JUDGMENT

GANGULY, J.

1. The appellants are the owners of the lands bearing Survey Nos. 1587 to 1596, 1597-A- Part, 1599 to 1601 of Ward No. 4 of Taluka Choryasi of the city of Surat in Gujarat.

2. On 22.08.1980, the Standing Committee of the Surat Municipal Corporation (hereinafter `SMC'), passed a resolution with a proposal to the State Government, under Section 78 of the Bombay Provincial Municipal Corporations Act, 1949 (hereinafter `BPMC Act'), for initiating land acquisition proceedings under the Land Acquisition Act, 1894, for acquiring the abovementioned land of the appellants. The said land, admeasuring 7168.09 sq. mts., was to be acquired for the setting up of a vegetable market. The said resolution was approved and the proposal was sanctioned by the State Government on 30.07.1981.

3. On 3.03.1986, the first Development Plan under the Gujarat Town Planning & Urban Development Act, 1976 (hereinafter the `Development Act') was under preparation for the Surat Urban Development Authority (hereinafter `SUDA'). During the pendency of the said plan, the State Government sanctioned the abovementioned proposal, and therefore the land in question was kept reserved for a vegetable market for SMC.

4. On 9.2.1990, a notification was issued under Section 4 of the Land Acquisition Act, 1894 for acquiring the lands of the appellants. The appellants, on 14.3.1990, filed their objections under Section 5A of the Land Acquisition Act. However the objections were overruled and then followed a notification under Section 6 of the said Act on 8.02.1991.

5. The appellants, on 16.3.1991, filed a special civil application (No. 3435/1991) before the Gujarat High Court, challenging the notifications under Sections 4 and 6 of the Land Acquisition Act.

6. In 1996-97, SUDA started revising the Development Plan, and in its revision the land was shown as reserved for the vegetable market of SMC.

7. On 17.05.2001, a notification was issued by the State Government under Section 17 of the Development Act, whereunder it was proposed to de-reserve the lands that had been reserved for the establishment of a vegetable market by SMC and place them in the residential zone. SMC objected to the said proposal of de-reservation on 13.07.2001.

8. The Gujarat High Court by the impugned judgment dismissed the special civil application (No.3435/1991) on 1.02.2002 and allowed the acquisition of the lands of the appellants for setting up a vegetable market.

9. In the impugned judgment the Hon'ble High Court, inter alia, held as follows:

a. A major part of the land in question was open land, the construction upon it was very old and hardly 1/10th of the land was occupied by structures.

b. The land was required for a public purpose in terms of Sections 78 of the BPMC Act, and 12 (2) (b) read with Section 20 of the Development Act.

c. The other markets, which the appellants claim as very closeby, were actually quite far away. SMC needs to provide a market close to the people so that they do not have to move far to purchase their daily necessities. A vegetable market is required to be near the people, especially in India, as in India people buy their fresh vegetables daily.

d. The notification dated 17.05.2001 made it clear that it was a draft development plan, and suggestions and objections were invited from persons for modification of the said Plan. Therefore, the notification dated 17.05.2001 was merely a proposal to modify the draft Development Plan and did not reflect a decision to de-reserve the lands of the appellants.

e. A reading of Section 63(12) read with Section 66(42) of the BPMC Act made it clear that there was an obligatory duty on SMC to construct and maintain a public market, for which it can take appropriate action as required under the Act. Further the scheme of the Act clearly indicated that SMC was competent to establish a market.

g. The appellants had raised a contention that SMC had no right to acquire the land and at most the State Government could ac