Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 3(f)(vi) 1894-S s. 3(cc) 3(e) 40 Land Acquisition Act 39 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Land Acquisition Act, 1894-Ss. 3(cc), 3(e), 3(f)(vi), 39, 40 Acquisition for a deemed company-Appropriate government-Prior approval and not previous consent-A condition precedent not just a formality-Provisions must be strictly construed.The appellant, a Co-operative society, registered under the Karnataka Co-operative Societies Act, submitted a housing scheme to the State Government for acquisition of certain lands in Bangalore. The society also entered into an agreement with a construction company (respondent no. 11), which, for a consideration, assured acquisition of the land by the appropriate government. Respondent no. 11 had also entered into agreements with landowners who agreed to give their consent for acquisition. Appellant society, a deemed company under the Land Acquisition Act, submitted its housing scheme to the appropriate government which was allegedly approved by an order dated 7.11.1984. The society then entered into an agreement with the appropriate government agreeing to the conditions of acquisition as required under Part VII of the Act. The State government then issued a notification under section 4 (I) proposing to acquire lands for the society on the grounds of public purpose.The said notification was challenged in the High Court by land-owners and other persons affected thereby inter alia stating that the acquisition itself was not for a public purpose as respondent no. 11, had influenced the exercise of statutory power by the appropriate government for the substantial amount paid by the society as consideration for exercise of the same, and that it cannot be held that the appropriate Government had exercised its own independent discretion and that the exercise of power is not based on an objective consideration of the material on record. During the pendency of the writ petition, a declaration under Section 6(I) was issued by the State government pursuant to the earlier notification under challenge. Awards were made for that part of the land covered by the declaration.In the meanwhile, the Registerar of Cooperative Societies, Karnataka directed a statutory inquiry and a report relating to several societies including the Appellant Society -was submitted pointing out several irregularities committed by the Appellant in the matter of admission of members and also that the Appellant had entered into an agreement with an agent, respondent no. 11, and had paid him Rs. 92,52,938 and Rs. 35 Lakhs to the Special Land Acquisition officer.The High Court allowed the writ petitions, quashed the entire acquisition and inter alia, held (a) The acquisition was not for a public purpose and not for the benefit of bonafide members of the society; (b) On the basis of the enquiry report, many of the societies manipulated membership so as to enroll all those who are desirous of purchasing sites as also those who do not possess the territorial or other qualification as members; (c) that the society had indulged in commercial venture for sale of the sites; hence the acquisition of the lands under the provisions of the Act of 1984 was a colourable exercise of power and suffers from legal malafides and; (d) that it defeats the provisions of the Bangalore Development Authority Act. The High Court observed that it was necessary that the government should frame rules for according previous approval for acquisition of lands for housing co-operative societies inter alia prescribing the procedure for inquiry and report to aid the government in deciding whether or not approval should be given for carrying out such schemes. In this appeal, the Society contended that as the notifications under Sections 4(1) and 6(1) were issued beyond the time stipulated in the agreement it should be held that the State government had exercised its statutory power for acquisition in normal course only after taking all facts and circumstances into consideration and that merely because the society had entered into an agreement with respondent no. 11, who for a consideration assured that the land would be acquired by the government, no adverse inference could be drawn. |
Judge | Hon'ble Mr. Justice N.P. Singh |
Neutral Citation | 1995 INSC 121 |
Petitioner | H.m.t. House Builidng Co-op. Society |
Respondent | Syed Khader And Ors. |
SCR | [1995] 2 S.C.R. 200 |
Judgement Date | 1995-02-21 |
Case Number | 3011-19 |
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