Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

1966 (2) TMI 84

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... clear that the Act contemplates only a single declaration under s. 6 in respect of a notification under s. 4.1 so entirely agree with his reasonings for this view that I find it unnecessary to add anything to them. But it was said that there are other considerations which indicate that our reading of these sections is unsound. In this judgment I propose to deal only with these considerations. It was said that the Government may have difficulty in making the plan of its project complete at a time, particularly where the project is large and, therefore, it is necessary that it should have power to make a number of declarations under s. 6.1 am wholly unable to accept this argument. First, I do not think that a supposed difficulty would provide any justification for accepting an inter- pretation of a statute against the ordinary meaning of the language used in it. General considerations of the kind suggested cannot authorise a departure from the plain meaning of words. Secondly,. I cannot imagine a Government, which has vast resources, not being able to make a complete plan of its project at a time. Indeed, I think when a plan is made, it is a complete plan. I should suppose that b .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e made under s. 6 because otherwise the Government may have to pay more, it seems to me that it is at an equal justification for saying that such declarations cannot have been contemplated by the Act because that would mean an avoidable deprivation of the owners of their beneficial enjoyment of lands till such time as the Government is able to make its plan. As the Act is an expropriatory Act, that interpretation of it should be accepted which puts the least burden on the expropriated owner. The Government could, of course, always make a complete plan at a time and I am unable to hold that the Act contemplated that it need not do so and go on making declarations from time to time as its plan goes on taking shape even though the result might be to increase the hardship of persons whose lands are taken away. Reference was then made to sub-ss. (1) and (4) of s. 17. These give the Government the power to, take possession of waste and arable lands included in the notification under S. 4 on the expiry of fifteen days from the publication of the notice mentioned in S. 9 and before the making of the award, without holding the enquiry contemplated by S. 5. It was said that if a notification .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ncluding the notification under s. 4 with which it started. We are concerned not with a withdrawal but with the force of a notification under s. 4 having become exhausted. That is a different case and has nothing to do with a withdrawal. Lastly, we were referred to sub-ss., (2) and (3) of s. 49. These sub-sections state that where a claim for compensation is made on the ground of severance of the land acquired from the remaining land of the owner for which provision is made under s. 23, if the Government thinks that the claim is unreasonable it may, before the making of the award, order the acquisition of the whole land and in such a case no fresh declaration under s. 6 will be necessary. It is contended that these provisions support the view that successive declarations under s. 6 were contemplated. I do not think they do so. In any case, I even if they did, then that would be because in d particular case the statute specially provided for successive declarations under s. 6. The present is not that special case. Furthermore, as I have said in connection with the argument based on s. 17, the fact that a special provision was necessary to enable successive declarations under s. 6 to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e notifications under s. 6 with respect to lands comprised in one notification under s. 4(1). The petition was opposed on behalf of the appellant, and it was contended that it was open to the appropriate government to issue as many notifications as it deemed fit under s. 6 of the Act with respect to lands comprised in one notification under s. 4(1) and that it was not correct that the notification under s. 4(1) was ,exhausted as soon as one notification under s. 6 was issued with respect to a part of the land comprised in the notification under s. 4(1), and that it was always open to the appropriate government to issue successive notifications under s. 6 so long as these notifications were with respect to land comprised within the notification under s. 4(1). The High Court has accepted the contention of the respondents and has held that a notification under s. 4 (1) can only be followed by one notification under S. 6 and that it is not open to the appropriate government to issue successive notifications with respect to parts of the land comprised in one notification under s. 4 and that as soon as one notification is issued under s. 6, whether it be with respect to part of the la .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ment together with the record of the proceedings held him and a report containing his recommendations on the objections. There after the appropriate government decides the objections and such decision is final. If the appropriate government is satisfied after considering the report that any particular land is needed for a public purpose or for a company it has to make a declaration to that effect. After such a declaration has been made under s, 6 the appropriate government directs the Collector under S. 7 to take order for the acquisition of the land. Sections 8 to 15 provide for the proceedings before the Collector. Section 16 authorises the Collector to take possession after he has made the award under s. II and thereupon the land vests absolutely in the government free from all encumbrances. Section 17 provides for special powers in cases of urgency. If a person is not satisfied with the award of the Collector, ss. 18 to 28 provide for proceedings on a reference to court. Sections 31 to 34 provide for payment of compensation. Sections 38 to 44 make special provisions for acquisition of land for companies. Section 48 gives power to government to withdraw from the acquisition of a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... be determined with reference to the date of the notification under S. 4(1) the person whose land is to be acquired may stand to lose if there is a great delay between the notification under s. 4(1) and the notification under s. 6 in case prices have risen in the meantime. This delay is likely to be greater if successive notifications under s. 6 can be issued with respect to land comprised in the notification under s. 4 with greater consequential loss to the person whose land is being acquired if prices have risen in the meantime. It is however urged that prices may fall and in that case the person whose land is being acquired will stand to gain. But as it is open to the appropriate government to issue another notification under s. 4 with respect to the same locality after one such notification is exhausted by the issue of a notification under S. 6, it may proceed to do so where it feels that prices have fallen and more land in that locality is needed and thus take advantage of the fall in prices in the matter of acquisition. So it is clear that there is likely to be prejudice to the owner of the land if the interpretation urged on behalf of the appellant is accepted while there wi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cality notified under S. 4(1) it wishes to acquire, It has to be satisfied under s. 6 after considering the report made under S. 5-A that a particular land is needed for a public purpose or for a company and it then makes a declaration to that effect under s. 6. Reading ss. 4, 5-A and 6 together it seems to us clear that the notification under S. 4(1) specifies merely the locality in which the land is to be acquired and then under S. 4(2) survey is made and it is considered whether the land or part of it is adapted to the purpose for which it is required and maps are prepared of the land proposed to be taken. Then after objections under s. 5-A have been disposed of the government has to decide what particular land out of the locality specified in the notification under S. 4(1) it will acquire. It then makes a declaration under s. 6 specifying the particular land that is needed. Sections 4, 5-A and 6 in our opinion are integrally connected. 'Section 4 specifies the locality in, which the land is acquired and provides for survey to decide what, particular land out of the locality would be needed. Section 5-A provides for hearing of objections to the acquisition and after these ob .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rised but only the locality is mentioned; at the stage of s. 6 the land in the locality is particularised and thereafter it seems to us that the notification under s. 4(1) having served its purpose exhausts itself. The sequence of events from a notification of the intention to acquire (s. 4(1) to the declaration under s. 6 unmistakably leads one to the reasonable conclusion that when once a declaration under S. 6 particularising the area out of the area in the locality specified in the notification under s. 4(1) is issued, the remaining non- particularised area stands automatically released. In effect the scheme of these three sections is that there should be first a notification under S. 4(1) followed by one notification under S. 6 after the government has made up its mind which land out of the locality it requires. It is urged however that where the land is required for a small project and the area is not large the government may be able to make up its mind once for all what land it needs, but where as in the present case land is required for a large project requiring a large area of land government may not be able to make up its mind all at once. Even if it be so there is nothin .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... h possession can only be taken of waste or arable land and on such possession being taken such land vests absolutely in the government free from all encumbrances. To carry out the purposes of S. 17(1), S. 17(4) provides that the appropriate government may direct that the provisions of S. 5-A shall not apply in cases of urgency and if it so directs, a declaration under S. 6 may be made in respect of the land at any time after the publication of the notification under s. 4(1). It is urged that this shows that where the land notified under S. 4(1) includes land of the kind mentioned in S. 17 (1) and also land which is not of that kind it would be open to government to make a declaration under S. 6 with respect to the land mentioned in S. 17(1) immediately after the notification under s. 4(1) while notification with respect to the land which is not of the kind mentioned in s. 17(1) can follow later after the enquiry under s. 5-A is over and objections have been disposed of. So it is urged that more than one declaration is contemplated under s. 6 after one notification under s. 4(1). There are two answers to this argument. In the first place where the land to be acquired is of the kind .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... direction relevant to S. 17(4). It is true that the declaration under S. 6 dated August 12, 1960 contains a direction under s. 17(4), but the effect of that merely is to allow the government to take possession of the land within 15 days after the issue of notice under S. 9(1). This is on the assumption that a direction under s. 17(4) can be issued along with the notification under S. 6 as to which we express no opinion. We are therefore of opinion that the provisions in S. 17(4) do not lead to the conclusion that section 6 contemplates successive notifications following one notification under s. 4(1). As we interpret ss. 4, 5-A and 6 that is not the intention in a normal case. Even in a case of urgency there can at the most be only two notifications under s. 6 following one notification under s. 4(1), one relating to land which is covered by s. 17(1) and the other relating to land which is not covered by S. 17(1), provided both kinds of land are notified by one notification under s. 4(1). As we have said even that is not necessary for we are of opinion that in such a case the government can issue two notifications under s. 4(1), one relating to land to which S. 17(1) applies and th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Section 48(1) thus gives power to government to withdraw from the acquisition without canceling the notifications under ss. 4 and 6 after notice under s. 9(1) has been issued and before possession is taken. This power can be exercised even after the Collector has made the award under S. 11 but before he takes possession under s. 15 Section 48(2) provides for compensation in such a case. The argument that S. 48(1) is the only method in which the government can withdraw from the acquisition has therefore no force because the government can always cancel the notifications under ss. 4 and 6 by virtue of its power under S. 21 of the General Clauses Act and this power can be exercised before the government directs the Collector to take action under S. 7. Section 48(1) is a special provision for those cases where proceedings for acquisition have' gone beyond the stage of the issue of notice under S. 9(1) and it provides for payment of compensation under. s. 48(2) read with S. 48(3). We cannot therefore accept the argument that without an order under S.48(1) the notification under S. 4 must remain outstanding. It can be cancelled at any time by government under s. 21 of the General Cla .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nd that shows that successive notifications can be issued under s. 6 following one notification under s. 4(1). Section 16 provides for taking possession and vesting after the award hap, been made. Section 17 provides for taking possession and consequent vesting before the award is made in case of urgency. We fail to see how these provisions as to vesting can make any difference to the interpretation of ss. 4, 5-A and 6. Section 16 deals with a normal case where possession is taken after the award is made while s. 17(1) deals with a special case where possession is taken fifteen days after the notice tinder s. 9(1). Vesting always follows taking of possession and there can be vest in either under s. 16 or under s. 17(1) depending upon whether the case is a normal one or an urgent one. What we have said with respect to s. 17(1) .and S. 17(4) would apply in this matter of vesting also and if the matter is of urgency the government can always issue two notifications under s. 4, one relating to land urgently required and covered by S. 17(1) and the other relating to land not covered by S. 17(1). The argument based on these provisions in s. 16 and s. 17 can have no effect on the interpre .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates