SUPREME COURT OF INDIA
N.L. UNTWALIA AND P.N. SHINGHAL, JJ.
State of Gujarat and another, Appellants
Versus
Sankalchand Khodidas Patel (dead) by L.Rs, Respondents.
Civil Appeal No. 177 of 1973,
Decided on 9-11-1977.
Advocates appeared
S. T. Desai, Sr. Advocate, (P. H. Parekh and M. N. Shroff, Advocates with him), for Appellants; D.V. Patel, Sr. Advocate, (Miss Vasuben P. Shah, S.K. Dholakia and Raju Ramachandran, Advocates with him), for Respondents; Hamid Kureshi, for Intervener.
Constitution of India – Article 133 – Claim of compensation - Acquisition on payment - Possession of the land - Defendant traversed claim in plaint and specifically pleaded that acquisition was for a public purpose and that it had agreed to pay amount of compensation when asked for to plaintiff - City Civil Judge dismissed the suit by his judgment - High Court however allowed the plaintiffs appeal, set aside the trial courts decree, declared the notification under S. 6 of the act to be bad in law and void, and perpetually restrained the defendants from enforcing the notification and from taking any further steps in pursuance thereof - This is why the State has come up in appeal to this Court - A perusal of the impugned judgment of the High Court shows that while it decided some of points in controversy against the plaintiff, it allowed the appeal because it took the view that the acquisition was not for a public purpose within meaning of S. 6 of the Act as intention declared by the Government to pay the amount of subsidy to the Additional Special Land Acquisition Officer in respect of the land under acquisition has been by necessary implication abandoned – Held, It would thus appear that High Court committed the aforesaid illegalities and misread the evidence on record in setting aside the finding of trial court in favor of defendant - It may be that amount of compensation, which was to be paid by the State Government on account of compensation to be awarded for acquiring the property out of public revenues, was not paid, but there can be no doubt that, as has been stated, a decision had been taken that it was to be so paid by the Government as required by the second proviso to sub-section (1) of S. 6 of Act. As we have stated, the actual payment was not made because of the protracted litigation, but the State Governments anxiety to acquire land for the public purpose could well be appreciated from the fact that it has adhered to its intention to acquire land according to law and to make its contribution towards the compensation as and when necessary - Fact that State has preferred the present appeal also guest to show that it has not abandoned its intention to make acquisition on payment of a part of compensation out of public revenue - It may also be mentioned that Desai appearing on behalf of State has categorically stated at Bar that the State Government will contribute from public revenues towards compensation at appropriate time - Position would no doubt have been different if it had been shown that Government had abandoned intention to do so or had decided not to pay any part of the compensation out of the public revenues, for then requirement of the second proviso to sub-section of S. 6 would not have been fulfilled but as has been shown, this was really not so - It would thus appear that the High Court committed an error of law in interfering with judgment of trial court - Appeal is allowed with costs and the impugned judgment and decree are set aside and the decree of the trial court is restored - Appeal allowed
JUDGMENT
SHINGHAL, J.:— This is an appeal by the defendant State of Gujarat and another against the appellate judgment and decree of the Gujarat High Court dated February 17/18, 1972) on a certificate under Art. 133 (1) (b) of the Constitution as its stood before the Constitution (Thirtieth Amendment) Act, 1972.
2. The case arose on a suit instituted by the plaintiff Sankalchand Khodidas Patel on 8-2-1961, to challenge the validity of the notifications issued by the defendant State under Ss. 4 and 6 of the Land Acquisition Act, 1894 (hereinafter referred to as the Act) in respect of land bearing survey number 146, in Dariapur-Kajipur area of Ahmedabad city. The notification under S. 4 was issued on May 23, 1958, in respect of 1 acre 36 gunthas of land. It was stated in the notification that the land was likely to be needed for a "public purpose, viz., for the constructing of houses for New Sarvodaya Co-operative Housing Society Ltd., at Dariapur-Kazipur, Ahmedabad." An erratum was issued on August 20, 1959, by which it was further clarified that the land was required for "providing housing facilities of New Sarvodaya Co-operative Housing Society, Ltd., for Backward Class peopel at Dariapur-Kazipur, Ahmedabad." The notification under S. 6 of the Act was issued on August 13, 1960, in which it was declared, inter alia, that the land was required for the "public purpose specified in column 4 of the Schedule, namely, for providing housing facilities for the Backward Class people referred to above. The plaintiff prayed for a declaration that the notifications were illegal and null and void, and for a perpetual injunction restraining the defendants and their agents etc. from taking possession of the land or disturbing the plaintiffs possession.
3. The defendant traversed the claim in the plaint and specifically pleaded that the acquisition was for a public purpose and that it had (as the acquiring body) "agreed to pay the amount of compensation when asked for to the plaintiff". The City Civil Judge dismissed the suit by his judgment dated March 1, 1966. The High Court however allowed the plaintiffs appeal, set aside the trial courts decree, declared the notification under S. 6 of the act to be bad in law and void, and perpetually restrained the defendants from enforcing the notification and from taking any further steps in pursuance thereof. This is why the State has come up in appeal to this Court.
4. A perusal of the impugned judgment of the High Court shows that while it decided some of the points in controversy against the plaintiff, it allowed the appeal because it took the view that the acquisition was not for a public purpose within the meaning of S. 6 of the Act as "the intention declared by the Government to pay the amount of subsidy to the Additional Special Land Acquision Officer in respect of the land under acquisition has been by necessary implication abandoned." The short question for consideration in this appeal is whether this finding has been arrived at according to the law.
5. We have gone through the pleadings of the parties and the points on which they were at issue in the trial Court. We find that while issue No. (3) raised the question whether the State Government had agreed to contribute towards the cost of acquisition and issue number (8) dealt with the question whether the acquisition was for a public purpose, a plea was not taken in the trial court that the defendant State abandoned its intention to pay a part of the compensation, to be awarded for the property wholly or partly out of public revenue. It was therefore not permissible for the High court to decide the controversy on a pleae which was not taken at all and which was not the subject-matter of any issue at the trial. There is nothing in the record to show that the parties knew that the question of abandonment of the original intention was a point for trial, or that they had any opportunity to lead their evidence in regard to it and availed of that opp
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