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2011 Supreme(SC) 42

2011 (1) Supreme 234
SUPREME COURT OF INDIA
S.H. Kapadia, CJI., Dr. Mukundakam Sharma, K.S. Panicker Radhakrishnan, Swatanter Kumar and Anil R. Dave, JJ.
Girnar Traders — Appellant
versus
State of Maharashtra & Ors. — Respondents
Civil Appeal No. 3703 of 2003
with
Digambar Motiram Jhadhav — Appellant
versus
The Commissioner & Ors. — Respondents
Civil Appeal No. 292 of 2011
(Arising out of SLP (C) No.9734 Of 2005)
Decided on : 11-1-2011

Advocates:
Advocate Appeared:
Arvind Savant, Pallav Shishodia, Altaf Ahmad, Sf. Advs., A. P. Mayee, P. V. Yogeswaran, Charudatta Mahindrakar, Ejaz Maqbool, Sanjay V. Kharde, Chinmoy A. Khaladkar, Sachin J. Patil, Ms. Asha G. Nair, Shivaji M. Jadhav, Bhargava V. Desai, Rahul Gupta, Nikhil Sharma, S. K. Bhattacharya, A. S. Bhasme, Brajesh Pande, Shailendra Kumar Mishra, V. N. Raghupathy, S. K. Kulkarni, Ankur S. Kulkarni, Jitedra Mohan Sharma, Vinay Navare, Keshav Ranjan, Ms. Abha R. Sharma, S.U. K. Sagar (for M/s. Lawyer’s Lnit & Co.), Prakash Ahuja, Jitendra Kumar, Shiv Kumar Suri, Ms. J. Rahman, Rajesh Kumar, S. C. Birla, Subhash Chandra Birla, R. K. Adsure, Satyajit A. Desai, Ms. Anagha S. Desai, Advs., with them for the appearing parties.

IMPORTANT POINT
Maharashtra Regional and Town Planning Act, 1966 is a self contained code.

Headnote:(a) Constitution of India – Article 245 – Distribution of powers – Constitutionality of a law becomes essentially a question of power which, in a federal constitution, turns upon the construction of the entries in the legislative lists. (Para 3)

        (b) Constitution of India – Separation of Powers – Legislation – ‘Legislation by reference’ and ‘Legislation by incorporation’ – Where certain provisions from an existing Act have been incorporated into a subsequent Act, no addition to the former Act, which is not expressly made applicable to the subsequent Act, can be deemed to be incorporated in it, at all events, if it is possible for the subsequent Act to function effectually without the addition – In a case of legislation by incorporation, subsequent amendment or repeal of the provisions of an earlier Act adopted cannot be deemed to have been incorporated in the adopting Act which may be true in the case of legislation by reference. (Para 3)

        (c) Maharashtra Regional and Town Planning Act, 1966 – Section 126(2) r/w section 11, Land Acquisition Act, 1894 – Lapsing provision in Section 127 amended to alleviate hardship to land owners pertaining to indefinite waiting for release of lands because of inaction on part of Planning authorities in acquisition but restricted only to sections 126(2) and 126(4) – Therefore it will be impermissible to read section 11A of the Land Acquisition Act into section 126(2). (Para 20)

        (d) Maharashtra Regional and Town Planning Act, 1966 – Section 128 – Providing for powers to State Government to acquire land for purposes other than the one for which it is designated in any plan or scheme – Provision distinct and different from provisions in Land Acquisition Act. (Para 20)

        (e) Maharashtra Regional and Town Planning Act, 1966 – Sections 72 to 74, 113, 116, 117 and 126 to 129 – These provisions make MRTP Act a self contained code – Provisions of Land Acquisition Act not applicable – Provisions of Sections 9 to 11 of Land Acquisition Act brought into MRTP Act for limited purpose of acquiring land – State Act is hardly dependent upon the Land Acquisition Act except to the limited extent of completing the process of determining compensation – Similarly, Land Acquisition Act is a complete code in itself for the purpose of land acquisition. (Paras 21 and 25)

        (f) Interpretation of statutes – Maharashtra Regional and Town Planning Act, 1966 and Land Acquisition Act, 1894 – The schemes under the two Acts are distinct and different – However, provisions of the Land Acquisition Act for which there are no specific provisions under the State Act, would be applicable to the acquisition under the State Act. (Para 27)

        (g) Interpretation of Statutes – Provision of self-contained adjudicatory mechanism and the remedy of appeal makes the Act a self contained code. (Para 28)

        (h) Words ad Phrases – Complete Code – Not defined precisely – Provisions must comprehensively deal with various aspects of the purpose sought to be achieved – Dependence on other legislations either absent or at best minimal – Should provide for a complete machinery to deal with various problems that may arise during its execution Authorities/ Fora vested with sufficient powers to ensure effectual and complete implementation of the Act – In other words, the Act in itself should be a panacea to all facets arising from the implementation of the Act itself. (Para 35)

        (i) Interpretation of statutes – MRTP Act – MRTP Act is an Act completely providing for various steps in relation to execution of its object, constitution of various authorities to implement the underlying scheme of planned development, machinery for interested persons to raise their claims for adjudication under the provisions of this Act or at best to an authority referred to in the Act – It is a complete code in itself. (Para 39)

        (j) Interpretation of statutes – MRTP Act is a self contained code and MTP Act and Land Acquisition Act can co-exist and operate without conflict – Application of either of the doctrines of ‘legislation by reference’ or ‘legislation by incorporation’, would lose their significance. (Para 39)

        (k) Interpretation of statutes – ‘Legislation by reference’ or ‘Legislation by incorporation’ – Distinction and ambit discussed. (Paras 41 to 42)

        (l) Interpretation of statutes – Legislation by incorporation – No general reference to the Land Acquisition Act in any of the provisions of the MRTP Act – MRTP Act contains only specific reference to particular provisions of Land Acquisition Act for particular purpose – Therefore it is legislation by incorporation. (Para 47)

        (m) Interpretation of Statutes – Harmonious application – ‘Resignation and Designation of land’ and ‘acquisition of land’ are well defined and do not admit any synonymity or interchangeability – Reservation under MRTP Act may not mean and include acquisition – Acquisition under LA Act may not mean and include reservation – By issue of notification u/s 126(2) of MRTP Act in terms of section 6 of LA Act mechanism therein would be read into MRTP Act – There is a complete and comprehensive scheme on harmonious application of both the Acts when specific provisions of the Central Act, as contemplated under the State Act, alone are read into the State Act. (Paras 70 to 74)

        (n) Interpretation of Statutes – Doctrine of pith and substance and doctrine of incidental encroachment – Applicable to statutory interpretation on source of legislation – Questions to be determined not by degree but by substance – Extent of harmonious application should be considered to achieve legislative intent – a (Paras 75, 76)

        (o) Interpretation of statutes – Maxim ut res magis valeat quam pereat – If in pith and substance, an Act is a law on a permitted field then any incidental encroachment, even on a forbidden field, does not affect the competence of the legislature to enact that law – Courts normally would make every effort to save the legislation and resolve the conflict/repugnancy, if any, rather than invalidating the statute. (Para 77)

       Facts of the case:

        This is a reference to examine whether the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act) is a self-contained Code or not, if so, to what effect? Further, whether, in any event, all the provisions of the Land Acquisition Act, 1894 as amended by Central Act 68 of 1984 with emphasis on Section 11A can be read into the provisions of the MRTP Act?

       Finding of the Court:

        Provisions introduced in the Land Acquisition Act, 1894 by Central Act 68 of 1984, limited to the extent of acquisition of land, payment of compensation and recourse to legal remedies provided under the said Act, can be read into an acquisition controlled by the provisions of Chapter VII of the MRTP Act but with a specific exception that the provisions of the Land Acquisition Act in so far as they provide different time frames and consequences of default thereof including lapsing of acquisition proceedings cannot be read into the MRTP Act. Section 11A of the Land Acquisition Act being one of such provisions cannot be applied to the acquisitions under Chapter VII of the MRTP Act.”

       Result : Reference answered. MRTP Act is a self contained code.

       

Judgement Key Points

Key Points: - The MRTP Act is held to be a self-contained code for planning and development, with acquisition as a limited adjunct (!) (!) (!) . - The amendments introduced by Central Act 68 of 1984 (notably Section 11A) can be read into MRTP Act acquisitions only to the extent not precluded by the MRTP Act’s scheme; specific exceptions prohibit wholesale incorporation of time limits and lapsing provisions (e.g., Section 11A cannot be read into MRTP Chapter VII) (!) (!) (!) . - The Court adopts a nuanced approach to referential doctrines, concluding that MRTP Act uses legislation by incorporation for specific provisions and excludes general application of Section 11A; the preservation of MRTP’s object of planned development is prioritized (!) (!) (!) (!) . - The decision emphasizes harmonious application (pith and substance, incidental encroachment) to allow limited cross-application of LA Act provisions for compensation and certain procedural aspects while safeguarding MRTP’s timetable and scheme (!) (!) (!) . - The 2009 amendment to Section 127 deleted general reference to the LA Act, strengthening the view of MRTP as a self-contained code with limited incorporation of LA Act provisions (!) (!) . - The judgment references multiple earlier cases (Sant Joginder Singh, Nagpur Improvement Trust, U.P. Avas Evam Vikas Parishad) to frame the doctrine and exceptions for incorporation vs. reference and the need to avoid discrimination and unworkability (!) (!) (!) (!) (!) . - The ultimate holding: MRTP Act is a self-contained code; Section 11A cannot be read into MRTP Act acquisitions, though limited provisions of the LA Act can apply in a harmonized manner for compensation and related aspects (!) .

Question 1?

What is the status of the MRTP Act as a self-contained code in relation to the Land Acquisition Act?

Question 2?

What are the permissible ways to read amendments to the Land Acquisition Act into MRTP Act acquisitions (legislation by incorporation vs. reference) and their limitations?

Question 3?

What is the court’s ruling on applying Section 11A of the Land Acquisition Act to acquisitions under Chapter VII of the MRTP Act?


JUDGMENT

Swatanter Kumar, J. —

Leave granted in SLP (C) No. 9734 of 2005.

2. IA Nos.4 and 5 of 2009 in Civil Appeal No.3703 of 2003 are allowed subject to just exceptions and limited to this reference.

3. Legalistic federalism was introduced as a technique of governance with the people of India adopting, enacting and giving unto themselves the Constitution of India on 26th November, 1949. The legislative competence of the Central and State Legislatures has been demarcated by the Constitution under Article 246, with the fields for exercise of legislative power enumerated in List I (Central List), List II (State List) and List III (Concurrent List) of Schedule VII to the Constitution of India. Power to enact laws, thus, is vested in the Parliament as well as in the State Legislative Assemblies within their respective spheres. This is the paramount source for enactment of law, i.e., direct exercise of legislative power by the respective constituents. On the issue of distribution of powers between the Centre and the State, a Constitution Bench of this Court in Federation of Hotel & Restaurant Association of India v. Union of India 1[(1989) 3 SCC 634], noticed that the constitutionality of a law becomes essentially a question of power which, in a federal constitution, turns upon the construction of the entries in the legislative lists. Interpretative process, as a tool of interpretation, introduced new dimensions to the expansion of law enacted by Legislature, through Judge made law. Amongst others, doctrines of ‘legislation by reference’ and ‘legislation by incorporation’ are the creation of judicial pronouncements. One of the earliest instances, where the Privy Council, then responsible for Indian Judicial system, accepted the plea of ‘legislation by incorporation’ and interpreted the statute accordingly in the case of Secretary of State for India in Council v. Hindusthan Co-operative Insurance Society Ltd.2 [AIR 1931 PC 149]. This judicial pronouncement was followed in different subsequent judgments and these doctrines were analyzed in greater depth for bringing out the distinction between them. The judgment of the Privy Council was referred with approval by this Court in different judgments including Municipal Commissioner of Howrah v. Shalimar Wood Products3 [(1963) 1 SCR 47]; Bolani Ores Ltd. v. State of Orissa4 [(1974) 2 SCC 777]; Mahindra & Mahindra v. Union of India5 [(1979) 2 SCC 529]; Ujagar Prints v. Union of India6 [(1989) 3 SCC 488]; U.P. Avas Evam Vikas Parishad v. Jainul Islam7 [(1998) 2 SCC 467]; Nagpur Improvement Trust v. Vasant Rao8 [(2002) 7 SCC 657] and Maharashtra State Road Transport Corporation v. State of Maharashtra9 [(2003) 4 SCC 200]. The principle that was enunciated by the Privy Council in the case of Hindusthan Co-operative Insurance Society Ltd. (supra) stated, “where certain provisions from an existing Act have been incorporated into a subsequent Act, no addition to the former Act, which is not expressly made applicable to the subsequent Act, can be deemed to be incorporated in it, at all events, if it is possible for the subsequent to function effectually without the addition”. Though this principle has been reiterated from time to time; with the development of law, still certain doubts were reflected in the judicial pronouncements of the courts as to the application of this principle as an absolute proposition of law. On the contrary, this principle received criticism from various quarters. The critics said that it was causing impediments in smooth operation of the later law as well as abdication of legislative power by the concerned legislative constituent. Another criticism and argument which, in fact, was even advanced before us is that while approving the principle stated by the Privy Council, the subsequent Benches have not taken into consideration the impact of the judgment of the Constitution Bench of this Court in B. Shama Rao v. Union Territory of Pondicherry10 [(1967) 2 SCR 650]. A per



































































































































































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