1962 (5) TMI 29 - SC - Indian Laws

Court Upholds Land Acquisition for Public Purpose, Token Contribution Compliant with Law

SMT. SOMAVANTI AND OTHERS Versus. THE STATE OF PUNJAB AND OTHERS

The court upheld the land acquisition as being for a public purpose, finding no colorable exercise of power, and valid simultaneous notifications under ... - Issues Involved:1. Whether the acquisition is for a public purpose under Sections 4 and 6 of the Land Acquisition Act.2. Whether the contribution of Rs. 100 by the Government is a colorable exercise of power.3. Whether the acquisition is for a company, necessitating compliance with Part VII of the Act.4. Whether the Government's action violates the petitioners' right to equal protection under Article 14 of the Constitution.5. Whether simultaneous notifications under Sections 4 and 6 are valid.Issue-wise Detailed Analysis:1. Public Purpose under Sections 4 and 6:The petitioners argued that the land acquisition proceedings violated their fundamental rights under Article 19(1)(f) and (g) of the Constitution, and that the acquisition was not for a public purpose but for the benefit of a private company (Respondent No. 6). The respondents contended that the acquisition was for a public purpose, as it aimed to establish a factory for manufacturing refrigeration compressors, which would cater to public needs, save foreign exchange, and provide employment. The court held that the declaration by the Government under Section 6(1) that the land is needed for a public purpose is conclusive evidence, and the courts cannot go behind this declaration unless it is shown to be a colorable exercise of power. The court found no evidence of colorable exercise of power and upheld the acquisition as being for a public purpose.2. Contribution of Rs. 100 by the Government:The petitioners argued that the Government's contribution of Rs. 100 towards the acquisition cost was a token amount and did not satisfy the requirement of being partly at public expense. The court held that the law does not specify the extent of the contribution required from public funds, and a token contribution is sufficient compliance with the law. The court emphasized that the contribution must be substantial in some cases, but in this instance, the Rs. 100 contribution was deemed sufficient.3. Acquisition for a Company and Compliance with Part VII:The petitioners contended that the acquisition was for a company and not for a public purpose, and therefore, the provisions of Part VII of the Act should have been complied with. The respondents argued that the acquisition was for a public purpose and not for a company. The court held that the acquisition was for a public purpose and not for a company, and therefore, the provisions of Part VII did not apply.4. Violation of Equal Protection under Article 14:The petitioners claimed that their proposed paper mill would be as beneficial as the respondent's refrigeration factory and that the Government's preference for the latter violated their right to equal protection under Article 14. The court held that the State has the discretion to prioritize certain public utilities based on the needs of the State. The court found no evidence of discrimination and upheld the Government's decision.5. Validity of Simultaneous Notifications under Sections 4 and 6:The petitioners argued that the notifications under Sections 4 and 6 were published simultaneously, which was not in compliance with the law. The court held that in cases of urgency, where the Government directs that the provisions of Section 5A need not be complied with, simultaneous notifications are permissible. The court found that the notifications were valid and in compliance with the law.Separate Judgment by Subba Rao, J.:Subba Rao, J. dissented, holding that the Government's contribution of Rs. 100 was not a substantial part of the compensation and did not satisfy the requirement of the proviso to Section 6. He argued that the contribution must have a rational relation to the estimated compensation and that a nominal contribution does not meet this requirement. He quashed the notification and prohibited the respondents from proceeding with the acquisition.Conclusion:The majority opinion dismissed the writ petitions, upholding the validity of the land acquisition for a public purpose, and found no violation of the petitioners' fundamental rights. The dissenting opinion by Subba Rao, J. emphasized the need for a substantial contribution from public funds to satisfy the requirements of the law.