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1993 Supreme(MP) 340

High Court Of Madhya Pradesh
GULAB C. GUPTA, P. N. S. CHOUHAN
CHAITRAM VERMA - Appellant
Versus
LAND ACQUISITION OFFICER, RAIPUR - Respondents
MISC. PETN. 461 Of 1992
Decided On : 05/20/1993

Advocates Appeared:
A.D.Deoras, A.G.Dhande, S.L.SAXENA, Y.S.DHARMADHIKARI

Acquisition of land for a company is a colourable exercise of power if the notification and declaration mention it was acquisition for a public purpose.

Headnote:

LAND ACQUISITION - PUBLIC PURPOSE - ACQUISITION FOR COMPANY - NOTIFICATION AND DECLARATION MENTIONING PUBLIC PURPOSE - COLOURABLE EXERCISE OF POWER - ENQUIRY UNDER SECTION 5A OF THE ACT - URGENCY - DISPENSING WITH ENQUIRY - DIRECTION UNDER SECTION 17 (4) OF THE ACT - VIOLATION - ACQUISITION VITIATED.

Fact of the Case:

The petitioners are bhumiswamis of lands notified under S. 4 (l) of the Land Acquisition Act, 1894 (hereinafter referred to as the Act) on 4-7-91 to be acquired for "public purpose" and challenge legal validity thereof by filing this writ petition under Art. 226 of the Constitution of India.

Finding of the Court:

The notification under S. 4 of the Act (Annexure A) mentions that the land was required for the public purpose. Schedule to the Notification describes the public purpose as "for constructing railway siding for the cement plant of Tata Iron and Steel Company" Prima facie, therefore, the acquisition was for construction of the railway siding for the cement plant of the respondent No. 4.

Issues: 1. Whether the acquisition of land for the respondent-Company is a colourable exercise of power? 2. Whether the provisions of Chapter VII of the Act are applicable to the acquisition of land for the respondent-Company? 3. Whether the notification under S. 4 of the Act and declaration under S. 6 of the Act are illegal? 4. Whether the enquiry under S. 5a of the Act could have been dispensed with? 5. Whether the urgency provision under S. 17 (1) of the Act was applicable in the instant case?

Ratio Decidendi: 1. The acquisition of land for the respondent-Company is a colourable exercise of power as the notification under S. 4 of the Act and declaration under S. 6 of the Act mention it was acquisition for a public purpose, which is not the case. 2. The provisions of Chapter VII of the Act are applicable to the acquisition of land for the respondent-Company as the acquisition is for a company and not for a public purpose. 3. The notification under S. 4 of the Act and declaration under S. 6 of the Act are illegal as they mention acquisition for public purpose, which is not the case. 4. The enquiry under S. 5a of the Act could not have been dispensed with as there was no urgency in the matter and the urgency provision under S. 17 (1) of the Act was not applicable in the instant case. 5. The urgency provision under S. 17 (1) of the Act was not applicable in the instant case as there was no real and bona fide urgency and the authority did not consider whether the urgency was of a type as to justify dispensing with the enquiry under S. 5a of the Act.

Final Decision: The petition succeeds and is allowed by quashing notification under Section 4 (1) dated 4-7-1991 (Ann. A), Declaration dated 24-2-1992 (Ann. R-IV) and further proceedings and awards based thereupon, in so far as they affect lands of the petitioners.

GULAB C. GUPTA, J.

( 1 ) THE petitioners are bhumiswamis of lands notified under S. 4 (l) of the Land Acquisition Act, 1894 (hereinafter referred to as the Act) on 4-7-91 to be acquired for "public purpose" and challenge legal validity thereof by filing this writ petition under Art. 226 of the Constitution of India. The lands in question have also been declared under S. 6 of the Act as acquired and awards in respect thereof passed by the respondent No. 1. The declaration dated 24-2-92 (Annexure R-IV) under S. 6 of the Act and awards dated 27-5-1992 are also challenged as illegal in this petition.

( 2 ) IT appears that pursuant to the industrial policy of the respondent-State of Madhya Pradesh, industrialists from all over the country were offered concessions, facilities and benefits and invited to establish industries in the State. The respondent No. 4, pursuant to this invitation gave their consent to the Industries Department of the State and Audyogik Vikas Nigam to establish a cement factory at Bhatapara sub division, Raipur and were granted permission by the respondent-State. The cement plant was to be commissioned in October, 1992 (Para 3 of the Return of the respondent No. 4 ). According to the affidavit dated 5-5-1993 of Shri Raj Singh, Resident Manager of respondent No. 4, they approached the Railway Board in May-June, 1986 for No Objection Certificate for providing a railway siding for the cement plant and the said Board granted the said certificate on 6-6-1986. Thereafter, the S. E. Railways was requested toundertake survey for the said siding and submit its report. The S. E. Railways undertook the survey and submitted its report to the respondent No. 4 on 25-11-86. The respondent No. 4 communicated their acceptance to the S. E. Railways on 20-4-1987 and paid survey fee of Rs. 13,82,850/ - to them by 11-11-1989 in four instalments. Thereafter, on 7-12-1989 the respondent No. 4 applied to the Audyogik Kendra Vikas Nigam for making available the land for construction of railway siding. The Nigam forwarded this application to the General Manager, District Industries Center who in turn passed it on to the Additional Director of Industries. The Additional Director recommended the matter to the respondent-State Government on 2-4-1990. The State Government accorded its sanction on 15-6-1990 and required the respondent-Collector to undertake proceedings for the acquisition of lands in accordance with the provisions of the Act.

( 3 ) THERE is nothing on record to show what happened between 15-6-90 i. e. date of sanction and 20-6-91 when the respondent No. 1 obtained information about the lands to be acquired from Patwaris of the village. Order sheets (Annexures-D, E and F), indicate that the respondent Land Acquisition Officer applied to the Commissioner, Raipur Division on 25-6-91 for permission to proceed under S. 17 (1) of the Act. Order-sheets do not show that any request to dispense with enquiry under S. 5a as required under S. 17 (4) of the Act was made by the respondent No. 1. The Commissioner seems to have approved application of S. 17 ( 1) of the Act on 29-6-1991 and thereafter on 4-7-1991 draft notifications under Ss. 4 (1) and 6 of the Act were prepared by the respondent No. 1 and sent for publication in official Gazette. The two notifications were published in M. P. Rajpatra dated 19-7-91 as per Annexures-A and B and mention acquisition "for construction of railway siding of cement plant of Tata Iron and Steel Co. ". Actual words are in Hindi and are as under : -order-sheet of one of the cases indicates that respondent No. 1 on 3-7-91 required the respondent No. 4 to sign agreement under S. 41 of the Act, and hence 3 agreements in relation to lands in 3 villages were signed on 4-7-91. Order-sheets dated 22-7-91 show that the respondent No. 1 ordered on that date two notifications/declarations be also published in two local newspapers. The respondent No. 1 also ordered publication under S. 9 (1), (2) and (3) of the


















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