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1994 Supreme(MP) 96
High Court Of Madhya Pradesh
GULAB C. GUPTA, M. V. TAMASKAR
KHUSHAL DAS, PHATNANI - Appellant
Versus
RAIPUR DEVELOPMENT AUTHORITY THROUGH ITS CHAIRMAN, RAIPUR (MP) - Respondents
MISC. PETN. 4192 Of 1988
Decided On : 02/01/1994
M.M.AGRAWAL, SANJAY KUMAR AGARWAL
Delay in completing land acquisition proceedings under the Madhya Pradesh Nagar Tatha Gram Niwesh Adhiniyam, 1973, violates the property rights of the affected landowners, and the court can direct the payment of compensation, including interim compensation, to protect their interests.
Headnote:
LAND ACQUISITION - MADHYA PRADESH NAGAR TATHA GRAM NIWESH ADHINIYAM, 1973 - SECTION 56 - SCHEME FOR LAND ACQUISITION - DELAY IN COMPLETION OF ACQUISITION PROCEEDINGS - PAYMENT OF COMPENSATION - INTERIM COMPENSATION.
Fact of the Case:
The petitioner challenged the allotment of plots by the Raipur Development Authority without acquiring the land following the procedure under the Madhya Pradesh Town Improvement Trust Act, 1960, or the Madhya Pradesh Nagar Tatha Gram Niwesh Adhiniyam, 1973. The petitioner owned the land, and the respondents had constructed houses on the allotted plots.
Finding of the Court:
The court found that the scheme under which the land was acquired was not finally approved by the State Government, and the acquisition proceedings were not completed. The respondents had entered into possession and constructed their houses on the basis of the allotment orders, and the petitioner could not use the land for any other purpose.
Issues: 1. Whether the respondents were liable to be ejected, and the possession of the land be handed over to the petitioner as no compensation had been paid under the provisions of the Act by the respondents. 2. Whether the petitioner was deprived of his property without payment of compensation, violating his fundamental rights of property.
Ratio Decidendi: 1. The court held that the scheme was saved under Section 87 (1) (c) (ii) of the Madhya Pradesh Nagar Tatha Gram Niwesh Adhiniyam, but there was no material to show that the scheme was not finally approved under the provisions of the Act. 2. The court relied on the Supreme Court judgments in Indore Development Authority v. Madanlal and Ramachand v. Union of India to hold that the petitioner could not be deprived of his property without payment of compensation, and the delay in completing the acquisition proceedings was against the spirit of the provisions of the Act. 3. The court also held that quashing the scheme or the allotment of plots would not be in public interest, considering the developments made and the third-party interests created.
Final Decision: The court directed the Raipur Development Authority to pay compensation to the petitioner by mutual negotiations within three months from the date of the order, based on the market rate prevailing. Additionally, the respondents were directed to pay Rs. 50,000/- as interim compensation within a month from the date of the order. The petitioner was granted the liberty to approach the court if the compensation proceedings were not completed within the stipulated period.
( 1 ) THIS petition has been filed challenging the action of respondents 1 to 4 in allotting plots over Kh. Nos. 327/ 18 and 327/ 19 of Tikrapara, Raipur without acquiring the said lands by following the procedure as required under the provisions Madhya Pradesh Town Improvement Trust Act, 1960, or under the Madhya Pradesh Nagar Tatha Gram Niwesh Adhiniyam, 1973.
( 2 ) THE petitioner owned Kh. Nos. 327/ 18 and 327/ 19. Over the said lands houses have been constructed by the respondents 5 to 12 on having been allotted the said plots by the Raipur Development Authority.
( 3 ) THAT, the record shows that the M. P. Town Improvement Trust Act was in force, Schemes were published sometime in the year 1971 both in the Government Gazette and local newspapers. The said schemes appear not to have been finalised and the Raipur Development Authority was established sometime in 1977. On establishment of Raipur Development Authority, M. P. Town Improvement Trust Act ceased to apply and the schemes which were already published had to be completed under the provisions of the M. P. Nagar Tatha Gram Niwesh Adhiniyam.
( 4 ) THE said schemes framed by Town Improvement Trust was saved under the provisions of Section 87 of the M. P. Nagar Tatha Gram Niwesh Adhiniyam, 1973. The relevant clause is as under :"section 87.- Repeal, savings and constitution of references - (1) As from the date of - (a) the coming into force of the provisions of Chapter II, the reference to the Chief Town Planner in any enactment for time being in force, shall be construed as a reference to the Director; (b) the constitution of a planning area, the following consequences shall ensue, namely - (i) the Madhya Pradesh Town Planning Act, 1948, No. 17 of 1948, shall stand repealed in such area; (ii) any land use map, draft development plan or development plan prepared under the said Act shall be deemed to have been prepared under this Act, and all papers relating thereto stand transferred to the Director; the establishment of the Town and Country Development Authority for any area the following consequences shall ensue in relation to that area namely (i) the Madhya Pradesh Town Improvement Trust Act, 1960 (No. 14 of 1961), shall stand repealed in its application to the said area; (ii) the Improvement Trust functioning within the jurisdiction of the Town and Country Development Authority so established shall stand dissolved and any Town Improvement scheme prepared under the said Act shall in so far as it is not inconsistent with the provisions of this Act be deemed to have been prepared under this Act. "
( 5 ) THE schemes under M. P. Nagar Tatha Gram Niwesh Adhiniyam are to be processed under Sections 49 to 56 of the Act which give the complete procedure for framing of the schemes till the acquisition of land under the scheme and the payment of the compensation in respect of the land.
( 6 ) SECTION 49 speaks about town development schemes. Section 50 speaks about the preparation of town development schemes and the procedure for finalisation of the scheme. Section 53 speaks about restrictions on land use and the publication of the scheme and the approval of the same. Section 54 deals with lapse of scheme and Section 56 speaks about acquisition of - land for town and country development authority. Section 56 is quoted below:-"section 56 - Acquisition of land for Town and Country Development Authority - The Town and Country Development Authority may at any time after the date of publication of the final town development scheme under Section 50 but not later than three years therefrom, processed to acquire by agreement the land required for the implementation of the scheme and, on its failure so to acquire, the State Govt. may at the request of the Town and Country Development Authority, processed to acquire such land under the provisions of the land Acquisition Act 1894 (No. 1 of 1894), and on the payment of compensation awarded under that Act and any other charge
