Case: Azmat Azim Khan Vs. Board Of Revenue, Uttar Pradesh, Allahabad &amp; Ors

liquidation of secured debts recoverable both from compensation and rehabilitation grant. The sections are set out hereunder:-"23-A. Compensation and rehabilitation grant to be placed at the disposal of the Collector. The Collector shall require the Compensation Officer and Rehabilitation Grants Officer as may be necessary to place at his disposal in pursuance of S. 70 of the U. P. Zamindari Abolition and Land Reforms Act, 1950, the amount of compensation money and rehabilitation grant payable to the landlord in respect of his proprietary rights in land reported to be liable to attachment or sale under the provisions of sub-section (2) of Section 19.23-B. Liquidation of secured debt recoverable from compensation and rehabilitation grant:- (1) Without prejudice to the provisions of Section 8 of the U. P. Zamindars Debt Reguction Act, 1952, the amount or the bonds on account of compensation or rehabilitation grant received by the Collector in pursuance of the requisition under Section 23-A shall be expended or utilised by the Collector in liquidation of the amount of the secured debt which having regard to the provisions of the U. P. Zamindars Debt Reduction Act, 1952 was secured on the proprietary rights in land in respect of which such money has been received.(2) If any balance out of the compensation and rehabilitation grant received by the Collector in pursuance of the requisition under Section 23-A remains in the hands of the Collector after utilising the same in accordance with the provisions of sub-section (1), such balance shall be utilised by the Collector in discharging the debts, other than the debts, referred to in the said sub-section in order of priority."Both these sections of the 1934 Act refer to Section 70 of the 1950 Act. Section 70 of the said Act is as follows:"Compensation money to be placed at the disposal of the Court or authority: Where before any Court or authority any suit or proceeding is pending which directly or indirectly affects or is likely to affect the right of any person to receive the whole or part of the compensation determined under Chapter III, the Court or authority may require the Compensation Officer to place at its disposal the amount so payable and thereupon the same shall be disposed of in accordance with the orders of such Court or authority."10. The Collector, therefore, by reason of the provisions of the 1934 Act and the 1950 Act requires the Compensation Officer and the Rehabilitation Officer to place the amount of compensation at this disposal. The Collector on receipt of the grant is to expend or utilise the same in liquidation of the amount of the secured debt and if the balance remains it is to be utilised in discharging the debts other than those mentioned in Section 23-B (1) of the 1934 Act, in order of priority.11. By reason of the provisions contained in Section 70 of the 1950 Act and Section 23-A of the 1934 Act the compensation money is sent for by the Collector for the purpose of liquidation of secured debt on which decree is passed. The Compensation Officer under Rule 77 (1) of the Zamindari Abolition and Land Reforms Rules, 1952 could issue notice to the intermediary directing him to take delivery of the bonds. The issue of a notice would not clothe the intermediary with the right to take away the bonds because under Section 18 of the 1934 Act the decree-holder becomes entitled to recover the amount of the decree in the manner and to the extent mentioned in the 1934 Act. The proviso to Section 18 of 1934 Act enacts that the secured debt shall be recoverable from the compensation and rehabilitation grants as though the security had not been extinguished. The question, in the present case, is whether the appellant could lawfully obtain delivery of the bonds from the Compensation Officer. Sections 23-A and 23-B of the 1934 Act require that the amount or the bonds on account of compensation or rehabilitation grant received by the Collector shall be expended or utilitsed by the Collector in liquidation of the amount of the secured debt. Under Section 23-B of the 1934 Act the bonds are received by the Collector in pursuance of the requisition under Section 23-A of the 1934 Act. The absence of the service of a requisition cannot confer a right on the judgment-debtor to take away the compensation money or bonds. The principle is actus curiae neminem gravabit.12. The decree-holder under the provisions of the relevant statutes was entitled to be paid out of the compensation grant monies in satisfaction of the decree. If the Collector had required the Compensation Officer under Section 23-A of the 1934 Act to place at his disposal pursuant to Section 70 of the 1950 Act the compensation money, the bonds could not have been taken delivery of by the appellant. The Board of Revenue rightly gave the directions to secure compliance with the provisions of the statute and performance of statutory duty by the Collector as well as the Compensation Officer. The appellants were not entitled to receive the bonds without satisfying the decree. The appellants were wrong in doing so. The appellant could not take advantage of his own wrong. That is why the Board of Revenue correctly directed the stoppage by the treasuries of payment of instalment money on the bonds. "The other direction by the Board of Revenue requiring the Compensation Officer to hand over the bonds remaining with the Compensation Officer was in aid of valid compliance with Sections 23-A and 23-B of the 1934 Act as well as Section 70 of the 1950 Act.13. The jurisdiction and authority of the Board of Revenue in the present appeal touched directly on the performance of statutory obligations by statutory authorities. The compensation bonds are required by the statute to go to the Collector for liquidation of secured debts. The Judgment-debtor is not entitled to the compensation bonds without liquidation of the debts in accordance with the provisions of the statute.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]10. The Collector, therefore, by reason of the provisions of the 1934 Act and the 1950 Act requires the Compensation Officer and the Rehabilitation Officer to place the amount of compensation at this disposal. The Collector on receipt of the grant is to expend or utilise the same in liquidation of the amount of the secured debt and if the balance remains it is to be utilised in discharging the debts other than those mentioned in Section(1) of the 1934 Act, in order of priority.11. By reason of the provisions contained in Section 70 of the 1950 Act and Sectionof the 1934 Act the compensation money is sent for by the Collector for the purpose of liquidation of secured debt on which decree is passed. The Compensation Officer under Rule 77 (1) of the Zamindari Abolition and Land Reforms Rules, 1952 could issue notice to the intermediary directing him to take delivery of the bonds. The issue of a notice would not clothe the intermediary with the right to take away the bonds because under Section 18 of the 1934 Act thebecomes entitled to recover the amount of the decree in the manner and to the extent mentioned in the 1934 Act. The proviso to Section 18 of 1934 Act enacts that the secured debt shall be recoverable from the compensation and rehabilitation grants as though the security had not been extinguished. The question, in the present case, is whether the appellant could lawfully obtain delivery of the bonds from the Compensation Officer. Sections23A and 23Bof the 1934 Act require that the amount or the bonds on account of compensation or rehabilitation grant received by the Collector shall be expended or utilitsed by the Collector in liquidation of the amount of the secured debt. Under Sectionof the 1934 Act the bonds are received by the Collector in pursuance of the requisition under Sectionof the 1934 Act. The absence of the service of a requisition cannot confer a right on theto take away the compensation money or bonds. The principle is actus curiae neminem gravabit.12. Theunder the provisions of the relevant statutes was entitled to be paid out of the compensation grant monies in satisfaction of the decree. If the Collector had required the Compensation Officer under Sectionof the 1934 Act to place at his disposal pursuant to Section 70 of the 1950 Act the compensation money, the bonds could not have been taken delivery of by the appellant. The Board of Revenue rightly gave the directions to secure compliance with the provisions of the statute and performance of statutory duty by the Collector as well as the Compensation Officer. The appellants were not entitled to receive the bonds without satisfying the decree. The appellants were wrong in doing so. The appellant could not take advantage of his own wrong. That is why the Board of Revenue correctly directed the stoppage by the treasuries of payment of instalment money on the bonds. "The other direction by the Board of Revenue requiring the Compensation Officer to hand over the bonds remaining with the Compensation Officer was in aid of valid compliance with Sections23A and 23Bof the 1934 Act as well as Section 70 of the 1950 Act.13. The jurisdiction and authority of the Board of Revenue in the present appeal touched directly on the performance of statutory obligations by statutory authorities. The compensation bonds are required by the statute to go to the Collector for liquidation of secured debts. Theis not entitled to the compensation bonds without liquidation of the debts in accordance with the provisions of the statute.