2007 Supreme(SC) 923

2007(4) Supreme 793
SUPREME COURT OF INDIA
(From Punjab and Haryana High Court)
B.P. Singh & Altamas Kabir, JJ.
State of Punjab and others — Petitioners
versus
Sanjeet Singh Grewal and others — Respondents
Appeal (civil) 5721-5725 of 2001
With
Civil Appeal Nos. 5721-5725 of 2001
State of Punjab and others — Appellants
versus
Sanjeet Singh Grewal and others — Respondents
With
Civil Appeal Nos. 5727-5731 of 2001
New Town Planning and Development Authority for Anandgarh through Chief Administrator — Appellant
versus
The Securities and Exchange Board of India and others — Respondents
And
(Special Leave Petition (C) No. 7946 of 2002)
State of Punjab and others — Petitioners
versus
Jasmer Singh and others — Respondents
Decided on : 03-07-2007

IMPORTANT POINT
The Punjab Regional and Town Planning and Development Board, a statutory authority, cannot be ignored by the State Government altogether.
While the Board cannot delegate determination of a site for new town to the planning agencies.
It may be that the State Government in its anxiety to set up the new town of Anandgarh acted with haste and in the process lost sight of some of the mandatory provisions of the Act of 1995. That however, does not justify the conclusion that the State had acted mala fide.

Headnote:a)Punjab Regional and Town Planning and Development Act, 1995 – Section 14 – Functions of the Punjab Regional and Town Planning and Development Board shall be to advise the State Government and to guide and direct the planning agencies and to perform such other functions as the State Government, from time to time, assign to it – This, however, should not lead to the conclusion that the Board, a statutory authority, can be ignored by the State Government altogether – The Legislature having enacted a statute and expressly provided a procedure for declaration of a planning area, the State could not have adopted a different procedure in breach of express provisions, completely ignoring the existence of the Board, the apex authority under the Act, and obliterating the provision for public participation in the matter of declaring a planning area. (Paras 19 and 39)

       b)Punjab Regional and Town Planning and Development Act, 1995 – Section 14 – While the Board may under Clause (b) direct the other planning agencies to prepare the Regional Plans or Master Plans; determination of a site for new town cannot be delegated by the Board to the planning agencies. (Para 19)

       c)Punjab Regional and Town Planning and Development Act, 1995 –Sections 56 and 57–It is the Board which has to specify an area as a regional planning area, a local planning area or a site for a new town clearly defining the limits of the area– This function has to be performed only by the Board and that too after entertaining objections and suggestions and considering them in accordance with the Act and the Rules– The planning agency itself cannot select the site for a new town. (Para 21)

       d)Punjab Regional and Town Planning and Development Act, 1995 – Section 32 – Section 32 entrusts the New Town Planning and Development Authority with the duty to plan and develop the site of a new town, pre-supposing the existence of a selected site – Neither the PUDA nor the authority constituted under Section 17 nor the New Town Planning and Development Authority constituted under Section 31 is vested with the power to declare a planning area such as a site of a new town. (Para 27)

       e)Punjab Regional and Town Planning and Development Act, 1995 – Sections 31 and 42 – Since the acquisition in question was for planning and development of a planning area under the Act of 1955 on the recommendations of an Authority constituted u/s 31 of the Act invoking the acquisition provisions u/s 42; provisions of the Act of 1995 are clearly attracted. (Para 28)

       f)Punjab Regional and Town Planning and Development Act, 1995 – Section 14 – Under sub-section (2) of Section 14 of the Act, if required by the State Government the Board is bound to select a site for a new town but the State never called upon the Board to select a site, and instead a New Town Planning and Development Authority was constituted under Section 31 of the Act which arrogated to itself the powers and functions of the Board to select a site and make a recommendation to the State Government – Such recommendations are void. (Paras 31 and 38)

       g)Punjab Regional and Town Planning and Development Act, 1995 – Section 42 – State Government can proceed to acquire land under the provision of the Act only at the request of the authority, that too for the purposes of the authority under the Act. – The section does not empower the State to acquire land on its own satisfaction for the purposes of any other scheme under the Act. (Para 32)

       (1993) 2 SCC 662; (1996) 3 SCC 1; (1997) 3 SCC 522; (1996) 10 SCC 721 – Distinguished.

       h)Punjab Regional and Town Planning and Development Act, 1995 – Section 56 – Without declaring the planning area by Notification in the Official Gazette, and without following the prescribed procedure which included consideration of objections and suggestions from the public apart from Government departments, authorities and institutions, the authority constituted under Section 31 unauthorizedly selected a site for a new town and made its recommendation to the Government for its approval, and moved the Government for acquisition of land under Section 42 of the Act – All these actions were in complete breach of the mandatory provisions of Section 56 of the Act, and therefore void. (Para 38)

       i)Constitution of India – Article 226 – If the State Government in its anxiety to set up the new town of Anandgarh acted with haste and in the process lost sight of some of the mandatory provisions of the Act of 1995, that should not lead to the conclusion that the State had acted mala fide. (Para 44)

       Facts of the case :

       The State of Punjab issued Notifications under Section 4 of the Land Acquisition Act, 1894 for acquisition of about 9354 acres of land in 29 villages of the district of Ropar. The acquisition was proposed to be made for “a public purpose namely for setting up of new town, Anandgarh”. Objections were raised alleging that the Notifications had been issued in derogation of the provisions of the Punjab Regional and Town Planning and Development Act, 1995. It was stated that to set up a new town, the site had first to be selected by the Board constituted under the Act of 1995. The Board was thereafter required to designate a planning agency. This was not done. The provisions of Sections 56, 57, 58 and 59 of the Act of 1995 were completely ignored. Though the New Town Planning and Development Authority for Anandgarh was constituted by the Government on May 20, 1999 under Section 31 of the Act of 1995, in the absence of a decision of the Board under Sections 56 and 57 of the Act of 1995, the aforesaid Special Town Planning Authority for Anandgarh could not take up the planning and development of the new township. It was alleged that a large number of influential persons including senior bureaucrats had bought land in the area with a view to earn profit since the Government had announced compensation at an exorbitant rate. It was also submitted that the provisions of the Punjab New Capital (Periphery) Control Act, 1952 and the rules framed thereunder have been violated. It was also urged that the site was not suitable for a new town.

       Findings of the Court :

       The declaration of the planning area, a site for a new town, was never validly made by the competent authority after following the prescribed procedure and, therefore, there was in law no validly selected site for a new town, nor a validly declared planning area. Consequently, there was no justification for acquisition of land to set up a new town. The public purpose stated in the impugned Notifications was non-existent in view of the fact that there was no planning area validly declared by the competent authority for the development of which any land was required.