Balakrishna Ayyar, J.-

The question for determination in all these writ petitions are the same and so we shall deal with them together.

The relevant facts are these. Investigations carried out by the Geological Survey of India revealed that large deposits of brown coal or lignite lay in and around Cuddalore and Vriddhachalam Taluks in South Arcot District. The Government decided to mine this coal and for that purpose it was necessary for them to get control over the lignite-bearing areas. Meantime speculators attempted to buy up lands in the area at low prices in the expectation that prices would rise by the time Government decided to acquire the lands ; they hoped that they would be able to sell the lands to the Government at a large profit. On 6th October, 1948, Government issued a Press Note which said inter alia:

“ To prevent such speculative dealings, the Government propose to undertake legislation reserving to themselves the power to compel any person who has purchased land on or after a date (to be prescribed) in 1947 in the lignite-bearing areas to sell such land to them at the rate at which it was purchased. The Government therefore advise the owners of the lignite-bearing lands in the Vriddhachalam and Cuddalore taluks not to dispose of their lands to speculators” .

One comment on this document may at once be made. It did not prohibit the construction of any buildings on any of the lands comprised in the lignite area ; it did not warn that legislation would be undertaken to prevent such building and finally it did not warn that no compensation would be paid for any buildings that might be erected. Whether at that stage the Government had the power by order or notification to prevent the construction of any building we need not stop to consider. It will be sufficient to mention that as a matter of fact no prohibition or warning was issued against the construction of any buildings.

On 7th January, 1953, Government published the statement of objects and reasons relating to a Bill which subsequently became Madras Act XI of 1953. Paragraph 2 of that statement runs as follows ;

“ It is apprehended that the prospect of acquisition of vast areas of private lands in connection with the lignite operations will give rise to speculative dealings in lands in these areas. The quarrying operations at Neiveli will also lead many people to think of buying lands with a view to selling them later to Government at higher prices. The Government have already warned the public against such speculative dealings by a Press Note, dated the 6th October, 1948. In the circumstances the Government consider it necessary to promote legislation to prevent speculative dealings in the lignitebearing lands by taking power for the Government to acquire these lands at the price that prevailed on the 28th April, 1947, when the first mining operations were started in the area, providing at the same time for the payment of the value of any agricultural improvements effected on the lands alter that date up to the date of notice of acquisition. The acquisition will be made in accordance with the provisions of the Land Acquisition Act, 1894 (Central Act I of 1894) subject to the modification specified above in regard to the valuation of the lands and to the further modification that the urgency provisions of that Act will be applied for the acquisition of all lands required for this scheme. The Bill is designed to achieve this object” .

This was the first warning that payment would not be made for buildings or improvements other than agricultural improvements. The Bill was duly passed by the State Legislature, and, on 2nd June, 1953, it received the assent of the President. On 10th June, 1953, the Act was published and it came into force on 20th August, 1953.

So far as is here relevant Madras Act XI of 1953 amended the Land Acquisition Act in two important respects. Section 11 of the Land Acquisition Act directs the Collector to ascertain the value of the land at the

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