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1970 Supreme(P&H) 46

PUNJAB & HARYANA HIGH COURT
Mehar Singh and R.S.Narula JJ.
Raja Ram Baru Ram
Versus
State Of Punjab
Letter Patent Appeal No. 283 of 1969,
Decided On : FEBRUARY 26, 1970

Headnote:

LAND ACQUISITION - NOTIFICATION - VALIDITY - PUBLIC PURPOSE - COMPANY - FOOD CORPORATION OF INDIA - NOT A COMPANY - ACQUISITION FOR FOOD CORPORATION OF INDIA - INVALID - VIOLATION OF ARTICLE 31(1) AND 19(1) (F) OF THE CONSTITUTION.

Fact of the Case:

The appellants' land was acquired for the construction of godowns for storage of foodgrains by the Food Corporation of India (FCI). The appellants challenged the acquisition on various grounds, including that the FCI was not a company within the meaning of the Land Acquisition Act, 1894 (the Act), and that the acquisition was therefore invalid.

Finding of the Court:

The Court held that the FCI was not a company within the meaning of the Act, and that the acquisition was therefore invalid. The Court also held that the acquisition violated the appellants' fundamental rights under Articles 31(1) and 19(1) (f) of the Constitution.

Issues: 1. Whether the FCI is a company within the meaning of the Act? 2. Whether the acquisition of land for the FCI is valid?

Ratio Decidendi: 1. The Court held that the FCI is not a company within the meaning of the Act because it does not satisfy the two essential ingredients of a company, namely, (i) it is not composed of a fluctuating body of persons, and (ii) its members do not hold shares in it, which they can freely transfer without consulting the other share-holders. 2. The Court held that the acquisition of land for the FCI is invalid because the FCI is not a company within the meaning of the Act, and because no part of the compensation for the acquisition was paid from public funds.

Final Decision: The Court allowed the appeal, set aside the order of the learned Single Judge declining to interfere in the matter, and declared the impugned notifications, in so far as they relate to the land of the appellants, to be null and void.

Judgment

R.S.Narula, J.

1. The facts giving rise to this Letters Patent Appeal again\st the judgment of a learned Single Judge of this Court dismissing the writ petition of the appellants and upholding the impugned order of acquisition of their land are as follows:-

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2 Nine Biswas of the disputed land situate within the municipal area of Morinda, tahsil and district Ropar, came to be owned by Raja Ram appellant No. 1 as a result of a decree in a partition suit to which his sons, appellants Nos. 2 and 3 were parties. Copies of the judgment and decree of the Civil Court are Annexures A and B to the writ petition respectively. Notification, dated December 17, 1968, published in the Punjab Government Gazette (Extraordinary), dated December 17, 1968, at page 1025 (Annexure D to the writ petition), was issued under Section 4 read with Section 17 of the Land Acquisition Act (1 of 1894) (hereinafter called the Act). The notification related to fifteen different pieces of land out of which the land in dispute comprised in Khasra No. 3759 was mentioned at item No. 2. The body of the notification which was Issued during the Presidents rule in Punjab was in the following terms:-

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"Where as it appears to the President of India that the land is likely to be needed by Government, at public expense, for a public purpose, namely, for the construction of godowns for storage of foodgrains, at Morinda, it is hereby notified that the land in the locality described below is likely to be required for the above purpose. The notification is made under the provisions of Section 4 of the Land Acquisition Act, 1894, to all whom it may concern. In exercise of the powers conferred by the aforesaid section, the President of India is pleased to authorise the Collector, district Ropar. with such other officers and officials as may be considered necessary for the purpose by him to enter upon and survey the land in the locality described in the specification below and to do all other acts required or permitted by that section. Further in exercise of the powers conferred by the said Act, the President of India is pleased to direct that action under Section 17 shall be taken in this case on the grounds of urgency and provisions of Section 5-A shall not apply in regard to this acquisition."

On the same day, another notification (published at pages 1025 to 1028 of the same Gazette) was issued by the President of India under Sections 6 and 7 read with Section 17 (2) (c) of the Act in the following terms:-

- Whereas the President of India is satisfied that land specified below is needed by Government at the public expense, for a public purpose, namely, for the construction of godowns for storage of foodgrains at Morinda, it is hereby declared that the land described in the specification below is required for the aforesaid purpose.

This declaration is made under the provisions of Section 6 of the Land Acquisition Act, 1894, to all whom it may concern and under the provisions of Section 7 of the said Act, the Collector, district Ropar, is hereby directed to take order for the acquisition of the said land. Plans of the land may be inspected in the office of the Collector of district Ropar. In view of the urgency of the acquisition, President of India, in exercise of the powers conferred by Section 17 (2) (c) of the said Act, is further pleased to direct that the Collector, district Ropar, shall proceed to take possession of the land herein specified in accordance therewith."

The land of the appellants was entered in the schedule attached to the notification at item No. 2. On March 17. 1969, appellant No. 1 submitted objections against the acquisition (copy thereof is Annexure E to the writ petition). It was claimed therein that appellant No. 1 had after getting the land in dispute under the decree of the Civil Court, and before the issue of the notification under Section 4 of the Act constructed on the land Vishav Karma Mandir and Dharamshala, and, therefore, the same
















































































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