Land acquisition notifications are not incumbrances under nationalisation law and do not lapse on vesting of the undertaking.

Notifications issued under Sections 4 and 6 of the Land Acquisition Act were not incumbrances within Section 4(2) of the Sick Textile Undertakings (Nationalisation) Act, 1974. The provision ids vested property from burdens such as trust, mortgage, charge, lien and other incumbrances, and separately refers to attachments, injunctions, decrees and court orders restricting use. Acquisition notifications are an exercise of sovereign power to acquire land for public purpose and do not create a burden running with the property. They therefore did not become ineffective on vesting of the undertaking in the Central Government.

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Issues: Whether notifications issued under Sections 4 and 6 of the Land Acquisition Act were incumbrances within the meaning of Section 4(2) of the Sick Textile Undertakings (Nationalisation) Act, 1974 so as to become ineffective upon vesting of the undertaking in the Central Government.

Analysis: Section 4(2) frees the vested property from trust, obligation, mortgage, charge, lien and other incumbrances affecting it, and separately refers to attachments, injunctions, decrees and court orders restricting use of the property. The expression "incumbrance" denotes a burden or liability attached to property. Notifications for acquisition under the Land Acquisition Act are an exercise of the State's sovereign power to acquire land for public purpose and do not constitute a burden running with the land. The separate mention of attachments, injunctions, decrees and orders shows that the legislature did not intend every restraint on use to fall within "incumbrances".

Conclusion: The acquisition notifications were not incumbrances under Section 4(2) and did not become inoperative on vesting.

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