JAIPUR DEVELOPMENT AUTHORITY Vs MAHESH SHARMA
Bench: MUKUNDAKAM SHARMA,ANIL R. DAVE, , ,
Case number: C.A. No.-008590-008590 / 2003
Diary number: 8774 / 2003
Advocates: S. K. BHATTACHARYA Vs
A. S. BHASME
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REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 8590 OF 2003
Jaipur Development Authority ……. Appellant
Versus
Mahesh Sharma & Anr. ......Respondents
With
CIVIL APPEAL NO. 9158 OF 2003
With
CIVIL APPEAL NO. 9161 OF 2003
With
CIVIL APPEAL NO. 9162 OF 2003
JUDGMENT
Dr. Mukundakam Sharma, J.
CIVIL APPEAL NO. 8590 OF 2003
1. We propose to dispose of these appeals together since the
issues in these matters are interconnected.
2. A narration of the facts leading to the filing of the present
appeal would indicate as to how money and land of the
Government has been squandered away by some of the
Government officials of Jaipur by joining hand with certain
private parties. The facts of the present case would also
reflect how unscrupulous and adventurous people in
connivance with bureaucrats and persons in power have
not only sought to give undue advantage of giving
compensation for land but also sought to grab valuable
lands causing willful loss to the Government exchequer
and gain unto themselves. Facts of the present case
appropriately reflects the earlier observations of this court
in Secy., Jaipur Development Authority v. Daulat Mal
Jain, reported at (1997) 1 SCC 35 wherein it was stated
that public policy cannot be a camouflage for abuse of
power and trust entrusted with a public authority or
public servant for the performance of public duty and an
illegal allotment of land founded upon ultra vires and
2
illegal policy of allotment made to some other persons
wrongly would not form a legal premise to ensure it to the
respondent or to repeat or perpetuate such illegal order
nor would it be legalized.
3. These points find close imitation in the facts of this case,
which we may briefly narrate here. This appeal arises out
of an order passed by the Rajasthan High Court in a
contempt petition filed against the appellant, Jaipur
Development Authority, for failure to comply with an order
of the High Court of Rajasthan passed in 1984 to award
the respondent not only compensation for the land
acquired but also directing for allotment of a plot of
developed land admeasuring 2500 sq. yards. On
18.02.1952, the Rajasthan Land Reforms and Resumption
of Jagir Act (hereinafter “Jagir Act” for short) came into
force whereby all Jagir lands from the commencement of
the Act was made liable to payment of land revenue to the
Government. With the coming into force of the aforesaid
Act, land measuring 29 Bighas and 17 Biswas under the
occupation of Idol of which Mahant Ram Narain was the
3
Manager, being the sole priest of the temple, also vested
with the Government. The said land measuring 29 Bighas
and 17 Biswas was resumed by the Government effective
from 01.08.1960. A Notification, however, was issued
under Section 4(1) of the Rajasthan Land Acquisition Act
(hereinafter “the Act” for short), which was published in
the Rajasthan Gazatte on 09.06.1960, to acquire 552
Bighas and 8 Biswas of land in village Bhojpura and Chak
Sudershanpura Tehsil Jaipur. The land which was sought
to be acquired under this Notification also included the
aforesaid 29 Bighas and 17 Biswas of land, which is
included in Khasra Nos. 257, 258, and 259, which was
popularly known as Lal Kothi scheme, which is adjacent to
Jaipur city for a planned development of the city. On
03.05.1961, a Notification under Section 6 of the
Rajasthan Land Acquisition Act came to be published in
the Rajasthan Gazette for the same area of land. The sole
priest of the temple submitted a statement of his claim on
16.09.1965 for payment of compensation by treating his
Maufi rental income of Rs. 1,000/- before the Jagir
Commissioner. An order was passed on 17.10.1968 by
4
the Jagir Commissioner sanctioning the payment of a sum
of Rs. 2250/- as interim compensation and rehabilitation
grant payable to the Jagirdar Mahant Ram Narain under
Section 36 of the Rajasthan Land Reforms and
Resumption of Jagirs Act, 1952. The aforesaid
compensation was received by Jagirdar Mahant Ram
Narain on 29.10.1968 as interim compensation under the
Jagir Act.
4. Despite the aforesaid fact of vesting of the land on the
State Government by virtue of the provisions of Jagir Act
and despite the payment of interim compensation under
Jagir Act, an Award was passed by the Land Acquisition
Officer on 29.04.1971, determining a sum of Rs.
2,62,680/- as compensation in lieu of the acquisition of
the land. Surprisingly and rather peculiarly, the Land
Acquisition Officer apart from determining the
compensation for the land, also recommended allotment of
developed plot of land measuring 2,500 sq. yds. to be
given to the respondent. The Government of Rajasthan
taking the stand that the aforesaid issuance of
5
notifications under Sections 4 and 6 of the Act as also
passing of the Award on 29.04.1971 was a nullity, issued
an order dated 26.09.1973 deacquiring the land under
Section 48 of the Rajasthan Land Acquisition Act stating
therein that the possession of the land in question stood
resumed on the day under the Jagir Act. On 27.11.1973,
the Land Acquisition Officer moved an application for
withdrawal of reference on the ground that the land
already stood deacquired, consequent upon which the
learned Civil Judge, Jaipur City, dismissed the reference
on 14.05.1974 as withdrawn. The respondent seems to
have been aggrieved by the aforesaid order and
accordingly preferred an application on 06.09.1974 before
the Land Acquisition Officer for payment of compensation
amount, which was rejected by the Land Acquisition
Officer holding inter alia that since the land stood resumed
under the Jagir Act there is no question of payment of
compensation.
5. The Government officials adopted the stand that the land
was Government land after its vesting with the
6
Government under the provisions of the Jagir Act. The
said position was also fortified by entry made in the Memo
of Entries (Jamabandi) of village Bhojpura Tehsil, Jaipur
District, Jaipur, wherein the entire land measuring 29
Bighas and 17 Biswas was shown with Khasra numbers
as government land and the said land stood as
Government land for the period between Samvat 2015 to
2034 which is years 1958 to 1977. The aforesaid
jamabandi entries, therefore, clearly indicate the land in
the revenue record was recorded as Government land
during the period from 1958 to 1977. But despite the said
fact, a Notification under Section 4(1) of the Act was
issued for acquiring the land by the State Government
followed by a Notification under Section 6 of the Act.
Further, not only did an award come to be passed on
29.04.1971 by the Land Acquisition Officer determining a
sum of Rs. 2,62,680/- as compensation in lieu of the
acquired land, but the Land Acquisition Officer also
recommended the allotment of additional land measuring
2500 sq. yds. of developed land to be given to the
respondent.
7
6. The respondent being aggrieved by the issuance of the
aforesaid Notification by the Government under Section 48
of the Rajasthan Land Acquisition Act preferred a writ
petition before the Rajasthan High Court praying for the
quashing and setting aside of the Notification dated
26.09.1973 with a further prayer to direct the appellant
herein to make immediate payment of an amount of Rs.
2,62,680/- awarded under the award dated 29.04.1971
and also to allot the land measuring 2500 sq. yds in
compliance of the award. The said writ petition was heard
by the learned single Judge of the High Court, who allowed
the writ petition filed by Mahant Ram Narain and pursued
by his son, the present respondent No. 1 as Ram Narain
himself expired before the judgment was pronounced. The
High Court while allowing the writ petition quashed the
Notification issued by the State Government under Section
48 of the Rajasthan Land Acquisition Act with a further
direction to the State Government to deposit the
compensation amount in the court of the Civil Judge,
8
Jaipur within three months and also to allot a plot of land
of 2500 sq. yds.
7. Aggrieved by the aforesaid Judgment and Order passed by
the learned Single Judge, the appellant herein preferred a
DB Civil Special Appeal before the Division Bench of the
High Court of Rajasthan contending inter alia that the
land acquisition proceedings were void ab initio as the land
had already vested in the State and therefore, no benefit
could be granted to the respondent under illegal and void
proceedings, particularly when the entire land acquisition
proceedings was a nullity. It was also contended before
the Division Bench of the High Court that the predecessor-
in-interest of the respondent had accepted the interim
compensation under the Jagir Act, which indicates that he
explicitly admitted resumption of the land, and therefore,
there was no occasion to take possession under the Land
Acquisition Act. The Division Bench of the High Court
admitted the appeal filed by the appellant herein but
ultimately dismissed the said appeal on 06.02.1996 on the
ground that the State had failed to take necessary steps.
9
On 17.04.2002, an application for recalling the order
dated 06.02.1996 was filed and the High Court dismissed
the matter holding inter alia that the application was
pending for last six years. As against the aforesaid order a
special leave to appeal petition was filed in this Court,
which was also dismissed on 11.10.2002.
8. It appears thereafter the respondent preferred a fresh
petition before the High Court under Article 226 of the
Constitution on 22.07.2002 for contempt of court in view
of the alleged non-compliance of the order passed by the
High Court. On 27.11.2002, the Division Bench of the
High Court took up the aforesaid writ petition and rejected
the same.
9. The contention of the appellant before the High Court was
that the order dated 27.11.2002 was non est and a nullity.
Before the High Court it was also stated by the appellant
that not only was the initiation of the acquisition
proceedings by issuance of notifications under Sections
4(1) and 6 of the Land Acquisition Act a nullity, but even
10
the passing of the award was also a nullity. In support of
the contentions, reliance was placed on the decisions of
this Court in Jaipur Development Authority v. Radhey
Shyam, reported at (1994) 4 SCC 370 and Secretary,
Jaipur Development Authority v. Daulat Mal Jain,
reported at (1997) 1 SCC 35, as also the case of Narpat
Singh & others vs. Jaipur Development Authority &
Another reported at (2002) 4 SCC 666.
10.The Division Bench, however, by the impugned order
dated 27.11.2002, held that the Division Bench cannot
enter into a controversy so as to find out whether the
order dated 17.05.1984 is a nullity once the order dated
17.05.1984 has attained its finality upto the Supreme
Court, and therefore, a direction was issued to the
appellant herein to carry out the order. Being aggrieved by
the aforesaid order dated 27.11.2002 passed by the
Division Bench of the High Court, the appellant preferred
the present Special Leave Petition in which initially a
notice was issued and an interim order was passed staying
the operation of the impugned order. However, an order
11
came to be passed on 03.11.2003 by this Court granting
leave and also making interim order absolute till the
disposal of the appeal. It was, however, ordered by this
Court in the same order dated 03.11.2003 that the
amount awarded would be deposited before the Registrar
of the High Court within a period of four weeks and that
the same would be permitted to be withdrawn by the
respondents on furnishing security to the satisfaction of
the Registrar of the High court. Now the appeal being
ready in all respects was listed for hearing and in the light
of the aforesaid background facts we heard the learned
counsel appearing for the appellant in this appeal but
none appeared for the respondent despite the matter being
heard on several dates.
11.Mr. S.K. Bhattacharya, counsel appearing for the
appellant submitted before us that the land measuring 29
Bighas and 17 Biswas having been vested with the
Government, and with the legislation and enforcement of
the Jagir Act the said land having been resumed, and
there being a case of resumption of the entire land by the
12
Government effective from 01.08.1960, there could not
have been any notification under Section 4(1) and 6 of the
Land Acquisition Act seeking to acquire land belong to the
Government itself, and therefore, entire initiation of the
proceedings under the Land Acquisition Act and passing of
the award under the Land Acquisition Act was a nullity. It
was also submitted by him that the land in question
belonged to the Idol and not to Ram Narain, who was only
a Mahant being the sole priest of the temple and therefore
passing of the Award of compensation in favour of Ram
Narain, the predecessor-in-interest of the respondent was
not only illegal, but also a nullity, and therefore, even on
that ground the award is non est in the eyes of law. His
further submission was that in any case the order passed
by the Land Acquisition Officer directing allotment of land
measuring 2500 sq. yds. in favour of Ram Narain was void
ab initio and that the aforesaid directions of the Land
Acquisition Officer were contrary to and unknown to the
law of the land. He also drew our attention to an
agreement dated 21.04.2001, copy of which is placed on
record, whereby the respondent no. 1 herein had entered
13
into an agreement for the development of land measuring
3 Bighas and 15 Biswas covered by Khasra No. 130 with
Messrs Ganpati Royal Estate, who is described as
partner/purchaser. In the said agreement, it was stated
by the respondent no. 1 that the aforesaid property is
entered in the revenue record and papers in the name of
father of first party Shri Ram Narayan Sharma and
consequent upon his death, the owner of the aforesaid
land, proprietor is first party and land owner. It was
further stated in the said agreement that the aforesaid
land is under acquisition proceeding initiated by the
Government of Rajasthan but no award or compensation
has yet been paid to the land owner – respondent for
which litigation is pending, and therefore, the agreement is
being executed for development of the aforesaid land
under the said agreement.
12.Our attention was also drawn by the learned counsel
appearing for the appellant to a Circular dated
13.12.1991, which was issued by the Deputy Secretary,
Admn., Government of Rajasthan, Jaipur to the Deputy
14
Director, Bikaner, Settlement Commissioner, Jaipur. The
subject of the said Circular described the Entry of the
name of Pujari along with Mandir Dev Statue for khatedari
of land. In the said Circular, it was stated that the
question has been raised time and again that when such
Mandirs which have their personal lands, whether the
name of the Pujari should be entered in the revenue
records (Jamabandi) along with the Idol (Dev Statue). In
paragraph 3 of the said Circular, it was also clarified that
the right position is that the name of the Pujari or
Shiwayat should not be mentioned in the Jamabandi.
13.In view of the aforesaid position and for the protection of
the Dev statue and in order to check the unwarranted
litigation relating to the land of the Dev statue, it was
decided that in the Jamabandi to be prepared by the
Revenue Department or by the Settlement Department in
future, the name of Pujari will not be mentioned along
with the name of the Dev statue. Another direction which
was issued was that in Jamabandis which have been
prepared and presently in force, the name of Pujari
15
wherever it occurs alongwith name of Dev statue be struck
off and be mentioned in the aforesaid register. It was also
informed under the aforesaid Circular that the aforesaid
directions shall come into force with immediate effect.
14.During the course of his arguments, the learned counsel
appearing for the appellant relied upon the copy of
Jamabandi for the period between 1958 to 1977, wherein
the entire 29 Bighas and 17 Biswas of land was shown to
have been registered as Government land in the
Jamabandi.
15.The facts of the present case, which we have delineated at
length, clearly disclose that the entire land of 29 Bighas
and 17 Biswas stood in the name of the Government and
has been shown as Government land in the Jamabandi for
the period between 1958 to 1977. That entry came to be
entered into in view of the promulgation of the Jagir Act
w.e.f. 18.02.1952 and was fortified by the resumption of
the entire land effective from 01.08.1960. The order of the
Jagir Commissioner dated 17.10.1968 is also placed on
16
record. A bare perusal of the said order proves and
establishes that a sum of Rs. 2250/- was sanctioned as
interim compensation and rehabilitation grant payable to
the Jagirdar Ram Narain under Section 36 of the
Rajasthan Land Reforms and Resumption of Jagirs Act,
1952. There could have been a mistake in describing Ram
Narain as Jagirdar as the land belonged to the Idol/Dev
statue and Ram Narain being only a priest of the said
temple. Such description of Ram Narain as Jagirdar was
also not in tune with the circular dated 13.12.1991. This
fact gets established even by the application filed before
the Jagir Commissioner by showing Ram Narain as the
Pujari and Manager and showing the Idol as the Jagirdar.
In paragraph 1 of the said application filed by the
predecessor-in-interest of respondent no. 1 herein, it was
clearly stated that there is a temple with an Idol of Lord
Hanuman Ji in which Ram Narain is the only Pujari and
Manager. He had stated in the said application that with
the vesting and resumption of the land, he is entitled to
get compensation under Section 22 of the Land Reforms
and Resumption of Jagir Act, which should be paid to him.
17
Pursuant to the same, order for interim compensation was
made by the Jagir Commissioner, Rajasthan. The
predecessor-in-interest of respondent no. 1 received the
interim compensation thereunder without any protest and
demur. Consequently, he was, at the most, entitled to
receive balance compensation under the Jagir Act.
16.Despite vesting of the land with the Government under
the provisions of the Jagir Act and also resumption of the
said land measuring 29 Bighas and 17 Biswas by the
Government, a notification proposing acquisition of the
said land was issued by the Government under Section
4(1) of the Act followed by the notification under Section 6
of the Act. The Land Acquisition Officer even proceeded
to pass an award in respect of the land, which already
belonged to the Government, by determining
compensation, and proceeded further in directing
retention of interim compensation paid under Jagir Act
and also by directing the allotment of a plot of developed
land measuring 2500 sq. yds. Although there was no law
supporting such action, the said action on the part of the
18
Land Acquisition Officer directing the payment of
compensation and also allotting a plot of land in favour of
the respondent indicates as to how Government officials,
who are protectors of the Government property, abuse
their power and trust under the camouflage of
performance of their public duty. The respondent no. 1
entering into a private agreement describing himself as the
owner of the land is in itself a disclosure as to how
property belonging to an Idol is being frittered away by a
trustee who is a Manager for promoting his self interest
and self gain. If on the one hand, a Government officer of
the status of Land Acquisition Officer, who is entrusted
with a public authority while performing a public duty has
sought to make an illegal acquisition of land and also
making illegal allotment of land, on the other hand it is a
trustee and the Manager who has abused his position and
has, following the trust reposed on him, sought to fritter
away a property belonging to the Idol.
17.Unfortunately, the learned Single Judge while hearing the
first writ petition completely ignored the aforesaid position
19
and instead issued a direction for not only for retaining
payment of the interim compensation under the Jagir Act
but also ordered for payment of compensation under the
Land Acquisition Act along with interest, but also upheld
the order of allotment of additional land. The Division
Bench of the High Court dismissed the appeal filed
therefrom on the ground that the appellant has failed to
take appropriate steps. The special leave petition by this
Court was dismissed for non-prosecution as the appellant
failed to take steps in the appeal. In the subsequent writ
petition, the Division Bench of the High Court by the
impugned order directed for payment of compensation,
totally ignoring the contention of the appellant that such
an order is a nullity in the eyes of law which submission
was enforced by at least three decisions of this Court.
18.In Jaipur Development Authority v. Radhey Shyam,
reported at (1994) 4 SCC 370, at page 372, it was held by
this Court that the power expressly given to the Land
Acquisition Officer is only in respect of enquiry into the
true area of the land acquired and determination of the
20
compensation which in his opinion should be allowed to
the acquired land and apportionment of the compensation
among the claimants who appeared before him or persons
known or believed to be interested in the land whether
appeared or not and that it excludes by implication any
other power other than that given to the Collector by
Section 11. It was also held in the said decision that the
award is only an offer made after consideration of the
above matters and is only made subsequent to reference
and determination made under sub-section (1) of Section
23 of the amounts awardable thereunder or any other
amount awarded under any or all other clauses
thereunder including sub-section (2). Subsequently, an
award shall be made by court and such award by
operation of sub-section (2) of Section 26 would be deemed
to be a decree. In Para 7, this Court laid down that a
reading of sub-section (4) of Section 31 indicates that the
Land Acquisition Officer has no power or jurisdiction to
give any land under acquisition or any other land in lieu of
compensation. The contention of the learned counsel for
the claimants was that while awarding compensation, the
21
Collector (Land Acquisition Officer) has a higher power
than the limited power given under sub-section (3) of
Section 31. It was held that such a position is not tenable,
and would run counter to the scheme envisaged in the Act
and such interpretation, if accepted would result in
defeating the public purpose. This Court clearly held in
the said decision that what is executable is only an award
under Section 26(2), namely, the amount awarded or the
claims of the interests determined of the respective
persons in the acquired lands and that the decree cannot
incorporate any matter other than the matters determined
under Section 11 or those referred to and determined
under Section 18 and no other.
19. The subsequent decision of this Court in Secy., Jaipur
Development Authority v. Daulat Mal Jain, reported at
(1997) 1 SCC 35 is almost to the same effect. In the said
decision, this Court has laid down almost to the same
extent while interpreted the provisions of the Rajasthan
Land Acquisition Act, 1953. This Court held in
paragraphs 11, 12 and 13 as under:
22
“11. ……… In a democratic society governed by rule of law, power is conferred on the holder of the public office or the authority concerned by the Constitution by virtue of appointment. The holder of the office, therefore, gets opportunity to abuse or misuse the office. The politician who holds public office must perform public duties with the sense of purpose, and a sense of direction, under rules or sense of priorities. The purpose must be genuine in a free democratic society governed by the rule of law to further socio-economic democracy. The Executive Government should frame its policies to maintain the social order, stability, progress and morality. All actions of the Government are performed through/by individual persons in collective or joint or individual capacity. Therefore, they should morally be responsible for their actions.
12. ……..The Government acts through its bureaucrats, who shape its social, economic and administrative policies to further the social stability and progress socially, economically and politically. Actions of the Government, should be accounted for social morality. Therefore, the actions of the individuals would reflect on the actions of the Government. The actions are intended to further the goals set down in the Constitution, the laws or administrative policy. The action would, therefore, bear necessary integral connection between the ‘purpose’ and the end object of public welfare and not personal gain. The action cannot be divorced from that of the individual actor. The end is something aimed at and only individuals can have and shape the aims to further the social, economic and political goals. The ministerial responsibility thereat comes into consideration………
13. All purposes or actions for which moral responsibility can be attached are actions performed by individual persons composing the department. All government actions, therefore, means actions performed by individual persons to further the objectives set down in the Constitution, the laws and the administrative policies to develop democratic traditions, social and economic democracy set down in the Preamble, Part III and Part IV of the Constitution. The intention behind the government actions and
23
purposes is to further the public welfare and the national interest. Public good is synonymous with protection of the interests of the citizens as a territorial unit or nation as a whole. It also aims to further the public policies. The limitations of the policies are kept along with the public interest to prevent the exploitation or misuse or abuse of the office or the executive actions for personal gain or for illegal gratification.”
What the Court has said in paragraphs 14 and 15, have
been extracted right at the beginning of this Judgment.
20. In State of Orissa v. Brundaban Sharma, reported at
1995 Supp (3) SCC 249, this Court has held that the
Land Acquisition Act does not contemplate or provide for
the acquisition of any interest belonging to the
Government in the land on acquisition. It reiterated the
settled position of law that the Government being the
owner of the land need not acquire its own land merely
because person mistakenly resorted to acquire the land
and later on mistakenly published notifications under
Sections 4 and 6 of the Act.
21. The aforesaid position was reiterated in a subsequent
decision of this Court in Meher Rusi Dalal v. Union of
India, reported at (2004) 7 SCC 362. In paragraphs 15
24
and 16 of the said judgment, this Court has held that the
High Court has clearly erred in setting aside the order of
the Special Land Acquisition Officer declining a reference
since it is settled law that in land acquisition proceedings
the Government cannot and does not acquire its own
interest. While laying down the aforesaid law, this Court
has referred to its earlier decision in the case of Collector
of Bombay v. Nusserwanji Rattanji Mistri & Ors.
reported at (1955) 1 SCR 1311.
22. We may at this stage appropriately refer to the decision of
this Court in the case of Kiran Singh & Ors. v. Chaman
Paswan & Ors. reported in (1955) 1 SCR 117. In the said
case this Court has held that judgment passed by a Court
without jurisdiction is a nullity and such a judgment could
be challenged even in execution or collateral proceedings.
Court on page 121 at para 6 held thus:
“……………………… It is a fundamental principle well-established that a decree passed by a Court without jurisdiction is a nullity, and that its invalidity could be set up whenever and wherever it is sought to be enforced or relied upon, even at the stage of execution and even in collateral proceedings. ………………”
25
23. In the case of State of Jammu & Kashmir v. Sanahullah
Mir reported in (1980) 3 SCR 281 this court dealing with
a case regarding resumption of land on pages 286-287 at
para 9 held thus: -
“………………… On going through these documents it appears to us that under the influence of some high-ups a case was made out for payment of compensation to the respondent in respect of the land acquired 60 years ago by acquiring it again which naturally led to the determination of the market value of the land in or about the year 1955. The State Exchequer cannot be made to suffer for such wanton and illegal actions of its officers. The land had been resumed long ago. It belonged to the State. The whole proceeding of land acquisition was a nullity. The Award resulting therefrom was also-ultra vires and a nullity. It mattered little whether the proceeding was taken as a result of the fraud or mistake or otherwise. We are accepting the findings of the courts below that the respondent had not practised and fraud nor was the land acquisition proceeding started as a result of any mistake of fact. It was either as a result of gross negligence or a deliberate act on the part of the officials at the instance of some high-ups to help the respondent. It is well-settled that there is no question of any acquisition of the State's own land as was purported to be done in this case.”
24. In view of the aforesaid decisions of this Court, it is crystal
clear that the issuance of notifications under Sections 4
and 6 of the Act as also the Award passed for acquisition
of the land was a nullity and the subsequent action of the
Government de-requisitioning land by issuance of
notification under Section 48 was just and proper as that
26
was an action for rectification of the mistake. The
subsequent land acquisition officer was justified in
refusing to refer to the Reference Court in view of the fact
that the land was already a Government land and was so
described in the revenue record itself. The Land
Acquisition Officer, who passed the award, committed an
illegality by not only determining the compensation under
the Land Acquisition Act but also directing for retention of
the interim compensation paid under Jagir Act and also in
directing for allotment of a developed plot of land
admeasuring 2500 sq. yds. Initiation of the acquisition
proceedings as also award passed by the said Land
Acquisition Officer is nullity in the eyes of law and void ab
initio and therefore could be held so and set aside in a
proceeding of this nature. We, therefore, hold that the
directions for payment of compensation under the
Rajasthan Land Acquisition Act to the predecessor-in-
interest of the respondent no. 1 and subsequently to
respondent no. 1 are illegal and without jurisdiction as the
award passed by the land acquisition officer was only an
offer which itself was a nullity. Payment made to the
27
predecessor-in-interest of the respondent no. 1 and also to
the respondent no. 1 as its successor is also held
unwarranted as the said orders were passed considering
them as the owners of the land and not as a trustee or
manager. Therefore, the said orders directing for payment
of compensation and withdrawal of the compensation by
respondent no. 1 is held to be illegal and without
jurisdiction. We set aside the said orders by allowing the
appeal filed by the appellant. The amount deposited
pursuant to the orders of this Court, if, has been
withdrawn by respondent no. 1 shall be realized from him
through the process of the High Court. The Registrar
General of the High Court would take necessary steps to
realise the amount paid to the respondent by invoking the
security furnished and if necessary by resorting to remedy
in accordance with law. In terms of the aforesaid order the
appeal is allowed but we leave the parties to bear their
own costs.
CIVIL APPEAL NO. 9158 OF 2003
WITH
CIVIL APPEAL NO. 9161 OF 2003
28
AND
CIVIL APPEAL NO. 9162 OF 2003
25. The remaining appeals may be disposed together since the
facts and circumstances in these cases are similar.
26. In all these appeals, the respondents are sub-awardees
who have come to the fore after a Notification under
Section 4 of the Rajasthan Land Acquisition Act was
published in the State Gazette for acquisition of land in
village Bhojpura and Chak Sudershanpura Tehsil Jaipur.,
for the purpose of construction of a scheme popularly
known as Lal Kothi scheme, which is adjacent to Jaipur
City for a planned development of the city.
27.These appeals merit the same observations as we have
made in Civil Appeal No. 8590 of 2003, wherein the Land
Acquisition Officer proceeded to pass an award in respect
of the land acquired, which was already vested with the
Government after the coming into force of the Rajasthan
Land Reforms and Resumption of Jagir Act (hereinafter
“Jagir Act” for short) on 18.02.1952, by determining
29
compensation, and went further by directing for allotment
of a plot of developed land measuring 2500 sq. yds. We
have made it clear in the aforesaid appeal that the Land
Acquisition Officer, through such an action, was not only
acting beyond his mandate and jurisdiction, but was also
betraying the public trust reposed on him by virtue of
being a public servant.
28. Pursuant to such an illegal award that we have held in the
aforesaid appeal to be non est and void ab initio, the sub-
awardees who are also Respondents in the present appeals
made representations to the Urban Improvement Trust,
Jaipur for allotment of land. Unfortunately, the Trust not
only complied with these representations but also drew up
allotment plans, asking the Respondents to deposit money
in lieu of the same.
29. Kamla Mehta, who is the respondent in Civil Appeal No.
9162, claims to have paid the full price for this reallotted
plot on 17.12.1970. Dr. S.K. Sharma, who is the
respondent in Civil Appeal No. 9161, was initially allotted
a plot no. 32 in the Lal Kothi Scheme by the Urban
Improvement Trust and he had deposited the full amount
30
of the plot on 31.3.1970. In the case of Pushpa Saxena,
the appellant in Civil Appeal No. 9158, she had purchased
land measuring 400 sq. yards from one Usha Kumari vide
an agreement to sell dated 7.7.72. The said Usha Kumari
who had purchased the plot from the original Khatedar,
one Narpat Singh, was allotted a plot no H-256 in the Lal
Kothi Scheme vide allotment letter dated 13.9.1970.
30. The Respondents, in their Writ Petitions submitted before
the High Court of Rajasthan had complained that the said
allotments were not being made expeditiously. The High
Court allowed the Writ Petitions holding inter alia that the
actions of the appellants herein cannot be sustained and
that once an allotment has been made by the Urban
Improvement Trust, the same cannot remain unfulfilled.
31.We heard the counsel for parties at length. Mr. S.K.
Bhattacharya, Advocate appearing for the appellant
submitted before us that the entire initiation of
proceedings and passing of the award under the Land
Acquisition Act was a nullity. The learned counsel for the
appellant based his argument on the contention that the
Land Acquisition Officer had no authority or right to allot
31
plots in addition to monetary compensation. It was also
the submission of the appellant that the allotment of the
plots in respect of the Respondents was cancelled and
possession was taken back. Therefore, according to the
appellant, the High Court’s decision to allow the claims of
the Respondents on the basis of policy was erroneous as
the High Court failed to appreciate that the policy of the
State Government is inapplicable to the facts of these
cases and that such action allowing sub-awardees,
nominees, dealers and even encroachers to obtain
developed land at nominal rates, as opposed to the high
market prices. On this count, the appellant also submitted
that recognizing the claim of the Respondents would
tantamount to recognizing the right of dealers in land,
since nearly all the original Khatedars have sold their
anticipated allotment in favour of unscrupulous dealers.
32. The learned counsel for the Respondents, on the other
hand, submitted before us that the principles of natural
justice were not followed in the proceedings that led to the
cancellation of allotment in that the Respondents were not
provided an opportunity to be heard. Moreover, it was the
32
submission of the Respondent that the appellant was
delivering possession to a number of other allottees who
were similarly situated.
33.It is amply clear from our decision in Civil Appeal No.
8590 of 2003 that the issuance of notifications under
Sections 4 and 6 of the Land Acquisition Act as also the
Award passed for acquisition of the land was a nullity and
the subsequent action of the Government de-requisitioning
land by issuance of Notification under Section 48 was just
and proper as that was merely by way of rectification of
the mistake committed therein. In the light of this
decision, we find that the Respondents herein have no
claim or right to a fresh allotment of land, as directed by
the Land Acquisition Officer. That other allottees have
been wrongly delivered possession by the appellant does
not, in any way, entitle the Respondents to claim the same
benefit for a wrong action cannot be allowed to be
perpetuated on the ground of discrimination, which is not
at all applicable. Furthermore, it is important to note that
none of the Respondents herein has been in possession of
the said land allotted to them.
33
34. Moreover, this Court in Yadu Nandan Garg v. State of
Rajasthan, reported at (1996) 1 SCC 334, on a case
dealing with the lapse on the part of the Land Acquisition
Officer in wrongly granting a benefit to one party, has held
that the benefit thus wrongly granted cannot entitle others
to get the same or to press claims of invidious
discrimination.
35. In Jaipur Development Authority v. Radhey Shyam,
reported at (1994) 4 SCC 370, at page 372, it was held by
this Court that the power expressly given to the Land
Acquisition Officer is only in respect of enquiry into the
true area of the land acquired and determination of the
compensation which in his opinion should be allowed to
the acquired land and apportionment of the compensation
among the claimants who appeared before him or persons
known or believed to be interested in the land whether
appeared or not and that it excludes by implication any
other power other than that given to the Collector by
Section 11. Seen in the light of the facts and
circumstances of the present appeals, and from our
decision in Civil Appeal No. 8590 of 2003, there is no
34
doubt that the award passed by the Land Acquisition
Officer determining compensation and allotting fresh plots
of land to the Respondents is illegal and void ab initio.
36. Furthermore, it is settled law that sub-awardees and
subsequent purchasers possess right vis-à-vis the original
vendor only and not against the State Government as the
purchases were subsequent to passing of the award. When
the acquisition proceedings are itself a nullity, there
clearly cannot be a valid claim to allotment as has been
contended by the Respondents in this case. In Secy.,
Jaipur Development Authority v. Daulat Mal Jain,
reported at (1997) 1 SCC 35, this Court has held at page
43 :
“The diverse contentions give rise to the first question: whether the respondents have a right to allotment of the lands? It is an admitted position that they purchased the lands from Chhote Lal, the erstwhile owner, pursuant to the sale deeds executed by him in 1970 or an agreement of sale etc. Their source of title, therefore, is Chhote Lal, the erstwhile owner. The sales obviously are void since Chhote Lal had no right, title and interest in the land acquired pursuant to notification under Section 4(1) issued on 29-6-1960 and possession taken under Section 16 of the Central Act and equivalent to Section 16 of the State Act. The pre-existing right, title and interest had by Chhote Lal stood ceased and
35
the same were vested in the appellant free from all encumbrances. The nomenclature of sub-awardees or nominees does not get elevated above the source and they had no right, title or interest under void sale except, if at all, only to claim compensation under Section 23(1) of the Act. In Gian Chand v. Gopala this Court had held that after the notification under Section 4(1) is published, any encumbrances created by the owner of the land does not bind the Government. The agreement of sale, if any, was frustrated by the publication of the notification under Section 4(1) and the declaration under Section 6. In Yadu Nandan Garg v. State of Rajasthan and a catena of other decisions, this Court has held that the purchase after notification under Section 4(1) published in the Gazette was not lawful which did not clothe the sale with any colour of title as against the State. All encumbrances stand extinguished by operation of Section 16 of the Act. Therefore, the purchaser gets no title to the acquired land. The sale (being opposed to the public policy) was void under Section 23 of the Contract Act, 1872. Consequentially, the respondents acquired no right, title or interest either under the sale deeds or agreement entered into by them with Chhote Lal, the erstwhile owner.”
37.So far as the respondents-claimants, namely, Pushpa
Saxena, Kamla Mehta and Dr. S.K. Sharma are concerned,
there is no dispute to the fact that they purchased a part
of the acquired land after the same was vested with the
State Government under the Jagir Act and after the
36
Government had resumed possession of the said land. All
the aforesaid purchases were in any case subsequent to
the notification issued by the State Government under
Section 4 of the Land Acquisition Act and even after
passing of the award, so as to take advantage of the undue
and invalid direction for allotment of additional land by
the Land Acquisition Officer.
38. Pushpa Saxena purchased her land from Usha Kumari
vide sale deed dated 07.07.1972 and the area of land
which was purchased by her was only 400 sq. yards. Usha
Kumari had earlier purchased the land from Khatedar,
Narpat Singh. The total area of land of Raja Narpat Singh
that was acquired was 872.22 sq. yards whereas he was
given an area of plot of 1,000 sq. yards as an alternative
plot, which itself proves and establishes how some
government officers got together to give undue benefit to
unscrupulous person and were thereby trying to cause
wrongful loss to the government of their assets.
39.There were many such awardees who were being given
more land as an alternative to the area of the land which
was sought to be acquired by issuing the notification
37
under Section 4. There were 12 awardees who also entered
into compromise and they were awarded plots of land in
additional to mandatory compensation as under:
S.No .
Name of the Awardee
Sl. No. of the Land
Area of Land (in sq.yards)
The area of plot to be given in addition to cash compensati on as per the award
1. Sh. Radhuveer Singh
50 1361 1500
2. Sh. Ram Lal/Pokhermal
27 2108 2000
3. Sh. Raja Narpat Singh
36 872.22 1000
4. Smt. Sharda Dhapar
54 1097 1000
5. Smt. Jyotsna Kumari
28 2089 2000
6. Sr. Tulsi Vishnoi
48 2166 2000
7. Sr. Rameshwari Sethi
33 2658 2000
8. Amrit Chain Kumari
29 2089 2000
9. Madhu and Vibhu Kashyap
60 2166 2000
10. Alok Prasad Mathur
52 298 500
11. B.P. Bhatnagar 500
40. Incidentally, Raja Narpat Singh who was the original
Khatedar and from whom Usha Kumari purchased land of
38
which Pushpa Saxena purchased about 400 sq. yards,
approached the Supreme Court but he himself was not
allotted any plot of land whereas Pushpa Saxena, who
purchased the land from Usha Kumari, is now seeking for
allotment of alternative land at least to the extent of 250
sq. yards.
41. In so far as the claim of Dr. S.K. Sharma is concerned, his
case is similar to that of Kamla Mehta whose case is
disposed by the judgment of the High Court of Rajasthan
dated 2nd June, 2000. Dr. S.K. Sharma purchased the land
from Rajendra Singh whose area of land that was acquired
was 3508 sq. yards as against which there was an order
for allotment of alternative land of an area of 2000 sq.
yards. Kamla Mehta, out of the anticipated allotment of
land measuring 1500 sq. yards in favour of Raghubir
Singh, entered into an agreement for allotment of land
measuring 375 sq. yards. She has lodged her claim on the
basis of documents like receipt and the alleged agreement
to sale and she put forth her request for allotment of land
in her favour on the basis of such anticipated allotment.
39
42.The decision to allot alternative plot of land was given by
the Land Acquisition Officer in the absence of any
supporting law to support such claim on the ground of
alleged rehabilitation of the person whose land is sought to
be acquired by the Government.
43.Necessarily, none of the aforesaid awardees, namely,
Pushpa Saxena, Kamla Mehta and Dr. S.K. Sharma falls
into the aforesaid category. When they entered into the
agreements to sale there was no allotment of land in
favour of the vendors and there was just an anticipated
and possible action of allotment of some alternative land
either to the vendors or the Khatedars from whom the
vendors purchased through agreement to sell. While
ordering for allotment of land in favour of such persons
the concerned officers misused their position and the trust
reposed on them. In any case, as of now, there is neither
vacant land available in the Lal Kothi area nor are any of
the aforesaid respondents-claimants is entitled to
allotment of any alternative land.
44. In the light of the aforesaid decisions of this Court, and
our discussion in Civil Appeal 8590 of 2003, we find that
40
the cases of the Respondents are devoid of any merit. We,
therefore, hold that the directions for payment of
compensation and allotment of land under the Rajasthan
Land Acquisition Act to the Respondents are illegal and
without jurisdiction as the award passed by the land
acquisition officer was only an offer which itself was a
nullity. They are not entitled to an allotment of 250 sq.
yards of plot, for any direction to allot such plot of land
could amount to unjust enrichment of a person who had
sought to bind the Government, although, in law no such
binding effect came into existence as the land already
vested in the Government. If any one of them has paid the
charges for allotment of alternative land they can only get
back the same from the competent authority, in which
case, they shall be paid interest at the rate of 7.5% p.a
from the date of the deposit of the amount till the date of
the payment.
...............………………………J. [Dr. Mukundakam Sharma]
41
..…...............………………..J. [Anil R. Dave ]
New Delhi, September 21, 2010.
42