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Smart Summary

Factual and Procedural Background

This writ petition challenges notifications issued under the Land Acquisition Act, 1894. The petitioners are the owners and occupants of land bearing survey numbers 217-A and 448 (Rajpur-Hirpur), measuring 4 acres 23 gunthas and 0 acre 17 gunthas respectively. The Municipal Corporation of the City of Ahmedabad (2nd respondent) passed Resolution No. 630 dated 20 November 1957 for acquisition of these and other lands for a slum clearance, housing and road project. Pursuant to that resolution, the Government of Bombay initiated proceedings under the Land Acquisition Act. Two notifications under Section 4 were issued by the Government, one containing an urgency clause (dated 19 December 1957). A Section 6 notification was issued by the Commissioner of Divisions on 5 August 1958 in respect of the notification with the urgency clause; another Section 6 notification was issued on 21 February 1959 without the urgency clause. The petitioners challenged both the Section 4 notification containing paragraph 3 (which applied the urgency/dispensing clause) and the Section 6 notification(s), and raised four principal points for the Court's consideration at the hearing.

Legal Issues Presented

  1. Whether Sections 77 and 78 of the Bombay Provincial Municipal Corporations Act provide the exclusive procedure for municipal acquisitions so as to preclude resort to the Land Acquisition Act.
  2. Whether the Commissioners of Divisions Act constitutes an excessive delegation of legislative power rendering notifications issued by the Commissioner ultra vires.
  3. Whether acquisition for the purposes described (slum clearance, housing and road) is not a valid municipal duty and therefore an unauthorised object for acquisition.
  4. Whether the Section 4 notification (specifically paragraph 3 giving directions under Section 17(4) to dispense with the Section 5-A inquiry) and the subsequent Section 6 notification(s) are illegal and ultra vires because the appropriate Government did not apply its mind or record satisfaction that the land was waste or arable (a precondition to dispensing with the Section 5-A inquiry).

Arguments of the Parties

Petitioners' Arguments (as presented)

  • The procedure under Sections 77 and 78 of the Bombay Provincial Municipal Corporations Act must be followed for municipal acquisitions; absent compliance, the Land Acquisition Act cannot be invoked for these lands.
  • The Commissioners of Divisions Act represents excessive delegation and is therefore illegal; notifications issued by the Commissioner under that Act are ultra vires.
  • The declared purpose (slum clearance, housing and road) is not a duty (either obligatory or discretionary) of the Municipal Corporation and so acquisition for such a purpose is unauthorised.
  • The Section 4 notification's paragraph 3 (directions under Section 17(4) dispensing with Section 5-A inquiry) is illegal because there is nothing on the face of the notification to show that the Government applied its mind or was satisfied that the land was waste or arable; consequently, the subsequent Section 6 notification issued without a Section 5-A inquiry is invalid.

Respondents' Position (as appears in the record)

  • The respondents relied in part on existing High Court and Supreme Court authority to oppose the first three contentions (see listed precedents below).
  • In an affidavit by S. R. Pradhan, Under Secretary to the Government of Gujarat, it was stated that the office of the Commissioner of Divisions was abolished in 1964 and the Commissioner's closed file (which contained the Section 4 notifications) could not be located despite efforts; therefore the respondents were unable to produce documentary material showing the Government's satisfaction before issuing the urgency clause.
  • The respondents contended that a presumption could arise that the Government was satisfied as to the nature of the land because two Section 4 notifications were issued and published on the same date — one with and one without the urgency clause — but the Court did not accept that presumption based on the material produced.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
(1966) 7 Guj LR 717, Kaniyalal v. State Held that power under Section 78 of the Bombay Provincial Municipal Corporations Act does not curtail or exclude the State Government's wide power under Section 6 of the Land Acquisition Act; both powers are concurrent and the conditions in Section 78 are disjunctive (either condition suffices to set the machinery in motion). The Court relied on this decision to reject the petitioners' first contention that the Municipal Corporations Act procedure precluded resort to the Land Acquisition Act (point No. 1). The decision was also applied to reject the challenge to the validity of the Commissioners of Divisions Act (point No. 2), since the Division Bench in that decision had upheld the Act and the notifications issued thereunder.
Spl. Civil Appln. No. 460 of 1962 (Dated 10-8-1965 (Guj)) Determined that objectives such as slum clearance, housing and roads fall within the purposes/duties to be performed by a Municipal Corporation. The Court relied on this decision to reject the petitioners' third contention that acquisition for slum clearance/housing/roads was not an authorised municipal purpose.
Hiralal v. State, (1964) 5 Guj LR 924 Explained that under Section 17(1) and (4) of the Land Acquisition Act, before directing that Section 5-A be dispensed with the appropriate Government must be satisfied (subjectively) that urgency exists and that the land is waste or arable; although the satisfaction is subjective, it must be the satisfaction of the appropriate Government arrived at by applying its mind to objective considerations (i.e., there must be evidence that the Government considered whether the land was waste or arable). The Court relied on Hiralal to assess the fourth contention: it held that in the absence of documentary material showing that the appropriate Government applied its mind to the question whether the land was waste or arable, the Court would not presume such satisfaction merely from publication of two notifications. Accordingly, the Court struck down paragraph 3 of the Section 4 notification (which dispensed with Section 5-A) as severable and invalid, and held the Section 6 notification(s) invalid to the extent indicated in the order.

Court's Reasoning and Analysis

The Court proceeded in a structured manner, dealing with each of the four points raised by the petitioners:

  1. For points Nos. 1 and 2 (the exclusivity of Sections 77–78 of the Municipal Corporations Act and the validity of the Commissioners of Divisions Act), the Court applied the Division Bench decision in Kaniyalal v. State. That decision held that Section 78 does not curtail the Government's power under Section 6 of the Land Acquisition Act and that the Commissioners of Divisions Act and notifications issued thereunder were valid. On that authority, the Court rejected the petitioners' challenges under points 1 and 2.
  2. For point No. 3 (that slum clearance, housing and road were not valid municipal purposes), the Court relied on its earlier decision in Spl. Civil Appln. No. 460 of 1962 (dated 10-8-1965), which held that the stated purposes fall within the duties of the Municipal Corporation. The Court therefore rejected the third contention.
  3. Point No. 4 — the legality of dispensing with the Section 5-A inquiry — received detailed scrutiny. The Court relied on Hiralal v. State to restate the principle that although the satisfaction under Section 17(1) and (4) is a subjective satisfaction, it must be the satisfaction of the appropriate Government arrived at after applying its mind to objective facts (existence of urgency and whether the land is waste or arable). The Court emphasized that an application of mind and relevant considerations must precede any direction to dispense with the Section 5-A inquiry.
  4. Applying that principle to the facts, the Court observed that no documents were produced by the respondents to demonstrate that the Government had applied its mind and formed the requisite satisfaction before issuing the urgency clause and/or the Section 6 notification(s). The respondents explained the absence of documents by stating that the Commissioner's closed file could not be located after the office was abolished; they argued a presumption of satisfaction could arise because two Section 4 notifications were published on the same date, one with urgency and one without. The Court expressly rejected that presumption as insufficient and "flimsy" to substitute for evidence of application of mind.
  5. The Court concluded that the prerequisite satisfaction required to dispense with inquiry under Section 5-A had not been shown. The Court then addressed severability: it found paragraph 3 of the Section 4 notification (which directed that Section 5-A be dispensed with) to be distinctly severable from the remainder of the Section 4 notification; paragraph 3 could therefore be struck down without invalidating the rest of the Section 4 notification. As to the Section 6 notification(s), the Court held that at least one (the Section 6 notification dated 5 August 1958) was invalid because the Section 5-A inquiry had not been held. In the final operative paragraph the Court ordered quashing of the Section 6 notification dated 21 February 1959 insofar as it affected the petitioners' lands (see Holding below).

Holding and Implications

Core Ruling: The petition is allowed.

Specific operative orders given by the Court (as reflected in the opinion):

  • Paragraph 3 of the Section 4 notification dated 19 December 1957 (which directed that the Section 5-A inquiry be dispensed with under Section 17(4)) is quashed so far as it affects the petitioners' lands. The Court found paragraph 3 severable and struck it down without affecting the remainder of the Section 4 notification.
  • The Section 6 notification dated 5 August 1958 was declared invalid by the Court because no Section 5-A inquiry had been held in relation to it (paragraph 11 of the opinion).
  • In the result (paragraph 8 of the opinion), the Court also quashed the Section 6 notification dated 21 February 1959 so far as it affects the lands of the petitioners.
  • No order as to costs was made.

Implications: The immediate consequence is that the specific governmental directions dispensing with the Section 5-A inquiry (para 3 of the Section 4 notification) are invalid as to the petitioners' lands, and the relevant Section 6 notifications identified by the Court are quashed insofar as they affect those lands. The remainder of the Section 4 notification remains enforceable if otherwise valid under law. The opinion does not claim to establish a new broad precedent beyond applying the principles articulated in the cited authorities; its effect is to enforce the precondition that the Government must demonstrably apply its mind before dispensing with the inquiry required by Section 5-A.

Order: Petition allowed.

    Balwantrai Chunilal Bhatt v. State Of Gujarat

    1. This writ petition is directed against the notification dated 19th December 1957 issued under Section 4 of the Land Acquisition Act, 1894, with the urgency clause and also notification under Section 6 of the Land Acquisition Act dated 5th of August 1958 issued without complying with the provisions of section 5-a thereof. The petitioners are owners and occupants of land bearing S. Nos. 217-A and 448 of Rajpur-Hirpur admeasuring 4 acres 23 gunthas and 0 acre 17 gunthas, respectively. The 2nd respondent-Municipal Corporation of the City of Ahmedabad, passed a resolution No. 630 of 1957 dated 20th November. 1957, regarding acquisition of the lands of the petitioners together with other lands for the project of slum clearance, housing and road. Consequent upon the resolution, the then Government of Bombay was moved to take proceedings under the provisions of the Land Acquisition Act (hereafter referred to as 'the Act') for acquisition of the said survey numbers along with others. Thereafter, the Government of Bombay issued two notifications under Section 4 of the Act. One of the notifications whereby the lands of the petitioners were also sought to be acquired contained clause (3) whereby the urgency of clause was applied. Thereafter notification under Section 6 of the Act was issued by the Commissioner of Divisions on the 5th of August 1958 in respect of the notification to which the urgency clause had been applied and another on the 21st February 1959 to which urgency clause was not applied. We are only concerned with the two notifications, one under Section 4 to which the urgency clause was applied and the subsequent Section 6 notification which was issued without the inquiry under Section 5-A of the Act. Both these notifications are challenged by the petitioners in the petition on various grounds. But at the hearing Mr. A. H. Mehta, the learned advocate for the petitioners, only raised the following points for our consideration:-

    I. Sections 77 and 78 of the Bombay Provincial Municipal Corporations Act provide a procedure for acquiring land for municipal purposes. Unless this procedure is followed, no proceedings under the Land Acquisition Act can be taken.

    II. Commissioners of Divisions Act being an excessive delegation of the legislative powers to the State Government, is illegal and ultra vires. Consequently, the notifications issued by the Commissioner are also illegal and ultra vires.

    III. The purpose of slum clearance, housing and road is not one of the duties either obliatory or discretionary and therefore, acquisition for such an unauthorised purpose is illegal and unauthorised.

    IV. The notification issued under Section 4 and, in any event, the directions contained in para 3 thereof issued under Section 17(4) of the Act dispensing with the inquiry under Section 5-A is illegal and ultra vires, inasmuch as Government is not satisfied and has not applied its mind that the lands of the petitioners are waste or arable lands. Therefore, the whole of Section 4 notification or para 3 thereof is illegal and unenforceable and Section notification is consequently illegal and unenforceable.

    2. Out of these four points raised for our consideration, contentions raised in points Nos. 1, 2 and 3 have already been set at rest against the land-owners by the decision of this High Court and also the Supreme Court. In (1966) 7 Guj LR 717, Kaniyalal v. State, the Division Bench of this High Court has held that the power conferred on the State Govt., under Section 78 of the Bombay Provincial Municipal Corporations Act, is, far from being a limitation on the power of the State Government under Section 6 of the Land Acquisition Act, an extension of that power which can be availed of where the conditions specified in Section 78 are fulfilled. Section 78 of the Municipal Corporations Act cannot be read as curtailing the wide power of the State Government under Section 6 of the Land Acquisition Act. Both the powers, one under Section 6 of the Land Acquisition Act and other under Section 78 of the Municipal Corporations Act are concurrent powers and neither excludes the other. The two conditions mentioned in Section 78 are disjunctive conditions and if either of them is satisfied, the machinery of Section 78 can be set in motion. This being the position, point No. 1 raised before us has to be rejected.

    3. By the same decision, the Division Bench of this High Court, after examining the relevant provisions of law, came to the conclusion that the Commissioners of Divisions Act was a valid piece of legislature and therefore the notification issued by the Commr. Under the said Act was also valid and enforceable. Point No. 2, therefore before us must also be rejected on the authority of that decision.

    4. The third point raised by Mr. Mehta is also covered by a decision of this High Court in Spl. Civil Appln. No. 460 of 1962 D/- 10-8-1965 (Guj) It has been held there that it was a purpose which would be covered by the duties to be performed by the Municipal Corporation and for the reasons given in the said judgment, we reject this contention also.

    5. That leaves the last point raised on behalf of the petitioners. In Hiralal v. State, (1964) 5 Guj LR 924, the same point came to be considered and it was observed that under Section 17(1) and (4) of the Act, before an appropriate Government can direct that Section 5-A is to be dispensed with, the Government has to be satisfied that it is a case of urgency, and that the land in question is either waste or arable land. Though the satisfaction under Section 17(1) and (4) is a subjective one and is not open to challenge before a Court of law, it must be the satisfaction of a appropriate Government and that satisfaction is in respect of an objective fact, namely, the existence of an urgency and the fact that the land in question is either waste or arable land. It is obvious that such satisfaction can only be arrived at bny the appropriate Government applying its mind and taking into account relevant considerations as to whether the land is waste or arable and without such application of mind there can clearly be no satisfaction which is a condition precedent to the dispensing of an inquiry and a report by the Collector under Section 5-A.

    6. Relying upon this decision, Mr. Mehta has urged that in the present case there is nothing in the impugned notification to show that mind was applied by the authority issuing the notifications as to whether the petitioner's lands were waste or arable lands. It is true that though the notification on the face of it may not indicate any such application of mind, it would be open to the Government to establish that as a matter of fact before the notifications were issued, and the urgency clause was introduced in Section 4 notification, mind was applied by the authority and thereafter the notifications were issued. For that purpose, Government may rely upon any documents in their possession to satisfy the Court about the application of mind to those relevant facts. In the present case, we find that no such documents have been produced on behalf of the respondents. However, in the affidavit in reply filed on behalf of the respondents by S.R. Pradhan. Under Secretary to the Government of Gujarat, Revenue Department, it is stated that the Commissioner of Ahmedabad Division, Mr. I. D. Kapadia had issued the notifications under Section 6 of the Act without urgency clause on the 21st February. In 1964 the office of the Commissioner of Divisions was ablished by the Government of Gujarat. The closed file of the Commissioner which also contained the two notifications under Section 4 could not be located in spite of their efforts and, therefore, their inability is pleaded and that under the circumstances it was not possible to state at this stage on what material the former Bombay Government was satisfied as the the nature of the land. But at the same time it is stated that a strong presumption arises that the Government was satisfied as to the nature of the land because on the same date two notifications under Section 4 were issued and published, one without urgency clause and one with urgency clause. We are not satisfied that any such presumption would arise merely from the fact of publication of two notifications, one with the urgency clause and the other without the urgency clause. It is a condition precedent to the application of this extraordinary power of depriving the subject of the advantage of an inquiry under Section 5-A that the subjective satisfaction by the authority issuing the notification must be reached and in any case such a satisfaction cannot be presumed from such flimsy material. We are, therefore, not prepared to raise any such presumption in favour of the Government in this case. It may be that because of circumstances, the Government would not be able to place before the Court for its satisfaction, that the prerequisites to the use of the urgency clause were complied with. But for whatever reasons if no such evidence and be placed before the Court, the result can be only one that it cannot be held that the requirements of law were complied with by the authorities.under the circumstances, the result if that the 4th contention raised on behalf of the petitioners has to be upheld. The question, however, arises as to what extent. We are clear in our mind that para 3 of the notification under Section 4 whereby the direction was given under sub-section (4) of Section 17 that the provisions of section 5-a of the Act shall not apply, is distinctly severable from the rest of the notification under Section 4 notification so as to hold that it becomes a useless piee of paper. This being so, the only part of Section 4 notification which has to be struck down is para 3 and we shall order accordingly. The remaining part of Section 4 notification remains intact to be enforced if at all available to the Government to do so under law.

    7. As regards Section 6 notification dated 5th of August 1958, the whole of that notification is invalid as Section 5-A inquiry has not been held.

    8. In the result, the petition succeeds. Para 3 of section 4 notification dated 19th December 1957 is quashed without affecting the rest of the Section 4 notification, so far as it affects the land of the petitioner and Section 6 notification dated 21st February 1959 is also quashed so far as it affects the lands of the petitioners. No order as to costs.

    9. Petition allowed.

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    Balwantrai Chunilal Bhatt v. State Of Gujarat
    (Jul 11, 1969)