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2011 Supreme(MP) 390

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
Alok Aradhe, J.
Umaraon Singh
Vs.
District Collector
W.P. Nos. 4393, 18712, 18698 to 18700, 18702 to 18709 and 18711 of 2010 and 791, 796, 4390, 4392, 4406, 4409, 4422, 4441, 4443 and 4454 of 2011
Decided On: 16.05.2011

The court established that the acquisition was for a public purpose, justified the invocation of the urgency clause, and dismissed claims of non-compliance with acquisition procedures and mala fide intentions.

Headnote:

Land Acquisition - Public Purpose - Land Acquisition Act, 1894 - Sections 4, 6, 17(1)

Fact of the Case:

The petitioners challenged the legality and validity of notifications issued under Sections 4 and 6 of the Land Acquisition Act, 1894, for acquiring their agricultural lands for a hydel power project. They also contested the permission granted to invoke the urgency clause under Section 17(1) of the Act and sought quashment of the agreement executed under Section 41 of the Act between the State Government and the company.

Finding of the Court:

The court found that the lands were being acquired for a public purpose, as the project aimed to generate electricity for the state and benefit the community. The court upheld the invocation of the urgency clause, considering the severe power crisis faced by the state and the nearing completion of the project. The court also dismissed the petitioners' claims of non-compliance with acquisition procedures and mala fide intentions.

Issues: Legality and validity of land acquisition notifications, permission to invoke urgency clause, compliance with acquisition procedures, and mala fide intentions of the petitioners.

Ratio Decidendi: The acquisition was for a public purpose, as it aimed to generate electricity for the state and benefit the community. The invocation of the urgency clause was justified due to the severe power crisis and nearing completion of the project. The court also found that the acquisition procedures were followed and dismissed the petitioners' claims of mala fide intentions.

Final Decision: The writ petitions were dismissed as they were found to be bereft of merit.

ORDER

Alok Aradhe, J.

1. In this batch of writ petitions, since common questions of law and facts arise for consideration, they were heard together and are being decided by this common order. For the facility of reference, the facts from Writ Petition No. 18712/2010 are being referred to.

2. The Petitioners who are the owners of agricultural land situate in villages Jalud, Kunda, Mardana, Nagwan and Teliyaon of Tahsil Maheshwar, District Khargone, in the instant writ petitions have impugned the legality and validity of the Notifications dated 31-7-2010 and 1-10-2010 issued under Sections 4 and 6 of the Land Acquisition Act, 1894 (hereinafter referred to as the 'Act') by which the lands belonging to the Petitioners are sought to be acquired for Maheshwar Hydel Power Project. The Petitioners also assail the validity of the order dated 26-7-2010 passed by the Commissioner by which permission has been accorded to invoke the urgency clause under Section 17(1) of the Act. The Petitioners also seek quashment of the agreement dated 16-9-2010 executed under Section 41 of the Act between the State Government and Respondent No. 3.

3. The Maheshwar Hydel Electricity Power Project is 400 MW Run of River Scheme which is an integral part of Narmada Valley Development Plan. Initially, the project was conceived and finalized by Narmada Valley Development Authority, Government of Madhya Pradesh in the year 1983. The project was finalized in the year 1988. As the project in question is a power generation project, intended to generate electricity for the State, its implementation was handed-over to Madhya Pradesh Electricity Board. However, subsequently as per the policy of the State Government for promoting private sector participation in power generation, the project was handed over to private promoter, namely, M/s Shri Maheshwar Hydel Power Corporation Public Limited Company (hereinafter referred to as the 'Company'). Thereafter on 28-7-1993 a Memorandum of Understanding (MOU) was executed amongst the Government of Madhya Pradesh, Madhya Pradesh Electricity Board and the Company. Under the aforesaid MOU the Company agreed to establish and operate the Power Station on build, own and operate basis. The Government and the Board took upon the responsibility to get all the statutory clearance, NOCs and permission for establishment, operation and maintenance of power station. The M.P. Electricity Board also agreed to execute the agreement for purchase of power from the company. The MOU further provides that representative of the Government will be on the Board of Directors of the Company. Thereafter, on 11-11-1994 the Madhya Pradesh Electricity Board entered into Power Purchase Agreement with the Company which was subsequently modified on 27-5-1996. As per the modified Power Purchase Agreement the entire power generated from the project is required to be supplied to the Madhya Pradesh State Electricity Board. The tariff of electricity generated from the Project shall be decided by the M.P. State Electricity Regulatory Commission. The Government of India through Ministry of Environment and Forest on 1-5-2001 allowed transfer of environment clearance, earlier accorded to Narmada Valley Development Authority, in favour of the Company on the terms and conditions set out therein.

4. For the purpose of acquisition of land, the company submitted a proposal for acquisition of land in Maheshwar Tahsil which was required for the purpose of implementation of the project and was covered under the submergence area of the project. The Land Acquisition Officer on receipt of proposal forwarded the proposal to the Collector keeping in view the requirement of Section 39 of the Act in respect of villages Jalud as well as Kunda, Mardana, Nagwan and Teliyaon. The Collector vide letters dated 11-3-2010, 14-3-2010 as well as letter dated 16-4-2010 approached the Commissioner, Indore Division. The proposal was forwarded to the State Government. The State Government vide letters
























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