LLB.
3rd Semester; SCHOOL OF LAW UNIVERSITY
OF KASHMIR
Email:[email protected]
LOCAL LAWS-III
Unit-I
The State Land Acquisition Act,1990
Apportionment of Compensation and Payment
[Sections 31-33; 45,47,49]
31. Dispute as to apportionment ––
When the amount of compensation has been settled under section 11, if
any dispute arises as to the apportionment of the same or any part
thereof or as to the persons to whom the same or any part thereof is
payable the Collector may refer such dispute to the decision of the
Court.
Section 32. Payment of compensation or deposit of same in Court. ––
(1) On making an award under section 11, the Collector shall tender
payment of the compensation awarded by him to the persons
interested/entitled thereto, according to the award, and shall pay it to
them unless prevented by some one or more of the contingencies
mentioned in the next sub-section.
(2) If they shall not consent to receive it, or if there be no person
competent to alienate the land, or if there be any dispute as to the title to
receive the compensation or as to the apportionment of it, the Collector
shall deposit the amount of the compensation in the Court, to which a
reference under section 18 would be submitted :
Provided that any person admitted to be interested may receive such
payment under protest as to the sufficiency of the amount :
Provided also that no person who has received the amount otherwise
than under protest shall be entitled to make any application under
section 18 :
Provided also that nothing herein contained shall affect the liability of
any person who may receive the whole or any part of any compensation
awarded under this Act to pay the same to the person lawfully entitled
thereto.
(3) Notwithstanding anything in this section, the Collector may, with the
sanction of the Government, instead of awarding a money compensation
in respect of any land, make any arrangement with a person having a
limited interest in such land, either by the grant of other lands in
exchange, the remission of land revenue on other lands held under the
same title or in such other way as may be equitable having regard to the
interest of the parties concerned.
(4) Nothing in the last foregoing sub section shall be construed to
interfere with or limit the power of the Collector to enter into any
arrangement with any person interested in the land and competent to
contract in respect thereof.
33. Investment of money deposited in respect of lands belonging to
incompetent to alienate persons ––
(1) If any money shall be deposited in Court under sub section (2) of the
last preceding section and it appears that the land in respect whereof the
same was awarded belonged to any person who had no power to
alienate the same, the Court shall––
(a) order the money to be invested in the purchase of other lands to be
held under the like title and conditions of ownership as the land in
respect of which such money shall have been deposited was held ; or
(b) if such purchase cannot be effected forthwith, then in such securities
as the Court shall think fit; and shall direct the payment of the interest
or other proceeds arising from such investment to the person or persons
who would for the time being have been entitled to the possession of the
said land and such moneys shall remain so deposited or invested until
the same be applied ––
(i) in the purchase of such other lands as aforesaid ; or
(ii) if such purchase cannot be effected forthwith then in such other
securities as the Court shall think fit ; or
(iii) in payment to any person or persons becoming absolutely entitled
thereto.
(2) In all cases of moneys deposited to which this section applies the
Court shall order the costs of the following matters, including therein all
reasonable charges and expenses incident thereto, to be paid by the
Collector, namely:—
(a) the costs of such investments as aforesaid ;
(b) the costs of the orders for the payment of the interest or other
proceeds of the securities upon which such moneys are for the time
being invested and for the payment out of Court of the principal of such
moneys and of all proceedings relating thereto, except such as may be
occasioned by litigation between adverse claimants.
Part IV & V of the Act which contains sections 31 to 34 deals with
apportionment & payment of compensation. Under s. 32 the Collector
has to tender payment of the compensation awarded by him to the
persons interested/entitled. Section 33 deal with investment of money
deposited in respect of land belonging to persons incompetent to alienate
the land and in other cases.
There are two provisions ss. 18(1) and 30 which invest the Collector
with power to refer to the Court a dispute as to apportionment of
compensation or as to the persons to whom it is payable. By sub-s. (1) of
s. 18 the Collector is enjoined to refer a dispute as to apportionment, or
as to title to receive compensation, on the application within the time
prescribed by sub-s. (2) of that section of a person interested who has
not accepted the award. Section 32 authorises the Collector to refer to
the Court after compensation is settled under s. 11, any dispute arising as
to apportionment of the same or any part thereof or as to the persons to
whom the same or any part thereof is payable. A person shown in that
part of the award which relates to apportionment of compensation, who
is present either personally or through a representative, must, if he does
not accept the award, apply to the Collector within the time prescribed
under s. 18(2) to refer the matter to the Court. But a person who has not
appeared in the acquisition proceeding before the Collector may, if he is
not served with notice of the filing, raise a dispute as to apportionment
or as to the persons to whom it is payable, and apply to the Court for a
reference under s. 31, for determination of his right to compensation
which may have existed before the award, or which may have developed
upon him since the award. Whereas under s. 18 an application made to
the Collector must be made within the period prescribed by sub-s.(2) cl.
(b), there is no such period prescribed under s. 31. Again under s. 18 the
Collector is bound to make a reference on a petition filed by a person
interested. The Collector is under s. 31 not enjoined to make a reference:
he may refer the person raising a dispute as to apportionment, or as to
the person to whom compensation is payable, to agitate the dispute in a
suit and pay the compensation in the manner declared by his award.
Payment of compensation therefore under s. 32 to the person declared by
the award to be entitled thereto discharges the State of its liability to pay
compensation (subject to any modification by the Court), leaving it open
to the claimant to agitate his right in a reference under s. 31 or by a
separate suit.
When the Collector decides to refer the dispute to a Court under Section
32 of the Act and passes a joint award in favour of all the persons
interested in the land regarding the compensation amount and deposits
the compensation money in Court under Section 32(2) of the Act, then,
it is a valid award under Section 11 of the Act and the award is
complete. The Collector also becomes functus officio with the deposit of
the compensation money in Court under Section 32(2) of the Act and it
is no longer open to him to modify the award on the basis of the decision
of the Court or complete the award if it is considered incomplete.
The statute, gives the Collector the option either to proceed to determine
the persons entitled and to apportion the amount himself, and to make an
award of such apportionment, or, to refer the dispute to the court. If the
Collector does not apportion the compensation amount himself, he must
under Section 32 refer to the Court the dispute as to the apportionment
of the same or any part thereof and the question as to whom the same or
any part thereof is payable, depositing the compensation amount or part
thereof as the case may be under Section 33(2) of the Act. However, the
Collector is not bound to make such a reference.
If a person has not appeared in the acquisition proceeding before the
Collector may, if he is not served with notice of the filing (the award),
raise a dispute as to apportionment or as to the persons to whom it is
payable, and apply to the Court for a reference under Section 30, for
determination of his right to compensation which may have existed
before the award, or which may have devolved upon him since the
award.
The person lawfully entitled to the whole or any part of the
compensation, has also the right to institute a suit against the person who
receives the whole or any part of the same for realisation of it. This is
provided for by the third proviso to Section 33(2) of the Act.
Sec. 33, 3rd proviso has safeguarded the right of the real owner of the
property to receive the compensation money when such a person has
been directed to apply before the court in which a reference as to
apportionment is pending. By the third proviso to sub-s. (2) of s.32,
liability of any person, who may receive the whole or any part of the
compensation awarded under the Act, to pay the same to the person
lawfully entitled thereto.
In Grant's case [Grant v. St. of Bihar], (1965) 3 SCR 576 : (AIR 1966
SC 237) the Supreme Court said:
“The scheme of the Land Acquisition Act is that all disputes about the
quantum of compensation must be decided by resort to the procedure
prescribed by the Act; it is also intended that disputes about the rights of
owners to compensation being ancillary to the principal dispute should
be decided by the Court to which power is entrusted. Jurisdiction of the
Court in this behalf is not restricted to cases of apportionment, but
extends to adjudication of disputes as to the persons who are entitled to
receive compensation.…… The Collector has no power to finally
adjudicate upon the title to compensation, that dispute has to be decided
either in a reference under Section 18 or under Section 30 or in a
separate suit.”
The statute has taken care to see that no person lawfully entitled to
compensation is deprived of the same, and that he has a right to have his
claim decided by the court on a reference under Sec. 18 or Sec. 31 of the
Act, or in a suit instituted by him in that behalf.
It is a basic principle of justice that if there are several persons interested
in the same property and if they agree amongst themselves as to the
manner of apportionment of the compensation, then the agreement shall
be conclusive evidence of the correctness of the apportionment of award.
But in the case of a dispute with respect to the apportionment of award,
the Collector shall refer the matter to a Civil Court.
In State of Madras v. Subramania Iyer, AIR 1962 Mad. 313., Madras
High Court observed that, “it is obvious that when the Government
exercises its power of eminent domain and acquires property, public
funds have to be utilized for the payment of compensation to the true
owner, and not merely to any claimant who cares to appear on the
scene”. The Collector can even make a reference without an application
from the party. If a property has been jointly inherited by brothers and
sisters, then brothers together had no right to sell the entire property.
It is the duty of the Collector to ensure the payment of the award in
whose favour the award has been made. If the parties interested in
acquisition of land do not consent to receive the amount or when there is
a dispute as to the title or as to the apportionment of the compensation
money or when the compensation money is payable to a person who is
not competent to alienate the land, the Collector shall deposit the amount
of compensation in the court to which a reference is made by him.
Section 33 gives power to the Court in respect to persons incompetent to
alienate , on an application by a person interested or claiming an interest
in such money, to pass an order to invest the amount so deposited in
such government or other approved securities [who are in possession of
land] and may direct the interest or other proceeds of any such
investment to be accumulated and paid in such manner as it may
consider proper so that the parties interested therein may have the
benefit therefrom.
For the purpose of this provision [section 33], ‘incompetency to alienate’
implies ‘personal incapacity, such a lunacy, idiocy, and minority’. As to
the question whether a party has the power to alienate the land, and
consequently entitled to receive payment, the Collector is not competent
to give a decision. In such cases where he has a bonafide doubt, it is his
duty not to take upon himself the task of determining that question
himself but to send the matter to the court that would have jurisdiction to
hear the reference.
Miscellaneous (Part VIII) [Sections 45,47,49]
Section 45. Magistrate to enforce surrender.––
If the Collector is opposed or impeded in taking possession under this
Act of any land, he shall, if 3[an Executive Magistrate,] enforce the
surrender of the land to himself, and, if not 3[an Executive Magistrate]
he shag apply to 3[an Executive Magistrate] and such Magistrate shall
enforce the surrender of the land to the Collector. [ex. Maj. Like
divisional commissioner]
47. Acquisition of part of houses or building. ––
(1) The provisions of this Act shall not be put in force for the purpose of
acquiring a part only of any house, manufactory or other building, if the
owner desire that the whole of such house, manufactory or building shall
be so acquired :
Provided that the owner may at any time before the Collector has made
his award under section 11, by notice in writing, withdraw or modify his
expressed desire that the whole of such house, manufactory or building
shall be so acquired :
Provided also that, if any question shall arise as to whether any land
proposed to be taken under this Act does or does not form part of a
house, manufactory or building within the meaning of this section, the
Collector shall refer the determination of such question to the Court and
shall not take possession of such land until after the question has been
determined. In deciding on such a reference, the Court shall have regard
to the question whether the land proposed to be taken is reasonably
required for the full and unimpaired use of the house, manufactory or
building.
(2) If, in the case of any claim under section 23, sub section (1) thirdly,
by a person interested on account of the severing of the land to be
acquired from his other land, the Government is of opinion that the
claim is unreasonable or excessive, it may, at any time before the
Collector has made his award, order the acquisition of the whole of the
land of which the land first sought to be acquired forms a part.
(3) In the case last hereinbefore provided for, no fresh declaration or
other proceedings under sections 6 to 10, both inclusive, shall be
necessary; but the Collector shall without delay furnish a copy of the
order of the Government to the person interested and shall thereafter
proceed to make his award under section 11.
49. Exemption from stamp duty and fees.––
No award or agreement made under this Act shall be chargeable with
stamp duty and no person claiming under any such award or agreement
shall be liable to pay any fee for a copy of the same.
