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1981 Supreme(SC) 56

SUPREME COURT OF INDIA
A.D. KOSHAL AND BAHARUL ISLAM, JJ.
State of Punjab and others, Appellants
Versus
Raja Ram and others, Respondents.
Civil Appeal No. 2063 of 1970, D/- 29-1-1981.

Headnote:

Land Acquisition Act - Section 3 (e) – Acquisition of land – Land Acquire for public purpose or for the purpose of a Company - sought to be acquired was not a Company within the meaning of S. 3 (e) of the Land Acquisition Act that the land had also not been acquired for a public purpose and that the State could acquire the land under that Act only for a public purpose or for the purpose of a Company - Nine Biswas of disputed land situated within the municipal area of Morinda in the District of Rupar was owned by respondent No. 1, Raja Ram, respondents Nos. 2 and 3 are Raja Rams sons - State of Punjab issued a notification dated December 17, 1968 under S. 4 read with S. 17 of Land Acquisition Act of 1894 (hereinafter called "the L. A. Act") - Notification related to 15 different plots of land including the land of the present acquisition proceedings - Material portion of notification is as follows - Whereas it appears to President of India that land is likely to be needed by Government, at public expense, for a public purpose, namely, for the construction of godowns for storage of foodgrains at Morinda, it is hereby notified that land in locality described below is likely to be required for above purpose - Held, Corporation is an agency or instrumentality of Central Government does not lead to further inference that Corporation is a Government department - Reason is that the F. C. Act has, given Corporation an individuality apart from that of Government - In any case Corporation cannot be divested of its character as a Company within the meaning of definition in clause (e) of S. 3 of L. A. Act, for it completely fulfils requirements of that clause, as held by us above - Corporation being a Company compliance with provisions of Chapter VII of the L. A. Act had to be made in order to, lawfully acquire any land for its purpose - It is not denied that such compliance is completely lacking in present case - Appeal dismissed.

Judgment

BAHARUL ISLAM, J.:- This appeal by the State of Punjab and two others, namely, the Collector, Rupar District and the Sub-Divisional Officer (Civil)-cum-Land Acquisition Collector, Rupar is on a certificate granted by a Division Bench of the High Court of Punjab and Haryana in respect of its judgment in a Letters Patent Appeal holding the acquisition of the land in question to be bad in law on the ground that the Food Corporation of India for which the Land in question was sought to be acquired was not a Company within the meaning of S. 3 (e) of the Land Acquisition Act that the land had also not been acquired for a public purpose and that the State could acquire the land under that Act only for a public purpose or for the purpose of a Company.

2. The material facts of the case may be stated thus. Nine Biswas of the disputed land situated within the municipal area of Morinda in the District of Rupar was owned by respondent No. 1, Raja Ram, respondents Nos. 2 and 3 are Raja Rams sons. The State of Punjab issued a notification dated December 17, 1968 under S. 4 read with S. 17 of the Land Acquisition Act of 1894 (hereinafter called "the L. A. Act"). The notification related to 15 different plots of land including the land of the present acquisition proceedings. The material portion of the notification is as follows :

"Whereas it appears to the President of India that the land is likely to be needed by Government, at public expense, for a public purpose, namely, for the construction of godowns for storage of foodgrains at Morinda, it is hereby notified that the land in the locality described below is likely to be required for the above purpose ..............

"Further in exercise of the powers conferred by the said Act, the President of India is pleased to direct that the action under Section 17 shall be taken in this case on the grounds of urgency and provisions of Section 5 (A) shall not apply in regard to this acquisition."

On the same day another notification under Ss. 6 and 7 read with S. 17 (2) (c) of the L. A Act was issued. The Material portion of this notification rum thus :

"Whereas the President of India is satisfied that the specified below is needed by Government at the public expense for a public purpose namely for the construction of godowns for storage of foodgrains at Morinda, it is hereby declared that the land described in the specification below is required for the aforesaid purpose. This declaration is made under the provision of Sec- 6 of the Land Acquisition Act, 1894 .........."

3. Against the aforesaid notifications a writ petition was filed by respondents Nos. 1 to 3. The writ petition was heard by a single Judge of the High Court and was dismissed. The learned single Judge inter alia, found that the provisions of Part VII of the L. A. Act relating to the acquisition of land for Companies were not applicable to the present case as the Food Corporation of India (hereinafter called the Corporation) was a department of Government and not a Company within the meaning of S. 3 (e) of the L. A. Act although, undoubtedly, according to the learned Judge, there was no manner of doubt about the fact that the land in dispute was in fact being acquired for the Corporation and that the purpose for which the land had been acquired was a public purpose.

Against the aforesaid Order of the learned single Judge a Letters Patent Appeal, being L.P.A. No. 1283 of 1969 was filed by respondents Nos. 1 to 3 before the Division Bench, that allowed the appeal and quashed the land acquisition proceedings as stated earlier.

4. With respect we find it difficult to agree with the learned Division Bench when it held that the Corporation was not a "Company" within the meaning of S. 3 (e) of the L. A. Act which runs thus ;

"3. In this Act unless there is something repugnant in the subject or context -

..............

(e) the expression "Company" means a Company registered under the Indian Companies Act 1882 or under the (English) Companies Act












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