Case: N. Boman Behram (Dead) By L. Rs. &amp; Anr Vs. State Of Mysore &amp; Anr

2. The appellant was the owner of several acres of land at Banglore. The appellant developed an agricultural and horticultural Estate on that land. In the year 1967 there was a proposal to acquire the aforesaid property of the appellant. The land acquisition proceedings commenced. Possession of the property was taken in the month of April, 1967. The notification under Section 4 of the Land Acquisition Act was made in the month of May, 1967. A declaration under Section 6 of the Land Acquisition Act was made on 1 July, 1967. In the month of August, 1967 the appellant preferred claims. The claim for compensation preferred by the appellant was for Rs. 18,83,650/-.3. In the month of September, 1967 the Government paid a sum of Rs. 6,50,000/- as an instalment. On 30 August, 1968 the Government wrote to the Divisional Commissioner that the Government approved the award for the total of Rs. 6,57,870.15 in respect of land measuring 86 acres 2 gunthas.4. The appellant made an application under Article 226 of the Constitution inter alia for an order that the proviso to section 11 and Sec. 15-A of the Mysore Land Acquisition Act 17 of 1961, hereinafter referred to as the 1961 Act, be struck down and for further order that a writ of prohibition be issued to the Deputy Commissioner not to follow the instructions given by the Government in their approval letter dated 30 August, 1968. The appellant also asked for a writ of mandamus directing the Land Acquisition Officer to maintain their own valuation expressed in the draft award dated 24 July, 1968 for the sum of Rs. 13,00,000/-.5. The High Court held that the proviso to Section 11 of the 1961 Act is valid. The reason given by the High Court is that the Deputy Commissioner is an agent of the State Government and the compensation fixed in the award is an offer made on behalf of the Government. The reason for the proviso to Section 11 of the 1961 Act is to eliminate rare cases of Land Acquisition Officers being influenced by extraneous considerations in determining the amount of compensation in excess of the real market value.

Court's reasoning:
Act.10. The proviso states that no award shall be made without the previous approval of the State Government. An award made under Section 11 of the 1961Act is an offer of compensation. The Deputy Commissioner makes an offer. The Deputy Commissioner us an agent of the Government. The Government is the ultimate authority to approve the award. Therefore, the proviso enjoins that no award shall be made without the previous approval of the State Government. It is wrong to suggest that any opinion of the Deputy Commissioner is being overreached by the State Government. The Deputy Commissioner is not acting in judicial or quasi-judicial capacity in making the award under Section 11 of the 1961 Act. The Deputy Commissioner acts in an administrative capacity as an agent of the State Government. The area of authority of the Deputy Commissioner is subject to approval by the State Government. The finality of the award under Section 11 of the 1961 Act rests with the State Government.11. Counsel for the appellant submitted that there were no guidelines for the approval by the State Government under the proviso to Section 11 of the 1961 Act. This is an erroneous submission. The Government in approving the award has to take into consideration the provisions of the Act. Any grievance with regard to the quantum of compensation or any other grievance on account of compensation is capable of being remedied under the provisions of the Act.12. The award made under Section 11 of the 1961 Act is required to be filed in the Collectors office. Under Section 15 of the 1961 Act the Collector in determining the amount of compensation shall be guided by the provisions contained in Sections 23 and 24 of the 1961 Act. Any person interested who has not accepted the award may, by written application to the Collector, require that the matter be referred by the Collector for the determination of the Court under Sec. 18 of the 1961 Act. The Court in determining the amount of compensation to be awarded shall take into consideration matters provided in Section 23 of the 1961 Act. Under Section 26 of the 1961 Act the award shall be deemed to be a decree. These provisions indicate that an award under Section 11 of the 1961 Act is not final as far as the appellant is concerned. The matters to be considered in determining the compensation as embodied in Section 23 of the 1961 Act are to be kept in mind not only by the Collector under Section 15 of the 1961 Act but also by the court under Section 23 of the 1961 Act.