1. Land acquisition under M.P. Town Improvement Trust Act — Dispute over whether failure to take physical possession prevents vesting of land in the State. (Para 2 , 3 )
Back
Next 
1996 Supreme(SC) 1177
1996(6) Supreme 545
SUPREME COURT OF INDIA
K. Ramaswamy and G.B. Pattanaik, JJ.
Indore Development Authority -Appellant
versus
Shri Balkrishna & Ors. -Respondents
Civil Appeal No. 10690 of 1996
(Arising out of SLP (C) No. 19160/94)
Decided on 5-8-1996
Counsel for the Parties :
For the Appellant : A.K. Chitale, Sr. Advocate, S.K. Gambhir and Vivek Gambhir, Advocates.
For the Respondents : U.N. Bachhawat, Sr. Advocate, A.P. Dhamija, S.K. Jain, Advocates.
Important Points
IMPORTANT POINT
Under the M.P. Town Improvement Trust Act, the land should be deemed to have been vested in the State covered by the scheme free from all encumbrances, as soon as the notification under sub-section (2) of Section 71 is published.
Under the M.P. Town Improvement Trust Act, the land should be deemed to have been vested in the State covered by the scheme free from all encumbrances, as soon as the notification under sub-section (2) of Section 71 is published.
Subject
Land Acquisition - Town Improvement Scheme
Act Referred
LAND ACQUISITION ACT: S.16, S.6(3)
MADHYA PRADESH NAGAR TATHA GRAM NIVESH ADHINIYAM: S.54
MADHYA PRADESH TOWN IMPROVEMENT TRUST ACT: S.71(2), S.52, S.71
MADHYA PRADESH NAGAR TATHA GRAM NIVESH ADHINIYAM: S.54
MADHYA PRADESH TOWN IMPROVEMENT TRUST ACT: S.71(2), S.52, S.71
Headnote
M.P. Town Improvement Trust Act-Section 71(2)-Town Improvement Scheme-Sanction duly granted by Government-Notification published u/s 71(2)-Land should be deemed to have been vested in State covered by scheme free from all encumbrances-Vesting is complete on date of publication of notification u/s 71(2)-Steps required to be taken under sub-sections (3) and (4) of Section 71, for taking actual possession, are only ministerial acts-Limitation u/s 54 of Adhiniyam to commence scheme-Proceedings in court would be excluded from computation of period for considering the lapse of scheme (M.P. Nagar Tatha Gram Nivesh Adhiniyam, 1973).
Held : Vesting is complete as soon as the notification under sub-section (2) of Section 71 was published and thereafter the land vested is free from all encumbrances. It is true that under the Adhiniyam, Section 54 enjoins the town or country development authority to commence the scheme within two years and complete the scheme within five years from the date of sanction. (Para 5)
By the proviso the time taken by the proceedings in court would be excluded from computation of the period for considering the lapse. Under those circumstances, it cannot be held that the scheme has lapsed. Since the proceedings are pending. Section 56 of the Adhiniyam is equally has no application. (Para 6)
Legal Category Hierarchy
Table of Contents
2. Whether land vests upon notification or actual possession — Whether the scheme lapsed under the M.P. Nagar Tatha Gram Nivesh Adhiniyam, 1973. (Para 3 , 4 )
3. Vesting occurs upon publication of notification under Section 71(2) of the Trust Act; subsequent possession proceedings are merely ministerial acts. (Para 5 )
4. Vesting of land in the State is complete upon publication of the notification under Section 71(2) of the Trust Act, regardless of actual physical possession. (Para 5 )
5. Appeal allowed — High Court order set aside — Writ petition dismissed. (Para 7 )
6. Does the failure to take physical possession of land prevent its vesting in the State under the M.P. Town Improvement Trust Act?
No. Vesting is complete upon the publication of the notification under Section 71(2) of the Act. The subsequent steps to take physical possession under sub-sections (3) and (4) are merely ministerial acts and do not postpone or jeopardize the vesting. (Para 5 )
7. Under what conditions does a town development scheme lapse under Section 54 of the M.P. Nagar Tatha Gram Nivesh Adhiniyam, 1973?
A scheme lapses if the Town and Country Development Authority fails to commence implementation within two years or complete its implementation within five years from the date of notification of the final scheme. (Para 5 )
8. How does pending litigation affect the computation of the period for the lapse of a scheme under the M.P. Nagar Tatha Gram Nivesh Adhiniyam, 1973?
Under the proviso to Section 54, the period during which a dispute regarding the scheme is pending before a court or tribunal of competent jurisdiction is excluded from the computation of the period for determining the lapse of the scheme. (Para 5 , 6 )
ORDER
Leave granted.
We have heard learned counsel for the parties.
2. This appeal by special leave arises from the order of the Division Bench of the M.P. High Court made on April 19, 1994 in Misc. Petition No. 885/87. The admitted facts are that Town improvement Scheme No. 54 was framed under the provisions of th M.P. town Improvement Trust Act (for short, Trust Act ). The Scheme consists of 629.43 acres of land situated in Indore of which 4.85 acres is the subject matter in this appeal. The Government had sanctioned this scheme under Section 54 of the Act. On September 16, 1966, the scheme was published in the State Gazette under Section 52 (1) of the Act. Therefore, it is a conclusive evidence that the scheme was framed and sanction was duly granted by the Government. In other words, it has given conclusiveness to the public purpose. The Government under Section 70 of the Act accorded sanction for the acquisition of the land. Notification under Section 70(1) of the Act was published on August 22, 1973. Consequently, by operation of Section 71 (2) of the Act, the land on and from the date of such publication, stood vested absolutely in the trust free from all encumbrances. Sub-section (3) gives power to the trust to give notice in writing, order any person who may be in possession of the land to surrender or deliver possession thereof, to the trust or to any person duly authorised by it in this behalf within thirty days of the service of the notice. In case the person in possession does not surrender or refuses to deliver possession, under sub-section (4), the trust has been empowered to take possession of the land and for that purpose cause such force to be used as may be necessary to take possession of the land.
3. The respondents filed the writ petition in the High Court questioning the validity of the acquisition on the ground that since possession was not taken from them, the land did not vest in the State and, therefore, the scheme had failed. The High Court in the impugned order relving upon the scheme in the Land Acquisition Act, 1894 (1 of 1894) (for short, the Act ), in particular Section 16 thereof and in view of the cases decided in that behalf, held that since possession was not taken, the scheme has lapsed. Thus, this appeal by special leave.
4. It is contended by Shri A.K. Chitale, learned senior counsel for the appellant that the High Court was wholly wrong in its conclusion that the scheme had lapsed on failure to take possession of the land. He has specifically drawn our attention to Section 71 (2) of the Trust Act. Shri Bachhawat, learned senior counsel for the respondent, now sought to place reliance, though not pressed in the High Court, on Section 54 of M.P. Nagar Tatha Gram Nivesh Adhiniyam, 1973 (for short, the Adhiniyam ). It is contended that if the scheme is not commenced within a period of two years or completed within a period of five years from the date of the final notification, the final scheme under Section 50 on expiry of the said period shall stand lapsed. Accordingly, it is contended that the scheme is no longer in existence. He also contended that though the land stands vested in the State on the publication of the notification under Section 70(2) of the Trust Act until possession is actually taken the vesting is not complete and, therefore, by operation of Section 54 of the 1973 Adhiniyam, the possession cannot be taken. He also contends that under Section 56 of 1973 Adhiniyam, until the agreement is arrived at between the parties, on expiry of the period of three years from the date of the notification under Section 52 of the Trust Act, if the Town Development Scheme under Section 50 of the Adhiniyam, 1973 has not been implemented within three years therefrom, it shall stand lapsed. On requisition by the Trust and acceptance thereof by the Government, appropriate procedure under the Act shall be pursued and compensation paid. In this case, that procedure was not adopted. Therefore, in ei
