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TMI Blog1981 (1) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... Punjab and Haryana in respect of its judgment in Letters Patent Appeal holding the acquisition of the land in question to be bad in law on the grounds that the Food Corporation of India for which the Land in question was sought to be acquired was not a 'Company' within the meaning of Section 3(e) of the Land Acquisition Act that the land had also not been acquired for a public purpose and that the State could acquire the land under that Act only for a public purpose or for the purpose of a Company. 2. The material facts of the case may be stated thus. Nine Biswas of the disputed land situated within the municipal area of Morinda in the District of Rupar was owned by respondent No. 1, Raja Ram,, respondents Nos. 2 and 3 are Raja Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de under the provisions of Section 6 of the Land Acquisition Act, 1894.... 3. Against the aforesaid notifications a writ petition was filed by respondents Nos. 1 to a The writ petition was beard by a single Judge of the High Court and was dismissed The learned, single Judge, inter alia, found that the provisions of Part VII of the L.A. Act relating to the acquisition, of land for Companies were not applicable to the present case as the Food Corporation of India (hereinafter called the Corporation) was a department of Government and not a Company within the meaning of Section 3(e) of the L. A. Act, although, undoubtedly,, according to the learned Judge, there was no manner of doubt about the fact that the land in dispute was irk fact being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n states: 3. (1) With effect from such date as the Central Government may, by notification in the Official Gazette, specify in this behalf, the Central Government shall establish for the purposes of this Act a Corporation known as the Food Corporation of India. (2) The Corporation shall be a body corporate with the name, aforesaid, having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name; sue and be sued. Sub-section (2) which, we need hardly say, is an Indian law, clothes the Corporation with the attributes of a company. It cannot, therefore, be contended with any plausibility that the Corporation is not a 'Compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be either established by statute or incorporated under a law such as the Companies Act, 1956 or the Societies Registration Act, 1860. Where a corporation is wholly controlled by Government not only in its policy making but also in carrying out the functions entrusted to it by the law establishing it or by the Charter of its incorporation, there can be no doubt that it would be an instrumentality or agency of Government. But ordinarily where a corporation is established by statute, it is autonomous in its working subject only to a provision, often times made, that it shall be bound by any directions that may be issued from time to time by Government in respect of policy matters. So also a Corporation incorporated under law is managed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is that the F.C. Act has given the Corporation an individuality apart from that of the Government. In any case the Corporation cannot be divested of its character as a 'Company' within the meaning of the definition in Clause (e) of Section 3 of the L.A. Act, for it completely fulfils the requirements of that clause, as held by us above. 6. The Corporation being a 'Company', compliance with the provisions of Chapter VII of the L.A. Act had to be made, in order to lawfully acquire any land for its purpose. It is not denied that such compliance is completely lacking in the present case. 7. As a result of the foregoing discussion it must be held that the land in dispute has not been acquired in accordance with law, although ..... X X X X Extracts X X X X X X X X Extracts X X X X
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