honoured but a mandate should be given to pass an award - consent award in terms of that agreement.
4. The petitioner then filed Civil Application No.8422 of 2012, wherein no notice is issued till date and the relevant reliefs sought in the Civil Application are that, "(a) This Hon'ble Court may be pleased to issue directions to the State Government that the In-Charge Special Land Acquisition Officer Mr. Gaurav Prajapati Page 4 of 30 C/SCA/142/2012 JUDGMENT should withdraw the letter Annexure-A.
(b) This Hon'ble Court be pleased to issue directions to the State Government to withdraw the appointment of Mr. Gaurav Prajapati as In-charge Special Land Acquisition Officer in connection with the lands which are referred to in the main petition.
(c) This Hon'ble Court be pleased to issue appropriate directions to the Government to appoint a new Special Land Acquisition Officer to decide and pass the award independently.
(d) Costs of this application be provided for to this applicant."
A copy of letter dated 28th / 29th June 2012 is annexed to this Civil Application and it is prayed that the same should be withdrawn by the State Government or In-charge Special Land Acquisition Officer, Mr.Gaurav Prajapati. Again impleading the officer by name is indicative of the fact that the petitioner is able to get the things done of its choice at the hands of this officer.
5. Thereafter, the petitioner has filed another Civil Application No.986 of 2013 praying that, Page 5 of 30 C/SCA/142/2012 JUDGMENT "(a) This Hon'ble Court may be pleased to issue directions to the state government and OSD to declare an award u/s 11(2) of the Land Acquisition Act, that is consent award and the letter at Annexure-A be stayed and restrained Land Acquisition Officer from declaring the award u/s 11(1).
(b) Costs of this application be quantified and the same be ordered to be paid to the applicant.
(c ) Such other and further relief as this Hon'ble Court may deem just, fit and expedient be granted in favour of the petitioner."
Incidentally, this Civil Application is filed on 21.01.2013.
6. Thereafter, the petitioner has filed another Civil Application being Civil Application No.10830 of 2013 praying that, "(a) This Hon'ble Court be pleased to hold and declare that the award dated 31.01.2013 (Annexure-A) is illegal and void the same be quashed and set aside.
(b) This Hon'ble Court be pleased to issue contempt Page 6 of 30 C/SCA/142/2012 JUDGMENT proceedings against respondent No. 2 Mr. Ghanshyam Chavda and he may be punished to a fullest extent under the Contempt of the Courts Act.
(c) This Hon'ble Court be pleased to direct the District Court, Ahmedabad (Rural) not to proceed with any of the proceedings with regard to the award dated 31.01.2013 (Annexure-A)."
(d) Pending admission, hearing and/or final disposal of this application, this Hon'ble Court may be pleased to stay the execution, operation and implementation of the award dated 31.01.2013 (Annexure-A).
(e) Such other and further relief as this Hon'ble Court may deem just, fit and expedient be granted in favour of the applicant."
7. What is important is that the petitioner- applicant has prayed that, "be pleased to hold and declare that the award dated 31.01.2013 (Annexure-A) is illegal and void and the same be quashed and set aside."
8. What makes this petition interesting is that respondent no.7 herein is the person, who has filed Civil Application for being Page 7 of 30 C/SCA/142/2012 JUDGMENT impleaded as a party and his case is that the land in question was purchased by his forefathers by a registered sale deed in the year 1929, a copy of which is at pages 83 to 86. Interestingly, the learned advocate for the petitioner submitted that the claim of respondent no.7 is to be discarded for the simple reason that he did not come forward to claim the land in question for all these years, viz. about nine decades. But at the same time the learned advocate for the petitioner states that the petitioner's agreement with GIDC, whereby they have agreed that GIDC should pay the petitioner Rs.14,00,00,000/- and odd only for the land in question and that should be respected and the authorities should be directed to pass award under section 11(2) of the Land Acquisition Act and the award already made under section 11(1) of the Act should be quashed and set aside.
9. The interest does not cease here. It continues, because the case of respondents no.3 to 6 is that they entered into an agreement with the society to purchase this land in the year 2006. Now the case of the petitioner is that the agreement is to be discarded, because that was not a registered agreement under the law. The agreement is supposed to be registered one. As against that their agreement which is entered with GIDC (respondent no.8) is to be honoured and it is to be honoured by the State Government and Officer on Special Duty and the society should be paid an Page 8 of 30 C/SCA/142/2012 JUDGMENT amount of Rs.14 crores and odd.
10. The learned advocate for the petitioner relied upon a decision of the Hon'ble the Bombay High Court in the matter of Mohammad Akil Khan Vs. Premraj Jawanmal Surana and another, reported in AIR 1972 Bombay 217. The learned advocate relied upon paras 15, 16 and 24, which read as under:
"15. We have hardly any doubt that it must be assumed in the present case that the vendor and the vendee viz. claimant Nos.1 and 2 were willing to perform their respective part. Before, however, occasion arose to proceed further with the agreement, the State notified the property for acquisition on March 25, 1965. Not only that but after completing all formalities the possession was obtained on October 9, 1965. This determines all the private rights and completes the vesting of the property in the State for a public purpose. We have already pointed out earlier that the Civil Suit which was then pending came to a successful termination on November 3, 1965, whereby the rights to execute the sale-deed was exercisable within four months thereafter upto March 3, 1966. All this became impossible because the private ownership of the land came to be terminated on October 10, 1965. Page 9 of 30
C/SCA/142/2012 JUDGMENT Undoubtedly, therefore, the contract of sale has been frustrated as it became impossible of performance. We have already pointed out that a contract for the sale of immovable property shall take on terms settled between the parties. It does not, of itself, create any interest in or charge on such property. Claimant No.2 had while making this contract of sale also advanced a sum of Rs.10,000/- by way of earnest. When the contract became frustrated due to the acquisition by the State, a situation arose where the mutual rights of the parties must be determined and settled. In our view, to a situation like this the provisions of Section 55 and more particularly sub-section (6) Cl.(b) would be attracted. Claimant No.2 is undoubtedly a buyer and the expression 'buyer' as used in sub-section (6) of Section 55 also includes a person who has agreed to buy. So far as the buyer is concerned, sub-section (6) conceives of both the positions where the ownership is transferred to a buyer and where the ownership is yet to be transferred to him. Sub-clause (a) deals with a situation where the ownership of the property is passed to a buyer. As soon as that happens that buyer is entitled to the benefit of any improvement in, or increase in value of the property, and to the rents and profits thereof. In other words, he is entitled to all the Page 10 of 30 C/SCA/142/2012 JUDGMENT attributes of full ownership of the property. However, where the agreement is yet to culminate into transfer of ownership but where the buyer is willing to perform his part of the contract, his rights are indicated in sub- clause (b) of sub-section (6) of S.55. The relevant sub- clause is as follows;-
"55 (6) (b): Unless he has improperly declined to accept delivery of the property, to a charge on the property, as against the seller and all persons claiming under him, to the extent of the seller's interest in the property, for the amount of any purchase-money properly paid by' the buyer in anticipation of the delivery and for interest on such amount and, when he properly declines to accept the delivery, also for the earnest (if any) and for the costs (if any) awarded to him of a suit to compel specific performance of the contract or to obtain a decree for its rescission".
The clause quoted above, contemplated a case that a buyer shall not decline to accept delivery improperly. If he is willing to accept delivery of the property then he is entitled to charge on the property as against the seller and all persons claiming against him to the extent of seller's interest in the property for the amount of any purchase money properly paid by the buyer in Page 11 of 30 C/SCA/142/2012 JUDGMENT anticipation of the delivery and for interest on such amount. Where, however, there is good ground why the buyer should deliver (decline?) to accept delivery, he is also entitled for the earnest (if any) and for the costs (if any) awarded to him of a suit compel (sic) specific performance of the contract or to obtain a decree for its rescission. This statutory charge is created as soon, as the buyer advances any part of the sale price or earnest to the seller. This charge is against the seller and all persons claiming under him to the extent of the interests of the seller in the property and also for the amount of purchase money properly paid. The property and the interest of the seller therein is in the nature of security for the purchase money properly paid, as also for the earnest amount. In the circumstances indicated in the above specific clause, the extent of the charge is not only confined to the purchase money properly paid and the earnest but also extends to the interest upon this amount. What is the nature of this charge and how will it operate when, the subject-matter of the contract has been acquired by the State and is no more available for going ahead with the contract? It appears that when the seller and buyer are both willing to perform, their respective parts of the contract but the specific performance of the contract has become impossible by Page 12 of 30 C/SCA/142/2012 JUDGMENT the unexpected interference by the State in acquiring the property, the relative rights between the parties would continue to be the same as under the T.P. Act. In other words due to the impossibility of the performance of the contract, the buyer will be entitled to recover from the seller any purchase money properly paid together with interest and also earnest with interest and to that extent he would have had under the statutory provisions quoted above a charge on the land. However, the land or the property is no more available to the parties as the State has acquired it and by deciding its compensation has converted the property into a sum certain. The property is in a sense transformed into the sum certain and the rights of respective parties would continue to be the same, in respect of this sum or the amount of compensation, which they had or which they would have had against the property. In other words the buyer would be entitled to claim from the compensation amount, which represents the converted form of property, his purchase money and earnest together with interest. It is in this sense that the buyer whose contract is now frustrated appears to have a claim or share in the compensation which becomes payable to the owner of the property by reason of the acquisition thereof. Page 13 of 30
C/SCA/142/2012 JUDGMENT
16. At this stage we may consider the provisions of the Land Acquisition Act for the purposes of finding out whether the buyer of this type, whose contract is frustrated, is in a position to make a claim before the Land Acquisition Officer. The first definition in this behalf that must be seen is that 'person Interested' contained in Section 3(b) of the Land Acquisition Act. According to this definition, 'person interested' includes all persons claiming an interest in compensation to be made on account of the acquisition of land under this Act, and it further provides that a person shall be deemed to be interested in land if he is interested in an easement affecting the land. In this inclusive definition a person interested includes a person claiming an interest in compensation. This claim to an interest in the compensation, must arise out of acquisition of the land. A plain reading of the wording of Section 3(b) does not require that a person for being interested, must have an interest in the land which is acquired as such. It is enough that he has an interest in the compensation which has become payable on account of the acquisition of the land. In other words the occasion for claiming the interest in the compensation is the acquisition of the land. The claim or interest in Page 14 of 30 C/SCA/142/2012 JUDGMENT compensation made is not necessarily dependent upon the interest in the land itself. Under Section 9 of the Land Acquisition Act, the Land Acquisition Officer or Collector has to issue notice that the Government intends to take possession of the land and that claims to compensation for all interests in such land may be made to him. A question arises for consideration as to whether a claimant like claimant No.2 who is undoubtedly interested in the compensation payable for the acquisition of the land, could be described as a person having claim to compensation for any interest in the land. A charge extending to the recovery of the purchase money and earnest paid together with interest would not be described as an interest in the land in the sense of right in the immovable property. According to Section 100 of the Transfer of Property Act where immovable property of one person is by act of parties or operation of law made security for the payment of money to another and the transaction does not amount to a mortgage, the latter person is said to have a charge on the property and all the provisions hereinbefore contained which apply to a simple mortgage shall, so far as may be, apply to such charge. The difference between a mortgage and a charge is that in a charge there is no transfer of an interest in the Page 15 of 30 C/SCA/142/2012 JUDGMENT property but the creation of a right of payment out of the property is specified, and as such it cannot be enforced against a bona fide purchaser for value. A broad distinction between the two would be that whereas a charge only gives right to payment out of a particular fund or particular property without transferring that fund or property, a mortgage is in essence a transfer of an interest in specific immovable property. Even though therefore a buyer like claimant No.2 may have charge for the recovery of certain amount, he would not be said to be a transferee of an interest in the immovable property. However, the intention of the Land Acquisition Act is to acquire property for a public purpose by extinguishing all private rights, by awarding compensation at the same time for all interests in the land, which are required to be reckoned with at the time of the acquisition. We have already pointed out that under the definition of Section 3(b) a buyer like claimant No.2 would be undoubtedly a person interested as he can claim the amount advanced by him together with interest from the land and in the absence of the land from the money which represents the converted value of that land. When Section 9 calls upon all person to put in claims to compensation for all interests in such land, we are of Page 16 of 30 C/SCA/142/2012 JUDGMENT the view that an interest of the present type held by claimant No.2 is also intended to be covered. There need not be a transfer of immovable property in favour of a person before he could be described as a person entitled to claim for an interest in the land. The language of Section 9(1) of the Land Acquisition Act appears to us to be broad enough to include interest and claim for charge on land which would amount to an interest in the land for the purpose of Section 9(1). This being so claimant No.2 had undoubtedly right to apply under the Land Acquisition Act to the Collector for apportionment of the compensation amount.
17. xxx xxx
18. xxx xxx
19. xxx xxx
20. xxx xxx
21. xxx xxx
22. xxx xxx
23. xxx xxx
24. A Division Bench of this Court in the case of (1958) 60 Bom LR 1208 had an occasion to consider the implication of Section 30 and the rights of the Civil Court to decide the dispute relating to apportionment. Page 17 of 30
C/SCA/142/2012 JUDGMENT The learned Judge observed as follows.-
"Section 30 of the Land Acquisition Act merely provides that the Collector may make a reference to the District Court on a dispute as to the apportionment of the amount of compensation or any part thereof or as to the persons to whom the same or any part thereof is payable. But the Legislature has not laid down the principles by reference to which the dispute relating to apportionment has to be decided. The reason is obvious. When a dispute relating to apportionment arises, the Court is trying a dispute as to the civil rights between the parties relating to their interest in the money into which the land is transformed." We are in respectful agreement with these observations. Having permitted those persons to apply who had interest in the compensation or who had claim to the compensation or who had also interest in the land, the enquiry, as we had stated earlier, takes two different directions. One is the fixation of the compensation payable and the other is dispute relating to apportionment which is referred to the Court under Section 30. Since it has been so received in the Civil Court it becomes a matter to decide the civil rights of the parties and to make valuation in terms of money, of Page 18 of 30 C/SCA/142/2012 JUDGMENT those civil rights which the parties have. There the rights of the parties are like those of two brothers who have equal moities in the land itself, it would be easy for the Civil Court to pronounce that in the total compensation payable including solatium, the interest of each one will be half However, apart from the simple case of this kind, there are various civil interests which are required to be valued when the dispute between the claimants is to be resolved. For instance there may be an attaching creditor who had attached the land of his debtor for the purpose of recovering the decretal dues. If before he succeeds in enforcing his decree against the property attached, the land is acquired by the State, what would happen. He would undoubtedly have a claim towards the compensation which would be awarded, as the compensation would represent the converted pool of money of the land itself. The interest of such an attaching creditor could never exceed the decretal amount. Thus his interest will have to be independently valued and a fixed compensation to the extent of his decree would be payable to such a claimant. He would not be a general sharer in the general compensation in terms of certain percentage or proportion. In the same way if there is a mortgagee who has his mortgage debt against the property and Page 19 of 30 C/SCA/142/2012 JUDGMENT the property comes to he acquired, what would happen to the mortgaged amount? Sub-section (2) of S.73 of the Transfer of Property Act provides that where the immovable property, which was mortgaged, has been compulsorily acquired, the mortgagee shall be entitled to claim payment of the mortgage-money, in whole or in part, out of the amount due to the mortgagor as compensation. The mortgage under the Transfer of Property Act is a transfer of an interest in the property. However, the Legislature being aware of the nature of this interest has provided for the payment of only that amount to the mortgagee which would be due under his mortgage. In other words, if the total compensation paid is much more than the mortgage amount as found due it will not be permissible for the mortgagee to say that his interest in the land was compulsorily acquired and as such he should be paid solatium of 15 per cent, under sub-section (2) of S.23. If that is so, even when the interest was in the nature of transfer of property, or transfer of interest in the land itself,we fail to understand how a claimant like claimant No.2, who had only contracted to purchase the property and whose contract is now frustrated can claim any share in the solatium payable under sub-section (2) of Section 23. His interest, which is now a limited interest as Page 20 of 30 C/SCA/142/2012 JUDGMENT indicated by Section 66(55?)(6)(b) of the Transfer of Property Act is a definite amount as described in that clause. Purchase money properly paid with interest and earnest, if any, together with interest would be the only amount which he can claim and to the extent of this amount he would have a charge on the property. He has therefore a limited interest to the extent of a definite amount, as what was acquired was the land and not the interest of this claimant separately as such. In fact if the acquisition was not there, the only right available to claimant No.2 was to obtain a sale-deed by paying the full consideration under the agreement of sale. He could not have independently exercised the right to enforce the charge under Section 55(6)(b) Since that right of claiming sale-deed is not available to him because of the compulsory acquisition by the State, he is required to fall back upon the alternate right available to him to enforce the charge under S.55(6)(b). This was a dormant right which, became available to him because of the compulsory acquisition. Though therefore such right continues to be a charge on the amount of compensation payable representing the land, it must always be remembered that this right is a limited one to recover a sum certain and nothing beyond. This right which arises as a result of the Page 21 of 30 C/SCA/142/2012 JUDGMENT compulsory acquisition could not be considered to be an interest in the land which was acquired as such by the State. Fifteen per cent solatium payable under sub- section (2) of S.23 represents the payment for compulsory acquisition of land and be we have indicated above there was no compulsory acquisition of the interest of this claimant at all, he could not resort to the provisions of sub-section (2) of S.23 for claiming any additional amount."
11. The learned advocate also relied upon a decision of the Hon'ble the Apex Court in the matter of Sunil Kumar Jain Vs. Kishan and others, reported in A.I.R. 1995 SC 1891. The judgement consists of three paragraphs. The same is reproduced hereunder:
"ORDER: Notification under S. 4 (1) of the Land Acquisition Act was published on November 17, 1980 acquiring the lands in question. The Collector made an award for a sum of Rs. 38,500/-. Since the petitioner laid claim for a higher amount, a reference under S. 18, was made. The Civil Court disbelieved the agreement of sale put forth by the petitioner; therefore, reference was ordered in favour of the respondents. In appeal, the High Court said that the said agreement was in Page 22 of 30 C/SCA/142/2012 JUDGMENT violation of S.4, of the Delhi Land (Restriction and Transfer) Act, 1972 and that, therefore, the agreement is void. Accordingly,the findings of the Reference Court was accepted. Thus, this appeal by Special Leave.
2. Learned counsel appearing for the petitioner contended that under the agreement of sale dated 5th December, 1981 the respondents had received consideration and kept the petitioner in possession of the land and that, therefore, by operation of S. 53-A, of the Transfer of Property Act, the petitioner is entitled to the compensation. We are unable to agree with the learned counsel. In a reference, the dispute is to the title to receive the compensation. It is settled law that the agreement of sale does not confer title and, therefore, the agreement holder, even assuming that the agreement is valid, does not acquire any title to the property. It is seen that the agreement is subsequent to the notification under S. 4 (1).The Government is not bound by such an agreement. The inter-se dispute is only with respect to the title as on the date of notification under S.4(1).The respondent is the undoubted owner of the property as per S.4 notification and that, therefore, the compensation was directed to be paid to the respondent since he is one of the members. We cannot find any illegality in the order Page 23 of 30 C/SCA/142/2012 JUDGMENT passed by the Courts. However, if the petitioner has got any claim under S. 30 of the land Acquisition Act, it is open to him to take such action as open to him under law.
3. The Special Leave Petition is accordingly dismissed."
12. The learned advocate for the petitioner also relied upon a decision of the Hon'ble the Apex Court in the matter of Karnataka Electricity Board Vs. The State of Karnataka and others, reported in A.I.R. 2002 SC 1114. The learned advocate relied upon para 11, which reads as under:
"11. In this view of the matter award passed by the LAO requires to be modified accordingly. It is ordered that the claimants shall be paid compensation at the agreed rate of Rs. 14,250/- per gunta for 2/3rd area of the schedule property and not 50% thereof. As directed by the LAO, claimant also would be entitled to get 30% of solatium and on the said amount of solatium they would be entitled to have interest in view of the decision rendered by the Constitution Bench of this Court in Sunder v. Union of India ((2001) 7 SCC 211. However, the award directing that the appellant shall pay interest @ 9% per annum for the first year and @ Page 24 of 30 C/SCA/142/2012 JUDGMENT 15% per annum for the subsequent years from the date of issue of notice under Section 4(1) of the Land Acquisition Act on the amount of compensation is set aside."
13. The learned advocate for the petitioner also relied upon a decision of the Hon'ble the Apex Court in the matter of Ishwarlal Premchand Shah and others Vs. State of Gujarat and others, reported in A.I.R. 1996 SC 1616. The learned advocate invited attention of the Court to the observations made by the Hon'ble the Apex Court in paras 6 and 8, which read as under:
"6. In this case, the agreements were between the owners and the GIDC for whose benefit the lands were acquired. Even before the notification under Section 4 was issued, the owners and the GIDC had entered into an agreement whereby the owners had agreed to part with possession of their lands so as to enable GIDC to establish Udyog Nagar thereon. Under the said agreements, the GIDC was permitted to enjoy continuous possession of those lands till the process of acquisition under the Land Acquisition Act was to be completed. While entering into these agreements, the owners had agreed to accept compensation @ Rs. 6,100/- per acre. Thereafter, Section 4, notification was Page 25 of 30 C/SCA/142/2012 JUDGMENT published on August 2, 1984. While the proceedings were pending before the Land Acquisition Officer, the owners and GIDC again in the year 1985, entered into separate agreements, whereunder the Corporation agreed to pay and the owners agreed to accept compensation @ Rs. 22,657/- per hectare inclusive of solatium and additional benefits payable under the Act. These agreements duly signed were presented before the Collector. On being satisfied about the voluntary nature of the said agreements, the Collector passed an award in terms of those agreements. Under these circumstances, it cannot be said that the essential requirements of sub-section (2) of Section 11, as applicable in the State of Gujarat, was not complied with,Moreover, Form No. 14 as such would not be relevant in a case where the agreement is between the owners and interested persons on the one hand and the body for which the land is being acquired on the other hand. Form No. 14 would apply to a case where the owners and the persons interested in the land appear before the Collector and express their willingness to accept an agreed amount as compensation. In such cases, the agreement is required to be executed in the prescribed Form No. 14. Therefore, even though in the present case, the agreements were not in the Page 26 of 30 C/SCA/142/2012 JUDGMENT prescribed form, there being no prescribed form for a case like this, the award cannot be said to be illegal or void. The owners have agreed in 1985, as under:
"This agreement is being done in pursuance of the consent agreement that has been arrived at on 27-12- 1980, between Shri Hitendra alias Gautam Prem Shankar Oza of the first part and the Gujarat Industrial Development Corporation of the second part since the price of the land that has been given under the said agreement has been fixed at Rs. 22,857/- (Rupees twenty two thousand eight hundred and fifty seven only) per hectare inclusive of solatium and additional land compensation by way of its consent price. This agreement is thus being done for that limited purpose.
The date of possession and other terms and conditions mentioned in the agreement done on 27-12-80, shall remain the same."
7. XXX XXX
8. This Court in State of Gujarat v. Daya Shamji Bhai, (1995) 5 SCC 746 : (1995 AIR SCW 3827), had considered the similar contentions and held that once the parties have agreed under Section 11 (2) of the Act, the Land Acquisition Officer, has power under Section Page 27 of 30 C/SCA/142/2012 JUDGMENT 11(2) to pass the award in terms thereof and that the award need not contain payment of interest, solatium.
9. and additional amount unless it is also part of the contract between the parties. The same ratio applies to the facts in this case. In view of the above clauses in the agreements the appellants are not entitled to the payment of additional amounts by way of solatium, interest and additional amount under the provisions of the Act."
14. Last, but not the least, the learned advocate relied upon a decision of the Hon'ble the Apex Court in the matter between State of Gujarat Vs. Daya Shamjibhai, reported in A.I.R. 1996 SC 133. The learned advocate pressed into service the observations made by the Hon'ble the Apex Court in para 9, which read as under:
"9. By operation of Section 11(4), the need for registration of the agreement is obviated. As seen in the contract, the respondents have forgone their right of seeking reference in lieu of 25% more than the compensation determined by the Collector under Section 11(2) of the Act. In fact, 25 per cent in addition to the market value determined by the Collector in his award under Section 11(1) had been paid as the consideration to forgo reference. Even otherwise, once an agreement was entered by the parties, the question of objection to receive compensation under protest Page 28 of 30 C/SCA/142/2012 JUDGMENT does not arise; so, they have no right to seek a reference to the Civil Court under Section 18 of the Act."
15. It is required to be noted that the petitioner-society was granted this land with a limited right of cultivation. As the name is suggestive of the fact that it is Kunvar Harijan Samudhayik Sahakari Kheti Mandali. The idea behind grant of this land was that members of the Mandali may cultivate the land to earn livelihood. This is necessarily suggestive of the fact that they are not owners of the land and therefore, the agreement entered with GIDC for consent award in a sum of Rs.14,00,00,000/- and odd is not justifiable on any ground. At the most the members of the Mandali; those who kept on changing from its inception can ask for grant of other land with similar right. As such it is the Government land which is being acquired.
16. On careful consideration, this Court is of the opinion that these decisions do not advance the cause of the petitioner, more particularly, when this Court is of the opinion that there is ill design and ill motivated attempt on the part of the society to get something indirectly which the Society could not get directly by entering into an agreement with GIDC, by filing petition against the State and the Officer on Special Duty by saying, that agreement which the petitioners entered into with the GIDC should be implemented. This Court is of the opinion that there can never be a Page 29 of 30 C/SCA/142/2012 JUDGMENT relief to such effect that an agreement which was entered into with somebody should be enforced against another set of party. Therefore, these judgments do not advance the cause of the petitioner.
17. This Court is of the opinion that the petition is thoroughly misconceived and misplaced and therefore, the same deserves to be dismissed. The same is accordingly dismissed. Rule is discharged. No order as to cost.
18. In view of the fact that the main petition is disposed of, Civil Application No.8422 of 2012, Civil Application No.986 of 2013 and Civil Application No.10830 of 2013 are also disposed of.
(RAVI R.TRIPATHI, J.) (MOHINDER PAL, J.) karim Page 30 of 30