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KERALA STATE HOUSING BOARD AND ORS. ETC. versus M/S. RAMAPRIYA HOTELS (P) LTD. AND ORS.

Citation: [1994] SUPP. 2 S.C.R. 338 · Decided: 28-07-1994 · Supreme Court of India · Bench: K. RAMASWAMY · Disposal: Dismissed

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Judgment (excerpt)

A 
KERALA STATE HOUSING BOARD AND ORS. ETC. 
B 
c 
D 
E 
F 
v. 
M/S. RAMAPRIYA HOTELS (P) LTD. AND ORS. 
JULY 28, 1994 
(K. RAMASWAMY AND N. VENKATACHALA, JJ.] 
Kera/a Land Acquisition Act, 1961: Sections 3 (1), 6, 9, 16, 17 and 
18. 
Section 16(1)--0bject of-Compensation for land acquisitiott-Agree-
ment for-More than one person interested in compensation-Entering into 
agreement of all persons jointly with Collecto,._parties can waive the man-
datory provision of-Expression ''All persons interested agree''-Means not 
only in plural but also singular. 
Land Acquisitiott-Agreement for compensation between Owner and 
Collector-Land acquired mortgaged with Bank-Mortgagee Bank not a party 
to agreemen~ortgagee bank held a person interested in compensation but 
his non joinder rendered neither the agreement void nor the jurisdiction of 
Collector to make award void. 
Section 16( 1)-l'rovis<>-lnterpretation of-Agreement for compensa-
tiolt-Notification under Section 3( Ir Requirement of publication of decla-
ration-Prescribed period of four years-Reckoning of-Held expression 'such 
date' refers to the date of agreement and not date of notification under 
section 3(1). 
Interpretation of Statutes : 
Statute-Words of analogous meaning-Interpretation of Statute-
Constrnction of-Should be according to intent of Legislature. 
G 
Statute--l'rovisiott-Two views possible-Constrnction in favour of sus-
taining constitutionality should be preferred. 
Waiver-Mandatory procedure--l'arty can waive it. 
The respondent-Company entered into an agreement with the Collec-
H tor, under section 16 of the Kerala Land Acquisition Act, 1961, whereunder 
338 
KERLA ST AlE HSG. BOARD v. RAMAPRIYA HOlELS (P) LTD. 
339 
it agreed to accept compensation @ Rs. 1100 per each cent of land to be A 
acquired. Pursuant thereto a notification under section 3(1) of the Act was 
published acquiring the land for the housing scheme envisaged by the 
appellant but the declaration under section 6 was not published within the 
prescribed period from the date of publication of notification under section 
3(1). A fresh notification under section 3(1) issued on June 12, 1979 was 
upheld by the High Court. A declaration under section 6 was published on 
January 18, 1981 and after issue of notice under section 9(3) the respondent 
B 
was awarded compensation @ Rs. 1100 per each cent, of the land acquired. 
The respondent-Company's application for reference under section 
20 was rejected against which a writ petition was filed in the High Court C 
which held that (i) no award under section 16 could have been made 
because the bank to which the property under acquisition was mortgaged 
was not a party to the Contract; and (ii) by operation of the proviso to 
sub-section(l) of section 16 since four years had elapsed from the date of 
the agreement the award based on the agreement became void. Consequentยท 
ly the High Court allowed the writ petition and directed the Collector to D 
make reference to the Civil Court under section 20 without reference to the 
agreement which became void. 
The Housing Board and the state preferred appeals before this 
Court contending that (i) it was open to the respondents to waive the E 
requirement of entering into a contract by all parties; (ii) in the cir-
cumstances of the case the respondents were estopped from contending 
that under section 16 no award can be made in the absence of the 
mortgagee bank as a party to the agreement; and (iii) the expression "such 
date" referred to in proviso to section 16(1) is referable to the date of the 
notification under section 3(1); the finding of the High Court that the 
F 
award became void after the expiry of four years from the date of the 
agreement is clearly erroneous. 
Dismissing the appeals, this Court 
HELD : 1. The finding of the High Court that no award could have 
been made in respect of the respondent-Company is clearly erroneous and 
unsustainable and is accordingly set aside. (346-D] 
G 
2. The object of section 16(1) of the Kerala and Acquisition Act is to 
determine market value expeditiously and award compensation in terms of H 
340 
SUPREME COURT REPORTS [1994] SUPP. 2 S.C.R. 
A agreement to avoid needless delay .. Therefore, in the light of the purpose 
and object of section 16 "all person" must be interpreted to mean not only 
in a plural but also singular which would include any one, if more than one 
person are interested in the compensation, to mutually enter into an agr

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