J U D G M E N T CIVIL APPEAL NO. 2530 OF 2007 [Arising out of SLP (Civil) No. 5318 of 2007] W I T H CIVIL APPEAL NO. 2531 OF 2007 [Arising out of SLP (Civil) No. 5695 of 2007] S.B. SINHA, J :

means an authority established under Section 38."

6. Chapter IV of the Act deals with planning areas and development plans. Section 13(1) empowers the State Government to constitute planning areas for the purposes of the said Act and define the limits thereof. Sub- section (2) of Section 13 empowers the State Government by notification, inter alia, to alter the limits of the planning area so as to include therein or exclude therefrom such areas, as may be specified in the notification; to amalgamate two or more planning areas so as to constitute one planning area; to divide any planning area into two more planning areas; and to declare that the whole or part of the area constituting the planning area shall cease to be a planning area or part thereof. Sub-section (3) of Section 13 of the Act provides for a non-obstante clause, in terms whereof, the local authority mentioned therein shall in relation to the planning areas from the date of the notification issued under sub-section (1) cease to exercise the powers, perform the functions and discharge the duties which the State Government or the Director is competent to exercise. Section 14 of the Act enables the Director to prepare an existing land use map and development plan. Section 15 enables the Director to carry out the survey and prepare an existing land use map and forthwith publish the same in the manner laid down therein. Once such a plan is published, no person is authorised to institute or change the use of any land or carry out any development of land for any purpose other than that indicated in the existing land use map without the permission in writing of the Director.

7. Clause (b) of sub-section (1) of Section 16, however, provides :

8. Section 17 provides as to what should be the contents of the development plan. Section 17A(1) provides for constitution of a committee; sub-sections (2) and (3) whereof read as under :

9. Section 18 of the Act provides for publication of a development plan; in terms whereof the objections and suggestions in writing are invited with respect thereto. The notice in terms of the said provision is to specify in regard to the draft development plan, inter alia, the following particulars :

10. Section 19 provides for sanction of development plans, sub-section (2) whereof reads as under :

11. Preparation of zoning plan is envisaged under Chapter V thereof. Section 20 reads as under :

12. In the zoning plan more details of land use as indicated in the development plan are to be indicated and, inter alia, shall :

13. Chapter VI of the Act deals with control of development and use of land, provided that the overall control of development and use of land in the State shall vest in the State Government; sub-section (2) of Section 24 reads as under :

14. Section 25 envisages that the use and development of land shall conform to the provisions of the development plan. Section 38 occurring in Chapter VII provides for establishment of a Town and Country Development Authority, sub-sections (1) and (2) whereof read as under :

15. Section 49 of the Act envisages that a town development scheme may make provision for the matters specified therein including acquisition of land for the purposes mentioned therein as also any other work of such a nature as would bring about environmental improvements which may be taken up by the authority with the prior approval of the State Government.

16. Sub-sections (1), (2), (3) and (4) of Section 50 of the Act, which are material for our purpose, read as under :

17. A proviso has been added thereafter to sub-section (4) by Act of 2004 in terms whereof a draft scheme must be approved within the period of one year from the publication thereof. Section 51 provides for revision of the draft scheme. Section 53 imposes restrictions on land use and land development in the following terms :

18. Section 55 provides that land needed for the purpose of town development scheme shall be deemed to be land needed for public purpose. Section 72 empowers the State Government to supervise and control the acts and proceedings of the officers appointed under Section 3 and the authorities constituted under the said Act. The State can issue directions in terms of Section 73 of the Act. Section 75 Section provides for delegation of powers. Notifications :

19. On or about 13.02.1974, the State Government issued a notification under sub-section (1) of Section 13 of the Act constituting Indore Planning Area, the limits whereof were defined in the schedule appended thereto. Indisputably, it constituted only 37 villages. The villages Bicholi and Kanadia, with which we are concerned herein, were not included therein.

20. The State Government in exercise of power conferred upon it under Section 38 of the Act issued a notification establishing the Appellant- Authority, namely, 'Indore Vikas Pradhikaran' from 13.05.1977 in respect of the area specified in the notification dated 13.02.1974.

21. On or about 30.03.1999, the State Government delegated its power under Sections 13 and 47A of the Act in favour of the District Planning Committee and it in exercise of said delegated power by a notification dated 13.11.2000 amended the planning area by adding 115 villages therein which included the said villages Bicholi and Kanadia. By a notification dated 28.06.2002, it, however, further amended the extent of planning area by deleting 62 villages therefrom. Bicholi and Kanadia villages were, however, retained in the said amended notification.

22. Upon compliance of the usual statutory formalities, the appellant published a draft development plan on 27.06.2003. The said plan was in respect of Urban Development Scheme No.164. Objections and suggestions in respect thereof were called for. Allegedly, objections and suggestions having been filed; they were heard by the Development Planning Committee during the period between 25.08.2003 and 03.09.2003. By a resolution adopted in a meeting held on 20.08.2004 a decision in anticipation of approval of the Government under Section 50(1) of the Act was proposed, which included the lands of villages Bicholi and Kanadia, inter alia, for construction of a bye-pass road of 60 metres width. A declaration of intention to prepare a town development scheme in terms of sub-section (2) of Section 50 was issued on 24.08.2004. Indisputably, in terms of sub- section (3) of Section 50 of the Act, the draft town development scheme was to be prepared within a period of two years therefrom. On or about 02.12.2004, Respondent applied for sanction of development plans under Section 29(1) of the Act. We may, however, notice that on 04.01.2005, the said draft development plans were returned by the State of Madhya Pradesh in terms of Section 19(1) of the Act with a direction that the plans be prepared for the projected population as in the year 2021 and the same be placed before the Government for approval as soon as possible.

23. The State of Madhya Pradesh, however, issued a notification in terms of sub-section (1) of Section 38 of the Act, inter alia, in respect of the villages in question, namely, Bicholi and Kanadia only on 28.10.2005. Appellant issued a notification on 18.05.2006 inviting objections in respect of the said scheme. A Draft Development Plan-2021 was published on 13.07.2006.

Contentions of the writ petitioner-respondents :

They submitted applications for grant of building plan in the year 1990 and the same was sanctioned on or about 05.04.1991.

25. Respondents, as noticed hereinbefore, applied for and obtained sanction in terms of the building bye-laws framed by the respective gram panchayats in 1991 for grant of development plans under Section 29(1) on 02.12.2004. The said applications were rejected by the Joint Director, Town and Country Planning in view of the purported publication of the plan under sub-section (2) of Section 50 of the Act. Respondents filed a writ petition against the said order, inter alia, praying for issuance of a writ or order in the nature of mandamus directing the said authority to sanction the site plan which had been submitted. The said writ petitions were dismissed by a learned Single Judge by an order dated 17.05.2006. Writ appeals were preferred thereagainst, which have been allowed by the Division Bench of the High Court by its judgment dated 06.03.2007.

High Court Judgment :

Submissions :

(ix) In any event, private interest must be waived to public interest.

(x) The High Court committed a manifest error insofar it failed to take into consideration that the planning area having been extended by a notification issued by the District Planning Committee, the same would subserve the purpose of the notification dated 28.10.2005 issued under sub-section (1) of Section 38 of the Act.

28. Mr. Banthia, the learned counsel appearing on behalf of the State had not made any separate submission before us.

29. Mr. C.A. Sundaram and Mr. Arun Jaitley, learned Senior Counsel appearing on behalf of the respondents in these appeals, on the other hand, would submit :

Authority, the purported town development scheme would not be applicable in relation thereto. Only because the planning area has been extended by the District Planning Committee, the same would not ipso fact enlarge the territorial jurisdiction of the Appellant- Authority.

(ii) Safeguard of public interest has sufficiently been taken care of in terms of the Act., as upon issuance of a notification under Section 13 of the Act, the Director only is authorised to sanction a plan for development and carry out other functions as laid down under Sections 15, 16 and 17 of the Act.

(iii) The committee constituted under Section 17-A of the Act is the only authority which can consider and suggest modifications in the draft development plan prepared by the Director under Section 14, whereafter only a draft development plan can be published in terms of Section 18; sub-section (2) whereof in turn envisages consideration of objections, suggestions, etc.

(iv) Only upon completion of the procedures laid down in the said provisions development plan can be sanctioned by the State under Section 19 and, thus, in the event the State Government has power to make modification in the development plan, the same would come into operation only from the date of publication of the notification in the gazette issued under sub-section (4) thereof.

(v) Procedure laid down in the provisions of the Act having not been fulfilled, the impugned action had resulted in breach of law and, thus, the same had rightly been struck down.

(vi) Chapter V of the Act provides for preparation of zoning plans and the contents thereof having been prescribed, the safeguards envisaged under Sections 18 and 19 of the Act would take care of public interest involved, inasmuch the overall control and development as also land use is vested in the Director and in that view of the matter unless a final development plan comes into being, the Appellant-Authority cannot be held to have any jurisdiction thereover in view of Section 38 of the Act.

(vii) The definition of the 'town development scheme' as contained in Section 2(u) of the Act presupposes existence of a sanctioned development plan prepared as per law, and, thus, in absence thereof a town development scheme under Section 50 cannot be made.

(viii) In view of the fact that the State Government has issued a notification on 28.10.2005 extending the area of operation of the Appellant- Authority, the scheme illegally notified by it would not be invalidated.

(ix) Gram Panchayat of the village being the competent authority at the relevant time having sanctioned the building plan, a vested right had accrued in favour of the first respondent and such a power having been acknowledged and accepted under the provisions of the Act, the same cannot be taken away.

Analysis of the statutory provisions :

planning areas.

33. Chapter V of the Act deals with the preparation, finalization, review and modifications of the zonal plan wherewith we are not concerned much in these appeals. Chapter VI of the Act provides for control of development and use of land. In terms of Section 24 of the Act, the Director is to control land use. Preparation of development plan, prohibition of development without permission and matters connected therewith and incidental thereto are also dealt with in Chapter VI. Chapter VII of the Act, however, provides for shift of control in respect of land use and development for the hands of the Director and, consequently of the State to the Town and Country Development Authority. Section 38 provides for establishment of Town and Country Development Authority.

34. The Act envisages the following steps which are required to be complied with :

35. Before the procedure referred to hereinbefore is applied to the case at hand, it would appear that the notification dated 13.02.1974 issued under Section 13 of the Act extending the planning area would not include the land of the respondents being outside its territorial jurisdiction. By reason of 1977 Notification the villages in question in which the lands of the respondents are situated, Indore Development Plan, 19991 would not have any application thereover. The notification issued under Section 38(1) of the Act on 09.05.1977, would, thus, be limited to the area specified under the notification dated 13.02.1974.

36. A Town and Country Development Authority although may have something to do with the preparation of the draft development plan. It exercises complete control, subject of course to the power of the State Government, to give directions, exercises revisional power, etc. over implementation of the development plan by making town development schemes.

37. Chapter VIII of the Act deals with special areas. Chapter IX, however, envisages power of the State Government of supervision and control as also to issue necessary directions. The State has also the power to review plans for ensuring conformity. It may also delegate its power from time to time. Dissolution of authority at the hands of the State is envisaged under Section 76 of the Act.

38. When a planning area is defined, the same envisages preparation of development plan and the manner in which the existing land use is to be implemented. A development plan in some statutes is also known as a master plan. It lays down the broad objectives and parameters wherewith the development plan is to deal with. It also lays down the geographical splitting giving rise to preparation and finalization of zonal plans. The zonal plans contain more detailed and specific maters than the master plan or the development plan. Town planning scheme or lay-out plan contains further details on plot-wise basis. It may provide for the manner in which each plot shall be dealt with as also the matter relating to regulations of development.

39. Once, however, the existing land use is in place, subject to certain restrictions contained in the Act, the Director would permit land use in the same manner as is found to be existing.

40. The old laws, in relation thereto, as also the permissions granted by the local authorities which includes a gram panchayat are permitted to operate till new laws are framed and/ or till new building regulations are made.

41. When existing land use is in place, use thereof for purposes other than the existing land use is frozen. However, subject to permission granted by the Director, the development of land is not frozen.

42. When a draft development plan is prepared, the same is subject to grant of approval and/ or modification thereof. We will deal with the matter at some details a little later but at this stage, we may notice that end use of the land is not frozen until a final sanction plan comes into being. A town planning scheme, as would appear from its definition contained in Section 2(4) of the Act, is prepared only for the purpose of implementation of a development plan. Yet again, we would deal with the question as to whether the same would bring within its sweep the draft development plan or only final development plan a little later, but it may be noticed that once a valid town planning scheme comes into force, indisputably, there may be freezing of land use as also freezing of development and, thus, a total embargo is placed except in such cases where the Director had granted permission. Section 53 of the Act, however, in the event a valid town planning scheme is made, places a total embargo both on land use as also the development. Even the Director is denuded of its power to issue any further permission. Existing land use, draft development plan and final development plan envisage two-stage exercise. In drafting or finalizing a zonal plan, a similar exercise is undertaken. In making a town development scheme, however, the process undertaken is a three-stage one inasmuch as an intention therefor is declared which entails serious consequences and, as noticed hereinbefore, by reason thereof, a total embargo is imposed both on land use as also the development. For the said purpose, a time limit within which a draft town planning scheme has to be finalized is provided but the same can be subject to modification by the State which ordinarily should be with a view to deal with the same in line with the final development plan.

Principal questions :

43. In these appeals, principally, we are beset with two questions:

Competing Interest :

44. There are two competing interests, viz., one, the interest of the State vis-`-vis the general public and, two, to have better living conditions and the right of property of an individual which although is not a fundamental right but is a constitutional and human right.

45. Before we embark upon the questions involved in these appeals, we would like to make some general observations.

46. Town and country planning involving land development of the cities which are sought to be achieved through the process of land use, zoning plan and regulating building activities must receive due attention of all concerned. We are furthermore not oblivious of the fact that such planning involving highly complex cities depends upon scientific research, study and experience and, thus, deserves due reverence.

47. Where, however, a scheme comes into force, although it may cause hardship to the individual owners as they may be prevented from making the most profitable use of their rights over property, having regard to the drastic consequences envisaged thereunder, the statute should be considered in such a manner as a result whereof greater hardship is not caused to the citizens than actually contemplated thereby. Whereas an attempt should be made to prevent unplanned and haphazard development but the same would not mean that the court would close its eyes to the blatant illegalities committed by the State and/or the statutory authorities in implementation thereof. Implementation of such land development as also building laws should be in consonance with public welfare and convenience. In United States of America zoning ordinances are enacted pursuant to the police power delegated by the State. Although in India the source of such power is not police power but if a zoning classification imposes unreasonable restrictions, it cannot be sustained. The public authority may have general considerations, safety or general welfare in mind, but the same would become irrelevant, as thereby statutory rights of a party cannot be taken away. The courts must make an endeavour to strike a balance between public interest on the one hand and protection of a constitutional right to hold property, on the other.

48. For the aforementioned purpose, an endeavour should be made to find out as to whether the statute takes care of public interest in the matter vis-`- vis the private interest, on the one hand, and the effect of lapse and/ or positive inaction on the part of the State and other planning authorities, on the other.

49. The courts cannot also be oblivious of the fact that the owners who are subject to the embargos placed under the statute are deprived of their valuable rightful use of the property for a long time. Although ordinarily when a public authority is asked to perform statutory duties within the time stipulated it is directory in nature but when it involves valuable rights of the citizens and provides for the consequences therefor it would be construed to be mandatory in character.

50. In T. Vijayalakshmi v. Town Planning Member [(2006) 8 SCC 502], this Court held:

It was further observed:

51. What would be a public purpose in such a matter has been stated in Prakash Amichand Shah v. State of Gujarat & Others [(1986) 1 SCC 581], whereupon the State itself relied upon, in the following terms :

The impugned provision does not subserve such purpose.

52. It is also not a case like State of Gujarat v. Shantilal Mangaldas & Ors. [1969 (3) SCR 341], that when a development is made, the owner of the property not only gets much more than what he would have got, if the same remained undeveloped in the process but also get the benefit of living in a developed town having good town planning.

53. The courts should, therefore, strive to find a balance of the competing interest.

Human Right Issue :

54. The right of property is now considered to be not only a constitutional right but also a human right.

55. The Declaration of Human Rights (1789) enunciates under Article 17 " since the right to property is inviolable and sacred, no-one may be deprived thereof, unless public necessity, legally ascertained, obviously requires it and just and prior indemnity has been paid". Further under Article 217 (IIII) of 10th December, 1948, adopted in the General Assembly Resolution it is stated that : (i) Everyone has the right to own property alone as well as in association with others. (ii) No-one shall be arbitrarily deprived of his property.

56. Earlier human rights were existed to the claim of individuals right to health, right to livelihood, right to shelter and employment etc. but now human rights have started gaining a multifacet approach. Now property rights are also incorporated within the definition of human rights. Even claim of adverse possession has to be read in consonance with human rights.

57. As President John Adams (1797-1801) put it, :

58. Property, while ceasing to be a fundamental right would, however, be given express recognition as a legal right, provisions being made that no person shall be deprived of his property save in accordance with law.

Interpretation of the Act :

59. The Act being regulatory in nature as by reason thereof the right of an owner of property to use and develop stands restricted, requires strict construction. An owner of land ordinarily would be entitled to use or develop the same for any purpose unless there exists certain regulation in a statute or a statutory rules. Regulations contained in such statute must be interpreted in such a manner so as to least interfere with the right of property of the owner of such land. Restrictions are made in larger public interest. Such restrictions, indisputably must be reasonable one. [See Balram Kumwat v. Union of India & Ors. (2003) 7 SCC 628; Krishi Utpadan Mandi Samiti & Ors. v. Pilibhit Pantnagar Beej Ltd. & Anr. (2004) 1 SCC 391; and Union of India & Ors. v. West Coast Paper Mills Ltd. & Anr. (2004) 2 SCC 747]. The statutory scheme contemplates that a person and owner of land should not ordinarily be deprived from the user thereof by way of reservation or designation.

60. Expropriatory legislation, as is well-known, must be given a strict construction.

61. In Hindustan Petroleum Corporation Ltd. v. Daius Shapur Chenai & Ors. [(2005) 7 SCC 627], construing Section 5A of the Land Acquisition Act, this Court observed :

It was further stated :

62. In State of Rajasthan & Ors. v. Basant Nahata [JT 2005 (8) SC 171], it was opined :

63. In State of Uttar Pradesh v. Manohar [(2005) 2 SCC 126], a Constitution Bench of this Court held :

This is a case where we find utter lack of legal authority for deprivation of the respondent's property by the appellants who are State authorities"

64. In Jilubhai Nanbhai Khachar & Ors. v. State of Gujarat and Anr. [(1995) Supp. 1 SCC 596], the law is stated in the following terms :

It was further observed :

65. Rajendra Babu, J (as the learned Chief Justice then was) in Sri Krishnapur Mutt, Udupi v. N. Vijayendra Shetty and Anr. [1992 (3) Kar.L.J. 326] observed :

66. The question has also been addressed by a decision of the Division Bench of this Court in Pt. Chet Ram Vashist (Dead) by LRs. v. Municipal Corporatiopn of Delhi [(1995) 1 SCC 47], wherein R.M. Sahai, J., speaking for the Bench opined :

[See also Raju S. Jethmalani v. State of Maharashtra [(2005) 4 SCALE 688].

Application of the Act :

67. While determining the questions involved in these appeals, we are not unmindful that the purpose and object of the town development scheme is a laudable one insofar as it purports to allocate areas covered by Scheme No. 164 for residential purposes and a bypass road of 70 feet wide is to be built along the eastern periphery of the area covered by the Scheme. The question, however, would be as to whether the development can be said to be a haphazard one or would completely destroy the purpose for which the land was to be reserved for planned development of the residential area.

68. The process started in the year 1974. Only 37 villages were included within the planning area. It may be that with the passage of time the requirements for a better planned city were felt, but it is difficult to conceive that the State of Madhya Pradesh while constituting the appellant  authority in terms of Section 38(1) of the Act by reason of its notification dated 09.05.1977 was wholly oblivious thereto. When the Act came into force the existing land use was determined. The area for which, thus, land could be put to use was fixed. No land could be used for a purpose which is not envisaged by land use.

69. A Director who is a very high ranking officer and is answerable only to the State is appointed under the Act to put an eye over the development activities; be it by the developers or others. Apart from the fact that gram panchayat which is a local authority within the meaning of the provisions of the Act had the occasion to consider each application for grant of sanction of the building plans which presumably would require to be drawn directly in terms of the building bylaws framed under a statute which in turn gave rise to a presumption that it had received an approval of the State, in the event of any further development the permission of the Director is necessary. The Director, however, being an authority under the Act was statutorily enjoined to perform his duties within the four-corners of the statute. Whereas the said statutory authority is required to apply its mind before an application for grant of development of land is filed, which itself having regard to its wide definition is extensive in nature, to the requirements of law, it cannot unduly withhold such permission if the application otherwise fulfils the statutory conditions. The Act itself envisages that in the event an application is not disposed of within the time specified, a development plan would be deemed to be sanctioned. [See Section 30(5) of the Act] Land use, therefore, is restricted. The manner in which the permission for construction of building is to be granted is also well-defined.

70. Respondents obtained permission for development from the competent authority for diversion of land use as far back as on 12.01.1989. They had applied for and were granted sanction of building plan by the gram panchayat in the year 1991. No step was taken by the statutory authorities or the appellant herein to notify a draft development plan. It was not notified till 2000. No further step was taken pursuant thereto or in furtherance thereof. Respondents filed an application before the Director for grant of permission only on 2.12.2004 which was rejected by reason of an order dated 14.12.2004 purported to be for the following reason:

71. We may notice two precise submissions of Mr. Venugopal at this stage:

72. The draft development plan was published on 27.06.2003 although it was sent for consideration of the State in terms of Section 19 of the Act on 9.10.2003. The same was returned to the appellant  authority stating that plan to be prepared for the projected population in the year 2021 on or about 4.01.2005. A draft development plan 2021 was published only on 13.07.2007 whereas the declaration by the appellant  authority was notified on 20.08.2004. Submission of Mr. Venugopal that a development plan would include a draft development plan is sought to be made as the statute has interchangeably used draft development plan, sanctioned development plan as development plan and, secondly, on the strength of clause (iv) of Sub-section (1) of Section 18 of the Act laying down that a notice shall be issued thereunder containing inter alia the particulars, viz., the provisions for enforcing the draft development plan and stating the manner in which permission for development may be obtained.

73. We do not see any force in the said argument. It is possible to enforce a draft development plan in a given case, but the statute must specifically provide for the same. But, a draft development plan which has not attained finality cannot be held to be determinative of the rights and obligations of the parties and, thus, it can never be implemented. Section 50 of the Act explicitly states that the authority may declare its intention to prepare a town development scheme which having regard to Section 2(u) of the Act must be read to mean declaration of its implementation to prepare a scheme for the implementation of the provisions of a development plan.

74. We have come across some legislations, as for example, The Himachal Pradesh Town and Country Planning Act, 1977 where a provision has been made for preparation of an interim development plan. It is not in dispute that legislations relating to town and country planning are somewhat similar. Had the legislature thought of implementation of a draft development plan, they could have also provided for an interim development plan which ipso facto would have been enforceable.

75. A development plan even in ordinary parlance can be implemented only when it is final and not when it is at the draft stage, i.e., susceptible to changes. Not only land use may make geographical change, the other details may also undergo a change. The objections and suggestions invited from the general public as also the persons affected may be accepted. There may be realignment. It may undergo serious modifications. Once the legislature has defined a term in the interpretation clause, it is not necessary for it to use the same expression in other provisions of the Act. It is well-settled that meaning assigned to a term as defined in the interpretation clause unless the context otherwise requires should be given the same meaning.

76. It is also well-settled that in the absence of any context indicating a contrary intention, the same meaning would be attached to the word used in the later as is given to them in the earlier statute. It is trite that the words or expression used in a statute before and after amendment should be given the same meaning. It is a settled law that when the legislature uses the same words in a similar connection, it is to be presumed that in the absence of any context indicating a contrary intention, the same meaning should attach to the words. [See Lenhon v. Gobson & Howes Ltd., (1919) AC 709 at 711, Craies on Statute Law, Seventh Edition, page 141 and G.P. Singh's Principles of Statutory Interpretation, Tenth edition, page 278]

77. In Venkata Subamma and another v. Ramayya and others [AIR 1932 PC 92], it is stated that an Act should be interpreted having regard to its history, and the meaning given to a word cannot be read in a different way than what was interpreted in the earlier repealed section.

78. Land use, development plan and zonal plan provided for the plan at macro level whereas the town planning scheme is at a micro level and, thus, would be subject to development plan. It is, therefore, difficult to comprehend that broad based macro level planning may not at all be in place when a town planning scheme is prepared.

79. Once a final plan comes into force, steps inter alia are taken for acquisition of the property. Section 34 of the Act takes care of such a contingency. The town development scheme, as envisaged under Section 49 of the Act, specifically does it. Out of nine clauses contained in Section 49 , six relate to acquisition of land for different purposes. Clauses (v), (viii) and

(ix) only refer to undertaking of such buildings or construction of work by the authority itself, reconstructions for the purpose of buildings, roads, drains, sewage lines and the similar amenities and any other work of a nature such as would bring about environmental improvements.

80. If the submission of Mr. Venugopal is accepted, a purpose which is otherwise not contemplated under Chapter IV would be brought in by side door in Chapter VII. It is well-settled that would cannot be done directly cannot be permitted to be done indirectly.

81. The purpose of declaring the intent under Section 50(1) of the Act is to implement a development plan. Section 53 of the Act freezing any other development is an incidence arising consequent to the purpose, which purpose is to implement a development plan. If the purpose of declaring such an intention is merely to bring into play Section 53 , and thereby freeze all development, it would amount to exercise of the power of Section 50(1) for a collateral purpose, i.e., freezing of development rather than implementation of a development plan. The collateral purpose also will be to indirectly get over the fact that an owner of land pending finalization of a development plan has all attendant rights of ownership subject to the restraints under Section 16 . If the declaration of intent to formulate a town development scheme is to get over Section 16 and freeze development activities under Section 53 , it would amount to exercise of power for a collateral purpose.

82. A bare perusal of Sections 17 and 49 would show that it is the development plan which determines the manner of usage of the land and the town development scheme enumerates the manner in which such proposed usage can be implemented. It would follow that until the usage is determined through a development plan, the stage of manner of implementation of such proposed usage cannot be brought about. It would also therefore follow that what is contemplated is the final development plan and not a draft development plan, since until the development plan is finalized it would have no statutory or legal force and the land use as existing prior thereto with the rights of usage of the land arising therefrom would continue.

83. To accept that it is open to the town development authority to declare an intention to formulate a town development scheme even without a development plan and ipso facto bring into play a freeze on usage of the land under Section 53 would lead to complete misuse of powers and arbitrary exercise thereof depriving the citizen of his right to use the land subject to the permitted land use and laws relating to the manner of usage thereof. This would be an unlawful deprivation of the citizen's right to property which right includes within it the right to use the property in accordance with the law as it stands at such time. To illustrate the absurdity to which such an interpretation could lead it would then become open to the town development authority to notify an intent to formulate a town development scheme even in the absence of a development plan, freeze all usage of the property by a owner thereof by virtue of Section 53 of the Act, and should no development plan be finalized within 3 years, such scheme would lapse and the authority thereupon would merely notify a fresh intent to formulate a town development scheme and once again freeze the usage of the land for another three years and continue the same ad infinitum thereby in effect completely depriving the citizen of the right to use his property which was in a manner otherwise permitted under law as it stands.

84. The essence of planning in the Act is the existence of a development plan. It is a development plan, which under Section 17 will indicate the areas and zones, the users, the open spaces, the institutions and offices, the special purposes, etc. Town planning would be based on the contents of the development plan. It is only when the development plan is in existence, can a town planning scheme be framed. In fact, unless it is known as to what the contents of a possible town planning scheme would be, or alternatively, whether in terms of the development plan such a scheme at all is required, the intention to frame the scheme cannot be notified.

85. Section 50 of the Act no doubt uses the word "at any time". The question, however, is what that would imply. The town planning scheme, it would bear repetition to state, is made for the purpose of implementation of a development plan. Ordinarily, therefore, it would envisage the time period for coming into force of the development plan and the expiry thereof. Unless such a construction is to be given to the words "at any time", it would lead to manifest injustice and absurdity which is not contemplated by the statute. For giving an effective meaning to the provisions of Section 50 of the Act, the same is required to be read in the context of other provisions of the statute and in particular the interpretation clauses which we have noticed hereinbefore.

86. Section 50(1) of the Act provide for declaration of this intention to prepare town development scheme "at any time". The words "at any time"

87. The words "at any time" have to be interpreted in the context in which they are used. Since a town development scheme in the context of the Act is intended to implement the development plan, the declaration of intention to prepare a scheme can only be in the context of a development plan. The starting point of the declaration of the intention has to be upon the notification of development plan and the outer limit for the authority to frame such a scheme upon lapsing of the plan. That is the plausible interpretation of the words "at any time" used in Section 50(1) of the Act. [See State of H.P. & Ors. v. Rajkumar Brijender Singh & Ors. , (2004) 10 SCC 585]

88. For construing a statute of this nature, we are dealing with, rule of purposive construction has to be applied.

89. In Francis Bennion's Statutory Interpretation, purposive construction has been described as under :

[See also Bombay Dyeing and Mfg. Co. Ltd. v. Bombay Environmental Action Group and Ors. , ( 2006) 3 SCC 434 and National Insurance Co. Ltd. v. Laxmi Narain Dhut , 2007 (4) SCALE 36]

90. In Maruti Udyog Ltd. v. Ram Lal and Others [(2005) 2 SCC 638], while interpreting the provisions of Industrial Disputes Act, 1947 , the rule of purposive construction was followed.

91. In Reserve Bank of India v. Peerless General Finance and Investment Co. Ltd. [(1987) 1 SCC 424] this Court stated:

92. In 'The Interpretation and Application of Statutes' by Reed Dickerson, the author at p.135 has discussed the subject while dealing with the importance of context of the statute in the following terms:

93. An area conceived of under the Act, as noticed hereinbefore, consists of both plan area and non-plan area. Development of plan area may be in phases. A master plan may be followed by a zonal plan and a zonal plan may be followed by a town development scheme.

94. The limit of Indore planning area was specified by a notification dated 13.02.1974 in terms of Sub-section (1) of Section 13 of the Act. Appellant  Authority was constituted by the State of Madhya Pradesh in exercise of its power under Section 38(1) of the Act for the area comprised within the Indore planning as specified in the notification dated 13.02.1974. The State in exercise of its jurisdiction under Sub-section (1) of Section 75 of the Act delegated its power conferred upon it under Sections 13 and 47A of the Act upon the District Planning Committee. No power under Section 38 was delegated. The District Planning Committee exercises its jurisdiction pursuant to the said delegation in terms of a notification dated 13.11.2000 extending the Indore Development Planning Area to 152 villages. The villages Bicholi and Kanadia were not included in the notification dated 12.08.1977. They were included only in the notification issued by the District Planning Committee.

95. The District Planning Committee, however, issued another notification amending the planning area to 90 villages only and deleting 62 villages from its earlier notification.

96. There cannot be any doubt whatsoever that even a delegatee exercises its power relying on or on the basis of its power conferred upon it by the delegator, its act would be deemed to be that of the principal as has been held by this Court in State of Orissa and Others v. Commissioner of Land Records and Settlement,Cuttack and Others [(1998) 7 SCC 162], this Court held:

97. Whether issuance of notification by the delegatee would automatically extend the jurisdiction of the appellant is the question. Before we consider the legal issues involved, we may notice that the appellant filed an application before the High Court wherein it was stated:

98. The State, it is interesting to note, took a similar plea when the appellant  authority sought permission for new Transport Nagar Scheme on 265 hectares of land situated in village Mundrla Nayata by its letter dated 23.08.2005 stating:

beyond its prescribed operational area."

99. Yet again, the State in exercise of its power under Section 38(1) of the Act notified planning area confirming to the one identified by the District Planning Committee in terms of its notification dated 28.10.2005.

How State understood it :

100. Application of the principle of executive construction would lead to a conclusion that the State and the appellant themselves proceeded on the basis that in terms of the notification issued by the District Planning Committee, the area of operation of the appellant was not extended.

101. In G.P. Singh's 'Principles of Statutory Interpretation, 10th Edn. at p. 319, it is stated :

Contemporary official statements throwing light on the construction of a statute and statutory instruments made under it have been used as contemporanea expositio to interpret not only ancient but even recent statute both in England and India."

[See also S.B. Bhattacharjee v. S.D. Majumdar & Ors., Civil Appeal arising out of S.L.P. (Civil) No. 3413 of 2006, disposed of today].

Exercise of delegated power  effect of :

102. The State exercises its different power for different purposes. Issuing notification of a planning area, whether named or not, for the purpose of Section 13(1) is different from the one for which a development authority is created within the meaning of Section 38(1) of the Act. The State in a given situation may appoint more than one authority for the same planned area. The State delegated its power upon the District Planning Authority under Section 38 of the Act. The appellant  authority was created for a definite purpose. Its jurisdiction was limited to the area notified. When so creating, although 1974 notification was referred to, the same was only for the purpose of limiting the area of operation of the appellant  authority. The principle of legislation by incorporation was applied and not the principle of legislation by reference.

103. The difference between the two principles is well-known. Whereas in the case of the former, a further notification amending the ambit or scope of the statute would be necessary, if the statute incorporated by reference is amended, in the latter it would not be necessary.

104. In Rakesh Vij v. Dr. Raminder Pal Singh Sethi and Ors. [AIR 2005 SC 3593], this Court observed:

105. It is furthermore a well-settled principle of law that a delegatee must exercise its jurisdiction within the four-corners of its delegation. If it could not exercise its delegated power for the purpose of creation of the appellant authority or extended its jurisdiction, in our opinion, it cannot be done by amendment of a notification issued under Section 13(1) of the Act.

106. We may at this juncture notice the effect of the notifications issued by the authority :

? It is also a matter of record that the Indore Development Plan, 1991 notified in 1975 does not admittedly include the village in which the land of Respondent No. 1 is situate.

? The notification issued under Section 38(1) of the Act on 09.05.1977 is also limited to the area specified in the notification dated 13.02.1974 and admittedly does not include the land of Respondent No. 1.

107. Admittedly, the villages in question had been included by the State in its notification issued on 28.10.2005. Prior thereto, the said villages having not been included within the area of operation of the appellant authority, any action taken either by way of its intention to frame a town planning scheme or otherwise shall be wholly illegal and without jurisdiction. It would render its act in relation to the said villages a nullity.

108. It is, therefore, difficult for us to accept the submission of Mr. Venugopal and Mr. Gambhir that the notification dated 13.11.2000 subsumes in the notification dated 12.08.1977.

109. For the reasons aforementioned, we do not have any other option but to uphold the impugned judgment of the High Court.

110. We may, however, observe that several other contentions, as noticed hereinbefore, have been raised before us but we do not find any necessity to go thereinto.

Should we issue Mandamus ?

111. Before parting, however, we must notice a submission of Mr. C.A. Sundaram, learned counsel appearing on behalf of the respondents, to the effect that the High Court committed a manifest error insofar as it limited its direction only to the following:

112. The learned counsel would submit that the said direction is not correct as the High Court should have directed the Director to consider the respondents' application in accordance with the law as it existed at the relevant point of time. We do not subscribe to the said view as it is now well-known that that where a statute provides for a right, but enforcement thereof is in several stages, unless and until the conditions precedent laid down therein are satisfied, no right can be said to have been vested in the person concerned.

113. In Director of Public Works v. Ho Po Sang [1961 AC 901 : (1961) 2 All ER 721], the Privy Council considered the said question having regard to the repealing provisions of the Landlord and Tenant Ordinance, 1947 as amended on 9-4-1957. It was held that having regard to the repeal of Sections 3-A to 3-E, when applications remained pending, no accrued or vested right was derived stating:

[See also Lakshmi Amma v. Devassy [1970 KLT 204]

114. The question again came up for consideration in Howrah Municipal Corpn. v. Ganges Rope Co. Ltd. [(2004) 1 SCC 663], wherein this Court categorically held :

115. In Union of India v. Indian Charge Chrome [(1999) 7 SCC 314], yet again this Court emphasized :

116. In S.B. International Ltd. v. Asstt. Director General of Foreign Trade [(1996) 2 SCC 439], this Court repelled a contention that the authorities cannot take advantage of their own wrong viz. delay in issuing the advance licence, stating :

[See also Kuldeep Singh v. Govt. NCT of Delhi [(2006) 5 SCC 702]

117. For the reasons aforementioned, there is no merit in these appeals which are dismissed accordingly. There shall, however, be no order as to costs.