Case: Krishnakumar Mills Company Limited and Another Vs. State of Gujarat and Others

The appellant challenged the acquisition of his lands bearing plot Nos. 116/1, 116/2, 117 and 119 for a public purpose of "establishing Industrial area by the Gujarat Industrial Development Corporation". The acquisition was made not only of the appellants lands but also of a fairly extensive area of lands belonging to others, for the purpose above mentioned. The Development Corporation has been constituted under the Gujarat Industrial Development Act, 1962 (Act 23 of 1962) for the purposes mentioned therein.      2. The appellant challenged the acquisition mainly on two grounds. According to the appellant the Gujarat Act 23 of 1962 was not valid and secondly the purpose of the acquisition cannot be considered to be for a public purpose.      3. These contentions were rejected by the High Court in the Order under attack. So far as the vires of Act is concerned, it is concluded against the appellant by the decision of this Court reported in Sri. Ramnatanue Housing Society and Another v. State of Maharashtra. ((1970) 3 SCC 323 ) So far as the second contention is concerned that also is covered by the decision of this Court reported in Smt. Somavanti and Others v. The State of Punjab and Others, ((1963) 2 SCR 774  : AIR 1963 SC 151 ) which is against the appellant. Therefore, both the contentions taken before the High Court are no longer available to the appellant.

Court's reasoning:
4. Mr. S. T. Desai, learned for the appellant, stated that his clients lands which were sought to be acquired are really necessary for the development of their own Textile Mills and therefore the acquisition, so far as those lands are concerned, will have to be cancelled. So far as this aspect is concerned the High Court has referred to the fact that the appellants lands form part of a compact block of land required by the Development Corporation for setting up an industrial area and as such those lands cannot be left out of acquisition. We are in agreement with this view of the High Court5. Though all these contentions have been held against the appellants, the High Court has recorded an assurance given by the Counsel for the Development Corporation, that effort would be made to see that, as far as possible, the appellants lands would be made available to them for their expansion if they are ready and willing to take them on the same terms and conditions on which, lands in the area would be given to other industrialists, provided that the appellants lands have not already been allotted to any other industrialist. We should think that there has been a very fair offer made on behalf of the Development Corporation. We dare say that the assurance recorded by the High Court will be acted upon by the concerned authorities.