IMPORTANT POINT
Some profit motive could be involved in favour of a Joint Sector Company executing a housing scheme.

JUDGMENT

Harjit Singh Bedi, J.—

1. Leave granted.

2. This judgment will dispose of civil appeals arising out of judgment dated 2nd July, 2007 rendered by a Division Bench of the Calcutta High Court.

3. The facts are as under: Appellant Urmila Roy and others in W.P No.1002 (W) of 2002 were the writ petitioners before the Single Bench of the Calcutta High Court. As per the facts, 6.78 acres of land had been purchased by them avowedly for putting up an International School, a cultural centre, an I.T. Park and a Housing Complex and for this purpose they had been in negotiations with the West Bengal Housing Board (hereinafter referred to as “The Housing Board”). It appears, however, that before the project could be finalized, the State Government issued a Notification under Section 4(1) of the Land Acquisition Act, 1894 (hereinafter referred to as “the Act”) on 4th December, 2000 seeking to acquire in all 12.67 acres (including 6.78 acres belonging to the writ petitioners) for a housing scheme. The land owner appellants were allegedly given to understand by the Housing Board that in the event that they did not object to the acquisition, they too would be permitted to participate in the proposed project. It is the case of the land owners that on account of this assurance, they did not raise any serious objection to the acquisition, where after a declaration under Section 6 (1) of the Act dated 29th November, 2001 has issued and published in the Asian Age on 4th December, 2001. It is further the case of the land owners that they realized later that they had been cheated as the land had been acquired for the development and implementation of a housing scheme by the Housing Development Co. Ltd. (hereinafter referred to as “The Bengal Peerless”). The Collector subsequently i.e. on 22nd December, 2003 passed an Award determining the compensation payable and it is the case of the land owners that they first came to know of the award on receipt of a notice dated 16th February, 2004 whereby they were informed that as the ownership of the acquired land could not be ascertained, the compensation had been deposited with the Reference Court under Section 31(2) of the Act. The land owners thereupon filed Writ Petition No. 10051(W) of 2004 challenging the acquisition proceedings pleading inter-alia that the said proceedings had lapsed by efflux of time under Section 11-A of the Act as the declaration under Section 6 of the Act had been as published on 29th November, 2001 and the Award had been made on 22nd December, 2003. It was also pleaded that the declaration under Section 6(2) of the Act had not been published in the manner provided. It was further pleaded that the land had been acquired under the garb of a public purpose whereas it was intended to benefit the Bengal Peerless, a private party and an attempt had been made to camouflage the identity of the beneficiary as it had not been specified in the Notifications issued under Sections 4 and 6 of the Act and had been brought out for the first time in the Notification under Section 9 and in this view of the matter, the land owners had been deprived of their rights to file appropriate objections. Cumulatively, it was submitted that in view of the facts, the acquisition itself was a colourable exercise of power at the instance of the State.

4. These matters were considered by a learned Single Judge of the Culcutta High Court, who, by his Judgment dated 16th September, 2003 concluded that the Notifications under Sections 4 and 6 had been properly published as required by law, that the land had been acquired for a public purpose, as detailed in the Notification under Section 4 of the Act and that the State Government was authorized to entrust the housing project to a Joint Sector Company to execute the housing scheme with the sanction of the State Government under Section 27A of the West Bengal Housing Board Act, 1972 (hereinafter referred to as “the 1972 Act”). The Learned Judge, however, observ