Amritsar Improvement Trust: State Of Punjab vs S. Baldev Inder Singh

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1971 Supreme(SC) 598

SUPREME COURT OF INDIA
K.S. HEGDE AND A.N. GROVER, JJ.
The Amritsar Improvement Trust etc., Appellants
Versus
Baldev Inder Singh and others etc., Respondents.
Civil Appeals Nos. 1418, 1419 and 1662 of 1968, D/- 17-11-1971.
Advocates appeared
M/s. V. C. Mahajan and R. N. Sachthey, Advocates (In C. A. No. 1662 of 1968) and M/s. S. K. Mehta and K. L. Mehta, Advocates of M/s. K. L. Mehta and Co. and Mr. K. R. Nagaraja, Advocates (In C. As. Nos. 1418 and 1419 of 1968), for Appellant; Mr. Bishan Narain, Senior Advocate, (M/s. O. P. Sharma and B. Datta, Advocates and Mr. J. B. Dadachanji, Advocate, of M/s. J. B. Dadachanji and Co. with him) For Nos. 1 to 5 (In C. As. Nos. 1418 and 1419 of 1968), and Mr. Frank Anthony Senior Adocate, (Mr. E. C. Agrawala, Advocate with him). For No. 1 (In C. A. No. 1419 of 1968), for Respondents.

Headnote:
Punjab Town Improvement Act, 1922 - Sections 24, 25, 28, 41, 28 (2), 36, 4 (2), 24 (3), (1) - Indian Income-tax Act, 1922 - Sections 5 (5) and 7 (A) - Indore Industrial Tax Rules, 1927 - Rule 17 - Scheme - Invalid Scheme - Whether scheme prepared by Amritsar Improvement Trust under Sections 24, 25 and 28 and sanctioned by Government under Section 41 of Punjab Town Improvement Act, 1922 is an invalid scheme - Whether that scheme is necessary or feasible - Whether scheme should be sanctioned or not - Whether it would have sanctioned an expansion scheme – Held, Legal principle enunciated in those decisions is a well established principle - If an authority has a valid power to do a particular act, fact that it purported to do that act under a provision of law which did not confer power to do that act, would not invalidate Act - But that rule is inapplicable to facts of present case - Before taking action under Section 24 (2), Improvement Trust had to form a particular opinion - Formation of that opinion is a condition precedent - Until Improvement Trust forms that opinion, it is incompetent to take action under that section - Act has not conferred any blanket power on Improvement Trust, to frame any scheme which it thought fit - That being so, it is not possible to uphold contention of appellants that impugned scheme can be traced to a valid power - There is yet another difficulty in way of appellants - Schemes framed by Improvement Trust do not come into force automatically - They have to be sanctioned by Government - Government may accept them - It may reject them - It may amend them and it may even send them back to Improvement Trust for reconsideration - Hence, it is necessary for Government to know before sanctioning scheme as to what scheme is - Even if Court accept that contention that does not alter legal position – Court should not mix up facts of this case with scope of relevant provisions in Act – Court cannot confine attention to facts of a particular case – Court conclusion that power conferred on Improvement Trust is a limited power is reached on basis of nature of power conferred and not on basis of facts of this case - Fact that government is prepared to bless a particular scheme does not change nature of power - Scheme before Court is one and indivisible - It is not possible to hold that it is partly valid and partly invalid - It has to stand or fall as a whole - Appeals dismissed.

Judgment

HEGDE, J.:- In these appeals by certificates, just one question of law arises for decision and that question is whether the scheme prepared by the Amritsar Improvement Trust under Sections 24, 25 and 28 and sanctioned by the Government under Section 41 of the Punjab Town Improvement Act, 1922 (to be hereinafter called the Act) is an invalid scheme. The High Court of Punjab and Haryana has held in two writ petition that the scheme in question is an invalid scheme and has consequently set aside that scheme. Aggrieved by those decisions, the Amritsar Improvement Trust as well as the State Government of Punjab have come up in appeal.

2. The Amritsar Improvement Trust at its meeting held on April 19, 1962 resolved as follows:

"70. Item

For consideration. Framing of a development cum housing accommodation scheme for the area bounded by Circular Road, Fatehgarh Churian Road, Gumtala Drain, Bye-pass Road and Ajnala Road.

RESOLUTION.

The Trust resolved to frame a development-cum-housing accommodation scheme for the area bounded by Circular Road, Fatehgarh Churian Road, Gumtala Drain, Bye-pass Road and Ajnala Road u/ss. 24 and 25 read with Section 28 (2) of the Punjab Town Improvement Act, 1922. The Area will be developed as a commercial-cum-residential area and an industrial Colony will also be provided. Sites will be ear-marked for the construction of houses for service-men and also for labour and Harijan colonies. The scheme should now be notified under S. 36 of the Punjab Town Improvement Act, 1922, for inviting objections,"

3. That resolution was amended by the Improvement Trust at its meeting held on May, 1, 1962. The amendment reads thus:

"92. Item.

Reference Trust resolution No. 70 dated 19-4-1962.

For consideration. Re-fixation of boundaries of Dev. Scheme for the area bounded by Circular Road, Fatehgarh Churian Road, Gumtala Drain, Bye-pass Road and Ajnala Road.

RESOLUTION.

It is decided to refix the boundaries of the Development scheme as under:

"Circular Road, Fatehgarh Churian Road, Bye-pass Road and Ajnala Road."

Resolution No. 70 dated 19-4-1962 be and is amended accordingly."

4. Thereafter on May 4, 1962, it issued the following notice under Section 36 of the Act.

"The Amritsar Improvement Trust, Amritsar.

Notice under Section 36 of the Punjab Town Improvement Act, 1922.

Notice is hereby given that in accordance with Resolution No. 70, dated 19-4-1962, as amended by Resolution No. 92, dated 1-5-1962, passed by the Amritsar improvement Amritsar, the Trust has framed a development cum housing accommodation scheme for an area measuring approximately 860 acres, bounded by Circular road, Fatehgarh Churian Road, Bye-pass Road and Ajnala Road, within the local area of the Amritsar Improvement Trust, under Ss. 24 and 25 read with Section 28 (2) of the Punjab Town Improvement Act, 1922. The area will be developed as commercial-cum-residential area and an industrial colony will also be provided. Sites will be ear-marked for the construction of colonies for service-men and also for labourers and Harijans. The boundaries of the scheme are as under:

North: Starting from the junction of Ajnala road and Bye-pass Road along but excluding the land under Bye-pass road, upto its junction with Fatehgarh Churian Road;

East: Thence by Fatehgarh Churian Road but excluding the land under this Road, upto its junction with Circular Road;

South: Thence by Circular Road but excluding the land under the Circular Road, upto its junction with Ajnala Road;

West. Thence by Ajnala Road but excluding the land under the Ajnala road, upto its junction with Bye-pass Road, the point of start.

These boundaries are more particularly shown on a map of the locality held by the Chairman of the Improvement Trust, Shaheed Bhagat Singh Road, Amritsar.

2. Details of the Scheme and a statement of the land to be acquired and the general map of the locality comprised in the scheme may be inspected at the office of the Trust, Shaheed Bhagat Singh Road, Amritsar, during office hours, on

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