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1982 DIGILAW 96 (GUJ)

MAHENDRALAL KANAIYALAL v. ADDL. SPL. LAND ACQUISITION OFFICER

1982-07-01

A.P.RAVANI, S.L.TALATI

body1982
S. L. TALATI, J. ( 1 ) WE may mention that a common law point was raised on behalf of the appellants and it was submitted that the market rate should be considered as it prevailed on the date on which the notification under sec. 6 of the Land Acquisition Act 1894 was issued. Here we may repeat and mention that notification under sec. 4 of the Land Acquisition Act 1894 was issued on 20/11/1969 while notification under sec. 6 of the Land Acquisition Act 1894 was issued on 9/09/1971. There was thus a difference of a fairly long period and therefore this point was vehemently urged and using one date or the other was bound to make some difference in regard to the market rate according to the submissions. Therefore it is necessary to decide this question first. ( 2 ) WE have already stated that while preparing the development plan reservation was made under sec. 7 (d) of the Act for the purpose of Gujarat Housing Board. On behalf of the appellants it was submitted that in view of sec. 11 of the Act which is required to be read with the schedule the appellants would be entitled to get the market rate as on the date of the issuance of notification under sec. 6 of the Land Acquisition Act 1894 To determine this question it is necessary to reproduce sec. 11 of the Act which runs as under:" (1) The local authority may acquire any land designated in the development plan for a purpose specified in clause (b) (c) (d) or (e) of sec. 7 either by agreement or under the land Acquisition Act 1894 (2) If the land is acquired under the Land Acquisition Act 1894 the provisions of the said Act as amended by the Schedule to this Act shall apply to the determaintain of compensation for the acquisition of such land. (3) If the designated land is not acquired by agreement within ten years from the date specified under sub-sec. (3) of sec. (3) If the designated land is not acquired by agreement within ten years from the date specified under sub-sec. (3) of sec. 10 or if proceedings under the Land Acquisition if 1894 are not commenced within such period the owner or any person interested in the land may serve notice to the local authority and if within six months from the date of the service of such notice the land is not acquired or no steps as aforesaid are commenced for its acquisition the designation shall be deemed to have lapsed". Local authority is defined by sec. 2 (4) of the Bombay Town Planning Act 1954 which runs as under :"2 (4 ). local authority means a municipal corporation constituted under the Bombay Provincial Municipal Corporation Act 1949 or a municipality constituted or deemed to be constituted under the Gujarat Municipalities Act 1973 and includes also (A) a committee appointed for a notified area under the Bombay District Municipal Act 1901 which is permitted in this behalf by the State Government to exercise the perseveres of a local authority under this Act (B) a gram or nagar panchayat constituted or deemed to be constituted under the Gujarat Panchayats Act 1961 which is permitted in this behalf by the State Government to exercise the powers of a local authority under the Act. ( 3 ) BEFORE we go to the Schedule it is also necessary to Reproduce sec. 84 of the Act which runs as under :" 24 (1) If st any time the State Government is of opinion that any land included in a town planning scheme is needed for a public purpose other then that for which it is Included in the scheme it may make a declaration to that effect in the Official Gazette in the manner provided in sec. 6 of the Land Acquisition Act 1894 The declaration so published shall notwithstanding anything contained on the said Act be deemed to be a declaration duly made under the said section. (2) On the publication of a declaration under sub-sec. (1) the Connector shall proceed to take order for the acquisition of the land and the provisions of the Land Acquisition Act 1894 as amended by the Schedule to this Act shall so far as may be apply to the acquisition of the said land. (2) On the publication of a declaration under sub-sec. (1) the Connector shall proceed to take order for the acquisition of the land and the provisions of the Land Acquisition Act 1894 as amended by the Schedule to this Act shall so far as may be apply to the acquisition of the said land. (3) In the proceedings under the Land Acquisition Act 1894 the local authority concerned shall be deemed to be a person interested in the land acquired and in determining the amounts of compensation to be awarded to the local authority the Collector or the Court as the case may be may take into consideration the value if any paid by the local authority for the acquisition of the said land under sec. 81 or otherwise and the proportionate cost of the scheme if any incurred by the local authority and rendered abortive by reason of the variation of the scheme on account of such acquisition. (4) On the land vesting in the Government under sec. 16 or 17 of the Load Acquisition Act 1894 as the case may be the scheme shall be deemed to have been suitably varied by reason of acquisition of the land. "the reproduction of the above two sections is necessary because when one goes to the Schedule one finds that the Schedule of the Land Acquisition Act 1894 stands amended as per secs. 11 and 84 and the schedule reads as under:1 For sec. 23 of the Land Acquisition Act 1894 (hereinafter called the said Act the following shall be substituted namely: ( 4 ) (1) In determining the amount of compensation to be awarded for the land or any interest therein acquired under this Act the Court shall take into consideration the following: (1) the market value at the date of the-publication of the declaration under sec. 6. . . "now the whole argument is based on the amendment by the Schedule so far as the Land Acquisition Act 1894 is concerned and in particular sec. 23 of that Act. The difficulty which the appellants experienced at the time of advancing that argument was that sec. 11 (1) of the Act started with the words the local authority may acquire etc. Now therefore they realised that this acquisition was not by the local authority but by the Gujarat Housing Board and therefore they submitted that so far as sec. The difficulty which the appellants experienced at the time of advancing that argument was that sec. 11 (1) of the Act started with the words the local authority may acquire etc. Now therefore they realised that this acquisition was not by the local authority but by the Gujarat Housing Board and therefore they submitted that so far as sec. 11 (2) of the Act is concerned it should be read in such a manner that so soon as the land is acquired under the Land Acquisition Act 1894 from the Lands which are designated for a specific purpose in the development plan under any of the clauses (b) (c) (d) or (e) of sec. 7 the compensation should be worked out as per the Schedule as according to the appellants sec. 11 (2) of the Act would be attracted even if the lands were not acquired by the local authority and were acquired by some other authority. According to the submissions made what was necessary was that there should be a Development plan In that development plan if the lands are specified or designated for a purpose which is specified in clauses (b) (c) (d) or (e) of sec. 7 of the Act it is sufficient and the acquisition could be by a local authority or by any other authority. The result would be that the Schedule will come in to operation. To advance this argument further our attention was drawn to sec. 10 (2) of the Act which runs as under:"10 xxx xxx xxx (2) Where the development plan submitted by the local authority contains any proposals for the reservation of any land for a purpose specified in clause (b) or (D) of sec. 7 ant such land does not vest in the local authority the State Government shall not include the said purpose in the development plan unless it is satis fied that the local authority would acquire the land whether by agreement or compulsory purchase within ten years from the date on which the development plan comes into force". Sec. 11 (3) which we have reproduced earlier was also read before us. Having considered and having given our anxious thought to this argument we may only say that we are unable to agree to the submissions made for the reasons that will follow. Sec. 11 of the Act is required to be read as a whole. Sec. 11 (3) which we have reproduced earlier was also read before us. Having considered and having given our anxious thought to this argument we may only say that we are unable to agree to the submissions made for the reasons that will follow. Sec. 11 of the Act is required to be read as a whole. Sec. 11 (2) of the Act cannot be read in isolation. One has always to remember that when lands are designated under any of the clauses (b) (c) (d) or (e) of sec. 7 of the Act the lands 60 specified would be required by the local authority or by any other authority for which the lands are so specified. In this case the reservation was under sec. 7 (d) of the Act. The reservation was for Gujarat Housing Board. It eras not for a local authority. Sec. 84 of the Act clarified that if any land is included in a town planning scheme is needed for a public purpose other than that for which it is included in the scheme it may make a declaration to that effect in the official Gazette in the manner provided in sec. 6 of the Land Acquisition Act 1894 Now therefore this was not a case where the lands were specified for some purpose and they were needed for some other purpose. The lands were so specified clearly that they were needed for Gujarat Housing Board. They were not needed for any other purpose. It was clear that local authority never wanted to acquire that land. Sec 11 (3) of the Act makes it clear that if any designated land is not acquired by agreement within ten years from the date specified under sub-sec. (3) of sec. 10 or if proceedings under the Land Acquisition Act 1894 are not commenced within such period the owner or any person interested in the land may serve notice to the local authority and if within six months from the date of the service of such notice the and is not acquired or no steps as aforesaid are commenced for its acquisition the designation shall be deemed to have lapsed. Now this notice is required not for the lands needed by the local authority but this notice is required to be given in regard to the designated land and it could be given by the owner or any person interested in the Land. Now therefore sec. 11 (3) of the Act refers to the designated land. Now that designated land can be acquired by a local authority or by some other authority for whom the reservation is made. If sec. 11 of the Act is read as a whole it is clear that it is only when the local authority acquires the land the schedule would come into operation. The reason is obvious. As soon as the development plan is prepared and the designated is and is reserved for sore purpose everybody knows that the designated land is required by a particular authority. Now if therefore the local authority requires it the rate that would be given would not be the rate of the finalisation of the development plan but the rate on which the notification under sec. 6 of the Land Acquisition Act is issued. The same would be the case where the purpose is changed under sec. 84 of the Act. Now the lands under sec. 7 (b) (c) (d) or (e) of the Act could as well be acquired for other authorities. They could be so reserved. Not those authorities can never get issued any notification under section 6 of the Land Acquisition Act unless a notification under sec. 4 of the Land Acquisition Act is issued. It is true that in a case of this nature also the persons interested in the land are not deprived of any benefit because as soon as the lands are reserved for Gujarat Housing Board though persons interested cannot without the permission use that land for any other purpose their interests are safeguarded in two ways. Firstly the compensation would be worked out only from the date when the notification under sec. 4 of the Land Acquisition Act is issued which could be on any date within a period of 10 years. Again if the notification is not issued they are entitled to give a notice and ultimately the reservation would lapse and if during that period the prices have undergone a change they would get the benefit. In no case they would be losers. Their interests are sufficiently safeguarded. Again if the notification is not issued they are entitled to give a notice and ultimately the reservation would lapse and if during that period the prices have undergone a change they would get the benefit. In no case they would be losers. Their interests are sufficiently safeguarded. Merely because the lands are reserved for Gujarat Housing Board it may not follow that Gujarat Housing Board may ultimately decide to acquire the land. It may be that they may not acquire e the land at all for various reasons because several factors might intervene. But the day they decide and get the notification issued under sec. 4 of the Act which may be after a period of two years or five years the benefit to the claimants of these years do accrue because the price would be from that date. It is only when the local authority acquires the land the question of notification under sec. 6 of the Land Acquisition Act under the schedule would arise because the development plan itself would serve as a notice that the lands are required by the local authority. We may here refer to certain observations of the Supreme Court in the case of K. L. GUPTA v. Corporation Greater Bombay reported in AIR 1968 SC 303 . In part 14 of that judgment it has been observed as under:"the idea behind this sub-section is that if any land is to be set apart for public purposes such as parks etc. mentioned in Cl. (b) of sec. 7 or any other public purpose which might be approved by a local authority or directed by the State Government in terms of Cl. (e) of sec. 7 the State Government must examine whether it would be possible for the local authority to be able to acquire such land by private agreement or compulsory purchase within a period of ten years. This acts as a check on the local authority making too ambitious proposals for designating lands for public purposes which they may never have the means to full. It is obvious that the local authority must be given a reasonable time for the purpose and the legislature thought that a period of ten years was a sufficient one. Sec. 11 (1) empowers the local authority to acquire any land designated in the development plan for a purpose specified in Cl. It is obvious that the local authority must be given a reasonable time for the purpose and the legislature thought that a period of ten years was a sufficient one. Sec. 11 (1) empowers the local authority to acquire any land designated in the development plan for a purpose specified in Cl. (b) (c) (d) or (e) of sec. 7 either by agreement or under the land Acquisition Act. Under sub-sec. (2) of sec. 11 the provisions of the Land Acquisition Act of 1894 as amended by the Schedules to the Act are to apply to all such acquisitions. The Schedule to the Act shows that sec. 23 of the Land Acquisition Act is to stand amended for the acquisition under this Act with regard to the compensation to be awarded. In fact it is for the benefit of the person whose land is acquired as he can get the market value of the land at the date of the publication of the declaration under sec. 6 of the Land Acquisition Act in place of sec. 4. sub-sec. (8) provides that if the designated land is not acquired by agreement within ten years from the date specified under Sub-sec. (3) of sec. 10 or if proceedings under the Land Acquisition Act are not commenced within such period the owner or any person interested in the land may serve notice to the local authority and if within six months from the date of such notice the land is not acquired or no steps as aforesaid are commenced for its acquisition the designation shall be deemed to have lapsed. This provision again is for the benefit of the owner of the land for unless the land is acquired or steps taken in that behalf within the fixed limits of time he ceases to be bound by the designation of his land as given in the development plan. (emphasis supplied by us)"to our mind therefore sec. 11 of the Act contemplates only acquisition by the local authority and by no other authority for whose benefit the lands might have been reserved. We may also refer to another case State of Gujarat v. Shantilal reported in A. I. R. 1969 S. C. 634. In paragraph 53 of that judgment the observations made are as under:"our attention was invited to secs. We may also refer to another case State of Gujarat v. Shantilal reported in A. I. R. 1969 S. C. 634. In paragraph 53 of that judgment the observations made are as under:"our attention was invited to secs. 81 and 84 of the Bombay Town Planning Act 1955 Sec. 81 merely provides that the land needed for the purpose of a town planning scheme or development plan shall be deemed to be land needed for a public purpose within the meaning of the Land Acquisition Act 1894 This provision only declares what is implicit in the scheme of the Act. Sec. 84 only contemplates a special class of cases in which the land which is included in a town planning scheme is needed by the State Government for a public purpose other than that for which it is included in the scheme. in such a case the State Government the make a declaration to that effect and the provisions of the Land Acquisition Act 1894 as modified by the Schedule apply. We are not concerned in this case with any such notification issued by the Government nor has it any relevance to the question in issue". Thus reading secs. 11 and 84 of the Act with the Schedule it makes it abundantly clear that the benefit of sec. 6-notification would only be availed of by the claimants if the acquisition is by a local authority or the State Government changes the public purpose and after changing the purpose issues a notification under sec. 6 of the Land Acquisition Act 1894 but if the State Government does not change the purpose and the purpose remains the same as in this case and the Gujarat Housing Board for whose benefit the lands were reserved they only get the lands but the purpose cannot be said to have been changed and therefore it is neither a change in purpose nor an acquisition by a local authority and Therefore secs. 11 and 84 of the Act would not apply and when secs. 11 and 84 of the Act do not apply the question of applying the schedule does not arise. Appeals and cross-objections dismissed. .