HIGH COURT OF ALLAHBAD
MOOTHAM, M. L. CHATURVEDI, JJ.
H. P. Khandewal
Versus
State of U. P.
Civil Misc. Writ Nos.7810, 7840, 7841, 7842, 7888 and 7976 of 1951
Decided On : 04-02-1954
LAND ACQUISITION - U.P. Land Acquisition (Rehabilitation of Refugees) Act, 1948 (U.P. Act 26 of 1948) - Validity - Compensation - Whether the Act contravenes Art.31(2) of the Constitution - Whether the Act is an existing law within the meaning of Art.366(10) - Whether the Act discriminates between different persons whose property has been acquired thereunder and between persons whose property has been so acquired and persons whose property has been acquired under the Land Acquisition Act - Whether the requisition was bad as it was not for a public purpose.
Fact of the Case:
Six petitions challenging the validity of certain sections of the U.P. Land Acquisition (Rehabilitation of Refugees) Act, 1948 (U.P. Act 26 of 1948). The petitioners were owners of land in the district of Agra. In early 1950, the Agra Improvement Trust made an application to the State Government under S.5 of the Act in respect of an area of land which included the several pieces of land owned by the petitioners. The State Government declared the Trust to be a "builder" under S.2 (viii) of the Act. Thereafter, it entered into agreements with the Trust with regard to the matters specified in S.6 of the Act in respect of several portions of the area proposed to be acquired, and on 11-7-1951, the State Government acquired the land by issuing a Notification under S.7 of the Act. Notices were thereafter issued to the petitioners requiring them to appear before the District Land Acquisition Officer on 31-8-1951 for the purpose of determining the amount of compensation to them for it. The compensation payable to the petitioners under the Act has not however yet been determined.
Finding of the Court:
1. The Act contravenes the provisions of Art.31(2) of the Constitution and is not saved by the provisions of Art.31(5); 2. The Act infringes Art.14; 3. The Act has in the circumstances no application as (a) there was no public purpose and (b) the Agra Improvement Trust could not be a "builder" within the meaning of the Act.
Issues: 1. Whether the Act contravenes the provisions of Art.31(2) of the Constitution and is not saved by the provisions of Art.31(5); 2. Whether the Act infringes Art.14; 3. Whether the Act has in the circumstances no application as (a) there was no public purpose and (b) the Agra Improvement Trust could not be a "builder" within the meaning of the Act.
Ratio Decidendi: 1. The Act does not make provision for the payment of compensation within the meaning of Art.31(2) or S.299(2), Government of India Act 1935. The provisos to S.11(1) of the Act limit the amount of compensation payable to an amount less than the market value of the property at the date of acquisition. This is not compensation within the meaning of Art.31(2) or S.299(2). 2. The Act is not an existing law within the meaning of Art.366(10) as it was not a law which the Provincial Legislature had power to make under S.299(2) of the 1935 Act. 3. The Act discriminates between different persons whose property has been acquired thereunder and between persons whose property has been so acquired and persons whose property has been acquired under the Land Acquisition Act. The provisions for payment of compensation are discriminatory and cannot be correlated to the object of the Act. 4. The requisition was not bad as it was not for a public purpose. The housing of refugees may certainly be a public purpose.
Final Decision: Petitions dismissed.
MOOTHAM, J.:-
These are six petitions under Art.226 of the Constitution in which common questions of law arise and which can conveniently be dealt with in a single judgment. The petitioners challenge the validity of certain sections of the U.P. Land Acquisition (Rehabilitation of Refugees) Act, 1948 (U.P. Act 26 of 1948).
2. That Act came into force on 5-6-1948. The purpose of the Act, as stated in the preamble is to enable land to be acquired for the rehabilitation of refugees from Pakistan and to prescribe an expeditious procedure for the determination of the compensation to be paid on account of such acquisition. The Act in fact makes provision both for the requisition and acquisition of land, but it is only with the latter that we are concerned in these petitions. Section 5 of the Act provides that a "builder" (as defined in the Act) may ask the State Government to acquire specified land for the purpose of erecting buildings, shops and workshops for the rehabilitation of refugees and for the provision of amenities connected therewith. Section 6 provides that if the State Government is then satisfied, after such enquiries as it may consider necessary, that the land is needed and is suitable for any of these purposes it shall require the builder to enter into an agreement with it with regard to a number of matters, including the payment to the State Government of the cost of the acquisition and the transfer on such payment of the land to the builder.
Section 7 makes provision for the actual acquisition of the land. Sub-section (1) of this section provides that after the agreement mentioned in S.6 has been made and the builder has deposited such amount as the State Government shall require, the State Government may acquire the land by publishing in the official gazette a notice to the effect that it has decided to do so, and sub-s. (2) enacts that upon publication of such notice the land so acquired shall vest absolutely in the State Government. Section 11 is an important section for it makes provision for the payment of compensation. The relevant part thereof is sub-s. (1) which reads as follows:
11. (1) Whenever any land is acquired under S.7 or 9 there shall be paid compensation the amount of which shall be determined by the Compensation Officer, in accordance with the principles set out in clauses first, second and third of sub-s. (1) and sub-s. (2) of S.23 of the Land Acquisition Act, 1894:
Provided that the market value referred to in clause first of the said sub-section shall be deemed to be the market value of such land on the date of publication of the notice under S.7 or 9, as the case may be, or on the first day of September, 1939, whichever is less:
Provided further that where such land has been held by the owner thereof under a purchase made before the first day of April, 1948, but after the first day of September, 1939, by a registered document, or a decree for pre-emption between the aforesaid dates, the compensation shall be the price actually paid by the purchaser or the amount on payment of which he may have acquired the land in the decree for pre-emption, as the case may be."
3. The petitioners are all owners of land in the district of Agra. Early in 1950 the Agra Improvement Trust, a statutory body constituted under the U.P. Town Improvement Act, 1919 made an application to the State Government under S.5 of the Act in respect of an area of land which included the several pieces of land owned by the petitioners. On 28-4-1950, the State Government declared the Trust to be a "builder" under S.2 (viii) of the Act. Thereafter on various dates in 1950 and early in 1951 it entered into agreements with the Trust with regard to the matters specified in S.6 of the Act in respect of several portions of the area proposed to be acquired, and on 11-7-1951, the State Government acquired the land by issuing a Notification under S.7 of the Act. Notices were thereafter issued to the petitioners requiring them to appear be
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