Judgment

B. C. RAY, J.:- This civil appeal by special leave is directed against the judgment and order passed by High Court, Allahabad dismissing the writ petition filed by the Co-operative Housing Society formed as Kendriya Karamchari Sahkari Grih Nirman Samiti Ltd. and its President challenging the order of refusal of permission to the lay out plan submitted by them to the New Okhla Industrial Development Authority to be hereinafter referred in brief as NOIDA and also refusing to exempt the lands belonging to the Society falling within NOIDA Area from acquisition. The facts giving rise to this appeal are shortly as follows :-

The U. P. Industrial Area Development Act, 1976 was enacted with the object to provide for the constitution of an Authority for development of certain areas in the State into industrial and urban township. This Act came into operation from April 16, 1976. A notification No. 4157-HX/XVIII-II dated 17-4-1976 was published constituting under S. 3 of the said Act the "New Okhla Industrial Development Authority" and declared the industrial development area comprising of 37 villages mentioned in the schedule to be "New Okhla Industrial Development Area". In the said schedule item No. 16 referred to village Chhalera Bangar wherein the Societys lands are situated. S. 6(2) of the said Act empowers NOIDA to acquire land in the industrial development area either by agreement or through proceedings under the Land Acquisition Act, 1894. It also confers powers on the Authority to prepare a plan for the development of industrial development area and to lay down the purpose for which a particular site on plot of land shall be used namely for industrial, commercial or residential purpose or any other specified purpose in the area. S. 8 confers power on the Authority to issue directions in respect to matters specified therein for erection of building. The NOIDA made certain directions under the nomenclature of Building Bye-laws, 1977. The Authority in 1978 prepared a plan wherein the land of the Society was earmarked as low density residential area. The appellant society submitted an application on March 14, 1978 with plan for approval and permission to develop the land to NOIDA in accordance with the provisions of Building Bye-laws. The Society on June 14, 1978 has sent a letter to NOIDA intimating that no order was made in respect of the development plan submitted by them till that date and if no order is made by the Authority within a period of 20 days of this letter the Authority shall be deemed to have permitted the proposed work in accordance with Bye-law No. 8.2 framed by the Authority. On 12th June/3rd July, 1978 the respondent No. 1, the Chief Executive Officer, NOIDA intimated the appellant No. 2, President of the Society that permission has been refused for development of the land by the Society according to the plan submitted as it is the function of the Authority to prepare plan for development of its industrial development area to demarcate and develop sites for industrial, commercial and residential purposes according to the plan and to provide amenities for planned development of the area.

2. On 22-11-1978 NOIDA replied to the letter of the appellants dated 19-11-1978 stating that the entire land of the Society has not been acquired. The area falling within the urbanised limits is to be acquired to check the unauthorised development on either side of the DSC road and to have land for widening of the DSC. For these reasons, it is not possible to approve the lay out plan submitted by the appellant-society.

3. The appellants on April 28, 1979 filed a writ petition before the High Court, Allahabad assailing the refusal of permission as contained in letters dated 3-7-1978 and 22-11-1978 without recording proper and germane reasons and praying for a writ or order or direction quashing the said letters and for a suit-able writ or order or direction commanding the respondents not to acquire the lands belonging to the