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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 4(1) of the Act
  • Land Acquisition Act, 1894 (Act)
  • Section 6 of the Act
  • Section 4(a)(ii) of the Land Acquisition (Amendment and Validation) Ordinance, 1967
  • Section 6 of the Land Acquisition (Amendment and Validation) Act
  • Section 6 of the Land Acquisition Act, 1894
  • Section 4(2) of the Land Acquisition (Amendment and Validation) Act, 1967
  • Section 5(2) of the Land Acquisition (Amendment and Validation) Ordinance, 1967
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 4(1) of the Act
  • Land Acquisition Act, 1894 (Act)
  • Section 6 of the Act
  • Section 4(a)(ii) of the Land Acquisition (Amendment and Validation) Ordinance, 1967
  • Section 6 of the Land Acquisition (Amendment and Validation) Act
  • Section 6 of the Land Acquisition Act, 1894
  • Section 4(2) of the Land Acquisition (Amendment and Validation) Act, 1967
  • Section 5(2) of the Land Acquisition (Amendment and Validation) Ordinance, 1967
Smart Summary

Factual and Procedural Background

The State of Gujarat sought to acquire Survey Nos. 349/1, 349/2 and 349/3 of Karamsad Village, Anand Taluk, for establishing an industrial township through the Gujarat Industrial Development Corporation. A preliminary notification under Section 4(1) of the Land Acquisition Act, 1894, was published on 26 July 1963. A first final notification under Section 6 followed on 16 January 1965, but the Gujarat High Court struck it down on 30 January 1968 at the instance of other landowners.

Subsequently, on 18 January 1969, the State issued a fresh final notification covering the present respondents’ lands. In Special Civil Application No. 798 of 1970, the respondents (landowners) contended that a 5½-year gap between the Section 4 and Section 6 notifications constituted unreasonable delay. Accepting this argument, a Division Bench of the High Court quashed the notification on 4 August 1972.

The State of Gujarat obtained a certificate of fitness and appealed to the Supreme Court against that judgment.

Legal Issues Presented

  1. Whether a Section 6 declaration issued within the outer limit prescribed by Section 5(2) of the Land Acquisition (Amendment and Validation) Ordinance, 1967 (subsequently enacted), can nevertheless be invalidated on the ground of “unreasonable delay.”

Arguments of the Parties

Appellant (State of Gujarat)

  • Invoked Section 5(2) of the 1967 Ordinance (and the corresponding Amending Act), which allowed two years from 20 January 1967 for issuing Section 6 notifications where the Section 4 notification pre-dated that date.
  • Pointed out that the impugned final notification was published on 18 January 1969, two days before the statutory deadline, and was therefore valid.

Respondents (Landowners)

  • Contended that, notwithstanding statutory time-limits, the State is obliged to act bona fide and within a “reasonable time.”
  • Alleged that the delay was engineered to “peg down” land prices, rendering the acquisition power mala fide.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gujarat State Transport Corporation v. Valji Mulji Soneji, (1979) 3 SCC 202; (1979) 3 SCR 905 Once the legislature sets an express time-limit for issuing a Section 6 notification, courts cannot invalidate such a notification merely on grounds of “unreasonable delay” if it is within that limit. The Supreme Court followed this decision and held that the impugned notification, being within the statutory two-year period, could not be struck down.
Valji Mulji Soneji v. State of Gujarat, (1970) 11 Guj LR 95 (Gujarat High Court) High Court view that courts may still test Section 6 notifications for unreasonable delay even when published within the statutory window. The High Court in the present case relied on this ruling, but the Supreme Court rejected its reasoning in light of the later GST Corporation decision.

Court's Reasoning and Analysis

The Court noted that the controversy was “fully covered” by its earlier ruling in Gujarat State Transport Corporation v. Valji Mulji Soneji. Under Section 5(2) of the 1967 Ordinance, read with the 1967 Amending Act, the State had a two-year grace period from 20 January 1967 to issue Section 6 declarations for pre-existing Section 4 notifications. The impugned declaration, dated 18 January 1969, fell squarely within that period.

Relying on the GST Corporation precedent, the Court held that once the legislature had prescribed a definite limitation period, courts should not super-impose an additional, judge-made requirement of “reasonableness” in the timing of Section 6 notifications. Any broader inquiry into delay or alleged mala fides would undermine the statutory scheme.

Accordingly, the High Court erred in striking down the notification, and its reasoning based on Valji Mulji Soneji (Guj LR) could not survive the binding authority of the Supreme Court’s later decision.

Holding and Implications

Appeal Allowed; High Court judgment set aside; Special Civil Application No. 798 of 1970 dismissed.

Immediate effect: the Section 6 notification dated 18 January 1969 stands restored, enabling the State to proceed with acquisition. Each party is to bear its own costs in all courts.

Broader implications: The decision re-affirms that where Parliament fixes an express limitation period for issuing final acquisition notifications, courts will not entertain challenges based solely on the length of time taken, provided the notification is within that statutory window. No new doctrine was created, but the judgment consolidates the authority of the GST Corporation precedent.

    State Of Gujarat And Another v. Punjabhai Nathubhai And Others

    M.N Venkatachaliah, J.— This appeal, by certificate, by the State of Gujarat arises out of and is directed .against the judgment, dated 4-8-1972 of the High Court of Gujarat in Special Civil Application No. 798 of 1970, quashing, at the instance of the land owners, the final notification, dated 18-1-1969 issued under Section 6 of the Land Acquisition Act, 1894 (Act) in the matter of acquisition of Serial No. 349/1, 349/2 and 349/3 of Karamsad Village in Anand Taluk for the purpose of the establishment of the “Industrial township for heavy and light industries” by the Gujarat Industrial Development Corporation.

    2. The impugned notification was quashed by the Division Bench principally on the ground that there was an unreasonable delay in the publication of the final notification which was separated by 5½ years from the preliminary notification under Section 4(1) of the Act which had been published on 26-7-1963.

    3. It would appear that earlier, on 16-1-1965, a final notification including therein these and certain other lands belonging to certain other laud owners had come to be published; but the same having been challenged by the land owners of the other lands covered by the notification, the High Court on 30-1-1968 struck down the final notification. A fresh final notification, insofar as the lands concerned in the present case was issued on 18-1-1969. The land owners — Respondents 1 and 1-A in this appeal — assailed the said notification on the ground that it was published after an undue and unreasonable delay which vitiated the exercise of power under Section 6.

    4. Supporting the validity of the impugned notification the acquiring authority relied on the provisions of section 5(2) of the Land Acquisition (Amendment and Validation) Ordinance, 1967 — later replaced by an appropriate legislative enactment — which provided that no declaration under Section 6 of the Act in respect of any land which had been notified under Section 4(1) of the Act before the commencement of the said Ordinance shall be made after the expiry of two years from the date of commencement of the Ordinance. The Ordinance came into force on 20-1-1967. The impugned final notification was issued on 18-1-1969 within the stipulated period of 2 years. The Ordinance by its Section 4(a)(ii) also introduced a proviso to Section 6 of the “Act” which imposed a time limit of 3 years from the date of notification under Section 4(1) for the issue of the final notification under Section 6. As notified earlier, sub-section (2) of Section 5 of the Ordinance made a special provision in respect of preliminary notification which had been issued prior to 20-1-1967 and enabled a final notification to be issued within 2 years from 20-1-1967 in this class of cases.

    5. The contention of the land owners before the High Court was that, notwithstanding sub-section (2) of Section 5 of the Ordinance, their claim that the acquiring authority had not acted bona fide and within a reasonable time and had desired to bring about a pegging-down of the prices of land, survived and could yet be examined.

    6. The High Court accepted this contention of the land owners and struck down the impugned final notification on the ground that there was an unreasonable delay. In reaching this conclusion the Division Bench relied principally on an earlier decision of the same High Court in Valji Mulji Soneji v. State of Gujarat (1970) 11 Guj LR 95. That case, on which reliance was placed by the High Court, came up in appeal before this Court and the view of the High Court that notwithstanding Section 4(2) of the Land Acquisition (Amendment and Validation) Act, 1967, the court could yet enquire whether a notification under Section 6 published within the time envisaged by the Section 4(2) of Amendment Act was rendered infirm on grounds of unreasonable delay was not accepted by this Court. In Gujarat State Transport Corporation v. Valji Mulji Soneji (1979) 3 SCC 202, (1979) 3 SCR 905 this Court held:( and 18)

    “Therefore, while appreciating the anxiety of the High Court we are of the opinion that once the legislature stepped in and prescribed a sort of period of limitation within which power to issue notification under Section 6 could be exercised it was not necessary to go in search of a further fetter on the power of the Government by raising the implication.
    It thus appears to be satisfactorily established that the impugned Section 6 notification was issued within the prescribed period introduced by the 1967 Amendment Act and, therefore, could not be struck down on the only ground that the power to issue second Section 6 notification was exercised after an unreasonable and unexplained delay.”

    7. The point raised in the present appeal is, therefore, fully covered by the pronouncement of this Court in GST Corporation case (1979) 3 SCC 202, (1979) 3 SCR 905. For the reasons set out in and following the said pronouncement, this appeal requires to be and is hereby allowed; the judgment dated 4-8-1972 of the High Court under appeal set aside and Special Civil Application No. 798 of 1970 before the High Court dismissed. However in the circumstances of the case, the parties are left to bear and pay their own costs, both here and below.

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    State Of Gujarat And Another v. Punjabhai Nathubhai And Others
    (Feb 12, 1988)