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2017 Supreme(SC) 938

SUPREME COURT OF INDIA
ARUN MISHRA, MOHAN M. SHANTANAGOUDAR, JJ.
STATE OF MAHARASHTRA & OTHERS – APPELLANTS
VERSUS
RELIANCE INDUSTRIES LTD. & OTHERS – RESPONDENTS
CIVIL APPEAL NO. 1699 OF 2007
Decided On : 15-09-2017

Advocates Appeared:
For the Appellants: Nishant Ramakantrao Katneshwarkar, Adv.
For the Respondents: Ashok Mathur, Rajesh Kumar, Adv.

The acquisition of part of the building without acquiring the land was legal and valid. The petitioners were not entitled to compensation for the entire building, including the land, because they did not own the land. The petitioners were only entitled to compensation for the part of the building that they owned.

Headnote:

[KEYWORD] - Land Acquisition Act, 1894 - Acquisition of part of building without acquiring land - Acquisition of part of house or building - Dual ownership - Acquisition of entire interest in part of building - Valuation method of building - Violation of Article 300A of the Constitution of India.

Fact of the Case:

In two writ petitions, the petitioners challenged the acquisition of part of their buildings under the Land Acquisition Act, 1894 (the Act). In both cases, the owners of the buildings did not own the land on which the buildings were built. In the first case, the premises were leased from the Government and in the second case, the land belonged to the Port Trust. The petitioners argued that the acquisition of part of the building without acquiring the land was illegal and that they were entitled to compensation for the entire building, including the land. The High Court quashed the acquisition, holding that the acquisition of part of the building without acquiring the land was unsustainable.

Finding of the Court:

The Supreme Court held that the acquisition of part of the building without acquiring the land was legal and valid. The Court held that the definition of 'land' in the Act includes benefits arising out of land and things attached to the earth or permanently fastened to anything attached to the earth. The Court held that the building was a benefit arising out of the land and that the acquisition of part of the building was therefore an acquisition of land. The Court also held that the petitioners were not entitled to compensation for the entire building, including the land, because they did not own the land. The Court held that the petitioners were only entitled to compensation for the part of the building that they owned.

Issues: 1. Whether the acquisition of part of the building without acquiring the land was legal and valid. 2. Whether the petitioners were entitled to compensation for the entire building, including the land.

Ratio Decidendi: 1. The definition of 'land' in the Act includes benefits arising out of land and things attached to the earth or permanently fastened to anything attached to the earth. The building was a benefit arising out of the land and the acquisition of part of the building was therefore an acquisition of land. 2. The petitioners were not entitled to compensation for the entire building, including the land, because they did not own the land. The petitioners were only entitled to compensation for the part of the building that they owned.

Final Decision: The Supreme Court allowed the appeal and set aside the impugned judgment and order passed by the High Court. The Court directed that the acquisition be completed as expeditiously as possible.

JUDGMENT

Arun Mishra, J.

The State of Maharashtra has come up in appeal against the common judgment dated 10.3.2006 passed by the High Court in two writ petitions being W.P. No.1956/1994 filed by Reliance Industries Ltd. & another and W.P. No.1384/1997 filed by Express Newspapers and another against State of Maharashtra and others. In both the cases, part of the building had been sought to be acquired under the provisions of the Land Acquisition Act, 1894 (hereinafter referred to as "the Act"). In both the cases the owners of building do not own the land. In Express Newspapers the land belongs to the Government and in the case of Reliance Industries, the ownership of the land is with the Port Trust. The question which arises for consideration is whether, under the Act, acquisition of part of the building can be made without acquiring land underneath to such building. The High Court has quashed the acquisition, sans the land, as unsustainable.

2. In W.P. No.1956 of 1994, the premises admeasuring 1478 sq. mts. on the third floor of the building i.e. "Reliance Centre" at 19, Walchand Hirachand Marg, Ballard Estate, Bombay is the premises. The Controller of Accommodation had requisitioned the said accommodation under the provisions of section 6(4)(a) of the Bombay Land Acquisition Act, 1948 (hereinafter referred to as "the Acquisition Act"). It had been allotted for use and occupation by Anti Corruption Bureau, Prohibition and Intelligence Bureau of the Government of Maharashtra and was also partly occupied by Deputy Controller of Rationing, Region-A, Department of Civil Supplies.

3. W.P. No.1679 of 1991 was filed by Reliance Industries Ltd. challenging the requisition order dated 23.1.1970 in view of the judgment of this Court, disapproving withholding of requisitioned property for an unreasonable period of time.

4. The State Government issued a notification under section 4 of the Act to acquire the entire third floor premises admeasuring 167.50 sq. mtrs. in the building. Notice was issued for the purpose of an inquiry under section 5A on 28.12.1992 that was served on 02.01.1993. In pending writ petition an amendment application was filed to incorporate the challenge to the land acquisition proceedings. However, on objections being filed, the writ petition was disposed of with liberty to challenge the acquisition proceedings independently. Declaration under section 6 was issued on 23.6.1994. Notice under section 9 of the Act was issued on 29.7.1994 which was served on 2.8.1994. Thereafter, Reliance Industries Ltd. filed fresh writ application out of which the present appeal arises.

5. In W.P. No.1384 of 1997, the respondent - Express Newspapers - is the lessee of the land owned by the Government. The building is known as "Express Building" at Plot No.18, Block No.1, Back Bay Reclamation, Bombay. The Governor of Bombay had granted the registered lease on 13.3.1956. The second floor comprised in 4500 sq.ft. was sought to be acquired.

6. Earlier vide order dated 25.9.1968 the said floor of Express Newspapers building was requisitioned for use of State Government and was allotted to the 5th appellant, i.e., Controller of Rationing, Food & Civil Supplies Department. Since the requisitioning continued for an unduly long period, Express Newspapers Ltd. filed W.P. No.2269/1992. During the pendency of the same, the State Government initiated the acquisition proceedings by issuing a notification under section 4 with respect to the second-floor premises admeasuring about 325.15 sq.mtrs. needed for Food & Civil Supplies Department to accommodate the office of the Controller of Rationing, Food & Civil Supplies. Notice under section 9 of the Act was issued. Thereafter, declaration issued under section 6 of the Act was withdrawn. Subsequently, a fresh notification under section 4 was issued on 28.7.1996 in relation to the vacant premises of second floor admeasuring 345.18 sq.mtrs. Objections were filed, an inquiry under section 5A of the Act was held,

































































































































































































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