{"id":205637,"date":"1968-01-31T00:00:00","date_gmt":"1968-01-30T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/special-land-acquisition-vs-m-s-seshagiri-rao-anr-on-31-january-1968"},"modified":"2019-04-09T10:57:02","modified_gmt":"2019-04-09T05:27:02","slug":"special-land-acquisition-vs-m-s-seshagiri-rao-anr-on-31-january-1968","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/special-land-acquisition-vs-m-s-seshagiri-rao-anr-on-31-january-1968","title":{"rendered":"Special Land Acquisition & … vs M. S. Seshagiri Rao & Anr on 31 January, 1968"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Special Land Acquisition & … vs M. S. Seshagiri Rao & Anr on 31 January, 1968<\/div>\n
Equivalent citations: 1968 AIR 1045, \t\t 1968 SCR (2) 892<\/div>\n
Author: S C.<\/div>\n
Bench: Shah, J.C.<\/div>\n
           PETITIONER:\nSPECIAL LAND ACQUISITION & REHABILITATION  OFFICER, SAGAR\n\n\tVs.\n\nRESPONDENT:\nM.   S. SESHAGIRI RAO & ANR.\n\nDATE OF JUDGMENT:\n31\/01\/1968\n\nBENCH:\nSHAH, J.C.\nBENCH:\nSHAH, J.C.\nRAMASWAMI, V.\n\nCITATION:\n 1968 AIR 1045\t\t  1968 SCR  (2) 892\n CITATOR INFO :\n R\t    1972 SC2224\t (1)\n\n\nACT:\nLand Acquisition Act (1 of 1894).-Grant of land on condition\nto  surrender  without compensation-Proceedings\t under\tLand\nAcquisition Act-Compensation, how payable.\n\n\n\nHEADNOTE:\nThe,  Government  of Mysore, granted a plot of land  to\t the\nrespondents  with the added condition that \"in the event  of\nthe Government requiring the land for any reason whatsoever.\nthe  grantee  shall  surrender the land\t to  the  Government\nwithout claiming any compensation\".  The Government acquired\nthe  land by adopting the procedure prescribed by  the\tLand\nAcquisition  Act  but  no compensation was  awarded  to\t the\ngrantees for the land.\tThe High Court, in appeal, held that\nsince the Government had failed to exercise the right  which\nit had under the terms of the grant and had acted under\t the\nLand   Acquisition  Act,  the  grantees\t were  entitled\t  to\ncompensation  as  provided under the Act.  In  appeal,\tthis\nCourt,\nHELD  : After obtaining possession of the land in  pursuance\nof  statutory authority under s. 17 of the Land\t Acquisition\nAct,  the Government could not seek to exercise\t the  option\nconferred  by  the terms of the grant.\t The  grantees\twere\nentitled to Compensation for the land of which the ownership\nwas  vested in them.  But in assessing compensation  payable\nto  the grantees, existence of the condition which  severely\nrestricted their right could not be ignored. [B-C]\nThe Act is silent as to the acquisition of partial interests\nin land but it cannot be inferred therefrom that interest in\nland  restricted because of the existence of rights  of\t the\nState in the land cannot be acquired.  When land is notified\nfor  acquisition for a public purpose and the State  has  no\ninterest   therein,  market  value  of\tthe  land  must\t  be\ndetermined and apportioned among the persons entitled to the\nland.\tWhere the interest of the owner is. clogged  by\t the\nright  of  the State, the compensation payable is  only\t the\nmarket value of that interest, subject to the clog. [895  B,\nC]\nThe  Collector\tof Bombay v. Nusserwanji Rattanji  Mistri  &\nOrs.<\/a> [1955] S.C.R. 1311, followed.\nAttorney-General  v.  De Kayser's Royal Hotel  Ltd.,  [1920]\nA.C. 508, referred to.\nGovernment  of\tBombay v. Esufali Salebhai, I.L.R.  34\tBom.\n618, approved.\nState  of  Madras v. A.Y.S. Parisutha Nadar,<\/a>  [1961]  M.L.J.\n285, disapproved.\n\n\n\nJUDGMENT:\n<\/pre>\n
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 335 of 1966.
\nAppeal\tby special leave from the judgment and\torder  dated
\nNovember  6, 1963 of the Mysore High Court in Misc.   Appeal
\nNo. 293 of 1961.\n<\/p>\n
could not be ignored. [894 B-C]\t\t\t     I
\n893<\/span>
\nNiren  De,  Solicitor-General, R. Gopalakrishnan and  S.  P.
\nNayar, for the appellant.\n<\/p>\n
Naunit Lal and T. S. Ramachandran, for the respondents.
\nThe Judgment of the Court was delivered by
\nShah, J. On April 15, 1952, the Government of Mysore granted
\nan  area  of  I I acres and 38 gunthas of  land\t situate  in
\nvillage\t Hebbyle  to the respondents to\t this  appeal.\t The
\ngrant  was  made  in Form Appendix ‘E’ to  the\tMysore\tLand
\nRevenue Rule.-, with the added condition that “in the  event
\nof  the\t Government  requiring\tthe  land  for\tany   reason
\nwhatsoever,  the  grantee shall surrender the  land  to\t the
\nGovernment  without claiming any compensation”.\t On  January
\n11, 1958, the Government of Mysore published a\tnotification
\nunder s. 4 of the Land Acquisition Act that the land granted
\nwas  likely  to\t be  needed for\t a  public  purpose.   By  a
\nsubsequent  notification  made under s. 17(4)  of  the\tLand
\nAcquisition Act, Government dispensed with the enquiry under
\ns.  5-A of the Act and obtained possession of the land.\t  In
\nassessing compensation, the Land Acquisition Officer did not
\naward any compensation for the land, and awarded Rs. 1,495\/-
\nfor improvement claimed to have been made to the land by the
\ngrantees.    In\t a  reference  under  s.  18  of  the\tLand
\nAcquisition  Act,  the District Court agreed with  the\tLand
\nAcquisition  Officer.  In appeal, the High Court  of  Mysore
\nset  aside the award and remanded the case to  the  District
\nCourt with a direction to determine the compensation payable
\nto the grantees and to dispose of the case according to law.
\nThe High Court observed that since the Government had failed
\nto  exercise the right which it had under the terms  of\t the
\ngrant  and had adopted the procedure prescribed by the\tLand
\nAcquisition  Act,  compensation for acquisition\t under\t-the
\nLand  Acquisition Act and the process by which the  grantees
\nwere  to be deprived of the land must be followed.   Against
\nthe order passed by the High Court, this appeal is preferred
\nwith special leave.\n<\/p>\n
Under  s.  3(a) “land” is defined as including\tbenefits  to
\narise  out  of\tland, and things attached to  the  earth  or
\npermanently fastened to anything attached to the earth.\t  By
\ns.  4 the appropriate Goverrnment is authorised to  issue  a
\nnotification  that  land  in any locality is  needed  or  is
\nlikely\tto be needed for any public purpose, and  thereafter
\nto  exercise  certain  powers in respect  of  the  land\t for
\ndetermining  its suitability for the purpose notified.\t The
\nGovernment  may\t under\ts.  17\tin  cases  of  urgency\ttake
\npossession of any waste or arable land needed for the public
\npurpose\t and  the -land thereupon vests\t absolutely  in\t the
\nGovernment free from all encumbrances.\n<\/p>\n
The  Government\t of Mysore did not purport to  exercise\t the
\npower  reserved by the terms of the grant, and\tadopted\t the
\nproce-\n<\/p>\n
894<\/span><\/p>\n
dure prescribed by the Land Acquisition Act.  The High Court
\nobserved, relying upon the decision of the House of Lords in
\nAttorney-General v. De Kayser’s Royal Hotel Ltd.(1) that the
\nGovernment   could   not,  after  adopting   the   procedure
\nprescribed  by the Land Acquisition Act, seek to  resort  to
\nthe  conditions of the grant and claim that no\tcompensation
\nfor  acquisition of the land was payable.  It is  true\tthat
\nafter  obtaining  possession  of the land  in  pursuance  of
\nstatutory  authority under S. 17, the Government  of  Mysore
\ncould not seek to exercise the option conferred by the terms
\nof the grant.  But on that account in assessing compensation
\npayable\t to the grantees, existence of the  condition  which
\nseverely  restricted their right could not be ignored.\t The
\ngrantees  were\tentitled to compensation for  the,  land  of
\nwhich the ownership was vested in them.\t The measure of that
\ncompensation is the market value of the land at the date  of
\nthe  notification, and the measure of that market  value  is
\nwhat a willing purchaser may at the date of the notification
\nunder  S.  4 pay for the right to the land  subject  to\t the
\noption vested in the Government.\n<\/p>\n
The High Court also placed reliance upon the judgment of the
\nMadras\tHigh  Court  in\t The State of Madras  v.  A.  Y.  S.
\nParisutha Nadar<\/a>(2).  In that case the main question  decided
\nwas  whether it was open to a claimant to  compensation\t for
\nland under acquisition to assert title to the land  notified
\nfor  acquisition  as against the State Government  when\t the
\nland had become vested in the Government by the operation of
\nthe Madras Estates (Abolition and Conversion into  Ryotwari)
\nAct  26\t of 1948.  On behalf of the State it  was  contended
\nthat  once an estate is taken over by the State in  exercise
\nof  its powers under the Estates Abolition Act,\t the  entire
\nland  in  the estate so taken over vested in the  State\t ‘in
\nabsolute ownership, and that no other claim of ownership  in
\nrespect of any parcel of the land in the estate could be put
\nforward by any other person as against the State  Government
\nwithout\t obtaining a ryotwari patta under the  machinery  of
\nthe Act.  The High Court rejected that contention  observing
\nthat  the Government availing itself of the machinery  under
\nthe  Land  Acquisition Act for\tcompulsory  acquisition\t and
\ntreating  the  subject-matter  of  the\tacquisition  as\t not
\nbelonging to itself but to others, is under an obligation to
\npay  compensation  as  provided in the\tAct,  and  that\t the
\nGovernment was incompetent in the proceeding under the\tLand
\nAcquisition.   Act  to\tput forward its\t own  title  to\t the
\nproperty sought to be acquired so as to defeat the rights of
\npersons\t entitled to the compensation.\tThe propositions  so
\nbroadly stated are, in our judgment, not accurate.  The\t Act
\ncontemplates  acquisition of land for a public purpose.\t  By
\nacquisition  of\t land  is  intended  the  purchase  of\tsuch
\ninterest  outstanding  in others as clog the  right  of\t the
\nGovernment to use the land for the public purpose.  Where
\n(1) [1920] A.C. 508.\n<\/p>\n
(2) [1961] 2 M.L.J. 285.\n<\/p>\n
895<\/span><\/p>\n
the  land  is owned by a single person,\t the  entire  market
\nvalue payable for deprivation of the ownership is payable to
\nthat  person  : if the interest is  divided,  for  instance,
\nwhere  it  belongs to several persons, or where there  is  a
\nmortgage  or  a lease outstanding on the land, or  the\tland
\nbelongs\t to one and a house thereon to another,\t or  limited
\ninterests  in  the  land are vested  in\t different  persons,
\napportionment of the compensation is contemplated.  The\t Act
\nis,  it\t is true, silent as to the  acquisition\t of  partial
\ninterests  in the land, but it cannot be inferred  therefrom
\nthat interest in land restricted because of the existence of
\nrights\tof the State in the land cannot be  acquired.\tWhen
\nland  is notified for acquisition for a public\tpurpose\t and
\nthe State has no interest therein, market value of the\tland
\nmust  be  determined  and  apportioned\tamong  the   persons
\nentitled  to the land.\tWhere the interest of the  owner  is
\nclogged by the right of the State, the compensation  payable
\nis  only the market value of that interest, subject  to\t the
\nclog.\n<\/p>\n
We  are unable to agree with the High Court of\tMadras\tthat
\nwhen  land is notified for acquisition, and in the land\t the
\nState  has  an\tinterest, or the ownership of  the  land  is
\nsubject\t to a restrictive covenant in favour of\t the  State,
\nthe State is estopped from setting up its interest or  right
\nin  the\t proceedings  for  acquisition.\t  The  State  in   a
\nproceeding for acquisition does not acquire its own interest
\nin  the land, and the Collector offers and the\tCivil  Court
\nassesses compensation for acquisition of the interest of the
\nprivate\t persons  which\t gets  extinguished  by\t  compulsory
\nacquisition  and pays compensation equivalent to the  market
\nvalue  of that interest.  There is nothing in the Act  which
\nprevents  the  State  from claiming in\tthe  proceeding\t for
\nacquisition  of\t land  notified\t for  acquisition  that\t the
\ninterest proposed to be acquired is a restrictive interest.
\nWe  agree  with\t the observations  made\t by  Batchelor,\t J.,
\nGovernment of Bombay v. Esufali Salebhai(1) at p. 636 :\n<\/p>\n
\t      ”\t The  procedure laid down in the Act  is  so
\n\t      laid down as being appropriate to the  special
\n\t      case which is considered in the Act, i.e., the
\n\t      case  where the complete interests  are  owned
\n\t      privately.   But\tthat special case is,  as  I
\n\t      understand it, singled out by the\t legislature
\n\t      as  the norm or type with the intent  that  in
\n\t      other  cases which only partially\t conform  to
\n\t      the  type the procedure should be followed  in
\n\t      so  far  as it is appropriate, nor  that\tsuch
\n\t      cases should be excluded from the Act  because
\n\t      they  do not wholly conform to the  type.\t  In
\n\t      other words, Government . . . are not debarred
\n\t      from   acquiring\tand  paying  for  the\tonly
\n\t      outstanding interests merely because the\tAct,
\n\t      which primarily contemplates all interests as
\n\t      I.L.R. 34 Bom. 618.\n<\/p><\/blockquote>\n
\t      896<\/span><\/p>\n
\t      held  outside  Government, directs  that\tthe,
\n\t      entire  compensation  based  upon\t the  market
\n\t      value  of the whole land, must be\t distributed
\n\t      among  the claimants.  In such  circumstances,
\n\t      as  it appears to me, there is no\t insuperable
\n\t      objection\t to  adapting the procedure  to\t the
\n\t      case  on\tthe  footing  that  the\t outstanding
\n\t      interests,  which\t are the only things  to  be
\n\t      acquired, are the only things to be paid for.”\n<\/p><\/blockquote>\n
The  principle of Esufali Salebhai’s case(1) was it  may  be
\nobserved, approved by this Court in The Collector of  Bombay
\nv. Nusserwanji Rattanji Mistri & Others<\/a>(1).
\nBut  the  view\texpressed by the  District  Court  that\t the
\ngrantees  are not entitled to any compensation for the\tland
\ncannot\tbe  sustained.\t The District  Court  was  bound  to
\ndetermine the market value, at the date of the\tnotification
\nunder  s. 4 of the Land Acquisition Act, of the interest  of
\nthe grantees in the land.\n<\/p>\n
The  order passed by he High Court is maintained subject  to
\nthe  modification that the market value of the\tinterest  of
\nthe  grantees  in  the\tland  (of  the\tnature\thereinbefore
\nmentioned) at the date of the notification under s. 4 of the
\nLand  Acquisition  Act shall be determined and paid  to\t the
\ngrantees  in  addition\tto the\tcompensation  paid  for\t the
\nimprovement in the land.  There will be no order as to costs
\nin this appeal.\n<\/p>\n
Y.P.\t\t\t Order of the High Court modified.\n(1)  I.L.R. 34 Bom. 618.\n(2)  [1955] S. C. R . 111 I.\n897<\/span>\n\n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Special Land Acquisition & … vs M. S. Seshagiri Rao & Anr on 31 January, 1968 Equivalent citations: 1968 AIR 1045, 1968 SCR (2) 892 Author: S C. Bench: Shah, J.C. PETITIONER: SPECIAL LAND ACQUISITION & REHABILITATION OFFICER, SAGAR Vs. RESPONDENT: M. S. SESHAGIRI RAO & ANR. DATE OF JUDGMENT: 31\/01\/1968 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-205637","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nSpecial Land Acquisition & ... vs M. S. 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