Bombay High Court High Court

The State Of Maharashtra vs Shri Ashok Laxman Wani on 31 July, 2008

Bombay High Court
The State Of Maharashtra vs Shri Ashok Laxman Wani on 31 July, 2008
Bench: A.P. Deshpande
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            IN THE HIGH COURT OF JUDICATURE AT BOMBAY




                                                                                      
                    APPELLATE CIVIL JURISDICTION
                 FIRST APPEAL NO. 1119 OF 1997
                                  IN




                                                              
                     L. A. R. NO. 158 OF 1989

    The State of Maharashtra                            )
    (Through the Special Land Acquisition Officer,      )




                                                             
     Metro Centre No.4, Panvel                          ).. Appellant
    (Vaitarna Hydro Electric Project , Nasik is deleted and
    substituted by Metro Centre No.4, Panvel by order dated 10th
    July, 2009 (Coram: Swatanter Kumar,C.J. & A.P.Deshpande, J.)




                                               
               Versus        
    Shri Ashok Laxman Wani                      )
    R/o Padaghe, Taluka Panvel, District Raigad ).. Respondent
                            
                       ALONG WITH
               FIRST APPEAL NO. 867 OF 1997
       


    Ashok Laxman Wani                  ).. Appellant
    



               Versus

    Special Land Acquisition Officer, Metro                            )





    Centre No.4, Panvel and another                                    ).. Respondents

                                           ALONG WITH

     FIRST APPEAL NOS. 1199 OF 1996, 829, 866, 1118, 1120 OF





    1997, 98/2000, 1510, 1511, 1512, 1513 OF 2006, 2051, 2052,
    2053, 2054, 2055, 2056, 2057, 2058, 2059, 2060, 2061, 2062
                 OF 2007, 402, 403, 404 OF 2008,

                                        ALONG WITH

     CROSS OBJECTIONS (STAMP) NOS. 5817, 5818, 5819, 5826,
      5828, 7415, 7416, 7417, 7419, 7421, 7423, 7424, 7426,
                     7427, 8203 OF 2008
                              AND



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      CIVIL APPLICATION NOS. 7209 OF 1997, 2565, 2566, 3441,
    3481, 3482, 3483 of 2004 , 2677 OF 2006, 3421, 3783, 3784
     OF 2007, 1980, 1981, 1982, 1983, 1984, 1985, 1986, 1987,




                                                              
    1988, 1989, 1990, 1991, 1992, 3476, 3477, 3478, 3479, 3480,
         3481, 3482, 3483, 3682, 3683, 3684, 3685 OF 2008

    (C.A. Nos. 3484/2004 & 3784/2008 deleted and C.A. Nos.




                                                             
    3783/2007 and 1992/2008 added by order dated 10th July,
    2009 (Coram: Swatanter Kumar,C.J. & A.P.Deshpande, J.)




                                               
    Mrs G P Mulekar, Assistant Government Pleader, for the State.
    Mr R V Pai with Mr S S Kulkarni for the Respondent-Claimant
                             
    and
    Cross-Objectionists.
    Mr S G Surana for the Appellants-Claimants in F.A. Nos.1510 to
                            
    1513
    of 2006.

                              CORAM: SWATANTER KUMAR, C.J. AND
       


                                     A. P. DESHPANDE, J.

JUDGMENT RESERVED ON : 16TH JULY 2008
JUDGMENT PRONOUNCED ON : 31ST JULY 2008

JUDGMENT : (PER SWATANTER KUMAR, C.J.)

Common, but, question of some significance in law

arises for consideration of the court in all these Appeals.

Despite liberal construction of application of law of

amendment in Appeals before the Court of competent

jurisdiction, we are called upon to determine the issue, as to

whether the provisions of Order 6 Rule 17 of the Code of

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Civil Procedure, 1908 are applicable to the proceedings

including the Appeal proceedings arising under the Land

Acquisition Act, 1894 and if the answer is in the affirmative,

what is the scope and limitation of such application. To

examine various facets of this, reference to the facts giving

rise to these Appeals would be necessary.

2.

Vide its judgments dated 4th May 1996, 17th January

1997, 22nd August 2005 and 29th August 2005, the Joint

District Judge, Raigad at Alibaug, answered 23 Land

References made to it by the Collector under Section 18 of the

Act. Aggrieved from the enhancement granted under the

impugned judgments, the State filed present Appeals for

reduction of the compensation awarded, while the Claimants

being dissatisfied from the compensation awarded to them by

the learned Court, have come before this Court for

enhancement of compensation.

3. Government of Maharashtra issued a Notification

under Section 4 of the Act on 24th September 1986 proposing

to acquire huge chunk of land from revenue estate of Village

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Padaghe, Taluka Panvel, District Raigad for a public purpose,

namely, New Bombay Project. Declaration under Section 6

was issued on 10th May 1987. The SLAO exercising the

powers of the Collector made and published his Award under

Section 11 of the Act on 18th September 1989 awarding

compensation to the Claimants at the rate of Rs.4/- per sq.

mtr. The Claimants appeared to have accepted the

compensation without prejudice and filed References under

Section 18 of the Act claiming compensation at the rate of Rs.

50/- per sq. mtr. which was subsequently amended to Rs.

500/- per sq. mtr. These claim petitions, presented before the

S.L.A.O. on 8th November 1989, were referred to the

Reference Court by the Collector on 29th November 1989. The

parties produced documentary and oral evidence before the

Reference Court. The Reference Court pronounced its

judgments and answered the Reference in L A R Nos.158 of

1989, 145 of 1989, 147 of 1989 and 148 of 1989 on 4th May

1996 enhancing the compensation payable to the Claimants

at the rate of Rs.160/- per sq. mtr. While awarding this

compensation to the Claimants, the Reference Court primarily

relied upon the report of the Valuer which was prepared by

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Economist of CIDCO, Exhibit 53, and calculated the cost of the

land in proportion to the cost of project. While relying upon

the cost in the area of steel market which was developed as

Kalamboli. The Valuer arrived the price of the developed plot

was fixed at Rs.475/- per sq. mtr. It also noticed the fact that

the price of the developed land in the year 1986-87 was about

Rs.346/- per sq. mtr. Reliance was also placed upon the land

sold by CIDCO and MIDC.

ig After the appreciation of this

evidence, the Reference Court awarded the compensation

taking it to be the just and fair market value of the land

prevalent at the relevant time i.e. as on 24th September 1986.

4. In all, 23 References were answered by the

Reference Court. Against the judgment of the Reference

Court, 19 Appeals have been preferred by the State praying

for reduction of compensation and/or restoration of the

Collector’s Award, while in 15 State Appeals the Claimants

have filed Cross-Objections claiming enhancement of the

awarded amount. The Claimants have also filed 8 Appeals

claiming the same relief. During the pendency of these

proceedings, 19 Civil Applications have been filed by the

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Claimants for amendment either in their respective Appeals or

in the Cross-Objections filed by them primarily praying for

substituting the amount of Rs.500/- per sq. mtr. claimed by

them on account of compensation for acquisition of their

lands to Rs.5000/- per sq. mtr. Furthermore, 10 Civil

Applications also have been filed by the Claimants in some of

the Appeals/Cross Objections seeking leave of the Court to

place additional documents, i.e Exhibits “A” to “D” to their

respective applications, on record. These documents are (i)

the judgment of the court in the case of State of Maharashtra

vs. Trimbak J. Thakur, 2008 (1) AIR Bombay Reporter 196

(First Appeal No.646 of 1995 decided on 21st June

2007); (ii) plan showing acquired land and its surrounding

areas prepared on the basis of the visit of the Architect on

24th March 2008; (iii) letter of allotment dated 16th October

1984 allotting the land for a weight bridge in truck terminal at

Kalamboli; and (iv) letter dated 18th August 1997 allotting land

for shopping-cum-residential use.. It may also be mentioned

that in some of the cases, a common prayer has been made

for amendment and for leading additional evidence limited to

placing the judgment in Trimbak Thakur (supra) on record.

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5. Civil Application Nos. 2677 of 2006, 3421 of 2007,

3784 of 2007 and 3783 and 3784 of 2008 are for bringing the

legal representatives of the deceased Claimants/ Respondents

on record. There is a delay in filing the Applications. The

Applicants have also prayed for setting aside the abatement.

There is no objection. Delay in filing the Civil Applications is

condoned. Abatement is set aside. There is no opposition to

the Civil Applications for bringing the legal representatives on

record and consequently they are allowed. The legal

representatives of the deceased Respondents/ Claimants

would be entitled to the benefit of this order in accordance

with law and subject to just exceptions. These Civil

Application are accordingly disposed of.

6. Civil Application No. 7209 of 2007 has been filed by

the State for praying for stay of the judgment and award of

the learned Reference Court. As the main judgment in the

Appeal itself is being pronounced, this Civil Application does

not survive for consideration and is accordingly disposed of.

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Scheme of the Act in relation to matters in controversy

in the present Appeals.

7. Let us first examine the relevant provisions and

scheme of the Land Acquisition Act. A Notification under

Section 4 of the Act is commences a definite step towards

acquisition proceedings which in its nature and substance is

compulsory acquisition proceedings. After following the

prescribed procedure under Sections 5A, 6 and 9 of the Act,

the Collector exercises his powers to conduct complete

enquiry and makes an Award under Section 11 of the Act. The

enquiry by the Collector as contemplated under Section 11,

relates to measurements, value, claims and all other ancillary

matters thereto. The Award so made by the Collector attains

a status of finality and is status of conclusive evidence

between the Collector and the persons interested of true area

and value of the land and apportionment of compensation

amongst the interested persons in terms of Section 12 of the

Act. In determining the amount of compensation, the Court is

to be guided by provisions contained in Sections 23 and 24 of

the Act except to the extent of making a correction of clerical

errors under the scope of Section 13A of the Act. Once the

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Collector forwards the application under Section 18 to the

Reference Court for determination, becomes functus officio in

regard to acquisition proceedings in so far as his power and

authority under Part II of the Act is concerned.

8. Part III of the Act deals with reference to the Court,

procedure to be followed thereupon, and rights of interested

persons under Section 18 of the Act who has not accepted the

Award or accepted it without prejudice to his rights enabling

him to move an application to the Collector with the matter or

reference by the Collector for determination of the Court, his

objections as to measurement of land, amount of

compensation and the person to whom it is payable or

apportionment of such compensation amongst the interested

persons. In other words, in an application under Section 18(1)

of the Act, the Applicant is expected to raise a challenge to the

awarded compensation by the Collector in his Award under

Section 11 of the Act and in terms of Section 18(2) of the Act,

the application shall state the grounds on which the objection

to the Award is being taken. In other words, application

under Section 18 is not a mere formality but is exercise of a

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substantive legal right in the manner specified in the

provisions.

9. Once the provisions of law states how a right is to be

exercised, then the right should normally be exercised in that

manner alone and no other. The expression “shall” has been

cautiously used by the Legislature which indicates its intent

that the application should state grounds on which objection

or exception to the Award is being taken. It is expected of the

Applicant to be aware of what was the value of his land at the

time of issuance of the Notification under Section 4 of the Act

as that date alone is relevant for determining compensation

payable to the Claimants. He is at liberty to raise all factual

and legal objections. This is a reference by the Collector to

the Court of competent jurisdiction and proceedings of

reference are expected to be carried out in accordance with

law. Proviso to Section 18(2) spells out a limitation within

which the application contemplated under Section 18 of the

Act is to be filed. The period of limitation depending on the

facts of a given case would be six weeks to six months. Six

months being the outer case limit, in either of the events,

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where the Applicant was present before the Collector at the

time when the Award was made or where he was served with

a notice under sub-section (2) of Section 12 of the Act. This

specific period of limitation is mandatory and is not flexible

either in its term or by any enunciated principles of necessary

implication. In fact, this legal issue is no more res integra and

stands finally settled by the judgment of the Supreme Court in

the case of Mahadeo B. Patil vs. State of Maharashtra, 2006

Mh. L. J. SC 206, where referring to Raja Harish Chandra Raj

Singh vs Dy. Land Acquisition Officer, AIR 1961 SC 1500 and

State of Punjab vs Satinder Bir Singh, (1995) 3 SCC 330, the

Court held as under :-

” 14. We are here not concerned with the

correctness of the decision, but the fact
remains that having considered the claim of
the appellant for compensation, the Special
Land Acquisition Officer rejected the claim.
This does amount to the making of an award,

commonly described as “nil award”. If the
appellant was aggrieved by such an award, it
was open to him to seek reference under
section 18 of the Act which the appellant
actually did. We, therefore, cannot hold that
no award as envisaged by section 11 of the
Act was declared on 29/8/1994, since the
claim of the appellant was considered and
was totally rejected. There was, therefore,
no question of giving any calculation of the

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manner in which the compensation was

computed. Since, the application under
section 18 was not filed within six weeks of
the receipt of notice under section 12(2) of

the Act, the High Court did not commit any
error in holding that the application was
barred by limitation. It was not disputed
before us that the Land Acquisition Officer

making a reference, or the Court considering
a reference under section 18 of the Act has
no power of condonation of delay in making
an application under the aforesaid section.”

10.

Even a Division Bench of this Court while following

the above principles, held in the case of The State of

Maharashtra vs. Sadashiv Ganpat Avhad and others, First

Appeal No.251 of 1996, decided on 31st January 2008, as

under :-

” 18. We are unable to find any merit in the
contention raised on behalf of the claimants.
It is neither disputed before us nor was
disputed before any other for a that in the
applications filed by the claimants under

Section 18 of the Acquisition Act they had
categorically and specifically admitted that
they had received the notices under Section
12(2) of the Acquisition Act on 31.3.1986.

The applications under Section 18 of the
Acquisition Act are dated 5th June, 1986. No
purpose would be served by remanding the
matter to the Reference court inasmuch as
the claimants cannot be permitted to go
back from their admission of receipt of a

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statutory notice. Furthermore, it is not for

any other purpose that the dates were
mentioned in the application. The applicants
were fully aware that they are filing

applications under Section 18 of the
Acquisition Act and had already received the
notices under Section 12(2) of the
Acquisition Act. These applications are

signed by the applicants and that fact is also
not in dispute. That being so, it is not
necessary for us to set aside the judgments
of the Reference Court and remand the

matters to that Court. It is settled principle of
law which in fact was not even disputed

before us that the Collector and for that
matter any other Court has no power to
condone the delay in filing an application

under Section 18 of the Acquisition Act. That
being the settled position of law, again it will
be futile for the Courts to accept the
contentions raised on behalf of the claimants

for remanding the matter to the Court of the
learned Joint District Judge. ….

19. In the light of the enunciated
principles and the documents available on

record before us, it is not required of this
Court to remand the matter to the learned
Joint District Judge. The reference
applications have thus been erroneously
decided by the learned Joint District Judge,

in fact, under a mistaken impression of fact
and law both. All the above appeals of the
State thus necessarily should be allowed and
we hereby allow the same, set aside the
judgment of the reference Court in favour of
the appellants in the above noticed appeals,
while leaving the parties to bear their own
costs.”

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11. From the above analysis of the above settled

principles of law, it is clear that the limitation prescribed under

Section 18 of the Act is inflexible, uncondonable and is

capable of rigid interpretation. Its effect on the merits of the

case, we shall proceed to discuss shortly.

12.

The requirement of law is that in a application under

Section 18 of the Act, the Claimant should state the grounds

on which objection to the Award is taken and it should be

comprehensive enough to require the Applicant to state with

exactitude what compensation he desires to receive as a

result of disposal of his objection and particularly what is the

deficiency in amount of compensation awarded to him, guided

by the requirement of determination of compensation under

Sections 23 and 24 of the Act. This view would find support

from the language of Section 19 of the Act where the Collector

while making a reference has to provide information to the

Court in writing, amongst others, stating the details of land,

names of persons interested, amount awarded and particularly

give the grounds on which the amount of compensation was

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determined if whether the objections raised by the applicant

relating to deficiency or otherwise of the amount of

compensation determined. The language of these two

provisions clearly indicate that the requirement is not a mere

formality or expects the applicant to make vague averments.

The applicant as well as the Collector is expected to adhere to

the requirements of law in this regard.

13. The Claimants get two opportunities before the

Collector to clearly state the amount of compensation which

they actually claim for acquisition of their respective lands.

They are within their rights to lead such evidence and raise

such objection in regard to measurement, valuation or

otherwise in pursuance to the notice issued under Section 9

and prior to passing of an Award under Section 11 of the Act.

The Collector is to form a distinct opinion as to what

compensation, in his opinion, should be allowed for the land

acquired, where after he has to send such an Award for

approval to the appropriate Government and then alone would

make the Award public. Secondly, after the pronouncement of

the Award, while making an application under Section 18 of

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the Act, the Claimants can state the amount which they wish

to claim while raising an objection with regard to quantum of

compensation awarded to them and the grounds in support

thereof that too within the period of limitation prescribed

under those provisions. Once that stage is over, the Claimants

would be bound by the amount stated by them in their

reference application. In the scheme, the legal provisions, it

appears to us that the Claimants may not be bound by their

admission made in response to Section 9 notice in regard to

quantum of compensation claimed in an application under

Section 18 of the Act.

14. Section 25 of the Act places an obligation upon the

Reference Court that it cannot award an amount less than the

amount awarded by the Collector. In other words, so to say,

the Award made by the Collector is final in absolute terms vis-

a-vis the Government and Court can only enhance it to the

extent of the amount claimed by the Claimants in the

reference petition under Section 18 of the Act. The Award so

made by the Court in its judgment would then become a

decree within the meaning of Section 2 clause (2) and Section

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2 clause (9) of the Code of Civil Procedure.

15. By the Act of 68 of 1984, Section 25 of the Act was

amended with effect from 24th September 1984. The

unamended provisions of Section 25 placed an embargo upon

the authority of the Court to award excess compensation to

the amount awarded by the Collector, in some cases. It

provides that when an applicant has made a claim for

compensation pursuant to any notice given under Section 9,

then the amount awarded to him by the Court shall not exceed

the amount so claimed or be less than amount awarded by the

Collector under Section 11 of the Act. Secondly, when the

applicant has refused to make any such claim or has omitted

without sufficient reason to make any such claim, the amount

awarded by the Court shall not exceed the amount awarded

by the Collector. Still further, when the applicant has omitted

for sufficient reason to make such a claim, the amount

awarded by the Court shall not be less than the amount

awarded by the Collector. All these three stages were

relatable to the claim made by the Claimant in furtherance to

a notice under Section 9 of the Act. The purpose was not to

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grant amount higher than the amount awarded by the

Collector except in one case where it could exceed the amount

awarded by the Collector.

16. By amendment of Section 25, the restriction placed

upon the power of the Court to award limited compensation

has been removed. Thus, determination of compensation in

excess of the amount awarded under Section 11 award is

permissible. What amount is now claimed by the Claimants

for acquisition of their lands may be much in excess to the

amount claimed by them before the Collector in response to

the notice issued under Section 9 and the Court can award an

amount in excess thereof. However, the extent of claim

obviously would be controlled by the amount stated by the

Claimants in their reference petition under Section 18 of the

Act. The proceedings before the Court are initiated by virtue

of a reference made under Section 18 of the Act, as a

reference proceedings. The Claimants have no right to

commence the proceedings before the Reference Court

directly on their own within the ambit and scope of Section 18

of the Act. The Collector is expected to comply with the

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requirements of Section 19 before he forwards a reference

while ensuring that the reference has been filed within the

prescribed period of limitation and thus satisfying the

requirements of provisions of Section 18(1) of the Act. The

Scheme of the Act appears to be that the Claimant would be

bound by the amount claimed in his Reference Petition, it

being remedy of limited jurisdiction and being initiable only

upon a reference in accordance with law. There may be cases

where the Claimants have not been able to take advantage of

this channel of legal remedy and could not file References

under Section 18 of the Act, in that event they could take

recourse to the proceedings under Section 28A of the Act

praying before the Court for re-determination of the

compensation. In terms of Section 28A, where the Court

allows to an applicant any amount of compensation in excess

of the amount awarded by the Collector under Section 11, the

persons interested in all the other land covered by the same

Notification under Section 4, sub-section (1) and who are also

aggrieved by the award of the Collector may, notwithstanding

that they have not made an application to the Collector under

Section 18, by written application within three months from

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the date of the Award of the Court, claim that amount upon re-

determination.

17. Section 28A thus was introduced in the Statute book

to provide a kind of alternative remedy and an opportunity to

all aggrieved parties whose lands have been acquired by the

same Notification even if they were not able to invoke the

remedy of Section 18 and where one or more persons relating

to some Notification of acquisition of same lands have

received higher compensation by award of the Court. It

introduces a kind of an election of remedy by a party, may be

out of necessity, mistake or compulsion. Though, these two

independent legal remedies are available to a claimant, but

are completely distinct and different remedies. One can be

invoked when award under section 11 is made by the Collector

with reference to the provisions of sections 18 and 19 of the

Act,while in the other, after award under section 11 has

merged into an order of the court and court awards higher

compensation, the claimants who had not taken recourse to

the proceedings under section 18 would directly approach the

Collector for redetermination of the compensation in terms of

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section 28A of the Act while relying upon the judgment of the

court. However, in both events, the law specifies the

limitations within which the respective remedies can be

invoked.

18. The claimant could even lawfully elect not to take

recourse to the legal remedy available to him under section 18

of the Act and await till the judgment of the court of

competent jurisdiction enhancing the amount of compensation

awarded by the Collector in relation to same Notification and

in the case of similarly situated persons. Thus, the law is tilted

in favour of the Claimants, and offers them protection even

without entering into prolonged litigation of the proceedings

under section 18, they could directly take recourse to the

provisions of section 28A in accordance with law. But having

once taken recourse to the provisions under section 18, they

are bound by the results and cannot, in law, alter that petition

in regard to amount of compensation after the period

prescribed is over.

19. Once the proceedings before the Court of competent

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jurisdiction are commenced either by way of a reference or

under Section 28A, the provisions of the Code of Civil

Procedure are applicable to those proceedings in so far as

they are not inconsistent with the provisions of the Act in

terms of Section 53 of the Act. Two prominent expressions in

Section 53 are “save in so as far as they may be inconsistent

with anything contained in this Act” and “the provisions of the

Code of Civil Procedure shall apply to all proceedings before

the Court under this Act”. The provisions of Section 53 of the

Act are applicable to proceedings before the Court and not the

Collector. The provisions of the Civil Procedure Code therefore

would be applicable to the proceedings before the Court under

the Act i.e. in proceedings taken by the Court in furtherance to

the reference made by the Collector under Sections 18 and 19

or the proceedings initiated by the Claimants under Section

28A of the Act. Another limitation of the application is that

such provisions of the Civil Procedure Code should not be

inconsistent with the provisions of the Act. Even to the

proceedings in Appeal before the Court, the provisions should

be applicable as to the Appeals from original decrees and

Section 54 of the Act states that to which Court further an

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Appeal would lie.

Applicability of provisions of Order 6 Rule 17 read with
Order 41 Rule 3 of the Code of Civil Procedure.

20. The law relating to amendment of pleadings had been

construed quite liberally and noticing its impact on

administration of justice and inevitable delays in conclusion of

the proceedings, the Legislature by Code of Civil Procedure

(Amendment) Act 2002 amended Rule 17 of Order 6 with

effect from 1st July 2002. Amended Order 6 Rule 17 reads as

under :-

” 17. Amendment of pleadings – The
Court may at any stage of the proceedings
allow either party to alter or amend his

pleadings in such manner and on such terms
as may be just, and all such amendments
shall be made as may be necessary for the
purpose of determining the real questions in
controversy between the parties.;

Provided that no application for
amendment shall be allowed after the trial
has commenced, unless the Court comes to
the conclusion that in spite of due diligence,
the party could not have raised the matter
before the commencement of trial.”

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21. The language of the amended Rule was quite distinct

and intended to limit the scope for dealing with the

applications for amendment as is obvious from the following

language of unamended Rule 17 :-

” 17. Amendment of pleadings – The
Court may at any stage of the proceedings
allow either party to alter or amend his

pleadings in such manner and on such terms
as may be just, and all such amendments

shall be made as may be necessary for the
purpose of determining the real questions in
controversy between the parties.”

22. Still the Court even under the amended provisions,

has been vested with very wide powers and may allow either

party to alter or amend his pleadings at any stage. The

amendments have to be made which are necessary for the

purpose of determining real question between the parties.

However, it is obligatory upon the Court to examine that no

application for amendment should be allowed after the trial

has commenced unless the Court arrives at the conclusion

that the party claiming amendment, despite due diligence,

could not have raised the matter before the commencement

of the trial. This obviously is intended to prevent, firstly,

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carrying out of unnecessary or casual amendments by the

parties intended to delay the proceedings and, secondly, after

commencement of the trial, additional burden is placed upon

the applicant seeking amendment to satisfy the Court with

regard to above requirements. While amending these

provisions, the Legislature also amended Rule 18 of Order 6 to

ensure that the amendments allowed by the Court are carried

out within the granted time and where no time was granted by

the Court, within fourteen days from the date of the order

where after the parties shall not be permitted to amend the

pleadings unless again a specific order of extension is passed

by the Court.

23. The object of the amendments is to achieve

expeditious disposal of cases and to ensure that law relating

to amendments is not abused by a party to the proceedings.

Wherever an amendment is permitted by the Court after

recording its satisfaction in accordance with these provisions,

the same may be carried out within the specified time. The

provisions of Order 6 Rule 17 are applicable to appeals as well.

A party would be entitled to make an application for

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amendment of his pleading in accordance with law and subject

to satisfaction of the prescribed conditions. Under the

unamended as well as the amended law, the principle has not

changed that the amendments which are forbidden by law or

would be impermissible in face of provisions of the limitation,

need not be allowed. The applicability of these provisions of

the Code to the proceedings pending before the Court while

exercising the powers of the provisions of the Act and its

extent has been subject matter of some legal controversy in

the past.

24. The learned Counsel appearing for the Claimants-

Applicants while relying upon the judgments of the Supreme

Court in the case of Harcharan vs. State of Haryana, (1982) 2

SCC 408, Bhag Singh and others vs. Union Territory of

Chandigarh, (1985) 3 SCC 737, Ghaziabad Development

Authority vs Anoop Singh and another, (2003) 2 SCC 484,

and a Single Judge judgment of this Court in First Appeal No.

700 of 1989 (State of Maharashtra vs Sitaram B. Bhoir) on 14th

March 2008, to argue that the Claimants are entitled to amend

their pleadings in the appeal in relation to factual matrix as

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well as enhancing the claim of compensation made by them in

their Petition under Section 18 of the Act before the Collector.

It is argued that the amendment is bona fide and is based

upon the fact that judgments have been delivered by the

Court in different cases and CIDCO for whose benefits the

lands were acquired have been selling land at the rate of Rs.

10,000/- per sq. mt. and above and as such they desire to

amend their claim and they wanted to increase the claim from

Rs.500/- per sq. mtr. to Rs.5000/- per sq. mtr.

25. While relying upon the case of Harcharan (supra),

emphasis is laid where the Supreme Court considered the

question that because of delay of six years, the amendment

could be disallowed and while referring to the principle of

procedural law it is intended to facilitate and not to obstruct

the course of substantive justice the amendments sought

were allowed.

26. In Bhag Singh (supra), the Supreme Court had

examined the necessity for requiring the State to do what is

fair and just to citizen and the compensation for acquisition of

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the land of the claimants should be paid on the basis of the

market value of the land determinable at the time of

acquisition.

27. In Ghaziabad Development Authority (supra), the

Supreme Court held as under :-

“7. As in the above case, in the instant
case too, the award was passed by the Land

Acquisition Officer and the Reference Court
earlier to the effective date of substitution of
Section 25. Hence, the limitation on the power

of the court to award compensation as enjoined
by the pre-amended section would be
attracted. However, there is a formidable
impediment for the appellant to take shelter

under the pre-existing Section 25. On a
petition filed by the claimant, the application

dated 11/7/1967 wherein compensation was
claimed at Rs 20 per square yard was allowed
to be amended by an order of the Reference

Court passed in the year 1983. It is to be noted
that by virtue of Section 53 of the Land
Acquisition Act, the provisions of the Code of
Civil Procedure shall apply to all proceedings
before the court unless they are inconsistent

with anything contained in the Act. In the light
of this provision, the High Court rightly held
that there is no bar under the Land Acquisition
Act to file a petition for amendment of the
claim application in regard to the quantum of
compensation claimed as there is no provision
in the Land Acquisition Act which is
inconsistent with the power to allow
amendment. The effect of allowing the
amendment is to substitute the figure of Rs 20

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by Rs 100 per square yard. When once this

amendment is recognized and taken note of, it
is obvious that the bar under Section 25 does
not get attracted. Whether this amendment

could have been permitted in the face of the
unamended Section 25 has not been put in
issue before the High Court in specific terms.
Even in the SLP we found, in vain, any ground

questioning the order allowing the amendment.
No doubt, a party has right to challenge a non-
appealable order in an appeal against the
decree as laid down in Rule 1-A of Order 43.

But, the fact remains that the legality or
propriety of the order permitting amendment

was neither specifically challenged before the
High Court nor a specific ground taken that it
was contrary to Section 25. At this stage, the

appellant cannot be permitted to assail the
correctness of the order permitting
amendment. If that be so, the first contention
based on the pre-existing Section 25 has to be

necessarily rejected.”

The above dictum of the Supreme Court has been heavily

relied upon by the Applicants-Claimants.

28. The learned Counsel for the Claimants while referring

to these judgments and emphasizing that the provisions of

Section 18 do not contemplate any specific claim being raised

by the applicant argued that mere protest would suffice the

compliance of provisions of Section 18 and ultimately

submitted that the application for amendment of the claim for

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market value, the Court has unrestricted powers and

provisions of Section 18(2) of the Act do not in any way affect

grant of such application and prayed for allowing the

amendment.

29. It was argued on behalf of the State that all the above

judgments of the Supreme Court do not lay down any ratio

decidendi which would be applicable as a legal precedent to

be applied uniformly in relation to law of amendment to the

proceedings under the Land Acquisition Act. According to her,

the Supreme Court has repeatedly rejected the request of the

Claimants in the cases before it for receiving higher

compensation by paying additional Court fee. Reliance in this

regard has been placed upon the case of M. Govinda Raju and

another vs Special Land Additional Land Acquisition Officer

and another, (1996) 5 SCC 547. Reliance was also placed

upon the judgment of the Supreme Court in the case of

Scheduled Caste Co-op. Land Owning Society Ltd. vs Union of

India, (1991) 1 SCC 174, where the Court took the view that

redetermination of compensation under Section 28(1) is not

applicable where the Claimant has sought and secured a

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reference under Section 18 and has even preferred Appeal

before the High Court. Further, the Court also took the view

that the Applicants were not entitled to claim higher

compensation after a considerable delay by paying the Court

fee as the society had restricted its claim to Rupees Four lakhs

and against the order of the learned Single Judge, no further

remedy was availed.

30. This was again followed by a judgment of the

Constitution Bench of the Supreme Court in the case of Buta

Singh (dead) byLRs vs Union of India, (1995) 5 SCC 283,

where the Court held as under :-

“… we are of the opinion that the decision
rendered by a two-Judge Bench in the case
of Chand Kaur had failed to notice the
decisions rendered subsequent to the
decision in the case of Bhag Singh, in

particularly the decision in the case of
Scheduled Caste Coop. Land Owning Society
Ltd.” which explained the earlier two
decisions. It is, therefore, obvious that the
decision rendered in the case of Chand Kaur
is per incuriam, inasmuch as, the attention
of the Bench was not invited to a three-Judge
Bench decision in the case of Scheduled
Caste Coop. Land Owning Society Ltd. which
was holding the field. The decision in Chand

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Kaur case, thus being per incuriam, does not

in fact consciously differ from the decision in
the case of Scheduled Caste Coop. Land
Owning Society Ltd.. We, therefore, put the

matter beyond the pale of doubt by stating
that the law as laid down in the decision in
Scheduled Caste Coop. Land Owning Society
Ltd. is correct and should hold the field; we

approve of it and, therefore, the subsequent
decision in the case of Chand Kaur to the
extent it conflicts with the view taken in that
case cannot be said to be laying down the

correct law. We dispose of the reference to
this Bench accordingly and the matter will

now go back to the appropriate Bench for
disposal in accordance with law laid down in
Scheduled Caste Coop. Land Owning Society

Ltd., hereby affirmed and approved by us.”

31. It is contended on behalf of the State that the

Ghaziabad Development Authority (supra) case does not

enunciate the relevant principles of law, after appropriate

discussion which could be applied as good precedent of law to

a subsequent case, as it primarily discussed the effect of

amendment of Section 25 on the claim petitions. To buttress

the submission on behalf of the State, further argued that the

applications which are barred by time for amendment should

not be allowed and in this regard reliance was placed on the

case of Dattaram V. Dharwadkar and another vs Ghanashyam

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G. Bhende and another, 2003 (1) Mh. L. J. 43, and judgment

of the Supreme Court in the case of T.N. Alloy Foundry Co. Ltd.

vs T.N. Electricity Board and other, (2004) 3 SCC 392, where

the Court reiterated with approval the principles in L.J. Leach

and Co. Ltd. vs Jardine Skinner and Co., AIR 1957 SC 357,

that in case the claims which are barred by limitation on the

date of the application, the Court would as a rule decline such

amendment.

32. The law of limitation would have a limited application

to the cases under the provisions of the Land Acquisition Act

inasmuch as to permit amendment of pleadings as a matter of

routine may result in great prejudice to either of the parties

and may even be against specific provisions of law. In the

above-referred judgments of the Supreme Court, it is not

stated as an absolute proposition of law that amendment of

petition filed under Section 18 of the Act can be permitted as a

matter of course. Further, with respect, we are unable to

contribute to the view expressed by the learned Single Judge

of this Court in the case of Sitaram B Bhoir (supra) and

Scheduled Caste Co-op. Land Owning Society Ltd. (supra), as it

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does not appear to be correct exposition of law. It is not really

necessary for us to examine the judgment relied upon by the

Claimants in the present case as they have been discussed in

great elaboration by the Supreme Court itself in the case of

Union of India vs Pramod Gupta and others, (2005) 12 SCC 1,

where the Court examined all these cases and enunciated the

law under the heading `amendment of reference and

additional evidence’. The relevant part of the judgment reads

as under :-

“132. We have noticed hereinbefore that
before the Land Acquisition Collector the

respondents had claimed only a sum of Rs
12,000 per bigha. Despite the same the

respondents filed an application purported to
be under Order 6 Rule 17 of the Code of Civil
Procedure praying for amendment of the

memo of appeal and the reference claiming
higher compensation. The respondents appear
to have further filed applications under Order
41 Rule 27 of the Code for adduction of
additional evidence in support of their

amended claim. The High Court while rejecting
the claim application filed by the appellants
allowed the application for amendment as also
the application for adduction of additional
evidence filed by the respondents.

133. Mr Salve submitted that the bar under
Section 25 of the Act must be considered
having regard to Section 53 thereof which
provides for applicability of the provisions of

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the Code of Civil Procedure. The learned

counsel urged that the respondents had
already filed an application for amendment of
the memo of appeal in terms of Order 41 Rule

3 of the Code of Civil Procedure, which having
been allowed, would amount to amendment of
the claim application in the reference case
itself. Strong reliance in this behalf has been

placed on Harcharan v State of Haryana and
Ghaziabad Development Authority v Anoop
Singh.

134. We do not agree. The pleadings
before the trial court are the basis for

adduction of evidence either before the trial
court or before the appellate court. By
amending the memo of appeal the original

pleadings cannot be amended. The
respondent claimants made their claim before
the Reference Court claiming compensation for
the lands acquired under two different

references at a certain rate. They are bound
by the said pleadings. Section 53 merely

provides for applicability of the provisions of
the Code of Civil Procedure including the one
containing Order 6 Rule 17 thereof. Order 6

Rule 17 of the Code of Civil Procedure
postulates amendment of pleadings at any
stage of the proceedings. Before an
amendment can be carried out in terms of
Order 6 Rule 17 of the Code of Civil Procedure

the court is required to apply its mind on
several factors including viz whether by reason
of such amendment the claimant intends to
resile from an express admission made by him.
In such an event the application for
amendment may not be allowed. (See Modi
Spg. & Wvg. Mills Co. Ltd. v Ladha Ram & Co,
Heeralal v Kalyan Mal and Sangramsinh P.

Gaekwad v Shantadevi P Gaekwad).

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135. Delay and laches on the part of the

parties to the proceedings would also be a
relevant factor for allowing or disallowing an
application for amendment of the pleadings.

The High Court neither assigned sufficient or
cogent reasons nor applied its mind as regards
the relevant factors while allowing the said
application for amendment. It has also not

been taken into consideration that the
application for amendment of pleadings might
not have been maintainable in view of
statutory interdict contained in sub-section (2)

of Section 25 of the Act, if the same was
applicable.

136. In Anoop Singh whereupon reliance
has been placed by Mr Salve, the Division

Bench of this Court did not have any occasion
to consider that decisions of this Court in Krishi
Utpadan Mandi Samiti v Kanhaiya Lal and B.V.
Reddy which, it will bear repetition to state,

are authorities for the proposition that once it
is held that Section 25(2) of the Act would be

attracted in a given case, the parties are
estopped and precluded from claiming any
amount higher than that claimed in their claim

petition before the Collector. An observation
made to the effect that an application under
Order 6 Rule 17 would be maintainable having
regard to Section 53 of the Act, with utmost
respect, does not constitute a binding

precedent. No ratio has been laid down
therein and the observations made therein are
without any discussion. Furthermore no
reason has been assigned in support of the
said proposition of law.

137. In Harcharan also this Court did not
address the question as to whether Order 6
Rule 17 would be applicable in relation to the
original claim petition or memo or appeal.”

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33. The amendment of Memorandum of Appeal has to be

understood in complete distinction to amendment of

Reference Petition under Section 18 of the Act. The Petition

filed before the Collector is in compliance of a statutory

provision and can only be filed within the prescribed period of

limitation. The provisions of Order 6 Rule 17 of the Code of

Civil Procedure would have no application to the proceedings

before the Collector even with the aid of Section 53 of the

Land Acquisition Act and Collector does not act as a Court

within the meaning of Section 3(d) of the Act. In other words,

there will be no occasion for an applicant to amend his

application under Section 18 of the Act particularly when the

period of limitation specified under Section 18(2) is over. It is

a settled principle of law that the Collector empowered even

to refuse to make a Reference and reject the same if it is

barred by time. The Collector or the Court, for that matter,

have no jurisdiction to condone the delay in filing an

application under Section 18 of the Act. In other words, a

Petition under Section 18, if filed within time, will be referred

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to Court and would be incapable of being altered or amended

with the aid of procedural provisions provided under the Code.

The provisions of the Code are procedural in nature, while the

provisions of the Land Acquisition Act are statutory and

binding. The Land Acquisition Act is a special enactment

intended to prescribe procedure and is a Code in itself

particularly in relation to the proceedings taken under Part II

of the Act and the Collector upon making a Reference under

Section 18 of the Act, loses its control and jurisdiction over

such proceedings.

34. The law of amendment which will enable a party to

amend the Memorandum of Appeal could normally relate to

certain circumstances, like potential, location of the acquired

land or reference to certain transactions which for bona fide

reasons and despite due diligence could not be placed before

the Court. In law, it would be difficult to hold that a Reference

Petition which has been filed before the Collector within time

can be amended in relation to quantum and can be altered

after the prescribed period of limitation is over. Section 18(2)

of the Act prohibits certain dealings and proceedings after

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expiry of the prescribed period and what cannot be achieved

directly can also not be achieved indirectly by adopting

recourse to the procedural law. The procedural law cannot

frustrate a substantive right that has accrued in favour of one

of the parties to the proceedings. It is an admission of a party

of which the other party would be fully entitled to take

advantage, where every Claimant would know and at least is

expected to know that the Collector is to fix the market value

of the land as on the date of acquisition i.e. when Section 4

Notification is issued. The stage of issuance of notice under

Section 9 of the Act is much later in point of time by which

they are expected to collect all the evidence that may be

necessary for proper determination of the claim of

compensation. Even thereafter when Award is made under

Section 11, the Claimants are at liberty to raise an issue for

receiving higher compensation even more than the

compensation which they may have claimed in response to

the notice under Section 9 of the Act. A Claimant being fully

aware of his rights and having sufficient time to prepare his

application for making a Reference to the Court of competent

jurisdiction, is expected to state grounds and his objections as

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to why the amount awarded by the Collector is not acceptable

to him, while also stating the amount and grounds on which

he claimed higher compensation. The application under

Section 18 cannot be termed as a mere formality, but it is

besides being a statutory application is an admission of facts

and grounds stated therein by the party concerned.

Withdrawal of an admission as a rule is impermissible, of

course, to certain extra ordinary exceptions, permissible under

the law.

35. The learned Counsel appearing for the

Claimants while referring to the provisions of the Land

Acquisition Act argued that the function of the Collector under

Section 18 is a ministerial function and the forwarding of a

reference is merely a duty for commencing of the proceedings

for reference petition. With the aid of the provisions of

Section 53 of the Act, the provisions of Civil Procedure Code

are applicable to reference proceedings, therefore,

amendment can be carried out at any stage of proceeding

under Section 18 of the Act. Section 3(d) of the Act defines

“Court” which means a Principal Civil Court of original

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jurisdiction, unless the appropriate Government has appointed

a special judicial officer to exercise such powers within the

specified limits to perform function of the Court. There can be

no doubt to the position of law that the Collector while

exercising powers under this Act is not a “Court” within the

meaning of the provisions of the Act and for that matter even

under legal parlance. Once an application is presented before

the Collector and it conforms to the requirement of Sections

18 and 19 of the Act, even then the Collector has power to

reject the reference if it is barred by time as the Collector or

the Court for that matter have no power to extend the period

prescribed under Section 18(2) of the Act. Thus, it is not

correct to say that the function of the Collector is merely

ministerial or can be effected without application of mind.

Section 19 places an obligation upon the Collector to apply his

mind, see if the reference is within time and satisfy the

requirement of Section 18 before forwarding the reference for

determination of the Court of competent jurisdiction in

accordance with law. The Collector while exercising such

powers does not have the trapping of a Court and to that

extent provisions of the Code of Civil Procedure per se would

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not be applicable to the proceedings before the Collector.

Admittedly, once the matter comes within the realm of the

Court, the provisions of the Code of Civil Procedure would be

applicable with the aid of Section 53 of the Act again and only

to the extent they are not in conflict with the provisions of the

Act. If a petition has become barred by time, then the

provisions of the Code cannot be utilized for the purposes of

defeating the bar which emerges from the specific provisions

of the Act. Merely because subsequently a law is amended

and/or a judgment is pronounced which may give some

benefit by itself would not be a sufficient ground for permitting

an amendment which at the face of it is impermissible in law.

36. Even under the provisions of old Section 25 of the

Act, the expression `as may a claim’ and the `amount so

claimed’ were referable under Section 9 of the Act. In other

words, there was a bar in the way of the applicant to claim

compensation higher than what he had claimed in response to

a notice under Section 9(1) and/or (2) of the Act. Section 9

under the old as well as the new law requires the Collector to

give a public notice stating that Government intends to take

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possession of the land, and that claims to compensation for all

interests in such land be made to him and further requires the

applicants-claimants later than 15 days, to submit their

interest in the land, and the amount and particulars of the

claim of compensation and their objections, if any. The

applicant was expected to submit the specific amount of

compensation he claims for acquisition of his lands. But after

amendment of Section 25, the Legislature in its wisdom lifted

the bar and granted liberty to the claimant that while filing an

application under Section 18, they could claim any higher

amount than what was claimed in response to a notice under

Section 9 and such claim would no way hamper their right to

challenge the award with complete freedom and regarding

quantum. These are not the cases where the applicants have

either omitted or have not chosen to pursue or have not filed

their applications under Section 18 within the prescribed time.

37. The learned Counsel for the Claimants also made a

reference to the format provided under the Maharashtra Land

Acquisition Manual in relation to making of an order under

Section 18 of the Act. While relying on the said form, it is

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stated that this form does not contemplate mentioning of any

amount. This argument is misconceived. The format referred

to in the Manual is not the form of the application which the

Claimant is required to submit under Section 18 of the Act but

it is a form of the order which is to be passed by the Collector

while referring the matter to the Court. The relevant form is

“VI”. It reads as under :-

” Case No. 19

VI. Reference to the Court under Sec.

18

WHEREAS A. B., son of

, has not accepted the award a copy of which is
hereto annexed (Repeat Form V) made by me

under Sec. 11 of Act I of 1894, and has
required by the accompanying application
(dated _____________) that the matter be

referred to the Court, I hereby make the
reference to the Court of the

Ground on which the (A copy of the
award

amount of Compensation relevant
portion
was determined : should
accompany)

Nature of the objection
taken to the award.

SCHEDULE: Particulars of the notices served
upon, and of the statements in writing made or

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delivered by the parties interested.

Dated 19 Collector.”

38. The bare reading of the above form shows that it is

not even to be signed by the applicants nor it is required to be

filled in by the applicant. This order of reference is in

conformity with the provisions of Sections 18 and 19 of the

Act. At the cost of repetition we may say that the application

of the Claimant under Section 18 of the Act has to be in

conformity with the requirements of law i.e. to state the

amount, grounds of objections and grounds in support thereof

and the reasons why the Claimant claims higher compensation

amount than the one awarded by the Collector. Thus, this

argument is also of no avail to the applicants.

39. Besides this legal position that emerges from the

above judgments and the provisions of the Land Acquisition

Act, let us also examine the aspect of prejudice to the parties.

40. The claimants are expected to act vigilantly and

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raise their appropriate claim for acquisition of their lands.

However, even if the Claimants, despite exercise of due

diligence, are not able to make an appropriate claim for

determination of market value of the land as on the date of

issuance of section 4 notification, in response to notice under

section 9 of the Act, still after amendment of the provisions of

section 25 of the Act, they can raise the claim for a higher

amount in an application under section 18 of the Act. As

already noticed, these provisions require the applicants to

submit their objections and grounds, interalia, for inadequacy

of the compensation awarded to the claimants and claim such

other amount as they deem fit and proper. The legislative

intent appears to be that there should be appropriate and

expeditious disposal of land references. The scheme of the

Act does not contemplate amendment of section 18 petition

at a subsequent stage. In view of the legislative protection

provided, there is hardly any prejudice being caused to an

applicant-claimant if amendment to Petition is denied as it is

the duty of every interested person to act diligently and in

accordance with law.

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41. On the contrary, if Petition under Section 18 is

permitted to be amended at a late stage, it is likely to result in

prejudice to the State or the acquiring authority. They will

hardly be in a position to defend prayer for enhancement and

the matter would have to be remanded to the court of

reference which again would result in delay of conclusion of

proceedings and lastly such an approach does not appear to

be permissible under the provisions of the Act.

42. Reverting back to the judgment of the Supreme Court

in the case of Pramod Gupta (supra), the court has already

discussed the judgments relied upon by the claimants. It was

noticed in this case that claimants would be bound by their

pleadings before the Collector. The court will have to consider

that the claimants intent to resile from an express admission

made by them and the observation in Gaziabad Development

Authority case (supra) was not a binding precedent for no ratio

having been discussed in the judgment as well as in

Harcharan’s case, where the court did not address the

question as to whether Order 6 Rule 17 would be applicable in

relation to petition under Section 18. In the case of Ghaziabad

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Development Authority (supra), the Supreme Court had stated

the principle that where a question in relation to amendments

are allowed are not put up in issue before the High Court in

specific terms, then the Court particularly when a party has a

right to challenge an order otherwise or in any case in

memorandum of appeal even if it was not appealable and

once the order permitted amendment is neither specifically

challenged nor taken up in the grounds of memorandum of

appeal, the appellate Court will not interefere with such a

plea.

43. In the light of the recent judgment of the Supreme

Court in the case of Pramod Gupta (supra). which provides the

reasoning, discussion and which appropriately discusses the

previous judgments of the Supreme Court referred by the

Petitioner would be a binding precedent. The judgment and

the specific dictum spelled out in the judgment of Pramod

Gupta (supra) provides the clear ratio decidendi to the court

for answering the matters in issue in the present petition.

44. For the reasons afore-recorded, we are of the view

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that the provisions of Order 6 Rule 17 read with Order 41 Rule

33 of the Code of Civil Procedure cannot be resorted to amend

the application filed by the claimants under section 18 of the

Land Acquisition Act in so far as it relates to enhancement of

the amount of compensation claimed. However, the

provisions of amendment under the Code can be invoked in

amending the memorandum of appeal or a petition before the

reference court in so far as it relates to other matters

pertaining to pleading and/or evidence, e.g. location, potential

of the acquired land, sale instances which would benefit the

applicants to justify the amount claimed under Section 18 and

which could not be brought before the Court by them despite

due diligence. In other words, amendment of memorandum of

appeal should be understood in distinction to amendment of

an application filed before the Collector under Section 18 of

the Act.

45. Having discussed various legal aspects of the

questions involved in the present Appeals, now we would even

proceed to discuss the application for amendment in the

alternative. Even if we were to assume that provisions of

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Order 6 Rule 17 of the Code of Civil Procedure can be invoked

in amending a petition under Section 18, even then on merits

the present applications ought to be dismissed. The claim

petitions under Section 18 were filed by the applicants on 8th

November 1989, while the Notification under Section 4 of the

Act was issued on 24th September 1986. Obviously, prior to

filing of the application for reference, the Claimants had

claimed compensation and contested the proceedings before

the Collector in respect to the notice under Section 9 of the

Act. The claim petition in turn were referred to the Reference

Court which made its Award and judgment on 4th May 1996

after a lapse of nearly seven years. During the pendency of

these petitions, the Claimants filed an application for

amendment of the claim petition on 10th August 1994 which

was allowed vide order dated 24th August 1994 and the

Claimants claimed compensation at the rate of Rs.500/- while

they had initially claimed it at the rate of Rs.50/- under Section

18 of the Act. The parties led evidence on this basis and

finally vide Award dated 4th May 1996, the Reference Court

granted compensation at the rate of Rs.160/- per sq. mtr. to

the Claimants. These Appeals were filed by the State as well

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as the Claimants in the years 1996 and 1997 onwards and

since then these Appeals have been pending, while the Civil

Applications for enhancing the compensation claim from Rs.

500/- to Rs.5,000/- and seeking amendment have been filed in

the year 2004 and onwards after a lapse of more than seven

years. It is doubtful whether the amendment applications filed

by the Claimants could have been allowed by the learned

Reference Court, but since there is no challenge to that order

before us and the Appellants had already accepted the

amendment and led evidence in that regard, we are not

entering into that controversy in the present Appeals primarily

for want of challenge and that parties by their conduct

accepted the said amendment and faced the trial before the

learned Reference Court. The conduct of the applicants is

such that they would not be entitled in equity and law from

claiming such an amendment. Firstly, when they filed an

application for amendment before the Reference Court, they

were in a position and ought to have asked for the amount

whatever they wanted to. They opted to amend their petitions

and claim compensation only at the rate of Rs.500/- per sq.

mtr. that too after a lapse of more than seven years from the

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date of filing the application for Reference. Again, when the

present Appeals were filed, they waited for a period of seven

years before they filed the present applications. The

Claimants cannot wait indefinitely and then ask for

amendment after such a prolonged and unexplained delay.

The present application for amendment obviously suffers from

the defect of delay and laches. Even reference to the

judgment of this Court in First Appeal No. 646 of 2004 (supra)

does not advance the case of the applicants any further. The

Reference Court, in those cases, already had granted

compensation at the rate of Rs.200/- to Rs.230/- per sq. mtr.

and in those Appeals, the Claimants in their Appeals, at the

first instance, had asked for compensation at the rate of Rs.

2000/- to Rs.2200/- per sq. mtr. Which were filed in year 1995

though relating to the same Notification and adjacent villages.

In other words, even before they filed the Appeal, the amount

claimed by other claimants in those Appeals was well known

and at least it would be expected to be known. The present

applicants fairly would have knowledge or deemed to have

knowledge of those appeals where the claimants had claimed

compensation at the rate of Rs.2000/- to Rs.2200/- per sq. mtr.

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Now, suddenly raising the claim at the rate of Rs.5000/- per

sq. mtr. is not only a belated attempt on the part of the

applicants but even lacks bona fide. In support of their claim,

they have attempted to file some documents, such as, map,

judgment of this Court in First Appeal No.646 of 1995 and

letter dated 16th October 1984 issued by CIDCO giving a piece

of land for weigh bridge on lease for 60 years at the rate of Rs.

1873.28 per sq. mtr. This, in any case, would not advance the

case of the Applicants even in regard to the prayer made for

leading additional evidence. The application similar to the

application for amendment is belated and is an application

which lacks bona fides. These letters are of the year 1984

referred in Land References and against the judgments out of

which First Appeal No.646 of 1995 arises, were passed in the

year 1993 and they must have been well within the knowledge

of these Applicants. More so, the applications are vague and

one a mere attempt to delay the present proceedings. We

also cannot ignore the fact that the State Government would

have to accrue further liability for payment of statutory

interest on the enhanced compensation for the period during

which these proceedings are pending. There is no justification

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made out by the Applicants to show that the present Civil

Applications are bona fide and the prayers made should be

granted as, despite due diligence and care, they were not in a

position to bring on record the documents and to lead

additional evidence besides prayer for amendment of the

claim petition.

46.

Another aspect of these Applications for amendment

is that the claim now sought to be amended by the Applicants

is hit by the provisions of Section 18(2) of the Act as they

would be deemed to be barred by time. It is a settled principle

of law that the provisions of Order 6 Rule 17 for amending a

plaint even cannot be permitted where the claim has become

barred by time and the application for amendment is moved

after undue delay. Reference in this regard can be made to

the case of K. Raheja Construction Ltd.vs. Union of India, AIR

1995 SC 1768.

The Collector and the Court had no power to condone the

delay, which obviously means that whatever claim they have

raised while making Reference under Section 18 of the Act

before the Collector would bound the Applicants.

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47. Still another argument which can be fairly addressed

against the Applicants is that they are trying to withdraw an

admission made by them with full awareness of the law and

the consequences thereof. Under Section 17 of the Evidence

Act, admission has been defined as a statement, oral or

documentary, which suggests any inference as to any fact in

issue or relevant fact and which is made by any of the persons

and under the circumstances stated in the Act. Statement of

a fact made by a party to a proceeding are admissions. Under

Section 18, the persons who have any proprietary or pecuniary

interest in the subject matter of the proceeding and who make

a statement in their character of the persons so interested are

admissions. Keeping in view the scope of Sections 18 and 19

of the Act, admission of fact is made by the applicant by

referring to the amount of compensation they claim as true

market value of the acquired land. No doubt, it is obligatory

upon the State to pay true market value of the acquired land

to the claimants, but it has to be in accordance with law.

Once the Collector makes his award, then the onus shifts to

the applicants to show that their objections in regard to extent

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of compensation are justifiable and the amount claimed by

them in that application is payable to them. They are bound

by the admission and are expected to prove their claim in

accordance with law.

48. Reliance on behalf of the State was also

placed upon the principle of estoppel as it creates a bar that

prevents the Claimants from making higher a claim was right

that contradicts what they had claimed earlier in an

application under Section 18 of the Act. There is no

justification on record to show as to why the Applicants should

be permitted to withdraw such definite admissions when even

no circumstances have been suggested. As held in the case of

P.B. Gupta (supra), withdrawal of admission cannot be

permitted as a matter of routine and the party which made the

admission normally would be bound by such admission.

49. The cumulative effect of our above discussion of well

settled principles of law is that the present Civil Applications

for amendment as well as for leading additional evidence

suffer from the defect of delay, laches and even lack bona

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fides. These Civil Applications, if allowed at this stage, would

certainly cause serious prejudice to the non-Applicants.

Resultantly, all these Civil Applications are dismissed as not

maintainable as well as on merits.

Merits of the Appeal

50. During the course of argument, the learned Counsel

appearing for the Claimants also referred to the letter of

September 2007 which was placed on record during the

course of hearing stating that the Government had decided to

acquiesce to the to the judgment of the Court dated 21st June

2007 passed in First Appeal No. 646 of 1995 and argued that

they are entitled to the amount of compensation claimed by

them. The learned Counsel appearing for the State then

informed the Court that the State had not preferred any

Special Leave Petition against the judgment of the Court. In

these circumstances, the judgment has attained finality and,

therefore, the Claimants would be in any way entitled to the

compensation at the rate of Rs.500/- per sq. mtr. as claimed

by them.

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51. It has been brought on record that first notification

under section 4 of the Act was issued on 1st February, 1970 as

this notification lapsed. In view of the amended provision of

the Land Acquisition Act, the State Government issued a fresh

notification under section 4 on 24th September, 1986. On

lapsing of the first notification and upon acquisition of the

lands vide the second notification dated 24.9.1986, as already

noticed, SLAO while exercising the power of the Collector vide

his award dated 18th September, 1989 granted compensation

at the rate of Rs.4/- per sq. mtr. The possession of the land

was taken in October, 1989. Section 18 petitions had been

filed upon which the reference court enhanced the

compensation payable to the claimants at the rate of Rs.160/-

per sq. mtr. in respect of the lands from village Padgha as well

village Roadpali. The compensation was granted between Rs.

200/- to Rs.230/- per sq. mtr., depending upon the location of

the land, vide his award dated 4.5.1996. The appeals in

regard to village Roadpali have been disposed of by this court

by First Appeal No.646 of 1995. In the present case, the

learned reference court while making the award and

enhancing the compensation at the rate of Rs.160/- observed

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as under:

“35. The above observation make it clear
that if the other evidence of the sale of the
similar land is not available, then this type of
the evidence be considered for working out

the market value of the land. Here, the
claimants’ valuer in his valuation report has
shown some instances made by the
acquiring body. The evidence of the witness

of the acquiring body also shows the
instances made by the acquiring body at the

time of Notification, which I have considered.
In addition to this I have already stated that
these lands face a draw back. These lands

are situate on the boundary of the
development plan and there are no free
access or the road to go to the acquired
lands. In addition to this the judgments,

produced on behalf of the claimants are
challenged in the appeals. The view taken

by my predecessor has not been finalized.
For all these reasons, I find it very difficult to
ascertain the market value of the land at the

claimant.

36. We usually see considering the
present we estimate about the future, but we
do not find for estimating things of past

things of future considered. Therefore,
considering the land value awarded in those
judgments, which were not in existence at
the time of the Notification, I find it difficult
to go back because this evidence came into
existence after 7 years of the date of the
Notification. This is not the proximate time
allowing me to consider to be an instance on
or about the date of the Notifications.

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37. Counsel of the claimants also relied

on the judgments of Nos.172 of 1986 and
168 of 1986 of the lands situated in village
Ambetarghar, which is adjoining to village

Padaghe towards the West. These lands
were notified in the year 1970. In the year
1977 compensation was awarded at the rate
of Rs.90/- psm. Counsel submits that

considering the ratio of appreciation, the
claimants be awarded compensation at the
rate of Rs.500/- psm. I find it very difficult to
accept this contention. In existence of sales

made by the acquiring body at the time of
the Notification or in proximate of the date of

the Notification, if available and relied by
both the parties, then it will not be better for
me to consider the market value on the rate

of appreciation which will not provide
justification to the acquiring body. In this
case the claimants also claimed
compensation at the rate of Rs.100/- psm.

But actually claimed compensation at the
rate of Rs.50/- psm. disclosing the reason

that the claimants had no amount to pay the
Court fee, so less claim was made. Later on
the references were amended and they

claimed compensation at the rate of Rs.500/-
psm. for accepting the market value at the
rate of Rs.500/- p.m. Absolutely from all the
angles, there is no evidence with the
claimants. The market value, after all is a

value of the bonafide sale transaction passed
by the buyer to the seller, and this is the
value which provides satisfaction and
justification to the seller and also to the
buyer, having realizationed knowledge about
the market value of the land at the time of
making reference, the claimants made claim
of Rs.100/- psm. On the basis of the
valuation report and judgments, which were
not relied in the petition, but produced in

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Court, after 7-8 years, enhanced the claim. I

think this conduct of the claimants is not fair.
I do agree they have right to claim this much
amount of compensation for the acquired

lands. But at the same time it is their duty to
express their satisfaction in showing definite
market value of the land before making the
initial claim. Shri Ambike on oath specifically

stated that there is no any kind of
development on the acquired lands. Still the
lands are lying as barren lands. For all these
reasons, I find the market value of the land

should be Rs.160/- psm. which provides
satisfaction to the buyer and seller. I award

the same. Hence the order.”

52. As is evident from the above discussion, the main

reliance was placed upon the report of the expert valuer and

the letters issued by CIDCO in relation to sale of plots from the

same vicinity. According to the claimants, as CIDCO had sold

the land at much higher price, they are entitled to

compensation at the rate of Rs.500/- per sq. mtr. while

according to the State, the compensation awarded by the

reference court is much on the higher side and should be

reduced, if not, restore it to the award of the Collector.

53. During the course of arguments, the learned counsel

appearing for both the parties fairly conceded that the

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evidence led, documents produced and deposition of the

witnesses is similar to that of LAR No.138 of 1990. This award

which was made on 23rd December, 1993 was available to the

reference court which passed the award under appeal and

furthermore that village Roadpali is adjacent to village Padghe.

Thus, the judgment of this court in First Appeal No.646 of 1995

decided on 21st June, 2007 shall squarely cover the issue of

fact and law even in the present appeals. In First appeal No.

646 of 1995, after detailed discussion, this court held as under

and granted the following compensation to the claimants:

“23. Thus, in view of the above stated
principle, we have to make substantial

deduction from the price that we determine
with particular reference to the facts of the
present case. Certain areas have been
developed. Even the purpose for which the

lands were acquired had potential, but it does
not mean that at the time of acquisition, the
same could be compared to a developed area
or an area which was totally commercial and

was capable of fetching much higher price
than that a willing purchaser would buy in
relation to the acquired lands. We have also
held that we cannot blame the parties and
particularly the claimants that they have not
produced and proved any sale-deeds on
record. There were no sale-deeds executed
right from 1970 to 1984 and it was only
already developed land which was given on
perpetual lease by the authorities/Corporation
for commercial or other purpose. Mainly, three

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instances are available on record which have

been proved in accordance with law and have
to be considered for determining the fair
market value of the lands. First instance is an

allotment letter dated 16th October 1984 vide
which an area of 420 square metres being plot
No.413 at Kalamboli, Navi Mumbai, was
allotted on 60 years’ lease for total premium of

Rs.7,06,777. This instance was proved by the
witness No.1 Shrikrishna, who stated and who
gave rate of the plot at Rs.1873.28 per square
metre. The letter of allotment showed that

water and power supplies were available; and
charges were to be paid directly by the allottee

to the authorities concerned. Another witness
Karyal, on behalf of the Claimants, also made a
reference to this instance, and also stated that

CIDCO had developed wholesale steel market
in the year 1980 by planning an area of 305
hectares. In his statement he has further
stated that in regard to the sale of Anusuya for

the purpose of petrol pump the land was
leased out by way of tender; and it was at the

rate of Rs.240 per square meter. The other
instance is a lease-deed dated 2nd May, 1986
which was proved and placed on record. In the

submission of this witness, the instance was,
where the plot in question was given at a
premium of Rs.345.87 per square metre; and
this was with regard to the plot admeasuring
2250.24 square metre. Still another instance

which was proved by the Claimants is with
regard to the plot which was admeasuring
1466 square meters given for a weigh bridge
at the rate of Rs.2727 per square metre.

24, All the above instances relate to
village Kalamboli. From Exhibit 15, the map, it
is clear that the location of these lands is
nearer to the highway and is part of the
already developed area, i.e., steel market or

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industrial area. Certainly, the lands in

question are neither developed to that extent
nor entire lands about the national highway.
The instances that have been referred to by

the acquiring authority related to the lands
which are much farther away from the
acquired lands and the developed area. The
respondents did not lead any evidence before

the learned reference Court, and only relied
upon the record of the acquiring authority. On
the basis of the instances proved by the
Claimants, it is clear that there has been an

increasing trend in the values of the lands
surrounding the acquired lands; but that itself

would not entitle the Claimants for the same
compensation for which the property was
leased out or leasehold rights were created by

the Corporation. These lands were given after
they were fully developed where commercial
development had taken place, water and
electricity were available, roads and other

essential amenities were duly provided for and
that all would form part of the costs of

development, which have to be deducted from
the compensation to be given to the claimants.
The Court would also have to consider that in

the award in LAR No.172 of 1996, the learned
reference Court had awarded R.90 per square
metre in the year 1977. The lands in question
were acquired 7 years later i.e. In the year
1984. Merely three instances referred to by

the Claimants as well as a petrol pump
instance can hardly form the basis for
determination of the compensation. Since we
have found that the instances referred to are
of the lands which are fully developed they
cannot be taken into consideration and
therefore, we have taken the average of two
instances referred to in paragraph 23 above;

and have computed the amount of
compensation by deducting 25%. That is how

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the compensation has been worked out by us

at the rate of Rs.1725/- per square metre with
statutory benefits as contemplated under
Sections 23 and 23(1A) of the Land Acquisition

Act.

25. In the result, the Appeals are
dismissed. Consequently, the Cross Objections

are partly allowed. All Civil Applications stand
disposed of. No order as to costs.”

    54.           As     in
                                
                               the     present            case,      the     applications             for

amendment have been rejected and the claimants would be

entitled at best to claim the amounts which they had claimed

by amending their petitions before the reference court i.e. at

the rate of Rs.500/- per sq. mtr. The evidence discussed in the

judgment under appeal clearly shows that in the MIDC area,

development was started in the year 1968 and there are

number of industrial area adjacent to village Roadpali and

Village Padghe is only divided by a river. This has come in

evidence and there is hardly any dispute in that regard. As

per the valuation report Exhibit 47, it was stated that in village

Kalamboli, there was a premium of Rs.1837.28 per sq. mtr.

when it was given for a weigh bridge for 60 years lease. It is a

settled principle of law that the development on commercial or

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even residential plots would not reflect the true market value

for an agricultural lands which have been acquired as large

chunk. Be that as it may, the compensation granted by the

reference court in the judgment under appeal is in no way

unreasonable or unfair. It is to be enhanced in terms of the

judgment of this court in different cases.

55.

The Claimants, thus, would be entitled to the full

claim for compensation claimed by them i.e. at the rate of Rs.

500/- per sq. mtr.

56. The above order would be applicable to all the

Appeals and the Cross-Objections except in the four Appeal

Nos. 1510 of 2006 to 1513 of 2006 where the Claimants had

claimed compensation at the rate of Rs.1000/- per sq. mtr. in

their applications under Section 18 of the Land Acquisition Act.

However, before the trial Court as well as before this Court in

their Appeals, they have restricted their claim to Rs.400/- per

sq. mtr. and they paid Court Fee before the Courts on that

quantum. In other words, they have not pressed their claim

for any sum higher than Rs.400/- per sq. mtr. and no steps

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were taken by them before this Court even to make up the

deficiency in payment of Court Fee and/or take any other

steps relating to amendment or otherwise in these Appeals.

Thus, keeping in view the judgments of the Supreme Court in

the case of Govinda Raju (supra) and Scheduled Caste Co-op.

Land Owning Society Ltd. (supra), these Claimants would be

entitled to claim and are granted compensation at the rate of

Rs.400/- per sq. mtr. with all other statutory benefits.

56. In view of the above discussion, the Appeals filed by

the State are dismissed, while the Appeals and the Cross-

objections filed by the claimants are allowed. They are

granted compensation at the rate of Rs.500/- per sq. mtr. with

all other statutory benefits in accordance with law, except First

Appeal Nos. 1510/2006, 1511/2006, 1512/2006 and

1513/2006, where the Claimants are granted compensation at

the rate of Rs.400/- per sq. mtr. with all statutory benefits in

accordance with law. Resultantly, all the Appeals and

Applications are disposed of with no order as to costs.

CHIEF JUSTICE

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A. P. DESHPANDE, J.

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