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Issues: (i) whether the delay between the notification under section 4 and the declaration under section 6 of the Land Acquisition Act, 1894 negatived the State Government's satisfaction under sections 17(1) and 17(4) and made the dispensing with section 5-A inquiry illegal; and (ii) whether the presence of some structures on parts of the acquired land prevented recourse to the urgency provisions for the entire acquisition.
Issue (i): whether the delay between the notification under section 4 and the declaration under section 6 of the Land Acquisition Act, 1894 negatived the State Government's satisfaction under sections 17(1) and 17(4) and made the dispensing with section 5-A inquiry illegal.
Analysis: The record showed that the acquisition was for a large housing scheme for a rapidly growing urban area, supported by the Collector's and Development Authority's materials as to urgency. There was no allegation of mala fides and the delay in issuing the declaration was traced to official processing and correction of errors after the notification. The mere fact that the declaration under section 6 followed about a year later did not, by itself, displace the earlier urgent necessity or render the initial decision to invoke the urgency power improper. The need for residential accommodation in urban areas was treated as a matter of pressing public importance, and the earlier authority on urban development acquisitions was held not to control the present facts.
Conclusion: The invocation of sections 17(1) and 17(4) was valid, and the dispensing with the section 5-A inquiry was not vitiated by the post-notification delay.
Issue (ii): whether the presence of some structures on portions of the acquired land prevented recourse to the urgency provisions for the entire acquisition.
Analysis: The acquisition covered a large tract on the outskirts of the city and was directed to planned development. The land had to be viewed in its general character, and isolated superstructures on small portions did not defeat the acquisition. In any event, section 17(1-A) specifically enabled possession to be taken of land other than waste or arable land when acquired for planned development, and the omission to mention that sub-section expressly in the notification was not fatal where the power otherwise existed. The Court also noted, as a matter of equitable principle, that development authorities should, where practicable, afford reasonable accommodation opportunities to persons displaced from such lands.
Conclusion: The existence of some buildings on parts of the land did not invalidate the acquisition or the urgency action.
Final Conclusion: The State's challenge succeeded, the High Court's quashing order could not stand, and the acquisition proceedings were sustained.
Ratio Decidendi: In a planned urban development acquisition, the State's satisfaction under the urgency provisions is not displaced merely by administrative delay in issuing the section 6 declaration or by the presence of a few structures on portions of a substantially agricultural tract, especially where no mala fides are shown and the statutory power extends to such land for planned development.