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TMI Blog1990 (12) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... i, respondent No. 1 filed a petition under Article 226 of the Constitution of India in the Bombay High Court for removal of Mrs. Gadre as competent authority on the ground that she was an employee of the corporation and was biased against him. The Bombay High Court held that in the instant case the proprietary rights of the petitioner (Shri Yashwant Gajanan) were affected by laying down of pipes by the Corporation. The petitioner was claiming compensation and such compensation has to be determined judicially in which principle of natural justice must be followed. Principles of natural justice require a feeling in both the parties that justice will be done as between them. The High Court thus took the view that it was not proper to appoint Mrs. Gadre a competent authority as she was an employee of one of the contesting parties. The High Court in these circumstances allowed the writ petition and directed the Union of India to appoint another competent authority. It was further directed that any suitable person may be appointed as a competent authority but he shall not be an employee of the corporation. The High Court further directed that names of certain retired District Judge were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tent Authority under this Act in the same area or different area specified in the notification. 4. According to the above definition any person or authority can be appointed by the Central Government by Notification in the Official Gazette to perform the functions of the competent authority under this Act. It has also been made clear that different persons or authorities may be authorised to perform all or any of the functions of the competent authority under the Act. So far as this definition is concerned there is no restriction on the power of the Central Government to appoint any employee of the Corporation as the competent authority. Section 3 provides for publication of notification for acquisition. Section 4 provides for power to enter upon and survey the land through which pipelines have to be laid for transporting petroleum or any mineral. Section 5 provides for filing any objections by the persons interested in the land and for hearing of such objections by the competent authority. Section 6 provides for a declaration of acquisition of right of user. Section 7 provides for the Central Government or State Government or Corporation to lay pipelines. Section 8 provides for po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the market value of that land on the date of the notification under Sub-section (1) of Section 3. (5) The market value of the land on the said date shall be determined by the competent Authority and if the value so determined by that authority is not acceptable to either of the parties, it shall on application by either of the parties to the District Judge referred to in Sub-section (2), be determined by that District Judge. (6) The decision of the District Judge under Sub-section (5) shall be final. 6. According to the above provision compensation shall be determined by the Competent Authority in the first instance. Under Sub-section (2) of Section 10 if the amount of compensation determined by the Competent Authority under Sub-section (1) is not acceptable to either of the parties, an application by either of the parties may be filed to the District Judge and then the amount of compensation would be determined by the District Judge. Sub-section (3) of Section 10 lays down certain guidelines for determining the compensation taking note of the damage or loss sustained by any person interested in the land. Section 11 provides for deposit and payment of compensation. Section 12 prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led before the District Judge who would then determine the compensation. It was also argued that if we examine the matter with a practical view point no other officer is easily available for such appointment and the Corporation would be unnecessarily put to great inconvenience and subject to heavy expenses if an officer other than its own employee is appointed as competent authority. Learned counsel contended that the provisions in this Act are analogous to those under the Land Acquisition Act, 1894 in which the amount of compensation payable by the Government is, in the first instance, determined by the officer of the Government itself. 8. On the other hand it was submitted by Mr. Dholakia Learned Senior Advocate appearing for respondent No. 1 that the determination of compensation by the competent authority was a quasi judicial act. Mrs. Gadre had filed the writ petition No. 3606 of 1989 in the Bombay High Court against Shri Yashwant Gajanan Joshi and others in which in para No. 9 itself it was admitted as under: The petitioner herein is a quasi judicial authority under the provision of such Act and as stated above the petitioner was notified to act as competent authority by virt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny rights of the parties. Any person interested who does not accept the award may move an application to the Collector for making a reference to the Court Under Section 18 of the Land Acquisition Act, 1894. After the judgment of the Court in reference an appeal could lie to the High Court Under Section 54 of the Land Acquisition Act. It was thus submitted by Mr. Dholakia that there was a remedy of appeal under the Land Acquisition Act but so far as the provisions of the present Act are concerned there is no right of appeal against the determination of compensation by the District Judge. It was also submitted that it was a well established principle that justice should not only be done but seen to be done. In the present case apart from the legal aspect of the matter there was a clear bias so far as Mrs. A.R. Gadre is concerned and she was not a fit person to be appointed as a competent authority in order to determine the compensation payable to the respondent. It was further contended that while determining the question of bias the test is not whether in fact bias has affected the Judgment but the test always is and must be whether a litigant could reasonably apprehend that a bias ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etent authority under the Act. The scheme of the Act shows that a competent authority has to discharge various and diverse duties under the Act. He has to attend survey of land required for pipeline, verification of land revenue records of the surveyed area, drawing up of panchnama for land, crop, plantation, trees or any other agricultural or non agricultural activity carried on in the surveyed land or the pipeline, issue of notification Under Section 3(1) of the Act, receipt of claims/objections for assessment of damages, disputes etc., issue of clearance to concerned oil company and deciding all the disputes arising out of the authorised persons, power to enter notified lands and various other duties. Thus such person becomes a better qualified and experienced person equipped with a proper background to decide the amount of compensation also. We cannot accept the contention of Mr. Dholakia that merely because a person is an employee of the corporation, he would have a bias in deciding the compensation Under Section 10(1) of the Act. 13. It may also be pertinent to note that the Legislature has used the words the amount of which shall be determined by the competent authority in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istrict Judge in favour of the respondent. Mrs. A.R. Gadre in her own name filed a writ petition No. 3606 of 1989 challenging the legality of the award passed by the Additional District Judge. In the said petition she had also prayed for the stay of the further acquisition proceedings. The grievance of the present respondent was that some interim orders of stay were also obtained in the aforesaid writ petition behind the back of the respondent. Even contempt proceedings have also been initiated by the respondent against Mrs. A.R. Gadre and which are still pending before the Bombay High Court. The High Court by the impugned order had removed Mrs. Gadre to function as competent authority and thereafter the Union of India accepted the above position and sought further time to comply with the directions of the High Court. We have already dismissed the Special Leave Petition filed by the Union of India. Thus taking in view the entire facts and circumstances of the case we are inclined to take the view that the respondent was right in contending that Mrs. A.R. Gadre may have bias while determining the amount of compensation as she herself is a litigating party in this very matter in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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