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).
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
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


