Important Point
The acquisition of 73.3 hectares of drig land situated in Indore District for the alleged public purpose of ‘establishment of diamond park’ is held justified and not malafide.

Judgment

P. Venkatarama Reddi, J.—Facts and Contentions:-

The acquisition of 73.3 hectares of dry land situate in Rangwasa village of Indore District and Tehsil belonging to the appellants and others is the subject-matter of challenge in these appeals filed by the landholders. The said extent of land was notified for acquisition under Section 4(1) of the Land Acquisition Act (hereinafter referred to as Act ) for the alleged public purpose of establishment of diamond park . This parcel of land together with an extent of 44.8 hectares of Government land was meant to be placed at the disposal of the Industries Department and/or Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd. (hereinafter referred to as the Nigam ) for the purpose of allotting the same to various industrial units-the foremost among them being the 9th respondent-Company, for setting up diamond cuffing and polishing units with modern technology. The proposal in this regard emanated from the General Manager of District Industries Centre, on the initiative taken by the 9th Respondent. After the land was located by a joint inspection committee of officials, the Government of Madhya Pradesh (Commerce & Industries ­Department) had given sanction in principle for the acquisition. The District Collector, Indore through his letter dated 24.1.1996 sought the approval of the Commissioner, Indore Division to invoke Section 17(1) of the Act in order to expedite the process of acquisition. In that ­letter, the Collector mentioned that prestigious exporters from India as well as foreign countries were likely to establish their units in this park which would generate good deal of foreign exchange and create employment ­potential.

2. The Commissioner accorded his approval by a communication dated 29.1.1996. This resulted in the issuance of the notification under Section 4(1) of the Act on 30th June, 1996 by the Collector & Ex-officio Deputy Secretary to Government, to whom it appears the powers were delegated. By the same Notification, the enquiry under Section 5A was dispensed with. It was indicated in the Notification that the land map could be inspected in the office of the SDO, Indore and General Manager, District Industries Centre. A few days later i.e., on 9.2.1996, the declaration under Section 6 of the Act was published. The Collector (Land Acquisition) was directed to take possession after the expiry of 15 days from the date of issuance of notice under Section 9(2) of the Act. Before the possession was taken, the writ petitions under Article 226 of the Constitution were representing 80 of the estimated compensation amount. The SLPs filed in this Court were disposed of on 11.10.1996 on the basis of the representation made by the learned counsel for the State of Madhya Pradesh that the Notification under Section 6 will be withdrawn and the procedure under Section 5A will be followed. Accordingly, the Collector, Indore District published a Notification on 15.10.1996 withdrawing the declaration under Section 6. After due enquiry, the Land Acquisition Officer submitted a report under Section 5A overruling the objections put forward by the appellants. On a perusal of the report, the Collector as well as the Commissioner decided to go ahead with the acquisition. Accordingly, a fresh Notification under Section 6 was issued on 3-1.1997. As in the earlier Notification, the public purpose was mentioned as establishment of a diamond park . This was again challenged by the aggrieved landholders including the appellants. A Division Bench of the High Court dismissed the writ petitions which were filed by the present appellants having interest in about 63 acres in Survey No. 684. Against that judgment, these appeals by special leave have come up. This Court, while taking note of certain additional facts disclosed in IANo. 2/2001, passed an order on 29.8.2001 formulating four questions in respect of which the findings of the High Court were called for. The following are the four q