SUPREME COURT OF INDIA
9th August, 1961
P.B. GAJENDRAGADKAR, K. SUBBA RAO, M. HIDAYATULLAH, J.C. SHAH AND RAGHUBAR DAYAL, JJ.
Paresh Chandra Chatterjee (In both the Petitions), Petitioner
Versus
The State of Assam and another (In both the Petitions), Respondents.
Petitions Nos. 236 and 237 of 1960,
Advocates appeared
M/s. K. B. Bagchi and R. C. Datta Advocates, for petitioner (In both the petitions); Mr. A. V. Viswanatha Sastri, Sr. Advocate, (Mr. Naunit Lal, Advocate, with him, for Respondents (in both the Petitions.)
LAND ACQUISITION - ASSAM LAND (REQUISITION AND ACQUISITION) ACT, 1948 - CONSTITUTIONALITY - TEA INDUSTRY - CONTROL BY UNION - TEA ACT, 1953 - COMPENSATION FOR REQUISITION - PRINCIPLES - LAND ACQUISITION ACT, 1894 - APPLICABILITY.
Fact of the Case:
The petitioner, owner of a tea estate in Assam, challenged the constitutional validity of the Assam Land (Requisition and Acquisition) Act, 1948 (the Act), on the grounds that it was ultra vires the State Legislature and violated Art. 31(2) of the Constitution.
Finding of the Court:
The Court held that the Act was constitutionally valid as it was passed before the commencement of the Constitution and continued to be in force by virtue of Art. 372. The Tea Act, 1953, which provided for the control of the tea industry by the Union, did not alter, repeal, or amend the Act. The Act provided for compensation for requisition of land and laid down principles for determining the compensation, by applying the provisions of the Land Acquisition Act, 1894, mutatis mutandis.
Issues: 1. Whether the Assam Land (Requisition and Acquisition) Act, 1948, was ultra vires the State Legislature? 2. Whether the Act violated Art. 31(2) of the Constitution?
Ratio Decidendi: 1. The Act was passed before the commencement of the Constitution and continued to be in force by virtue of Art. 372. 2. The Tea Act, 1953, did not alter, repeal, or amend the Act. 3. The Act provided for compensation for requisition of land and laid down principles for determining the compensation, by applying the provisions of the Land Acquisition Act, 1894, mutatis mutandis.
Final Decision: The petitions challenging the constitutional validity of the Act were dismissed.
Judgment
SUBBA RAO, J. : The petitioner owns a tea estate called the Urrunabund Tea Estate in village Udarbund in the District of Cachar in the State of Assam. The extent of the Tea Estate is about 2682 acres. Out of the said area 553.73 acres are under tea cultivation and the rest, according to the petitioner, is utilised for the purpose of tea industry and for purposes connected with the said industry. The respondents do not admit this fact and state in the counter-affidavit that the remaining area is lying fallow and unutilised. On December 4, 1959, the Deputy Commissioner of Cachar at Silchar, respondent No. 2, issued a notification requisitioning all area of183 bighas of land of the said Tea Estate, and by another notification dated December 5, 1959, he requisitioned another extent of 149 bighas 19 cottahs and 11 chattacks of land of the said Tea Estate. The petitioner filed two petitions in this Court under Art. 32 of the Constitution praying for the issue of writs of mandamus directing the respondents to forbear from giving effect to the said orders.
2. Learned counsel appearing for the petitioner raised before us two contentions namely, (i) tea industry is a matter for exclusive legislation by the parliament under Entry 52, List I of the Seventh Schedule to the Constitution, and, therefore, the Assam Land (Requisition and Acquisition) Act of 1948, (hereinafter called the Act), in so far as it provides for the requisition and acquisition of a tea estate or lands appertaining to it is ultra vires the State Legislature; and (ii) the said Act is also constitutionally void as it offends Art. 31 (2) of the Constitution, inasmuch as it does not either provide for payment of compensation for the property requisitioned or specify the principles on which and the manner in which compensation is to be determined.
3. To appreciate the first contention, it is necessary to state some facts. The Land (Requisition and Acquisition) Act. 1948, was passed by the Assam Legislature and it received the assent of the Governor on November 14, 1948. It is a pre-Constitution Act, presumably made under Entry 9, List II of the Seventh Schedule to the Government of India Act, 1935, which related to "compulsory acquisition of land". Entry 34, List I of the Seventh Schedule to the said Act was "development of industries, where development under Federal control is declared by Federal law to be expedient in the public interest .
4. It is not stated that there was any Federal law declaring that the development of tea industry was expedient in the public interest. Therefore, at the time when the Act was passed by the Assam Legislature, even on the assumption that the entry relating to development of industries would cover legislation to prevent acquisition and requisition of land forming part of a tea estate, there was no Federal law declaring that development of tea industry was expedient in the public interest, with the result the Act was constitutionally valid at the time it was made. If so, the said law, by reason of Art. 372 of the Constitution, would continue to be in force after the commencement of the constitution until altered, repealed or amended by a competent Legislature or other competent authority. The Tea Act of 1953 was a central Act which received the assent of the President on May 28, 1953. It was passed by the Parliament in exercise of the power to make laws with respect to matters enumerated in Entry 52, List I of the Seventh Schedule to the Constitution. Entry 52 reads, "industries, the Control of which by the Union is declared by Parliament by law to be expedient in the public interest . Section 2 of the Tea Act in specific terms declares that it was expedient in the public interest that the Union should take under its control the tea industry. The question, therefore, is not whether at the time the Act was passed by the Legislature of the Province it had constitutional competence to make it-there cannot be any doubt about its compet
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