Andhra Pradesh High Court
Judges : D.REDDAPPA REDDY, M.N.RAO
Tulsi Co-operative Housing Society rep - Appellant
Versus
State OF A.P. - Respondent
Decided On : 11-21-92
LAND ACQUISITION ACT - ULC ACT - EXEMPTION - CANCELLATION - PUBLIC PURPOSE - EQUITABLE ESTOPPEL - LEGITIMATE EXPECTATIONS - COMPENSATION - DELAY IN DISPOSAL OF EXEMPTION APPLICATIONS - JUDICIAL REVIEW - DIRECTIONS.
Fact of the Case:
The State Government issued a notification under Section 4(1) of the Land Acquisition Act (LA Act) for acquisition of land for construction of houses for economically weaker sections, low income group and middle income group under HUDCO scheme. The urgency clause under Section 17(4) was invoked and the procedure contemplated under Section 5-A was dispensed with. The declaration under Section 6 was issued by a further notification. The land owners entered into an agreement with a housing society for purchase of the land. The Urban Land (Ceiling and Regulation) Act (ULC Act) came into force in the State. The State Government granted exemption to the notified land from the operation of the ULC Act. The exemption order was later cancelled by the State Government on the ground that the conditions subject to which the exemption was granted were violated by the land owners and the housing society. The land owners and the housing society filed writ petitions challenging the cancellation of the exemption order.
Finding of the Court:
The Court held that the cancellation of the exemption order was valid as the conditions subject to which the exemption was granted were violated by the land owners and the housing society. The Court further held that the State Government had the power to withdraw from the land acquisition proceedings and that the Bagh Amberpet Welfare Association could not be deprived of the right to purchase the land. The Court directed the State Government to dispose of all the pre-1980 exemption applications within six months from the date of receipt of a copy of the judgment and all the pre-1991 applications before 31-12-1993.
Issues: 1. Whether the cancellation of the exemption order was valid? 2. Whether the State Government had the power to withdraw from the land acquisition proceedings? 3. Whether the Bagh Amberpet Welfare Association could be deprived of the right to purchase the land? 4. Whether the State Government was liable to pay compensation to the land owners?
Ratio Decidendi: 1. The cancellation of the exemption order was valid as the conditions subject to which the exemption was granted were violated by the land owners and the housing society. 2. The State Government had the power to withdraw from the land acquisition proceedings as the vesting of possession of land in the government under the provisions of the LA Act cannot exclude the applicability of the ULC Act. 3. The Bagh Amberpet Welfare Association could not be deprived of the right to purchase the land as the State Government was bound by the principle of equitable estoppel and legitimate expectations. 4. The State Government was liable to pay compensation to the land owners, but the compensation amount was limited to the amount that was deposited by the members of the Bagh Amberpet Welfare Association towards the land value.
Final Decision: The Court dismissed the writ petitions filed by the land owners and the housing society. The Court directed the State Government to dispose of all the pre-1980 exemption applications within six months from the date of receipt of a copy of the judgment and all the pre-1991 applications before 31-12-1993.
( 1 ) ONE Mohammed Azam (petitioner in S. LP. No. 1679/89) and his family members are the owners of an extent of Ac. 24-00 of land situate in Bagh amberpet revenue village within the limits of Hyderabad Municipal corporation. Out of this, an extent of Ac. 18-03 guntas was notified by the State government for acquisition under Sec. 4 (l) of the Land Acquisition Act (hereinafter called as the L. A. Act): G. O. Rt. No. 68 dated 4-6-1975 was issued under the HUDCO scheme for construction of houses for persons belonging to economically weaker sections, low income group and middle income group. The urgency clause under Sec. l7 (4) was invoked and the procedure contemplated under Sec. 5-A was dispensed with. Thereafter the declaration under Section 6 was issued by a further notification dated 25-4-1978. On 6-4-75 M/s. Tulsi co-operative Housing Society entered into an agreement with Mohd. Azam and others for purchase of the land in order to divide it into plots and allot to its members. On 17-2-76 the Urban Land (Ceiling and Regulation) Act, 1976 (hereafter called as the U. L. C. Act) came into force in the State of Andhra pradesh. On 21-12-78 Mohd. Azam submitted anapplication under Sec. 20 (1) (b) of the U. L. C. Act requesting the Government to grant exemption in respect of the notified land from the operation of the U. L. C. Act. Similar applications were also filed by M/s. Tulsi Co-operative Housing Society on 31-5-76 and 6-1-77. The request so far as the notified land is concerned was rejected by the State government and permission was accorded only to a smaller extent of 14,000 square yards by G. O. Ms. No. 1758 dated 17-10-78 which has no relevance in these cases. Certain guidelines were issued by the Government in g. O. Ms. No. 4270 dated 10-9-80 for granting exemption under the U. L. C. Act. In accordance with those guidelines G. O. Ms. No. 4293 dated 11-9-80 was issued by the Government granting exemption in respect of the notified land for which exemption was rejected earlier as the land acquisition proceedings were pending. A registered sale deed was executed by Mohd. Azam and his family members in respect of an extent of 5 acres of land (a part of the notified land) in favour of m/s. Tulsi Co-operative Housing Society on 31-3-81. W. P. No. 5368/81 was filed by Mohd. Azam challenging the acquisition proceedings. M/s. Tulsi housing Society also filed another W. P. No. 4455/81 seeking the same relief. One of the contentions raised in both the writ petitions was that invocation of the urgency clause under Sec. l7 (4) of the L. A. Act was illegal in view of the fact that Sec. 6 declaration was issued after a lapse of three years on 25-4-78. A learned single judge dismissed both the writ petitions on 28-1-1982. Two writ appeals - W. A. Nos. 170 and 171 of 82 -were filed against the writ petitions and the same were heard by a Full Bench of this Court which by a judgment dated 2-3-83 allowed them taking the view that "the dispensing with the enquiry under Sec. 5-A is clearly wrong and cannot be supported. "
( 2 ) ONE Bagh Amberpet Welfare Society, abody registered under the Societies registration Act got itself impleaded as respondents 3 and 4 in the writ petitions and writ appeals. It appears, the society was formed in order to enable persons belonging to economically weaker sections, lower and middle income groups to obtain house-sites. The society claims that its members are beneficiaries of the land acquisition proceedings as the land acquisition proceedings were initiated for allotment of plots to its members. A sum of Rs. 25,14,502/- was deposited by its members with the Municipal Corporation of Hyderabad pursuant to a notification issued by the Special Officer of the Corporation in june, 1981 requesting the Bagh Amberpet Welfare Society to deposit the provisional land value. During the pendency of the writ appeals, applications filed for stay of further proceedings were dismissed and the State Government inv
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