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Concise Analytical Summary of the Opinion

Factual and Procedural Background

This is an application under Article 226 of the Constitution challenging a notification under Section 4 of the Land Acquisition Act, 1894, the report made under Section 5-A of the Act and the notification issued under Section 6 dated 7 January 1974. The acquisition relates to premises No. 29, Chitta Ranjan Avenue, Calcutta, comprising 0.0506 hectares (about 5,140 sq. ft. as described by the petitioners).

The petitioners advanced several grounds of challenge, many of which were similar to grounds raised in the case of Banku Behari Dutt v. State of West Bengal (AIR 1976 Cal 393). In view of that decision and a Supreme Court decision in Kalumiya Karimmiya v. State of Gujarat ((1977) 1 SCC 715 : AIR 1977 SC 497), learned counsel for the petitioners did not press most of those grounds. The only ground pressed was that the petitioners had suggested alternative premises (identified in the petition as No. 20, Ganesh Chandra Avenue and No. 23, Chitta Ranjan Avenue — another filing refers to No. 24, Chittaranjan Avenue) which, the petitioners say, the Land Acquisition Collector failed to examine for suitability before making his report under Section 5-A and before the notification under Section 6 was issued.

The stated object of the acquisition, as recorded in the petition, was to provide an opening for landing stairs to a platform for the south-to-north line of the rapid transit underground system. The petitioners contended only a small portion (about 100 sq. ft.) would be needed for landing stairs and that acquisition of their entire petrol pump site would be disproportionate. The collector referred the suggested alternatives to the requiring authority (Metropolitan Transport Project Railways / M.T.P. Railways); the requiring authority replied that the suggested alternatives would not suit them for technical reasons. Affidavit evidence on behalf of the requiring authority (by Mr. Govind Narayan Fadke) set out the history and stated that the alternative sites were not suitable on technical grounds.

Legal Issues Presented

  1. To what extent must a Land Acquisition Collector consider alternative accommodation proposed by a party whose land is sought to be acquired before making his report under Section 5-A of the Land Acquisition Act, 1894?
  2. Whether the report under Section 5-A and the subsequent notification under Section 6 are liable to be set aside because the Collector, it is alleged, did not apply his mind to the suitability of alternatives suggested by the petitioners.

Arguments of the Parties

Petitioners' Arguments

  • The petitioners argued that only a small portion of their premises was needed for landing stairs, so acquisition of the entire petrol pump was unnecessary and disproportionate.
  • They contended that alternative premises (specifically Nos. 20 and 23/24, Ganesh Chandra / Chittaranjan Avenue as variously identified in the record) were available and suitable, and that the Land Acquisition Collector failed to apply his mind to the suitability of those alternatives when making his report under Section 5-A.
  • On that basis, the petitioners sought to have the Section 5-A report and Section 6 notification set aside.

Respondent / Requiring Authority and Land Acquisition Collector's Position

  • The Land Acquisition Collector referred the suggestion of alternative sites to the requiring authority (Chief Project Engineer, M.T.P. Railways), which replied by letter (dated 30 March 1973) and in affidavit evidence that the alternatives would not suit their requirements for technical reasons.
  • The requiring authority's affidavit (Mr. Govind Narayan Fadke) explained that alternative sites suggested at the hearing were considered and found unsuitable on technical grounds and that no suitable alternative accommodation was available in the area on technical grounds.
  • The Collector maintained that the acquisition of the petitioners' premises was for a stair-case for platform use in connection with the mass rapid transit scheme and that the requiring authority's technical preference led the Collector not to accept the suggested alternatives.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Banku Behari Dutt v. State of West Bengal, AIR 1976 Cal 393 Illustrates a situation where alternative sites were suggested and the requiring authority indicated those alternatives were unsuitable on technical grounds; the Collector took into account expense and other factors when making his recommendation. The Court relied on its earlier observations in that case to support the proposition that a Collector is not required to investigate technical preference unless mala fides or oblique purpose is alleged; where the Collector had considered preference together with other factors (e.g., expense) it was valid to conclude the Collector exercised his functions.
Kalumiya Karimmiya v. State of Gujarat, (1977) 1 SCC 715 : AIR 1977 SC 497 Authority cited for the proposition that many grounds of challenge to acquisition are no longer open to attack (as described in the opinion). The Court noted that, in view of this Supreme Court decision, most of the grounds originally pleaded were not pursued by learned counsel for the petitioners.
Sakti Pada v. Collector, Hooghly District, AIR 1976 Cal 282 (observations of Basak, J.) Observation that courts may examine whether the purpose is a public purpose and whether the acquisition is within the scope of the Act, but should not ordinarily interfere to dictate which of various possible lands should be taken if the acquisition is for a bona fide public purpose. The Court relied on these observations but clarified that they do not absolve the requiring authority or Collector from providing cogent reasons when alternative sites exist; if preference for a particular site is unsupported and mala fide or oblique purpose is alleged, then the matter becomes relevant for scrutiny.

Court's Reasoning and Analysis

The Court framed the central legal question as how far any alternative accommodation suggested by a party whose land is proposed to be acquired requires consideration by the Land Acquisition Collector before making his report under Section 5-A.

The Court explained the main purpose of a report under Section 5-A: to determine whether the purpose proposed is a public purpose and whether there are valid objections to acquisition. Consideration of alternative lands is relevant only to a limited extent: where an alternative accommodation is available that would serve the purpose without causing inconvenience or would serve it better, or where failure to consider an available alternative would render the order arbitrary.

The Court held that the Collector is not required to investigate the technical suitability of alternatives in great depth in every case. What the Collector must be satisfied about is that there are cogent reasons for not accepting the alternative property. Thus, the Collector has a limited obligation to consider alternatives, sufficient to ensure the decision is not arbitrary.

Applying these principles to the facts before it, the Court noted:

  • The requiring authority had stated that the alternative sites would not suit technical requirements; this was affirmed in affidavit material from the requiring authority.
  • There was no allegation in the petition that the requiring authority's technical preference was mala fide or for any oblique purpose.
  • The petitioners did not demonstrate that the proposed alternative sites were better in relevant respects — specifically, the petitioners did not show that alternatives would (a) better sub-serve the requiring authority's purpose, (b) cause less hardship to affected persons, or (c) be less expensive.
  • Given the lack of an allegation of mala fide and absence of evidence that the alternatives were superior, the Court concluded the Collector had not abdicated his discretion and had acted within the limited duty to consider alternatives.

The Court accepted earlier authority (including its own earlier decision in Banku Behari Dutt and observations in Sakti Pada) to the extent that these recognize the Collector's duty to be satisfied about cogent reasons when rejecting alternatives, but rejected the contention that the Collector was required to delve into technical matters in every case.

Holding and Implications

DISMISSED.

The Court dismissed the petition/applicaton. The Rule is discharged. There will be no order as to costs. The interim order in the matter will continue for a period of three weeks.

Implications: The direct effect is that the acquisition proceedings (the Section 5-A report and the subsequent Section 6 notification) were upheld as against the challenge mounted on the limited ground pressed in this petition. The opinion does not purport to lay down a new broad precedent beyond confirming that a Collector must be satisfied that there are cogent reasons for rejecting alternatives but is not required to investigate technical suitability in detail unless mala fide or similar allegations are made.

    Daga Auto Service Pvt. Ltd. And Another v. The Land Acquisition Collector (Special Railway Cell) .

    1. In this application under Article 226 of the Constitution the petitioners have challenged the notification under Section 4 of the Land Acquisition Act, 1894, the report made under Section 5-A of the said Act and the notification issued under Section 6 of the said Act dated 7th Jan., 1974. This application relates to the acquisition of premises No. 29, Chitta Ranjan Avenue, Calcutta and the area comprised is 0506 hectres. The said notification and the said report have been challenged on several grounds. Most of these grounds are similar to the grounds taken in the case of Banku Behari Dutt… v. State Of West Bengal…Opposite Party. which is reported in AIR 1976 Cal 393. In view of the said decision, learned counsel for the petitioner did not press most of these grounds. In view of the decision of the Supreme Court in the case of Kalumiya Karimmiya v. State of Gujarat, (1977) 1 SCC 715 : (AIR 1977 SC 497) most of these grounds are no longer open to challenge by the petitioner. The only ground upon which this application was pressed was that the petitioner had suggested to the Land Acquisition Collector that there were alternative accommodations available in premises No. 20, Ganesh Chandra Avenue and premises No. 23, Chitta Ranjan Avenue, Calcutta but the Land Acquisition Collector, according to the petitioner, without applying his mind to the suitability of the alternative accommodation offered, had made his report upon which the notification under S. 6 has been issued in the instant case. It was, therefore, urged that both, the report of the Land Acquisition Collector under Section 5-A of the said Act as well as the notification issued upon that report under Section 6 of the Act, are liable to be set aside.

    2. In Para. 14 of the petition, the petitioners have stated that the object of acquiring the petitioners' property was stated by the representative of M.R.T.S at the first day's hearing to be an opening for landing stairs to the platform for the line passing from south to north for the rapid transit underground system. It was submitted on behalf of the petitioners that the overhead manifestation of underground landing stairs was but insignificant and assuming without admitting that such landing stairs must be had there, if at all, only a portion of the south-east portion of the property of approximately 100 sq. ft. would be needed, of the total area of the petitioners' Petrol Pump consisting of 5140 sq. ft. approximately, that is, about 7 cottahs. It is the case of the petitioners that the respondent No. 1 agreed to investigate and find out the suitability of the alternative sites, viz. 20, Ganesh Chandra Avenue and 23, Chitta Ranjan Avenue, Calcutta. It was further stated that on the said alternative sites there were some kucha structures. It appears that thereafter the Land Acquisition Collector had referred the matter to the requiring authority, viz. Metropolitan Transport Project Railways and they by a letter dated 30th March, 1973 had intimated to the Land Acquisition Collector that the alternative premises would not suit them. The Land Acquisition Collector in his affidavit-in-opposition in answer to Rule Nisi, in the instant case, has stated that the suggestion of the petitioner company was referred to the Chief Project Engineer, M.T.P Railways for consideration. The requiring authority, in reply, had intimated that the alternative accommodations, as suggested, would not suit the requirement of the requiring authority. The Land Acquisition Collector has further noted that the premises in question of the petitioners was acquired for a stair case for the use of the platform in connection with mass rapid transit system schedule. One Mr. Govind Narayan Fadke has affirmed an affidavit on 12th July, 1977 on behalf of the requiring authority.

    3. In his said affidavit he has stated, after giving the history of the scheme and the need for the said scheme, that at the time of the hearing of the objection, the proposed land acquisition plan, as per Gazette, was shown to the petitioners and at the time of the hearing of the said objection, the petitioner company had prayed for exclusion of the petrol pump from acquisition and had suggested for the acquisition of adjacent premises, i.e No. 20, Ganesh Chandra Avenue and 24, Chittaranjan Avenue, Calcutta. The said suggestion of the petitioner company was referred to the Chief Project Engineer for consideration. The requiring authority had intimated to the Land Acquisition Collector that the alternative premises, as suggested, would not be suitable. He has further stated that the requiring authority did not find any alternative suitable accommodation in that area on technical ground and therefore on consideration of the different aspect the Land Acquisition Collector had not entertained the suggestion for alternative sites.

    4. The question that falls for consideration is how far any alternative accommodation suggested by a party whose land is proposed to be acquired requires to be considered by the Land Acquisition Collector before making his report under Section 5-A of the said Act. The main purpose of making a report under Section 5-A of the Act is to find out whether the purpose proposed is a public purpose and whether there is any objection to the acquisition of the land for the said purpose. Whether or not there is any alternative land which could be acquired or the purpose of acquisition would be better served by acquisition of any other property are not relevant as such but only relevant to the extent that if there is any alternative accommodation available which could be acquired without causing inconvenience or less inconvenience or the purpose intended would be better served by acquisition of that property and if the Land Acquisition Collector does not take that land into consideration for acquisition then the order and the report may become vulnerable as arbitrary. Now, in this case it appears that the Land Acquisition Collector was referred to certain alternative sites by the petitioners. The requiring authority stated that those sites would not suit them. It has been stated in the affidavit on behalf of the requiring authority that there were technical reasons why the said land, suggested as alternative sites, would not be suitable for the purpose intended to be served. It is not alleged that the preference of the requiring authority to the site in question of the petitioner for technical reason is mala fide or for oblique purpose. It is true that the requiring authority has not indicated any reason why for technical ground the alternative sites suggested has been found to be unsuitable. But it is not in all cases that the Land Acquisition Collector is required to go into the technical aspect of the preference in a particular acquisition proceeding. What he has to be satisfied, however, is that there are cogent reasons for not accepting the alternative property. To that limited extent, the Land Acquisition Collector is obliged to consider the question of any alternative site proposed to him. Reliance was placed on behalf of the respondent on certain observations of Basak, J. in the case of Sakti Pada v. Collector, Hooghly District, AIR 1976 Cal 282. There, the learned Judge had observed that whether the purpose of requisition or acquisition was a public purpose and whether the purpose is within the scope of the Act in question or not might be examined by the Court but if the requisition or acquisition was for public purpose and an order was passed for a purpose within the scope of the Act, then, according to the learned Judge that was the end of the matter so far as Courts were concerned. It was not for the Court, according to the learned Judge, to examine whether that object or purpose could be achieved by acquiring or acquisition of a particular land or not. It was a matter entirely for the Government and its officers to ascertain. The Court could not, learned Judge held, interfere in such a case or say that the particular object would be achieved by a particular land or not. If by aforesaid observations the learned Judge meant to indicate that what the Land Acquisition Collector was required to examine was whether a particular purpose was a public purpose and whether the land in question was adopted for that purpose then no exception could be taken to that view of the matter. But I do not think it was intended to be laid down that if in a particular case for acquisition other alternative sites were available which were better suited and easily available even then if the acquiring authority rejects the alternative sites without reason it could not be said that the action of the requiring authority was not bona fide. Reference was made to certain observations of mine in the said decision of Banku Behari Dutt… v. State Of West Bengal…Opposite Party., AIR 1976 Cal 393. There also the petitioner had suggested certain alternative sites but the requiring authority indicated that the alternative sites suggested would not suit the purpose on technical reasons. In my decision, I had indicated that fact. I also noticed that apart from that the Land Acquisition Collector in his order and in his affidavit had indicated that the alternative sites proposed would be more expensive.

    5. Therefore, I found that the Land Acquisition Collector had exercised his functions properly and had not abandoned his discretion. But dealing with this aspect of the matter I had observed as follows (at p. 399):—

    “Furthermore, in this case, the questions that the Land Acquisition Collector had to determine were whether there were any valid objections to the acquisition, if the purpose of acquisition was a public purpose and if the premises in question proposed to be acquired was a suitable premises; in these circumstances the fact that there was alternative suitable premises would not, in my opinion, entitle the objector to ask the Collector not to recommend the acquisition of the premises in question. In this case, therefore, the Collector was not obliged, in my opinion, to consider whether there was technical reason for preference of the premises in question unless it was suggested that the preference of the requiring authority was not a genuine preference but was for oblique and mala fide purpose. In such a case whether there are valid grounds for preference indicated by the requiring authority or not would become a relevant factor for consideration. But in the instant case there is no allegation that preference alleged by the requiring authority was for any oblique or ulterior purpose. In these circumstances, if the Collector has made his recommendation taking into consideration the preference though not supported by reasons of the requiring authority together with the fact that the proposed alternative sites would entail payment of more compensation for acquisition, in my opinion, it cannot be said that the Collector has not discharged his functions under Section 5-A of the Act or had abdicated his discretion in this matter.”

    6. In this case there is no separate reason of the Land Acquisition Collector as to why the alternative sites could not be acquired or should not be acquired. But here also there is no suggestion that the preference of the requiring authority for technical reason was for any oblique or ulterior purpose. Furthermore, it has not been indicated that the alternative sites were better suited for the purpose. Merely suggesting an alternative is not enough because the requiring authority or the acquiring authority is entitled to make a choice from several alternatives even assuming that they are alternatives. But it has to be indicated that the alternative sites proposed are better sites in the sense that either these would better sub-serve the purpose of the requiring authority or that these would cause less hardship to the persons whose properties are being acquired or that these would be less expensive for the purpose. None of these suggestions was made on behalf of the petitioners. In the aforesaid view of the matter, I am unable to accept the challenge to the report under Section 5-A of the Act and consequently to the notification under Section 6 of the Act.

    7. In the premises, this application fails and is accordingly dismissed. There will, however, be no order as to costs. The Rule is discharged.

    8. The interim order will continue for a period of three weeks.

    9. Application dismissed.

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    Comments

    Daga Auto Service Pvt. Ltd. And Another v. The Land Acquisition Collector (Special Railway Cell) .
    (Jul 29, 1977)