Case: Reliance Petroleum Vs. Zaverchand Popatlal Sumaria

and 4 of the Land Acquisition (Companies) Rules as well as personal hearing under section 5A are mandatory and non-compliance of the same as factually found by the High Court cannot be cured and therefore, the High Court was justified in entertaining the case under Article 226 and quashing the proceedings. He also cited number of authorities in support of his submission. 10. We have carefully gone through the relevant records and considered the submissions both oral and written and we are of the view that on the facts which cannot be disputed, the High Court ought not have exercised its discretionary jurisdiction and quashed the notification, declaration and award under the Land Acquisition Act. 11. The facts which cannot be disputed are the following. The notification under section 4 dated 15.2.1993, which is the first step to initiate proceedings under the Land Acquisition Act, was issued on 11.3.1993. After the inquiry under section SA, (we proceed on the assumption that there was no strict compliance of the requirements) declaration under section 6 was published on 18.5.1994. Thereafter individual notices under section 9 were issued on 12.8.1994. In response to notices under section 9 claims were filed by the land owners including respondents Nos. 1 to 3 on 5.9.1994. Apart from that on 7.9.1994 a letter was addressed to the Land Acquisition Officer on behalf of the 89 individuals which included respondents 1 to 3 informing that the claims were filed on behalf of the 89. When the matter was pending before the Land Acquisition Officer and before an award was passed respondents Nos. 1 to 3 for themselves and on behalf of 89 persons addressed a letter on 25.10.1994 stating that they have no objection to the acquisition of land but they wanted only compensation as demanded therein. In fact they have given figures which ranged between 37500/- to 87000- per acre. However, the appellant company did not take advantage of that offer by responding to the same. Subsequently, on 12.12.1994 the Land Acquisition officer has passed the award and on the same date notices under section 12(2) were also issued to the individuals. It is claimed major portion of the land was taken possession of on 19.12.1994. It is, therefore, only on 20.12.1994 Special Civil Application No. 13525/94 was filed by respondents Nos. 1 to 3 on behalf of 89 persons challenging the Land Acquisition proceedings. 12. From the above facts which cannot be disputed as they were taken from records, it would be clear that respondents Nos. 1 to 3 (writ petitioners before the High Court) took their chance in the Award Proceedings and finding that the compensation as claimed by them was not given have moved the High Court. If really their intention was to challenge the acquisition as such they could have done immediately at least after the publication of declaration under section 6 or immediately after they received notices under section 9 of the Land Acquisition Act. This shows that the only object of the writ petitioners was to get the maximum price for the land acquired. No doubt they are entitled to the compensation as provided under the Land Acquisition Act. For that there is a separate procedure under the Act itself. As a matter of fact out of 19 individuals who are before us, represented by respondents Nos. 1 to 3, it is common ground 17 have already sought reference under section 18 of the Act claiming more compensation. Further, it is stated in the written submission filed on behalf of respondents Nos. 1 to 3 as under : "It may be pointed out that some of the land owners, as was stated by the counsel for the company, have entered into settlement with the company and have accepted the compensation. Evidently they will not be entitled to the benefit of the High Court judgment. However, it has been stated in a note given to the Court by the company that 19 persons owning 241.34 acres of the land sought to be acquired have not entered into any settlement with the company. The result would be that the Government would have no authority to take possession of these lands without fresh acquisition proceedings. It was stated on behalf of these respondents that the present market value of the land was about 7 lakhs per acre and therefore, the compensation for the said 241.34 acres would come to about Rs.17 crores. It was further stated on behalf of the respondents that if the company is willing to agree that these persons would be entitled to receive compensation according to the market value prevalent on the date of Supreme Courts judgment in this SLP, the respondents would be willing to accept the same." 13. Taking note of all these facts we have come to the conclusion that the High Court was not justified in entertaining the writ petition and also in exercising the discretionary jurisdiction to quash the 4(1) notifications section 6 declaration and award made under the Land Acquisition Act.14. In the view we take on the facts of the case, we do not think it necessary to discuss the question of law and to quote the cases cited by counsel on both sides.15. Notwithstanding the above, we feel that ends of justice would be met if we direct the appellant company to pay the enhanced compensation at the rate/rates paid to others who have accepted the same and withdrew from prosecuting the case in this Court, with interest @ 12% from 25.10.1994. If an affidavit is filed on behalf of the 19 persons accepting the above compensation in full quit within 8 weeks from this date, the same should be paid by the Company within 4 weeks from the date of filing of such affidavit. If the affidavit accepting the above compensation is not filed as above, then it will be taken that the 19 individuals are not accepting the compensation suggested, but desire to agitate the same in accordance with law.

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

Explanation:
1[ds]13. Taking note of all these facts we have come to the conclusion that the High Court was not justified in entertaining the writ petition and also in exercising the discretionary jurisdiction to quash the 4(1) notifications section 6 declaration and award made under the Land Acquisition Act.14. In the view we take on the facts of the case, we do not think it necessary to discuss the question of law and to quote the cases cited by counsel on both sides.15. Notwithstanding the above, we feel that ends of justice would be met if we direct the appellant company to pay the enhanced compensation at the rate/rates paid to others who have accepted the same and withdrew from prosecuting the case in this Court, with interest @ 12% from 25.10.1994. If an affidavit is filed on behalf of the 19 persons accepting the above compensation in full quit within 8 weeks from this date, the same should be paid by the Company within 4 weeks from the date of filing of such affidavit. If the affidavit accepting the above compensation is not filed as above, then it will be taken that the 19 individuals are not accepting the compensation suggested, but desire to agitate the same in accordance with law.