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Supreme Court of India· 19 August 2026

Can Lok Adalat awards resolving an apportionment dispute among rival claimants be treated as a settlement reached in a "class action" suit under Order I Rule 8 of the Code of Civil Procedure, 1908?

SINGAPOGU BABU RAO & ORS v. SPECIAL DEPUTY COLLECTOR (LAND ACQUISITION) & ORS
2026 INSC 888 · CIVIL APPEAL NO. 7838 OF 2024
Coram: J.B. Pardiwala; Manoj Misra
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Answer

No. Order I Rule 8 presupposes a community of interest among the persons represented. Where the claimants are themselves in dispute over entitlement to compensation and are not "two parties" arriving at a settlement, there is no common interest capable of representation, and characterising such awards as a class-action settlement compounds rather than cures the infirmity.

Headnote

Land Acquisition Act, 1894 — Sections 29, 30, 31 — apportionment of compensation among rival claimants — Lok Adalat award — Code of Civil Procedure, 1908, Order I Rule 8 — Section 29 apportionment agreement — concurrence of all persons interested — Held: An agreement on apportionment of compensation under Section 29 of the Act, 1894 necessarily requires the concurrence of all persons interested; a partial or truncated consensus, wherein some claimants are excluded, cannot take effect as an "agreement" within the meaning of Section 29. (¶34, 45) Lok Adalat awards characterised as class action settlement under Order I Rule 8 CPC — Held further: Order I Rule 8 of the Code of Civil Procedure, 1908 presupposes a community of interest among the persons represented; where rival claimants are themselves in dispute over entitlement to compensation, there is no common interest capable of representation, and characterising such awards as a class-action settlement compounds rather than cures the infirmity. (¶47-49) enjoyment survey — cannot determine title or entitlement — Held further: An enjoyment survey captures nothing more than the fact of physical occupation and does not examine legal title, right, or interest; its findings cannot be treated as conclusive of entitlement to compensation. (¶40-41) impugned judgment set aside — remitted for de novo hearing — Held further: The impugned judgment was set aside and the matter remitted to the Principal District Judge, Khammam, for a de novo hearing of the apportionment reference within six months, uninfluenced by any observations; appeal allowed. (¶53-54)

In the Court's own words
Paragraph 49Having regard to the aforesaid, the High Court in its impugned judgment erred by characterizing the awards passed by the Lok Adalat as akin to a settlement in a class action suit under Order I Rule 8 of the CPC. This characterization does not cure the infirmity but rather compounds it. A representative suit under Order I Rule 8 presupposes a community of interest among the persons represented, as the interest of those who are being represented is adequately protected by those who are representing them. It would be wholly inappropriate to a proceeding where the subject matter of the dispute is the bone of contention between the claimants themselves and they are not the “two parties” arriving at a settlement. We say so because in such a case, there exists no common interest capable of representation. There is no doubt that to treat such rival claims as a single class is to elide the very dispute that the reference under Section 30 of the Act, 1894, was intended to resolve.
Acts & Sections
Land Acquisition Act, 1894Legal Services Authorities Act, 1987Code of Civil Procedure, 1908

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Also decided in this judgment
Does an agreement on apportionment of compensation under Section 29 of the Land Acquisition Act, 1894 bind claimants who were not parties to, or signatories of, the settlement?Can an "enjoyment survey" recording physical possession, by itself, determine legal title or entitlement to compensation in land acquisition proceedings?Does a Lok Adalat award settling compensation with certain landowners bind, or serve as an exemplar against, a claimant who did not consent to that settlement?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections