Judgment

RAY, C. J.:- There are two principal questions in these writ petitions and civil appeals. First, is compensation which is related to the date of notification under Section 4 of the Land Acquisition Act referred to as the Act bad? Second, is planned development of Delhi bad and vague ?

2. This Court in Aflatoon v. Governor of Delhi, AIR 1974 SC 2077 held that the notification dated 13 November, 1959 under Section 4 of the Act which is also being challenged in these writ petitions and appeals is beyond challenge now.

3. Piecemeal acquisition which was held to be bad in State of Madhya Pradesh v. Vishnu Prasad Sharma (1966) 3 SCR 557 was validated by the Land Acquisition Amendment and Validation Act with retrospective effect. The validity of the Amending Act has been upheld by this Court in Udai Ram Sharma v. Union of India (1968) 3 S. C. R. 41 and reaffirmed in Aflatoon s case (supra).

4. The contention that piecemeal acquisition under Notification dated 13 November, 1969 under Section 4 of the Act is bad is really a challenge to the adequacy of compensation under Section 23 of the Act. The Act is protected under Article 31 (5) of the Constitution. Where acquisition is for public purpose reasonableness is presumed for such public purpose. The challenge under Art. 19 of the Constitution which, according to the petitioners and the appellants, is directed as a result of the Bank Nationalisation case (1970) 3 SCR 530 can be restricted to procedural reasonableness.

5. The Government set up the Town Planning Organisation in 1955 which prepared an interim general plan in 1956 for Delhi. The influx of displaced persons after the partition of the country, the growth of slums, the problems of over crowding, insanitation, traffic hazards, sub-standard construction and lack of proper civic amenities led the Government to take effective measures to ensure the orderly and planned development of the city. This planning is to provide for different classes of people who have to live and work in the city of Delhi.

6. The plan has to provide for bona fide requirements of the public for residential, industrial and commercial purposes, and to ensure healthy and properly planned development of Delhi, on the basis of the studies made by the Town Planning experts. The Government decided to acquire 34070 acres of land in and around the city, develop and then lease out the same on a no-profit no loss basis. With this public purpose the Government issued a notification on 13 November, 1959 under Sec. 4 of the Act.

7. The Draft Master Plan giving the detailed rules and regulations in respect of the "land use" and allied matters, was published in July, 1960. In order to meet the requirements of the plan, the Government issued another notification for a further acquisition of about 16000 acres in October, 1961.

8. On 22 October, 1960 the Government of India issued a notification under Section 6 of the Act. The declaration was that specified land was required to be taken at public expense for a public purpose, viz., the Planned Development of Delhi.

9. The main contention of the petitioners and the appellants is that compensation which is to be paid with reference to the value of the property on the date of the notification is an unreasonable restriction to hold and dispose of property. It was submitted that compensation should be paid with reference to the value of the property on the date possession of the property was taken. This question has been answered in the judgment in Aflatoon s case (supra). Mathew, J. speaking for the Court said that Article 31 (5) precludes such a challenge. Further, Section 4 (3) of the Land Acquisition Amendment and Validation Act, 1967 provided for payment of interest at 6 per cent of the market value after the expiry of three years from the date of the notification under Section 4 to the date of payment of compensation. Again, Section 24 of the Act provides that any outlay or improvement on, or disposal of, the land acquired