TMI Blog2009 (11) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of compensation. Therefore, the CIDCO cannot claim right of audience on the ground that it is a person interested . Only possible provision under which the CIDCO could have claimed is Section 50 of the said Act of 1894 which reads thus Acquisition of land at cost of a local authority or Company- (1)Where the provisions of this Act are put in force for the purpose of acquiring land at the cost of any fund controlled or managed by a local authority or of any Company, the charges of any incidental to such acquisition shall be defrayed from or by such fund or Company. In any proceeding held before a Collector or Court in such cases the local authority or Company concerned may appear and adduce evidence for the purpose of determining the amount of compensation - Provided that no such local authority or Company shall be entitled to demand a reference under section 18. In the present case, admittedly, land is not being acquired at the cost of any fund controlled or managed by the CIDCO. As held earlier, the acquisition cannot be said to be on behalf of CIDCO or for benefit of CIDCO in as much as while developing the site of New Bombay, the CIDCO is acting as an agent of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of an agreement made by the said respondent with the government of Maharashtra ,compensation will be payable by the said respondent. Reliance was placed on sub-section 2 of section 50 of the said Act of 1894 and it was contended that the CIDCO was a necessary party to the land acquisition reference under Section 18 of the said Act of 1894. By the judgment and order th dated 27 October, 2004 the said application was rejected. 4] On 7 April, 2008, the State of Maharashtra represented by the District Government Pleader moved an application exhibit 113 contending that the CIDCO being acquiring body was a necessary party to the said reference under Section 18 of the said Act of 1894. It was contended that the State has acquired the land subject matter of reference and has transferred the land to CIDCO. Therefore, a prayer was made for impleading the CIDCO as the second opponent to the said reference. The petitioner opposed the same on various grounds contending that the CIDCO was not the acquiring body. It was contended that CIDCO was neither a necessary nor a proper party. By the impugned order, the said application made by the State of Maharashtra was allowed and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o in Section 50 is different and the same words used will have to be construed differently. He has relied upon decisions of the Apex Court which are dealt with in the later part of this judgment. He submitted that the CIDCO, in any event, is a person interested, and therefore, is entitled to a notice of reference under section 18 of the said Act of 1894 in view of clause b of Section 20 of said Act of 1984. He submitted that the words local authority and company in the said Act of 1894 would include all bodies on whose behalf the land is acquired. He submitted that all such bodies are necessary and proper parties to a reference under section 18. He submitted that no interference is called for with the impugned order. 7] The learned AGP appearing for the State supported the impugned judgment and order and submitted that as the CIDCO is required to bear the burden of payment of the compensation as well as the enhanced compensation, as rightly held by the trial court , the CIDCO was a necessary and proper party to the reference and therefore no interference is called for. The learned counsel for the petitioner pointed out from the Government th Resolution dated 12 February, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is Act, or in any law for the time being in force, where any corporation or company is declared to be the New Town Development Authority under sub-section (3A) of section 113, the State Government shall acquire either by agreement or under the Land Acquisition Act, 1894 (and such acquisition may have been commenced before the coming into force of this section) any land within the area designated under this Act, as the site of the new town, any land adjacent to that area which is required for the purposes connected with the development of the new town, and any land whether adjacent to that area or not, which is required for provisions of services or amenities for the purposes of the new town; and vest such land in such Authority for the purposes of this Chapter] In the light of the relevant provisions of the said Act of 1966 , the th factual aspects of the case will have to be considered. On 20 March, 1971, a notification was issued by the State Government which was published in the gazette by which the area mentioned in the schedule was designated as the site for the proposed new town known as New Bombay . The said notification was issued in exercise of powers under sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIDCO has relied upon the decision of the State Government which is reflected from the circular dated 12 February, 2008 which is placed on record by the learned counsel for the CIDCO. In the preamble, it refers to the th aforesaid notification dated 20 March, 1971. It also notes that the CIDCO has been appointed by the State Government as the New Town Development Authority for New Bombay. The said government resolution notes that the CIDCO was newly formed in the year 1971 and at the time funds were not available with the CIDCO. It is further stated that as the funds were not available with CIDCO, it was decided that the State Government will acquire privately owned lands in the site of New Bombay and will thereafter transfer the same to the CIDCO. The said government resolution further notes that the State Government has acquired various lands under the provisions of the said Act of 1894 and has transferred the same to the CIDCO. The said lands are being developed and sold through the CIDCO .It is further noted that considering the present financial condition of the State Government , hereafter it will not be possible for the State Government to make available funds for payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vernment decided to get the work of development of the site of the city of New Bombay done through CIDCO as an agent of the State Government. b) The acquiring body for the acquisition of land for New Bombay project was the Town Development Department of the State Government and with effect th from 20 March, 2006 certain Officers of the CIDCO have been empowered to submit the proposals for the acquisition of land on behalf of the State Government. c) Till 1st April, 2008 not only that the CIDCO was not the acquiring body, but, even the compensation on account of acquisition of lands for the said project was paid by the State Government and not by the CIDCO. d) The effect of the decision dated 12 February, 2008 is st that from 1 April, 2008 the CIDCO will have to pay the compensation amount on account of Government . However , the Town Development department of the State Government continues to be the acquiring body. e) As far as the present acquisition is concerned, the notification under section 6 of the said Act 1894 makes it clear that the land was acquired under Section 113A at the instance of the State Government and at the expenses of State Government. 12] W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht to be given adequate notice by the Collector as well as the reference court before whom acquisition proceedings are pending on the date on which the matter of determination of compensation will be taken up. (emphasis added) There are subsequent decisions of the Apex Court which consider the said decision in the case of U.P. Awas (Supra). In the case of Agra Development Authority Vs. Special Land Acquisition Officer and others [(2001)2 SCC 646] the Apex Court considered the same question. In paragraph 7, the Apex Court held thus:- . .......What is required by Section 50 of the Land Acquisition Act is that the body for whom the property is being acquired is given an opportunity to appear and ad-duce evidence for the purposes of determining the amount of compensation. Nothing could be shown to us that this had been done. On this point the matter requires to be sent back to the Special Land Acquisition Officer for refixing compensation payable. (emphasis added) 13] Learned counsel for the second respondent CIDCO invited my attention to the decision of the Apex Court in the case of NTPC Ltd. Vs. State of Bihar and others [(2004)12 SCC 96]. In paragraph 6 of the judgment, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present st case. At least, till 1 April, 2008, the compensation amount in respect of the land acquired for the project of New Bombay was being paid by the State Government and now the decision of the State Government says that the CIDCO will pay the compensation amount on account of the State Government . Even assuming that the Government decision of April, 2008 brings about certain change , the said decision is of no relevance here as the acquisition has been initiated and an award has been made much prior to the said decision. Even assuming that the acquisition is governed by the government resolution dated 12th April 2008, the enhanced compensation will be payable by the CIDCO on account of the State Government. In the circumstances, the CIDCO is neither the acquiring body nor the authority which is liable to pay compensation. 14A] Now an argument made by the learned counsel for the third respondent that the CIDCO is a person interested will have to be considered. The said argument was advanced as under the clause b of section 20 of the said Act of 1894 a person interested is required to be issued a notice of the reference. Section 20 of the said Act of 1894 read thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any fund controlled or managed by a local authority or of any Company, the charges of any incidental to such acquisition shall be defrayed from or by such fund or Company. (2)In any proceeding held before a Collector or Court in such cases the local authority or Company concerned may appear and adduce evidence for the purpose of determining the amount of compensation: Provided that no such local authority or Company shall be entitled to demand a reference under section 18. In the present case, admittedly, land is not being acquired at the cost of any fund controlled or managed by the CIDCO. As held earlier, the acquisition cannot be said to be on behalf of CIDCO or for benefit of CIDCO in as much as while developing the site of New Bombay, the CIDCO is acting as an agent of the State Government. Therefore, sub-section (2) of Section 50 will have no application in the present case. 15A] Keeping in mind the aforesaid legal and factual position , now a reference will have to be made to the impugned order. The only ground on which the CIDCO is ordered to be impleaded is that the CIDCO is a local authority, and therefore, it is a proper party to the reference. The local a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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