Supreme Court Partially Allows Appellant in Land Acquisition Dispute — Exercised power under Section 17(4) of Land Acquisition Act, 1894 upheld for planned development of Delhi. Court directed release of land for respondents due to their pre-notification residential purchases and existing residential locality.

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Case Note & Summary

The case arose from land acquisition proceedings under the Land Acquisition Act, 1894 for planned development of Delhi. The respondents were former employees of Birla Cotton Spinning and Weaving Mills Ltd. who had purchased small plots from their employer through registered sale deeds long before the acquisition notification and master plan. The Government invoked the urgency clause under Section 17(1) read with Section 17(4) to dispense with the enquiry under Section 5A. The High Court had quashed the notification on the ground that it did not recite the nature of urgency and that planned development of Delhi was not urgent. The Union of India appealed to the Supreme Court. The Supreme Court held that the High Court's view was not legal and correct. Relying on the Constitution Bench decision in Aflatoon & Ors. v. Lt. Governor of Delhi & Ors., the Court reiterated that exercise of power under Section 17(4) for planned development of Delhi is valid even though development takes long. The subjective satisfaction of the Government based on material on record is entitled to great weight, and the High Court is not a court of appeal over that satisfaction. A notification need not specifically recite the nature of urgency if the record discloses consideration of urgency. However, the Court noted special facts: the employer had obtained sanction from Delhi Municipal Corporation in 1951, the plan was not admitted due to absence of application under Order 41 Rule 27 CPC, about three acres of land had become disused, and respondents had purchased land for residential purpose before notification and master plan. The DDA identified the land in the north-east corner of the Mill land, reserved for institutional purpose and education and research, abutting Mehrauli Road, with Azad Apartments on the eastern side. Since the land was adjacent to existing residential flats and respondents were retired employees in need of housing, the Supreme Court directed the appellant Union of India to change the user of the land in the Master and Zonal Plans, to carve out the land as part of residential purpose, and directed the Lt. Governor to do so. It directed the appropriate Government to suitably consider withdrawal from acquisition only to that extent and allow use for residential purpose. Necessary land for 19 plots was to be released, amenities like road were to be provided, and permission to construct houses as per rules was to be granted. The Court clarified that the direction for release of the land should not be treated as a precedent and was confined to the special facts of the case. The appeal was accordingly allowed to that extent with no costs.

Headnote

A) Land Acquisition - Urgency Clause - Dispensing Enquiry - Land Acquisition Act, 1894, Section 17(1), Section 17(4) - The High Court quashed notification for lack of recital of urgency and because planned development of Delhi was not urgent; Supreme Court held that subjective satisfaction of Government based on material on record is entitled to great weight and High Court is not court of appeal; notification need not recite urgency if record discloses consideration; Aflatoon upheld. Held that High Court view was not legal and correct (Paras 1-2).

B) Appellate Procedure - Additional Evidence in Appeal - Code of Civil Procedure, 1908, Order 41 Rule 27 - Plan obtained from Delhi Municipal Corporation in 1951 produced first time in Supreme Court without application under Order 41 Rule 27 CPC, hence could not be received in evidence (Para 3).

C) Land Acquisition - Release of Land - Special Facts - Land Acquisition Act, 1894 - Respondents purchased land for residential purpose long before notification and master plan; DDA identified land abutting Mehrauli Road with existing residential flats; court directed change of user in Master and Zonal Plans, carving out land for residential purpose and directed appropriate Government to consider withdrawal from acquisition to that extent; not to be treated as precedent (Paras 4-8).

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Issue of Consideration

Whether the Government was justified in invoking Section 17(1) read with Section 17(4) of the Land Acquisition Act, 1894 and dispensing with the enquiry under Section 5A; whether a notification under Section 17(4) must specifically recite the nature of urgency; whether the High Court could quash the notification on the ground that planned development of Delhi was not urgent; whether the land purchased by respondents for residential purpose long before notification could be released from acquisition

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Final Decision

The appeal was allowed to the above extent. The Supreme Court directed the appellant Union of India to change user of the land in the Master and Zonal Plans, to carve out the land as part of residential purpose adjacent to existing residential apartments; directed the Lt. Governor to do so; directed the appropriate Government to suitably consider withdrawal from acquisition only to that extent and allow use for residential purpose; directed release of land necessary for the respondents to construct houses and provide amenities like road for 19 plots; directed necessary permission be given to respondents as per rules; clarified that the direction for release of the land should not be treated as a precedent; no costs.

Law Points

  • Subjective satisfaction of Government under Section 17(4)
  • Notification need not recite urgency if record discloses consideration
  • Planned development of Delhi can justify urgency
  • High Court not court of appeal over subjective satisfaction
  • Withdrawal from acquisition on special facts
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Case Details

1995 LawText (SC) (12) 63

1995-12-12

K. Ramaswamy, B.L. Hansaria

1996 SCC (2) 285, JT 1995 (9) 618, 1995 SCALE (7)348

Shri V.B. Sahariya, Shri Venugopal

Union of India & Ors.

Shri Ghanshyam Dass Kedia & Ors.

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Nature of Litigation

Land acquisition dispute under Land Acquisition Act, 1894 arising from invocation of urgency clause under Section 17(1)/(4) dispensing with Section 5A enquiry for planned development of Delhi.

Remedy Sought

Appellant Union of India sought setting aside of High Court order quashing land acquisition notification and restoration of notification; respondents sought release of their purchased land for residential construction.

Filing Reason

High Court quashed notification on ground that it did not recite nature of urgency and planned development of Delhi was not urgent, leading to appeal by Union of India.

Previous Decisions

The High Court (Division Bench) in W.P. Nos.3084/87 quashed the notification under Section 17(4) dispensing with Section 5A enquiry; the Supreme Court set aside that view and granted limited relief to respondents.

Issues

Whether the Government was justified in invoking Section 17(1) read with Section 17(4) of the Land Acquisition Act, 1894 and dispensing with the enquiry under Section 5A Whether a notification under Section 17(4) must specifically recite the nature of urgency Whether the High Court could quash the notification on the ground that planned development of Delhi was not urgent Whether the land purchased by respondents for residential purpose long before notification could be released from acquisition

Submissions/Arguments

Appellant Union of India contended that the High Court erred in quashing the notification; subjective satisfaction of the Government based on material on record is entitled to great weight and it is not open to the High Court to sit in appeal over that satisfaction; Aflatoon upheld exercise of power under Section 17(4) for planned development of Delhi; notification need not recite urgency if record discloses consideration Respondents contended that they had purchased the land for residential purpose long before the notification and master plan, were retired employees in need of housing, and the land should be released from acquisition

Ratio Decidendi

Exercise of power under Section 17(4) of Land Acquisition Act, 1894 for planned development of Delhi is valid; subjective satisfaction of Government based on material on record is not open to review by High Court as court of appeal; notification need not recite urgency if record discloses consideration; in special facts where land was purchased for residential purpose before acquisition and adjacent to existing residential area, court can direct change of user and withdrawal from acquisition limited to that extent.

Judgment Excerpts

The main question canvassed before the Division Bench in W.P. Nos.3084/87 was that the Government was not justified in invoking s.17(1) read with s.17(4) of Land Acquisition Act, 1894 (for short 'the Act') dispensing with the enquiry under s.5A. It is subjective satisfaction of the Government based on the material on record. The High Court is not a court of appeal over subjective satisfaction and the opinion of the Government is entitled to great weight. The appeal is accordingly allowed to the above extent. The direction for release of the land should not be treated as a precedent in another case. It would be confined to the special facts in this case.

Procedural History

The Division Bench of the High Court in W.P. Nos.3084/87 quashed the land acquisition notification relating to land of respondents, holding that planned development of Delhi was not urgent and exercise of power under Section 17(4) illegal. The Union of India appealed to the Supreme Court. On November 9, 1995, the Supreme Court directed DDA to localise the land of 6600 sq. yds purchased by 20 respondents. The DDA filed an additional affidavit identifying the land. After hearing, the Supreme Court allowed the appeal to the extent of directing change of user and possible withdrawal from acquisition for respondents' residential plots.

Acts & Sections

  • Land Acquisition Act, 1894: Section 5A, Section 17(1), Section 17(4)
  • Code of Civil Procedure, 1908: Order 41 Rule 27
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