Case: M/S.Larsen & Toubro Ltd Vs. State Of Gujarat


Decision reasoning: 1[ds]High Court, in our opinion, failed to take note of the affidavit of Mr. Y.S. Trivedi, Senior Manager, L& Ltd. and that of Mr. R.S. Bohora, Manager of the L& Ltd. giving details and placing on record documents to show compliance with the requirements of Rule 4. We do not think it is necessary for us to set out in any detail as to how requirements of Rule 4 have been complied when in presence of the relevant record it was difficult for the respondent to contend otherwise. It was conceded that there was no specific averment relating to rule 3. Even otherwise, we find that stipulations contained in Rule 3 were fully observed. As regards non-compliance of Rule 4 it was submitted that there was no independent report of the collector. That is also not correct. It is not necessary for the Collector personally to examine all the details himself. He can certainly call for the report from the Assistant Collector as the circumstances of a case may demand and act on the same. As a matter of fact only two contentions had been raised by the petitioners before the High Court and that were that the land belonging to a cooperative housing society which itself was a public purpose could not be subject to acquisition and that Rule 4 had not been complied. There were, however, no particulars stated in the petition as to how it could be so said. It is not enough to allege that a particular rule or any provision has not been complied. It is a requirement of good pleading to give details, i.e., particulars as to why it is alleged that there is non-compliance with a statutory requirement. Ordinarily, no notice can be taken on such an allegation which is devoid any particular. No issue can be raised on a plea foundation of which is lacking. Even where Rule Nisi is issued, it is not always for the department to justify its action when the Court finds that a plea has been advanced without any sub stance, though ordinarily department may have to place its full cards before the Court. In the present case, however, we find that the State has more than justified its stand that there has been compliance not only with rule 4 but with Rule 3 as well, though there was no challenge to rule 3 and the averments regarding non- compliance with Rule 4 were sketchy and without any particulars whatsoever, High Court was, therefore, not right in quashing the acquisition proceedings in SCA 1568/87High Court, in our opinion, has not correctly analysed the two judgments of this Court in Balmokand Khatri Educational and Industrial Trust, Amritsar vs. State of Punjab and Balwant Narayan Bhagde vs. M.D. Bhagwat and Ors. to come to the conclusion that actual physic al possession of the land was not taken over by the State.In Balwant Narayan Bhagde vs. M.D. Bhagwat &Ors, 1 SCC 700  ], a three Judge Bench of this Court was considering the question of taking possession of the acquire d land under the ActThis Court has repeatedly held that writ petition challenging the notifications issued under Section 4 and 6 of the Act is liable to be dismissed on the ground of delay and laches if challenge is not made within a reasonable time. This Court has said that the petitioner cannot sit on the fence and allow the State to complete the acquisition proceedings on the basis that notification under Section 4 and the declaration under Section 6 were valid and then to attack the notifications on the grounds which were available to him at the time when these were published as otherwise it would be putting premium on dilatory tactics. Writ petition (SCA 5149/89) is thus barred by laches as well.Special leave petition No 11778/97 arises out SCA No. 5171/91 which was filed by the L& Ltd. in the High Court. In the writ petition L& Ltd. had prayed for quashing of the action of the State Government in withdrawing land under survey Nos. 39, 41/2 and 44/2 of village Magdalla from acquisition under Section 48(1) of the Act of which acquisition was for the purpose of housing colon y for L& Ltd. and sought a direction to the State Government and Special Land Acquisition Officer, respondents 1 and 2 herein, to complete the acquisition proceedings after notifications under Section 4 and under Section 6 which had be en issued. There are as many as 13 respondents in this appeal, respondents 3 to 13 being the persons whose land the State Government has withdrawn from acquisition under Section 48 of the Act. Appellant admits that in respect of lands comprising in survey Nos. 39 and 44.2 possession had not been taken. However, its contention is that possession of land comprised in Survey No. 41/2 was taken and on that account also any action under section 48(1) of the Act would be bad in law. The fact t hat possession of land in the writ petition and Survey No. 41/2 was in fact taken has strenuously denied by not only the private respondents but also by the State Government. It is admitted that though there is an order of the State Government withdrawing from acquisition on notification has yet been issued in the official gazette and on that ground also appellant submits there could not be any valid withdrawal from acquisition and any action of the respondents in pursuance to that very decision of State Government to withdraw from acquisition would be illegalIn respect of certain portions of land comprised in Survey No. 41/2, subject matter of SCA 5149/89 (SLP 11900/97), we have already held that L& Ltd. was put in possession. Any action under Section 48 of the Act to that extent of land is bad in lawM r. Naik said it was also wrong for the High Court to observe that the land which was proposed to be withdrawn from acquisition was in reality not needed by the appellant and on that account withdrawal from acquisition would not have seriously prejudiced the appellant in the implementation of its housing scheme for its employees and that "nothing of that sort has been taken place in this case". Mr. Naik said has per the report of the Surat Urban Development Authority all the lands which were subject matter of acquisition in all the three writ petitions measured 29 acres which satisfied only 45% need for housing of the employees of the L& Ltd. he said the observations of the High Court were entirely against the record. Mr. Naik appears to be right in his submissions . High Court has not properly considered the need of the appellant. it was only after all the enquiries as required under the Act and the Rules has been made that action to acquire land for housing scheme of the employees of the appellant was takenIt was thus contended that when statute did not require to issue any notification for withdrawal from the acquisition, reference to Section 21 of the General Clauses Act was not correctMr. Salve said that Section 21 expressly referred to the powers being given to issue notifications etc. under an Act o r Regulations and under this that poser included power to withdraw or rescind any notification in the similar fashion. It was therefore submitted that when Section 48 did not empower the State Government to issue any notification and it could not be read into that provision that withdrawal had to be issued by a notification. His argument, therefore, appeared to be that on correct interpretation of Section 21 of the General Clauses Act before reaching the stage of Section 48, the St ate Government could withdraw notifications under Sections 4 and 6 of the Act by issuing notification withdrawing or rescinding earlier notifications and that would be the end to the acquisition proceedings. We do not think that Mr. Salve is quite right in his submissions. When Sections 4 and 6 notifications are issued, much has been done towards the acquisition process and that process cannot be reversed merely be rescinding those notification. Rather it is Section 48 under which, after withdrawal from acquisition is made, compensation due for any damage suffered by the owner during the course of acquisition proceedings is determine and given to him. it is, therefore, implicit that withdrawal from acquisition has to be notifiedPrinciples of law are, therefore, well settled. A notification in the Official Gazette is required to be issued if the State Government decides to withdraw from the acquisition under Section 48 of the Act of any land of which possession has not been taken. An owner need not be given any notice of the intention of the State Government to withdraw from the acquisition and the State Government is at liberty to do so. Rights of the owner are well protected by sub-sect ion (2) of Section 48 of the Act and if he suffered any damage in consequence of the acquisition proceedings, he is to be compensated and sub-section (3) of Section 48 provides as to how such compensation is to be determined. There is, therefore , no difficulty when it is the owner whose land is withdrawn from acquisition is concerned. However, in the case a company, opportunity has to be given to it top show cause against any order which the State Government proposes to make withdrawing from the acquisition. Reasons for this are not far to seek. After notification under Section 4 is issued, when it appears to the State Government that the land in any locality is needed for a company, any person interested in such land which has been notified can file objections under Section 5-A(1) of the Act. Such objections are to be made to the collector in writing and who after giving the objector an opportunity of being heard and after hearing of such objections and after making such further enquiry, if any, as the Collector thinks necessary, is to make a report to the State Government for its decision. Then the decision of the State Government on the objections is final. Before the applicability of other provisions in the process of acquisition, in the case of company, previous consent of the State Government is required under Section 39 of the Act nor unless the company shall have executed the agreement as provided in Section 41 of the Act. Before giving such consent, Section 40 contemplates a previous enquiry. then compliance with Rules 3 and 4 of the Land Acquisition (Company) Rules, 1963 is mandatarily required. After the stage of Section 40 and 41 is reached, the agreement so entered into by the company with the State Government is to be published in the Official Gazette, This is Section 42 of the Act which provides that the agreement on its publication would have the same effect as if it had formed part of the Act. After having done all this, State Government cannot unilaterally and without notice to the company withdraw from acquisition. Opportunity has to be given to the company to show cause against the proposed action of the State Government top withdraw from acquisition. A declaration under Section 6 of the Act is made by notification only after formalities under part VII of the Act which contains Section 39 to 42 have been complied and report of the Collector under Section 5-A(2) of the Ac t is before the State Government who consents to acquire the land on its satisfaction that it is needed for the company. A valuable right, thus, accrues to the company to oppose the proposed decision of the State government withdrawing from acquisition. The State Government may have sound reasons to withdraw from acquisition but those must be made known to the company which may have equally sound reasons or perhaps more which might persuade the State Government to reverse its decision withdrawing from acquisition. In this view of the matter it has to be held that Yadi (Memo) dated 11.4.91 and Yadi (Memo) dated 3.5.91 were issued without notice to the appellant (L& Ltd.) and are, thus, not legal.