TMI Blog1970 (8) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... alls within Entry 43 of List I of the Seventh Schedule of the Constitution. On behalf of the State-it is said on the other hand that the Act is for the growth and development of industries in the State of Maharashtra and for acquisition of land in that behalf and the Corporation is established for carrying out the purposes of the Act, and, therefore, the legislation is valid. The true character, scope and intent of the Act is to be ascertained with reference to the purposes and the provisions of the Act. The Act is one to make a special provision for securing the orderly establishment in industrial areas and industrial estates of industries in the State of Maharashtra, and to assist generally in the Organisation thereof, and for that purpose to establish an Industrial Development Corporation, and for purposes connected with the matters aforesaid. The Corporation is established for the purpose of securing and assisting the rapid and orderly establishment and organisation of industries in industrial areas and industrial estates in the State of Maharashtra. The Corporation consists of 8 members, two of whom are nominated by the. State Government of whom one shall be the Financia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der to appreciate the general powers of the Corporation to discharge the functions of the Corporation in regard to the establishment, growth and development of industries, in the State. These powers are to acquire and hold property, movable and, immoveable for the performance of any of its activities, and to lease, sell, change or otherwise transfer any property held by the Corporation on such conditions as may be deemed proper by the Corporation and also to purchase by agreement or to take on lease or under any form of tenancy any land, to erect such buildings and to execute such other works as may be necessary for the purpose of carrying out its duties and functions, to provide or cause to be provided amenities and common facilities in industrial estates and industrial areas and construct and maintain or cause to be maintained works and buildings therefore, to make available buildings on hire or sale to industrialists or persons intending to start industrial undertakings, to construct buildings for the housing of the employees of such industries, to allot factory sheds or such buildings or parts of buildings, including residential tenements to suitable persons in the industrial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Act by empowering the Corporation to provide these essential amenities, facilities and conveniences. The principal functions of the Corporation in regard to the establishment, growth and development of industries in the are first to establish and manage industrial, estates at selected places and secondly to develop industrial areas selected by the State Government. When industrial areas are selected the necessity of acquisition of land in those areas is apparent. The 'Act, therefore, contemplates that the, ate Government may acquire land by publishing a notice specifying the particular purpose for which such land is required. Before: the publication of the notice the owner of the land is given an -opportunity, to show cause as to why the land should not be acquired. The State after considering the cause shown by the owner the State Government may pass such orders as it deems fit. When a notice is published for acquisition of land, the land, shall, on and from the date of such publication, vest absolutely in the State, Government free from all encumbrances. Where the land has been acquired for the Corporation or any local authority, the State Government shall, after it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the disposal of the State Government upon such terms and conditions as may be mutually agreed upon. There are two-other important provisions in the Act. In the first place, the State Government may issue to the Corporation such general or special directions as to policy as it may think necessary or expedient for the purpose of carrying out the purposes of the Act, and the Corporation shall be bound to follow and act upon such directions. These directions will be in the field of' establishment and management of industrial estates and development of industrial areas and carrying out the other powers of the Corporation in regard to the provision of amenities and common facilities, and assisting industrialists or industrial undertakings in. obtaining buildings or factory sheds or residential tenements or land for development of industries. The second important provision is that when the State Government is satisfied that the purposes for which the Corporation is established under the Act have been substantially achieved so as to render the continued existence of the Corporation in the opinion of the State Government unnecessary that Government may by notification in the Official G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 'De pith and substance of the Act is establishment, growth and Organisation of industries, acquisition of land in that behalf and carrying out the purposes of the Act by setting up the Corporation as one of the limbs or agencies of the Government. The powers and functions of the Corporation show in' no ,uncertain terms that these- are all in aid of the -principal and-predominant purpose of establishment, growth and establishment of ,industries. The Corporation is established for that purpose. When the Government is satisfied that the Corporation has substantially achieved the purpose for which the Corporation is established, the Corporation will be dissolved because the raison detre is gone. We, therefore, hold that the Act is a valid piece of legislation. The petitioners contended that -the Corporation was a trading one. The reasons given were that the Corporation could sell property, namely, transfer land; that the Corporation had borrowing powers-, and that the Corporation was entitled to moneys by way of rents and profits. Reliance was placed on the report of the Corporation and in particular on the income and expenditure of the Corporation to show that it was m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for reserve and other specially denominated funds as the State Government may direct. The Corporation accepts deposits from persons, authorities or institutions to whom allotment or sale of land, buildings, or sheds is made or is likely to be made in furtherance of the object of the Act. A budget is prepared showing the estimated receipts and expenditure. The accounts of the Corporation are audited by -an auditor appointed by the State Government. These provisions in regard to the finance of the Corporation indicate the real role of the Corporation, viz., the agency of the Government in carrying out the purpose and object of the Act which is the development of industries. If in the ultimate analysis there is excess of income over expenditure that will not establish the trading character of the Corporation. There are various departments of the Government which may have excess of income over expenditure. The Corporation is not a Government company within the meaning of section 617 of the Companies Act, 1956 nor can the 'Companies Act, 1956 be said to apply to the Corporation because under the provisions contained in section 616 of the Companies Act that Act will apply to a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... designed by the Land Acquisition Act for acquisition of land for the companies whereas in the' present case the State was acquiring land for companies without adopting the procedure of, the Land Acquisition Act. It is to be remembered that the Act in the present case is a special one having the specific and special purpose of growth, development and Organisation of industries in the State of Maharashtra. The Act has its own procedure and there is no provision in the Act for acquisition of land for a company as in the case of Land Acquisition Act. In the present case, acquisition under the Act is for the purpose of development of industrial estates or industrial areas by the Corporation or any other purpose in furtherance of the objects of the Act. The policy underlying, the Act is not acquisition of land for any company but for the one and only purpose of development, Organisation and growth of industrial estates and industrial areas. The Act is designed to have a planned industrial city as opposed to haphazard growth of industrial areas in all parts of the State. The Act is intended to prevent, growth of industries in the developed parts of the State. Industries are therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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