Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Ss. 3 1894 5 Land Acquisition Act 6 and 41 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Land Acquisition:Land Acquisition Act, 1894; Ss. 3, 5, 6 and 41 and Provisions under Part II and Part VII of the Act/Companies Act, 1956; s. 617/Land Acquisition (Companies) Rules, 1963; r.4:Acquisition of land by State for establishing an industry by a private company - Requirement of - Held: State must form an opinion ascertaining the purpose of acquisition - And it must also form an opinion that the land in question is not an agricultural land - If acquisition is for public purpose, procedure laid down under Part II of the Act applies, else Part VII of the Act would be applicable - Public purpose not to be assumed - Formation of opinion must be on the basis of material on record and the authority bound to follow the procedure strictly - Agreement entered into between landowners and the State does not mention about payment of compensation or part thereof in lieu of acquisition - Since, there was no material on record, State formed an opinion after execution of the agreement ignoring mandatory requirements of the Act - Statutory requirements in terms of r.4 of the Rules imperative in character, thus, calls for strict compliance - Since there was non-compliance of r.4, exercise of jurisdiction by the State Government under Part VII of the Act erroneous - Hence, impugned judgment cannot be sustained, thus set aside.Interpretation of Statutes:Exproprietory Legislature - Construction of.Land Acquisition Act, 1894 - Land acquisition - Purpose - Procedure under Part II or Part VII - Applicability of.Land Acquisition (Companies) Rules, 1963; Rule 4 - Applicability of.Words and phrases:'Company,' 'Corporation owned by State', 'public purpose' - Meaning of in the context of Section 3 of the Land Acquisition Act.Appellants were owners of various tracts of agricultural lands situate in a Village in the State of Punjab where respondent No. 5, a Company intended to set up a project. It requested the State Government to acquire lands in question in terms of the provisions of the Land Acquisition Act, 1894. The State Government issued a notification purported be under Section 4 of the Act for acquisition of the lands in question; a declaration was issued in terms of Section 6 of the Act and later, an agreement was entered into by and between the Company and the State. Appellants filed Writ petitions questioning the purported acquisition proceedings. During pendency of the petitions, notices in terms of Section 9 of the Act were issued and an award was made. Later, a sum of Rs.100/- was deposited by the State as a token amount for acquisition of the said lands in question. By reason of the impugned judgment, the High Court held that the acquisition was for a public purpose; that acquisition of the lands in question was not a colourable exercise of power and it was made in terms of the provisions contained in Part II of the Act and not Part VII thereof, as the State had also contributed a sum of Rs.100/- for the purpose of acquisition of lands; that execution of the agreement with Respondent No.5-Company and declaration under Section 6 of the Act although made on the same day, the same did not suffer from the vice of non-application of mind; that since respondent No. 5 was not a private company, statutory limitations contained in s.44B of the Act are not attracted; and that Rule 4 of the Land Acquisition (Companies) Rules, 1963 being directory in nature, it was not necessary to comply with it Hence the present appeals. Appellant-land owners contended that the High Court erred in opining that the lands in question could be compulsorily acquired for a company, other than private company, in accordance with the provisions of Part II of the Land Acquisition Act; that in view of the insertion of clause (viii) of sub-section (f) in s.3, provision of Part II were not available for acquisition of land for companies; and that action on the part of the State in entering into the agreement and issuing a declaration under s.6 of the Act on the same day was in excess of its power under the Act. Respondent No.5-Company submitted that acquisition having been made for a public purpose, and a part of the expenses having been made from the public exchequer, provisions of Part VII of the Act were not attracted; that principles of natural justice as contained in Section 5A of the Act having been complied with, the State was not required to carry out any inquiry as envisaged under Rule 4 of the Companies Rules; that declaration made under Section 6 of the Act in regard to the existence of public purpose being conclusive in nature, the court cannot go beyond the same; and that r.4 of the Companies Rules being directory in nature, strict compliance thereof was not necessary. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2007 INSC 1083 |
Petitioner | Devinder Singh And Ors |
Respondent | State Of Punjab And Ors |
SCR | [2007] 11 S.C.R. 475 |
Judgement Date | 2007-10-12 |
Case Number | 4843 |
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