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31B of the Constitution
Statute
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A similar principle applies to the award of interest which may sometimes be notional when feudal interests are puffed out
Ratio of the decision
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We cannot import the notion of prevailing bank rates in such situations
Ratio of the decision
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The dynamic rule of law, with a social mission, makes a meaningful distinction between rights steeped in the old system and compensation for deprivation of those interests, on the one hand, and the ordinary commercial transactions or regulation of rights untinged by social transformation urges, on the other
Ratio of the decision
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This gives rationality to the seeming disparity
Ratio of the decision
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Holmes once commented: 'It is revolting to have no better reason for a rule of law than that
Ratio of the decision
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so it was laid down in the time of Henry IV
Ratio of the decision
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Here there is good reason to depart from the old rule of full compensation and it perhaps legitimates the reduced rate of recompense
Ratio of the decision
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Moreover, the High Court has rightly pointed out that the validity of s. 37(3) of the Act which fixes a small rate of interest on the compensation amount has been upheld by the Supreme Court in Gajapati Narayan's Case
Ratio of the decision
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Point No. 8 has only to be stated to be rejected
Ratio of the decision
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The contention is that on the date of vesting, which was well over two decades ago, the purchasing power of the rupee was much higher than its present value
Ratio of the decision
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It is more or less a world phenomenon that the erosi on in value of the unit of currency has been taking place, but this invisible devaluation owing to the inflationary spiral does not affect the quantum of monetary compensation prescribed by statute
Ratio of the decision
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For the purposes of the law, the rupee of long ago is the same as the rupee of today, although for the purposes of the market place and cost-of living, the housewife's answer may be different
Ratio of the decision
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Law is sometimes blind
Ratio of the decision
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The next point in the reverse order is equally unsubstantial and may be disposed of right away
Ratio of the decision
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The appellant challenges the slab system of compensation provided in the Act which awards smaller multiples for estates yielding larger incomes, on the score of violation of the fundamental rights under the Constitution
Ratio of the decision
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The short answer is that Art
Ratio of the decision
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31(3) read with Art
Ratio of the decision
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31(2) bars any challenge to the amount of compensation on acquisition by the State subject to compliance with the prescriptions in the said sub-Articles, on the ground that the amount so fixed or determined is not adequate
Ratio of the decision
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Presidential assent has been accorded to this State Act and so the ban operates
Ratio of the decision
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Moreover, Art
Ratio of the decision
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31A repels the applicability of Arts
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14, 19 and 31 to the acquisition by the State of any estate or of any rights therein etc
Ratio of the decision
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This provision directly demolishes the contention of the appellant
Ratio of the decision
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Point No. 6 in the list of contentions earlier reproduced is also bereft of force and we may make short shrift of it
Ratio of the decision
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The argument is that for certain reasons the appellant could not derive and actual income from the forests taken over by the State from him and therefore there was no income-tax payable on any agricultural income from these forests
Argument
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The contention is that therefore in arriving at the next income the deduction of income-tax is not permissible
Argument
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Here again, the flaw in the submission consists in mis-reading s. 27 of the Act which expressly states that the net income from an estate shall be computed by deducting from the gross assets of such estate any sum 'which was payable by the intermediary as income-tax in respect of any income derived from such estate for the previous agricultural year
Ratio of the decision
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No income, therefore no income-tax, and therefore no deduction, is the syllogism of Shri Purohit
Ratio of the decision
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He forgets that in the case of forests it is the assumed income and not the Actual income that forms the basis of calculation of compensation
Ratio of the decision
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Indeed, if the Actual income were to be the foundation for computation of compensation on the premise that not actual income has accrued, the compensation might be zero
Ratio of the decision
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On the other hand, statutory compensation is provided for on the formula of assumed income in the previous year
Ratio of the decision
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Similarly, an assumed income- tax also has to be worked out and deducted
Ratio of the decision
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If a notional income on the assumed basis can be used for fixing compensation, a notional income-tax can be calculated and deducted
Ratio of the decision
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The confusion that vitiates the argument is prompted by a circular letter of government regarding non-deductibility of income-tax due to the State from the amount of compensation lying to the credit of estate holders
Ratio of the decision
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We have examined the circular letter and are satisfied that it has no relevance to a situation like the present and it deals with a totally different matter
Ratio of the decision
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In short, s. 27 properly construed, cannot lend itself to the meaning imputed to it by the appellant
Ratio of the decision
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The serious question that survives for consideration is covered by the remaining points which more or less overlap
Ratio of the decision
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The statutory scheme of compensation for forest lands consists of machinery for assessment of the net income which is multiplied on a sliding scale and the method of challenge to the determination by the aggrieved owner of State
Ratio of the decision
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S. 26(2
Statute
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b) (v) is relevant here and may be set out:- "26(2
Statute
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gross asset' when used with reference to an estate means the aggregate of the rents, including all cesses, which were payable in respect of the estate for the previous agricultural year- (b) by the raiyats or any other persons cultivating the land other than the land settled with the intermediary or intermediaries under Sub-s
Statute
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1) of S. 7 and includes
Statute
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v) gross income from forests calculated on the basis of the appraisement made of annual yield of the forests on the date of vesting by a Forest Officer subject to the approval of the Chief Conservator of Forests, such Forest Officer being not below the rank of a Divisional Forest Officer to be appointed in this behalf by the State Government
Statute
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The expression 'Forest Officer', used here, has been explained in s. 26
Statute
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So the first step is for the Government to appoint Forest Officers from out of D.F.Os
Ratio of the decision
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in the Forest Department, for the purposes of the Act
Ratio of the decision
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Those Officers ascertain the income from the forest concerned and the figure so fixed is subject to the approval of the C.C.F. (Chief Conservator of Forests), presumably the top expert in the department
Ratio of the decision
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The power to approve implies the power to disapprove or modify but not to report or arrive at an income de hors the Forest Officer's Report altogether
Ratio of the decision
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The section is clear that the gross income from forests must be calculated on the basis of appraisal of the annual yield on the date of vesting firstly, by a Forest Officer and, secondly, by the Chief Conservator of Forests screening it and approving it
Ratio of the decision
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Indeed, preliminary to the appraisal operation, the intermediary receives a notice in Form 'D' (rule 13) and he is expected to furnish a return of the relevant particulars and supporting information to enable correct appraisement
Ratio of the decision
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In the present case, the appellant did submit the 'D' return to the Compensation Officer and adduced some evidence to substantiate it
Ratio of the decision
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The Compensation Officer passed an order adverse to the appellant, where upon he filed an appeal to the Collector which was rejected
Facts
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A Second Appeal followed before the Board of Revenue which was dismissed
Facts
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Later, revision petition were filed before the High Court and G. K. Misra J., set aside the order disallowing the inclusion of the income from forests for ascertainment of compensation and directed a remand to the Compensation Officer
Facts
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The said order (the relevant portion of which we are concerned) runs thus:- "He would immediately call upon the Divisional Forest Officer to make appraisement within three months from the receipt of the record
Facts
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The appraisement can be scientifically done by looking to the age of the trees as they stand now
Facts
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It is open to the petitioners to give evidence that after the date of vesting many of the trees and forest produce have been removed
Facts
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Besides the evidence already on record would be taken into consideration
Facts
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The Divisional Forest Officer who would make the appraisement will be examined as a witness for the Compensation Officer and would be subjected to cross-examination
Facts
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No other evidence would be permissible as the State has not chosen to give any other evidence
Facts
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Under Rule 13(1-c) of the Orissa Estates Abolition Rules, 1952 the compensation officer may rely upon such other materials as may otherwise be ascertained by him
Facts
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But in such a case the materials must be brought to the notice of the petitioners who would be entitled to cross-examine the witnesses connected therewith and may give rebutting evidence
Facts
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The compensation case is to be disposed of by the compensation officer within six months from today (104-1969) with intimation to this Court
Facts
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Strictly speaking, the statutory requirement is for initial appraisal of the annual income by the Forest Officer
Ratio of the decision
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The use of the expression 'Divisional Forest Officers is erroneous although Forest Officers are appointed from among Divisional Forest Officers
Ratio of the decision
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Equally clearly, a slight error has crept into the Judge's order because he does not make any reference specifically to the statutory requirement of approval of the Chief Conservator of Forests of the appraisement made by the Forest Officer
Ratio of the decision
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However, what followed is interesting though erroneous
Ratio of the decision
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The District Forest Officer (who, incidentally, happens to be a Forest Officer under the Act, having been appointed as required thereunder) made his appraisal of the annual income and submitted to the Chief Conservator who altered the annual yield and reduced it substantially
Facts
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But he pointed out that the Forest Officer had omitted to include the income from kendu leaves and added that sum to the income from forests
Facts
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Even so, the total figure was less than what the Divisional Forest Officer had recommended
Facts
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The Compensation officer accepted the report of the Chief Conservator and made the statutory calculation on that date
Facts
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Both the State and the appellant filed appeals to the Collector which were dismissed
Facts
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A second appeal was filed by the appellant before the Board of Revenue without success
Facts
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Then followed three revision petitions to the High Court which led to the order of remand now attacked before us in the present appeals
Facts
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From this narrative, what follows is that the Chief Conservator had substituted his appraisement which was accepted by the statutory tribunal
Facts
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Indeed, there was a fundamental difference in the basis adopted by the Forest Officer and the Chief Conservator in the matter of assessing the income of the forests in question
Ratio of the decision
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We need not go into this detail except for the purpose of noticing that what the Chief Conservator did was not to approve wholly or in a modified form what the Forest Officer did but to make his own appraisal independently and without reference to the report of the statutory functionary, viz., the Forest Officer
Ratio of the decision
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This was wrong and contrary to s. 26, as was contended by the appellant and in a way accepted by the High Court
Ratio of the decision
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We are in agreement with the course adopted by the High Court and the reasoning which has prevailed with it
Ruling by Present Court
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The direction given by the learned Judge in the remand order is correct although it may require a little clarification
Ruling by Present Court
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Having heard the appellant at some length, we see no flaw in the High Court's order on this aspect of the matter
Ratio of the decision
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It is astonishing that anyone should urge, as the appellant did, that the date of vesting is the last date by which the calculation of compensation should have been made and since that had not been done, the Compensation Officer had become functus officio in awarding compensation
Ratio of the decision
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Before the date of vesting the State never can, nor does, fix the compensation through the Compensation officer in any of the agrarian reform laws, and these compensation operations are post statutory exercises
Ratio of the decision
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Therefore there is no substance in the functus officio argument
Ratio of the decision
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If the officer had no jurisdiction, the land would be gone because of the vesting provision and no compensation would be forthcoming for want of jurisdiction-a consequence the appellant never wants
Ratio of the decision
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Technicality can be frightened away by technicality
Ratio of the decision
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Nor is it right to contend, as the appellant did, that the Compensation Officer's jurisdiction was created by the order of remand by the High Court
Ratio of the decision
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No, it was created by the statute and canalised by the order of remand
Ratio of the decision
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It follows that, after the present second remand, the re-appraisal of the annual net income cannot be done solely by the Forest Officer without securing the approval of the Chief Conservator
Ratio of the decision
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Nor can the Compensation Officer by-pass the Chief Conservator on the misunderstood strength of the High Court's first order of remand
Ratio of the decision
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The true legal drill is
Ratio of the decision
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and this holds good after the second remand order-that the Forest officer will do the appraisement of the annual income, forward his report to the Chief Conservator of Forests who will take the said report into consideration and, if necessary, make modifications therein or approve it with such changes as he deems fit
Ratio of the decision
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Certainly the Chief Conservator cannot be ignored by the Compensation Officer nor can the Chief Conservator ignore the assessment made by the Forest Officer and go through an independent exercise
Ratio of the decision
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The integrated process has already been explained by us and will be followed in the proceedings to ensue on remand
Ratio of the decision
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We may make it clear that now that a Forest officer has made an appraisement, the Chief Conservator of Forests will apply his mind to it and approve it as a whole or with such modifications as he thinks necessary and forward it to the Compensation Officer
Ratio of the decision
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This will, among other things, save time
Ratio of the decision
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Thereafter, the appropriate statutory course will follow
Ratio of the decision
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Substantially, this is what has been done by the learned Judge when allowing the revisions and remitting the case back to the Compensation Officer
Ratio of the decision
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The take-over of the forests of the appellant was effected as early as 1960 and 16 years have passed without the intermediary being out of the litigative woods
Ratio of the decision
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