M/S Natesan Agencies (Plantations) vs State Rep. By The Secretary To ...

2 Hereinafter referred to as ‘the Mutt’.

The relevant background and factual matrix

2.8. While the proceedings aforesaid remained pending but no 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 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 the lands of the petitioner from the limits of the Sanctuary. It will defeat the very purpose of creating the Sanctuary’. 5 Hereinafter referred to as ‘the Act of 1894’.

7 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 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 The Mutt also preferred an intra-court appeal but, on 20.01.1992, the same was dismissed as withdrawn by the Division Bench with the direction to the Collector to expedite the proceedings for making the award of compensation. 2.10.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 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 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 of 1993, was 8 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 directions for making the award within four weeks from the date of 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 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, 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 6 The learned Single Judge directed in the order dated 11.08.1993 thus:

3. Though having failed in its attempt to get the aforesaid order dated 19.11.1993 annulled but, with reference to the observations made 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 15 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 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 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 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 of loss as follows: -

7.2. The learned Single Judge, thereafter, took up issue Nos. 4 and 5 together for determination and, in this regard, referred to the past proceedings commencing from the notification dated 06.03.1976 and 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 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 20 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 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 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 realisation. Issue No. 7 was separately decided in favour of the plaintiff in view of the findings on issue Nos. 4 and 5.

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 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 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.

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 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.

13. Taking up the material points for determination in this case, though we are satisfied that the suit in question is liable to be dismissed 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.

Claim for damages by the appellant – whether sustainable?

Limitation

CONCLUSION

23. The upshot of the discussion aforesaid is that the suit filed by 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.

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.