JUDGMENT

M.Srinivasan, J.

(1) THERE are three sets of appeals. Civil Nos. 6986-87 of 1994 are filed by Tulsi Co-operative Housing Society, Hyderabad (hereinafter referred-to as the Society). Civil Nos. 6988- 6991 of 1994 are by the State of Andhra Pradesh (hereinafter referred to as the Government). Civil Nos. 6992-6993 of 1994 are by Syed Azam (hereinafter referred to as the landowner).

(2) THE Society entered into an agreement in April 1975 with the land owner for purchase of an extent of 24 acres of land and paid in advance a sum of Rs. 20,000.00. In June 1975, the Govt. issued a Notification under Section 4(1 of the Land Acquisition Act (hereinafter referred to as Acquisition Act) for acquiring an extent of 18.03 acres out of the subject-matter of these proceedings for purposes of Housing Project under HUDCO Scheme. The Notification included an extent of 2 acres belonging to another person with which we are not concerned. The government also invoked urgency clause under Section 17(4 of the Acquisition Act and dispensed with enquiry under Section 5A of the said Act. The acquisition proceedings were at the instance of Municipal Corporation of Hyderabad. The Urban Land (Ceiling & Regulations) Act, 1976 (hereinafter referred to as the Ceiling Act) came into force on 17/2/1976. The land owner and the Society filed an application in May 1976 for grant of exemption from the provisions of the Ceiling 75 Act under Section 20(l)(b) of the said Act. It was followed by a similar application in June 1977. In April 1978 the government issued a Notification under Section 6 of the Acquisition Act. In October 1978 the 20 applications for exemption filed under the Ceiling Act were rejected. Towards the end of August 1979 further proceedings under Section 9 of the Acquisition Act were taken by the government. Meanwhile, a fresh 25 application for exemption under the Ceiling Act was filed in December 1978. That was partly granted by the government to the extent of 14000 sq. mtrs. of land. Another application was filed in May 1980 for grant 30 of exemption of all the lands from the provisions of the Ceiling Act. That was granted in September 1980 in GOMS No. 4093.

(3) THE Notifications under the 35 Acquisition Act were challenged in two writ petitions - one by the Society and the other by the land owneR.By interim orders passed by the High court, further proceedings were stated. However, on 28/1/1982 both the writ 40 petitions were dismissed. Two appeals were filed. The miscellaneous petition for stay of further proceedings in acquisition pending the appeals was dismissed by division bench on 4.2.82. The government took possession of 45 the lands on 12/2/1982.

(4) IT should be mentioned here that the proceedings under the Acquisition Act were for the benefit of Bagh Amverpet Welfare Society (hereinafter to be referred to as BAW Society). The said BAW Society got impleaded as party in the writ petitions in which the acquisition proceedings were challenged. The writ appeals were referred to a full bench which allowed the same by judgment dated 2.8.83. The acquisition proceedings were quashed. Aggrieved by the said judgment BAW Society obtained Special Leave and filed Civil Nos. 5784-85 of 1983.

(5) IN June, 1983 the government cancelled the exemption granted under the Ceiling Act by GOMS No. 5964. The landowner and the Society filed writ petitions 5498 and 6500 of 1983.

(6) THE Civils filed by BAW Society came up for hearing on 7.8.85 and the following order was passed:

"MR.P.P. Rao commenced his arguments at 12.45 P.M. and argued till 1.00 P.M. Thereafter court asked MR.Divan to raise preliminary objections and Shri Divan argued from 2.00 P.M. to 2.25 P.M. Thereafter MR.P.P. Rao resumed his arguments. After hearing him for a shortwhile the Court adjourned the matter to 16.8.85 in order to enable the parties to explore the possibility of a settlement on the basis that a part of the lan