TMI Blog2010 (12) TMI 1302X X X X Extracts X X X X X X X X Extracts X X X X ..... t of compensation to the contesting respondents with 15 per cent solatium and 6 per cent interest. HELD THAT:- We hold that the DDA falls within the definition of the expressions local authority [Section 3(aa)] and person interested and was entitled to participate in the proceedings held before the Land Acquisition Collector; the failure of the Land Acquisition Collector to issue notice to the DDA and give an opportunity to it to adduce evidence for the purpose of determining the amount of compensation payable to the land owners was fatal to the award passed by him; the DDA was entitled to notice and opportunity to adduce evidence before the Reference Court could enhance market value of the acquired land entitling the respondents to claim higher compensation and, as no notice or opportunity was given to the DDA by the Reference Court, the judgments rendered by it are liable to be treated as nullity; the Division Bench of the HC also committed serious error by further enhancing the amount of compensation payable to the contesting respondents without requiring them to implead the DDA as party respondent so as to enable it to contest their prayer for grant of higher co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and was fixed at ₹ 2,000/- per sq. yd. and direction was issued for payment of compensation to the contesting respondents with 15 per cent solatium and 6 per cent interest. 2. Since the DDA was neither made a party to the proceedings held by the Land Acquisition Collector or the Reference Court nor it was given an opportunity to adduce evidence on the issue of determination of compensation and the High Court substantially increased market value of the acquired land without issuing notice to it, an application has been filed on behalf of the DDA for permission to file the special leave petitions. Another application has been filed for condonation of 372 days delay in filing the special leave petitions. 3. The case of the DDA is that its functionaries came to know about the impugned judgment only in June, 1999 when letter dated 3.6.1999 sent by the Land Acquisition Collector for release of ₹ 14,15,82,253/- was received by the Member (Finance). According to the DDA, a clarification was sought from the Land Acquisition Collector on the issue of its liability to pay more than ₹ 14 crores by pointing out that a portion of the acquired land was occupied by the Jal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Jagdev Singh, son of Hari Chand claiming himself to be respondent No.2 has filed counter affidavit dated 4.7.2002 and opposed the prayer of the DDA for condonation of delay by asserting that no explanation has been given for 150 days' delay after the concerned authorities came to know about the impugned judgment. 7. We have heard learned counsel for the parties on the DDA's locus standi to challenge the judgment of the High Court. It is not in dispute that proposal for acquisition of the land was initiated by the DDA vide D.O. dated 18.1.1973. It is also not in dispute that neither the Land Acquisition Collector nor the Reference Court gave opportunity to the DDA to adduce evidence for the purpose of determining the amount of compensation. The High Court did not issue notice to the DDA apparently because it was not a party to the proceedings held by the Land Acquisition Collector and the Reference Court. Notwithstanding this, the DDA has been asked to release ₹ 14 crores and odd for payment of compensation to the respondents. Therefore, there is ample justification for entertaining its prayer for grant of permission to file the special leave petitions. 8. We a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto two Blocks i.e. `B' and `C' and fixing market value of the two blocks at ₹ 129/- per sq. yd. and ₹ 108/- per sq. yd. respectively. 13. The contesting respondents challenged the judgments of the Reference Court in RFA Nos.65 of 1981 and 266 of 1984 and prayed for grant of compensation at the rate of ₹ 575/- per sq. yd. After 17 years of filing the appeal, Bhola Nath and another sought leave of the court to amend the memo of appeal so as to enable them to claim compensation at the rate of ₹ 3000/- per sq. yd. Similar prayer was made on behalf of Smt. Narbada Devi and others by filing separate application sometime in 1996. The Land Acquisition Collector opposed the prayer for amendment but the High Court allowed the applications. 14. Thereafter, the Division Bench of the High Court disposed of both the appeals and held that the contesting respondents are entitled to enhanced compensation at the rate of ₹ 2000/- per square yard with 15% solatium and 6% interest from the date of dispossession. 15. Before proceeding further, we consider it proper to mention that the Union of India and the Land Acquisition Collector had unsuccessfully cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of compensation to the contesting respondents at the rate of ₹ 2,000/- per sq. yd. without giving opportunity of hearing to the DDA and ignoring that it will have to provide funds for payment of compensation to the land owners. In support of this argument, Shri Amarendra Sharan relied upon the judgments of this Court in Neyvely Lignite Corporation Ltd. v. Special Tahsildar (Land Acquisition) Neyvely (1995) 1 SCC 221 and U.P. Awas Eveam Vikas Parishad v. Gyan Devi (1995 (2) SCC 326. Learned senior counsel then referred to the master plan of Delhi for 1961 and 2001 and the map produced by him during the course of hearing to show that the acquired land forms part of the Green Belt and argued that the High Court committed serious error by ordering payment of enhanced compensation ignoring the mandate of Section 24 of the Act, which debars the Court from taking into consideration illegal use of the land while determining the amount of compensation. Learned senior counsel emphasized that the Land Acquisition Collector and the Reference Court had concurrently held that the acquired land does not have commercial value and argued that the High Court committed serious error by incre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant-DDA should be denied relief because it has made contradictory statements and has not disclosed correct and full facts on the issues of initiation of acquisition proceedings and transfer of possession of the acquired land does not merit acceptance. A careful reading of the statements made at pages `J' and `L' of the List of Dates and contents of letters dated 30.6.1999 and 8.7.1999 written by Director (LM) (HQ), DDA does not support the assertion of the learned counsel that the appellant has made an attempt to mislead the Court. The minor inconsistencies here and there appear to be due to lack of coordination between various functionaries of the DDA, a phenomena not unusual in the functioning of Government departments and the agencies/instrumentalities of the State. However, such errors, omissions and inconsistencies do not justify a conclusion that the DDA is guilty of contumacious conduct. 20. The apprehension expressed by the learned counsel that acceptance of appellant's prayer for setting aside the impugned judgment may lead to passing of two inconsistent decrees and his argument that dismissal of Special Leave Petition (Civil) No.1608/1999 - Union of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stand substituted in place of the order under challenge. All that it means is that the Court was not inclined to exercise its discretion so as to allow the appeal being filed. (iv) If the order refusing leave to appeal is a speaking order, i.e., gives reasons for refusing the grant of leave, then the order has two implications. Firstly, the statement of law contained in the order is a declaration of law by the Supreme Court within the meaning of Article 141 of the Constitution. Secondly, other than the declaration of law, whatever is stated in the order are the findings recorded by the Supreme Court which would bind the parties thereto and also the court, tribunal or authority in any proceedings subsequent thereto by way of judicial discipline, the Supreme Court being the Apex Court of the country. But, this does not amount to saying that the order of the court, tribunal or authority below has stood merged in the order of the Supreme Court rejecting the special leave petition or that the order of the Supreme Court is the only order binding as res judicata in subsequent proceedings between the parties. 21. In our view, proposition Nos. (iii) and (iv) extracted herein above ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is often defined by the Legislature by using the word `means' or the word `includes'. Sometimes the words `means and includes' are used. The use of the word `means' indicates that definition is a hard-and-fast definition, and no other meaning can be assigned to the expression than is put down in definition . (See : Gough v. Gough; Punjab Land Development and Reclamation Corpn. Ltd. v. Presiding Officer, Labour Court.) The word `includes' when used, enlarges the meaning of the expression defined so as to comprehend not only such things as they signify according to their natural import but also those things which the clause declares that they shall include. The words means and includes , on the other hand, indicate an exhaustive explanation of the meaning which, for the purposes of the Act, must invariably be attached to these words or expressions . (See: Dilworth v. Commissioner of Stamps (Lord Watson); Mahalakshmi Oil Mills v. State of A.P. The use of the words means and includes in Rule 2(b) would, therefore, suggest that the definition of `college' is intended to be exhaustive and not extensive and would cover only the educational institutions falling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... true that generally when the word include is used in a definition clause, it is used as a word of enlargement, that is to make the definition extensive and not restrictive. But the word includes is also used to connote a specific meaning, that is, as means and includes or comprises or consists of . In Hamdard (Wakf) Laboratories v. Dy. Labour Commissioner (2007) 5 SCC 281, it was held as under: When an interpretation clause uses the word includes , it is prima facie extensive. When it uses the word means and includes , it will afford an exhaustive explanation to the meaning which for the purposes of the Act must invariably be attached to the word or expression. 24. Undisputedly, the DDA is an authority constituted under Section 3 of the 1957 Act for promoting and securing development of Delhi according to plan and for this purpose it has the power to acquire, hold, manage and dispose of land and other property, to carry out building, engineering, mining and other operations, to execute works in connection with supply of water and electricity, disposal of sewage, etc. Therefore, it is clearly covered by the definition of the expression local authority . 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and observed: Thus, the preponderance of judicial opinion seems to favour the view that the definition of person interested must be liberally construed so as to include a body, local authority, or a company for whose benefit the land is acquired and who is bound under an agreement to pay the compensation. In our opinion, this view accords with the principles of equity, justice and good conscience. How can it be said that a person for whose benefit the land is acquired and who is to pay the compensation is not a person interested even though its stake may be extremely vital? For instance, the land acquisition proceedings may be held to be invalid and thus a person concerned is completely deprived of the benefit which is proposed to be given to him. Similarly, if such a person is not heard by the Collector or a court, he may have to pay a very heavy compensation which, in case he is allowed to appear before a court, he could have satisfied it that the compensation was far too heavy having regard to the nature and extent of the land. (emphasis supplied) In Union of India v. District Judge (1994) 4 SCC 737, this Court held that the Union of India for whose benefit the land wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efend the award of the Collector. If it is not made a party, it is entitled to seek leave of the court and file the appeal against the enhanced award and decree of the Civil Court under Section 26 or of the judgment and decree under Section 54 or is entitled to file writ petition under Article 226 and assail its legality or correctness. 13. The reasons are not far to seek. It is notorious that though the stakes involved are heavy, the Government plead or the instructing officer do not generally adduce, much less proper and relevant, evidence to rebut the claims for higher compensation. Even the cross-examination will be formal, halting and ineffective. Generally, if not invariably the governmental agencies involved in the process take their own time and many a time in collusion, file the appeals after abnormal or inordinate delay. They remain insensitive even if the States involved run into several crores of public money. The courts insist upon proper explanation of every day's delay. In this attitudinal situation it would be difficult to meet strict standards to fill the unbridgeable gaps of the delay in filing the appeals and generally entails dismissal of the appeals at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to participate in the proceedings held for determination of compensation, referred to Section 50(2) of the Act and observed: The said right can be effectively exercised by the local authority only if it has information of the proceedings which are pending before the Collector as well as the reference court. In other words the right conferred under Section 50(2) of the L.A. Act carries with it the right to be given adequate notice by the Collector as well as the reference court before whom the acquisition proceedings are pending of the date on which the matter of determination of the amount of compensation will be taken up. Service of such a notice, being necessary for effectuating the right conferred on the local authority under Section 50(2) of the L.A. Act, can, therefore, be regarded as an integral part of the said right and the failure to give such a notice would result in denial of the said right unless it can be shown that the local authority had knowledge about the pendency of the acquisition proceedings before the Collector or the reference court and has not suffered any prejudice on account of failure to give such notice. Thus, on an interpretation of the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as modified by Land Acquisition (Mysore Extension Amendment) Act, 1961 providing for service of notice on the person or local authority for whom the acquisition is made. On a construction of Section 50(2) we have found that service of such a notice is implicit in the right conferred under Section 50(2) of the L.A. Act. Since the failure to give a notice would result in denial of the right conferred on the local authority under Section 50(2) it would be open to the local authority to invoke the jurisdiction of the High Court under Article 226 of the Constitution to challenge the award made by the Collector as was done in Neelagangabai case. In a case where notice has been served on the local authority and it has appeared before the Collector the local authority may feel aggrieved on account of it being denied opportunity to adduce evidence or the evidence adduced by it having not been considered by the Collector while making the award or the award being vitiated by mala fides. Since the amount of the compensation is to be paid by the local authority and it has an interest in the determination of the said amount, which has been given recognition in Section 50(2) of the L.A. Act, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence before the reference court. Having regard to the aforesaid circumstances, we are of the opinion that the presence of the local authority is necessary for the decision of the question involved in the proceedings before the reference court and it is a proper party in the proceedings. The local authority is, therefore, entitled to be impleaded as a party in the proceedings before the reference court. In case the amount of compensation has been enhanced by the court and no appeal is filed by the Government the local authority if adversely affected by such enhancement may file an appeal with the leave of the court. This right of the local authority does not depend on its being impleaded as a party in the proceedings before the reference court. Even if the local authority is not impleaded as a party before the reference court it can file an appeal against the award of the reference court in the High Court after obtaining leave if it is prejudicially affected by the award. In case the Government files an appeal against the enhancement of the award the local authority is entitled to support the said appeal and get itself impleaded as a party. When the person having an interest in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability of KWA incurred by it after its coming into existence and, therefore, to the extent of enhancement, the authority was certainly entitled to notice and right to participate in the proceedings before the reference court leading to enhancement of compensation. (emphasis supplied) The view expressed by the Constitution Bench in Gyan Devi's case was reiterated in Kanak v. U.P. Avas Evam Vikas Parishad (2003) 7 SCC 693 and Regional Medical Research Centre, Tribals v. Gokaran (2004) 13 SCC 125. 27. In view of the above discussion, we hold that : (i) the DDA falls within the definition of the expressions local authority [Section 3(aa)] and person interested [Section 3(b)] of the Act; (ii) the DDA was entitled to participate in the proceedings held before the Land Acquisition Collector; (iii) the failure of the Land Acquisition Collector to issue notice to the DDA and give an opportunity to it to adduce evidence for the purpose of determining the amount of compensation payable to the land owners was fatal to the award passed by him; (iv) the DDA was entitled to notice and opportunity to adduce evidence before the Reference Court could enhance market ..... X X X X Extracts X X X X X X X X Extracts X X X X
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