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Issues involved: Validity of land acquisition proceedings under the Hyderabad Land Acquisition Act for the purpose of running a country fair or market, existence of 'public purpose' to support the acquisition, allegation of mala fide exercise of power by the Municipality.
In this case, the Supreme Court examined the validity of land acquisition proceedings conducted by a Municipality under the Hyderabad Land Acquisition Act for the purpose of establishing a country fair or market. The appellant raised concerns regarding the dismissal of the Writ Petition by the High Court and challenged the existence of a 'public purpose' to support the acquisition. The Court disagreed with the appellant's contention, stating that providing a village market is a legitimate public purpose and falls within the powers of a municipality. The appellant also alleged mala fide exercise of power by the Municipality, but the Court emphasized that striking down an act for mala fide exercise of power is a rare judicial intervention. The Court examined the circumstances surrounding the acquisition and concluded that there was no evidence of malus animus on the part of the Government, the acquiring authority. The appellant further argued that the Municipality had sold excess land for a housing colony, which was not the original stated purpose of the acquisition. However, the Court held that once the title had vested in the Municipality through valid acquisition, the subsequent use of excess land does not invalidate the original acquisition. The Court emphasized that there is no legal principle by which a valid compulsory acquisition is voided due to later diversion of the land to a different public purpose. Ultimately, the appeal was dismissed by the Court, ruling that there was no merit in the appellant's arguments.
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