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1966 Supreme(Online)(All) 22

ALLAHABAD HIGH COURT
J, J
Dau Dayal v. State
C. M. W. No. 559 of 1962



Advocates:
For the Appellants/Petitioners: Sri Daya Shankar Srivastava, Sri S.C. Khare
For the Respondents: Sri V.K.S. Chaudhry, Sri Gopi Nath

Notifications for land acquisition are invalid if they declare public purpose yet are funded entirely by a private entity, violating legal requirements.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4, 6, 9, and 16 - Writ petition challenging notifications issued for land acquisition - Petitioners claim notifications invalid as acquisition was for a private purpose, not public - Notifications failed to meet conditions of public purpose acquisition as no compensation from State - Court finds notifications invalid as land needed for public purpose while payments made by Co-operative Housing Society. (Paras 1, 12, 14)

(B) Public Purpose - Validity of land acquisition for specific entities under Land Acquisition Act, significance of who pays compensation. (Paras 8, 12)

Facts of the case:
The petitioners challenged government notifications acquired for land by the Co-operative Housing Society, asserting acquisition was not for public benefit but for private interests, lacking any state compensation.

Findings of Court:
The Court finds that the acquisition was faulty, not meeting the legal requirements for public purpose and was therefore quashed.

Issues: Whether the acquisition had a public purpose; legality regarding compensation funding; handling of notifications under the Land Acquisition Act.

Ratio Decidendi: The notifications declared a public purpose while being financed by a private entity, violating legal standards for land acquisition, thus ruling them invalid.

Result: Petitioners to retain possession of land with no further proceedings allowed.

Table of Content
1. challenging the legitimacy of land acquisition notifications. (Para 1 , 2)
2. examination of the arguments regarding public purpose and compensation. (Para 3 , 5)
3. evaluation of interpretations of notifications for land acquisition. (Para 6 , 8 , 9 , 10 , 11)
4. court's ruling on validity and implications for acquisition. (Para 12 , 14)
5. outcome and directions regarding land rights. (Para 15 , 16)

1. The petitioners are the enure holders of plots No. 74, .99 acres in area and Nos. 58, 59 and 73, 2.6 acres in area situate in mauza Hamirpur, Pargana Hamirpur, district Hamirpur. It appears that the said plots lie almost in the abadi of Hamirpur Town. A Co - operative Society known as the Co - operative Housing Society Limited has been formed by certain persons whose object is to construct residential houses for its members on no profit, no loss basis. The said society applied to the State Government to acquire land for it for the purpose of fulfilling its object of constructing houses. By a notification under Sub-S. (1) of S. 4 of the Land Acquisition Act, 1894 , dated July 8, 1957 published in the Uttar Pradesh Gazette, dated 13th July 1957, the Collector of Hamirpur notified for general information that the abovesaid plot No. 74, .99 acres in area was needed for a public purpose. This notification against the heading for what purpose required' mentioned for construction of buildings by Cooperative Housing Society Limited, Hamirpur. A similar notification with regard to the above - said plots numbers 58, 59 and 73, dated 9-1-1957 was published in the Uttar Pradesh Gazette, dated 19-1-19,57. The Co - operative Society being a company within the meaning of Land Acquisition Act, proceedings were taken by the State Government under Part VII of that Act. On enquiries made by the Collector certain recommendations were made, a draft agreement as required by the provisions of Part VII was prepared and executed. Then in the Uttar Pradesh Gazette, dated 18-8-1961 the said agreements were published. In the gazette of the same date two notifications under S. 6 of the Land Acquisition Act were published, one in respect of plot No. 74, .99 acres in area, and the other in respect of plots numbers 58, 59 and 73, 2.6 acres in area. In these notifications it was declared that the land was needed for public purpose. There was no mention in either of the notification that the land was needed for a company. Again in both the notifications against the heading for what purpose required' it was mentioned "for the construction of building by Cooperative Housing Society Ltd.". There is nothing on the record before me as to what further proceedings were carried on in regard to the acquisition. The petitioner filed the present writ petition on 15-2-1964 before this Court challenging the acquisition proceedings in regard to plot No. 74 and the other three plots Nos. 58, 59 and 73. In paragraph 9 of the petition it was stated that the petitioners have received no notice under S. 9 of the Land Acquisition Act so far but the respondents, that is, the State of Uttar Pradesh and the Collector of Hamirpur. the Land Acquisition Officer and the Co - operative Housing Society Limited threatened to take the land of the petitioners in pursuance of the aforesaid acquisition proceedings. From these allegations in the petition it appears that the petitioners came to this Court when they found that the authorities were taking steps to dispossess them. The acquisition has been challenged by the petitioners on the ground that the acquisition proceedings were wholly ultra vires of the Land Acquisition Act; that the acquisition was bad as the provisions of Sub-S. (5) of S. 41 were not complied with; that the acquisition was neither for public purpose nor was it useful to the public, and it merely amounted to the compulsory transfer of the ownership of the 'and of the petitioners to some other private persons. Later on an application was filed raising furthe




































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