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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • Gujarat Unification and Amendment Act 20 of 1965
  • Section 6(3) of the Land Acquisition Act
  • Article 226 of the Constitution
  • Article 133(1)(b) of the Constitution
  • Cooperative Societies Act, 1912
  • Section 6 of the Land Acquisition Act
  • Section 4 of the Land Acquisition Act, 1894
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • Gujarat Unification and Amendment Act 20 of 1965
  • Section 6(3) of the Land Acquisition Act
  • Article 226 of the Constitution
  • Article 133(1)(b) of the Constitution
  • Cooperative Societies Act, 1912
  • Section 6 of the Land Acquisition Act
  • Section 4 of the Land Acquisition Act, 1894
Smart Summary

Factual and Procedural Background

The appellants own lands in Village Wadaj, Ahmedabad. On 19 March 1964 the State of Gujarat issued a notification under Section 4 of the Land Acquisition Act, 1894 proposing to acquire portions of those lands for a housing scheme promoted by the 3rd respondent, Shri Alapa Housing Co-operative Society Ltd. A follow-up declaration under Section 6 was made on 1 October 1964, and the statutory acquisition proceedings continued.

During the pendency of those proceedings the appellants filed a writ petition in the Gujarat High Court under Article 226 of the Constitution challenging the validity of the acquisition. The High Court summarily dismissed the petition. Because a certificate under Article 133(1)(b) was granted, the appellants obtained an appeal as of right to the Supreme Court, resulting in the present judgment.

Legal Issues Presented

  1. Whether the acquisition was invalid for non-compliance with Sections 40–42 of the Land Acquisition Act on the ground that it was allegedly “for a company.”
  2. Whether a housing scheme benefiting a relatively small group of co-operative society members can constitute a “public purpose.”
  3. Whether the notifications issued under Sections 4 and 6 were vague or otherwise defective.
  4. Whether the State Government failed to apply its mind before issuing the Section 6 declaration.

Arguments of the Parties

Appellants' Arguments

  • The scheme was effectively an acquisition “for a company,” so the special procedural safeguards in Sections 40–42 were mandatory and had not been followed, vitiating the entire process.
  • A housing scheme for approximately twenty co-operative members could not amount to a “public purpose.”
  • The Section 4 and Section 6 notifications were vague and thus invalid.
  • The State Government issued the Section 6 declaration mechanically without independent application of mind.

Respondents' Arguments

  • The notifications themselves expressly recited a “public purpose,” namely a housing scheme undertaken with prior governmental sanction; hence Sections 40–42 were inapplicable.
  • Statutory amendments by Gujarat Act 20 of 1965 broadened “public purpose” to include such housing schemes, and a co-operative society is deemed a “company” within the meaning of the Act.
  • The Government contributed a substantial portion of compensation, underscoring the public nature of the project.
  • Enquiry under Section 5-A was duly held; the report was considered, so there was no non-application of mind.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Pt. Jhandu Lal v. State of Punjab (1961) 2 SCR 459 Acquisition for a co-operative housing scheme can amount to acquisition for “public purpose.” Cited to reinforce the conclusion that the impugned acquisition was indeed for a public purpose and hence Sections 40–42 were unnecessary.
Somavanti v. State of Punjab (1963) 2 SCR 774 A declaration under Section 6(3) is conclusive evidence both of public purpose and of need, absent fraud. Relied on to reject the appellants’ invitation to scrutinise the genuineness of the need or the public nature of the purpose.

Court's Reasoning and Analysis

The Court first examined whether the acquisition was “for a company.” By referencing Gujarat Act 20 of 1965, which amended Section 3(f) to include housing schemes undertaken by co-operative societies with prior government sanction, the Court held the acquisition to be for a “public purpose.” Because the Act expressly classifies such schemes as public purposes, compliance with Sections 40–42 (required only for company acquisitions) was unnecessary.

Next, the Court addressed the contention that a housing scheme benefitting roughly twenty individuals could not serve the public. Relying on Section 6(3) and Somavanti, the Court stated that the Government’s declaration is conclusive of both need and public purpose unless vitiated by fraud, which was neither pleaded nor proven. Thus the Court refused to second-guess the Government’s judgment.

The alleged vagueness of the Section 4 and Section 6 notifications was dismissed; the notices conformed to the usual statutory language and explicitly set out the public purpose.

Finally, claims of non-application of mind were rejected. An enquiry under Section 5-A had been conducted; the Government considered the officer’s report before issuing the Section 6 declaration. No evidence indicated a mechanical or blind exercise of power.

Holding and Implications

The appeal was dismissed with costs.

The immediate consequence is that the land acquisition proceedings, including the Section 6 declaration, remain valid and enforceable. The decision reaffirms existing precedent on the conclusiveness of Section 6 notifications and the statutory inclusion of government-sanctioned co-operative housing schemes within the definition of “public purpose,” but it does not establish a new legal principle beyond settled law.

    Ratilal Shakarabhai And Others v. State Of Gujarat And Others

    K.S Hegde, J.— The only reason why this appeal had to be heard by this Court is that the appellants were entitled in law for a certificate under Article 133(1)(b) of the Constitution as against the order of the High Court summarily dismissing their writ petition on the strength of which they had a right of appeal to this Court.

    2. The appellants are the owners of certain lands in Village Wadaj in Ahmedabad. Some areas out of those lands were notified for acquisition under Section 4 of the Land Acquisition Act, 1894 on March 19, 1964 for a housing scheme prepared by the 3rd Respondent, a Cooperative Society registered under the Cooperative Societies Act. The notification under Section 6 of that Act was issued on October 1, 1964. This was followed up by other proceedings under the Land Acquisition Act. During the pendency of those proceedings, the appellants moved the High Court of Gujarat under Article 226 of the Constitution challenging the validity of the acquisition proceedings. That petition was summarily dismissed by the High Court.

    3. The acquisition proceedings were challenged before us on various grounds. We shall now proceed to deal with the grounds urged before us. It was urged by the learned counsel for the appellant that the proposed acquisition was for a company and as no steps were taken under Sections 40 to 42 of the Land Acquisition Act, the proceedings are vitiated. It is conceded on behalf of the State that the agreements contemplated by Sections 40 to 42 were not entered into. But it was urged on behalf of the respondent that the acquisition in question was not for the purpose of a company but it was for a public purpose. Both the notifications under Sections 4 and 6 say that the proposed acquisition was for a public purpose, namely, for a housing scheme undertaken by Shri Alapa Housing Cooperative Society Ltd., Ahmedabad with the sanction of the Government. Therefore, if the proposed acquisition is not for a company but for a public purpose then there was no need to comply with Sections 40 to 42.

    4. Gujarat Legislature by Gujarat Unification and Amendment Act 20 of 1965 amended clause (f) of Section 3 of the Land Acquisition Act, 1894, which defined the expression “public purpose”. As per that amendment after sub-clause (2) the following clause was added:

    “and
    (3) a housing scheme which the State Government may from time to time undertake for the purpose of increasing accommodation for housing persons and shall include any such scheme undertaken from time to time with the previous sanction of the State Government by a local authority or company”.

    5. The expression “company” as defined in the Land Acquisition Act includes a cooperative society within the meaning of Cooperative Societies Act, 1912. The third respondent is one such Society, Therefore, it is clear that the proposed acquisition is one for “public purpose”. It may also be noted that the State Government contributed a substantial sum towards the compensation payable for the acquisition in question. Therefore the contention of the appellant that the proposed acquisition is invalid inasmuch as there was no compliance with Sections 40 to 42 must fail.

    6. Our conclusion in this regard is supported by the decision of this Court in Pt. Jhandu Lal v. State of Punjab (1961) 2 SCR 459.

    7. We are unable to accede to the contention of the appellant that a housing scheme for a limited number of persons cannot be considered as a public purpose. It was said that there were hardly about 20 members in the cooperative society in question and therefore the housing scheme for their benefit cannot be considered as a public purpose. It was also urged that there was no need for acquiring any land for the scheme in question. Section 6(3) of the Land Acquisition Act provides that a declaration under Section 6 shall be conclusive evidence that the land proposed to be acquired is needed for a public purpose. Therefore this Court cannot go into the question whether the need was genuine or not unless we are satisfied that the action taken by the Government was a fraudulent one. We are also unable to concede to the proposition that the need of a section of the public cannot be considered as a public purpose. Ordinarily, the Government is the best authority to determine whether the purpose in question is a public purpose or not and further the declaration made by it under Section 6 is a conclusive evidence of the fact that the land in question is needed for a public purpose — see Somavanti v. State of Punjab (1963) 2 SCR 774. That decision lays down that conlusiveness in Section 6(3) must necessarily attach not merely to a “need” but also to the question whether the purpose was a public purpose.

    8. There is no substance in the contention that the notification under Sections 4 and 6 were vague. They are similar to notification usually issued under Sections 4 and 6. Therein it is clearly mentioned that the proposed acquisition was for a public purpose. The public purpose in question was also stated therein.

    9. We are also unable to accept the contention of the learned counsel for the appellant that the Government did not apply its mind before issuing the notification under Section 6. Before issuing that notification, there was an enquiry under Section 5(a). The Government had issued that notification after examining the report submitted by the concerned officer. There is no material on record from which we can reasonably come to the conclusion that the Government had acted blindly in issuing that notification.

    10. For the reasons mentioned above this appeal fails and the same is dismissed with costs.

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    Ratilal Shakarabhai And Others v. State Of Gujarat And Others
    (Mar 11, 1970)