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HIGH COURT OF CALCUTTA
H. K. Bose, G. K. Mitter
RAM KUMAR AGARWALLA - Appellant
Versus
STATE OF WEST BENGAL - Respondent
A. F. O. O. 453 Of 1958
Decided On : DECEMBER 19, 1962
The acquisition of land for a company under the Land Acquisition Act, 1894, is subject to the provisions of Part VII of the Act. The consent of the appropriate Government is required for such acquisition, and the company must enter into an agreement with the Government providing for certain matters specified in Section 41 of the Act, including the terms on which the public shall be entitled to use the work. The Supreme Court has held that the work must be directly useful to the public and the public must be entitled to use the work as such for its own benefit in accordance with the terms of the agreement.
Fact of the Case:
The appellant, Ram Kumar Agarwalla, and others, were the lessees of premises No. 1-A, Cornfield Road, South Calcutta. The Bharat Sevasram Sangha, a society formed for the purpose of carrying on religious, philanthropic, and charitable activities, approached the appellants for a gift of a portion of the premises for the purpose of setting up a gymnasium. The appellants refused, and the Sangha made an application to the First Land Acquisition Collector, Calcutta, for acquiring 12 cottahs of land forming part of the premises for the purpose of extending a charitable dispensary attached to the Sangha. The appellants filed objections to the proposed acquisition, and a local enquiry was held by the Second Land Acquisition Collector, who recommended acquisition of the land for the extension of the dispensary. However, the Government decided not to proceed with the acquisition. Subsequently, the Sangha approached the Minister in charge of Land and Land Revenue, Government of West Bengal, and requested the Government to acquire the land for the construction of Social Workers' quarters, Students' Home, Publication Department, Guest House, and Panthasala. The Government issued a notification under Section 4 of the Land Acquisition Act, and the appellants again filed objections. A local enquiry was held, and the Second Land Acquisition Collector submitted a report recommending acquisition of the land for the proposed purposes. The Government issued a declaration under Section 6 of the Act, and the appellants challenged the validity of the acquisition proceedings by filing a petition under Article 226 of the Constitution.
Finding of the Court:
The Court held that the acquisition of land for the Bharat Sevasram Sangha was valid. The Court found that the purposes for which the acquisition was sought were bona fide objects and that the Sangha had been maintaining Students' Homes, Publication Department, Guest Houses, and Panthasalas at its various branches but had been unable to set up such organizations at its headquarters for lack of accommodation or space. The Court also found that the public would benefit from the extension of the activities of the Sangha for which the proposed acquisition was intended.
Issues: 1. Whether the acquisition of land for a company under the Land Acquisition Act, 1894, is subject to the provisions of Part VII of the Act? 2. Whether the consent of the appropriate Government is required for such acquisition? 3. Whether the company must enter into an agreement with the Government providing for certain matters specified in Section 41 of the Act, including the terms on which the public shall be entitled to use the work? 4. Whether the work must be directly useful to the public and the public must be entitled to use the work as such for its own benefit in accordance with the terms of the agreement?
Ratio Decidendi: The Court held that the acquisition of land for a company under the Land Acquisition Act, 1894, is subject to the provisions of Part VII of the Act. The consent of the appropriate Government is required for such acquisition, and the company must enter into an agreement with the Government providing for certain matters specified in Section 41 of the Act, including the terms on which the public shall be entitled to use the work. The Court also held that the work must be directly useful to the public and the public must be entitled to use the work as such for its own benefit in accordance with the terms of the agreement.
Final Decision: The Court dismissed the appeal and upheld the acquisition of land for the Bharat Sevasram Sangha.
( 1 ) THIS appeal from an order of Sinha, J. , relates to the question of the validity of the acquisition for Bharat Sevasram Sangha of about 17 cottahs of land forming part of premises' No. 1-A, Cornfield Road in South Calcutta.
( 2 ) THE appellants along with certain other persons are the lessees in respect of a plot of land being premises No. 1-A, Cornfield Road and premises Nos. 203, 205-A and 2o7-A, Rash Behari Avenue, Calcutta with three houses on the said premises Nos, 203, 205-A and 207-A, Rash Behari Avenue, Calcutta. There was a big tank covering a certain area of the said premises No. 1-A, Cornfield Road and for the purpose of constructing some more houses for the accommodation of the members of the family of the appellants and their deceased brother, the said tank was partly filled up at a huge cost. The plan for construction of the proposed houses at premises No. 1-A, Cornfield Road was sanctioned by the Corporation upon the application of the appellants on I3th May, 1955. Prior to that in 1954 some of the members of the Governing Body of Bharat Sevasram Sangha which is an organisation formed for the purpose of carrying on religious, philanthropic and charitable activities and which had its head office at premises No. 211, Rash Behari Avenue which is contiguous to premises No. 207-A, Rash Behari Avenue and also continguous to the premises No. 1-A, Cornfield Road, approached the appellants for a gift of a portion of the premises No. 1-A, Cornfield Road for the purpose of setting up a gymnasium for the inmate of the Sangha. The case of the Sangha however, is that they did not ask for a gift of the land but they wanted to purchase it from the appellants by private negotiation. As the appellants did not agree to the proposal the Sangha made an application to the First Land Acquisition Collector, Calcutta on 2oth October, 1954, for acquiring 12 cottahs of land forming part of the premises No. 1-A, Cornfield Road alleging Inter alia that the land was required by the Sangha for the efficient running and/or expansion of an existing Charitable dispensary attached to the Sangha at No. 211, Rash Behari Avenue. On 30th December, 1954, the appellants received a notice under Section 4 of the Land Acquisition Act, 1894, calling upon them to file objection against the proposed acquisition of 12 cottahs of land by the Government at the expense of the Sangha for the purpose of extension of a charitable dispensary in the interest of the suffering public. The notification under Section 4 was dated 9th December, 1954, and was published in the Calcutta Gazette dated 16th December, 1954. On 20th January, 1955, the appellants filed objections to the proposed acquisition inter alia on the ground that the charitable dispensary was nonexistent and the proposal for acquisition was a mala fide one and the land in question was required by the appellants for building residential houses. On 10th February, 1955, a local enquiry was held by the Second Land Acquisition Collector and on 16th April, 1955, the said Collector submitted his report recommending acquisition of the said land for the extension of the dispensary. But it appears that by a memorandum dated 3rd August, 1955, the State Government informed the Second Land Acquisition Collector of its decision not to proceed with the said acquisition. Thereupon the Second Land Acquisition Collector by a memorandum dated 4th August, 1955, informed the General Secretary of the Sangha about the said decision of the Government not to proceed with the acquisition. But it is alleged that no intimation was given to the appellants about this decision of the Government. In the meantime, after the sanction of the plan the appellants obtained the necessary permit for cement and purchased cement and other building materials for construction of the building according to the plan and stored the same at premises No. 1-A, Cornfield Road and in October, 1956, the contractors employed by the appellant
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