A provision in a statute that limits the amount of compensation for the acquisition of property to the market value of the land on a specific date, regardless of when the land is acquired, is ultra vires the Constitution because it violates the requirement that compensation be just and reasonable.

Harries, C.J.

1. IN these two cases, Rules were issued on the parties to show cause why two suits pending before a learned Subordinate Judge at Alipore should not be transferred to this Ct. under Article 228 of the Constitution. The suits it was said involved difficult constitutional points, and after hearing the parties this Court came to the conclusion that points of importance and difficulty arose in the cases which Article 228 of the Constitution required the H. C to decide.

2. WE have now heard the parties upon the constitutional question involved and as the points are common to both the suits it will be convenient to dispose of both the matters in one judgment. The suits were brought by persons who had been called upon to vacate certain lands said to have been acquired under the West Bengal Land Development and Planning Act 1948 (Act XXI [21] of 1948). In the suits it was prayed that the notification Under Section 4 and the declaration Under Section 6 of Act XXI [21] of 1948 be declared void, illegal and ultra vires and that all proceedings under the said Act were without jurisdiction, illegal, and ultra vires and that the same do not affect or prejudice in any way the absolute right, title and interest of the pltfs. in the respective suits in the land in question. There was also a claim for khas possession of the land and a permanent injunction restraining the defts. from further interfering with the pltfs'. possession.

3. TO appreciate the points involved it will be necessary shortly to set out the facts which gave rise to this litigation. The defts. in both the suits were the West Bengal Settlement Kanungoes Cooperative Credit Society Ltd.

4. IN November 1949 the defts. apld. to the Government of West Bengal for authorisation to undertake a development scheme Under Section 5 (1), West Bengal Land Development and Planning Act, 1948. The Government made a notification Under Section 4 of the Act and after hearing objections of the persons affected by the notification the Special Land Acquisition Collector of 24 Parganas submitted a report. The West Bengal Government approved the detailed scheme and lay out plan of the applt. (sic) society and directed the Collector of 24 Parganas to submit an estimate of the cost of acquisition and to make a declaration forthwith Under Section 6 of the Act. The Government also directed that possession should be made over to the Society as soon as the cost of acquisition was deposited in accordance with the estimate of the Collector. A declaration Under Section 6 of the Act was published in March 1950 and the Government of West Bengal took possession of the lands. Later, in the month of March 1950. the deft. society entered into an agreement with the Government as contemplated in Section 10 (2) of Act XXI [21] of 1948. The deft. on payment of the estimated costs of acquisition of the whole of the lands, namely, Rs. 1,73628-1 10 took possession of the land and entered into contracts with builders for the purposes of developing the said land.

5. THE pltfs. thereupon brought the suits claiming possession of the lands and declarations that all the proceedings under Act XXI [21] of 1948 were void and of no effect and that the Act itself was ultra vires the Constitution.

6. BEFORE us it has been contended on behalf of the pltfs, that the whole Act is ultra vires the Constitution of the Republic of India by reason of the fact that its provisions offend against Articles. 19 (1) (f) and 31 of the Constitution. Needless to say that if the whole Act offends against these Articles or either of them the Act is ultra vires. Further even if the whole Act does not offend against either of these Articles, so much of the Act as does offend against the Articles would have to be declared ulra vires if such were severable from the remaining provisions of the Act. The Act in question, namely, the West Bengal Land Development and Planning Act, 1948 is a comparatively short Act which empowers the Governme