Section 38
. Decision of certain disputes arising out of acquisition proceedings . — (1) If, in the course of proceedings under section 37, a question of proprietary right arises, the collector shall decide the dispute and submit the record of the case for confirmation of the order passed by him to the Chief Commissioner:
38 . Decision of certain disputes arising out of acquisition proceedings . — (1) If, in the course of proceedings under section 37, a question of proprietary right arises, the collector shall decide the dispute and submit the record of the case for confirmation of the order passed by him to the Chief Commissioner:
Provided that the collector may, if he deems fit, instead of deciding such dispute, grant to any party a certificate declaring that the matter is fit to be determined by a civil court and dismiss the application for acquisition of land.
(2) The person to whom such certificate is granted may, within three months of the grant thereof, institute a suit to establish his right in a court of competent jurisdiction, and such court may, upon the production of such certificate, entertain such suit.
(3) Where a party, to whom such certificate has been granted, fails to institute a suit within the time allowed, he shall be deemed to have instituted such suit and lost it.
(4) The dismissal of an application under the proviso to sub-section (1) shall be no bar to the entertainment of a second application for acquisition filed by the landlord, if—
(i) in the civil suit, instituted under the provisions of the said proviso, the question of proprietary right is determined in his favour; or
(ii) in case a certificate to file a suit has been granted to a person other than the landlord, no such suit has been filed within the period allowed under sub-section (2).