Judgment

MUDHOLKAR, J: (B. P. Sinha, C.J.I. ,Kajagopala Ayyangar & Venkatarama Aiyar, JJ. concurring.) The petitioners who have acquired over six acres of land by purchase for Rs. 4,50,000 in February, 1961 under five sale deeds and one lease deed claim to have done so for the purpose of establishing a paper mill in collaboration with Messrs. R. S. Madhoram and Sons who had been granted a licence for the establishment of a paper plant in Ghaziabad in Uttar Pradesh. The aforesaid land is statute in the village Meola Maharajpur, Tehsil Ballabhgarh, District Gurgaon and abuts on the Mathura Road, and is only about 10 or 12 miles from New Delhi. Respondent No. 6, Air Conditioning Corporation (P) Ltd., is a private limited concern and holds a licence from the Government of India for starting a factory for the manufacture of various ranges of refrigeration compressors and ancillary equipment. We may mention here that initially this project was allotted to the State of West Bengal but at the request of the State of Punjab its location was shifted to the State of Punjab.

2. The respondent No. 6 requested the State of Punjab for the allotment of an appropriate site for the location of the factory. The petitioners contend that the respondent No. 6 being interested in acquiring land in the village Meola Maharajpur approached the State of Punjab in or about the month of March, 1961 for the purpose of acquiring land for their factory under the Land Acquisition Act, 1894 (thereinafter referred to as the Act). One of the petitioners having learnt of this made an application on March 23,1961 to the Deputy Commissioner, Gurgaon requesting him that none of the lands purchased by the petitioners should be acquired for the benefit of the respondent No. 6. Owners of adjacent lands Mr. Om Prakash, Mr. Ram Raghubir, Mr. Atmaram Chaddha and Mr. Hari Kishen who are petitioners in W. P. 247 and 24S of 1961 which were heard along with this petition made similar requests. The petitioners allege that they were assured by the Deputy Commissioner that their lands would not be acquired for the benefit of respondent No.6. Thereafter the respondent No. 6 purchased by private treaty a plot of land measuring approximately 70,000 sq. yards contiguous to the land owned by the petitioners on or about April 21, 1961.

3.The petitioner s grievance is that notwithstanding the assurances given to them by the Deputy Commissioner, Gurgaon, the Governor of Punjab, by notification dated August 25, 1961, under S. 4 of the Act declared that the lands of the petitioners in this petition as well as those of the petitioners in the other two writ petitions were likely to be needed by Government at public expense for a public purpose, namely, for setting up a factory for manufacturing various ranges of refrigeration compressors and ancillary equipment. It accordingly notified that the land in the locality described in the notification was required for the aforesaid purpose. Similarly it authorised the Sub-Divisional Officer and Land Acquisition Officer Palwal to enter upon and survey the land in the locality and to do all other acts required or permitted by S. 4 of the Act. It further directed that action under S. 17 of the Act shall be taken because there was urgency and also directed that the provisions of S. 5A shall not apply to the acquisition. On August 19, the Governor of Punjab made a notification under S. 6 of the Act to the effect that he was satisfied that the land specified in the notification was required by Government at public expense for public purpose, namely, for setting up a factory for the manufacture of refrigeration compressors and other ancillary equipment and declared that the aforesaid land was required for the aforesaid purposes. This declaration was made "to all whom it may concern" and the Sub-Divisional Officer, Palwal was directed to take all steps for the acquisition of this land. Finally the notification provided for the immediate taking of possession