Holding

A notification under Section 18 of the Wildlife (Protection) Act extinguishes any leasehold right thereafter, rendering the second lease void and precluding any claim for damages, and Section 14 of the Limitation Act does not apply because the earlier writ petition and the damages suit concerned different causes of action.

Summary

M/S Natesan Agencies (a partnership firm) leased 197.36 acres of land from a Mutt for plantation. The land was included in a wildlife sanctuary by a notification under Section 18 of the Wildlife (Protection) Act, 1972 in 1976, after which a second 25‑year lease was purportedly executed in 1978. The State later excluded the land from the sanctuary in 1993, prompting the appellant to claim damages for loss of use. The High Court initially awarded damages, but the Division Bench reversed, holding the second lease was void and no right to claim damages existed. On appeal, the Supreme Court affirmed that the notification barred any further lease rights, the appellant was never dispossessed, and the claim for damages lacked a cause of action; moreover, Section 14 of the Limitation Act did not apply because the earlier writ petition and the damages suit were not the same matter. Consequently, the suit was barred by limitation and dismissed.

Issues considered

The effect of a Section 18 notification under the Wildlife (Protection) Act on leasehold rights.
Whether the second lease executed after the notification conferred any enforceable right against the State.
Whether the appellant was dispossessed or prevented from exercising lawful rights, giving rise to a claim for damages.
The applicability of Section 14 of the Limitation Act to exclude time spent in earlier proceedings.
The relevance of Section 60 of the Wildlife (Protection) Act and Section 34 of the Tamil Nadu Hindu Religious and Charitable Endowments Act to the claim.

Legislation cited

General Clauses Act, 1897s. 21
Land Acquisition Act, 1894
Limitation Act, 1963s. 113, s. 14, s. 72
Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959s. 34
Wildlife (Protection) Act, 1972s. 18, s. 19, s. 20, s. 21, s. 22, s. 23, s. 24, s. 27, s. 28, s. 60

Subjects

wildlife sanctuaryleasehold rightsdamage claimlimitation periodSection 14 Limitation ActSection 18 Wildlife Actprivity of contractstatutory immunity

Judgment

508 [2019]
SUPREME COURT 11 S.C.R. 508
REPORTS [2019] 11 S.C.R.

A M/S NATESAN AGENCIES (PLANTATIONS)
v.
STATE REP. BY THE SECRETARY TO GOVERNMENT
ENVIRONMENT AND FORESTS DEPARTMENT
B (Civil Appeal No. 5397 of 2010)
AUGUST 20, 2019
[ABHAY MANOHAR SAPRE AND
DINESH MAHESHWARI, JJ.]
C Wildlife Life (Protection) Act, 1972 – ss. 18, 19, 20, 21, 22,
23, 24, 27 and 28 – Recovery of damages – Appellant-partnership
firm had taken land on lease from its owner, the Mutt for purpose
of cultivating commercial crops – The registered lease was for a
period of 5 years i.e. 01.07.1972 to 30.06.1977 – The State issued
notification dated 06.03.1976 for the purpose of wild life sanctuary
D
which included the land in question – Thereafter, a fresh long-term
lease for a period of 25 years (from 01.07.1977 to 30.06.2002)
was made – The appellant and the Mutt attempted to get the land in
question excluded from the sanctuary, however were unsuccessful
– Thereafter, award of compensation for acquisition was under
E consideration, but instead of making award, the collector issued
order dated 19.11.1993, excluding the land in question from the
limits of wild life sanctuary – Aggrieved, the Mutt and the appellant
filed writ petition before the High Court, which was allowed by the
Single Judge – However, the Division Bench of the High Court did
not approve the order passed by the Single Judge of the High Court
F
and dismissed the writ petition while leaving it open for the appellant
and the Mutt to approach the appropriate forum in their claim for
damages – The Division Bench also acknowledged the power of
the Government to withdraw from the notification and to refuse an
award under the Land Acquisition Act – Thereafter, on 08.06.1998
G appellant instituted the civil suit for recovery of damages against
the State on the ground that the appellant was debarred from 1976
to 1993 from utilising the land in question – Single Judge of the
High Court decided in favour of the appellant – However, Division
Bench reversed the decree and dismissed the suit – On appeal, held:
H
508
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. 509
TO GOVT. ENVIRONMENT AND FORESTS DEPT.

After issuance of the notification dated 06.03.1976 and inclusion A
of the land in question, there was absolutely no occasion for the
appellant acquiring any further right in the land after expiry of the
term of lease on 30.06.1977 – So, the second lease (i.e. a lease for
25 years) was of no effect – Appellant had acquired no right under
the said second lease and least any right against the State –
B
Therefore, appellant had no right to claim damages – Further,
appellant was not dispossessed and there was nothing on record to
suggest that appellant was prevented by the State from going inside
the forest and collecting usufructs – Thus, there was no basis for
the appellant to maintain an action for damages.
Limitation Act, 1963 – s.14 – Applicability of – Appellant- C
partnership firm had taken land on lease for purpose of cultivation
of commercial crops – A notification dated 06.03.1976 was issued
vide which land in question was acquired for sanctuary – The
appellant and the Mutt attempted to get the land in question excluded
from the sanctuary but were unsuccessful – Thereafter, instead of D
awarding compensation, the collector on 19.11.1993 excluded the
land in question from the sanctuary – Aggrieved, appellant filed
writ petition before the High Court, which was allowed by the Single
Judge – However, Division Bench of High Court dismissed the writ
petition while leaving it open for the Mutt and the appellant to
approach the appropriate forum to claim damages – Division Bench E
also held that it was open for appellant to seek exclusion of the
period during which they were prosecuting the matter in the High
Court – Appellant filed civil suit for recovery of damages, which
was decided in its favour by the Single Judge of the High Court,
however, Division Bench reversed the decree and dismissed the suit F
– On appeal, held: It is settled that for applicability of s.14 of the
limitation Act and exclusion of time spent in earlier proceeding, the
matter-in-issue in both the earlier and the later proceeding must be
the same – In the present case, the appellant in the earlier proceeding
sought exclusion of the land from sanctuary and that State ought to
take the land and pay compensation – Whereas, the claim in the G
present suit was founded on the ground that the plaintiff had
suffered loss due to the proceedings under Wild life (Protection)
Act, 1972 and then, due to exclusion of the subject land from
acquisition – The relief claimed in the present suit and matter-in-
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510 SUPREME COURT REPORTS [2019] 11 S.C.R.

A issue cannot be said to be same as was in issue in the earlier
proceeding – Therefore, s.14 of the Limitation Act not applicable in
the present case.
Dismissing the appeal, the Court
HELD : Claim for damages by the appellant-whether
B sustainable?
1. It is beyond the pale of doubt that in the scheme of the
Wildlife Protection Act 1972, issuance of a notification under
Section 18 thereof has the peculiar and striking effect, of arresting
the accrual of any right in the land comprised within the limits of
C the area specified in such notification except by way of
testamentary or intestate succession (vide Section 20 ibid.). Even
if the appellant was given the land in question on lease for a period
of 5 years from 01.07.1972, that period came to an end on
30.06.1977. On this date of completion of the term of the lease,
D indisputably, the notification under Section 18(1), which was issued
on 06.03.1976, was in operation and it had been the specific
assertion of the appellant that the subject land was included in
the said notification. That being the position, there was absolutely
no occasion for the appellant acquiring any further right in the
land in question after expiry of the term of his lease on 30.06.1977.
E For this reason alone, this Court clearly of the view that the so
called second lease deed, said to have been executed in favour
of the appellant on 20.03.1978 was of no effect. In other words,
the notification under Section 18(1) having been issued on
06.03.1976, no right in the land in question could have been
F acquired except by succession and hence, acquiring of any right
by the appellant in the subject land, said to be covered by the
said notification dated 06.03.1976, by way of a lease, was absolutely
out of question. [Para 16] [543-B; 544-A-C]
2. The entire substratum of the case of the appellant is
G knocked to the ground once it is found that the appellant had
acquired no right under the said second lease dated 20.03.1978
and least any right against the State. Noteworthy it is that in all
the previous litigations, initially seeking exclusion of land in
question from the sanctuary; then seeking compensation for its

H
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. 511
TO GOVT. ENVIRONMENT AND FORESTS DEPT.

inclusion; and then questioning its exclusion, the Mutt had been A
an active participant. In fact, the last petition seeking to question
the exclusion was filed jointly by the Mutt and the appellant.
However, the Mutt has not joined the claim for damages in this
suit. The appellant had no right whatsoever to claim damages
with reference to the alleged cause of action based on the order
B
of exclusion dated 19.11.1993 for the reason that the alleged
second lease was of no effect and the appellant had acquired no
right thereunder. In other words that if at all the exclusion order
dated 19.11.1993 furnished any right to maintain an action against
the State, only and only the Mutt could have maintained such an
action but not the appellant. The suit filed by the appellant is C
liable to be dismissed on this count alone. [Para 16.1] [544-D-G]
3. The Division Bench has rightly observed in the impugned
judgment that there is nothing on record to establish that the
original owner and the plaintiff were prevented from going inside
the forest and collecting the usufructs. In a comprehension of D
the facts on record and the law applicable, it cannot be said that
the plaintiff-appellant was prevented from exercising its lawful
rights in any unlawful manner by the State. Hence, there
appears no basis for the appellant to maintain an action for
damages. [Para 17.2] [545-F-G]
E
Limitation
4. Section 14 is one such provision in the Limitation Act
that provides for exclusion of the time spent in prosecuting one
civil proceeding bona fide in a Court not having jurisdiction, while
computing limitation in any suit where the matter in issue is same F
as that of the earlier proceeding. [Para 21.4] [548-C]
5. In the present case, except the fact that the earlier writ
petition in challenge to the exclusion order dated 19.11.1993 was
civil proceeding and the plaintiff might have been prosecuting
with due diligence, none of the other requirements of Section 14 G
of the Limitation Act are satisfied. The basic requirement, that
the matter in issue in the earlier and the later proceeding ought
to be the same; and both the proceedings, earlier and later, ought
to relate to the same cause of action and for the same relief, is

H
512 SUPREME COURT REPORTS [2019] 11 S.C.R.

A totally missing. Rather, the matter in issue in the earlier
proceeding could well be contradistinguished from the matter in
issue in the present suit. In the said earlier proceeding, the
plaintiff-appellant joined the Mutt to assert that the respondent-
State was not entitled to exclude the land in question from
sanctuary; and that the State ought to take the land and ought to
B
pay compensation as proposed by some of its officers. On the
other hand, the claim in the present suit is founded on the ground
that the plaintiff has suffered loss due to the proceedings under
the Act of 1972 and then, due to exclusion of the subject land
from acquisition. The relief claimed in the present suit and matter
C in issue herein cannot be said to be the same as had been in
issue in the earlier proceeding i.e., the said writ petition against
the exclusion order dated 19.11.1993. Apart from the fact that
the earlier proceeding i.e., the said writ petition was for a different
relief for quashing the exclusion order dated 19.11.1993, it is
also pertinent that the said writ petition was dismissed on merit
D
and not for want of jurisdiction. Applicability of Section 14 of the
Limitation Act is totally ruled out in this case. [Para 21.5]
[551-D-H; 552-A]
Thiru John v. Returning Officer & Ors. (1977) 3 SCC
540 : [1977] 3 SCR 538 ; Sushil Kumar v. Rakesh
E Kumar (2003) 8 SCC 673 : [2003] 4 Suppl. SCR 802 ;
Standard Chartered Bank v. Andhra Bank Financial
Services Ltd. & Ors. (2006) 6 SCC 94 : [2006] 2 Suppl.
SCR 1 ; Union of India v. Hari Krishan Khosla (Dead)
by LRs. (1993) Supp (2) SCC 149 : [1992] 1 Suppl.
F SCR 620 ; Kasturi Lal v. State of U.P. AIR 1965 SC
1039 : [1965] SCR 375 ; N. Nagendra Rao & Co. v.
State of A.P. (1994) 6 SCC 205 : [1994] 3 Suppl. SCR
144 ; Union of India v. Sancheti Food Products Ltd.
(2015) 15 SCC 447 ; Rameshwar Lal v. Municipal
Council, Tonk & Ors. (1996) 6 SCC 100 : [1996] 5
G Suppl. SCR 227 ; Union of India v. Shring Construction
Co. (P) Ltd. (2006) 8 SCC 18 : [2006] 7 Suppl. SCR
273 ; State of A.P. v. Challa Ramkrishna Reddy & Ors.
(2000) 5 SCC 712 : [2000] 3 SCR 644 – referred to.

H
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. 513
TO GOVT. ENVIRONMENT AND FORESTS DEPT.

Yeshwant Deorao v. Walchand Ramchand AIR 1951 A
SC 16 : [1950] SCR 852 ; Madhavrao Narayanarao
Patwardhan v. Ramkrishna Govind Bhanu and Ors. AIR
1958 SC 767 : [1959] SCR 564 ; Zafar Khan and Ors.
v. Board of Revenue, U.P. and Ors. 1984 (Supp) SCC
505 : [1985] SCR 287 – relied on.
B
Kashinath Shankarappa v. The New Akot Cotton
Ginning and Pressing Co. Ltd. AIR 1951 Nagpur 255
– approved.
Case Law Reference
[1977] 3 SCR 538 referred to Para 9 C

[2003] 4 Suppl. SCR 802 referred to Para 9
[2006] 2 Suppl. SCR 1 referred to Para 9
[1992] 1 Suppl. SCR 620 referred to Para 9.1
D
[1965] SCR 375 referred to Para 9.3
[1994] 3 Suppl. SCR 144 referred to Para 9.3
(2015) 15 SCC 447 referred to Para 9.3
[1996] 5 Suppl. SCR 227 referred to Para 9.4
E
[2006] 7 Suppl. SCR 273 referred to Para 9.4
[2000] 3 SCR 644 referred to Para 9.4
[1950] SCR 852 referred to Para 10.3
[1959] SCR 564 relied on Para 21.4.1
F
[1985] SCR 287 relied on Para 21.4.2
AIR 1951 Nagpur 255 approved Para 21.4.4
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5397
of 2010.
G
From the final Judgment dated 26.02.2007 of the High Court of
Judicature at Madras in O.S.A. No.193 of 2002 and O.S.A. No.178 of
2003.
A.K. Ganguli, Sr. Adv., Ms. Barnali Basak, V. Ramasubramanian,
M. Munusamy, Ms. L. Maheswari, Advs. for the Appellants.
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514 SUPREME COURT REPORTS [2019] 11 S.C.R.

A K. Rama Moorthy, Sr. Adv., M. Yogesh Kanna, S. Partha Sarathi,
S. Raja Rajeshwaran, Pushkin Rajkumar, Advs. for the Respondents.
The Judgment of the Court was delivered by
DINESH MAHESHWARI, J.
B Introduction
1. In this appeal by special leave, the plaintiff-appellant, said to be
a partnership firm, has called in question the common judgment and
decree dated 26.02.2007 in O.S.A. Nos. 193 of 2002 and 178 of 2003
(with C.M.P. No. 8947 of 2006) whereby, the Division Bench of High
C Court of Judicature at Madras, while allowing the appeal filed by the
defendant-State and while dismissing the appeal filed by the plaintiff-
appellant, has reversed the judgment and decree dated 15.10.2001, as
passed by the learned Single Judge in C.S. No. 561 of 1998; and has
dismissed the appellant’s suit for recovery of damages.

D 1.1. This matter, arising out of the aforesaid suit for recovery of
damages, carries a peculiar and chequered history of its own, with
assortment of several undisputed actual facts, a few disputed facts, and
varied rounds of litigations. In a brief outline of the subject matter, it may
be noticed that the plaintiff-appellant had allegedly taken certain parcels
of land1 on lease (initially for a period of 5 years in the years 1971-1972
E and later, for a period of 25 years in the years 1977-1978) from its owner
Sri Nanamamalai Jeer Mutt, Nanguneri2 for plantation and co-related
purposes. The case of the plaintiff-appellant has been that by virtue of a
notification dated 06.03.1976, as issued by the Government of Tamil
Nadu, the land in question was proposed to be included in a wild life
F sanctuary under the Wild Life (Protection) Act, 19723 and several
propositions for award of compensation were actively considered by the
authorities concerned, who were also under the mandate of the High
Court to finalise the award of compensation at the earliest. The grievance
of the plaintiff-appellant has been that on one hand, the land in question
was not allowed to be used because of the proposal for its acquisition
G
1
Comprising field Nos. 805/1, 805/3, 805/4, 806, 807,808 & 809 in Kalakkadu Village
and field No. 495 in Malayadipudur Village (Nanguneri Taluk, Tirunelveli District), in
all admeasuring 197.36 acres - Hereinafter referred to as ‘the land in question’ or ‘the
subject land’.
2
Hereinafter referred to as ‘the Mutt’.
3
H Hereinafter referred to as ‘the Act’ or ‘the Act of 1972’.
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 515
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

for wild life sanctuary and on the other hand, no amount of compensation A
was paid; and then, the defendant-respondent chose to exclude the land
in question from the limits of the said wild life sanctuary by way of an
order issued on 19.11.1993. The plaintiff-appellant and the Mutt
challenged the said order dated 19.11.1993 in the High Court by way of
a writ petition. On 13.09.1995, a learned Single Judge of the High Court
B
allowed the writ petition so filed by the appellant and the Mutt but the
Division Bench, in its judgment and order dated 18.09.1997, set aside
the order so passed by the Single Judge and dismissed the writ petition
while upholding the powers of the State Government to withdraw from
the notification in question. The Division Bench, however, left it open for
the writ petitioners ‘to take appropriate civil action for quantifying C
their damages’; and also observed that for the purpose of such an action,
it was open for the writ petitioners ‘to rely on the provisions of the
Limitation Act for excluding the period during which they had been
prosecuting the matter in this Court’. Thereafter, the plaintiff-appellant
instituted the civil suit in question against the defendant-respondent,
D
seeking recovery of damages to the tune to Rs. 1,31,95,000/- together
with interest @ 18% per annum, for having been allegedly deprived of
the use of the land in question on the proposition for acquisition. A learned
Single Judge of the High Court, by way of the judgement and decree
dated 15.10.2001, partly decreed the suit, holding the plaintiff entitled to
a sum of Rs. 86,88,000/- together with interest @ 9% per annum from E
the date of suit until realisation. However, in the appeal preferred by the
defendant-State, the Division Bench of the High Court found no case
for award of any damages to the plaintiff and, by its impugned judgment
and decree dated 26.02.2007, reversed the decree of the learned Single
Judge and dismissed the suit. Hence, the plaintiff-appellant has preferred
F
this appeal.
The relevant background and factual matrix
2. The relevant background and factual aspects of the matter
could be briefly summarised as follows:-
2.1. The appellant, a partnership firm, had taken the land in question, G
admeasuring 197.36 acres, on lease from its owner, the Mutt, for the
purpose of cultivating commercial crops such as tea, coffee and
cardamom over 80 acres of the total available land. The appellant has
alleged that the land in question was given on lease on 15.11.1971 but
H
516 SUPREME COURT REPORTS [2019] 11 S.C.R.

A the registered lease deed in that regard was executed by the Mutt on
01.07.1972, for a period of 5 years i.e., from 01.07.1972 to 30.06.1977.
2.2. By G.O.Ms. No. 183 dated 06.03.1976, issued under Section
18(1) of the Act of 1972, the Government of Tamil Nadu stated its approval
of the proposal of Chief Conservator of Forests to notify Kalakkadu
B Reserve Forest in Tirunelveli District as a sanctuary for the protection
and development of wild life therein. This allegedly included the aforesaid
197.36 acres of land leased to the appellant.
2.3. On 23.03.1975 and on 17.09.1976, the appellant applied for
clear felling of trees in 10 acres of land out of the said 197.36 acres but
C excluding the 80 acres already under plantation. However, the District
Collector, by his communication dated 16.11.1976, refused to grant such
a permission to the appellant on the grounds that the land in question
was demarcated under the said notification for the purpose of wild life
sanctuary; and felling of trees may affect the soil conservation and
moisture conservation measures in the locality.
D
2.4. Thereafter, on 14.07.1977, the District Collector issued a
proclamation under Section 21 of the Act of 1972 specifying the limits of
the sanctuary and requiring any person having any right to file the claim
in Form No. 8 under the Wild Life Protection (Tamil Nadu) Rules, 19754.
The appellant would submit that the land in question was not included in
E this proclamation dated 14.07.1977.
2.5. The appellant would further submit that when the land in
question was not included in this proclamation dated 14.07.1977 and the
lease period under the aforesaid lease deed dated 01.07.1972 had expired
on 30.06.1977, the Mutt was requested to execute a long-term lease in
F favour of the appellant for developing the plantation in a better manner.
According to the appellant, on 20.03.1978, the Mutt granted a fresh
long-term lease of the land in question in its favour for a period of 25
years (from 01.07.1977 to 30.06.2002) after obtaining permission of the
Commissioner, Hindu Religious and Charitable Endowments and after
G consultation with the District Collector. We shall refer to the question
relating to the alleged permission of the said Commissioner hereafter a
little later.
2.6. Continuing with the factual matrix, it is noticed that on
28.08.1978, the Collector issued another proclamation under Section 21
4
H Hereinafter referred to as ‘the Rules of 1975’
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 517
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

calling upon the persons claiming any right in or over the land covered A
thereunder to prefer a written claim within two months under the Rules
of 1975. On 31.08.1978, the Collector issued the same proclamation in
Tamil language, while also stating that the earlier notification dated
14.07.1977 was cancelled. According to the appellant, the land in question
came to be included within the proposed sanctuary only under these
B
notifications issued in the year 1978.
2.7. After the notifications aforesaid, various proceedings and
exchange of communications took place where on one hand, the appellant
and the Mutt made several attempts to get the subject land excluded
from the proposed sanctuary and on the other hand, on 24.06.1984, the
appellant filed a written statement in the award inquiry along with the C
claim in Form No. 8 under the Rules of 1975, claiming compensation to
the tune of Rs. 41,36,866/-. The authorities concerned also exchanged
various inter-departmental communications for the purpose of assessment
of the amount of compensation. All these proceedings and
communications need not be elaborated herein but it may be noticed that D
on 01.08.1985, the Collector rejected an application filed by the appellant
for registration of Cardamom Estate in the land in question on the ground
that the land was to be acquired for the purpose of setting up of the wild
life sanctuary. Thereafter, on 23.03.1990, the Collector addressed a
communication to the Special Commissioner and the Commissioner of
Land Administration that the compensation together with solatium E
and interest for the land belonging to the Mutt was estimated at
Rs. 72,98,661/-. On 03.12.1990, the said Special Commissioner reduced
the total estimated compensation to Rs. 65,06,453/- and requested the
Government to pass appropriate order as regards the application of the
relevant provisions of the Land Acquisition Act, 18945 to the present F
case. Further to this, on 05.03.1991, the Principal Chief Conservator of
Forests informed the concerned Secretary to the Government about the
expected liability of interest in relation to the award to be made in relation
to the land in question.
2.8. While the proceedings aforesaid remained pending but no G
award had been made, the Mutt chose to challenge the proposal for
acquisition of the land in question by way of a writ petition (W.P. No.
685 of 1991) before the High Court. The present appellant was arrayed

5
Hereinafter referred to as ‘the Act of 1894’ H
518 SUPREME COURT REPORTS [2019] 11 S.C.R.

A as the fourth respondent in that writ petition. The respondent-State stated
in its counter affidavit in the said writ petition, inter alia, that ‘the State
Government had applied their mind to the requirement of making
publication under Section 18 of the said Act and found it was valid
and had effected the publication in question under Section 18 of
the Central Act 53 of 1972’; and that it was ‘not possible to exclude
B
the lands of the petitioner from the limits of the Sanctuary. It will
defeat the very purpose of creating the Sanctuary’.
2.9. The said writ petition filed by the Mutt was, however, dismissed
by a learned Single Judge of the High Court on 13.07.1991, inter alia,
with the observations that Section 11-A of the Act of 1894 did not apply
C to the proceedings in question and that if an illusory compensation was
awarded, the writ petitioner shall have the right to challenge the same.
The Mutt also preferred an intra-court appeal but, on 20.01.1992, the
same was dismissed as withdrawn by the Division Bench with the direction
to the Collector to expedite the proceedings for making the award of
D compensation.
2.10. Thereafter, on 09.03.1992, a fresh notice for award inquiry
was issued by the Collector under Sections 9(3) and 10 of the Act of
1894. In response, the Mutt sent a letter claiming compensation to the
tune of Rs. 92,81,346/-. On the other hand, it appears from the submissions
E made that on 30.03.1992, the appellant filed the statement claiming
compensation to the tune of Rs. 1,09,60,000/- for the market value of
coffee, cardamom and tea plantations; Rs.96,00,000/- towards anticipated
development of cardamom; and another Rs. 96,400/- towards the cost
of the building constructed. The appellant also claimed 30% solatium
and 12% p.a. interest from the date of notification until the date of award
F and 15% p.a. future interest on the total amount of compensation.
2.11. On 16.04.1992, the award proceedings were completed and
a draft award was forwarded by the District Revenue Officer to the
Special Commissioner. However, since the respondent did not take further
steps for making the award, another writ petition, being W.P. No. 6931
G of 1993, was preferred, jointly by the Mutt and the appellant, seeking
directions for early making of the award. This writ petition was disposed
of by a learned Single Judge of the High Court on 11.08.1993 with

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directions for making the award within four weeks from the date of A
receipt of the order6.
2.12. After passing of the aforesaid order dated 11.08.1993, when
the matter was being processed by the authorities concerned, the Chief
Conservator of Forests (WL) and Chief Wildlife Warden, suggested on
25.08.1993 that the proposed acquisition of the land in question may be B
dropped in view of the huge cost involved and acquisition of the land in
question being not necessary. With reference to these facts, an application
was moved on behalf of the respondent before the High Court on
21.09.1993, seeking six weeks’ further time to enable the Commissioner,
Land Administration to issue suitable directions to the Collector. It appears
that on such an application, the High Court, by its order dated 26.10.1993, C
extended the time for making the award.
2.13. Thereafter, on 19.11.1993, the Collector, Tirunelveli, in the
purported invocation of the powers under clause (a) of sub-section (2)
of Section 24 of the Act of 1972, excluded the land in question from the
limits of the wild life sanctuary. This order had the effect of releasing D
the land in question from the proposed acquisition and thereby, obviating
the necessity of making the award of compensation.
2.14. The aforesaid order dated 19.11.1993, as issued by the
Collector, Tirunelveli, had been the bone of contention in this matter.
According to the appellant, the Collector having earlier taken the decision E
to acquire the land in question, compensation was required to be paid;
and the authorities passed on dictates to the Collector to issue the said
order dated 19.11.1993 only in order to circumvent the order passed by
the High Court. The appellant has particularly referred to the letter dated
12.11.1993 by the Deputy Secretary, Forest Department to the Special F
Commissioner, wherein it was stated that the proposed wild life sanctuary
could not meet the exorbitant cost of land acquisition and this acquisition
6
The learned Single Judge directed in the order dated 11.08.1993 thus:
“Hence I direct the competent authority, viz., Special Commissioner and
Commissioner for Land Administration to take into consideration the valuation
proposals sent in Collector’s Office reference K2/1498/83 dated 20.6.1990 and
G
12.9.1990, and approved by the Special Administration and due representations
of the 2nd petitioner dated 10.7.92 and the representations of the 1st petitioner
dated 19.10.1992 and further representations of the 1 st petitioners, if any, and
the proposal of the District Collector Tirunelveli, the 2 nd respondent herein and
pass appropriate orders within four weeks from the date of receipt of this order
from the Court.” H
520 SUPREME COURT REPORTS [2019] 11 S.C.R.

A was not required on priority. It is submitted that pursuant to this
communication dated 12.11.1993, the Special Commissioner sent the
letter dated 17.11.1993 to the Collector, Tirunelveli to exclude the land in
question from the limits of the proposed sanctuary under clause (a) of
sub-section (2) of Section 24 of the Act of 1972; and thus the Collector
issued the questioned order dated 19.11.1993.
B
2.15. The said order dated 19.11.1993 was challenged jointly by
the Mutt and the appellant by way of a writ petition in the High Court,
being W.P. No. 21721 of 1993. The present appellant also filed a contempt
petition (No. 340 of 1994) complaining of disobedience of the orders
earlier passed by the High Court. On 13.09.1995, a learned Single Judge
C of the High Court allowed the writ petition and quashed the said order
dated 19.11.1993; and also held the officers concerned guilty of contempt
and imposed a fine of Rs. 1,000/- on each of them. However, the order
so passed by the learned Single Judge was questioned by the respondent-
State by way of an intra-court appeal, being WA No. 1041 of 1995, that
D was allowed by the Division Bench of the High Court by its judgment
dated 18.09.1997 but with several remarks and observations against the
respondent-State and while leaving it open for the writ petitioners to
approach the civil Court for recovery of damages.
2.16. The observations made by the Division Bench in its judgment
E dated 18.09.1997 have formed the basis of the claim made by the appellant
in the civil suit leading to this appeal. Having regard to the subject matter
of this appeal and the questions involved, pertinent it would be to take
note of the observations and findings in the judgment dated 18.09.1997
in the requisite details.

F 2.16.1. In its judgment dated 18.09.1997, the Division Bench in
the first place observed that when the Collector had already taken the
decision to acquire the land in question and to pay compensation, there
was no occasion to exercise the power under clause (a) of sub-section
(2) of Section 24 of the Act of 1972. The Division Bench also rejected
the argument of the Government Pleader that withdrawal from the
G proceeding could be sustained in terms of Section 48 of the Act of 1894.
Nevertheless, the Division Bench was of the view that Section 21 of the
General Clauses Act, 18977 was applicable and could have been invoked
by the Government. However, even in this regard, the Division Bench

7
H Hereinafter referred to as ‘the General Clauses Act’.
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 521
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

observed that the entire action of the officers of the Government, right A
from conceiving the project in question to the late stage backing out, had
been thoughtless, casual and perfunctory.
2.16.2. Even while making such remarks that the impugned actions
had been thoughtless and the Government must suffer the consequences,
the Division Bench of the High Court observed that the appellant and B
the Mutt had no right to insist on the Government to complete the
acquisition proceedings and to proceed with the project as a sanctuary.
After such remarks and observations, the Division Bench acknowledged
the power of the Government to withdraw from the notification and to
refuse an award under the Act of 1894. However, the Division Bench
further proceeded to observe that the Mutt and the appellant had a valid C
case for claiming damages but in that regard, the damages suffered
shall have to be proved in the Court of law. It was, thus, left open for the
Mutt and the appellant to take appropriate civil action for quantifying the
damages. The Division Bench also left it open for them to seek exclusion
of the period during which they had been prosecuting the matter in the D
High Court.8
2.16.3. With the aforementioned observations and findings, the
Division Bench of the High Court concluded that the decision of the
8
These observations of the Division Bench of the High Court had been as under: -
20. We do not propose to say that the Government is blemishless. On the E
otherhand, the Government had acted thoughtlessly both at the stage of the
notification under section 18 and at the stage of withdrawal from the notification.
The Government must suffer the consequences of their action, both issuing
declaration under section 18 and in committing inordinate delay in passing the
award and ultimately withdrawing from the notification. But the damages
suffered by the respondents on account of the Government’s acts of commission
and omission has to be proved in a Court of law. The respondents have no F
doubt, a valid case against the Government for their acts of commission and
omission. The question is what is the actual remedy of the respondents. The
maxim ubi jus ibi remedium (where there is a right, there is a remedy), is no
doubt applicable on the facts of the present case. But, we are only pointing out
that the remedy of the respondents is elsewhere. They have no right to insist on
the Government completing the acquisition proceedings and proceeding with
the project as a sanctuary. On the facts and circumstances of the case, we
G
concede the power of the Government to withdraw from the notification and
refuse to pass an award under the Land Acquisition Act. We keep it open to the
respondents to take appropriate civil action for quantifying their damages and
for this purpose, it is certainly open to them to rely on the provisions of the
Limitation Act for excluding the period during which they had been prosecuting
the matter in this Court.” H
522 SUPREME COURT REPORTS [2019] 11 S.C.R.

A Government to exclude the land in question from the limits of proposed
sanctuary was sustainable by virtue of Section 21 of the General Clauses
Act and, while allowing the appeal, proceeded to dismiss the writ petition
while leaving it open for the writ petitioners, including the present
appellant, to agitate their rights in the appropriate forum. In view of this
decision, the contempt proceedings were dropped.9
B
2.17. In order to complete the chronicle of background, it may
also be noticed that the present appellant alone preferred a petition for
Special Leave to Appeal before this Court against the said judgment
dated 18.09.1997, which was dismissed in limine on 23.02.1998.
C 2.18. Only after conclusion of the aforesaid litigation with dismissal
of the petition for Special Leave to Appeal by this Court on 23.02.1998
that the appellant took up the action in civil Court for recovery of damages.
2.19. Before dilating on the facts and events relating to the action
for recovery of damages, it would be apt to summarise the material
D facts and features noticed in the preceding paragraphs. Put in a nut-
shell, the sum and substance of the matter is that the land in question,
9
The Division Bench concluded on the matter as follows: -
“23....We are construing the letter of the Government in Letter No. Ms. No. 377
EDF dated 12.11.1993 and the consequential order of the Special Commissioner
and Commissioner of Land Administration in R.O. C. No. h2/34854/92 dated
E 17.10.1993 as constituting the decision of the Government to withdraw from the
inclusion of the lands of the respondents in the sanctuary, and the consequential
acquisition of the said lands. We are exercising our discretionary powers under
article 226 of the Constitution of India
in holding that in the above two letters, the Government had taken a categorical
decision to withdraw from the notification and the consequential acquisition.
Therefore, we do not propose to take the order of the Collector dated 19.11.1993
F for any purpose, as it simply follows the directions of the Government. Since the
notification and declaration was issued by the State Government under section
18 of the unamended Wild Life Protection Act, it is the government and the
government alone which can cancel
or modify the notification by invoking the power under section 21 of the General
Clauses Act. It is in this view of the matter, we uphold the decision of the
Government to exclude 197.36 acres of land, belonging to the respondents and
G another extent of 148.55 acres from the limits of the proposed sanctuary. as
perfectly in order and within the powers of the Government. Consequently, the
prayer sought for in W.P. No. 21721 of 1993 cannot be granted and the writ
petition will stand dismissed. The appeal is
allowed in the above manner, leaving it open to the respondents to agitate their
rights in an appropriate forum. Contempt appeal No. 6 of 1995 is also allowed.
H There will be no order as to costs.”
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 523
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

said to have been taken by the plaintiff-appellant on lease from the Mutt, A
was proposed to be included in the sanctuary for wild life by virtue of
the notification dated 06.03.1976; and the attempts on the part of the
Mutt and the appellant to get the land in question excluded from the
sanctuary did not meet with success. Though the matter relating to the
award of compensation for acquisition of the subject land was considered
B
by the authorities concerned, who were also directed by the High Court
to finalise the award at the earliest but, instead of making any award, the
Collector issued the order dated 19.11.1993, excluding the land in question
from the limits of wild life sanctuary. The Mutt and the appellant now
felt aggrieved of the proposition for such exclusion of the subject land
from the limits of the wild life sanctuary and again approached the High C
Court by way of writ petition against the said order dated 19.11.1993.
On 13.09.1995, a learned Single Judge of the High Court allowed the
writ petition so filed by the Mutt and the appellant. However, the Division
Bench of the High Court, in its judgment dated 18.09.1997, did not approve
of the order so passed by the learned Single Judge and dismissed the
D
writ petition while leaving it open for the Mutt and the appellant to
approach the appropriate forum in their claim for damages.
Civil suit for recovery of damages
3. Though having failed in its attempt to get the aforesaid order
dated 19.11.1993 annulled but, with reference to the observations made E
and the liberty granted by the Division Bench of the High Court in its
judgment dated 18.09.1997, the appellant took up the action for claiming
damages from the respondent-State. In this regard, the appellant served
a notice under Section 80 of the Code of Civil Procedure on 01.03.1998
that did not evoke any response. Hence, the appellant instituted the civil
suit for recovery of damages on 08.06.1998. The civil suit was founded F
on the facts referred hereinabove and on the grounds that from the first
day of the proceedings starting in the year 1976 and until dropping of the
same in the year 1993, the appellant was debarred from utilising the land
in question; and that due to pendency of litigation in the High Court from
the year 1993 and until 18.09.1997, the appellant could not file the suit G
for damages. It was also submitted that in view of the rights specified,
and the liberty given, by the Division Bench of High Court, the suit was
maintainable and was not barred by limitation.
3.1. As regards the measure and quantum of damages, the
appellant referred to the alleged loss of earnings @ Rs. 2.31 lakhs per H
524 SUPREME COURT REPORTS [2019] 11 S.C.R.

A annum on the basis of valuation worked out in the award inquiry for the
very same land. The appellant also claimed interest at the rate of 18%
per annum and yet further claimed the cost of re-plantation and rearing
operations as also the loss of profit for a period of 3 years that was likely
to be taken for the crops to yield the fruits. The appellant claimed the
total loss of earning for 22 years from 06.03.1976 and other components
B
of loss as follows: -
Rs.
“(a) Total on loss for 22 years
(Rs.2.31 lacs xx 22 years) 50.82 lakhs
C (b) Interest on loss of income for
22 years 70.13 lakhs
(c) Cost of replantation and rearing
operations for 3 years @ Rs.5000/-
per acre for 75.52 acres (restricted to) 7.00 lakhs
D
(d) Repairs to Factory/Office and Labour
Sheds to make it fit for use
(restricted to) 1.00 lakhs
(e) Loss of Revenue for three years
(Rs.2.00 lakhs x 3 years)
E
(the period that would be taken for
re-planting the rearing plantation
and to put them to yield)
(restricted to) 3.00 lakhs
———————
F Total 1,31,95,000/-.”
4. In the written statement, it was contended on behalf of the
defendant-respondent that the plaintiff was not entitled to claim any
damages; that there was no agreement between the plaintiff and the
defendant; and the defendant did not cause any loss to the plaintiff. It
G was alleged that no private land was included in the notification under
Section 18(1) of the Act of 1972 but Form No. 8 was filed by the appellant
claiming compensation and thereby, voluntarily offering the private land
for acquisition. It was alleged that subsequent to the offer so made, a
proposal was sent to acquire the private property lying within the proposed
sanctuary area but the proposal was dropped as the expenditure to the
H
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 525
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

Government was an exorbitant one. It was also contended that in the A
absence of any express acceptance from the defendant to acquire the
land, there was no completed contract between the plaintiff and the
defendant; and when by way of the said letter dated 17.11.1993, the
Collector, Tirunelveli was requested to drop the proposal of acquiring
the private land and the Collector indeed dropped the proposed action,
B
there was no actual acquisition of the land in question.
4.1. It was also contended by the defendant-respondent that the
action of the Government in dropping the proposal to acquire did not
affect the status of the land in question; that the claim of the plaintiff
that he could not realize anything from the lands was not correct; and
that the notification for proposed sanctuary could not have affected the C
possession and enjoyment of the land by the plaintiff. It was asserted
that the subject land was never taken over or controlled by the Forest
Department and neither the owner nor the lessee was prevented from
enjoyment of the property, who remained in actual possession and
enjoyment thereof. It was yet further submitted that even if the subject D
land was assumed to be under the control of Forest Department, the
plaintiff had no right or claim against the defendant for the reason that
the plaintiff was only a lessee of the Mutt and there was no privity of
contract between the plaintiff and the defendant. The defendant-
respondent submitted that the land owner had not come forward with
any claim since there was no loss caused to them; and the plaintiff, if E
having any right under the law, was required to seek his remedy only
with the lessor and not against the defendant.
4.2. The defendant-respondent also submitted that even if the
land in question was notified, the cause of action, in any case, accrued to
the plaintiff on 19.11.1993 and, therefore, the suit for damages was barred F
by limitation. The defendant further submitted that the Division Bench,
while allowing the writ appeal (by its judgment dated 18.09.1997), though
had kept it open to the plaintiff to rely on the provisions of the Limitation
Act, 196310 for excluding the period during which the matter was pending
in the Court but, the Limitation Act was of no assistance to the plaintiff G
inasmuch as what was being prosecuted earlier was a challenge to the
proposal of acquisition and then for compensation for the alleged take-
over of the land in question whereas, what was being prosecuted in the
suit was the claim for damages for the alleged loss of earnings from
10
Hereinafter referred to as ‘the Limitation Act’.
H
526 SUPREME COURT REPORTS [2019] 11 S.C.R.

A 06.03.1976. The defendant also raised the objections of want of territorial
jurisdiction and non-joinder of necessary parties.
5. On the pleadings of parties, the Trial Court framed the following
issues for trial:-
“1. Whether this court has territorial jurisdiction to try this
B suit?
2. Whether the suit is barred by limitation?
3. Whether the suit is bad for non-joinder of necessary
parties?
C 4. Whether the suit land was notified as forming part of the
Wildlife Sanctuary?
5. Whether the plaintiff is entitled to damages and if so what
amount?
6. Whether the plaintiff is entitled to interest?
D
7. Whether there is any privity of contract between the parties
to claim compensation?
8. To what relief?”
6. It appears that in the trial, partner of the plaintiff was examined
E as PW-1 and the documents Exhibits P-1 to P-42 were marked through
him. The defendant did not adduce any oral or documentary evidence.
The Single Judge decreed the suit
7. After having heard the parties, the learned Single Judge of
F High Court, dealing with original suit, proceeded to determine the issues
by way of the judgment dated 15.10.2001.
7.1. The learned Single Judge rejected the objections relating to
the territorial jurisdiction and non-joinder of necessary parties and decided
issue Nos. 1 and 3 in favour of the plaintiff. As regards issue No. 2
relating to limitation, the learned Judge referred to the observations of
G
the Division Bench in the judgment dated 18.09.1997 and to the
contentions of the parties and then, observed that he would disagree
with the defendant and had no hesitation in holding that the suit was filed
within time. Hence, issue No. 2 was also decided in favour of the plaintiff.
7.2. The learned Single Judge, thereafter, took up issue Nos. 4
H and 5 together for determination and, in this regard, referred to the past
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 527
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

proceedings commencing from the notification dated 06.03.1976 and A
various propositions for assessment of the amount of compensation for
the proposed acquisition. The learned Judge extensively referred to the
rival contentions and to a few documents, including the letter dated
28.05.1987 (Ex. P-17) by the Collector, Tirunelveli to the Deputy Secretary
to the Government stating that the land in question was developed from
B
1972 to 1978 and cultivated with plantation crops but after the area was
declared as wild life sanctuary, normal plantation was not allowed due to
the land acquisition proposals. The learned Judge also referred to the
letter dated 23.03.1990 (Ex. P-21) by the Collector, Tirunelveli to the
Special Commissioner and to the proceedings dated 03.12.1990 (Ex. P-
22) of the Special Commissioner which were carried out for the purpose C
of assessment of the amount of compensation. Ultimately, the learned
Judge accepted the submissions of the plaintiff that loss of earnings was
calculated by the officers concerned at the rate of Rs. 2.31 lakhs per
annum; and held the plaintiff entitled to this amount for 22 years i.e., a
sum of Rs. 50.82 lakhs. The learned Judge though rejected the other
D
claims of the plaintiff but allowed another sum of Rs. 1 lakh towards
repairs of factory office. In this manner, the plaintiff-appellant was held
entitled to the total sum of Rs. 51.82 lakhs towards damages. On issue
No. 6, the learned Judge awarded another sum of Rs. 35.06 lakhs being
interest @ 6% p.a. from 06.03.1976 to 18.09.1997 and also held the
plaintiff entitled to the interest @ 9% p.a. from the date of filing until E
realisation. Issue No. 7 was separately decided in favour of the plaintiff
in view of the findings on issue Nos. 4 and 5.
The Division Bench reversed the decree and dismissed
the suit
8. Being aggrieved by the decree so passed by the learned Single F
Judge for damages and interest, the defendant-respondent preferred an
appeal, being OSA No. 193 of 2002, before the Division Bench of the
High Court. On the other hand, the plaintiff-appellant also felt aggrieved
by the part of decree of the learned Single Judge insofar as its claim was
not accepted and preferred another appeal, being OSA No. 178 of 2003. G
Both these appeals and interlocutory application therein, being C.M.P.
No. 8947 of 2006, were considered and decided together by the Division
Bench in its impugned judgment and decree dated 26.02.2007.
8.1. The Division Bench of the High Court took note of all the
relevant background aspects (as noticed hereinbefore) and the rival H
528 SUPREME COURT REPORTS [2019] 11 S.C.R.

A contentions and thereafter analysed the matter with reference to the
law applicable. In this regard, the Division Bench in the first place
extracted in extenso the relevant provisions of the Act of 1972 and
examined two core questions: (1) as to whether the appellant could have
acquired any right qua the land in question on the basis of the alleged
second lease for 25 years after issuance of the notification under Section
B
18(1) of the Act; and (2) if the appellant at all had any right in the land in
question, as to whether the same had been infringed in the manner that
it may give any cause to claim damages. The Division Bench also referred
to the evidence adduced on record and answered the material questions
against the plaintiff-appellant, inter alia, in the following:-
C “21. In the present case, the facts which have been hitherto
culled out, indicate that initially there was a declaration of a
sanctuary under Section 18(1) of the Act, but the process of
acquisition was aborted. Section 20 contemplates that after
issuance of such notification under Section 18, “... no right
D shall be acquired in, on or over the land comprised within
the limits of the area specified in such notification, except by
succession”. As already analysed the provisions indicate that
mere issue of notification under Section 18 does not debar
the owner of any property in exercising his normal rights and
similarly such right can be exercised by his heir. The embargo
E envisaged under Section 20 is relating to inter vivos transfer
of any right in or over the land comprised within the area.
Therefore, the plaintiff as an existing lessee for five years
and the original owner were as such not debarred from
exercising any right. However, it is apparent from the admitted
F facts that the subsequent lease for 25 years was executed in
favour of the plaintiff after issuance of notification under
Section 18. Since the plaintiff claims right on the basis of
subsequent lease for 25 years, which was admittedly executed
by the original owner after notification under Section 18, it
is doubtful whether the plaintiff had acquired any right at
G that time, at least against the State. At any rate, even assuming
that the plaintiff had any right as a lessee, there was no
statutory embargo debarring the plaintiff from exercising his
rights.
*** *** ***
H
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 529
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

24. In the present case, there is nothing on record to indicate A
that in respect of the area claimed, the plaintiff and the
original owner had ever been dispossessed and prevented
from exercising any right, save and except the refusal to grant
permission for felling the trees way back in 1976. It is of
course true that there are several correspondence on record
B
which indicate that for ascertaining the compensation, the
Collector and other authorities were asking for allotment of
higher amount for the purpose of finalising the compensation
and award, but, there is no material on record to indicate that
the award proceedings, so far as the plaintiff and the land
owner are concerned, had ever been finalised. C
25. It is of course true that the letter Ex.P-17 dated 28.5.1987
written by the Collector to the Deputy Secretary to the
Government recited that the lands of the plaintiff were declared
as wild life sanctuary and its development activities had been
stopped. However, this communication between two D
functionaries of the Government should not be construed as
denying the original owner or the plaintiff any particular
right. There is nothing on record to indicate that because of
various steps taken under the Act, the original owner and the
plaintiff were prevented from going inside the forest and from
collecting the usufructs. If under any misunderstanding E
relating to scope of the notifications and declarations already
issued the plaintiff stopped its activities, it was the plaintiff ’s
own misfortune and it cannot be said that the plaintiff was
prevented in any unlawful manner by the State in exercising
its lawful right. Merely because various correspondence F
indicate that the lands were covered under notification issued
under Section 18, it cannot be said that the original owner
and the plaintiff had been deprived. The only direct document
relating to refusal to grant clear fell trees within 10 acres has
already been analysed and that factor does not give rise to a
cause of action for claiming an astronomical sum as claimed G
by the plaintiff. Since the plaintiff was not allowed to fell the
trees, it can be well concluded that the trees are still available
to be exploited after the area was excluded. However, from
the above document alone, which was inter-departmental
H
530 SUPREME COURT REPORTS [2019] 11 S.C.R.

A communication made in the year 1987, it cannot be construed
that the original owner and the plaintiff had in fact been
prevented from exercising its rights.
*** *** ***
27. Ex.P-14 relates to the prayer for clear felling trees in 10
B acres. That cannot form basis for claiming loss at the rate of
Rs.2,31,000/- per annum for 22 years. In the various writ
petitions and the writ appeals, which had been filed, we do
not find any allegation that at any point of time the original
owner and the plaintiff had been prevented from exercising
C their normal rights. We fail to understand as to why the
plaintiff should be paid compensation by way of damages
unless there is any unlawful act on the part of the defendant.
Merely because the plaintiff misunderstood the scope of
declaration under Section 18 of the Act or the fact that some
enquiries were pending, is not a ground to award damages.”
D
8.2. The Division Bench of the High Court also examined the
purport and effect of the previous judgment dated 18.09.1997 and
pointed out that the observations therein did not mean that the rights
and liabilities of the parties had been decided and only quantification of
the amount of damages was to be made. The Division Bench held, in
E the following, that the plaintiff-appellant, having failed to plead and
prove the specific case of unlawful activity on the part of the State or
its officials, was not entitled to recover any amount as damages:-
“28. It is no doubt true that in the Division Bench decision,
while deciding the writ appeal in favour of the Government,
F certain observations have been made indicating that it is open
to the aggrieved party to seek for adequate compensation.
Such observations cannot, however, construed to mean that
rights and liabilities of the parties had been decided and only
quantification is to be made. On the other hand, it was only
G made clear that even though the Government cannot be forced
to acquire the land for the purpose of sanctuary, it was open
to the aggrieved party to pursue his remedy obviously in
accordance with law. If the person sustains any injury on
account of any unlawful activity of the State or any of its
official, it was for the plaintiff to clearly allege and prove
H
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 531
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

such unlawful activity in order to claim any compensation by A
way of damages. Obviously the plaintiff does not have right
to receive any compensation as envisaged under the Act. If
he has to receive any amount on account of any unlawful
activity on the part of the State or its official, a specific case
has to be made out. In our considered opinion, in the present
B
case, no such specific case has been pleaded, far less proved.”
8.3. Next, the Division Bench of the High Court referred to the
question of limitation and, while referring to Section 14 of the Limitation
Act, indicated its prima facie doubt if the period during which the litigation
remained pending in the High Court could be excluded but left the matter
at that, essentially for the reason that the claim of the plaintiff had been C
rejected on merits. The Division Bench observed:-
“29…. Now the plaintiff is claiming damages on account of
the fact that the area has been excluded from the sanctuary
and thereby it has sustained damages, obviously the cause of
action arose on that date i.e., 19.11.1993. The writ petition, D
which was filed was for quashing such order, was obviously
for a different relief. The writ petition was dismissed on merit
and not for want of jurisdiction. Prima facie we have doubt
as to whether the period during which such litigations
remained pending in the High Court can be excluded under E
Section 14 of the Limitation Act. However, since we have
negatived the claim of the plaintiff on merits, it is not necessary
to delve further into such question.”
8.4. Lastly, the Division Bench also rejected the claim of the
plaintiff for interest and set aside the findings of learned Single Judge on F
issue No. 6.
8.5. In view of its findings on the relevant issues, the Division
Bench of the High Court allowed the appeal filed by the State and
dismissed the appeal filed by the plaintiff. Accordingly, the suit filed by
the plaintiff-appellant was dismissed. Hence, this appeal. G
Rival contentions:
9. Assailing the impugned judgment dated 26.02.2007, the learned
senior counsel for the appellant has painstakingly taken us through all
the background aspects of the matter and the relevant provisions of the
H
532 SUPREME COURT REPORTS [2019] 11 S.C.R.

A Act of 1972; and has strenuously contended that the Division Bench of
the High Court has erred in law as also on facts in reversing the considered
decision of the learned Single Judge and in dismissing the suit filed by
the appellant. The learned senior counsel has referred to the jurisprudential
concepts of ownership and property; and has contended that the lease
hold rights on the subject land and plantations thereon had been the
B
valuable property of the appellant; and deprivation of the usufruct of the
subject land had been in direct violation of the appellant’s right to property
for which, the appellant is entitled to claim damages. The learned counsel
has particularly referred to the letter dated 28.05.1987 by the Collector
to the Deputy Secretary to the Government in Forest and Fisheries
C Department stating and acknowledging the facts that the land was
developed by the appellant from the years 1972 to 1978; and the appellant
was not allowed to continue with his work on the land in question after
declaration of the area as wild life sanctuary due to the land acquisition
proposal. The learned counsel has contended that there being clear
admission of the fact that the appellant was indeed deprived of using the
D
land in question and there being no evidence to the contrary, the learned
Single Judge had rightly proceeded on such an admission of the defendant.
The learned counsel has relied upon the decisions in Thiru John v.
Returning Officer & Ors.: (1977) 3 SCC 540, Sushil Kumar v.
Rakesh Kumar: (2003) 8 SCC 673, and Standard Chartered Bank
E v. Andhra Bank Financial Services Ltd. & Ors.: (2006) 6 SCC 94
to submit that the admission being the best evidence against the defendant,
the suit was rightly decreed and the Division Bench has erred in reversing
the decree so passed.
9.1. The learned senior counsel has further contended that in terms
F of the unamended provisions of the Act of 1972, once a land was notified
under Section 18, even the land owner was prevented from using the
land and he was required to wait until conclusion of the proceedings.
The restrictions until the pendency of the proceedings, according to the
learned counsel, had resulted in direct violation of the appellant’s right to
use his property; and in this case, where the subject land was
G unnecessarily sought to be acquired and then, to avoid compensation,
the same was excluded after more than two decades, the appellant is
entitled to claim damages for the loss suffered during all this time when
the land could not be put to the requisite use. The learned counsel would
submit that the State Government itself had admitted that the annual
H yield for the land in question could not be assessed as the appellant was
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 533
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

prevented from carrying on any plantation activities and, therefore, the A
observations of the learned Single Judge, that the appellant was debarred
from exercising his rights, were not incorrect and the damages towards
the loss suffered by the appellant had rightly been allowed. Thus, according
to the learned counsel, the impugned judgment deserves to be set aside
and that of the learned Single Judge deserves to be restored. In support
B
of these contentions, the learned counsel has relied upon several decisions,
including that in Union of India v. Hari Krishan Khosla (Dead) by
LRs: (1993) Supp (2) SCC 149, which need not be dilated upon, for
the reasons occurring infra.
9.2. As regards the quantum of damages, the learned senior counsel
has argued that when the appellant has suffered huge loss for having C
been deprived of using the land in question and prevented from taking
the usufruct, the quantum of damages had rightly been assessed on the
basis of the loss of earnings assessed by the officers of the respondent-
State during the award inquiry; rather the assessment had been on the
lower side, looking to the loss and deprivation suffered by the appellant. D
9.3. The learned counsel has also referred to the contentions sought
to be urged on behalf of the defendant-respondent with reference to
Section 60 of the Act of 1972 and has contended that such a plea was
neither taken in the written statement nor any issue was framed in that
regard nor any such contention was urged before the Single Judge and E
hence, the respondent cannot take such a plea at the later stage. Without
prejudice to these submissions, the learned counsel has also contended
that the principles of the decision of this Court in Kasturi Lal v. State of
U.P.: AIR 1965 SC 1039 are not of investing the State with a blanket
or absolute immunity in relation to the tortious act of its officers; and has
particularly referred to the decisions in N. Nagendra Rao & Co. v. F
State of A.P.: (1994) 6 SCC 205 and Union of India v. Sancheti
Food Products Ltd.: (2015) 15 SCC 447.
9.4. The learned senior counsel has also submitted that the suit
filed by the appellant was well within time and could not have been
dismissed on the ground of limitation. The learned counsel has referred G
to the observations made and liberty granted by the Division Bench in its
previous judgment dated 18.09.1997. According to the learned counsel,
in this case, where the appellant was earlier prosecuting the matter in
the writ petition against the Collector’s order dated 19.11.1993 and in
fact, the learned Single Judge had allowed the writ petition and quashed H
534 SUPREME COURT REPORTS [2019] 11 S.C.R.

A the said order of exclusion of the subject land from sanctuary, the said
order ceased to be in existence and got resurrected only after the Division
Bench’s judgment dated 18.09.1997. In this view of the matter and in
view of Section 14 of the Limitation Act, according to the learned counsel,
the time spent in prosecuting the said writ matter is required to be excluded;
and, therefore, the suit instituted on 08.06.1998 is not barred by limitation.
B
The learned counsel has referred to the decisions in Rameshwar Lal v.
Municipal Council, Tonk & Ors.: (1996) 6 SCC 100 and Union of
India v. Shring Construction Co. (P) Ltd.: (2006) 8 SCC 18. The
learned counsel has also submitted that the suit having been instituted
within one year from the date of decision by the Division Bench, the
C requirement of Article 72 of the Limitation Act is satisfied. Further, with
reference to the decision in State of A.P. v. Challa Ramkrishna Reddy
& Ors.: (2000) 5 SCC 712, the learned counsel has argued that the
action of the authority concerned being not bona fide, the limitation of
three years as per Article 113 of the Limitation Act would apply. According
to the learned counsel, viewed from any angle, the suit is well within
D
limitation.
10. Per contra, the learned senior counsel for the respondent-
State has argued that the appellant is not entitled to make any claim for
damages when the land in question was not acquired by the Government.
The learned counsel has contended that the land in question belonged to
E the Mutt, and if at all the same was leased to the appellant, the only
remedy available to the appellant was against the Mutt and not the State
as there was no privity of contract between the State and the appellant.
The learned senior counsel has also raised the contention that in terms
of Section 34 of the Tamil Nadu Hindu Religious and Charitable
F Endowments Act, 195911, the alleged lease for a term of 25 years was
null and void because such a lease could not have been made unless
sanctioned by the authority concerned; and, in this regard, only a cursory
statement was made by PW1 of having obtained permission but no
documentary proof of the requisite sanction was adduced.
G 10.1. The learned counsel has also contended that with the State
and its officers having exercised their powers under the statute i.e., the
Act of 1972 in a legal manner, the suit for damages was not maintainable
in view of the provisions of Section 60 of the Act of 1972. The learned
counsel has also referred to the decision in Kasturi Lal’s case (supra)
11
H Hereinafter referred to as ‘the Tamil Nadu Act of 1959’
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 535
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

and submitted that the land in question having been excluded from the A
proposed sanctuary on relevant considerations, including the interest of
public exchequer, the impugned action would not lead to any cause for
claiming damages. The learned counsel has further referred to the
statement of PW-1 in cross-examination that he was never dispossessed
and has contended that there being no infringement of any of the legal
B
rights, no case of claiming damages by the appellant is made out.
10.2. On the question of quantum of damages, the learned counsel
has referred to the observations in the impugned judgment and submitted
that nothing of actual loss having been proved and the subject land having
been excluded from the sanctuary, the learned Single Judge had seriously
erred in quantifying the damages with reference to the alleged loss of C
earnings for 22 years without any reason or justification.
10.3. The learned counsel for the respondent has also strenuously
argued that even if it be assumed that the cause of action accrued upon
issuance of the exclusion order dated 19.11.1993, the suit in question
was clearly barred by limitation. According to the learned counsel, Section D
14 of the Limitation Act would not come to the rescue of the appellant
because the subject matter of the writ petition, which was filed jointly by
the Mutt and the appellant in challenge to the order dated 19.11.1993,
was not the same as that of the present suit because no claim for damages
was made in the said writ petition. The requirements of Section 14 of E
the Limitation Act having not been satisfied, the learned counsel
contended, the period of prosecuting the said writ petition cannot be
excluded and, therefore, the suit is required to be dismissed on the ground
of limitation. The learned counsel has relied upon the decision in Yeshwant
Deorao v. Walchand Ramchand: AIR 1951 SC 16.
F
Preliminary Observations
11. We have bestowed thoughtful consideration to the rival
submissions and have examined the record of the case with reference
to the law applicable. Having examined the matter in its totality, we are
undoubtedly of the view that the suit filed by the plaintiff-appellant was G
barred by limitation and even otherwise, the plaintiff-appellant had no
case on merits to claim damages from the respondent-State. In other
words, the Division Bench of the High Court has rightly allowed the
appeal filed by the State and has rightly dismissed the baseless suit filed
by the appellant. Hence, this appeal sans merit and deserves to be
dismissed. H
536 SUPREME COURT REPORTS [2019] 11 S.C.R.

A 12. Before dilating on the questions relating to limitation and
sustainability of the appellant’s claim for damages, we may observe that
the contentions belatedly put forth on behalf of the defendant-respondent,
as regards validity of the alleged second lease in favour of the appellant
on the anvil of the Tamil Nadu Act of 1959 (as urged before this Court);
and as regards immunity from any action as per Section 60 of the Act of
B
1972 (as urged before the Division Bench of High Court) cannot be said
to be wholly without substance. We would hasten to observe that the
case of the appellant is not being rejected on these grounds for the reason
that such contentions were not urged at the trial stage but, in the given
set of facts and circumstances, we feel rather impelled to make prima
C facie observations in regards to these aspects.
12.1. As per the case of the appellant, the second lease deed
dated 20.03.1978 in relation to the land in question was executed in its
favour by the Mutt for a period of 25 years. The self-explanatory
provisions of Section 34 of the Tamil Nadu Act of 1959 12 declare any
D exchange, sale or mortgage and any lease, for a term exceeding 5 years,
of any immoveable property belonging to any religious institution to be
null and void unless sanctioned by the Commissioner as being necessary
or beneficial to the institution. The first proviso to the said Section 34 of
the Tamil Nadu Act of 1959 also requires that before according sanction,
the particulars relating to the proposed transaction shall be published,
E
12
The relevant parts of Section 34 of the Tamil Nadu Act of 1959 read under: -
“34. Alienation of immovable trust property.-
(1) Any exchange, sale or mortgage and any lease for a term exceeding five
years of any immovable property, belonging to, or given or endowed for the
purposes of, any religious institution shall be
F null and void unless it is sanctioned by the Commissioner as being necessary or
beneficial to the institution:
Provided that before such sanction is accorded, the particulars relating to the
proposed transaction shall be published in such manner as may be prescribed,
inviting objections and suggestions with respect thereto; and all objections and
suggestions received from the trustee or other persons having interest shall be
duly considered by the Commissioner:
G Provided further that the Commissioner shall not accord such sanction without
the previous approval of the Government.
Explanation.- Any lease of the property above mentioned though for a term not
exceeding five years shall, if it contains a provision for renewal for a further
term (so as to exceed five years in the aggregate), whether subject to any
condition or not, be deemed to be a lease for a period exceeding five years.
H *** *** ***”
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 537
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

while inviting objections and suggestions; and all objections and A
suggestions received from the trustee or any other persons having interest
shall be considered. In the present case, a vague statement was made
by PW-1 that the permission of the department concerned was obtained
for the second lease for which, the Collector had made the
recommendation but then, neither any documentary proof of any such
B
permission/sanction is adduced nor it is shown that the proposed sanction
was duly published and the objections/suggestions were invited and
considered. For want of necessary evidence on the validity of second
lease deed, prima facie it appears seriously questionable if the plaintiff-
appellant had at all acquired any right in the land in question by virtue of
the said lease deed, much less a right to claim damages from the State. C
Having regard to the circumstances of the case, we are leaving the
aspect relating to the effect of Section 34 of Tamil Nadu Act of 1959 at
that only, essentially because we are satisfied that the said lease deed
was even otherwise impermissible and in any case, even on the basis of
this questionable second lease, the plaintiff-appellant has no right to claim
D
damages.
12.2. Secondly, by virtue of Section 60 of the Act of 197213, no
civil suit in relation to any action taken in good faith under the Act of
1972 is maintainable. Although, this aspect was not pleaded in specific
terms on behalf of the defendant-respondent nor any issue in that regard
was struck but, prima facie, we have reservations if any action of the E
present nature could have been maintained against the respondent-State
in the face of Section 60 of the Act of 1972. Be that as it may, as
observed, we are not finally pronouncing on these aspects and are leaving
the same at that.
13. Taking up the material points for determination in this case, F
though we are satisfied that the suit in question is liable to be dismissed
13
The relevant parts of Section 60 of the Act of 1972 read as under:-
60. Protection of action taken in good faith. - (1) No suit, prosecution or other
legal proceeding shall lie against any officer or other employee of the Central
Government or the State Government for anything which is in good faith done G
or intended to be done under this Act.
(2) No suit or other legal proceeding shall lie against the Central Government
or the State Government or any of its officers or other employees, for any
damage caused or likely to be caused by anything which is in good faith done or
intended to be done under this Act.
*** *** ***” H
538 SUPREME COURT REPORTS [2019] 11 S.C.R.

A for the bar of limitation but, for the reason that the learned Single Judge
decided this issue in favour of the appellant and the Division Bench left
it unanswered because of merit dismissal of the suit, it appears appropriate
to discuss the question of limitation later and only after dilating on the
merits of the claim for damages by the appellant.
B Claim for damages by the appellant – whether sustainable?
14. In order to determine the point as to whether the appellant’s
claim for damages is sustainable and the Division Bench of the High
Court was not right in dismissing the suit, a few basic questions, relating
to the effect and operation of the relevant provisions of the Act of 1972
C concerning the process of declaration of a sanctuary and acquisition of
land for that purpose need to be addressed to.
The relevant provisions of the Act of 1972
15. As regards the basic questions involved in this case, the
provisions contained in Chapter IV of the Act of 1972 having a direct
D bearing on the subject matter need to be taken in comprehension; and
the relevant amendments therein also need to be noticed. Chapter IV of
the Act earlier carried the heading “SANCTUARIES, NATIONAL
PARKS AND CLOSED AREAS”, with division of the provisions under
three sub-headings viz., “Sanctuaries”, “National Parks” and “Closed
E Areas”.14 At the relevant point of time, i.e., issuance of the two
notifications dated 06.03.1976 and 28.08.1978, the provisions in Sections
18 to 24, 27 and 28 of the Act of 1972, under the sub-heading
“Sanctuaries”, with which we are largely concerned in this appeal, had
been as under:-

F “18. Declaration of sanctuary.- (1) The State Government may,
by notification, declare any area to be a sanctuary if it
considers that such area is of adequate ecological, faunal,
floral, geomorphological, natural or zoological significance,
for the purpose of protecting, propagating or developing wild
life or its environment15
G
14
The main heading was substituted by Act No. 16 of 2003 and it now reads:
“PROTECTED AREAS”.
15
The provisions contained in Section 18(1) came to be amended by Act No. 44 of
1991 with effect from 02.10.1991. The amended provisions of Section 18(1) read as
follows :-
H
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 539
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

19. Collector to determine rights.- Whenever any area is A
declared to be a sanctuary, the Collector shall inquire into
and determine, the existence, nature and extent of the rights
of any person in or over the land comprised within the limits
of the sanctuary 16.
20. Bar of accrual of rights.- After the issue of a notification B
under section 18, no right shall be acquired in, on or over
the land comprised within the limits of the area specified in
such notification, except by succession, testamentary or
intestate.
21. Proclamation by Collector.- When a notification has been C
issued under section 18, the Collector shall publish in the
regional language in every town and village in or in the
neighbourhood of the area comprised therein, a proclamation-
(a) specifying, as nearly as possible, the situation and
the limits of the sanctuary; and D
(b) requiring any person, claiming any right mentioned
in section 19, to prefer before the Collector, within
two months from the date of such proclamation, a
written claim in the prescribed form, specifying the
nature and extent of such right with necessary details E
and the amount and particulars of compensation, if
any, claimed in respect thereof.
22. Inquiry by Collector.- The Collector shall, after service of
the prescribed notice upon the claimant, expeditiously inquire
into- F
“18. Declaration of sanctuary. -
(1) The State Government may, by notification, declare its intention to constitute
any area other than an area comprised within any reserve forest or the territorial
waters as a sanctuary if it considers that such area is of adequate ecological,
faunal, floral, geomorphological, natural or zoological significance, for the
purpose of protecting, propagating or developing wild life or its environment.” G
16
Section 19 was also amended by Act No. 44 of 1971 and the amended Section 19
reads as follows:-
“19. Collector to determine rights. - When a notification has been issued under
section 18 the Collector shall inquire into, and determine, the existence, nature
and extent of the rights of any person in or over the land comprised within the
limits of the sanctuary.” H
540 SUPREME COURT REPORTS [2019] 11 S.C.R.

A (a) the claim preferred before him under clause (b) of
section 21; and
(b) the existence of any right mentioned in section 19 and
not claimed under clause (b) of section 21,
so far as the same may be ascertainable from the records of
B the State Government and the evidence of any person
acquainted with the same.
23. Powers of Collector.- For the purpose of such inquiry, the
Collector may exercise the following powers, namely:-

C (a) the power to enter in or upon any land and to survey,
demarcate and make a map of the same or to authorise
any other officer to do so;
(b) the same powers as are vested in a civil court for the
trial of suits.
D 24. Acquisition of rights.- (1) In the case of a claim to a right
in or over any land referred to in section 19, the Collector
shall pass an order admitting or rejecting the same in whole
or in part.
(2) If such claim is admitted in whole or in part, the Collector
E may either-
(a) exclude such land from the limits of the proposed
sanctuary, or
(b) proceed to acquire such land or rights, except where
by an agreement between the owner of such land or
F holder of rights and the Government, the owner or
holder of such rights has agreed to surrender his
rights to the Government, in or over such land, and
on payment of such compensation, as is proved in
the Land Acquisition Act, 1894 (1 of 1894).17
G *** *** ***
17
By the said amendment Act No. 44 of 1991, sub-clause (c) was added to
Section 24 as follows: -
“(c) allow, in consultation with the Chief Wild Life Warden, the
continuation of any right of any person in or over any land within the
H limits of the sanctuary.”
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 541
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

27. Restriction on entry in sanctuary. – (1) No person other A
than, -
(a) a public servant on duty,
(b) a person who has been permitted by the Chief Wild
Life Warden or the authorised officer to reside within
the limits of the sanctuary, B

(c) a person who has any right over immovable property
within the limits of the sanctuary,
(d) a person passing through the sanctuary along a public
highway, and C
(e) the dependents of the person referred to in clause(a),
clause(b) or clause (c),
shall enter or reside in the sanctuary, except under and in
accordance with the conditions of a permit granted under
section 28. D
(2) Every person shall, so long as he resides in the sanctuary,
be bound-
(a) to prevent the commission, in the sanctuary, of an
offence against this Act;
E
(b) where there is reason to believe that any such offence
against this Act has been committed in such sanctuary,
to help in discovering and arresting the
offender;
(c) to report the death of any wild animal and to F
safeguard its remains until the Chief Wild Life
Warden or the authorised officer takes charge thereof;
(d) to extinguish any fire in such sanctuary of which he
has knowledge or information and to prevent from
spreading, by any lawful means in his power, any fire G
within the vicinity of such sanctuary of which he has
knowledge or information; and

H
542 SUPREME COURT REPORTS [2019] 11 S.C.R.

A (e) to assist any Forest Officer, Chief Wild Life Warden,
Wild Life Warden or Police Officer demanding his aid
for preventing the commission of any offence against
this Act or in the investigation of any such offence.18
28. Grant of permit.- (1) The Chief Wild Life Warden may, on
B application, grant to any person a permit to enter or reside in
a sanctuary for all or any of the following purposes, namely:-
(a) investigation or study of wild life and purposes
ancillary or incidental thereto;
(b) photography;
C
(c) scientific research;
(d) tourism;
(e) transaction of lawful business with any person residing
in the sanctuary.
D
(2) A permit to enter or reside in a sanctuary shall be issued
subject to such conditions and on payment of such fee as
may be prescribed”.
15.1. It could at once be noticed that a few changes were brought
about by the amending enactment i.e., Act No. 44 of 1991, having the
E
effect of slightly altering the process of declaration of sanctuary. Prior
to the said amendment, the notification under Section 18(1) of the Act of
1972 was of the declaration of an area to be a sanctuary whereas, after
the amendment, such notification under Section 18(1) would be of
declaration by the State Government of its intention to constitute an area
F as a sanctuary. However, the remaining part of the scheme of the
provisions regarding the powers of the Collector to determine the rights;
the bar over accrual of rights after issuance of notification under Section
18; issuance of proclamation by the Collector; inquiry by the Collector;

18
By the said Act No. 44 of 1991, sub-section (3) and sub-section (4) were inserted to
G Section 27 as under: -
“(3) No person shall, with intent to cause damage to any boundary-mark of a
sanctuary or to cause wrongful gain as defined in the Indian Penal Code, 1860
(45 of 1860), alter, destroy, move or deface such boundary-mark.
(4) No person shall tease or molest any wild animal or litter the grounds of
H sanctuary.”
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 543
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

and the Collector’s powers for the purpose of inquiry remained essentially A
the same.19-20
The operation and effect of Section 20 of the Act of 1972
16. It is beyond the pale of doubt that in the scheme of the Act of
1972, issuance of a notification under Section 18 thereof has the peculiar
and striking effect, of arresting the accrual of any right in the land B
comprised within the limits of the area specified in such notification except
by way of testamentary or intestate succession (vide Section 20 ibid.).
Even if the appellant was given the land in question on lease for a period
19
It may, however, be pointed out that in view of modification in the scheme of the
process of declaration of a sanctuary, whereby, after the amendment, the notification C
under Section 18 is only a declaration of the intention of Government, the provisions
were inserted by way of Section 26-A to the Act of 1972 to provide for the declaration
of area as a sanctuary, essentially after disposal of the claims, if any made after issuance
of the notification under Section 18. For the present purpose, suffice would be to take
note of the principal part of sub-section (1) of Section 26-A, (while omitting the
proviso and other sub-sections), as under: - D
“ 26-A. Declaration of area as sanctuary.- (1) When –
(a) a notification has been issued under section 18 and the period for preferring
claims has elapsed, and all claims, if any, made in relation to any land in an
area intended to be declared as a sanctuary, have been disposed of by the
State Government; or
(b) any area comprised within any reserved forest or any part of the territorial
waters, which is considered by the State Government to be of adequate E
ecological faunal, floral, geomorphological, natural or zoological significance
for the purpose of protecting, propagating or developing wild life or its
environment, is to be included in a sanctuary,
the State Government shall issue a notification specifying the limits of the area
which shall be comprised within the sanctuary and declare that the said
area shall be a sanctuary on and from such date as maybe specified in the
notification : F
*** *** *** “
20
It may also be pointed out that several more changes have been brought about in the
scheme of these provisions in Chapter IV by way of by Act No. 16 of 2003 viz.,
Sections 18-A and 18-B have been inserted, providing for protection of sanctuaries and
appointment of Collectors; the proclamation under Section 19 is now required to be
issued within sixty days of issuance of the notification under Section 18; Section 25-A
has also been inserted providing for completion of proceedings under Sections 19 to 25
G
within two years from the date of notification under Section 18; sub-section (3) has
been substituted in Section 26-A; and Section 29 has also been substituted, prohibiting
destruction, exploitation or removal of any wildlife including forest produce from a
sanctuary except under and in accordance with a permit granted by the Chief Wildlife
Warden. These provisions need not be dilated for being not applicable to the case at
hand. H
544 SUPREME COURT REPORTS [2019] 11 S.C.R.

A of 5 years from 01.07.1972, that period came to an end on 30.06.1977.
On this date of completion of the term of the lease, indisputably, the
notification under Section 18(1), which was issued on 06.03.1976, was
in operation and it had been the specific assertion of the appellant that
the subject land was included in the said notification.21 That being the
position, there was absolutely no occasion for the appellant acquiring
B
any further right in the land in question after expiry of the term of his
lease on 30.06.1977. For this reason alone, we are clearly of the view
that the so called second lease deed, said to have been executed in
favour of the appellant on 20.03.1978 was of no effect. In other words,
the notification under Section 18(1) having been issued on 06.03.1976
C (which included the land in question as per the own assertion of the
appellant), no right in the land in question could have been acquired
except by succession and hence, acquiring of any right by the appellant
in the subject land, said to be covered by the said notification dated
06.03.1976, by way of a lease, was absolutely out of question.
D 16.1. In our view, the entire substratum of the case of the appellant
is knocked to the ground once it is found that the appellant had acquired
no right under the said second lease dated 20.03.1978 and least any right
against the State. Noteworthy it is that in all the previous litigations,
initially seeking exclusion of land in question from the sanctuary; then
seeking compensation for its inclusion; and then questioning its exclusion,
E the Mutt had been an active participant. In fact, the last petition seeking
to question the exclusion was filed jointly by the Mutt and the appellant.
However, the Mutt has not joined the claim for damages in this suit. The
appellant, we have no doubt, had no right whatsoever to claim damages
with reference to the alleged cause of action based on the order of
F exclusion dated 19.11.1993 for the reason that the alleged second lease
was of no effect and the appellant had acquired no right thereunder. We
may put it in yet other words that if at all the exclusion order dated
19.11.1993 furnished any right to maintain an action against the State,
only and only the Mutt could have maintained such an action but not the
appellant. The suit filed by the appellant is liable to be dismissed on this
G count alone.
21
Even when the defendant-respondent made an uncertain attempt to suggest that the
subject land was not included in the said notification under Section 18(1) of the Act, it
had been the specific assertion of the appellant that it was so included and the entire
matter, including the claim of the appellant, has proceeded on the basis that it was
H indeed included therein.
M/S NATESAN AGENCIES (PLANTATIONS) v. STATE REP. BY THE SEC. TO 545
GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

Even if the appellant had any right, there was no infringement A
17. Having found that the plaintiff-appellant did not acquire any
right under the second lease and dismissal of suit at hand could be
sustained on this ground alone, we may, yet, leave this aspect aside for a
moment and examine the second question as to whether the right of the
appellant (if any) in the subject land was infringed in the manner as to B
give the appellant a cause to maintain an action for damages. Noteworthy
it is that the claim for damages in the present suit is based on the assertion
that the respondent-State through its officers caused prejudice and injury
by preventing the appellant from entering the subject land and enjoying
the usufruct thereof and then, by denying compensation for acquisition
by lately excluding the subject land from the sanctuary. Such assertion C
of the appellant has also taken its strength from some of the observations
made by the Division Bench of the High Court in its aforesaid judgment
dated 18.09.1997, whereby the claim of the Mutt and the appellant against
the exclusion order dated 19.11.1993 was rejected. In our view, there is
no merit in the claim of the appellant. D
17.1. The Division Bench of the High Court has noticed in the
impugned judgment dated 26.02.2007, and rightly so, that even as per
the admission of the PW-1, the appellant had not been dispossessed. So
far as the restriction on entry is concerned, as per Section 27 of the Act
of 1972, a person having any right over the immovable property within E
the limits of sanctuary is not debarred from entering into or residing
within the sanctuary. At the most, the duties as contemplated by sub-
section (2) of Section 27 are to be performed. Such duties, essentially to
protect the sanctuary and its habitants, cannot be said to be leading to
any debarment from exercising any legal right.
F
17.2. In our view, the Division Bench has rightly observed in the
impugned judgment that there is nothing on record to establish that the
original owner and the plaintiff were prevented from going inside the
forest and collecting the usufructs. In a comprehension of the facts on
record and the law applicable, it cannot be said that the plaintiff-appellant
was prevented from exercising its lawful rights in any unlawful manner G
by the State. Hence, there appears no basis for the appellant to maintain
an action for damages.
18. There had, of course, been one instance where the appellant
was denied the permission to fell the trees. That denial was made way
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546 SUPREME COURT REPORTS [2019] 11 S.C.R.

A back on 16.11.1976 and could not have furnished any cause to the
appellant to maintain the claim for damages for the so called loss of
earning for 22 years and for claiming other amount as per the prayers
made in the plaint. Even as regards the aforesaid denial of permission to
fell the trees, it could be presumed that the trees were available at the
site when the area was excluded from sanctuary. Therefore, it cannot
B
be said that the plaintiff-appellant, if having lawful right over such trees,
had suffered any loss by the action of the officers of the Government.
19. For what has been discussed hereinabove, we are satisfied
that the appellant had no case for claiming damages against the
respondent-State. Hence, it does not appear necessary to deal with
C various decisions cited by learned counsel for the appellant as regards
violation of right to property and the claim for damages on that count.
However, one aspect of the matter as regards admission on the part of
the Collector in the letter dated 28.05.1987 may be examined. There is
no dispute on the fundamental principles in Thiru John, Sushil Kumar
D and Standard Chartered Bank (supra) that an admission is the best
evidence against a litigant, unless properly explained. There had not
been any evidence on behalf of the defendant-respondent in this case
and the aforesaid letter dated 28.05.1987 has not been denied. The
question, however, is about the effect of this letter. In our view, even if
the said letter, being essentially of inter-departmental correspondence, is
E taken on its face value, nothing much turns upon it because, as rightly
observed by the High Court, there is nothing on record to indicate that
the original owner and the appellant were prevented from going inside
the subject land and from collecting the usufructs; and it cannot be said
that the appellant was prevented in any unlawful manner by the State in
F exercising its lawful right (if at all the appellant had any such right).
20. For what has been discussed hereinabove, we are satisfied
that the Division Bench of the High Court has rightly answered both the
material questions i.e., as to whether the appellant had any right in the
subject land; and if there was any such right, as to whether the same
G had been infringed, against the appellant in a proper manner and in
accordance with law. No case for granting any decree for damages is
made out.
Limitation
21. On the facts and in the circumstances of this case, the question
H of limitation naturally arises for consideration. If the actions of the officers
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GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

of the respondent-State under the Act of 1972 at all gave rise to the A
claim for damages, the matter was directly covered by Article 72 of the
Limitation Act providing for the limitation of one year for such a suit,
which begins to run when the act or omission takes place. Article 72 of
the Limitation Act reads as under:-
For compensation for One When the act or B
doing or for omitting to year omission takes place.
do an act alleged to
be in pursuance of
any enactment in
force for the time
being in the territories
to which this Act C
extends.
21.1. In the case of Challa Ramkrishna Reddy (supra), this Court
has pointed out that if the act or omission complained of is not alleged to
be in pursuance of the statutory authority, Article 72 would not apply;
and this Article would not protect a public officer acting malafide under D
the colour of his office. Although in the present case, there is no specific
allegation of malafide against any particular officer/officers and hence,
Article 72 would operate with limitation period of one year from the date
of impugned action but, for the sake of argument, we may assume that
the residuary Article 113, providing for the limitation of three years from
the time when the right to sue accrues may apply to the suit at hand. We E
may further assume that the order dated 19.11.1993 gave a right to sue.
Even then, the suit filed on 08.06.1998 was much beyond the period of
limitation.
21.2. The appellant, therefore, referred to and relied upon Section
14 of the Limitation Act and the observations made by the High Court in F
the judgment dated 18.09.1997. So far the observations by the High
Court in the said judgment are concerned, it is but apparent that the
Division Bench of High Court could not have, and did not, finally
pronounce that the time spent in the said writ matter would be excluded
under Section 14. The Division Bench only left it open that such a G
ground may be raised in the claim for compensation. When raised, the
ground was obviously required to be examined on its own merits.
21.3. It is noticed that the learned Single Judge, while dealing with
issue No. 2 in the suit, proceeded in a wholly cursory manner, inasmuch
as after referring to the observations in the judgment 18.09.1997 and
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A then to the contentions of parties, the learned Judge straight away
observed that he would disagree with the defendant without specifying
any reason; and stated the conclusion that the suit was filed within time.
The Division Bench, on the other hand, pointed out its prima facie doubts
on the applicability of Section 14 of the Limitation Act but did not decide
the question of limitation, as the claim was being negatived on merits.
B
Having regard to the subject matter, it appears appropriate to deal with
this issue and to point out as to why Section 14 would not apply.
21.4. Section 14 is one such provision in the Limitation Act that
provides for exclusion of the time spent in prosecuting one civil proceeding
bona fide in a Court not having jurisdiction, while computing limitation
C in any suit where the matter in issue is same as that of the earlier
proceeding. The heading of this provision and sub-section (1) thereof
may be extracted as under:
“14. Exclusion of time of proceeding bona fide in court without
jurisdiction.-(1) In computing the period of limitation for any
D suit the time during which the plaintiff has been prosecuting
with due diligence another civil proceeding, whether in a court
of first instance or of appeal or revision, against the defendant
shall be excluded, where the proceeding relates to the same
matter in issue and is prosecuted in good faith in a court
E which, from defect of jurisdiction or other cause of a like
nature is unable to entertain it.”
21.4.1. We may usefully refer to the relevant decisions pointing
out the basic requirements for applicability of Section 14 of the Limitation
Act. In the case of Madhavrao Narayanarao Patwardhan v.
F Ramkrishna Govind Bhanu and Ors.: AIR 1958 SC 767, this Court
pointed out the requirements on plaintiff for the purpose of Section 14 in
the following:-
“6. …..In order to bring his case within the section quoted
above, the plaintiff has to show affirmatively:
G (1) that he had been prosecuting with due diligence the
previous suit in the court of the Munsif at Miraj.
(2) that the previous suit was founded upon the same cause
of action,

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GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

(3) that it had been prosecuted in good faith in that court, A
and
(4) that that court was unable to entertain that suit on
account of defect of jurisdiction or other cause of a
like nature……..”
21.4.2. Further, in the case of Zafar Khan and Ors. v. Board of B
Revenue, U.P. and Ors.: 1984 (Supp) SCC 505, this Court pointed
out thus:
“13. In order to attract the application of Section 14(1), the
parties seeking its benefit must satisfy the court that : (i) that
the party as the plaintiff was prosecuting another civil C
proceeding with due diligence; (ii) that the earlier proceeding
and the later proceeding relate to the same matter in issue,
and (iii) the former proceeding was being prosecuted in good
faith in a court which, from defect of jurisdiction or other
cause of a like nature, in unable to entertain it.……..” D
21.4.3. In Yeshwant Deorao (supra), this Court held that there
can be no exclusion under Section 14 of the Limitation Act of the time
spent in insolvency proceedings against the judgment debtor, in computing
the period of limitation for executing a decree against him, as the two
proceedings were not for obtaining the same relief. This Court said,- E
“5............ The relief sought in insolvency is obviously different
from the relief sought in the execution application. In the
former, an adjudication of the debtor as insolvent is sought
as preliminary to the vesting of all his estate and the
administration of it by the Official Receiver or the Official F
Assignee, as the same may be, for the benefit of all the
creditors; but in the latter, the money due is sought to be
realized for the benefit of the decree-holder alone, by
processes like attachment of property and arrest of person. It
may be that ultimately in the insolvency proceedings the
decree-holder may be able to realize his debt wholly or in G
part, but this is a mere consequence or result. Not only is the
relief of a different nature in the two proceedings but the
procedure is also widely divergent.”

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550 SUPREME COURT REPORTS [2019] 11 S.C.R.

A 21.4.4. We may also refer to a Division Bench decision of the
Nagpur High Court in Kashinath Shankarappa v. The New Akot
Cotton Ginning and Pressing Co. Ltd.: AIR 1951 Nagpur 255
wherein, on the question as to whether in an action for recovery of debt
in the civil Court, the time spent in the winding up proceeding could be
excluded, the High Court answered in the negative thus:
B
“28. The grounds on which a company can be wound up are
set out in S. 162, Companies Act. There are number of them.
Even if it be assumed that the application was under S. 162(v),
namely, that the company was unable to pay its debts S. 163(1)
shows that the expression “unable to pay its debts” embraces
C three distinct concepts. There is nothing to show that the
application was confined to this particular debt. But even if
it was, the cause of action in winding up proceedings under
S. 163(1) is the inability of the company to pay its debts and
not as here, as the recovery of the debt. The question of
D recovery does not arise until the winding up order has been
made and a liquidator appointed. It is at that stage that the
claims against the company are enquired into and decided.
Therefore the cause of action in those proceedings and the
cause of action here were not the same. It follows that S. 14 is
not attracted.”
E
21.4.5. The decisions referred by learned counsel for the appellant
had been of different situations. In Rameshwarlal (supra), the claim
was of salary by the petitioner that was not entertained in the writ petition
on the ground that the claim was recoverable in civil action and the civil
suit was filed thereafter. This Court indicated the normal principle that
F the Court dealing with the matter in the first instance must be found
lacking jurisdiction or other cause of like nature to entertain the matter
but then, found that in the proceedings under Article 226 of the Constitution
of India, the High Court had expressly declined to grant relief while
relegating the petitioner to a suit in the civil Court. In the given
G circumstances, this Court observed that the petitioner could not be left
remediless. In the case of Shring Construction Co. (supra), the
arbitration award was initially sought to be challenged by way of a writ
petition that was dismissed as being not maintainable on the ground that
the award ought to have been challenged under Section 34 of the

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GOVT. ENVIRONMENT AND FORESTS DEPT. [DINESH MAHESHWARI, J.]

Arbitration and Conciliation Act, 1996. Then, the District Judge dismissed A
the application under Section 34 of the said Act of 1996 for being barred
by time. This Court found that applicability of Section 14 of the Limitation
Act was not excluded from the said Act of 1996 and hence, the matter
was remitted to the District Judge to examine if the period spent by the
appellant in prosecuting remedy before the High Court could be excluded.
B
21.4.6. The common thread running through all the decisions above
referred is that for the applicability of Section 14 of the Limitation Act
and exclusion of the time spent in earlier proceeding, the matter in issue
in both the earlier and the later proceeding must be the same. This is
apart from the other requirements that the previous proceeding had been
civil proceeding, which were being prosecuted by the plaintiff with due C
diligence and in a Court which, from the defect of jurisdiction or other
cause of like nature, was unable to entertain the same though the plaintiff
had been prosecuting in that Court in good faith.
21.5. In the present case, except the fact that the earlier writ
petition in challenge to the exclusion order dated 19.11.1993 was civil D
proceeding and the plaintiff might have been prosecuting with due
diligence, none of the other requirements of Section 14 of the Limitation
Act are satisfied. The basic requirement, that the matter in issue in the
earlier and the later proceeding ought to be the same; and both the
proceedings, earlier and later, ought to relate to the same cause of action E
and for the same relief, is totally missing. Rather, the matter in issue in
the earlier proceeding could well be contradistinguished from the matter
in issue in the present suit. In the said earlier proceeding, the plaintiff-
appellant joined the Mutt to assert that the respondent-State was not
entitled to exclude the land in question from sanctuary; and that the
State ought to take the land and ought to pay compensation as proposed F
by some of its officers. On the other hand, the claim in the present suit
is founded on the ground that the plaintiff has suffered loss due to the
proceedings under the Act of 1972 and then, due to exclusion of the
subject land from acquisition. The relief claimed in the present suit and
matter in issue herein cannot be said to be the same as had been in issue G
in the earlier proceeding i.e., the said writ petition against the exclusion
order dated 19.11.1993. Apart from the fact that the earlier proceeding
i.e., the said writ petition was for a different relief for quashing the
exclusion order dated 19.11.1993, it is also pertinent that the said writ

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552 SUPREME COURT REPORTS [2019] 11 S.C.R.

A petition was dismissed on merit and not for want of jurisdiction.
Applicability of Section 14 of the Limitation Act is totally ruled out in this
case.
21.6. We may also observe that if the said order dated 19.11.1993
had at all given any cause to the appellant to claim damages/compensation,
B the limitation had begun to run from that date itself and the said proceeding
in the writ petition had never arrested such running of limitation. The
learned counsel for the appellant has submitted that the said order dated
19.11.1993 was quashed by the learned Single Judge on 13.09.1995 and
came to be resurrected only when the Division Bench allowed the appeal
of the State on 18.09.1997 and therefore, limitation would run from the
C date of judgment of the Division Bench. This proposition, at the first
blush, appeared attractive but cannot be accepted on a closer look at the
matter. The filing of writ petition or any order passed therein did not
operate in arresting limitation that had begun to run on 19.11.1993, so far
the right to sue for damages is concerned. The plaintiff-appellant
D consciously chose not to claim damages in the wake of the order dated
19.11.1993 and, instead, joined the Mutt to seek the relief that the said
order dated 19.11.1993 be quashed and the land be not excluded from
sanctuary. Having failed in such an attempt, the appellant could not have
maintained the claim for damages, by filing a suit in the year 1998.
E 21.7. The observations of the Division Bench in the order dated
18.09.1997, suggesting as if the time spent in the said petition could
readily be excluded are of no effect because the Division Bench, while
dealing with the said writ matter, could not have decided the issue of
limitation in the suit in anticipation. Some of the expressions of conclusive
nature, as used by the Division Bench in the judgment dated 18.09.1997,
F were rather unwarranted and in any case, could not have made the
question of limitation in relation to the suit for damage fait accompli.
We say no more because, read as a whole, the said judgment dated
18.09.1997, cannot be taken to be of final conclusion as regards the
applicability of Section 14 to the future action. As noticed, Section 14 of
G the Limitation Act does not apply to the present suit; and, for being
otherwise barred by limitation, the suit is liable to be dismissed on this
ground alone.
22. We may also observe that so far as the denial of felling the
trees by the order dated 16.11.1976 is concerned, if the plaintiff-appellant
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at all had any right to make a claim for damages on that score, the same A
ought to have been made within limitation from that date. The relief in
that regard could not have been claimed by way of a suit filed more than
20 years later.
CONCLUSION
23. The upshot of the discussion aforesaid is that the suit filed by B
the plaintiff-appellant was barred by limitation and even otherwise, the
plaintiff-appellant had no case on merits to claim damages from the
respondent-State. The Division Bench of the High Court has rightly
allowed the appeal filed by the State and has rightly dismissed the baseless
suit filed by the appellant. C
24. Accordingly and in view of the above, this appeal stands
dismissed. In the circumstances of the case, the parties are left to bear
their own costs throughout.

Ankit Gyan Appeal dismissed. D

E

F

G

H