IMPORTANT POINT
A scheme notified u/s 28 of the Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam is not liable to be struck down if it has not been approved by the State Government prior to its publication as prior approval is not necessary.

JUDGMENT

S.N. Variava, J.-These Appeals are against a Judgment dated 3rd October, 1985.

2. Briefly stated the facts are as follows :

The area in question was declared as a development area on 20th August, 1974. On 8th, 15th and 20th March, 1980, the scheme in question was notified under Section 28 of the Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965 (hereinafter referred to as the Adhiniyam). The State Government approved the scheme on 11th June, 1982. The scheme came to be notified under Section 32 of the Adhiniyam on 28th August, 1982. The Respondent then challenged the scheme on the ground that the scheme having been notified prior to the sanction of the State Government was null and void and could not be given effect to. This submission found favour with the High Court, who allowed the writ petition by the impugned judgment.

3. Thus the question for consideration is whether a scheme notified under Section 28 of the Adhiniyam is liable to be struck down if it has not been approved by the State Government prior to its publication. This question has been answered by this Court in the case of U.P Avas Evam Vikas Parishad & Anr. vs. Friends Coop. Housing Society Ltd. and Anr. reported in 1995 Supp. (3) SCC 456. In this case it has been held that prior approval was not necessary. It is held that the Petitioner Board could not implement the scheme until approval was given by the State Government. It is held that once the approval is given, all the previous acts done and actions taken get validated and the publications made under the Adhiniyam also become valid. This decision covers this case squarely.

4. However, when this matter reached hearing before a Bench of this Court is was referred to a larger Bench, inter alia with the following observations :

"When the matters were taken up, learned counsel stated that these appeals stand concluded by a decision of this Court in U.P. Avas Evam Vikas Parishad and Anr. vs. Friends Cooperative Housing Society Ltd. and Anr. reported in 1995 Supp. (3) SCC 456 and, therefore, the appeals deserve to be allowed. We have looked into the said decision and are of the opinion that the said decision requires consideration by a Bench of three Judges. The learned Judges in the said decision read initiation of the Scheme under Section 28 of the Adhiniyam and whereas the initiation of the Scheme is to be found under Section 16 of the Adhiniyam. Unless there is approval of the State Government of the Scheme initiated under Section 16 of the Adhiniyam, such a Scheme cannot be published under Section 28 of the Adhiniyam. There is no approval of the State Government to the Scheme initiated by the Parishad on record, and in the absence of such an approval, any subsequent approval by the State Government of the Scheme published under Section 28 of the Adhiniyam would not cure the defect.

Since this Bench consists of two Judges, it cannot take a view contrary to the decision taken in the case of U.P. Avas Evam Vikas Parishad and Anr. (supra), which was rendered by two Hon ble Judges, we are, therefore, of the opinion that these matters require to be decided by a Bench of three Hon ble Judges."

Hence this matter has been placed before this Bench.

5. At this stage certain provisions of the Adhiniyam may be looked at. Section 16 of the said Adhiniyam provides that the Board may frame a housing or improvement scheme (a) its own motion or (b) at the instance of a local authority or (c) when it is so directed by the State Government. It further provides that the Board may refuse to frame a scheme at the instance of a local authority, under certain contingencies, in which case it shall intimate its decision to the local authority within a year from the date of receipt of the request. Section 16 further provides that the local authority may on receipt of such intimation appeal to the State Government and the order passed by the State Government would be binding on the Board. Section 17 lays down matters which are to