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Supreme Court of India

THE STATE OF BIHAR AND ORS.versusD.N. SINGH (DEAD) BY LRS. AND ORS.

Citation
1997 INSC 729
Decided
13 November 1997
Disposal
Appeal(s) allowed

Holding

The Commissioner can exercise powers under Section 11(1) of the Land Acquisition Act, 1894 to reduce the compensation award.

Summary

The State of Bihar and others appealed a Patna High Court decision that held the Commissioner could not reduce the compensation awarded by the Land Acquisition Collector under the proviso to Section 11(1) of the Land Acquisition Act, 1894. The Supreme Court examined whether the Commissioner, as the approving authority, possesses the power to vary the Collector’s award. Relying on its earlier judgment in State of Bihar v. Prem Kumar Singh (1993), the Court held that the Commissioner does have such power under Section 11(1). The Court, however, noted that the competence of the Commissioner depends on the total compensation amount falling between Rs 5 lakh and Rs 15 lakh; amounts outside this range would shift authority to the State Government. Consequently, the appeal was allowed, the High Court order set aside, and the matter remanded to the High Court for further determination of the compensation and jurisdictional issues. No costs were awarded.

Issues considered

  • Whether the Commissioner can exercise the power under the proviso to Section 11(1) of the Land Acquisition Act, 1894 to reduce the compensation amount proposed by the Collector.
  • Whether the Commissioner is the competent authority when the aggregate compensation exceeds Rs 5 lakh but is within Rs 15 lakh, or whether the authority shifts to the State Government.

Legislation cited

Subjects

Land acquisitionCompensationSection 11Commissioner authorityStatutory thresholdsAppellate jurisdiction

Judgment

A                     THE STATE OF BIHAR AND ORS.
                                   v.                                               ..
                   D.N. SINGH (DEAD) BY LRS. AND ORS.

                              NOVEMBER 13,1997
             ·'
B            · [S.B. MAJMUDAR AND S.P. KURDUKAR, JJ.]


      ,.._Land Acquisition Act, 1894 : Section 11(/) Proviso-Acquisition of
  land-Compensation awarded by Land Acquisition Officer-Approval of-
C Power of Commissioner to reduce the award amount while granting
  approval~Held, Commissioner can exercise the Powers-Matter remanded
  to High Court.

          The respondents were claimants under the Land Acquisition Act, 1894.
    The dispute before the High Court was on the point, whether the
D   Commissioner exercising power under proviso to section 11 of the Act while
    granting approval to the proposal of the Land Acquisition Collector regarding
    the award of compensation to the claimants could reduce the suggested
    amount for different categories of lands sought to be acquired. The High
    Court relying upon its earlier decision held that the Commissioner has no
    such power. Hence the present appeal.
E
          Allowing the appeal, this Court

          HELD: I. The Commissioner can exercise powers under section 11(1).
    of the Land Acquisition Act, 1894. The High Court's decision cannot be
    sustained as the decision relied upon by it has been upset by this Court in
F   State of Bihar & Ors. v. Prem Kumar Singh's case*. (141-B; El

          *State of Bihar & Ors. v. Prem Kumar Singh, Civil Appeal arising out
    of S.L.P. (C) No. 7837 of 1993 decided on 30.11.1993, relied on.

          2. The matter is remanded to the High Court to proceed further in
G accordance with law after hearing the parties concerned. (142-C(
          CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7695 of 1997.

         From the Judgment and Order dated 9.3.92 of the Patna High Court in
    C.W.J.C. No. 9137of1991.

H         8.8. Singh for the Appellants.
                                           140
         STATE OF BIMAR v. D.N. SINGH [S.B. MAJMUDAR, J.]                 141
      A.P. Singh and K.N.Rai for the Respondents.                                A
      The Judgment of the Court was delivered by

      S.B. MAJMUDAR, J. Leave granted.

      We have heard learned counsel for the parties finally in this appeal.      B
      The short question is whether the Commissioner exercising powers
under the proviso to Section 11 of the Land Acquisition Act, I 894 ('the Act'
for short), while granting approval to the proposal of the Land Acquisition
Collector regarding the award of compensation to the claimants could reduce
the suggested amount for different categories of lands sought to be acquired.    C

      The High Court relying upon its earlier decision has taken a view that
the Commissioner has no such power. It is true that the proviso to Section
11 lays down that no award shall be made by the Collector under sub--
section (I) of Section I I of the Act without the previous approval of the
appropriate Government or of such officer as the appropriate Government may      D
authorise in this behalf and acting on the said proviso thf' State of Bihar by
notification dated March 13, 1995 had autqorised the Commissioner of the
Division in such class of cases where the toful compensation exceeds Rupees
Five Lacs but does not exceed Rupees Fifteen Lacs, to be the authority under
the proviso to Section I 1(1) of the Act. The High Court's decision cannot be    E
sustained for the simple reason that the view which appealed to the High
Court relying upon its earlier decision has been upset by this Court in its
decision dated 30th November I 993 rendered in Civil Appeal arising out of
S.L.P. (c) No. 7837of1993. Following the said decision it must be held that
the Commissioner could have exercised powers under Section 11 (I) of the
Land Acquisition Act.                                                            F

       However, that would not be the end of the matter. Learned counsel for
the respondents submitted that according to him, as the lands acquired in this
case were about Ac. 1.15 gunths, the total award offered by the Collector
would not be Rs. 5 lacs but would be much less. Therefore, even assuming         G
that the Commissioner had authority to decide the question under the proviso
to Section 11 (I), if he was not the competent authority he could not have
reduced the amount of compensation. Mr. Singh, learned counsel appearing
for the State of Bihar, on the other hand, submitted that the award under
Section 11(1) is a comprehensive award and, therefore, if number ofpi!!ces of
lands are acquired by the same notification, the award would be a com 11osite    H
    142                     SUPREME COURT REPORTS [1997] SUPP. 5.S.C.R.

A   one awarding compensation to different claimants. And ifthe total amount of
    compensation offered in such an award exceeds Rs. 5 lacs, it would fall within
    the powers of the authority entrusted with the function of approval under the
    proviso to Section 11 ( 1) of the Act. Learned counsel for the respondents, on
    the other hand, submitted that if that was so, then question would arise
B   whether the total compensation computed by the Collector as payable to all
    the claimants together would work out to more than Rs. 15 lacs in which case
    the Commissioner would not be the competent authority to act under proviso
    to Section 11(1) of the Act but it would be the State Government as the award
    would exceed Rs. 15 lacs. As these aspects are not dealt with by the High
    Court, we deem it fit and proper to set aside the order under appeal and
C   remand the proceedings by restoring the writ petition on the file of the High      )

    Court with a request to proceed further in accordance with law after hearing
    the parties concerned. We make it clear that we are not expressing any
    opinion on the merits of the controversies raised before us on this aspect and
     it will be for the High Court to decide the same on its own in the light of the
     relevant evidence which may be produced before it. The appeal is allowed
D    accordingly, No costs.

    S.V.K.I.                                                      Appeal allowed.




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