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Ramesh Chandra Patra vs Special L.A.O
2025 Latest Caselaw 156 Ori

Citation : 2025 Latest Caselaw 156 Ori
Judgement Date : 5 May, 2025

Orissa High Court

Ramesh Chandra Patra vs Special L.A.O on 5 May, 2025

Author: M.S. Sahoo
Bench: M.S. Sahoo
                   IN THE HIGH COURT OF ORISSA, CUTTACK

                                    LAA No. 33 of 2014
                                      ---------------------

       An appeal under Section 54 of the Land Acquisition Act, 1894.

       Ramesh Chandra Patra
       and others                                 ...                ...                    Appellants

                                                   -Versus-

       Special L.A.O., Angul-Duburi-
       Sukinda Road, New Broad
       Gauge Rail Link Project   ...                                 ...                  Respondent

                    For Appellants : Mr. Niranjan Panda-1, Advocate

                    For Respondent : Mr. Sanjib Swain, AGA
                                                Mr. S. K. Dash, Sr. Advocate
                                                along with Mr. P. Dash, Advocate
                                                (for Intervenor)
       P R E S E N T:

               THE HONOURABLE SHRI JUSTICE M.S. SAHOO

                Dates of hearing : 21.04.2025 and 05.05.2025
                             Date of judgment : 05.05.2025
       ------------------------------------------------------------------------------------------

M.S.SAHOO, J.

Present LAA is listed and taken up along with LAA

Nos.34 and 35 of 2014. All the parties to the respective

appeals are represented by the same learned counsel. The

facts of the appeals are identical. They arise from one land

acquisition process, that is for construction of Angul-

Duburi-Sukinda Road, New Broad Gauge Railway Line.

Issues are also similar and identical. The question of law

is also the same to be decided by this Court. LAA No.33

of 2014 was heard as the lead case. For effective

utilization of available time all the appeals were taken up

and heard together. The learned counsel for the parties

who represented the parties in all the cases were heard at

length. This appeal is disposed of by noting the

contentions and arguments urged in all the appeals taken

together.

1. The appeal U/s.54 of the Land Acquisition Act, 1894

has been filed by the appellants challenging judgment

dated 04.07.2014 passed by learned Civil Judge (Sr.

Division), Kamakshyanagar in L.A. Misc. Case No. 126 of

2013. Appellants were claimant-petitioners before the

Court below in a reference that was made by the Special

Land Acquisition Officer U/s.18 of the Land Acquisition

Act, 1894, as dispute arose regarding the actual market

price of the acquired land for determination of

compensation. The Court, learned Civil Judge (Sr. Division),

Kamakshyanagar answered the reference by judgment

dated 04.07.2014.

2. The land acquisition proceeding was pursuant to

notification dated 07.07.2010 published in the Gazette on

05.08.2011. Land of the appellants of an area Ac. 0.55

decimals, pertaining to Plot No.1893 of 'Sarada-I kisam'

Mouza-Kamakshyanagar, District- Dhenkanal was acquired

for the Angul-Duburi-Sukinda Road, New Broad Gauge

(B.G.) Rail Link Project, Dhenkanal. The Land Acquisition

Officer determined the compensation amount at

₹25,00,000/- per acre i.e. ₹25,000/- per decimal.

3. Before the referral Court the awarded compensation

amount ₹22,30,966/- as intimated to the appellants by

notice U/s. 12(2) of L.A. Act was disputed by the appellants

stating that their land should be valued at a higher rate.

The appellants had objected before the L.A. Collector by

written objection and they received with protest

compensation amount. Their written objection was

forwarded by the Special Land Acquisition Officer leading to

adjudication by the learned Civil Judge (Sr. Division). The

referral Court enhanced the compensation amount, to be

determined at Rs.56,41,905/- (Rupees fiftysix lakh fortyone

thousand nine hundred five) per acre. The appellants still

dissatisfied have approached this Court in the present

appeal.

4. It is noticed by this Court that the proceeding u/s.18

of the Act before the Court of the learned Civil Judge

(Senior Division) has some peculiar features as far as

impletion of parties. Certified copy of the judgment has

been enclosed and is also available in the lower court

records which indicates that the Special LAO, Angul-

Duburi-Sukinda Road, New B.G. Rail Link Project

forwarded the claim of appellants and was the only opposite

party to answer the claim of enhancement of compensation

amount. What is more peculiar is that the learned Civil

Judge (Sr. Division) has neither framed any issue nor

answered as to who were the Project Proponents, who had

deposited/paid the amount of compensation as determined

by the LA Collector in the first instance and would

pay/deposit the enhanced amount as directed by the

learned Civil Judge (Sr. Division). The learned Court has

not at all gone to the issue how the enhanced amount

awarded will be satisfied i.e. whether opp. Party in the lis is

to pay the amount or any one else will pay it.

5. The issues framed by the learned court below is

reflected in paragraph-5 of the judgment which is

reproduced below :

"5. The point that needs for determination is :

Whether the petitioners are entitled to have an amount of higher compensation than the amount settled by the O.P. ?"

6. The "order" of the learned Civil Judge(Sr. Division)

indicates the following :

"The reference U/s.18 of L.A. Act is answered as follows:-

The market price of acquired land is determined at Rs.56,41,905/- (fifty six lacs forty one thousand nine hundred and five) per acre, as on the

date of notification. The petitioners are entitled to get compensation at such higher rate for the acquired land. The Special Land Acquisition Officer, Angul- Duburi-Sukinda Road New B.G. Rail Link Project, Dhenkanal is directed to re-assess the compensation at such higher rate for the acquired land measuring Ac.0.55 dec bearing plot no. 1893 under khata no.375/81 and to pay the same to the petitioners after deducting the amount which has already been paid to him. The petitioners are also entitled to all the statutory benefits on such enhanced compensation as admissible under the L.A. Act. The petitioners are also at liberty to put-forth their grievance for proper rehabilitation and resettlement before the competent authority as per the provisions of Orissa Resettlement and Rehabilitation Policy, 2006."

7. By the above order the amount of compensation

awarded in the L.A. proceeding, ₹22,30,966/- (Rupees

twenty two lakh thirty thousand nine hundred sixty six)

was enhanced by the learned court to be calculated at

₹56,41,905/-(Rupees fifty six lakh forty-one thousand nine

hundred five) per acre as on the date of notification. The

Special LAO, Angul-Duburi-Sukinda Road, New B.G. Rail

link Project was directed to re-assess and pay the same to

the petitioners after deducting the amount which has

already been paid to him.

8. Somehow, the judgment in its ordering portion or any

of its paragraphs does not refer to who will deposit the

enhanced amount before the LAO Collector. The list of

witnesses examined on behalf of petitioners indicates that

no witness was examined on behalf of opposite parties

Special LAO nor any written statement was filed on behalf

of the Special LAO. Working sheet of the acquired land was

produced on behalf of Opp. Paty-L.A. Collector marked as

Ext.A. Apparently, contest to the enhanced amount claimed

or any contest to the basis of determination of enhanced

amount has not been disclosed in the judgment.

9. Being dissatisfied by the determination of the

compensation amount ₹56,41,905/- per acre of land on the

date of notification as held by the referral Court the

appellants have challenged the same by filing the present

appeal for further enhancement. By order dated 29.06.2015

payment of court fee was exempted in Misc. Case No.185 of

2013. The matter was then referred to the National Lok

Adalat held by this Court. By order dated 09.12.2017 it is

observed by the learned Judge, Lok Adalat that "It is

submitted by learned counsel for the appellant that in view

of the dispute involved in this case, this matter cannot be

settle in the Lok Adalat."

10. As indicated above Misc. Case No.139 of 2016 has

been filed by the Company for intervention. The said I.A.

has been contested to the hilt as the matter is kept pending

before this Court. The I.A. is contested by the appellant

without any further progress in the adjudication of appeal.

The respondent, Special LAO represented in the present

appeal through the learned AGA also objects the

intervention application. On consent of the parties the

matter is taken up for hearing and disposal. The Misc.

Case seeking inervention is also taken up and disposed of

by the order recorded below along with the judgment.

11. Petitioner Angul-Sukinda Railway Company has filed

the application under sub-section (2) of Section 50 of the

LA Act, 1894 read with Order I Rule 10 of the Code of Civil

Procedure, 1908 for intervention. It is contended that no

notice was issued either to the East Coast Railway (Project

Proponent) on whose behalf the land was acquired or to the

intending-intervenor Company by entering into a

concession agreement with the Govt. of India, Ministry of

Railways, has undertaken the liability to pay the

compensation amount in respect of the land acquired for

the project. Though the award has not been challenged

separately in any connected land acquisition appeal but it

is contended in the I.A. that in absence of statutory notice

to East Coast Railway or the intervenor-Company the

award has to be held as a nullity as it suffers from gross

violation of the principle of natural justice, i.e. the affected

party must be heard by the adjudicating Court.

12. In the background facts as noted above and in view

of the procedure adopted in the proceedings before the

Special LAO as well as in the reference U/s.18 that was

decided by the learned Civil Judge (Sr. Division),

Kamakshyanagar, the contention that neither the East

Coast Railway nor the Company were made parties or were

heard remains unrebutted.

Further, no material is brought to the notice of this

Court by appellants or the respondent-opposite party LAO

to show that East Coast Railway and the Company were

made parties or were heard in the proceeding u/s.18 of the

Act before the Court below. It is also neither pleaded nor

demonstrated before this Court if impletion of East Coast

Railway and/or the intending intervenor Company in the

proceeding u/s18 would have prejudiced the appellants or

the O.P.-Spl. Land Acquisition Officer in any manner. The

Special Land Acquisition Officer opposing the intervention

by the intervener company is rather baffling as the Special

LAO is not an affected party who would pay the

compensation if it is enhanced.

13. The learned counsel appearing for the appellants Mr.

Panda was heard at length. There is serious opposition on

behalf of the appellants to the intervention application but

on the face of the records it is fairly conceded that neither

the East Coast Railway nor the intervenor-Company were

made parties or heard before the referral Court. Obviously

there is no reference to any written statement or any other

response from Railways or the intending intervenor in the

LA case before the referral Court.

14. Order dated 21.04.2025 was passed earlier after

hearing the learned counsel for appellants. Said order is

reproduced herein :

"1. The matter has been listed for orders.

I.A. has been filed for intervention by the intending intervener-petitioner stating at Paragraphs- 2 and 3 the following.

"2. That it transpires from the impugned Award that no notice was issued to either the East Coast Railways, on whose behalf the land was acquired or the Intervener-Company who has undertaken the liability to pay the compensation amount in respect of the land acquired for the project, by virtue of an agreement or MoU with the Ministry of Railways. It is submitted that in absence of the statutory notice as aforesaid, the Award has always been held as a nullity.

3. That due to want of notice, the Intervenor- Company did not have any opportunity to adduce evidence before the Court and that the compensation amount has been enhanced by the Court at the instance of the appellants alone. There

has been a clear-cut violation of the principles of natural justice. Intervener- Company is likely to be saddled with the liability to pay the compensation amount at a higher rate without an opportunity of hearing. Therefore, the impugned Award cannot be allowed to stand."

2. Learned counsel for the appellants submits that the appellants-opposite parties have filed objection to the petition for intervention.

3. Learned counsel for the appellants on being asked whether the appellants have stated in the objection that the intending intervener is neither a necessary nor a proper party for adjudication of the matter, submits that in absence of his learned senior the matter may be adjourned.

4. Perusal of the objection filed by the land oustee- appellants does not show any response to the specific averments made in paragraphs-2 and 3 of the petition as indicated above.

5. As prayed for, list on 05.05.2025.

Liberty to mention for listing before the assigned Bench.

6. List on 05.05.2025."

15. Learned counsel Mr. Niranjan Panda appearing on

behalf of appellants in response to the above order dated

21.4.2025 makes his submissions :

In response to observations made in paragraphs 3 & 4

of the order he submits that the objection dated 30 th

September, 2022 filed by the appellants through the

appellant no.3 paragraph-2 is the answer to the issues

raised in paragraphs 3 and 4. Paragraphs-2 and10 of the

objection are relied upon and are quoted herein :

"2. That the Misc. Case is not tenable in the eyes of law and fact as the intervener is neither a necessary nor a proper party. The land in question was acquired for East Coast Railway on requisition for public purpose u/section-4(1) of L.A. Act, 1894. The land in question was never acquired for Company- ASR Ltd for which the Intervener never appeared in below.

10. That the law is well settled that only the beneficiary/person interested for whose purpose the land is required may be heard under Section 50(2) of L.A. Act if the beneficiary so likes. In the present case at the time of reference, the copy of reference application has been forwarded to the East Coast Railway as is available in the case record. But the petitioner is in no way concerned in the matter in the garb of agreement with Railway Department for Execution of the project work under PPP mode."

16. Having gone through the paragraphs 2 & 10 of the

objection, it was pointed out to the learned counsel that the

appellants admit that the acquisition was as per requisition

of the Ministry of Railways who have entered into

concession agreement with the intending-intervener

company. Learned counsel does not dispute that the East

Coast Railway has not been arrayed as party in the

petition. The authority i.e. Special Land Acquisition Officer,

Angul-Duburi-Sukinda Road, New B.G. Rail Link Project

has been made the only opposite party who was neither

authorized in his official capacity nor he could have

represented East Coast Railway/Ministry of Railway Union

of India/Company.

17. It is noticed that the judgment in the opening

paragraph refers to the Special LAO referring the matter

u/s. 18 as indicated herein :

"This is a reference U/s.18 of the Land Acquisition Act made by the Special Land Acquisition Officer, Angul-Duburi-Sukinda Road New B.G. Rail Link Project, Dhenkanal for determination of the actual market price of the acquired land."

Further, it is submitted by learned counsel for the

appellants that the decretal dues have been paid by the

East Coast Railway though they are not parties in the

reference i.e. LA Misc. Case No. 126 of 2013.

The affidavit of the appellants dated 30.09.2022

(objection to the intervention) does not state whether any

amount was deposited/paid towards enhancement. The

affidavit does not disclose the reasons for an authority who

is not a party to a reference u/s. 18 of the Land Acquisition

Act would satisfy the decree. No indication is there when

the amount, if any, was deposited. The direction of the

learned Civil Judge (Sr. Division) was to the Special Land

Acquisition Officer to reassess the compensation, as such

there is no direction to any other entity to deposit and/or

for payment of such compensation so that the Special Land

Acquisition Officer can release the enhanced amount in

favour of the appellants.

18. Learned counsel for the appellants submits that

though not made party the referral court issued notice to

the East Coast Railway. On being asked by which order the

said notice was issued by the learned Civil Judge (Senior

Division), Kamakshyanagar in L.A. Misc. Case No.126 of

2013, the learned counsel submits that the Special LAO

while referring the matter under section 18 of the Land

Acquisition Act, by letter intimated the East Coast Railway.

Such submission is also contrary to the materials on

record i.e. the record of the lower Court (LCR). The

judgment as well as the reference on the face of it does not

indicate that the requisitioning authority-East Coast

Railway was ever made a party much less noticed by the

learned Civil Judge (Senior Division), Kamakhyanagar as is

being suggested by the learned counsel for the Appellants.

19. Assuming that the opposite party in the L.A. case,

Spl. LAO issued letter to another authority which is not

made party, proposition that such letter has to be treated

as notice issued by the court is beyond scope of law. When

the Special LAO himself was the opposite party in the

adjudication he could not have issued letter to another

authority to be treated as notice to appear before the Court.

The LAO was not competent in his official capacity to place

before the referral Court the version of the Railways or the

Company.

20. Relying on the decisions rendered by the Supreme

Court in Satish Kumar Gupta and others v. State of

Haryana and others: (2017) 4 SCC 760 and Gregory

Patrao v. Mangalore Refinery and Petrochemicals Ltd.:

(2022) 10 SCC 461, it is submitted by the learned

counsel, Mr. Panda for the appellants that the intending

intervenors are neither necessary nor proper parties to be

impleaded before the LA referral court and they have no

locus standi in view of the notification dated 07.07.2010

issued under S.4(1) of the LA Act, annexed to the objection

marked as Annexure-1/1. It is further submitted that

Ministry of Railways is not a necessary party.

Such submission of the learned counsel is on the face

of the fact that the requisitioning authority is Union of

India through Ministry of Railways as per the orders of the

Excellency the President of India under Article 256(1) of the

Constitution of India.

21. Mr. Swain, learned Additional Government Advocate

referring to the judgment in Satish Kumar Gupta (supra)

and Gregory Patrao (supra) submits that in view of the

MoU having been subsequently executed between the

Ministry of Railways and the Special Purpose Vehicle

Angul-Sukinda Railways Company Limited (ASRL Ltd.),

they are not necessary or proper parties in the proceeding

before the LAO or the referral Court U/s.18 of the LA Act.

But the learned AGA again submits that the East Coast

Railway, the Project Proponent was not made a party or

heard in any manner in the reference. He submits that if

the matter is restored back to the referral Court, East Coast

Railway should be made a party and heard.

22. Learned Senior Counsel for the intending intervenor

Mr. S.K. Dash appearing along with Mr. P. Dash, learned

counsel, to substantiate his arguments relies on the

decision rendered by the Constitution Bench of Supreme

Court in U.P. Awas Evam Vikash Parishad v. Gyan Devi:

AIR 1995 SC 724: (1995) 2 SCC 326 particularly

paragraphs 48 to 56 of SCC where the Supreme Court has

given its conclusions.

It is submitted that the facts and the issue involved

in Gregory Patrao (supra) and Satish Kumar Sharma

(supra) are different and distinguishable as far as their

applicability to the present case is concerned. In those

cases the subsequent purchaser/beneficiary of the land

acquisition wanted to be parties in the LA proceeding or the

reference before the Civil Court. Answering that question it

was held in Satish Kumar Sharma (supra) and in

Gregory Patrao (supra) that post acquisition beneficiaries

are not necessary or required to be made party in the LA

proceeding or the reference.

23. The learned Senior Counsel relies on the decision of

this Court rendered by a coordinate Bench in Pitambar

Sahoo v. Angul-Sukinda Railway Limited : 2016(II) ILR-

CUTT 212 : 2016(II) OLR 27 (Manupatra print). Referring

to the said decision it is submitted that after the

authoritative determination by this Court in Pitambar

Sahoo(supra) it is no more res integra that Angul-Sukinda

Railway Company Limited, a Company incorporated under

the Companies Act is a person interested as defined

U/s.3(b) of the Act and appeal/petition for intervention filed

by the said Company U/s.54 of the Act or petition U/s.

50(2) of the Act read with Order I Rule 10 of the CPC is

maintainable.

Learned Senior Counsel relies on paragraphs-11 and

12 of Pitamber Sahoo (supra), which are quoted herein:

"11. From a conjoint reading of the aforesaid terms and conditions of the agreement it is manifest that the compensation for land acquisition has to be paid by the opposite party. Neither the Ministry of Railways nor the East Coast Railways for whose benefit the land has been acquired has shouldered any liability for the same. In view of the above, the submission of Mr. Panda to the effect that the opposite party was only a lessee under the lease agreement and has no say in the matter of determination of the compensation, cannot be accepted. The lease agreement was executed between the parties to work out the terms and conditions of the Concession Agreement. Thus, the opposite party has a right more than that of a lessee or a contractor as alleged by Mr. Panda. In view of te above, it necessitates the Court to have a close reading of the case of P.H. Harijan (supra). In the said case, the land was acquired under the poriviions of KIAD Act. The land was acquired by the State Government at the instance of KIADB under Section 28(1) of the Act, 1966. The said provision is pari materia to Section 4(1) of the L.A. Act. Section 30 of the said Act provides that the

provision of L.A. Act shall mutatis mutandis apply in respect of holding enquiry and to pass award determining the compensation for acquisition of land by the Deputy Commissioner. In paragraph-33 of the P.H. Harijan (supra), Hon'ble Supreme Court held as under:

"33..... In view of the above statutory provisions of the KIAD Act, the provisions of Sections 11, 18 and 30 of the LA Act are applicable for the purpose of determination of just and reasonable compensation of the acquired land payable to the landowners either by the Deputy Commissioner or Reference Court."

12. ... ... Thus, the status of the opposite party in the instant case cannot be equated with that of the lessee (M/s. Rajshree Cement) as the opposite party is under obligation liable to raise funds, execute the project work, pay the compensation to the land owners and to execute all other things as agreed upon by it in the Concession Agreement..."

[Underlined to supply emphasis]

24. Having heard in detail the learned counsel and in view

of the above discussions and by applying the law laid down

by the Supreme Court and this High Court as noted above,

the petition seeking leave to intervene is allowed and

disposed of.

Leave granted.

The petitioners shall be heard in the appeal.

LAA No. 33 of 2014.

25. The LAA has been kept pending for the last 11 years.

After issuance of notice, application for intervention was

filed in the year 2016, which has been allowed by the above

order. The intervention application was contested all

through without delving into the merits of the appeal.

26. Heard learned counsel Mr. Niranjan Panda for the

appellants, learned Additional Government Advocate Mr.

Swain for the respondents and Mr. Dash, learned Senior

Counsel for the intervenor.

The learned counsel reiterate their respective

submissions as noted above.

27. Learned AGA further submits that the present

respondent i.e. Special LAO has limited role. As the Land

Acquisition Act provides he is an authority under the

statute which undertakes the process of acquisition, at the

most he can facilitate deposit and disbursal of such

compensation as determined under the statute and also

any amount awarded by the referral court. The

compensation/enhanced amount has to be deposited by

the project proponent/beneficiary with the LA authority to

be disbursed to the appellants-claimants.

28. The learned Senior Counsel appearing for the

intervenor submits that as far as the prayer for

enhancement is concerned the order passed by the

referral Court shows that the contentions of the project

proponent-Railway or the Special Purpose Vehicle which

entered into MoU/concession agreement with Ministry of

Railways were not considered as they were not made

parties. After the pronouncement in Pitambar Sahoo

(supra) the SPV is a person interested under Section 3(b)

of the Land Acquisition Act, 1894. The referral court has

to hear the railway and/or the SPV for arriving at a

decision whether to enhance the award.

29. In U.P. Awas Evam Vikash Parishad v. Gyan

Devi: AIR 1995 SC 724: (1995) 2 SCC 326, Constitution

Bench of five Hon'ble Judges of the Supreme Court held as

quoted herein (at paragraphs-48 to 56 of SCC) :

"48. Section 50(2) of the L.A. Act confers on a local authority for whom land is being acquired a right to appear in the acquisition proceedings before the

Collector and the reference court and adduce evidence for the purpose of determining the amount of compensation.

49. The said right carries with it the right to be given adequate notice by the Collector as well as the reference court before whom acquisition proceedings are pending on the date on which the matter of determination of compensation will be taken up.

50. The proviso to Section 50(2) only precludes a local authority from seeking a reference but it does not deprive the local authority which feels aggrieved by the determination of the amount of compensation by the Collector or by the reference court to invoke the remedy under Article 226 of the Constitution as well as the remedies available under the L.A. Act.

51. In the event of denial of the right conferred by Section 50(2) on account of failure of the Collector to serve notice of the acquisition proceedings the local authority can invoke the jurisdiction of the High Court under Article 226 of the Constitution.

52. Even when notice has been served on the local authority the remedy under Article 226 of the Constitution would be available to the local authority on grounds on which judicial review is permissible under Article 226.

53. The local authority is a proper party in the proceedings before the reference court and is entitled to be impleaded as a party in those proceedings wherein it can defend the determination of the amount of compensation by the Collector and oppose enhancement of the said amount and also adduce evidence in that regard.

54. In the event of enhancement of the amount of compensation by the reference court if the Government does not file an appeal the local authority can file an appeal against the award in the High Court after obtaining leave of the court.

55. In an appeal by the person having an interest in land seeking enhancement of the amount of compensation awarded by the reference court the local authority should be impleaded as a party and is entitled to be served notice of the said appeal. This would apply to an appeal in the High Court as well as in this Court.

56. Since a company for whom land is being acquired has the same right as a local authority under Section 50(2), whatever has been said with regard to a local authority would apply to a company too."

[Underlined to supply emphasis]

30. In Neyvely Lignite Corporation Ltd. v. Special

Tahsildar (Land Acquisition), Neyvely : (1995) 1 SCC

221 : AIR 1995 SC 1004 a Bench of three Hon'ble

Judges of the Supreme Court had the occasion to decide

and lay down who can be 'persons interested' in terms of

section 3(b) of the Land Acquisition Act, 1894 and also in

the context of the sections 18, 26, 50(2) and 54 of the

Act. Upon discussing the law as laid down in the earlier

decisions rendered by the Supreme Court it was held

(SCC-paragraphs 11, 12, 13, 14 and 15) :

"11. Shri Sanghi placed a strong reliance on Santosh Kumar v. Central Warehousing Corpn. [(1986) 2 SCC 343 : (1986) 1 SCR 603] The facts therein were that the award made under Section 11 was challenged in the writ petition contending that the Corporation is the affected person by determination of the compensation and without impleading it, the award made was illegal. The High Court exercising its jurisdiction under Article 226 of the Constitution reduced the compensation. On an appeal, this Court had held that when the acquisition was made on behalf of the Corporation, the Collector had acted as an agent on behalf of the Government. The award is only an offer. When the Government itself cannot seek a reference under Section 18, the beneficiary also cannot seek a reference. In those circumstances, it was held that the award made by the Collector could not be questioned except when the award was vitiated by fraud, corruption or collusion. The ratio is clearly consistent with the view taken by this Court in Harish Chandra v. Dy. Land Acquisition Officer [(1962) 1 SCR 676 : AIR 1961 SC 1500] . It is well settled law laid in Ezra v. Secretary of State for India in Council [ILR 32 Cal 605 : 32 IA 93 (PC)] and catena of precedents that the award made by the Collector is only an offer made on behalf of the State and that, therefore, the State is bound by the offer made by the Collector. If the owner accepts it without protest no further proceedings were required to be pursued. But if the owner received it under protest and made a valid application for reference, the amount determined by the civil court under Section 26 binds the parties and concludes the proceedings subject to appeal. In that view, there is no inconsistency with the view taken in Himalayan Tiles

case [(1980) 3 SCC 223 : (1980) 3 SCR 235] with the view in Santosh Kumar case [(1986) 2 SCC 343 :

(1986) 1 SCR 603] . The facts therein do not touch the controversy now in this case. Under these circumstances, the ratio in Santosh Kumar case [(1986) 2 SCC 343 : (1986) 1 SCR 603] renders little assistance to the respondents. However, the Ahmedabad Municipal Corpn. case [(1971) 3 SCC 821] is not a good law. In this view it is hardly necessary to burden the order with copious citations of contra view in plethora of precedents of the High Courts.

12. It is true that Section 50(2) of the Act gives to the local authority or the company right to adduce evidence before the Collector or in the reference under Section 18 as it was specifically stated that in any proceedings held before the Collector or the Court, the local authority or the company may appear and adduce evidence for the purpose of determining the amount of compensation. However, it has no right to seek reference. Based thereon, the contention is that the limited right of adduction of evidence for the purpose of determining the compensation does not carry with it the right to participate in the proceedings or right to be heard or to file an appeal under Section

54. We cannot limit the operation of Section 3(b) in conjunction with sub-section (2) of Section 50 of the Act within a narrow compass. The right given under sub-section (2) of Section 50 is in addition to and not in substitution of or in derogation to all the incidental, logical and consequential rights flowing from the concept of fair and just procedure consistent with the principles of natural justice. The consistent thread that runs through all the decisions of this Court starting from Himalayan Tiles case [(1980) 3 SCC 223 : (1980) 3 SCR 235] is that the beneficiary, i.e., local authority or company, a cooperative society registered under the relevant State law, or statutory

authority is a person interested to determine just and proper compensation for the acquired land and is an aggrieved person. It flows from it that the beneficiary has the right to be heard by the Collector or the Court. If the compensation is enhanced it is entitled to canvass its correctness by filing an appeal or defend the award of the Collector. If it is not made a party, it is entitled to seek leave of the court and file the appeal against the enhanced award and decree of the Civil Court under Section 26 or of the judgment and decree under Section 54 or is entitled to xxx xxx xxx Moreover in the language of Order 1 Rule 10 CPC, in the absence of the beneficiary who ultimately is to bear the higher compensation, no complete and effectual determination of binding just and proper compensation to the acquired land would be made. So it is concomitantly a proper party if not a necessary party to the proceedings under Order 1 Rule 10 CPC. The denial of the right to a person interested is in negation of fair and just procedure offending Article 14 of the Constitution.

13. The reasons are not far to seek. It is notorious that though the stakes involved are heavy, the Government plead or the instructing officer do not generally adduce, much less proper and relevant, evidence to rebut the claims for higher compensation. Even the cross-examination will be formal, halting and ineffective. Generally, if not invariably the governmental agencies involved in the process take their own time and many a time in collusion, file the appeals after abnormal or inordinate delay. They remain insensitive even if the States (sic Stakes) involved run into several crores of public money. The courts insist upon proper explanation of every day's delay. In this attitudinal situation it would be difficult to meet strict standards to fill the unbridgeable gaps of the delay in filing the appeals and generally

entails dismissal of the appeals at the threshold without adverting to the merits of the hike in the compensation. On other hand if the notice is issued to the local authority etc. it/they would participate in the award proceedings under Sections 11 and 18, adduce necessary and relevant evidence and be heard before the Collector and the court before determining compensation. For instance that without considering the evidence in the proper perspective, the court determined the compensation.

14. If there is no right of hearing or appeal given to the beneficiary and if the State does not file the appeal or if filed with delay and it was dismissed, is it not the beneficiary who undoubtedly bears the burden of the compensation, who would be the affected person? Is it not interested to see that the appellate court would reassess the evidence and fix the proper and just compensation as per law? For instance the reference court determined market value at Rs 1,00,000 while the prevailing market value of the land is only Rs 10,000. Who is to bear the burden? Suppose State appeal was dismissed due to refusal to condone the delay, is it not an unjust and illegal award? Many an instance can be multiplied. But suffice it to state that when the beneficiary for whose benefit the land is acquired is served with the notice and brought on record at the stage of enquiry by the Collector and reference court under Section 18 or in an appeal under Section 54, it/they would be interested to defend the award under Section 11 or Section 26 or would file an appeal independently under Section 54 etc. against the enhanced compensation. As a necessary or proper party affected by the determination of higher compensation, the beneficiary must have a right to challenge the correctness of the award made by the reference court under Section 18 or in appeal under Section 54 etc. Considered from this perspective we are of the

considered view that the appellant-Company is an interested person within the meaning of Section 3(b) of the Act and is also a proper party, if not a necessary party under Order 1 Rule 10 of the CPC. The High Court had committed manifest error of law in holding that the appellant is not a person interested. The orders of the High Court are accordingly set aside.

15. Since the writ petitions filed by the appellants were dismissed, we set aside the orders and direct the High Court to treat them as appeals properly filed under Section 54 of the Act and be dealt with along with the appeals filed by the State pending disposal in the High Court. In the pending references under Section 18, in the Court of the Subordinate Judge, Cuddalore, it is directed to order impleading the appellant as a party-respondent and would give reasonable opportunity to cross-examine the witness examined by the claimants and to examine witnesses on its behalf to rebut the evidence for higher compensation, the appellant is entitled to be heard in support of the determination of just and proper compensation. In this view, the need to implead the appellant as a party-respondent in the pending appeals in the High Court does not arise."

[Underlined to supply emphasis]

31. The principles enunciated in Nevely Lignite (supra)

have been reiterated in the subsequent decisions as

would be indicated herein.

In Union of India v. Special Tehsildar (ZA)

: 1996(2) SCC 332 the Supreme Court allowed the

prayer of the beneficiary to be impleaded as a party in the

regular First Appeals pending before the High Court

following U.P. Awas Evam Vikash Parishad (supra) (paras 10

and 11 of the SCC).

"10. It is an admitted case that the appeals are pending against the order passed by the subordinate court on reference having been made under Section 18 of the Act. The appellants wanted to be impleaded as a party in the said appeals. The proper and the only course which should have been adopted was to have applied to the appellate court for being impleaded as a party. Instead of doing this, writ petitions for writs of certiorari under Article 226 of the Constitution of India were filed. Presumably, it must have been contended that the appellants should have been impleaded as respondents as they were interested parties because the acquisition was being effected at their expenses and for their benefits. Further, no effective relief could, possibly, have been sought by the appellants against the respondents. What was, in fact, desired by the appellants was an order of the Court for being impleaded in the appeals which were pending before the High Court. The collateral proceedings under Article 226 of the Constitution of India could not have been instituted and as already observed, the only remedy which was available to the appellants was to apply, in the pending appeals, to be impleaded as a party by moving an appropriate interim application. The High Court unnecessarily entertained writ petitions and gave a detailed judgment on the question which, in fact, it could not consider when dealing with a petition under Article 226 of the Constitution of India. This question should have been considered only if the proper application was filed in the pending appeals for being impleaded as a party. We may here

observe that while dealing with merits of the case, the High Court did not have the benefit of the judgment of this Court in U.P. Awas Evam Vikas Parishad case [(1995) 2 SCC 326] and the other judgments referred to therein.

11. For the reason that the writ petition for being impleaded as a party in regular first appeals, which were pending, was not a proper remedy, the said writ petitions filed by the appellants have to be dismissed. Such dismissal will not be regarded as affecting the rights of the appellants in applying to the High Court by moving proper applications in the pending appeals for being impleaded as a party. Such applications may, if the appellants desire, be filed within two months and in case, the same are filed, they will be considered and disposed of by the High Court in accordance with law, keeping in view the law laid down by this Court in U.P. Awas Evam Vikas Parishad case [(1995) 2 SCC 326] and the other decisions which had been relied upon therein."

[Underlined to supply emphasis]

32. In Delhi Development Authority vs. Bhola Nath

Sharma (Dead) by L.Rs. and others : (2011) 2 SCC 54 :

AIR 2011 SC 428 both U.P. Awas Evam Vikash

Parishad (supra) and Nevely (supra) were followed and

applied holding that Delhi Development Authority was a

person interested within meaning of S.3(b) therefore,

entitled to participate in proceedings before Land

Acquisition Collector as well as before High Court in the

subsequent appellate proceeding when the High Court

enhanced the compensation at the instance of land

owners. It was observed that the High Court erred in

enhancing compensation without directing the land

owners to implead Delhi Development Authority to enable

it to contest the case, (Paragraphs 25, 29, 32 and 42 to

44 of SCC) :

"25. The definition of the expressions "local authority" and "person interested" are inclusive and not exhaustive. The difference between exhaustive and inclusive definitions has been explained in P. Kasilingam v. P.S.G. College of Technology [1995 Supp (2) SCC 348] in the following words : (SCC p. 356, para 19) "19. ... A particular expression is often defined by the legislature by using the word 'means' or the word 'includes'. Sometimes the words 'means and includes' are used. The use of the word 'means' indicates that 'definition is a hard-and-fast definition, and no other meaning can be assigned to the expression than is put down in definition'. (See Gough v. Gough [(1891) 2 QB 665 (CA)] ; Punjab Land Development and Reclamation Corpn. Ltd. v. Labour Court [(1990) 3 SCC 682 : 1991 SCC (L&S) 71] , SCC p. 717, para 72.) The word 'includes' when used, enlarges the meaning of the expression defined so as to comprehend not only such things as they signify according to their natural import but also those things which the clause declares that they shall include. The words 'means and includes', on the other hand, indicate 'an exhaustive explanation of the meaning which,

for the purposes of the Act, must invariably be attached to these words or expressions'. [See Dilworth v. Commr. of Stamps [1899 AC 99 : (1895-

99) All ER Rep Ext 1576] (Lord Watson);

Mahalakshmi Oil Mills v. State of A.P. [(1989) 1 SCC 164 : 1989 SCC (Tax) 56] , SCC p. 170, para

11.] The use of the words 'means and includes' in Rule 2(b) would, therefore, suggest that the definition of 'college' is intended to be exhaustive and not extensive and would cover only the educational institutions falling in the categories specified in Rule 2(b) and other educational institutions are not comprehended. Insofar as engineering colleges are concerned, their exclusion may be for the reason that the opening and running of the private engineering colleges are controlled through the Board of Technical Education and Training and the Director of Technical Education in accordance with the directions issued by the AICTE from time to time."

xxx xxx xxx

29. Undisputedly, DDA is an authority constituted under Section 3 of the 1957 Act for promoting and securing development of Delhi according to plan and for this purpose it has the power to acquire, hold, manage and dispose of land and other property, to carry out building, engineering, mining and other operations, to execute works in connection with supply of water and electricity, disposal of sewage, etc. Therefore, it is clearly covered by the definition of the expression "local authority".

xxx xxx xxx

32. Section 50(2) represents statutory embodiment of one of the facets of the rules of natural justice. The object underlying this section is to afford an opportunity to the local authority or company to participate in the proceedings held before the

Collector or the court for determining the amount of compensation and to show that claim made by the landowner for payment of compensation is legally untenable or unjustified. This is possible only if the Collector or the court concerned gives notice to the local authority or the company concerned. If notice is not given, the local authority or the company cannot avail the opportunity envisaged in Section 50(2) to adduce evidence for the purpose of determining the amount of compensation. Therefore, even though the plain language of that section does not, in terms, cast a duty on the Collector or the court to issue notice to the local authority or the company to appear and adduce evidence, the said requirement has to be read as implicit in the provision, else the same will become illusory.

xx xx xx

42. In view of the above discussion, we hold that:

(i) DDA falls within the definition of the expressions "local authority" [Section 3(aa)] and "person interested" [Section 3(b)] of the Act;

(ii) DDA was entitled to participate in the proceedings held before the Land Acquisition Collector;

(iii) the failure of the Land Acquisition Collector to issue notice to DDA and give an opportunity to it to adduce evidence for the purpose of determining the amount of compensation payable to the landowners was fatal to the award passed by him;

(iv) DDA was entitled to notice and opportunity to adduce evidence before the Reference Court could enhance market value of the acquired land entitling the respondents to claim higher compensation and, as no notice or opportunity was given to DDA by the Reference Court, the judgments rendered by it are liable to be treated as nullity;

(v) the Division Bench of the High Court also committed serious error by further enhancing the amount of compensation payable to the contesting respondents without requiring them to implead DDA as party-respondent so as to enable it to contest their prayer for grant of higher compensation.

43. In the result, the appeals are allowed. The impugned judgment of the Division Bench of the High Court as also the judgments of the Reference Court are set aside and the matters are remitted to the Reference Court for deciding the two references afresh after giving opportunity of hearing to the parties, which shall necessarily include opportunity to adduce evidence for the purpose of determining the amount of compensation. The Reference Court shall decide the matter without being influenced by the observations contained in the judgment of the High Court and this judgment.

44. In view of the above conclusions, the cross- objections filed on behalf of the Union of India and the Land Acquisition Collector in CAs Nos. 6564 and 6565 of 2001 are disposed of as infructuous. However, as the judgments of the Reference Court and the High Court have been set aside and a direction has been given for fresh determination of the amount of compensation payable to the respondents, the Union of India and the Land Acquisition Collector shall be free to participate in the proceedings before the Reference Court."

[Underlined to supply emphasis]

33. In Vidarbha Irrigation Development Corporation

v. Santosh Janba Warghane and another : (2019)12

SCC 650, the principles laid down in Nevely Lignite

(supra) were reiterated and were applied to hold that the

petitioner Vidarbha Irrigation Development Corporation

being beneficiary of land acquisition is a necessary party

and could file an appeal against award passed by

reference court. The contrary decision of the High Court

was reversed as the High Court had refused to grant

leave to appeal to the Corporation against the award

passed by the reference court.

34. The principles emanating from the judgments

rendered by the Supreme Court indicated and discussed

above can be summed up as follows :

(i) The right conferred by Section 50(2) of the L.A. Act,

1894 carries with it the right to be given adequate notice

by the L.A. Collector as well as the reference Court before

whom the acquisition proceedings are pending.

(ii) The proviso to Section 50(2) only precludes a local

authority from seeking a reference but it does not deprive

the local authority which feels aggrieved by the

determination of the amount of compensation by the L.A.

Collector or by the reference Court to invoke the remedy

under Article 226 of the Constitution as well as the

remedies available under the L.A. Act.

(iii) Even when notice has been served on the local

authority the remedy under Article 226 of the Constitution

would be available to the local authority on grounds on

which judicial review is permissible under Article 226.

(iv) The local authority is entitled to be impleaded as a

party in those proceedings wherein it can defend the

determination of the amount of compensation by the L.A.

Collector and oppose enhancement of the said amount

and also adduce evidence in that regard.

(v) In the event of enhancement of amount of

compensation by the reference Court if the Government

does not file an appeal the local authority can file an

appeal, against the award in the High Court after

obtaining leave of the Court.

(vi) In an appeal in the High Court as well as in the

Supreme Court filed by a person having an interest in land

seeking enhancement of the amount of compensation

awarded by the reference Court the local authority should

be impleaded as a party and is entitled to be served notice

of the said appeal.

(vii) A Company for whom land is being acquired has the

same right as a local authority under Section 50(2) the

principles applicable to a local authority as noted above

would also apply to a Company.

(viii) The operation of Section 3(b) in conjunction with

sub-section(2) of Section 50 of the L.A. Act cannot be

limited within a narrow compass. The right given under

sub-section (2) of Section 50 is in addition to and not in

substitution of or in derogation to all the incidental, logical

and consequential rights flowing from the concept of fair

and just procedure consistent with the principles of

natural justice.

(ix) The beneficiary who undoubtedly bears the burden of

compensation is an interested person within the meaning

of Section 3(b) of the Act and is also a proper party if not a

necessary party under Order 1 Rule 10 of CPC.

It would be error of law if it is held that a beneficiary

Company is not a person interested.

(x) The definition of expression "local authority" and

"person interested" are inclusive and not exhaustive.

Inclusive definition used in a statute enlarge the meaning

of the expression defined so as to comprehend not only

such things as they signify according to their natural

import but also those things which the clause declares

they shall include.

(xi) Denial of the right to be impleaded as a party and to

be heard as a person interested is in negation of fair and

just procedure offending Article 14 of the Constitution of

India.

(xii) Section 50(2) represents statutory embodiment of

one of the facets of the rules of natural justice. The object

underlying this section is to afford an opportunity to the

local authority or company to participate in the

proceedings held before the L.A. Collector or the court for

determining the amount of compensation and to show that

claim made by the landowner for payment of

compensation is legally untenable or unjustified.

35. The intervenors rely on the decision rendered by a

coordinate Bench in Pitambar Sahoo v. Angul-Sukinda

Railway Limited : 2016 (2) ILR Cut. 212, 2016(II)

OLR 27, wherein the coordinate Bench has dealt with the

memorandum of understanding/concession agreement in

extenso to hold that by the agreement entered between the

East coast Railway and the intervenors was liable to

indemnify all actions, suits, claims, demands and

proceedings.

It was held that the one who is under obligation or

liable to indemnify against all actions, suits, claims,

demands and proceedings has a right to be heard in it

which has become more expedient when neither Ministry

of Railway, Govt. of India nor the East coast Railways have

been impleaded as a party to the reference. The decision

of the coordinate Bench has attained finality as it has not

been challenged/altered by any subsequent decision.

Therefore, this Court is not required to go again into

the said issues as in the elaborate order the coordinate

Bench considered the MoU/concession agreement entered

into between the Railways and the petitioner-Company the

scope and interpretation of various clauses of the

MoU/concession agreement. The fact remains that

Pitambar Sahoo (supra) has dealt with the self-same land

acquisition process i.e. the notification for acquisition of

land U/s.4(1) of the LA. Act, 1894 vide Notification

No.26720 dated 07.07.2010 for acquisition of land of the

Angul-Duburi-Sukinda New B.G. Rail Link Project for East

Coast Railways.

36. The reliance of the appellants on Gregory Patrao v.

Mangalore Refinery and Petrochemicals Ltd.: (2022)

10 SCC 461 is of no avail. In Gregory Patrao (supra) it

was held that the allottee of land by the beneficiary for

whom the land was acquired cannot be a person

interested. In the case at hand Eastcoast Railway and/or

the Angul-Sukinda Railway Company are themselves the

beneficiaries/project proponents. They are not

subsequent allottees of the land that was acquired.

37. In the present case East coast Railway and/or the

Angul-Sukinda Railway Company are the project

proponents/beneficiary. To oppose the participation of the

Company in the proceeding before the referral Court the

only argument made by the appellant is that Angul-

Sukinda Railway Company entered into a memorandum of

understanding with the East coast Railway regarding

execution of the project. It is not the case of the

appellants that Angul-Sukinda Railway Company and/or

East Coast Railway are post-acquisition allottee of land to

apply the principle of Gregory Patrao (supra).

38. In considered view of this Court the argument of the

appellants to apply Gregory Patrao (supra) or Satish

Kumar Gupta and others v. State of Haryana and

others: (2017) 4 SCC 760 fails in view of the fact that

East coast Railway and/or Angul-Sukinda Railway

Company are not post acquisition allottees of land. They

are the immediate beneficiaries of land acquisition, they

are the project proponents/requisitioning authority.

Significantly, it has also to be noted that the learned

counsel for the appellants and the learned AGA for the

Special LAO did not point out how by impleading the

project proponent East Coast Railway and/or the S.A. Rly

Company (ASLR Ltd) the appellants-land losers or the

Special Land Acquisition Officer would have been

prejudiced/will be prejudiced in any manner in the

proceeding before the Court below.

The stand taken by the State representing the Special

LAO opposing participation by the Railway/S.A. Rly.

Company defies logic, as a Special LAO can not have any

interest apart from disbursing the amount of

compensation determined or enhanced to be paid as

compensation.

39. It has to be noticed that U.P. Awas Evam Vikash

Parishad (supra) is a constitution Bench decision

rendered by five Hon'ble Judges and Neyvely Lignite

Corporation Ltd. (supra) rendered by three Hon'ble

Judges, still hold the field. The decisions in Gregory

Patrao and Satish Kumar Gupta (supra) rendered by

Bench of two Hon'ble Judges did not differ from earlier

decisions of the constitution Bench or three Judge Bench

and only held that earlier decisions are not applicable to

post acquisition allottees.

It has also to be noticed that the coordinate Bench in

Pitambar Sahoo (supra) has applied the principles laid in

U.P. Awas Evam Vikash Parishad (supra), Neyvely

Lignite Corporation Ltd. (supra) and also considered

Gregory Patrao(supra) and Satish Kumar Gupta

(supra).

Learned AGA though argued regarding applicability

of Gregory Patrao(supra) but it was also not disputed

that East coast Railway being the beneficiary/project

proponent/requisitioning authority was not made a party

before the referral court under section 18 of the L.A. Act.

40. As a result of the above discussions the award

dated 04.07.2014 in L.A. Misc. Case No.126 of 2013

decided by the learned Civil Judge (Senior Division),

Kamakhyanagar is set aside and quashed. The L.A. Misc.

Case No. 126 of 2013 is restored to file for adjudication

afresh. The parties in the present case i.e. the appellants

and the intervenors shall appear before the learned court

of jurisdiction i.e. the learned Civil Judge (Senior Division),

Kamakhyanagar or any other court that could be assigned

the matter. The learned Court shall act upon production of

the website copy of this order.

41. The intervenors shall file application for impletion as

necessary party before the learned court that would be in

seisin of the matter. The learned Court shall allow

application to enable the intervener to participate in the

proceeding. The appellants can appear through their

learned counsel immediately on restoration.

As the matter is remanded to the learned referral

court for adjudication afresh the Court shall afford an

opportunity to the intervenor and/or the railways to file

their written statement regarding enhancement of the

award and shall also allow them to adduce evidence and

produce witness in accordance with law.

42. The learned court shall also issue notice to the

present appellants if they do not appear. The learned

Senior Counsel for intervener refers to the Order 41 Rule

23-A of CPC to submit that date may be fixed before the

learned court below.

It is directed the parties shall appear before the

court on 01.07.2025. The court shall fix a date for further

hearing of the matter. The matter shall proceed on each

date without granting any unnecessary adjournments. It is

also directed that all the parties i.e. appellants,

intervenors, SPV and Railway shall cooperate in the

proceeding in achieving an early disposal.

43. It is submitted by Mr. Panda that the amount as

directed to be enhanced in the judgment dated 04.07.2014

has been deposited by the railways on 29.06.2015.

Learned Senior Advocate appearing for the intervenors

disputes the same. He brings to the notice of this Court

that the said fact is not on record as part of the pleadings

in the appeal nor indicated in the affidavit dated

30.09.2022 filed by the appellants.

In such view of the matter it can not be held that

the Railways have deposited any amount towards the

enhancement of award. However, as alleged, if at all any

amount towards enhanced compensation has been

deposited, the necessary legal consequences shall follow.

In such scenario the learned of Civil Judge (Senior

Division), Kamakhyanagar/the learned Court that would

take up the matter on restoration would do the needful in

accordance with law and as would be expedient, just and

proper restoration.

44. It is further clarified that no part of this judgment

and order remanding the matter for adjudication upon

participation of all the parties shall be treated in any

manner to be expression of any opinion on the merits of

the respective claims and contentions of the parties.

45. The appeal is disposed of accordingly with the

aforesaid directions. In the facts and circumstances of the

case there shall be no order as to costs.

(M.S. Sahoo) Judge

Orissa High Court, Cuttack The 5th May, 2025/dutta

 
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