Statutory corporation as a company under land acquisition law; acquisition for its purposes must satisfy Chapter VII requirements.

A statutory corporation created by an Indian law, with perpetual succession, a common seal, ownership powers, and capacity to contract and litigate, falls within the definition of "company" under the Land Acquisition Act, 1894. Government control and financing do not by themselves convert such a body into a Government department, though it may remain an agency or instrumentality of Government. Land acquired for its purposes therefore had to comply with Chapter VII requirements applicable to acquisition for a company. Because that statutory compliance was absent, the acquisition was not in accordance with law and the quashing was sustained.

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Issues: Whether the Food Corporation of India was a "company" within the meaning of Section 3(e) of the Land Acquisition Act, 1894 and, if so, whether acquisition of land for its purposes required compliance with Chapter VII of that Act.

Analysis: The expression "company" in Section 3(e) of the Land Acquisition Act, 1894 includes a company incorporated by an Indian law. The Food Corporation of India was created under Section 3 of the Food Corporation Act, 1964 and was a body corporate with perpetual succession, a common seal, power to acquire, hold and dispose of property, and capacity to contract, sue and be sued. Those attributes brought it within the statutory definition of "company". The fact that it was substantially controlled and financed by Government did not convert it into a Government department, though it may be an agency or instrumentality of Government.

Conclusion: The Food Corporation of India was a "company" for the purposes of the Land Acquisition Act, 1894, and acquisition of land for its purposes had to comply with Chapter VII. As such compliance was absent, the acquisition was not in accordance with law.

Final Conclusion: The appeal failed and the quashing of the acquisition was sustained on the ground of non-compliance with the statutory regime applicable to acquisition for a company.

Ratio Decidendi: A statutory corporation with corporate personality and the powers of ownership, contract, and litigation, created by an Indian law, falls within the definition of "company" under the Land Acquisition Act, 1894, and land acquired for its purposes must satisfy the requirements applicable to acquisition for a company.

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