Judgment

GUPTA, J.:- This appeal on a certificate of fitness granted by the High Court of Gujarat is directed against an order of the said High Court dismissing the writ petition flied by the appellants challenging two notifications under Section 4 and Section 6 respectively of the Land Acquisition Act, 1894 (hereinafter referred to as the Act.)

2. The first appellant is a Director and shareholder of the second appellant, a company incorporated under the Indian Companies Act, 1913. The second appellant is the permanent lessee of a plot of land situated in Dariapur-Kazipur area of the city of Ahmedabad bearing survey Nos. 56-A, 56-B and 58. Respondent No.3, the Employees State Insurance Corporation, established under the Employees State Insurance Act, 1948 forwarded nine proposals to the first respondent, State of Gujarat, for acquisition of certain plots of land, including survey No. 56P of Dariapur-Kazipur. In regard to these proposals the first respondent, State of Gujarat, passed a resolution on October 31, 1968 according sanction to the payment of a nominal contribution of Re. 1/- for each proposal.

"for the acquisition of the private plots of land required to be acquired for the construction of the necessary dispensaries for the Employees State Insurance Scheme at Ahmedabad under the Land Acquisition Act".

The resolution directed that

"the extra expenditure on this account should be debited to 38. Medical E.S.I.S. (3) Schemes under the Second Five Year Plan and not from the sanctioned grants for the current year thereunder".

On December 13, 1960 the first respondent notified under Section.4 of the Act that an approximate area of 3000 sq. yds. out of survey No. 56A in Dariapur-Kazipur was likely to be needed "for the public purpose, namely, for Employees State Insurance Scheme, Ahmedabad at Dariapur-Kazipur, Taluka City". However, on March,16., 1962 this notification was withdrawn and another notification under Section 4 of the Act was issued stating that an approximate area of 5600 sq. yds. from the north-west corner of the same Survey No. 56A was likely to be needed for the public purpose of "construction of dispensary building and other institutions connected with the E.S.I. Scheme". It appears that on July 31, 1962 the State of Gujarat passed a fresh resolution in respect of plot No. 56A sanctioning a nominal contribution of Re. 1/- for its acquisition for the aforesaid public purpose and directing that the

"expenditure should be debited to the Budget Head 29-L Medical Employees State Insurance Scheme and should be met from the grants sanctioned thereunder during the current financial year".

As already stated, the earlier resolution covered nine proposals for acquisition including plot No. 56 A which seems to be a mistake for 56A. The appellants objections to the proposed acquisition were overruled and on August 20, 1962 a declaration under Section 6 of the Act was made stating that after considering the report of the Collector under sub-section (2) of Section 5A of the Act the Government of Gujarat was satisfied that 5632 sq. yds. of land from the north-west corner of survey No. 56A was needed to be acquired at the public expense for construction of dispensary building and other institutions connected with the E.S.I. Scheme. Ahmedabad, which was a public purpose. The declaration added that a plan of the land was available for inspection at the office of the Special Land Acquisition Officer. (E.S.I.) Scheme. Ahmedabad. The appellants filed a writ petition in the High Court of Gujarat challenging the said two notifications under Section 4 and Section 6 of the Act. The High Court having dismissed the petition, the appellants have preferred this appeal.

3. The only point pressed before us on behalf of the appellants is that the acquisition of the land in question is a case of colourable exercise of power as the State Government did not apply its mind to matters in respect of which it ought to have been satisfied before th