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2013 Supreme(SC) 146

SUPREME COURT OF INDIA
B.S. CHAUHAN, V. GOPALA GOWDA, JJ.
The Rajasthan State Industrial Development and Investment Corporation – Appellant
Versus
Subhash Sindhi Cooperative Housing Society Jaipur & Others – Respondents
Civil Appeal No. 7254 of 2003 With Civil Appeal No. 853 of 2013
Decided on : 12-02-2013

Agreement to sale - whether creates any rights.
Sale deed after notification u/s 4, L. A. Act, 1894 - legal position.
Belated challenge to land acquisition proceedings - effect.
Article 226 - scope.

Headnote:(a) Land Acquisition Act, 1894 - Section 4 - Acquisition cannot be challenged belatedly. (Para 6)

        (b) Land Acquisition Act, 1894 - Section 4 - Sale or agreement to sale subsequent to notification u/s 4 - Void qua Government - Such buyer or prospective buyer can only claim compensation. (Para 7)

        (1995) 2 SCC 528; AIR 1996 SC 520; (1996) 11 SCC 229; (1997) 1 SCC 35; (2008) 9 SCC 177; (2010) 13 SCC 128; JT 2012 (9) SC 260 - Relied upon

        (c) Words and Phrases - Void - Used in the sense of incapable of ratification - A thing which is found non-est and not required to be set aside - Nullity is automatic - Continuation orders would be nullities too. (Para 11)

        AIR 1968 SC 261; AIR 1996 SC 906; AIR 1955 SC 123; AIR 2000 SC 1953; AIR 2001 SC 2552; (2002) 9 SCC 28 - Relied upon

        (d) Land Acquisition Act, 1894 - Section 4 - Court giving liberty to approach proper forum for release of suit land if done to similarly situated persons - Locus standi - Similarly situated - Society has to satisfy the discrimination. (Paras 12 and 16)

        AIR 1996 SC 540; AIR 2003 SC 1241; AIR 2011 SC 3667; (2012) 7 SCC 433; (2010) 7 SCC 129; AIR 2011 SC 1989 - Relied upon

        (e) Constitution of India - Article 226 - Writ jurisdiction - Cannot be invoked to create right - It is invoked to enforce pre-existing right. (Para 17)

        AIR 1952 SC 16; AIR 1969 SC 1306; (2010) 15 SCC 546; AIR 2011 SC 2731; (2012) 7 SCC 261; AIR 2012 SC 1890 - Relied upon

        (f) Constitution of India - Article 226 - Executive instruction contrary to statutory provisions cannot be enforced. (Para 19)

        AIR 1966 SC 1942; AIR 1967 SC 1910; AIR 2006 SC 1806; (2007) 5 SCC 524 - Relied upon

        (g) Constitution of India - Article 226 - Statutory authority not deciding any representation - Court can direct action within stipulated time - But cannot pass order in place of the authority. (Para 20)

        AIR 1952 SC 192; AIR 1994 SC 2148; AIR 2010 SC 2620; JT 2011 (12) SC 41 - Relied upon

        (h) Land Acquisition Act, 1894 - Section 48 - Exemption from acquisition - Notification before taking over possession mandatory - Such release of land must not hinder the purpose for which acquisition made - Society made application after acquisition - Acquisition made for industrial purpose but society wanting suit land for housing. (Para 22)

        1992 Suppl (2) SCC 136; (2001) 7 SCC 545; (2005) 10 SCC 162; (2009) 2 SCC 397 - Relied upon

        (i) Estoppel - There cannot be any estoppels against the law or public policy - Offer or concession made by public bodies - Withdrawal in public interest - Permissible. (Para 23)

        AIR 1955 SC 817; AIR 1959 SC 559; AIR 1962 SC 554; AIR 1925 PC 83; AIR 1949 PC 297 - Relied upon

        (j) Constitution of India - Article 226 - Writ - Maintainability - Jurisdiction - Suit land situated in Jaipur - All relevant orders issued at Jaipur - Writ filed before Jodhpur Bench - Bona fides of parties doubtful -Writ not maintainable. (Para 31)

        AIR 1976 SC 331; AIR 1995 SC 2148 ; AIR 2001 SC 416; (2005) 1 SCC 73 - Relied upon

        (k) Administrative Law - Authorities labeling the sale deeds registered after notification u/s 4 as void - Still issuing circulars for regularisation - Maladministration - Court expressing its anguish. (Para 32)

        AIR 1958 SC 956; AIR 1988 SC 305; (2010) 8 SCC 49; JT 2013 (1) SC 276 - Relied upon

       Facts of the case:

        1. A large area including the suit lands were acquired for industrial development. However the Cooperative society had entered into an agreement to sale with the khatedars of the suit lands after notification u/s 4 but before declaration u/s 6. The lands were acquired and handed over to RIICO.

        2. Writ petition challenging the acquisition was dismissed by High Court. SLP thereagainst was dismissed but certain liberty was given.

        3. Accordingly, another writ petition was filed. Allowing the same, High Court ordered release of the suit lands to the society.

       Finding of the Court:

        Impugned order is not sustainable.

       Result : Appeals allowed.

       

JUDGMENT :-

Dr. B.S. Chauhan, J.

1. These appeals have been preferred against the impugned judgment and order dated 30.7.2002 passed by the High Court of Rajasthan (Jaipur Bench) in Civil Writ Petition No. 454 of 1993, by which the High Court has issued directions to the Rajasthan State Industrial Development and Investment Corporation (in short `RIICO’), the appellant herein, to release the land in dispute from land acquisition in favour of respondent No.1 - housing society (hereinafter referred to as `the society’).

2. As both the appeals have been preferred against the common impugned judgment, for convenience, Civil Appeal No. 7254 of 2003 is taken to be the leading case. The facts and circumstances giving rise to this appeal are :

A. That, a huge area of land admeasuring 607 Bighas and 5 Biswas situate in the revenue estate of villages Durgapura, Jhalan Chod, Sanganer and Dhol-ka-Bad in District Jaipur, including the suit land measuring about 17 Bighas and 9 Biswas in village Durgapura stood notified under Section 4(1) of the Rajasthan Land Acquisition Act, 1953 (hereinafter referred to as the `Act’) on 18.7.1979, for a public purpose i.e. industrial development, to be executed by the RIICO.

B. The respondent society claims to have entered into an agreement to sell with the Khatedars of the suit land on 21.7.1981.

C. Declaration under Section 6 of the Act was made on 22.6.1982 for the land admeasuring 591 Bighas and 17 Biswas. After meeting all requisite statutory requirements contained in the Act, possession of the land, including the land in dispute was taken by the Government and was subsequently handed over to RIICO, on 18.10.1982 and 17.11.1983. The Land Acquisition Collector assessed the market value of the land of the Khatedars, and made an award on 14.5.1984. Vide allotment letter dated 10.3.1988, RIICO, made allotment of land admeasuring 105 acres of the land, out of the total acquired land measuring 591 Bighas, to Diamond & Gem Development Corporation Ltd., a Private Ltd. Company (hereinafter referred to as the ‘Company’), respondent no. 37, to facilitate the establishment of a Gem Industrial Estate for the manufacturing of Gem stones. This piece of land included within it, the land which was subject matter of an agreement to sell between the respondent society and the original khatedars.

D. Acquisition proceedings emanating from the Section 4 Notification dated 18.7.1979, were challenged by the respondent society, as well as by the khatedars jointly in 1989, by filing of Writ Petitions before the High Court of Rajasthan at Jodhpur. A lease deed was executed by appellant-RIICO in favour of the company- respondent No.37 in relation to 105 acres of land on 22.5.1989, including the land in question, which is comprised of Khasra Nos. 226 to 230 is village Durgapura. The aforementioned writ petitions filed by the respondent society and the original khatedars, challenging the land acquisition proceedings stood dismissed on the ground of delay and latches, vide judgment and order dated 21.8.1990 passed by the High Court.

E. Aggrieved, the respondent society and one khatedar filed SLPs before this Court challenging the judgment and order dated 21.8.1990. This Court vide order dated 9.9.1992 dismissed the said SLPs, however, while doing so, the Court made an observation that the dismissal of the said SLPs, would not operate as res-judicata if the society approaches the court for release of their land on the ground that lands owned by similar set of individuals or institutions, if any, has been released from acquisition. Such a direction was issued in view of the submissions made by the respondent society, stating that allotment of the said land in favour of the Company had been made fraudulently.

F. In view thereof, the society filed a Writ Petition No. 454 of 1993 praying for release of the land admeasuring 17 Bighas and 9 Biswas in Khasra Nos. 226 to 230, in revenue estate of village Durgapura or in the alternative, for the all

























































































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