SUPREME COURT OF INDIA
Union of India
Vs
Krishan Lal Arneja
Appeal (Civil) 2735 of 2004, Civil Appeal Nos.2736, 2738 and 2739 of 2004(Arising Out of S. L. P. (C) Nos. 9264/2003, 9263/2003 And 9265/2003)
HON'BLE JUSTICE SHIVARAJ V. PATIL AND HON'BLE JUSTICE D. M. DHARMADHIKARI
28/04/2004
JUDGMENT
SHIVARAJ V. PATIL, J.
Leave granted.
In these appeals, common order dated 22.3.2002 passed in Letters Patent Appeals by the Division Bench of High Court of Delhi, is under challenge. The facts leading to the filing of these appeals, in brief, are that:
In all, 14 properties including the properties in question in these appeals, were notified for acquisition on 6th March, 1987 under the provisions of Section 4 and Section 17(1)&(4) of the Land Acquisition Act, 1894 (for short 'the Act'). Earlier these properties were requisitioned by the appellants under the Defence of India Rules. The provisions of the Requisitioning and Acquisition of Immovable Property Act, 1952 (for short '1952 Act') were going to lapse on 10th March, 1987. These properties were occupied either for offices or for providing residential quarters to the officers. Out of these 14 properties, Banwari Lal and Sons and Shakuntala Gupta had questioned the validity of acquisition proceedings pertaining to property no. 6, Ansari Road, Dariyaganj
, New Delhi and property no. 2, Underhill Road , Delhi, respectively by filing separate writ petitions. The writ petitions were allowed and acquisition proceedings were quashed including the above-mentioned notification of 6th March, 1987. These matters attained finality having reached this Court. The respondents in these appeals filed writ petitions challenging the acquisition of their properties under the very notification. Learned Single Judge of the High Court allowed the writ petitions. The appellants questioned the correctness and validity of the orders made by learned Single Judge in the Letters Patent Appeals, which were dismissed by the impugned order mainly following earlier judgments in the cases of Banwari Lal and Sons and Shakuntala Gupta.
The learned senior counsel for the respondents raised a preliminary objection
as to the very maintainability of these appeals on the ground that the
controversy raised and the contentions sought to be urged in these appeals are
fully covered against the appellants by the judgment of this Court in Union of
India & Ors. vs. Shakuntala Gupta (Dead) by Lrs. [ 6]. The learned senior counsel for the appellants,
however, did not agree and sought to argue these appeals on merits raising
various contentions stating that the decisions in Shakuntala Gupta (supra) and
Banwari Lal & Sons Pvt. Ltd. vs. Union of India & Ors [DRJ 1991 (Suppl)
317] are distinguishable on facts and that certain questions of law, which go
to the root of the matter, were neither urged nor decided in the aforementioned
two cases. Hence, we heard the learned counsel for the parties on either side
at length.
The contentions advanced on behalf of the appellants were: (1) that Banwari
Lal's case was wrongly decided and further it was on its own facts being
property specific; Banwari Lal's case was not a precedent as no reasoned order
was made by this Court inasmuch as the petition was dismissed at the SLP stage
itself; (2) Non-mentioning of the nature and existence of urgency in the
notification issued under Sections 4 and 17 of the Act does not vitiate the
notification; subjective satisfaction as regards urgency could not be
determined solely on the basis of the expressions used in the notification and
such urgency could be gathered looking to the surrounding circumstances and the
records which would show the urgency for the acquisition; (3) pre and post
notification delay would not affect the notification on account of lethargy of
the officers and such delay would not render the exercise of power to invoke
urgency clause invalid where there was a grave urgency on account of shortage
of Government housing; (4) the High Court committed a serious error in
appointing the arbitrator to determine the damages in the absence of any
arbitration agreement and there being no prayer in that regard in the writ
petition; (5) correctness of the order in Banwari Lal's case was not considered
in Shakuntala Gupta's case; paras 11, 12 and 15 in Shakuntala Gupta's case in
review must be read together to understand the correct legal position; (6)
alternatively, notification as regards Section 17(1), could be quashed
sustaining it only to the extent of Section 4(1) of the Act.
The learned senior counsel for the respondents made submissions supporting the
impugned judgment. They contended that Banwari Lal's case was correctly
decided. The orders of this Court in Shakuntala Gupta affirm the legal position
stated in Banwari Lal. Hence the same result rightly followed in the writ
petitions filed by the respondents in these appeals. The High Court was right
and justified in passing the impugned common judgment affirming the order of
the learned Single Judge having regard to the decision already rendered in Banwari
Lal's case in regard to the same common notification; if a different view is
taken at this stage, particularly after the decision in Shakuntala Gupta's case
in the main appeal as well as in review, it will lead to anomalous result
leading to conflict of decisions, i.e., the very same notification stands
quashed in respect of some writ petitioners which has attained finality by
virtue of affirmation of the said order by this court in Banwari Lal and
Shakuntala Gupta and in regard to other writ petitions filed by the present
respondents, it will have to be sustained. If that be so, it will result in
treating similarly placed persons differently on same set of facts. The learned
senior counsel further urged that non-compliance of Section 17(3A) is yet another
ground for quashing notification; strict compliance of sub- section (3A) of
Section 17 is mandatory. According to them, in these cases even on the facts
and circumstances found, there was neither material nor justification to invoke
urgency clause; they made submissions distinguishing decisions relied on behalf
of the appellants having regard to the facts of those cases and the points that
arose for consideration. It was also their contention that the appellants
having been in possession of the properties, there was no reason to invoke
urgency clause to take immediate possession; at best, after the expiry of the
1952 Act as amended by Act No. 20 of 1985, the appellants continuing in
unauthorized possession, could be made to pay damages or compensation for the
period during which they unauthorisedly continued to be in possession. They
also submitted that this Court sustained the appointment of arbitrator to
determine the damages made in earlier decisions and having taken note of the
same, as can be seen from the impugned common judgment in these appeals; almost
after 17 years, it may not be just and equitable to direct the parties to
approach civil court for claiming damages. The learned counsel submitted that
Shakuntala Gupta's case is concluded on facts and in law in relation to the
very same notification against the appellants. In SLP No. 9264/2003, the ground
of delay in filing writ petition is not raised; the learned Single Judge did
not find delay as a good ground for rejecting the writ petition on the facts
and circumstances. The Division Bench in the LPA agreed with the learned Single
Judge.
In reply, the learned counsel for the appellants submitted that non-compliance
of sub-section (3A) of Section 17 may affect the possession and not the
acquisition; on account of such non-compliance, party may be entitled for
interest under Section 23A of the Act; it would also not lead to returning
possession of the property.
We have carefully considered the respective submissions made by the learned
counsel for the parties. The notification issued on 6.3.1987 which was the
subject matter of challenge in the writ petitions reads:
"NOTIFICATION
Dated 5.3.1987
No. F.7(9)/86-L&B: (1) Whereas it appears to the Governor Delhi that the
lands/properties are likely to be required to be taken by the government at the
public expense for the following public purposes. It is hereby notified that
the land in the locality described below is likely to be required for the above
purpose.
This notification is made under the provisions of Section 4 of the Land
Acquisition Act, to all whom it may concern.
In exercise of the powers conferred by the aforesaid section, the Lt. Governor
is pleased to authorize the officers for the time being engaged in the
undertaking with their servants and workmen to enter upon and survey any land
in the locality and do all other acts required or permitted by that section.
The Lt. Governor, being of the opinion that the provisions of sub-section (1) of
section 17 of the said Act are applicable to this land is further pleased under
sub- section 4 of the said section, to direct that the provisions of section 5A
shall not apply.
SPECIFICATION
Sl. No. Property Total Area Field or boundaries No. Purpose of acquisition
12345
1. 95, Lal Kothi Jatwara Mohalla 321 sq. mts. East Kutab Road, West House of Sh. Tej Ram, North
Gali, South Shops. Residential use of Govt. servants
2. 8 A.Kamla Nagar Delhi 285 sq. mtrs. East Road, West G.T. Road, North Property No. 7A
South Property No.9-A Housing the govt. offices
3. 301, Okhla New Delhi 106 sq. mtrs. East Gali West House No. 76/1, Dispensary, North Road,
South House NO. 301-A Setting up of dispensary
4.
15, Alipur Road & Civil Station,
Big - Bis 7 - 12
Khasra No. 537 Min. 7 bigha 610 Min. 12 Biswas
Housing the govt. offices
5.
1 Rajpur Road Civil Station
10 - 13
981/500 big-bis 0 - 05 10-08
Housing the govt. office & govt. servants
6.
15 Rajpur road Civil Station
475
11 - 10
Housing the govt. offices
7.
2, Under Hill Road, Delhi
11-740 sq. mts.
East Kothi No. 16, Alipur Road, West K. No. 4 Road, South K. No. 4 & 6 Under Hill Road
Housing the govt. office
8.
60/21, Ramjas Road, Delhi
475 sq. mts.
East Ramjas Raod West 60/2, North Street, South Road
Residential use of govt. servant
9.
30, Rohtak Road 1087 Delhi
1087 sq. mts.
East Plot No. 29 West Plot No. 31 North Road South Gali
Residential use of govt. servants.
10.
11, Lencer Road Delhi
1125 sq. mts.
East K. No. 1 West K. No. 10-A North service Land . South Road
Housing the govt. offices
11.
3, Tilak Marg
East Old Qila Road, West
East Old Qila Road West Tilak Marg Road North Police Station, South Rajdootawas Kothi No. 1
Housing the govt. offices
12.
6 Ansari Road, Daryaganj, Delhi
5592 sq. yds.
East Land, West Electric Transformers Station and Ansari Road, North Masjid Ghat Road, South K. No. 5
Residential use of govt. servants
13.
97, Daryaganj Delhi.
320 sq. yds.
Eat Road, West Sham Lal Road North-Kothi No. 96 South - Kothi No. 98
for residential use of govt. servants.
14.
M.C. No. 500 to 507, Ward No. IX/6062, Gandhi Nagar (4 set of Old Police Station, Gandhi Nagar, Seelampur)
1595 sq. yds
East-House, West Gali, North-Gali South - Gali
Housing the govt. offices
By order
Sd/-
(Mrs. Neeru Singh)
Joint Secretary (L&B)
Delhi Administration, Delhi".
Under this notification, 14 properties were sought to be acquired.
Banwari Lal and Sons filed writ petition No. 2385/88 seeking quashing of the
aforesaid notification in respect of property 6, Ansari Road, Darya Ganj,
Delhi. The purpose of acquisition of this property was mentioned as for "residential
use of government servants". This property No. 6 Ansari Road, Dariya Ganj
measures 5592 sq. yds., with built up area of about 6, 000 sq. ft. It is
situated in the main commercial centre of Delhi and was being used all along
for commercial purpose by Bharat Bank and then by the American Embassy for
running the United States Information Centre. On 27.9.1950, four flats out of
the said building were acquisitioned by the Delhi Administration under the
provisions of Requisitioning and Acquisition of Immovable Property Act, 1952.
Further on 13.3.1959, remaining building along with the garages, warehouses and
other structures was requisitioned by the Administration under the same Act.
The building continued under the requisition till the said Act lapsed on
10.3.1987. It may be recalled that notification under Section 4 read with
Section 17(1)&(4) of the Act was issued on 6.3.1987 for acquiring 14
properties including this building, 6 Ansari Road, Darya Ganj, Delhi. On
10.3.1987, Delhi Administration issued notification under Section 6 of the Act
and issued a letter to the Collector to take possession of the property within
15 days. Thereafter the Administration proposed to the writ petitioners that
the building be given on lease and the negotiations for lease were continued
for long. The officers of the Administration continued to stay in the building
for over 20 months. Suddenly, the Administration decided to proceed with land
acquisition after a period of 20 months. At that stage, the above-mentioned writ
petition was filed. On 25.11.1988, the High Court directed that the possession
of the building was not to be taken by the Administration under Section 17 of
the Land Acquisition Act but the acquisition proceedings could go on.
Thereafter, award was passed fixing compensation at Rs. 77, 11, 230.60.
Petitioners were ready to receive the compensation under protest but the
Administration did not make the payment. It also did not offer the payment of
80% of the proposed compensation under Section 17(3A) of the Act. Mainly three
grounds were urged in the writ petition : (1) the notification issued under
Section 4 and Section 17 did not indicate the urgency for taking possession
and, therefore, the same was vitiated in law; petitioners were illegally
deprived of their right to raise objections and inquiry under Section 5A of the
Act; (2) the Administration could not acquire commercial building for
residential purpose; (3) that the whole exercise of acquisition of the building
was a fraud on the powers under the Act. On behalf of the Administration, it
was contended that the building was urgently needed for the residence of the
officers, the building was being used for residential purpose for a long time
and for payment of amount under sub-section (3A) of Section 17, steps had been
taken for securing the sanction. The High Court dealing with the contentions
raised in the said writ petition held that there was no whisper in the
notification as to what was the urgency to take immediate possession and to
deny the right of raising objections under Section 5A of the Act; the building
was already in occupation of the officers of the Delhi Administration and the
Administration knew that the Requisitioning and Acquisition of Immovable
Property Act, 1952 was to lapse on 10.3.1987; they had sufficient time to make
alternate arrangements for the residence of the officers and that there was no
urgency whatsoever for invoking the provisions of Section 17(1)&(4) of the
Act. The court also held that Section 17(1) could not be utilized to cover up
the laxity and lethargy of the Administration in taking appropriate steps for
securing alternate accommodation for its officers. The notification was also
held bad in law for non- compliance of the requirement of Section 17(3A) of the
Act, in that the Collector did not tender 80% of the compensation of the land
as estimated by him before taking possession of the land and that the Delhi
Administration had no explanation for the non- compliance of Section 17(3A)
except saying that process of sanction had been initiated by them. The High
court also held that issuing of notification under Section 17(1) was a fraud on
the powers. In that view, the notification was quashed and direction was given
to hand over the peaceful physical possession of the building to the
petitioner. An arbitrator also was appointed to determine the damages payable
by Administration having taken note of the facts and to avoid further delay.
The Union of India and Ors. filed SLP No. 4458/91, aggrieved by this order of
the High Court dated 4.2.1991 made in the writ petition. The SLP was dismissed
on 21.3.1991 by passing the following order:-
"In the facts and circumstances of the case, we do not find any good
ground to interfere with the impugned order of the High Court. The Special
Leave Petition is accordingly dismissed.
Although we have dismissed the petition but having regard to the fact that
public servants are residing in the premises in dispute and their immediate
dispossession may cause injury to public interest, we allow the petitioners to
continue in possession till 31.3.1993 provided the petitioners file an
undertaking in this Court within three weeks with usual conditions to hand over
the vacant possession of the premises including the servant quarters on or
before 31.3.1993, we further make it clear that the Arbitrator appointed by the
High Court may give award and the same may be filed before the High Court for
appropriate orders." $ *
(emphasis supplied)
Shakuntala Gupta filed writ petition No. 894 of 1987 inter alia raising similar
contentions as were raised in Banwari Lal case (supra). The High Court allowed
the said writ petition and quashed the notification following the order made in
the case of Banwari Lal and Sons aforementioned. The Union of India and Ors.
filed Civil Appeal No. 518 of 1998 before this Court by special leave. This
Court disposed of the said appeal on 14.11.2000 observing thus:-
"The High Court quashed the impugned notification by following its earlier
decision in Banwari Lal & Sons vs. Union of India decided on 4th February,
1991 in which this very notification was quashed. It is not in dispute that
subject matter including the notification under Land Acquisition were the same
except that in Banwari Lal it was the government housing for the officers while
in the present case it is housing for the offices. The said decision of the
High Court stood confirmed when this Court dismissed the SLP filed by the Union
of India. We do not find any sustainable ground raised in the present appeal to
make any distinct or difference from the one in the case of Banwari Lal and
Sons. Accordingly, there is no error committed by the High Court in making the
decision and dismissing the same. Accordingly the present appeal has no merits
and it is dismissed." *
Further Union of India and Ors. filed a review petition (c) No. 74 of 2001 in
aforementioned appeal No. 518/98. The review petition was disposed of on
27.8.2002 by a considered order in the light of contentions urged and arguments
advanced extensively. The said order is reported as Union of India and Ors vs.
Shakuntala Gupta (Dead) by Lrs. [ 6].
The learned counsel for the respondents heavily relied on this decision and
contended that it fully covers the case against the appellants; in view of the
same, it is not open to the appellants particularly being the parties to the
said decision, to re-agitate on the same issue again when the notification
being composite one in respect of all 14 properties sought to be acquired under
it and when the ground of urgency was also common in respect of all the 14
properties. But according to the learned counsel for the appellants, the
correctness of decision in Banwari Lal is not decided in this case and it is
clearly distinguishable in applying to the facts of the cases in these appeals.
In other words, the decision in Shakuntala Gupta is confined to its own facts.
In the light of these submissions and that this decision will have great
bearing on the question in deciding these appeals whether urgency clause could
be invoked under Section 17(1)&(4) of the Act, the notification being
composite one in respect of all 14 properties including the properties which
are the subject matter of these appeals, we will refer to the decision in
greater details. In the case of shakuntala Gupta, part of the premises known as
Grand Hotel situated at No. 2, Underhill Road, Delhi, had been requisitioned on
3.4.1980 under the Requisition and Acquisition of Immovable Property Act, 1952,
which lapsed on 10.3.1987. On 6.3.1987, the very same notification, which is
also the subject matter of these appeals, was issued under Section 4 read with
Section 17(1) and (4) of the Act. In this notification, 14 properties were
specified to which it applied. This notification also indicated purpose for
which each property was sought to be acquired, the purpose being either
"housing the Govt. office" or "for residential use of Govt.
servants".
Shakuntala Gupta challenged the notification issued under Section 4 read with
Section 17(1)&(4) as well as the declaration made under Section 6 of the
Act under Article 226 of the Constitution of India before the High Court. As
already stated above, Banwari Lal and Sons Pvt. Ltd., the owner of one of the
14 properties specified in the notification, also filed writ petition in the
High Court impugning the same notification inter alia urging that there was no
urgency to dispense with the right of the owner to file objections and inquiry
under Section 5A of the Act.
Banwari Lal's writ application was allowed on 4.2.1991 quashing the impugned
notification upholding the contentions urged on behalf of Banwari Lal including
the issue of urgency. The SLP filed against the decision of the High Court in
Banwari Lal case was dismissed by this Court on 21.3.1991. The appellants vacated
the Banwari Lal's premises pursuant to the order of this Court made on
21.3.1991. The Division Bench of the High Court disposed of Shakuntala Gupta's
writ petition following Banwari Lal's case quashing the impugned notification.
In the SLP filed against the said order by the appellants, leave was granted on
19.1.1998 and hearing of the appeal was expedited. The appeal was duly listed
for hearing from time to time and ultimately on 14.11.2000, the appeal was
disposed of by a reasoned order, relevant portion of which is already extracted
in the earlier paragraph. Later the appellants made an application for
recalling the order dismissing the appeal on the ground that it was disposed of
without hearing them. On 10.1.2001, accepting the request of the appellants,
the application made for recalling the order dated 14.11.2000 was treated as a
review petition and the review petition was accordingly heard. In support of
the review petition, relying on the decisions of this Court in Aflatoon &
Ors. vs. Lt. Governor of Delhi & Ors. [ ], Deepak Pahwa & Ors. vs.
Lt. Governor of Delhi & Ors. [ ], Satendra Prasad Jain & Ors. vs.
State of U.P. & Ors. [ ] and Chameli Singh & Ors. vs. State of
U.P. & Anr. [ ], it was urged that the principles of law enunciated in
Banwari Lal's case no longer held the field. On that basis, it was contended
that the decision of the High Court quashing the impugned notification by
following Banwari Lal's decision was erroneous. Opposing the review petition,
it was urged that the review petition itself was not maintainable as there was
no error apparent on the face of the record; the same notification stood
quashed in Banwari Lal's case; since the impugned notification had been quashed
on a general ground which did not specifically relate to a particular
petitioner, the quashing of the notification must enure to the benefit of all
persons affected by that notification. In support of this, reliance was placed
on Abhey Ram (Dead) by LR. & Ors. vs. Union of India & Ors. [ 9] and Delhi Administration vs. Gurdip Singh Uban &
Ors. [ ]. The review petition was disposed of on 27.8.2002 since reported
in [ 6]. To appreciate the rival submissions
as to the implication and understanding of this judgment, it is necessary to
reproduce paras 12, 13 and 15 of the judgment which read:-
"12. The matter has been argued extensively. We therefore do not
propose to reject the application on the ground that the review application
should not at all be entertained. It is also not necessary to consider whether
the decision in Banwari Lal (Banwari Lal & Sons (P) Ltd. v. Union of India,
DLJ 1991 Supp 317) correctly enunciates the principles of law as to
acquisitions under Section 17 of the Act as we are of the view that the order
of this Court dated 14-11-2000 was, in the circumstances of the case, correct.
13. It appears that the petitioners have proceeded on the basis that the
acquisition sought to be effected by the impugned notification under Section 4
had been invalidated in respect of other specified properties by the decision
of this Court in Banwari Lal case. The statement in the respondent's affidavit
that several of the properties covered by the same notification have since been
returned by the petitioners to the original owners has not been disputed by the
petitioners. Furthermore, the High Court in the decision impugned before us has
also noted:
"It is also not disputed that under the impugned notifications neither an
award has been made nor any compensation is determined and paid. The reason
being that the impugned notifications were quashed and set aside in Banwari Lal
case.
14 .......................................
15. In any event the order dated 14-11-2000 was not legally erroneous. The
notification under Section 4 was a composite one. The "opinion" of
the Lt. Governor that the provisions of Section 17(1) of the Act were
applicable, as expressed in the last paragraph of the impugned notification,
was relatable in general to the 14 properties specified in the notification.
The impugned notification was quashed in Banwari Lal case (Banwari Lal &
Sons (P) Ltd. v. Union of India, DLJ 1991 Supp 317) inter alia on the ground
that the "opinion" of the Lt. Governor as expressed in the
notification was insufficient for the purpose of invoking the provisions of
Section 17(1) of the Act. This ground was not peculiar to the premises in
Banwari Lal case (Banwari Lal & Sons (P) Ltd. v. Union of India, DLJ 1991
Supp 317) but common to all fourteen properties. The urgency sought to be
expressed in the impugned notification cannot be held to be sufficient for the
purposes of Section 17(1) in this case when it has already been held to be bad
in Banwari Lal case. (Abhey Ram v. Union of India, (1997) 5 SCC 421; Delhi
Admn. v. Gurdip Singh Uban, (2000) 7 SCC 296). The expression of urgency being
one cannot be partly good and partly bad like the curate's egg. It must follow
that the acquisition in respect of the respondent's premises as mentioned in
the notification which were sought to be acquired on the basis of such invalid
expression of "urgency" cannot be sustained." $ * (emphasis
supplied)
It is needless to repeat that a judgment need not be read and interpreted as a
statute and that a judgment should be read and understood in the context of the
facts of case and looking to the ratio. The sentence in paragraph 12, extracted
above, that "It is also not necessary to consider whether the decision in
Banwari Lal correctly enunciates the principles of law as to acquisitions under
Section 17 of the Act as we are of the view that the order of this Court dated
14.11.2000 was, in the circumstances of the case, correct", * has
reference to enunciation of principles of law in relation to Section 17 as to
the expression of urgency as stated in Banwari Lal, i.e., to whether the
existence of urgency and expression of urgency must be specifically stated in
the notification issued under Section 4(1) read with Section 17(1) of the Act
and if not whether the notification is vitiated. In view of the later decisions
of this Court, even in the absence of stating as to the existence of urgency or
express statement as to urgency, the issue of urgency could be justified on the
basis of the surrounding circumstances and the records available at the time of
subjective satisfaction of authorities to invoke the aid of Section
17(1)&(4). It is in that context that the statement is made in para 12 not
with regard to the validity of the impugned common notification in respect of
all the 14 properties which fact is abundantly clear from what is stated
specifically in para 15 of the judgment extracted above in relation to
sustainability of the impugned notification or otherwise in respect of one or
other property. On this basis, the court had held that the expression of
urgency in the common notification being general to all 14 properties could not
be sustained in respect of any particular property, on the ground that the
expression of urgency being one and the same cannot be partly good and partly
bad. In the same para, the decision in Banwari Lal that the impugned common
notification was bad, is accepted. As is evident from paragraph 13 that
pursuant to the impugned notification, neither any award was passed nor any
compensation was determined and paid on the ground that the impugned
notification was quashed and set aside in Banwari Lal case. This only indicates
that even the appellants understood the impugned notification as a common and
composite notification in respect of all the 14 properties. The ground of
urgency also being common, it is not possible to accept that the decision
rendered in the cases of Banwarl Lal or Shakuntala Gupta on the question of
urgency was properties specific. The decision in Banwari Lal and Shakuntala
Gupta of this Court in relation to the same notification may not be binding on
principle of res judicata. The argument, however, cannot be accepted that those
decisions are not binding being 'properties specific' in those cases. In our
considered opinion, the decisions are binding as precedents on question of
validity of the notification, which invokes urgency clause under Section 17 of
the Act. We find ourselves in full agreement with the ratio of the decisions in
those cases that urgency clause, on the facts and circumstances, which are
similar to the present cases, could not have been invoked. The two decisions
are, therefore, binding as precedents of this Court. We are not able to find
any distinction or difference as to the ground of urgency in regard to the
properties covered by these appeals. #
In the order disposing of the appeal on 14.11.2000, it is clearly stated that
the High Court quashed the impugned notification following its earlier decision
in Banwari Lal's case; the subject matter including the notification under the
Act was the same except that in Banwari Lal's case, it was the Govt. housing
for the officers while in the Shakuntala Gupta's case, it is housing for the
offices. No sustainable ground was found in the appeal to make any distinction
or difference between the case of Banwari Lal and Shakuntala Gupta. In review,
this order was not disturbed. In Banwari Lal's case on the facts found and
looking to the circumstances in the background of lapsing of the Requisitioning
Act and taking note of laxity and lethargy on the part of the officers, the
Court concluded that there existed no urgency to invoke Section 17(1) of the
Act. This notification was struck down not merely on the ground that the
existence of urgency is not stated in the impugned notification. The ground of
urgency was common to all 14 properties. It is not the case that the ground of
urgency was different in respect of different properties which fact is clear
from the composite notification. Further it was also not shown either in
Banwari Lal's case or in hakuntala Gupta's case if the ground of urgency was
different in respect of different properties. In this view and looking to what
is stated in paragraph 15, extracted above, we find substantial force in the
preliminary objection raised on behalf of the respondents. However, in the
light of arguments advanced at length, we wish to deal with them.
The provisions of the Act, to the extent they are relevant, are reproduced
hereunder:-
"Section 4 - Publication of preliminary notification and powers of
officers thereupon -
(1) Whenever it appears to the (appropriate Government) that land in any
locality (is needed or) is likely to be needed for any public purpose (or for a
company) a notification to that effect shall be published in the Official
Gazette ( and in two daily newspapers circulating in that locality of which at
least one shall be in the regional language) and the Collector shall cause
public notice of the substance of such notification to be given at convenient
places in the said locality (the last of the dates of such publication and the
giving of such public notice, being hereinafter referred to as the date of the
publication of the notification).
(2) Thereupon it shall be lawful for any officer, either generally or specially
authorized by such Government in this behalf, and for his servants and workmen,
- to enter upon and survey and take levels of any land in such locality; to dig
or bore in the subsoil; to do all other acts necessary to ascertain whether the
land is adapted for such purpose; to set out the boundaries of the land
proposed to be taken and the intended line of the work (if any proposed to be
made thereon);
to make such levels, boundaries and line by placing marks and cutting trenches;
and where otherwise the survey cannot be completed and the levels taken and the
boundaries and lines marked, to cut down and clear away any part of the
standing crop, fence of jungle;
provided that no person shall enter into any building or upon any other
enclosed court or garden attached to a dwelling house (unless with the consent
of the occupier thereof) without previously giving such occupier at least seven
days' notice in writing of his intention to do so." *
"Section 5A - Hearing of objections -
(1) Any person interested in any land which has been notified under Section 4,
sub- section (1), as being needed or likely to be needed for a public purpose
or for a company may, within thirty days from the date of the publication of
the notification, object to the acquisition of the land or of any land in the
locality, as the case may be.
(2) Every objection under sub-section (1) shall be made to the Collector in
writing, and the Collector shall give the objector an opportunity of being
heard in person or by any person authorized by him in this behalf or by pleader
and shall, after hearing all such objections and after making such further
inquiry, if any, as he thinks necessary, either make a report in respect of the
land which has been notified under Section 4, sub- Section (1), or make
different reports in respect of different parcels of such land, to the appropriate
Government, containing his recommendations on the objections, together with the
record of the proceedings held by him, for the decision of that Government. The
decision of the Appropriate Government on the objections shall be final.
(3) For the purpose of this section, a person shall be deemed to be interested
in land who would be entitled to claim an interest in compensation if the land
were acquired under this Act." *
"Section 17 - Special powers in cases of urgency -(1) In cases of urgency,
whenever the Appropriate Government so directs, the collector, though no such
award has been made may, on the expiration of fifteen days from the publication
of the notice mentioned in section 9, sub-section (1), [take possession of any
land needed for a public purpose]. Such land shall thereupon vest absolutely in
the Government, free from all encumbrances.
(2) Whenever owing to any sudden change in the channel of any navigable river
or other unforeseen emergency, it becomes necessary for any Railway Administration
to acquire the immediate possession of any land for the maintenance of their
traffic or for the purpose of making thereon a river-side or ghat station, or
of providing convenient connection with or access to any such station, [or the
appropriate Government considers it necessary to acquire the immediate
possession of any land for the purpose of maintaining any structure or system
pertaining to irrigation, water supply, drainage, road communication or
electricity, ] the Collector may, immediately after the publication of the
notice mentioned in sub-section (1) and with the previous sanction of the
appropriate Government, enter upon and take possession of such land, which
shall thereupon vest absolutely in the Government free from all encumbrances;
Provided that the Collector shall not take possession of any building or part
of a building under this sub-section without giving to the occupier thereof at
least forty-eighty hours' notice of his intention so to do, or such longer
notice as may be reasonably sufficient to enable such occupier to remove his
movable property from such building without unnecessary inconvenience.
(3) ................................
(3A) Before taking possession of any land under sub-section (1) or sub-section
(2), the Collector shall, without prejudice to the provisions of sub-section
(3), -
(a) tender payment of eighty per centum of the compensation for such land as
estimated by him to the persons interested entitled thereto, and
(b) pay it to them, unless prevented by some one or more of the contingencies
mentioned in section 31, sub-section (2), and where the Collector is so
prevented, the provisions of section 31, sub-section (2), (except the second
proviso thereto), shall apply as they apply to the payment of compensation
under that section.
(3B) ..............................
(4) In the case of any land to which, in the opinion of the appropriate
Government, the provisions of sub-section (1), or sub-section (2) are
applicable, the appropriate Government may direct that the provisions of
section 5A shall not apply, and, if it does so direct, a declaration may be
made under section 6 in respect of the land at any time [after the date of the
publication of the notification under section 4, sub- section (1)." *
These provisions clearly provide protection to a person whose land is to be
acquired by providing right to object to the proposed acquisition of any land
notified under Section 4; opportunity of hearing is also provided to show that
the proposal to acquire the land was unwarranted; such opportunity available
under Section 5A cannot be denied except in case of urgency. Section 17 confers
extraordinary powers on the authorities under which it can dispense with the
normal procedure laid down under Section 5A of the Act in exceptional case of
urgency. Such powers cannot be lightly resorted to except in case of real
urgency enabling the Government to take immediate possession of the land
proposed to be acquired for public purpose. A public purpose, however, laudable
it may be, by itself is not sufficient to take aid of Section 17 to use this
extraordinary power as use of such power deprives a land owner of his right in
relation to immoveable property to file objections for the proposed acquisition
and it also dispenses with the inquiry under Section 5A of the Act. The
Authority must have subjective satisfaction of the need for invoking urgency
clause under Section 17 keeping in mind the nature of the public purpose, real
urgency that the situation demands and the time factor i.e. whether taking
possession of the property can wait for a minimum period within which the
objections could be received from the land owners and the inquiry under Section
5A of the Act could be completed. In other words, if power under Section 17 is
not exercised, the very purpose for which the land is being acquired urgently
would be frustrated or defeated. Normally urgency to acquire a land for public
purpose does not arise suddenly or overnight but sometimes such urgency may
arise unexpectedly, exceptionally or extraordinarily depending on situations
such as due to earthquake, flood or some specific time-bound project where the
delay is likely to render the purpose nugatory or infructuous. A citizen's
property can be acquired in accordance with law but in the absence of real and
genuine urgency, it may not be appropriate to deprive an aggrieved party of a
fair and just opportunity of putting forth its objections for due consideration
of the acquiring authority. While applying the urgency clause, the State should
indeed act with due care and responsibility. Invoking urgency clause cannot be
a substitute or support for the laxity, lethargy or lack of care on the part of
the State Administration.
Life of Requisitioning and Acquisition of Immovable Property Act, 1952 was
extended from time to time by various amending Acts. Finally by Act No. 20 of
1985, the period was extended to retain the properties under the said Act for a
maximum period of two years which expired on 10.3.1987. The Statement of Objects
and Reasons of this Act - No. 20 of 1985 are as follows:-
According to the provisions of the Requisitioning and Acquisition of Immovable
Property Act, 1952 as these existed immediately before the amendment of the Act
by ordinance No. 2 of 1985, all the properties, which were requisitioned prior
to the amendment of the aforesaid Act in 1970, were required to be released
from requisition or acquired by the 10th March, 1985. However, it was found
that some of the properties requisitioned under the above Act are required to
be retained by the Ministry of Defence, Ministry of Works and Housing and also
some other Ministry/Department and Delhi Administration for public purposes.
Although Government is expeditiously implementing the policy of acquiring or
releasing from requisition the requisitioned properties, a number of them are
expected to be needed by the Government even after the 10th March, 1985, for
public purposes. The Ministry of Defence is taking action for either releasing
or acquiring the requisitioned properties (including land). Similarly, in the
case of Ministry of Works and Housing, the need to continue the properties
under requisition beyond the aforesaid date is due to shortage of office
accommodation for various Ministry/Departments and also due to a few cases
being under adjudication by courts of law. The Ministry of Works and Housing
has constructed a new office building in Calcutta for the Govt. offices located
in requisitioned properties and, therefore, most of the requisitioned
properties in Calcutta are expected to be released from requisition shortly. An
office building is nearing completion in New Bombay also and the same is likely
to be allotted as alternative accommodation to the eligible offices located in
requisitioned properties. It was, therefore, decided to extent the maximum
period for which properties could be retained under requisition by a period of
two years.
2. ................................
3. In the circumstances stated above, the Act was amended through the
Requisitioning and Acquisition of Immovable Property (Amendment) Ordinance,
1985 (2 of 1985) so as to extend the period for which the properties could be
retained under requisition by two years and to provide for revision of the
recurring part of the compensation." (emphasis supplied)
This Court in the case of H.D. Vora vs. State of Maharashtra & Ors. ]
dealing with the scope of Requisitioning and Acquisition of Immovable Property
Act, 1952 in relation to length of the period for which the properties
requisitioned could be continued, has observed thus:-
"The two concepts, one of requisition and the other of acquisition are
totally distinct and independent.
Acquisition means the acquiring of the entire title of the expropriated owner
whatever the nature and extent of that title may be. The entire bundle of
rights which was vested in the original holder passes on acquisition to the
acquirer leaving nothing to the former. Vide : Observations of Mukherjee, J. in
Chiranjit Lal case (Chiranjit Lal v. Union of India, 1950 SCR 869 : AIR 1951 SC
41). The concept of acquisition has an air of permanence, and finality in that
there is transference of the title of the original holder to the acquiring
authority. But the concept of requisition involves merely taking of "domain
or control over property without acquiring rights of ownership" and must
by its very nature be of temporary duration. If requisitioning of property
could legitimately continue for an indefinite period of time, the distinction
between requisition and acquisition would tend to become blurred, because in
that event for all practical purposes the right to possession and enjoyment of
the property which constitutes a major constituent element of the right of
ownership would be vested indefinitely without any limitation of time in the
requisitioning authority and it would be possible for the authority to
substantially take over the property without acquiring it and paying full
market value as compensation under the Land Acquisition Act, 1894. We do not
think that the Government can under the guise of requisition continued for an
indefinite period of time, in substance acquire the property, because that
would be a fraud on the power conferred on the government. If the Government
wants to take over the property for an indefinite period of time, the
Government must acquire the property but it cannot use the power of requisition
for achieving that object. The power of requisition is exercisable by the
Government only for a public purpose which is of a transitory character. If the
public purpose for which the premises are required is of a perennial or
permanent character from the very inception, no order can be passed
requisitioning the premises and in such a case the order of requisition, if
passed, would be a fraud upon the statute, for the Government would be
requisitioning the premises when really speaking they want the premises for
acquisition, the object of taking the premises being not transitory but
permanent in character. Where the purpose for which the premises are required
is of such a character that from the very inception it can never be served by
requisitioning the premises but can be achieved only by acquiring the property
which would be the case where the purpose is of a permanent character or likely
to subsist for an indefinite period of time, the Government may acquire the
premises but it certainly cannot requisition the premises and continue the
requisitioning indefinitely. Here in the present case the order of requisition
was made as far back as April 9, 1951 and even if it was made for housing a
homeless person and the appellant at that time fell within the category of
homeless person, it cannot be allowed to continue for such an inordinately long
period as third years. We must therefore hold that the order of requisition
even if it was valid when made, ceased to be valid and effective after the
expiration of a reasonable period of time. It is not necessary for us to decide
what period of time may be regarded as reasonable for the continuance of an
order of requisition in a given case, because ultimately the answer to this
question must depend on the facts and circumstances of each case but there can
be no doubt that whatever be the public purpose for which an order of
requisition is made, the period of time for which the order of requisition may
be continued cannot be an unreasonably long period such as thirty years. The
High Court was, therefore, in any view of the matter, right in holding that in
the circumstances the order of requisition could not survive any longer and the
State Government was bound to revoke the order of requisition and derequisition
the flat and to take steps to evict the appellant from the flat and to hand
over vacant possession of it to the third respondent." $ * (emphasis
supplied)
In these appeals also, the properties in question had been under requisition
for a very long time. It appears, the Union Works and Housing Minister on
28.3.1985 assured the Lok Sabha that the Government would return all
requisitioned properties within two years or acquire it permanently after
paying compensation. This announcement came at the end of the debate on the
Requisitioning and Acquisition of Immovable Property (Amendment) Bill, 1985
which later became Act. From the debate, it is also clear that the National
Conference Member mentioned about the difficulties faced by many people whose
properties were requisitioned for one purpose or the other. The Minister
informed that he had written letter to the concerned for making arrangements
for vacating or permanently acquiring the properties within next two years.
The Office Memorandum dated 9.7.1979 reads:-
"Delhi Administration, Delhi (Public Works Department) Vikas Bhawan,
New Delhi. No. F.13/22/79-PWD/Allot/8397 Dated 9.7.1979
OFFICE MEMORANDUM
Due to amendment in the Requisitioning and Acquisition of Immovable Property
Act, 1952 and as per Decision of the Executive Council all the
requisitioned/leased houses which are with the Administration for more than 10
years are to be released to their owners immediately. As such it has since been
decided by the Administration to compile a priority list of the occupants of
requisitioned/leased houses with a view to allot them alternative accommodation
on priority basis. All the occupants of requisitioned/leased houses are
requested to furnish the relevant information in the enclosed performa by
16.7.1979 failing which, the officer concerned will be liable for eviction from
requisitioned house without provision for alternative accommodation. This may
please be noted. ( L.d. Gupta) Under Secretary (PWD) Shri K.K. Kamra, Exchange
Stores 13, Alipur Road, Delhi Despatcher, P.W.D./L.S.G Deptt. Delhi
Administration I.P. Estate, N.Delhi-110001" $ *
(emphasis supplied)
One more aspect to be noticed is, as observed by the High Court, that the
properties in question continued to be in possession of the appellants; in
other words, there was no urgency of taking immediate possession nor there was
any immediate threat of dispossessing them from the properties. At the most,
after the lapsing of the Requisition Act on 10.3.1987, their possession over
the properties would have been unauthorized, may be so long they continued in
unauthorized possession of the properties, they were liable to pay damages for
their occupation for few months during which period they could have completed
acquisition proceedings in the normal course without resorting to provisions of
Section 17 (1) & (4) of the Act. During the course of the hearing, we
specifically asked the learned counsel for the appellants in this regard, the
only answer was that the appellants being Union of India & others did not
want to remain in the unauthorized possession of the properties. We are not
convinced by this reply so as to justify invoking urgency clause to acquire the
properties. Having regard to the facts and circumstances of the case in these
appeals, the authorities could have completed acquisition proceedings in couple
of months even after providing opportunity for filing objections and holding
inquiry under Section 5A of the Act if they were really serious.
In the Objects and Reasons of Act No. 20 of 1985, it is stated that all the
properties which were requisitioned prior to the amendment of the Act in 1970
were required to be released from requisition or acquired by March 10, 1985;
although Government is expeditiously implementing the policy of acquiring or
releasing from requisition the requisitioned properties, a number of them are
expected to be needed by the Government even after the 10th March, 1985 for
public purposes; the Ministry of Defence is taking action for either releasing
or acquiring the requisitioned properties. It was, therefore, decided to extend
the maximum period for which the properties could be retained under requisition
by a period of two years. Thus, it is clear that the authorities were aware
that the properties were to be released or acquired and the maximum period was
extended upto two years for the purpose. From 1985 to 1987 they had sufficient
time to acquire the properties in question in the usual course. They had enough
time to provide opportunity for filing objections and holding inquiry under
Section 5A of the Act. There was no need to invoke Section 17 of the Act. The
Office Memorandum dated 19.7.1979 extracted above shows that the Executive
Council took the decision in view of the amendment in the Requisition and
Acquisition of Immovable Property Act, 1952 with all the requisitioned/leased
houses which were with the Administration for more than 10 years were to be
released to their owners immediately and all the occupants of
requisitioned/leased houses were requested to furnish the relevant information
by 16.7.1979 failing which the officer concerned will be liable for eviction
from the requisitioned house without provision for alternative accommodation.
Here again, it is clear that the authorities were in know of the situation in
the year 1979 itself. Further the minutes of the meeting held on 8.4.1985 in
the room of Secretary (PWD/L&D), Delhi Administration, Delhi show that the
position regarding all the requisitioned properties in Delhi which were
requisitioned under the 1952 Act was reviewed. The said meeting was attended by
(1) Secretary (PWD&L&D), (2) Joint Director (Training), (3) Additional
District Magistrate (Registration) and Under Secretary (LA). In the said
meeting, it was decided that all the pre-1970 residential buildings which were
partially requisitioned and were not in full occupation of Delhi Administration
should be de-requisitioned in stages.
It was noted that some of the requisitioned buildings which were fully occupied
for residential/office purposes by the various departments of the Delhi
Administration and which buildings are essentially required for the functioning
of such departments should be acquired under the Act.
Shri V.N. Khanna pointed out that in cases where the buildings/properties were
to be acquired under the Act, 80% of the compensation was to be given at the
stage of notice itself.
In this meeting, cases of requisitioned buildings were reviewed in details and
recommendations were made in respect of each property.
It was also noticed that the acquisition of buildings was going to be prolonged
affair; initially those properties which have been surveyed by ADM
(Requisition) and recommended for acquisition/de- requisitioning vide letter
dated 27.3.1985 may be taken up.
Thus, from the Statement of Objects and Reasons of the Act 20 of 1985,
Statement by the concerned Minister to Lok Sabha on 28.3.1985, the Office
Memorandum aforementioned and the minutes of meeting dated 8.4.1985, it is
sufficiently clear that the appellants were fully aware that they had to make
arrangements either for acquiring the properties or de- requisitioning them by
making alternate arrangement within a period of two years i.e. upto 10.3.1987
inasmuch as no further extension of the Requisition Act was possible. Further
having regard to the observations made by this Court in the case of Vora
(supra), there would have been no justification for the appellants to continue
properties in question under the Requisitioning Act any more. If the appellants
were really serious in acquiring the properties in question, they had almost 2
years time even after taking the decision to acquire them or derequisition them
within which time, acquisition proceedings could be completed in the usual
course without depriving the respondents of their valuable right to file
objections for acquisition and without dispensing with inquiry under Section 5A
of the Act.
The High Court was not right in holding that without expression of urgency in
the impugned notification itself, it could not be sustained, but then the High
Court did not rest its conclusion only on this. Having examined the facts and
circumstances of the case, it was found that there was no material and the
circumstances even to have subjective satisfaction by the authorities to invoke
urgency clause under Section 17 of the Act. This urgency was common in respect
of all the 14 properties as already noticed above in the cases of Banwari Lal
as well as Shakuntala Gupta aforementioned. The finding of fact that there was
no urgency for invoking Section 17 has become final. This finding holds good
even for these appeals. Having regard to the facts and circumstances and the
material available on record, we are of the view that invocation of urgency
clause was without justification and was untenable as held in Banwari Lal and
Shakuntala Gupta. This Court in State of Punjab & Anr. vs. Gurdayal Singh
& Ors. [ as to the use of emergency power under Section 17 of the Act
has observed that "it is fundamental that compulsory taking of a man's
property is a serious matter and the smaller the man the more serious the
matter. Hearing him before depriving him is both reasonable and pre-emptive of
arbitrariness, and denial of this administrative fairness is constitutional
anathema except for good reasons. Save in real urgency were public interest
does not brook even the minimum time needed to give a hearing land acquisition
authorities should not, having regard to Articles 14 (and 19), burke an enquiry
under Section 17 of the Act. Here a slumbering process, pending for years and
suddenly exciting itself into immediate forcible taking, makes a travesty of
emergency power." *
In Om Prakash and Another vs. State of U.P. & Ors. [ 6] referring to State of Punjab vs. Gurdiyal Singh
(supra), this Court in para 21 has observed that "according to the said
decision, inquiry under Section 5A is not merely statutory but also has a
flavour of fundamental rights under Articles 14 and 19 of the Constitution
though right to property has no longer remained a fundamental right, at least
observation regarding Article 14 vis-a-vis Section 5A of the Land Acquisition
Act would remain apposite." * In the present appeals, the appellants have
not been able to show before the High Court any genuine subjective satisfaction
depending upon any relevant material available to the State authorities at the
time when they issued the impugned notification under Section 4(1) of the Act
and dispensed with Section 5A inquiry taking aid of Section 17(4) of the Act. A
bench of three learned Judges of this Court in Narian Govind Gavate & Ors.
vs. State of Maharastra & Os. [ ] has expressed that Section 17(4)
cannot be read in isolation from Section 4(1) and 5A of the Act and has
expressed that having regard to the possible objections that may be taken by
the land owners challenging the public purpose, normally there will be little
difficulty in completing inquiries under Section 5A of the Act very
expeditiously. In the same judgment, it is also stated that "The mind of
the officer or authority concerned has to be applied to the question whether
there is an urgency of such a nature that even the summary proceedings under
Section 5A of the Act should be eliminated. It is not just the existence of an
urgency but the need to dispense with an inquiry under Section 5A which has to
be considered." *
The various decisions cited on behalf of the appellants in support of their
submission that there was justification in invoking urgency clause for
acquiring the properties in question were on the facts of those cases where
either urgency was made out or where it was shown that relevant material and
data was available at the time of issuing notification invoking urgency clause.
In the case of Deepak Pahwa & Ors. vs. Lt. Governor of Delhi & Ors.
] one of the grounds raised was that long period of 8 years was spent in
inter-departmental correspondence which showed that there was no urgency to
invoke Section 17(4) of the Act. In that context, the Court observed that
"Very often persons interested in the land proposed to be acquired make
various representations to the concerned authorities against the proposed
acquisition. This is bound to result in a multiplicity of enquiries, communications
and discussions leading invariably to delay in the execution of even urgent
projects. Very often the delay makes the problem more and more acute and
increases the urgency of the necessity for acquisition." *
The Court proceeded on the assumption that the pre-notification delay could
have been caused by representations made by the aggrieved parties but this case
is not an authority to say that in the absence of material to justify urgency
clause and long delay in issuing the notification could be ignored or condoned
to uphold the validity of such notification.
In Chameli Singh & Ors. vs. State of U.P. & Anr. [ ], the
observations of the Court that larger the delay, greater be the urgency was in
the context of the facts of that case having regard to the public purpose
involved therein for invoking the urgency clause. In that case, the Court
appeared to think that very often the officials due to apathy in the
implementation of the policies and programmes of the Government themselves
adopt dilatory tactics which leads the aggrieved party to challenge the
invocation of urgency. The Court took note of the fact that urgency clause was
invoked in that case for providing house sites to the dalits and the poor which
is a national problem. This is not an authority to condone or ignore the laxity
or lethargy or carelessness on the part of the authorities in invoking urgency
clause to exercise special powers under Section 17 of the Act to cover up their
delay and laches without there being any justification or material justifying
invoking of urgency clause. In the case of Union of India vs. Ghanshyam Das
Kedia [ 4], this Court has taken the view that
the notification need not specifically recite the nature of urgency and it is
enough if the records disclosed the consideration by the Government on the
urgency for taking action under Section 17(1) & (4) of the Act. This
position was not disputed before the High Court and is also not contested
before us. The view of High Court in this regard that the notification itself must
specifically state about the nature of urgency and in its absence the
notification gets vitiated, cannot be accepted. But as already observed above,
the High Court did not quash the notification only on the ground of non-
mentioning of urgency in the impugned notification but it has also
independently considered and concluded that no material was placed before the
Court to show that material and circumstances were available before the
authorities at the relevant time to invoke the urgency clause to exercise
powers under Section 17 of the Act. 'Urgency' for invoking of Section 17 of the
Act should be one arising naturally out of circumstances, which exist when the
decision to acquire the land is taken and not such, which is the result of
serious lapse or gross delay on the part of Acquiring Authority.
However, the position may be different where the delay is caused or occasioned
by the landowner himself.
Failure to take timely action for acquisition by the authorities of the Union
of India cannot be a ground to invoke the urgency clause to the serious
detriment of the right of the landowner to raise objections to the acquisition
under Section 5-A.
In Civil Writ Petition No. 229/92 filed by Sudhir Choudhrie, (the respondent in
SLP No. 9264/2003), a contention was raised on behalf of the appellants herein
that the writ petitioner's case suffered from delay and laches. The learned
Single Judge having regard to the facts and circumstances of the case concluded
that the writ petition could not be dismissed on the ground of delay holding
that the writ petitioner had been pursuing his remedies in the court of law
against the proposed action of the appellants. The Division Bench of the High
Court in the order under challenge in regard to the delay in filing the writ
petition agreeing with the learned Single Judge has stated thus:-
"Before parting, we may however notice that the appellant had raised a
question of delay in filing the writ petition by the first respondent in writ
petition No. 229/92 which is the subject matter of LPA No. 10/1995. However,
the learned single Judge not only accepted the explanation for the alleged
delay but also entertained the writ petition and decided the same on merits.
We, therefore, are of the opinion that it is not a fit case where this court
should interfere with the said judgment on the afore-mentioned ground." *
Ground of delay is not raised by the appellants in the SLP. In this view, the
contention urged on behalf of the appellants that the writ petition No. 229 of
1992 ought to have been dismissed on the ground of delay and laches cannot be
accepted.
The argument advanced by the learned counsel on behalf of the appellants that
the arbitrator could not be appointed by the High Court in the absence of any
agreement for appointment of arbitrator to determine the damages and there
being no prayer in that regard in the writ petition, cannot be accepted. This
Court dismissed the SLP No. 4458 of 1991 filed by the appellants against the
order dated 4.2.1991 made by the High Court in Banwari Lal's case. While
dismissing the said SLP on 22.3.1991, may be in the light of the argument made
on behalf of the appellants that arbitrator could not be appointed, this Court
expressly made it clear that the arbitrator appointed by the High Court may
give award and the same may be filed before the High Court for appropriate
orders. Civil Appeal No. 518 of 1998 filed by the appellants against the order
made in the writ petition No. 894 of 1987 filed by Shakuntala Gupta was
disposed of by this Court on 14.11.2000 following Banwari Lal's case which
included appointment of arbitrator. In the said order, this Court did not find
any sustainable ground raised in the appeal to make any distinction or
difference from the case of Banwari Lal and others. Hence it follows that order
of appointment of arbitrator made in Shakuntala Gupta's case was also upheld by
this Court. The learned Single Judge passed the order in the writ petition
appointing arbitrator to determine the damages payable by the Delhi Administration
instead of making the petitioners to run to the civil court for that purpose
after spending several years in the court. In the impugned order, the Division
Bench of the High Court has upheld the same. Since the order appointing
arbitrator in the cases of Banwari Lal and Shakuntala Gupta is upheld by this
Court, we have no good reason to take a different view. On the other hand, we
are in respectful agreement with the same having regard to the facts and
circumstances of the case.
The alternative argument urged on behalf of the appellants that if the impugned
notification suffers from infirmity in relation to invoking urgency clause, it
can be quashed only to the extent of invoking the aid of Section 17 and the
said notification can be sustained confining it to Section 4 of the Act, cannot
be accepted. Otherwise, the same common notification stands quashed in respect
of the few parties as in the cases of Banwari Lal and Shakuntala Gupta and it
stands sustained in respect of others i.e. respondents in these appeals leading
to anomalous situation. Added to this, if the argument, as advanced on behalf
of the Union, is accepted, the notification under Section 17 of the Act
invoking urgency clause would stand quashed but the landowner, would
nonetheless be deprived of the possession of the property as also payment of
80% of compensation under Section 17(3A) of the Act. Such an unjust result
cannot be allowed to happen by quashing the notification in part only to the
extent of Section 17 of the Act and maintaining it for the purpose of Section 4
of the Act. Thus, having regard to the facts and circumstances brought on
record in these appeals, it is not possible to accept this argument
particularly when the very foundation of invoking Section 17 was invalid and unjustified
as upheld by this Court in Banwari Lal and Shakuntala Gupta.
Since we are of the view that the decisions in Banwari Lal and Shakuntala Gupta
cover these appeals against the appellants, we do not consider it necessary to
deal with the contention that due to non-compliance of sub-section (3A) of
Section 17 of the Act, the entire acquisition proceedings were vitiated.
Further when we are upholding the impugned common order on other grounds, we do
not wish to deal with this contention.
One more contention urged on behalf of the appellants in SLP (C) No. 5451/2003
namely that the writ petition filed by the respondents being tenants was not
maintainable, is required to be dealt with. It does not appear that this
contention was urged before the Division Bench of the High Court. In the light
of the decision of this Court in Municipal Corporation of Greater Bombay vs.
Industrial Development Investment Co. Pvt. Ltd. & Ors. [ 2], it cannot be said that in no case, the tenant of the
land which is sought to be acquired under the provisions of the Act can
challenge the acquisition proceedings. It is clear from Section 5A(3) of the
Act that for the purpose of the said Section, a person shall be deemed to be
interested in land who would be entitled to claim an interest in compensation
if the land were acquired. In an appropriate case, a tenant having sufficient
subsisting interest in the land can challenge the acquisition proceedings. In
view of the facts and circumstances of the case, the learned Single Judge did not
dismiss the writ petition as not maintainable on the ground that the tenant
could not maintain the writ petition. The Division Bench of the High Court also
did not disturb the order of the learned Single Judge. This apart, the very
same notification being common is quashed at the instance of other writ
petitioners. In this view, at this stage, the contention urged on behalf of
the appellants that writ petition filed by a tenant was not maintainable cannot
be accepted. #
Thus, having regard to all aspects and for the reasons stated and discussion
made above, we do not find any merit in these appeals. # Hence, they are
dismissed. No costs.