Professional Documents
Culture Documents
1. Limitation:
2. Res Judicata :
OS 72 of 2001
10. When the entire 8.29 acres was acquired, the northern
neighbour had submitted a statement to the Land
Acquisition authorities disclaiming all rights over the
acquired land. At that time there was no dispute
between the plaintiff and his brothers regarding rights to
the land. According to the partition deed the area
allotted to the plaintiff was 3 acres, the area for the
defendant was 1 acre and the area allotted to
Avarankutty was 2 acres. Since there was no dispute
inter se regarding the title to the acquired property,
between the brothers, the acquisition official did not
have to decide the apportionment of the amount of
compensation at that stage. Since the reference was
also on the question of the quantum of compensation,
the Sub Court also did not have occasion to decide the
proportion in which the amount was to be divided.
14. The cause of action for the suit arose in March 2001,
when the High Court ordered the deposit amount to be
given equally to the three claimants, with liberty to the
plaintiff to seek appropriate relief to get his real lawful
share of the compensation amount and thereafter within
the jurisdiction of this Court where the defendant is
residing and where the compensation amount is
deposited.
Plaintiff
List of Documents
O. S. 7 2 of 2001
K V Shaikkutty : Defendant
Statement of Facts.
Grounds of Appeal
7. The Lower Court erred in holding that the suit is bad for
non-joinder when no opportunity was given to the
plaintiff to cure the alleged Nonjoinder. The Lower Court
erred in holding that the suit is bad for Nonjoinder when
the primary dispute is only between the plaintiff and
defendant that can be resolved without the junction of
the other executants of the partition deed
09-07-1981 Adopted as the 4[1] notfn date In the Sub Court order
20-09-1996 Cheque applns IA 1143, 863 & 864 By On objections by State that they
A,B,C claimants dismissed are preferring an appeal
29-11-1995 Claimants move Supreme Court for addl Disallowed based on Premnath
comp & int on solatium
23-01-2001 IA 493 dismissed as defective appln Parties names not shown - notice
not given to claimants
24-01-2001 IA 920, 921 & 985 of 1999 for cheque 2:1:3 But order set aside in CRP
By claimants B, C and A by B Claimant
IA 985 allowed
CRP 1699 of 2002 filed by A claimant Ag. IA 251/02 order stay granted
19-11-2003 IA 1996, 1997, 2067 by claimants for Cheque Allowed by Sub Court
16-02-2005 CRP 1699 allowed - Order in I A 251 set CRP 389 of 2004 by State
aside and court directed to consider if dismissed
refund is allowable
23-07-2007 CRP 411 and 594 of 2004 dismissed Ag. I A 1996 and 2067 of 2003
Mr Ananthakrishnan transferred
Fact profile
3. The prayer in the suit was for declaration that that the
plaintiff is entitled to the amount in court deposit in
LAR 32 of 1988 of the Manjeri Sub Court, and for a
consequential injunction restraining the defendant
from objecting to the plaintiff receiving the said
amount from the Sub Court, Manjeri. The dispute
regarding the amount in court deposit arose as
narrated below:
FACT PROFILE
18. This has not resulted in any unlawful gain for the
claimants because Premnath Kapoor -- 1996 [2] SCC 71
— rendered per incuriam had been overruled by a
Constitution Bench in Sunderlal -- 2001 [7] SCC 211 --
by the time the IA was heard resulting in its dismissal.
20. The Defendant filed CRP 391 of 2001 in the High Court
against the order of the Sub Judge. Because the
reference under S 18 was limited to the enhancement
of the compensation amount and did not call for any
adjudication regarding apportionment, the High Court
set aside the order of the Sub Court, by order dated
29.03.2001. Vide 1979 KHC756. This order was
produced by the plaintiff as document No 6 along with
the plaint. But the judgment wrongly shows that this is
marked as A6. But the number of the C.RP given
therein as 600/2001 is wrong. It should be 391 of 2001.
21. Though this Court set aside the order of the Sub Court,
this court has added a rider that the plaintiff, [A
claimant] can recover the lawful amount due to him
from the defendant [the B claimant] by appropriate
proceedings, apparently relying on the proviso to S 31
[2] of the Land Acquisition Act.
23. The plaintiff then filed the present suit and sought
attachment of the excess 1/6 th which the defendant
was permitted to withdraw by IA 871 of 2001. That
application was dismissed by the trial court. Plaintiff
preferred CRP 2391 of 2001 against that order.
27. The defendant did not furnish security for the disputed
1/6th and so cheque was issued to him only for the
undisputed 1/6th The disputed 1/6th of the total amount
continues to remain in court deposit even today. That
1/6th is the subject matter of this suit.
34. Pw1 asserted that the area allotted to him was shown
as 3 acres in the partition deed, because at that time
the land to the north of the 3 acre plot, was claimed by
a stranger called Kunhammad as belonging to him. This
dispute with the northern neighbour was resolved later
and the neighbour gave up his claim.
36. The result is that the plaintiff gets title to 5.89 acres
while the defendant got rights over one acre alone.
There is no dispute about the right of Avarankutty over
2 acres. Therefore the legal title over the land will be
5.89 acres to plaintiff, 1 acre to the defendant and 2
acres to Avarankutty.
Limitation [Para 13 to 17 ]
59. The lower court has relied on 1985 KLT 687 to say that
cause of action arose on the date of dispossession of
the land, which was in 1981 in this case. [Para 16] That
ruling was under the Income Tax Act based on S 45 as
it stood then before the 1988 amendment providing for
assessment of capital gains. The decision depended on
the special provisions of the Income Tax Act regarding
revenue receipt as distinguished from Capital receipt
and also on the method of accounting of the assessee
being mercantile and not cash basis. In the mercantile
system income was assessed on accrual basis and not
on receipt basis.
60. It is in that context that the Full Bench held that the
right to the enhanced compensation amount, arose on
the date of dispossession, and interest on delayed
payment of that amount accrued in each year of delay,
so that the total interest income cannot be assessed
as income in the year when it was finally paid, but has
to be proportionately added to the income for each
year. That was not a decision in civil law as to when
the cause of action for a share in the enhanced
compensation arose.
62. The tax law now conforms to the civil law. Cause of
action for a suit strictly comes within the ambit of the
Code of Civil Procedure. In this suit, declaration of right
regarding the 1/6th share of the additional
compensation awarded by the reference court, can
arise not when the acquisition was effected, not when
the enhancement due is quantified, and not when that
calculation is confirmed by the higher court but only
when the claim for 3/6 share, allowed by the Sub Court,
was disallowed in the CRP. That was only in 2001 and
the suit was filed in 2002
63. Reliance by the lower court on the rulings 1985 KLT
572 and 1989 [1] KLT 386 is misplaced. 1985 KLT 572,
was for recovery of loss caused by the misconduct of
an employee and it was held that cause of action arose
on the date of misconduct and not when the amount of
loss was quantified. 1989 [1] KLT was a case of a suit
for damages for loss in transit where knowledge of the
loss is the starting point for limitation.
60. That the order of the reference court acting under S 18,
is only an award, and is not a “decree” which is
appealable by virtue of S 54 as if it was a decree, but
that the court deciding a reference under S 30
functions as an ordinary civil court and it passes a
decree, which is appealable under S 96 of the CPC, [not
under S 54] has been explained in AIR 1970 Gujarat 37;
2010 KHC 4130 sc
79. AIR 1945 PC 132 dealt with two suits – the first suit by
the father of the plaintiff in the second suit and the
later suit by the son. In both the claim was for a half
share in the offerings in a temple, on specified
occasions. The first suit was decreed for half share. In
the subsequent suit for a later period, claiming the
same half share for the subsequent period, defendant
raised an objection to the claim for half share. The
court held that the defendant’s objection was
prohibited by constructive Res Judicata; he cannot be
permitted to dispute the half share since he did not
raise that in the earlier suit by the father of the
plaintiff.
94. The plaint pleading is that the 2.89 is part of the land
allotted to the plaintiff and as Pw1 he has explained
why that area was not shown in A1 deed. This evidence
stands uncontradicted. The lower court ought to have
acted on the evidence instead of hypothetically holding
that the 2.89 acres belongs to six persons.
95. The defendant also has not pleaded that the 2.89 acres
belongs to all six persons. His claim was only that he
must be given an equal share with the plaintiff and
Avarankutty. By this claim he is actually excluding the
other three siblings thereby denying the right which the
court suo motu postulates. Further it is trite law that a
suit cannot be dismissed for nonjoinder without a
specific posting and opportunity to the plaintiff to cure
the defect. Subject to correction, there was no suc
posting here
97. But the plaintiff has not projected any such case in the
plaint. There is no pleading in the plaint that the
plaintiff was unable to stake his claim based on the
partition deed at the award enquiry stage because of
the absence of notice etc as alleged in para 11 of the
judgment. There was no oral evidence in the suit also.
It is a mystery how the Lower Court harboured this
fallacious idea. The case of the plaintiff is that he is
not barred by any law from insisting on the sharing of
the enhanced amount in accordance with the title to
the property
98. The trial court holds that the Land Acquisition Act is a
special statute dealing with acquisition and so party to
the proceedings can only invoke the special remedy
under that statute. As Ss 18 and 30 provide for
apportionment disputes no civil suit will lie according
to the Lower Court. The Court relies on four rulings :
AIR 1966 SC 1089; AIR 1979 SC 1250.1958 KLT 941 and
1974 KLT 724
101. 1958 KLT laid down that a third party cannot get
himself impleaded in the court dealing with a reference
u/S 18. The court expressly refers to S 21 for its
conclusion.
105. The first prayer in the suit is for the declaration of title
of the plaintiff. Declaration which is a right in rem can
be granted only by the civil court, and not by any
special forum under the Land Acquisition Act. Here it is
not a question of simple apportionment that is involved
but a determination of the rights in respect of 2.89
acres not covered by the partition deed is also to be
ascertained. That can be done only by the regular civil
court.
1 2014 [4] KHC 612 Para 9and 10 - Eminent domain and payment of compensation are part of
pre-existing common law – sovereign power - Land Acquisition Act only
prescribes procedure, not creating right or liability – Not a special act
creating a new right or liability
2 1973 SC 1059 Agrl IT sought to be recovered by suit and not under the Act – Not
maintainable acc to trial court – reversed by HC – SC holds once tax
becomes a debt, option arises for recovery
Refund is not a debt – right has to be determined and quantified which can
be done only under the statute
3 1994 DELHI 51 Shares – rectification – company court can – summary remedy - party can
file suit to secure title – here the complication is due to the 2.89 acres in
excess of 6 covered by A1 partition deed
4 2010 KHC 543 TC Societies Regn Act – S 25 does not bar an ordinary suit u/S 92 Para 39
and 40 –
5 1999 [3] GAU LJ 257 Coop society filed suit instead of arbitration under the Act – suit later
transfererd to DRT – question if suit is mainatinable – Para 20 to 22 –
Declaration cannot be granted by summary court
6 1966 SC 1089 Refund of sales tax – express bar - statutory remedy alone is available –
point decided was that when assessment is ultra vires the Act suit is
maintainable Para 24 and 26
7 1979 SC 1250 Profession tax by Municipality – express bar in statute – See Para 20 – asst
on individual partners and not on firm not ultra vres
8 1966 SC 237 Locus classicus – not properly read or understood by trial court. Para 1 to 6
is the minority view . Majority judgt begins at Para 7.
Para 12 & 13 analyse the provisions – Para 14 overrules 1959 Mys 265, on
which the trial court here relied – Para 16 is the ratio
18 and 19 deal with apportionment – right of suit recognised
9 1959 Mys 265 was concerned with the power of the L A O to refer dispute
after the award. See para 20. Overruled by SC on this point. In re suit
reference is in para 14 – no finding suit is barred
10 1961 KHC 721 Para 5 – Decision by the Collector is only an offer on behalf of the Govt .
1961 SC 1500 PC quoted.
12 1988 KHC 674 Para 4 scope of reference to court – original proceedings – award not
judgment - reference not appeal -
13 2003 SC 942 Para 36 and 37 – Award is not the source of the right to compensation; it is
only a preexisting right recognised
S12 finality – not among the persons interested – para 36 & 37
Difference between Ss 18 and 30 dealt with in extenso
14 2017 SC 2671 Para 8 – reference u/S 30 is not mandatory. Suits already filed by persons
claiming return of advance from landowner are valid
15 2009 KHC 4383 SC Jurisdiction of court confined to reference – cannot be widened – valuation
referred, no apportionment
17 1972 BOM 217 Para 22 and 24A – Under S 30, Collector has no power to decide dispute in
re apportionment – agreement or reference
18 2003 SC 2588 Joint award is combination of several decrees not one composite
determination – arose in connection with abatement
19 1963 SC 1618 When may can be read as shall – when power is conferred on puboic
authority – not where privat eindividual is given a remedy
20 1977 SC 1516 When power is coupled with duty, may to be read as shall
21 2008 SC 1155 The above rule does not apply where the authority is given to court – may
remains purely permissive
24 1985 KHC 1735 May was not read as shall – demolition of Karnataka High Court building
25 1985 KLT 687 Interest u/34 to be spread over – spl provisions of income tax act for capital
gain, and revenue receipt & accounting system – before 1988 there was no
S 45 in IT Act by which compensation amount was made taxable
26 1973 87 ITR MAD 22 Madars HC explains the legal liability under the mercantile system of
accounting and also the concept of revenue receipt
27 1987 [165] ITR 231 Supreme Court approves 87 ITR of Madras High Court because accounting
was on mercantile system
29 2009 [315] ITR 1 SC holds compensation taxable only on receipt as capital gain Ghanashyam
30 2014 [367]ITR 498 SC Confirms Ghanashyam – taxable on receipt alone no spreading over as
in the case of interest u/S 34
31 1989 [1]KLT 386 Recovery of loss of goods in transit – date of knowledge is starting point for
limitation
32 1985 KLT 572 Receovery of loss on Misconduct of employee – date of knolwedge material
34 1945 PC 132 Sharing of offerings – objection not raised in the earlier suit – cannot be
raised in subsequent suit
35 1977 SC 1680 First writ competency of dismissing officer not raised cannot be raised in
second writ
39 2014 [1] KHC 131 No estoppel when other party has not acted on representation
1 1958 KLT 941 Dispute between Jenmi and tenant referred to court, under S.18.
Brother of tenant filed impleading appn in court. Not
maintainable because he was not a party to the award enquiry.
2 1974 KLT 724 Reference u/S 32 of Kerala Act [corresponding to S 30 of
Central Act] in re 16 cents out of 1.48A. One Party raised
dispute about addl 8 cents – Court Disallowed. HC says it has to
be considered. Difft from reference u/S 18. Also refers to S. 31
agrt between parties
3 1978 KLT 315 Decision of special court is Res Judicata in subsequent suit.
Here Land Tribunal
1 1959 MYS 265 Overruled in 1966 SC in para 14 – When the Land Acquisition
Official has decided the apportionment he cannot make a
reference.
4 1985 KLT 687 Interest on enhanced compensation – income tax on it to be
spread over years – special provisions of I T Act
18-06-1999 HC modified award – Addl comp and Interest on solatium and addl
compensation disallowed
following Premnath case
23-01-2001 IA 493 dismissed as defective appln Parties names not shown - notice
not given to claimants
25-01-2001 IA 187 of 2001 to restore IA 493 Filed by State
19-09-2001 Premnath case overruled in Sunder 2001 [7] SCC 211.
12-10-2001 I A 187 of 2001 to restore IA 493 Dismissed
25-01-2002 State filed IA 251 of 2002 for refund Of Rs. 12,62,256-90
00-05-2002 A claimant filed counter in IA
251/2002
12-07-2002 I A 251 of 2002 by State allowed Rs.12,62,256-90 to be refunded
CRP 1699 of 2002 filed by A claimant Ag. IA 251/02 order stay granted
16-02-2005 CRP 1699 allowed - Order in I A 251 set CRP 389 of 2004 by State
aside and court directed to consider if dismissed
refund is allowable
IA 251 dismissed by Sub Court
Comparative chart of Land Acquisition Act 1894
And Kerala Land Acquisition Act, i961
Hearing of Objections 5A 5
Declaration 6 6
Reference to court 18 20
Collector’s statement 19 21
Matters to be considered 23 25
Matters to be neglected 24 26
Award by court 26 28
Apportionment to be specified 29 31
Dispute as to apportionment 30 32
Payment 31 33
Appeal 54 60
BEFORE THE HIGH COURT OF KERALA AT ERNAKULAM
RFA 9 7 of 2005
Karimbanch
2.89
A
Mudukkuzhi
Mala
Cholakkat
Item
14
ola
Karimbanch
Item 4
3A
Plaintif
Item 11
1A
Defenda
nt
Chenneeri Paramba