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1996 Supreme(SC) 1542

1997(5) Supreme 410
SUPREME COURT OF INDIA
K. Ramaswamy and S.B. Majmuder, JJ
M/s. Star Wire (India) Ltd. -Petitioner
versus
State of Haryana & Ors. -Respondents
Special Leave Petition (C) No. 20489of 1996
(CC - 4992/96)
Decided on 25.9.1996
Counsels for the Parties :
For the Petitioner : P.P. Rao, Sr. Advocate, S. Janani, K.L. Gupta and R.C. Nagia, Advocates.

IMPORTANT POINT
Purchaser of property, after the notification v/s 4(1) of the Land Acquisition Act was published, is devoid of right to challenge the validity of notification or irregularity in taking possession.

Headnote:Land Acquisition Act, 1894-Sections 4 & 6-Writ petition challenging notification, declaration & award as illegal-Notification was published in 1976 & award was passed in 1981-Reference also became final-Petitioner had purchased property covered by Notification after it was published-Petitioner s title was void-It had no right to Challenge the acquisition proceedings-High Court rightly dismissed the petition. (Paras 3 & 4)

       

ORDER

Delay Condoned.

2. This special leave petition arises from the judgment of the punjab & Haryana High Court made on April 25, 1996 in LPA No. 437/96. Notification under Section 4(1) of the Land Acquisition Act, 1894 [for short, the Act"] was published on June 1, 1976. Declaration under Section 6 of the Act was published on February 16,1977. The award was passed on July 3, 1981. Thereafter, the reference also become final. The petitioner has challenged the notification, the declaration and the award as illegal, it contends that the award does not come in the way of the petitioner in filing the writ petition on January 21, 1994. The High Court has dismissed the writ petition on the grounds of laches.

3. Shri P.P. Rao, Learned senior counsel for the petitioner, Contends that the petitioner had no Knowledge of the acquisition proceedings; as soon as it came to know of the acquisition, it had challenged the validity of the acquisition, it had challenged the validity of the acquisition proceedings and, therefore, it furnishes cause of action to the petitioner. He further contends that the writ petition could not be dismissed on the ground of laches but was required to be considered on merits. We find no force in the contention. Any encumbrance created by the erstwhile owner of the land after publication of the notification under Section 4(1) does not bind the State if the possession of the land is already taken over, after the award came to be passed. The land stood vested in the State free from all encumbrances under Section 16. In Gurmukh Singh & Ors. v. The State of Haryana1, this Court had held that a subsequent purchaser is not entitled to challenge the legality of the acquisition proceedings on the ground of lack of publication of the notification. In Y.N. Garg v. State of Rajasthan2 and Sneh Prabha v. State of U.P.3, this Court had held the alienations made by the erstwhile owner of the land after publication of the notification under Section 4(1), do not bind either the State Government or the beneficiary for whose benefit the land was acquired. The purchaser does not acquire any valid title. Even the colour of title claimed by the purchaser was void. The beneficiary is entitled to have absolute possession free from encumbrances. In U.P. Jai Nigam, Lucknow through its Chairman & Anr. v. M/s. Kalra properties (P) Ltd., Lucknow & Ors.4, this Court had further held that the purchaser of the property, after the notification under Section 4(1) was published, is devoid of right to challenge the validity of the notification or irregularity in taking possession of the land before publication of the declaration under Section 6. As regards laches in approaching the Court, this Court has been consistently taking the view starting from State of Madhya Pradesh & Anr. v. Bhailal Bhai & Ors.5 wherein a Constitution Bench had held that it is not either desirable or expedient to lay down a rule of universal application but the unreasonable delay denies to the petitioner, the discretionary extraordinary remedy of mandamus, certiorari or any other relief. The came was view reiterated in catena of decisions, viz., Rabindranath Bose & Ors. v. The Union of India & Ors6, State of Mysore & Ors. v. Narsimha Ram Naik7, Aflatoon & & Anr. v. Lt. Governor of Delhi8; M/s. Tilokchand Motichand & Ors. v. H.B. Munshi, Commissioner of Sales Tax, Bombay & Anr.9; State of Tamil Nadu & Ors. etc. v. L.Krishnan & Ors. etc.10; Improvement Trust, Faridkot & Ors. v. Jagjit Singh & Ors.11; State of Punjab & Ors. v. Hari Om Co-operative House Building Society Ltd., Amritsar12; Market Committee, Hodal v. Krishan Murari & Ors.13; and State of Haryana v. Dewan Singh14 wherein this Court had held that the High Court was not justified in interfering with the acquisition proceedings. This Court in the latest judgment in Municipal Corporation of Great Bombay v. The Industrial Development & Investment Co. Pvt. Ltd. & Ors.15, reviewed the entire case law and held that the




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