Judgment

RAY, C. J.:- This appeal by certificate raises the question whether the notifications dated 29 September, 1965 and 18 January, 1969 issued under Ss. 4 and respectively of the Land Acquisition Act hereinafter referred to as the Act are lawful.

2. In 1960 there was a request by the respondent Baroda Industrial Development Corporation hereinafter referred to as the Company to the State for acquiring land for expansion of the Industrial Estate of the Company. The Special Land Acquisition Officer, Baroda expressed the opinion that the acquisition was necessary as the land was adjoining the occupied land of the Company and that was the only land available.

3. On 4 March, 1961 there was a notification under Section 4 of the Act. On 22 August, 1961 there was an agreement between the State Government and the Company in accordance with the provisions contained in Section 41 of the Act.

4. It may be stated here that the decision of this Court in R. L. Arora v. State of U. P., (1962) Supp (2) SCR 149 was that in case of acquisition for a Company, the Government could give its consent if the acquisition was needed for the construction of some work which was likely to prove useful to the public.

5. In 1962 Section 40 of the Act was amended to the effect that the Government could not give consent to the acquisition of land for a company unless the Government was satisfied by holding an enquiry as fully mentioned in the section.

6. In the context of the decision of this Court in Arora s case (1962) Supp (2) SCR l49 the Central Government in 1963 in exercise of powers conferred by Section 55 of the Act made rules for the guidance of the State Government known as the Land Acquisition (Companies) Rules, 1963 hereinafter referred to as the Companies Acquisition Rules.

7. Rule 4 of the Companies Acquisition Rules provides that whenever a Company makes an application to the appropriate Government for acquisition of any land, that Government shall direct the Collector to submit a report on the matters mentioned therein. Those matters are (1) that the Company has made its best endeavour to find out lands in the locality suitable for the purpose of the acquisition; (2) that the company has made all reasonable efforts to get such lands by negotiation with the persons interested therein on payment of reasonable price and such efforts have failed (3) that the land proposed to be acquired is suitable for the purpose; (4) that the area of land proposed to be acquired is not excessive; (5) that the Company is in a position to utilise the land expeditiously; and (6) where the land proposed to be acquired is good agricultural land, that no alternative. suitable site can be found so as to avoid acquisition of that land.

8. Sub-rule (2) of Rule 4 aforesaid further provides that the Collector shall after giving the Company a reasonable opportunity to make any representation in this behalf, hold an enquiry into the matters referred to above. The Collector under sub-rule (3) of Rule 4 aforesaid shall submit a report to the appropriate Government Sub-rule (4) of Rule 4 aforesaid provides that no declaration shall be made by the appropriate Government under Section 6 of the Act unless (i) the appropriate Government has consulted the committee and has considered the report under this Rule and the report, if any, submitted Under Section 5-A of the Act; and (ii) the agreement under Section 41 of the Act has been executed by the Company.

9. Gujarat Act 20 of 1965 came into effect on 9 July, 1965. By Section 18 of the Gujarat Act called the Land Acquisition (Gujarat Unification and Amendment) Act, Section 39 of the Act was amended. The result of the amendment of Section 39 of the Act is that the provisions of Sections 4 to 37 inclusive of the Act cannot be put into force unless the previous consent of the appropriate Government is obtained and unless the Company has executed an agreement mentioned in sections following Section 39 of the Act.

10. In the present case there