CW 1055/99 //1// In the High Court of Judicature for Rajasthan Jaipur Bench ** 1-Civil Writ Petition No.1055/1999 Indian Oil Corpn Ltd Versus State & Ors. 2-Civil Writ Petition No.1065/1999 Hindustan Petroleum Corpn Ltd Versus State & Ors. Date of Order ::: 17/03/09 Hon'ble Mr. Justice Ajay Rastogi Mr. Anant Kasliwal, for petitioners (Corporations.) Mr. NA Naqvi, Addl. Adv. Gen., for respondents State At joint request, since these petitions involve identical questions, were finally heard together and are being disposed of by this order Instant petitions has been filed by petitioners against notices issued on 29/12/98 U/Ss 33 of Indian Stamp Act, 1899 (“Stamp Act”) & 47(a)(1)(c) of Rajasthan Stamp Law Adaptation Act, 1952 and so also judgments dt.12/02/99 passed by Collector (Stamps) Jaipur (II) holding that an instrument executed under an Award dt.26/10/91 passed under Land Acquisition Act, 1894 (“L.A.Act”) is chargeable to stamps duty under Act, 1899 and the petitioner- Corporations shall deposit requisite stamps duty alongwith interest @12% per annum, as referred to in respective judgments impugned - in pursuance whereof Sub-Registrar Sanganer (Jaipur) initiated proceedings for attachment of their movable & immovable properties. CW 1055/99 //2// Petitioners (Indian Oil Corporation Ltd & Hindustan Petroleum Corporation Ltd) are Government of India's undertaking duly registered U/s 617 of Indian Companies Act. The Government of Rajasthan initiated proceedings for acquisition of land U/s 4 of Land Acquisition Act and after procedure being followed as provided under Part-II of L.A. Act; and finally after the land was acquired by State Government, the Award was passed by Land Acquisition Officer respectively on 26/10/91 & 24/05/95; in pursuance whereof, possession of acquired land was taken vide Tehsildar's reports dt.16/07/92( Ann.8) and 18/10/94 (Ann.12) respectively; and according to terms of final Award, petitioners deposited sum of compensation with the Land Acquisition Officer – as a consequence whereof, the land finally vested with State Government on being acquired under LA Act was transferred to petitioners- Corporations and possession whereof was handed over to it by authorised representative of State Government. Thereafter, notices U/S 33 read with S. 47A(a)(c) of Stamp Act were served upon petitioners on the premise that possession of the land was taken over by respective petitioners through landowners from whom the land was CW 1055/99 //3// acquired by State Government for use of petitioners may be in public interest and since the Award under LA Act is a deed of conveyance U/s 2(1)of Stamp Act, they are under obligation to pay stamps duty. Petitioners in their reply to the notices issued by Collector (Stamps) inter-alia averred that the Award or agreement under LA Act are exempted from stamps duty; as such very notice served upon them is against provisions of Stamp Act. However, Collector (Stamps) finally observed that since the land was transferred directly by land holders to petitioners Corporations, it is a conveyance and stamps duty is chargeable. I have considered contentions of Counsel for the parties and with their assistance, examined material on record. It is not in dispute that acquisition proceedings were initiated by appropriate Government in public interest and finally the land acquisition officers passed an Award granting compensation to the land owners which was to be paid by petitioners-Corporations obviously since the land was acquired by appropriate Government in public interest for petitioners. If a land is needed for any public purposes or for a Company, notification to this CW 1055/99 //4// effect has to be published in official gazette U/s 4 of LA Act and objections are invited of persons interested U/s 5A of LA Act and taking note of objections filed by persons interested, and on it being satisfied that the land is needed for public purposes, appropriate Government may make declaration of intended acquisition in terms of S.6 of LA Act. However, if land is acquired for a Company, declaration shall not be made unless compensation to be awarded for such property is paid by a company, wholly or partly out of public revenues as per proviso to S.6 of LA Act. It is relevant to mention that such Corporations owned or controlled by Government includes such Government Company as defined in S.617 of Companies Act are covered by S.3(cc) of LA Act, which provides that the expression “corporation owned or controlled by the State” means any body corporate established by or under a Central or State Act and includes a Government company as defined in S.617 of the Companies Act, 1956. As regards Company other than Government Company, they are covered by S.3(e) of LA Act, as per which, the expression “company” means - (i)a company as defined inSection3 of the Companies Act, 1956 (1 of 1956), other than a Government Company referred to in clause (cc); CW 1055/99 //5// (ii)a society registered under the Societies Registration Act, 1860 (21 of 1860)(or under any corresponding law for the time being in force in a State, other than a society referred to in clause (cc); (iii)a co-operative society within the meaning of any law relating to co-operative societies for the time being in force in any State, other than a co-operative society referred to in clause (cc);” The expression “person interested” is defined in S.3(b) of LA Act and as per which, it includes all persons claiming an interest in compensation to be made on account of the acquisition of land. The expression “public purpose” is defined in S.3(f) of LA Act, as per which it includes (iv) the provision of land for a corporation owned or controlled by the State. As regards petitioners, they are Corporations duly owned & controlled by Government and are companies as defined U/s 617 of Companies Act, 1956 as defined U/s 3(cc) of LA Act and not a company for which different provisions are provided under LA Act and the acquisition is made as per Part-II of LA Act. Thus, in terms of procedure provided under LA Act, acquisition proceedings are finalised and accordingly the land sought to be acquired is vested with the Government and only through appropriate Government, the land finally CW 1055/99 //6// acquired is transferred to the Corporation for which it was acquired and even in instant case, possession of acquired land was handed over to petitioners Corporations by authorised officer of State Government and even otherwise mere transfer of possession will not be so material in the facts of instant case particularly when it has been transferred after the land being acquired by appropriate Government invoking its powers under LA Act. S.51 of LA Act reads ad infra: “51.Exemption from stamp duty and fees - No award or agreement made under this Act shall be chargeable with stamp duty, and no person claiming under any such award or agreement shall be liable to pay any fee for a copy of the same.” Thus, S.51 (supra) clearly postulates that Award made under LA Act is exempted from levy of stamp duty. Indisputably in instant case, the land has been transferred to petitioners by appropriate Government in terms of Award passed under LA Act and once the Award is exempted from levy of stamps duty; in such circumstances, very action of Collector (Stamps) (respondents) in initiating proceedings under Stamp Act against respective petitioners and finally charging stamps duty alongwith interest vide judgments impugned are wholly arbitrary and are in clear violation of CW 1055/99 //7// S.51 of LA Act. Pendente instant petitions, interim orders were passed by this Court directing the respondents not to initiate any coercive steps for recovery in pursuance of orders impugned. Consequently, these petitions succeed and are hereby allowed. Notices dt.29/12/98 & judgments dt.12/02/99 impugned herein and as also consequential attachment proceedings initiated against both the Corporations (petitioners) are hereby quashed & set aside. No costs. (Ajay Rastogi), J. K.Khatri/p.7/1055CW99Rsrd17Mar(2).doc