JUDGMENT

G. S. Singhvi, J.

1. Leave granted.

2. These appeals are directed against order dated 19.01.2011 of the Punjab and Haryana High Court whereby the writ petitions filed by the appellants questioning the acquisition of their land for implementation of Ring Road Phase-I Development Scheme (for short, ‘the scheme’) were dismissed.

3. The appellants own small plots of land within the municipal limits of Bhatinda. They constructed houses on their respective plots. Some did so after getting the building plans sanctioned by the competent authority while others did that after depositing the development charges. The Municipal Council (now the Municipal Corporation), Bhatinda has provided civic amenities like electricity, water, sewerage, etc., in the localities where the appellants have constructed their houses.

4. By resolution dated 12.12.2000, Improvement Trust, Bhatinda (for short, ‘the Trust’) framed the scheme covering an area measuring 45.57 acres. Thereafter, notice under Section 36 of the Punjab Town Improvement Act, 1922 (for short, ‘the Act’) was issued to enable the interested persons to file objections. Some of the appellants filed objections and prayed that their plots may not be acquired because they had already constructed houses after getting the plans sanctioned from the competent authority. After hearing the objectors, the Chairman of the Trust passed the following order:

“The objectors whose construction is of ‘A’ category as per survey plan, are adjusted and exempted as per Government instructions subject to the condition that no structure falls in the roads.

So far exemption and adjustment of small plot-holders, the matter will be taken up in the Trust meeting. Hon’ble Local Bodies Minister and Local Minister have also desired that small plot-holder be adjusted and exempted on payment of requisite fee/charge. I recommend that small plot-holders be adjusted and exempted while taking up the matter in the Trust meeting for approval of the scheme. It will not affect the scheme, rather will minimize the litigation.

Rest of the objections carry no weight and are rejected, further proceedings be done for completion of the scheme and STP be requested accordingly.”

5. The layout plan of the area was approved by STP (South). The Trust also passed resolution dated 1.1.2002 and approved the lay out plan. Simultaneously, the concerned officers were directed to take action for getting the scheme approved from the State Government. In the resolution, it was specifically mentioned that ‘A’ class buildings be adjusted in the scheme and, as per the policy of the State Government, small plot holders may also be adjusted on `as is where is’ basis subject to the payment of development and exemption charges. For the sake of reference, the resolution passed by the Trust is reproduced below:

“The layout plan is passed unanimously. Action be taken to get approval from the Government in time. “A” class building marked in the Survey Plan and the Layout Plan are adjusted. As per Government public welfare policy, the lands of small-plot-holders which are shown in the plan as shaded in cross-lines are adjusted as is where is. However, the owners of adjusted buildings and plots shall be liable to pay development and exemption charges. The above decision is taken unanimously keeping in view the interest of the public as well as of the Trust. This shall not affect the Scheme of the Trust and the important project of the Ring Road shall be completed which shall decreases the traffic and pollution in the town. Shri Gulzar Singh, DTP, got a note written that there are no rules for adjustment has been written to earlier about this and the adjustment of the plots is in the interest of the public as well as the Trust. This shall not hinder the planned development which is the main object of the Trust.”

6. Thereafter, the District Town Planner inspected the area of the scheme by associating the trustees and the officers of the Trust and sent letter dated 3.