JUDGMENT [ENTITY], J.
1. These two writ petitions raise common questions of law and fact (and for?) that reason are being disposed of by this common judgment. The property to which [CASE NUMBER] relates is owned by [ENTITY] along with one Sri [ENTITY] and is bounded as below.
East: Khasra Nos. 160 and 161 (Houses) and Khasra No. 163 Pucca Lane of Municipal Board.
West: Khasra Nos. 158, 161, 182 and 167 Gowyin Road:
North: Mohalla Bazar [ENTITY], Khasra No. 148, Circular Road of Municipal Board.
South: Mohalla Bazar [ENTITY], Khasra No. 154, Municipal lane and Khasra No. 158 [ENTITY] [ENTITY], Advocate.
This property is hereinafter described as 'property No. 1'. The property to which [CASE NUMBER] relates is owned by Sri [ENTITY] son of late [ENTITY] of Jahangirabad, and is described below:
Kothi No. 2, Barrow Road.
This property is hereafter 'called as 'property No. 2.'
2. The scheme which is challenged in [CASE NUMBER] is "Circular Road Development and Housing Accommodation Scheme No. 95" (hereinafter described as Scheme No. 1). The one challenged in [CASE NUMBER] has been described as "Street and Housing Accommodation. Scheme [ENTITY] at No. 2, Barrow Road, Khas Bazar, Lucknow" and hereinafter called as Scheme No. 2. Scheme No. 1 purports to have been framed under [SECTION] and [SECTION] of the [ACT] (hereinafter referred to as the [ACT]) while Scheme No. 2 has been framed under [SECTION] and [SECTION] of that Act. In both the cases notices contemplated by [SECTION] of the Improvement Aet have been prepared and the notices or proposed acquisition of land have also been issued to the petitioners in both the writ petitions. All this happened before the U. P. Nagar [ENTITY] Adhraiyam 1959 (hereinafter referred to as the Act) was enforced. The provisions of the [ACT] have been repealed by virtue of the provisions of [SECTION] of the Act and it is the admitted case of the parties that further proceedings in the cases would be governed by the provisions of the Act and not those of the [ACT].
3. In [CASE NUMBER] originally the following relief was claimed:
"Wherefore, it is most respectfully prayed that this Hon'ble Court may be pleased to issue a writ of mandamus restraining opposite parties Nos. 1 to 3 from giving effect to the notification Annexure 3 and acquiring or taking possession of the petitioner's property under that notification. Any other writ or directions as may appear appropriate on the facts and circumstances of the case may be issued and this petition may be allowed with costs,"
By means of an application dated 15-12.1964 permission was sought to add the following relief:
"That by a writ of certiorari the entire proceedings of the Nagar [ENTITY], in respect of the property covered by this writ petition be quashed."
That application was allowed and the relief has been amended. In [CASE NUMBER] the prayer is as follows:
(a) That by a writ of certiorari the entire proceedings of the Nagar [ENTITY], Lucknow, from [SECTION]-1-1960 to 20.1.1962 be quashed.
(b) That a writ of mandamus, prohibition or other appropriate writ or direction be issued restraining the Nagar [ENTITY], Lucknow, from executing the scheme known as Street and Housing Accommodation Scheme Kothi No. 2, Barrow Road, Khas Bazar, Lucknow" and acquiring the petitioner's property thereunder."
4. Mr. [ENTITY], who has appeared for the petitioners in both the cases has made the following three submissions before me:
(1) That the provisions contained in paragraph 10 of [SECTION] of the Act are ultra vires being violative of [SECTION] of the [ACT].
(2) That the two schemes giving rise to these petitions could not have been legally framed by the improvement Trust, Lucknow, and cannot validly be continued by the Nagar [ENTITY], Lucknow, inasmuch as they do not pertain to an extended area".
(3) That the two schemes not involving expenditure of Rs. 10 lacs or over did not require sanction of the State Government nor was any such sanction accorded by the State Government and for that reason they would not be covered by the provisions of [SECTION] of the Act with the result that proceedings for acquisition of property to implement those schemes can only be taken by the State Government under the provisions of the [ACT] and the Nagar [ENTITY] cannot resort to any provision in the Act for purposes of acquisition of properties to implement those schemes including property No. 1 and property No. 2.
In [CASE NUMBER] Mr. [ENTITY] has also made a fourth submission, the same being that the Nagar [ENTITY] is acting mala fide and on that ground also the proceedings relating to the acquisition of the petitioners' land are liable to be quashed.
No other submission has been made before me.
5. I would deal with the submissions seriatim:
[SECTION] of the [ACT], so far as relevant For our purposes, reads:
[SECTION] (1) No person shall be deprived of his property save by authority of law.
(2) No property shall be compulsorily acquired or requisitioned save for a public purpose and save by authority of law which provides for compensation for the property so acquired or requisitioned and either fixes the amount of the compensation or specifies the principles on which, and the manner in which, the compensation is to be determined and given; and no such law shall be called in question in any Court on the ground that the compensation provided by that law is not adequate.
(2A) "
Mr. [ENTITY] contends that in the Act there is now provision fixing the amount of compensation and that: even though some sort of principles have been provided on which compensation can be determined those principles have no connection or relation with compensation and those provisions amount to a fraud on the [ACT]. The only provision which deals with the matter of compensation or principles relating to compensation is contained in para. 10 of the [SECTION] of the Act. That provision so far as relevant for our purposes reads:
"10 (3) At the end of [SECTION] of the said Act the following shall be deemed to be added namely-
(2) For the purpose of clause first of Sub-section (1) of this section-
(a) the market value of the land shall be the market value according to the use to which the land was put at the date with reference to which the market value is to be determined under that clause;
The words "of the said Act" occurring in [SECTION] obviously and admittedly refer to the [ACT]. The submission of Mr. [ENTITY] is that in order to determine the value of a piece of land or compensation payable in respect of the same what has got to be seen is not the use to which the land is being put to but its money equivalent or market value at the date of the publication of the notification under [SECTION], the damage sustained by the owner of persons entitled to compensation by reason of taking of any standing crops or trees, the damage if any sustained by him at the time of taking posses sion of the land by reason of severing such land from his other land, the damage if any sustained by him. at the time of the taking possession of the land by reason of the acquisition injuriously affecting his other propsrty; the circumstance that the person whose property is being acquired is compelled to change his residence or place of business, the damage if any resulting from the diminution of the profits of the land between the time of declaration under [SECTION] and taking possession etc. In other words it is contended that the principles which can be relevant for the purposes of determining the compensation payable in respect of a piece of land are contained in [SECTION] of the [ACT]. The learned counsel further submits that in order to determine the market value oi land its location, its size, the quality of the land, the rate at which the neighbouring piece of land has been sold and such other circumstances are relevant. it is pointed out that a very inferior quality of land situate in a very thinly populated and in a remote corner of the city of Lucknow may have been given out on a daily rent of Rs. 50/- to a mobile cinema while an equally big piece of land situate in the heart of the city, as for example in Hazratganj, may not be put to any use because of some unsurmountable difficulties in the way of the owner and if compensation were to be determined on the basis of use the result would be that the owner of the land situate in the thinly populated corner of the city of Lucknow would get much more compensation than the owner of the plot in Hazratganj. The submission of the learned counsel in other words is that there is no nexus between the use to which the land is put and the amount of compensation which the owner should receive. The question for consideration therefore, is as to what do the words "the market value of the land shall be the market value according to the use to which the land was put at the date with reference to which the market value is to be determined" mean, Mr. [ENTITY] who has appeared for the respondent, the Nagar [ENTITY], has contended that all that this provision means is that full market value as found to exist on the relevant date would be given but future potentialities would be excluded from consideration while determining the amount of compensation. He has strenuously contended that whatever may be the manner in which the provision has been drafted the idea is not to provide an irrational method of calculating or determining compensation or to confiscate the property but of confining the evaluation on the basis of the conditions existing on the relevant date but without considering its future potentialities. Under the provisions of [SECTION] of the [ACT] along with other factors future potentialities of the land sought to be acquired have got to be taken into consideration. (See [PRECEDENT]) and it seems to me that the Act has departed from that rule in enacting para. 10 of the [SECTION]. The provisions oi para[SECTION] of the Act have been bodily lifted from the [ACT] and have been reproduced verbatim in the Act. The provisions of the latter Act were also extended to the State of Punjab and have been considered by this Court, the Judicial Committee and the East Punjab High Court.
6. In [PRECEDENT] a Full Bench of this Court had to consider the effect of para[SECTION] of the Schedule to the [ACT]. The interpretation of the paragraph was that the only factor that could be taken into consideration was the use to which the land was put which was an arbitrary rule and made the provision in some respects confiscatory in nature and that in some no compensation would be payable.
[ENTITY] J., who spoke for the Court observed as follows:
"The language of the section is rigid. The governing words are 'according to the use to which the land was put, etc.' The determining factor is the actual use of the land at the date in question, and any use of the land prior to that date is to be disregarded. In view of this phraseology it appears to be impossible, for the purpose of assessing the market value to resort to any other facts such, for example, as the history of the land, its physical features or its situation; for while data of this nature might otherwise be of weight as indicating the value of the land to the owner, they could only be of service in estimating a potential value based upon the use to which the land might most profitably be put. But the section expressly excludes all consideration of potential use by laying down that the determining factor in the assessment of the market value is the actual use to which the land is beiug put on the date of the notification and from this the conclusion appears to be that either intentionally or through inadvertence the Legislature has declared that in certain conditions the market value of the land on the material date may be nil."
There cannot be any manner of doubt that the ratio of the Full Bench decision is that in determining compensation no other factor is to be taken into consideration even though operating on the relevant date, except the use to which the land was put by the owner thereof. If that is the meaning of words "according to the use to which the land was put" there would be no difficulty in holding that it is not a principle on which compensation can be determined and that there is no nexus between that so-called principle and compensation. But that is not the view that was taken by the Judicial Committee in Kailash Chandra v. Secy. of State, AIR 1946 P C 1[SECTION]. Their Lordships held that all that the words "according to the use to which the land was put" meant was that the purposes in the future must be disregarded." in other words their Lordships held that full market value on the relevant date had to be given but what was excluded was the future potentiality. After quoting from the judgment of [ENTITY] J. In [PRECEDENT] (Supra) their Lordships observed as follows :
"Their Lordships are unable to assent to this view. On the true construction of [SECTION], the former plot ought to be valued as a garden and the latter plot ought to be valued as agricultural land. The effect of [SECTION] of the Act of 1894 as so amended is that the possibility of the garden or agricultural plot being used (e.g.) for building purposes in the future must be disregarded. It is significant that Sub-clause (b) of that sub-section makes provision for the case of the owner having taken active steps and incurred expenditure to secure a more profitable use of the land. In such a case the owner may be paid "further compensation based on his actual loss" Apart from such a case, only the present use of the land can be considered for the purpose of arriving at the market value."
The ratio of the decision is that the words "according to the use to which the land was put" stand in contradistinction to the market value of the land inclusive of its future potential value. In The Governor-General in [PRECEDENT] a Division Bench of the East Punjab High Court had occasion to consider the provisions of our [ACT] which, as already stated earlier had been extended to the State of East Punjab. [ENTITY], J., who spoke for the Court considered the decision of our Court in [PRECEDENT] (Supra) and also the decision of the Privy Council in AIR 1946 P C 1[SECTION] (Supra). Their Lordships also noticed a subsequent decision of this Court in [PRECEDENT] where the rule enunciated by this Court in [PRECEDENT] (Supra) was followed. [ENTITY], J. concluded:
"It is quite clear that their Lordships ot the Privy Council did not accept the view that had been expressed by the Full Bench of the Allahabad High Court as to the interpretation to be placed on [SECTION], [ACT], as amended by the [ACT]. As a result of the decision of their Lordships of the Privy Council, I am bound to hold that the market value of the land under the United Provinces Town [ACT], [SECTION] has to be assessed according to the use to which the property is being put at the date of acquisition as distinguished from the use to which it is capable of being put in future. In other words, all ideas of potential value of the land have to be excluded when assessing the market value of the property."
Having given the matter my anxious consideration I am of the opinion that the decision of the Judicial Committee in [ENTITY]'s case, AIR 1946 P C 1[SECTION] leaves no manner of doubt that the expression "according to the use to which the land was put" only means that the market value of the land on the relevant date but not inclusive of its future potentiality. In [PRECEDENT] a Division Bench of the Calcutta High Court had to interpret similar words occurring in [SECTION] of the [ACT] as amended by the [ACT]. The words were "to be the market value according to the disposition of the land or building at the date of the publication of the declaration thereto under [SECTION] of the said [ACT]."
The learned Judges held that all that the provision meant was that the future potentiality had to be excluded and that full market value had to be given as existing or operating on the relevant date. For the reasons mentioned above I have come to the conclusion that the principle contained in [SECTION] of the [ACT] as amended by paragraph 10 (3) of the [SECTION] to the Act is that fuli compensation shall be given of the land or property sought to be acquired but on the basis of the markat value as existing on the relevant date exclusive of future potentiality.
7. I have found no good reason and none has been suggested by the learned counsel for the petitioners to conclude that this principle has no nexus with compensation. I have already extracted the provision of [SECTION] of the [ACT]. It is elementary that Sub-clause (2) of that Article as it stands today has been brought in by the fourth amendment of the [ACT] and that adequacy of compensation is no longer Justiciable. If the impugn. ed law either fixes the amount of compensation or provides the principles on which the compensation has to be determined it would be a valid legislation notwithstanding the fact that the compensation when worked out may either be inadequate or may not be the full market value of the property acquired. There is a distinction between the full compensation not being paid and there being no principles at all in the impugned legislation for determining compensation. Whereas the former is not justiciable the latter is subject to scrutiny by Courts. It is not necessary to cite authorities in support of the proposition that after the fourth amendment introduced in 1955 the question of adequacy of compensation is no longer justiciable. That view has been taken by the Supreme Court in [PRECEDENT] and M/s. [PRECEDENT]. It is true that [SECTION] still speaks of compensation and normally compensation means the full market value of the property acquired but it is settled law that the word 'compensation' as now occurring in [SECTION] has not been used in the sense of full market value. Mr. [ENTITY] placed reliance upon [PRECEDENT]. In that case the market value was not to be determined on the basis of its value on the date of the notification under [SECTION] of the [ACT] but on 28-4-1947 which was a much earlier date. The Madras High Court held that such a provision was violative of [SECTION] of the [ACT]. The point raised and decided in the Madras case does not arise before me and for that reason the case is clearly distinguishable for the reasons mentioned above. I am of opinion that the impugned provision is not hit by [SECTION] of the [ACT].
8. While considering the next submission of Mr. [ENTITY] I would like to recall that Scheme No. 1 has been iramed under [SECTION] read with [SECTION] of the [ACT], and Scheme No. 2 has been framed under [SECTION] read with [SECTION] of that Act. [SECTION], [SECTION] and [SECTION] of that Act so far as relevant for our purposes read :
28. (1) Whenever the Trust is of opinion that, for the purpose of -
(a) providing building sites, or
(b) remedying defective ventilation, or
(c) creating new or improving existing means of communication and facilities for traffic, or
(d) affording better facilities for conservancy.
It is expedient to lay out new streets or alter existing streets (including bridges, causeways and culverts), the Trust may pass a resolution to that effect, and shall then proceed to frame a street scheme for such areas as it may think fit.
2. A street scheme may within the limits of the area comprised in the scheme provide for-
(a) the acquisition of any land which will, in the opinion of the Trust, be necessary for its execution;
(b) the re-laying out of all or any of the lands so acquired, including the construction and reconstruction of buildings by the Trust or by any other person and the laying out construction and alteration of streets and thorough-fares;
(c) the draining, water-supply, and lighting of streets and thorough-fares so framed or altered;
(d) the raising, lowering, or reclamation of any land vested in, or to be acquired by the Trust for the purposes of the scheme;
(e) the formation of open spaces for the better ventilation of the area comprised in the scheme;
(f) the acquisition of any land adjoining any street, thoroughfare, or open space to be formed under the scheme.
[SECTION]. (1) in regard to any area to which this Act is extended, the Trust may, from time, prepare a scheme of proposed public streets with plans showing the direction of such streets, the streets alignment and building line on each side of them, their intended width and such other details as may appear desirable.
[SECTION]. Whenever the Trust is of opinion that it is expedient and for the public advantage to provide housing accommodation for any class of the inhabitants of any area to which this Act is extended, the Trust may frame a scheme (to be called a "housing accommodation scheme") for the purpose aforesaid."
Mr. [ENTITY] has contended that the expression "in regard to any area to which this Act is extended" relates to such area which is situated outside the limits of the Municipality but to which the provisions of the Act had been extended. In order to arrive at that conclusion he has placed reliance upon [SECTION] of the [ACT] and has brought to my notice the words "to control and provide for the future expansion of a municipality in any area to which this Act is extended". Learned counsel contends that the words "future expansion of a municipality" obviously mean expansion in the territorial sense or in the sense of enlargement of area by adding portions to it. He also submits that in as much as such a scheme is described as a town expansion scheme in the [ACT] it is obvious that the idea is to add something to the already existing town. He has also placed reliance upon the circumstance that other provisions of the Act which deal With schemes, as for example, [SECTION] of the Act which deals with the general improvement scheme, [SECTION] of the Act which deals with rebuilding scheme, [SECTION] which deals with rehousing scheme, [SECTION] which deals with street scheme and [SECTION] which deals with a deferred street scheme, do not have in them the words "any area to which this Act is extended". It has been strenuously urged that the omission in other sections than [SECTION], [SECTION] and [SECTION] dealing with schemes of the words "any area to which this Act is extended" not purely accidental or inadvertent but deliberate on the part of the Legislature. The submission is that this is due to the fact that whereas schemes covered by [SECTION], both inclusive, are intended for purposes of an existing town or a municipality, schemes contained in [SECTION], both inclusive, by their very nature are meant only for the purpose of areas which are adjacent to a municipality and do not form part of it but to which the provisions of the [ACT] have been extended. Having given the matter my anxious consideration, I am of opinion that these submissions of Mr. [ENTITY] are well founded. It is clear from the provisions of [SECTION] as also from the scheme of [SECTION] of the [ACT] that the expression "any area to which this Act is extended" relates to areas situated outside but adjacent to a municipality and to which the provisions of the [ACT] have been extended. In this connection reference may be made to S. 1 Clause (3) of the [ACT] which provides that "The Act shall come into operation in the whole or any part of any municipality and in any area adjacent thereto on such date as may be specified in such notification."
It appears to me that it is areas adjacent to a municipality which have been referred to in the expression "to any area to which this Act is extended" and do not include the municipal town to which the Act has been extended. This is also revealed by the circumstance that the development scheme, the housing accommodation scheme and the town expansion scheme envisaged and provided for by [SECTION], [SECTION] and [SECTION] respectively are such schemes which can only appropriately be launched in a new area and one which is not developed and which does not form part of a municipality. [SECTION] clearly points to the conclusion that the town expansion scheme is designed for the purpose of expanding an already existing municipality. I am, therefore, of the opinion that schemes contemplated and provided for by [SECTION], [SECTION] and [SECTION] of the [ACT] could not be launched in the city of Lucknow i. e. within the territorial limits of the Municipal Corporation.
9. In the present case scheme No. 1 has been framed under the provisions of [SECTION] and [SECTION] of the [ACT] while scheme No. 2 has been framed under [SECTION] and [SECTION] of the Act. Admittedly, both these schemes are to operate within the limits of the Municipal Corporation of Lucknow (the erstwhile Municipality of Lucknow). It is also a matter of admission that in areas adjacent to the city of Lucknow the provisions of the Act have not been extended. In view of my finding that a scheme under [SECTION] or [SECTION] of the [ACT] can be launched only in an area which is outside the municipality and to which the previsions of the [ACT] have been extended, scheme No. 1 could not have been validly launched for the city of Lucknow. The scheme itselt shows that it is to operate round about the Circular Road which admittedly lies within the Corporation of Lucknow. It is true that scheme No. 2 purports to have been framed both under [SECTION] and [SECTION] of the Act. It is, however, clear that what is provided therein will be fully covered by the provisions of [SECTION] of the Act and the mention of [SECTION] of the [ACT] is superfluous. Merely because it was mistakenly believed that the scheme No. 2 could be launched under [SECTION] and ior that reason reference to that section was also made, that scheme which is covered and protected by [SECTION] of the [ACT] cannot be invalidated. In other words if the scheme could be launched or saved by [SECTION] of the Act it is wholly immaterial that [SECTION] has also been mentioned in the notification. That being the position, 1 am of the opinion that whereas Scheme No. 1 could not have been validly launched there is no defect in scheme No. 2 and its validity is beyond any question.
10. The submission that now remains to be considered is whether for the acquisition of properties Nos. 1 and 2 the provisions of [SECTION] of the Act would be applicable or it is necessary for the [ENTITY] to make a request to the State Government to acquire those properties under the provisions of the [ACT] read with [SECTION] of the Act. [SECTION] as it stood at the relevant time (i.e. before the amendment) reads :
"365. Acquisition of land acquired for Improve, ment Scheme (1). Upon the sanction of an improvement scheme by the State Government, the [ENTITY] may enter into an agreement with any person for the purchase, leasing or exchange by the [ENTITY] from such person of any land which the [ENTITY] is authorised to acquire for an improvement scheme or any interest is such land.
2. The [ENTITY] may for the purposes of an improvement scheme sanctioned by Government acquire land or interest in land under the provisions of the [ACT], as modified by the provisions of this Chapter.
3. The [ENTITY] may for the purposes of an improvement scheme exercise any of the powers conferred upon him under [SECTION] and [SECTION].
4. All acquisition of land and interest in land for an improvement scheme authorised under this Chapter shall be completed at least upto the stage making of awards within a period of five years from the date of the notification of the Scheme under [SECTION] and any land in respect of which the acquisition is not so completed and the owner and occupier thereof shall cease to be subject to any liabilities under this Chapter;
Provided that the State Government may in any particular case before the expiry of such period and tor reason to be recorded in writing extend the period by one year."
The provision is divided in four sub-sections. Sub-section (1) authorises the [ENTITY] to obtain land or any interest therein by private negotiations and agreements for the purposes of improvement scheme. Sub-section (2) empowers the [ENTITY] to invoke the provisions of the [ACT] as modified by the provisions of the Act in order to acquire land with a view to implement its schemes. Sub-section (3) confers on the [ENTITY] certain powers and Sub-section (4) provides the period during which the scheme is to be completed. It is only under Sub-section (1) and (2) that the [ENTITY] gets the authority or jurisdiction to acquire land by private negotiations or by itself utilizing the provisions of the [ACT] for the purpose of implementing the scheme. At the relevant time those sub-sections were confined in their operation to schemes sanctioned by the State Government i. e., those valued at over Rs. 10,00,000. By the amendment introduced in 1964 the words by the State Government" occurring in [SECTION] have bean substituted by the words "under this Chapter" and in Sub-section (2) the words by Government" have been substituted by the words "under this Chapter" but the schemes admittedly have been launched several years before the amendments were introduced is [SECTION] of the Act, actually before the Act was enforced. We are therefore not concerned with the amended [SECTION] of the Act. The circumstance that the legislature thought it necessary to amend the section and did amend it by substituting the words "by the State Government" by the words "under this Chapter" in Sub-section (1) and the words "by the Government" by the words "under this Chapter" in [SECTION] clearly shows that the idea was to enlarge the scope of [SECTION] and not to keep it confined to schemes above Rs. 10 lacs. There is no provision under the Act analogous to [SECTION] under which property can be acquired either by private negotiations or through process of law in respect of the schemes below Rs. 10 lacs i. e., those for which sanction of the State Government was not necessary. [SECTION] of the Act reads:
"1[SECTION]. Procedure when immovable property cannot be acquired by agreement (1) Whenever the [ENTITY] is unable under [SECTION] to acquire by agreement any immovable property or any easement affecting any immovable property vested in the [ENTITY] or whenever any immovable property or any easement affecting aay immovable property vested in the [ENTITY] is required for the purposes of this Act, the State Government may in its discretion upon the application of the [ENTITY], made with the approval of the Executive Committee and subject to the other provisions of this Act, 'order proceedings to be taken for acquiring the same on behalf of the [ENTITY]' as if such property or easement were needed for a public purpose within the meaning of the [ACT] or other law which may be applicable to the case.
2. Whenever an application is made under Sub-section (1) for the acquisition of land for the purpose of providing a new street or for widening or improving an existing street it shall be lawful ior the [ENTITY] to apply for the acquisition of such additional land immediately adjoining the laad to be occupied by such new street or existing street as is required for the sites of buildings to be erected on either side of the street, and such additional land shall be deemed to be required for the purposes of this Act.
3. 'This section does not apply to the acquisition under [SECTION].' (underlined {here into ' ') by me).
The words underlined (here into ' ') in [SECTION] clearly show that the normal rule which the provisions of [SECTION] are an exception is that when property is required to be acquired for the purposes oE implementing a scheme by a [ENTITY] the latter has to approach the State Government and the State Government may for the benefit of the [ENTITY] acquire the property as if it was acquiring it for itself and for a public purpose. The words underlined (here in ' ') in Sub-section (3) clearly take the provisions of [SECTION] out of the scope of [SECTION] of the Act. Mr. [ENTITY] who has appeared for the [ENTITY] has not brought to my notice any other provision of the Act and I am not aware of any myself which deals with the matter relating to the acquisition of property tor the benefit of the [ENTITY] in order to enable it to implement its schemes. Reading the provisions of [SECTION] along with [SECTION] of the Act the inevitable result is as follows:
1. That [SECTION] is an exception to [SECTION] of the Act.
2. That [SECTION] provides the manner in which the land or property for the benefit of [ENTITY] can be acquired in order to enable it to implement its schemes.
3. That the [ENTITY] has no right as such to directly have recourse to the acquisition of land in schemes below Rs. 10,00,000.
4. That in schemes above Rs. 10,00,000/- which have all got to be sanctioned by the State Government the [ENTITY] can directly acquire the property by private negotiations under Sub-section (1) and by the process of law ([ACT] as modified by the Act) directly under [SECTION], of the Act. I have already noticed earlier that in the present case admittedly both the schemes are below Rs. l0,00,000/-. Consequently, it is clear that the properties belonging to the petitioners in both the cases can only be acquired in the manner provided by [SECTION] of the Act. Mr. [ENTITY] has placed reliance upon [SECTION] of the Act. In my judgment it is wholly irrelevant for the decision of the point which I am called upon to decide. That provision does not confer on the [ENTITY] the right nor does it provide the procedure under which laud or property can be acquired in order to implement a scheme. It only provides for the provisions of the [ACT] being read modified by the context of the Act. It is obvious that in the [ACT] many words have been used which cannot apply to a [ENTITY] and it is is order to harmonise the two that the provisions of [SECTION] have been enacted.
11. In my judgment there is no substance in submission of Mr. [ENTITY] that the Improvement Trust has acted mala fide in launching the scheme No. 2 and the [ENTITY] in implementing it. The only ground on which the complaint of mala fide is made is that simultaneously several properties of the petitioner of [CASE NUMBER] are being acquired. That can hardly be a ground for adjudging the action of the respondents mala fide. The submission must consequently fail.
12. The result, therefore, is that scheme No. 1 being invalid and unauthorised in law cannot be implemented. Scheme No. 2, however, can be implemented but the property of the petitioner cannot be acquired except by having recourse to legal proceedings. I, therefore, allow [CASE NUMBER] in its entirety. The proceedings relating thereto are quashed. It has been contended by Mr. [ENTITY] that in view of the circumstance that the property has not yet been acquired and the provisions of [SECTION] have already been amended so as to make all the schemes whether they are above Rs. 10,00,000/- or below it amenable to the provisions of [SECTION] of the Act, the result is that the Nagar [ENTITY] can in future proceed under the provisions of [SECTION] of the Act even with regard to Scheme No. 2. The submission is well founded and if fresh notifications are issued under the amended section, I see no difficulty in the property No. 2 being acquired. But the Corporation had already issued notices for the acquisition of that land before [SECTION] was amended and they have not founded their notices on the amended provision. I, therefore, quash the notices dated 22-2.1960 and [SECTION]-3-1960. I do not however quash the scheme No. 2. The [ENTITY] may implement it and also acquire property No. 2 by issuing fresh notices in accordance with law.
13. In the circumstances of the case the parties shall bear their own costs in both the cases.